Dairy direct gippsland june (lowres) by McPherson Media Group

PUBLICATION

GIPPSLAND Issue 16, June 2017

Dairying with Aussie Reds » page 12

Back to basics at Strzelecki » page 24

Top heifer touches down in Canada » page 20

Water management in the south » page 22

Jon Reynolds Account Manager Gippsland: 0423 008 495 jonathan.reynolds@provico.com.au www.provico.com.au

Coming out the other side What lessons have we learned from a tough year? As I write this, it is just over 12 months since the milk price announcements that rocked the dairy industry. It’s been a big year and one all of us hope is never repeated. The question I’ve been asking myself is: what lessons have we learned from this time? The answer is: plenty. The lessons were learned the hard way, but at least it’s something we can take out of a very tough time for the industry. I think the most important lesson is that, as farmers, we are not it in by ourselves. From the moment the revised prices were announced, programs were rolled out across Gippsland to help dairy farmers through subsequent days, then weeks, then months. GippsDairy and Dairy Australia organised the Tactics for Tight Times program, bringing farmers together to talk about short and medium term strategies for finances, feed budgeting and personal wellbeing. While this was happening, industry advocacy groups like UDV and Australian Dairy Farmers were working to bring government assistance to farmers and greater oversight to the industry. To their credit, all levels of government offered significant assistance to the industry to help farmers stay on their feet while the milk price recovered. The recent announcement that the Australian Competition and Consumer Commission is taking Murray Goulburn to court is a sign that some of the most powerful organisations in the country are taking a genuine interest

in the way the dairy industry operates. The work of UDV and ADF showed dairy farmers how important it is to have a strong voice representing their interests. GippsDairy and Dairy Australia are not lobby groups — both organisations are prohibited from acting as lobbyists — so having UDV and ADF speaking on behalf of dairy farmers is vital. But these organisations are only as strong as their membership and need signed-up dairy farmers behind them if their voices are to be heard. The past year has also made dairy farmers look closely at their business fundamentals to find out where their strengths and weaknesses are. It’s no surprise that many of us are increasingly looking at home-grown pasture as the most effective way to push costs down. Knowing the break-even milk price and having a grasp of the key profit drivers of farm business management is where many of us have been forced to make significant improvements. Ultimately, the last year has been about learning to control the things we can control. Milk price, world markets and the weather are all unknowns until they happen. But how we operate our farms and how we support each other are areas we definitely can control — and I reckon we’ve done a great job of it throughout a trying year. — Grant Williams GippsDairy chair

GIPPSLAND

contents

Coming out the other side................3 Reminders for June/July.....................4 Milking waits for no man..................5 Fonterra forecasts milk price............6 Lily’s dairy career is blossoming.......8 Dealing with freemartin heifers.......9 Working with the weather gods.....11 Sticking to their principles..............12 Inquiry hears industry concerns....14 Tour inspires young farmer.............15 Good and bad news for dairy..........17 UDV welcomes action......................17 No avoiding NLIS rules....................18

Star heifer arrives in Canada..........20 Fund helps dairy farmers................21 Making less go further.....................22 They did it their way........................24 Southern skies .................................27 Contact us today!

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JUNE 2017

PUBLICATION

GIPPSLAND Issue 16, June 2017

Dairying with Aussie Reds » page 12

Back to basics at Strzelecki » page 24

Top heifer touches down in Canada » page 20

Water management in the south » page 22

Cover: Multi-generational farmers Don and Dawne Wylie are using Aussie Reds as a backbone to their dairy operation. Story, page 12

Editor Geoff Adams editor@countrynews.com.au Writers Geoff Ellis, Rodney Woods and Geoff Adams Graphic designers Adele Dhillon, Stacey Taylor, Jacqui Maskell Advertising Aaron Brown aaron.brown@countrynews.com.au Published by Country News PO Box 204, Shepparton, Victoria 3632 (03) 5831 2312 www.countrynews.com.au Printed by Edge Print

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If you are dairy farming and want to make sure you get your own copy phone GippsDairy on 5624 3900. Please call as well, if you are getting more than you need. 4

JUNE 2017

Reminders for June

Pastures and feeding • Use nitrogen and pasture management to make sure you have enough pasture in front of your cows to feed them well through July and August or create a wedge of pasture for calving cows. • If soils have a history of low levels of available sulphur it may be worth including some sulphur with nitrogen applications in cold soil conditions. • Gibberellic acid may be a useful addition to increase pasture growth rates if needed and conditions are suitable (cold air and soil temperatures). • If not already done, now that most broadleaf weeds like capeweed and erodium have struck, control them with appropriate herbicides before they grow too large. • If you farm on wet soils expect some wastage of pasture through pugging and take this into account when you allocate pasture to cows.

to cows. These inputs come at a cost and when combined with low pasture utilisation, typically in wet conditions, the cost can be quite high. • If you have not sprayed your broadleaf weeds do so at the first opportunity to have denser, better producing pasture for the rest of the year. • If you are highly stocked you will need a bigger wedge of pasture for calving cows. More cover will give you more management options in wet conditions, but this is a balancing act as a wet farm and too much pasture in early spring may result in lower quality pastures with limited silage cutting options if it is too wet. • Prevent nitrate poisoning when grazing rye-grass pastures containing capeweed or marshmallow by avoiding grazing within 21 days of nitrogen application and by including other low-risk feeds in the diet before grazing these pastures.

Cow health • Drying cows off is an important part of animal health and needs to be planned and competed well to ensure a successful lactation in the following season. For more information go to the Dairy Australia website at www.dairyaustralia.com.au and look under ‘mastitis’. • Plan your transition diet for calving cows. The aims are to ensure the cows’ energy and protein requirements are met, and introduce grain to the diet if it is required. • A properly-formulated lead feed ration or the use of anionic salts in the water troughs should be considered to assist in prevention of milk fever. Even a low level of milk fever in the herd has many flow-on effects including calf losses during calving, retained foetal membrane and calving paralysis. • Keep in mind your calving paddocks would be best if they are sheltered and on a welldrained soil type. Change the paddock when it becomes muddy or dirty with manure to avoid mastitis. • Removing cows with chronic mastitis infections reduces the bacterial challenge to other unaffected cows and helps to protect the herd. Refer to your local vet for specific advice or go to the Dairy Australia website at www.dairyaustralia.com.au and look under ‘animal management’. • Monitor the dairy herd for lameness and treat promptly; the use of foot mats in the entrance to the platform may be useful. For more information, go to the Dairy Australia website at www.dairyaustralia.com.au and look under ‘animal welfare, cows and reducing lameness’.

Calves and heifers • Having a good system for calf rearing is very important: • Prevent disease by ensuring that all calves receive good quality colostrum. • Disinfect calf pens on a regular basis, including rails and bedding. • Ensure calves have a good supply of good quality water, fibre and pellets. • Develop an easy to follow and affordable program that works for heifer rearing including dehorning, vaccinations, drenching and feeding for well-developed, healthy heifers that will stay in the herd for a long time.

Reminders for July

Cows • Freshly calved heifers and young cows are susceptible to acidosis. To successfully manage this make sure the diet is well balanced and that you have the grain well buffered and have offered enough effective fibre in the diet. • Freshly calved cows are susceptible to milk fever which may show up sub-clinically as retained foetal membrane or paralysis at calving. To manage this: • Plan your transition feeding to minimise the risk of metabolic disorders in fresh or calving cows. For more information go to www.dairyaustralia.com.au • Have a plan for action when cows present with difficult calvings or metabolic disorder. • Make sure your calving area is clean enough for cows to calve without excessive contamination of teats to better avoid mastitis. • Make time to watch your cows walking on laneways to check for sore feet. If poor track surfaces are causing lameness and foot problems, consider adding sawdust, woodchips or even hay (for example, at the lead in/lead out from the dairy shed).

Pastures and grazing • Aim to grow as much pasture as possible while keeping costs under control. The use of nitrogen and gibberellic acid increase growth rates and, when combined with good grazing management, can increase available pasture

Dairy shed and machinery • When the cows are dry or you have a reduced number of milkers, take the opportunity to carry out your annual shed maintenance tasks, for example, check milking machine function and replace rubber ware.

Rural Rumenations with KATIE MACAULAY

Columnist Katie MacAulay lives in South Gippsland, and has been married to a dairy farmer long enough to appreciate the smell of good silage. She loves chooks, enjoys stacking hay bales with the tractor and wonders why the lawn grows twice as quickly as the grass in the paddocks.

Time and milking waits for no man I was tired. We’d spent most of the day shifting cattle and I was ready for bed. After checking the leftovers had been put in the fridge, I quickly completed the school excursion permission slip, replaced Tinkerbell’s kicked-off blankets then gratefully crawled into my cosy bed. Soon I was fast asleep. WAARK! WAARK! WAARK! Milking time. In the years BC (Before Children), I used to lurch awake in fright, heart pounding, at the raucous sound in what felt like the middle of the night, especially in the dark winter months. I’d lie awake for ages, contemplating the unsociable hours that dairy farmers kept and struggling to get back to sleep after being so rudely awoken. However, times change. Now I just nudge Hubby until he wakes up and gets out of bed, then I promptly fall back asleep. Some days I don’t even open my eyes. This morning, that was where the problem lay. Hubby had dragged himself out of bed

after hitting snooze twice and staggered out the back door, half asleep. WAARK! WAARK! WAARK! Nine minutes later, I rolled over to nudge Hubby again but his side of the bed was cold. Groaning, I sat up. The alarm’s off button was invisible in the dark. I lugged myself over to his side of the bed and ran my hands over the clock. I still couldn’t find the off switch. My hand brushed over the electrical cord, giving me an idea. I unplugged the obnoxious thing. It made no difference. I had forgotten it had a battery back-up. The clock’s ability to wake Hubby even when the power was off was useful in regards to milking but at this time of morning, I no longer felt impressed by its dependability. Annoyed, I hit the snooze button and went back to sleep. WAARK! WAARK! WAARK! Several snooze cycles later, I gave up trying to sleep through it. (Unlike our

children who never seem to notice Hubby’s alarm — they have their father’s genetics.) However, I knew from experience that as soon as I turned on any lights, Tinkerbell would wake up. I had no intention of replacing the alarm clock’s racket with the wails of a toddler who had been woken too soon. I fumbled around in the darkness until I found the volume knob. A swift twist and peace was restored. I snuggled back down. There was still time for a decent nap before I needed to get up. By the time I got up in the natural light, I went about my day, completely forgetting about the volume switch. Unfortunately, like so many short-term fixes in farming, my actions were to have a longer-term, negative impact. The next morning, we peacefully slumbered away until Hubby woke with a shout, leapt out of bed and took off for the dairy. Forty-five minutes late.

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Fonterra forecasts new-season milk price Fonterra Australia has announced its forecast full-year farm gate milk price range for the 2017–18 season as the company tries to rebuild its relationship with its suppliers. Twelve months on from the announcement that both Fonterra and Murray Goulburn would significantly reduce the milk price, Fonterra Australia has better news for farmers, announcing a forecast full-year range price of $5.30 to $5.70/kg of milk solids. “Providing Fonterra’s forecast full-year price range now is aimed at giving our farmers guidance so that they can plan for next season with confidence, “ Fonterra Australia managing director René Dedoncker said. “We’ve invested in world-class assets, improved our product mix, and exited nonstrategic businesses. “This coupled with the rebalancing of

global supply gives us the ability to pay a competitive milk price to our farmers.” Fonterra has also announced it will pay its Australian suppliers an additional 40¢/kg MS next season, bringing its forecast fullyear milk price range to $5.70 to $6.10/kg MS. Girgarre dairy farmer and Fonterra supplier Spencer Rendell expected the price to increase as the season went on. “I think this is a start-off price and I think there’s good things to come, “ Mr Rendell said. “At least the price is going in a positive direction. “I thought we would get a price around $6.10 without the 40¢ extra. If we take the exchange rate we should be getting $5.80 now.”

In addition to the 40¢ increase, Fonterra has also said it will reimburse the interest charge for the Fonterra Australia Support Loans package that was included in this season’s milk price to all current suppliers. “We said that we would consider Murray Goulburn’s recent announcements including the decision to forgive its Milk Supply Support Package, “ Mr Dedoncker said. “We’ve consulted with the Bonlac Supply Company on the best way to respond to our suppliers. “We believe this payment is the right thing to do and we’re committed to ensuring our farmers are better off by partnering with us.” The additional payment of 40¢/kg MS will be available to all current, retired and recommencing suppliers. Fonterra’s opening price for season 2017–18 will be announced closer to the beginning of the season.

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Trial crops provided plenty of food for thought.

The Don Campbell Memorial Study Tour participants at a farm in northern Tasmania.

Cath Mackin was particularly interested in a 16-hour milking operations.

Teaching young farmers new tricks some guys over there doing that successfully Good farmers went on this year’s Don Campbell Memorial Study Tour, and making a real good job of it.” “Even down to little day-to-day things that the but better farmers returned. The annual Young Dairy Network event saw ten farmers from Gippsland and two from South Australia visiting some of Tasmania’s most innovative farm businesses. Over five days, the group visited farms that challenged their existing ideas of herd and pasture management as well as business practices. They ranged from family run to company sized businesses, with irrigation a feature of all. The approach to milking was also of great interest, with one farm practicing 16-hour milkings, while another was using seven robots as a labour saving strategy. All the farms focused on profitable operation but not at the expense of a decent lifestyle. Meeniyan sharefarmer Rhys Livingstone said the Don Campbell Tour gave him the opportunity to look at similar farming systems to his own as well as farms that would challenge his existing thinking. “I wanted to look at some farms outside of my area to get an insight into some different systems and get an insight into how some farmers over in Tassie were doing things,” Rhys said. “I knew a lot of farms over there run a similar system to what I do here, which is a low input seasonal carving system with crossbred cows. It was really good to see

guys over there were doing to help make life easier as far as manual jobs go, how they have structured their business and how they make decisions.” Rhys said the tour had something for everyone, from new entrants to the industry to experienced farmers like himself. “I think it’s a great opportunity for people in the industry to get over and see some successful farm businesses,” he said. “The farmers we saw were really generous with their time. You could ask them anything and they were quite open and gave you a lot of good feedback. For Cath Mackin, the Don Campbell Tour was all about expanding her horizons. An assistant manager on Wendy Whelan’s Toora farm, the 29-year-old enjoyed asking questions of farmers and looking at nontraditional operational models. “In Tasmania, a lot of the farms were doing 16-hour milking and it was working really well for them, which I found really interesting,” she said. “One girl who came on the tour implemented it at her farm a week after she came back, so they are giving it a shot, and I will keep in touch with her and ﬁnd out how it goes.” Like Rhys, Cath encouraged anyone considering the tour to apply next year. “Go for it. It was amazing. You get a lot of

insight, encouragement and good ideas,” she said. GippsDairy regional manager Allan Cameron said this year’s tour had been an unqualiﬁed success, with the ten Gippsland and two South Australian participants all returning with ideas on how to improve their own farm businesses or careers. “Don Campbell was committed to developing the dairy industry, so we’d like to think he’d be proud of what this year’s tour achieved,” he said. “GippsDairy believes exposing young farmers to innovative and successful businesses is an eﬀective way to maintain and grow a sustainable and vibrant industry in Gippsland.” Applications for next year’s Don Campbell Memorial Study Tour will open later in the year.

Rhys Livingstone got plenty from the Don Campbell Memorial Study Tour.

Lily’s dairy career

is blossoming

Sixteen-year-old loves working on a dairy farm and says more young people should ‘go for it’. Lily McGregor is an inspiration for any young person considering a career in the dairy industry. The Poowong North 16-year-old is completing a school-based VCAL apprenticeship that allows her to work one day a week on a dairy farm, as well as clocking up extra hours on the weekend. “I just love it, I love spending time with the cows. I find they become like friends — they’re better than some people,” Lily said. Her work on Luke Wallace’s Poowong North farm follows a stint as an intern at GippsDairy, where Lily gained an insight into the bigger picture of the industry. “It was really interesting to see how other people were running their farms and how GippsDairy helps farmers in certain areas,” she said. “It was good to get out and see farms and learn what happens in discussion groups.”

When she’s not on the farm or at school, Lily McGregor is forging a career Lily is planning her next trip overseas. She’s in the dairy industry through a school‑based VCAL apprenticeship. already been to Peru and is now considering opportunities to work in the dairy industries studies while getting hands-on experience, of Italy and the United States. both at GippsDairy and on a dairy farm, is But for now, she’s more than happy spending ideal,” Ms Maslen said. her days in the rolling hills of Poowong North among the Jersey cows that have won “We need passionate and hard-working people like Lily, but we also need farmers her over after a lifetime among Holsteins. like Luke Wallace who are willing to take “Originally I was a Holstein girl, but since a chance on young people and give them a I moved here they (Jerseys) have stolen my start in the industry.” heart a bit,” she said. “I like the size, they are so much easier to handle Lily’s advice to young people wanting to get involved in the dairy industry is simple. because I’m so short. It’s easier when it comes to showing and halter breaking is much easier.” “Go for it — you should jump right into it. “It’s rewarding and it definitely makes me GippsDairy workforce co-ordinator Leah very happy when I see my hard work paying Maslen said Lily was a great example of how off. I just love it.” the dairy industry could provide a rewarding career option for young people. Anyone interested in careers in the dairy industry can email Leah Maslen at “Lily is someone who clearly loves the dairy industry, so for her to be able to continue her leah@gippsdairy.com.au or phone 5624 3900.

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Dealing with freemartin heifers Twin bull and heifer combinations bring future problems. When a bull calf and a heifer calf are born as twins, there is a higher than 90 per cent chance of the heifer being infertile. These heifers are known as a ‘freemartins’. This happens when the twins’ blood supplies fuse together during early pregnancy and are shared by the calves, allowing for an exchange of cells and hormones between the two foetuses. Sexual development in the heifer calf is inhibited by the presence of male cells and hormones from the developing bull. The ovaries fail to develop in a fully-grown freemartin cow, and end up about the size of a grain of wheat. She fails to cycle and never becomes pregnant.

The uterus is also underdeveloped and the udder and teats are small (similar in size to the udder and teats on a steer). The vulva and vagina appear much the same as normal, except there is often a tuft of hair on the vulva.

“

There are no such concerns with the twin bull, which will develop normally.

”

A freemartin appears like a normal heifer, therefore you need to get a veterinarian to diagnose her as a freemartin. There is no treatment for freemartin cows; the best strategy is to permanently identify all heifer calves born twins with a bull and assume they will be infertile. For further advice contact your local veterinarian or Agriculture Victoria veterinary or animal health officer, or in NSW your Local Land Services. – Dr Jeff Cave, Agriculture Victoria district veterinary officer

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Consider taking the time to go beyond the weather headlines and seek out the information behind the forecast.

Working with the weather gods Understand what’s behind climate forecasts to better manage seasonal risks. In the latest seasonal climate forecast, average seasonal conditions are favoured for the coming months. This is good news. What is behind the forecast is also important if we are to use it to manage the risk associated with seasonal conditions. Perhaps you are thinking that there is a way of knowing exactly what the weather will be like for the next three months. More likely you are thinking that forecasters have no idea what is going to happen. Well the truth is somewhere in between and the trick is to get a feel for how likely the rainfall and temperature forecasts are. The average prediction is one thing, but the odds of some other outcomes are what we also need to manage risk more effectively. The forecasts are based on things like the sea surface temperature and atmospheric indicators (for example, clouds and where they are, or are not, forming). The strength and direction of wind in different parts of the world are also used. Together they give an indication of how much evaporation might come from the ocean to form clouds and where they might travel and fall as rain. As there are different climate drivers, the tough task is to work out what will happen when they all combine. I take my hat off to our climate forecasters. Their forecasts are getting better all the time because they have more information to work with and new super-computers to process all the information.

If you are in a good position to take on risk, However, it is not just the headline forecast we need to know about. It is also the other you might consider some tactics that enable information provided with the Bureau of you to capitalise on an average season. Meteorology’s forecast. Risk management is a personal thing. On May 7, the El Niño Southern Oscillation Only you, and those in your business, can (ENSO) remained neutral. However, five of determine the best way to manage risk. eight models favour a transition to El Niño Dry season risk management tactics by the end of September. could include: While some models indicate a faster warming • Forward purchasing of feed while prices of the tropical Pacific Ocean than others, the are lower (to counter low silage/hay yields average outlook for September just meets the on-farm). typical El Niño threshold. • Boosting spring fodder production early The Indian Ocean Dipole (IOD) is currently in the season before soil moisture runs low neutral. Outlooks suggest a neutral IOD is (to grow as much fodder as possible). likely to persist until at least late autumn, • Reducing stock numbers (to decrease feed but four of six models suggest a positive demand) and/or planting summer forage IOD is likely by September. crops earlier in spring (or not at all). If a positive IOD were to occur with El Seasonal rainfall and temperature forecasting Niño, this can reinforce the typical dry is one tool that can give a heads up on one of signal observed in Australia during El Niño. the biggest risks to agriculture — the weather. However, it should be noted that model Consider taking the time to go beyond the accuracy during early autumn is lower than headline, ‘El Niño is coming’, and seek out at other times of year. the information behind the forecast. May In other words, based on current the weather gods smile on your farm. information, an average season is most •Agriculture Victoria publishes a quarterly likely — but consider the possibility of dry newsletter for the dairy industry called conditions as the season progresses. Milking the Weather, which focuses on We will have a better feel once we get seasonal and climate risk for the Victorian into winter. In terms of forward planning, dairy industry. To subscribe, email everyone will have their own approach. maria.rose@ecodev.vic.gov.au or If you are highly exposed to a poor season, phone 51470843. it is a signal to put things in place early – Greg O’Brien to cover off some of the risk. Bring your dairy extension officer, exposure back to an acceptable level (good for managing stress, too). Agriculture Victoria, Ellinbank JUNE 2017

Sticking to their principles Red cows and early starts are a fact of life on this South Gippsland farm.

Aussie Reds heading for the shed with the rest of the herd.

It’s been a great season for growing grass.

There are a couple of Swiss Browns in the herd.

JUNE 2017

Some years ago, Don and Dawne Wylie were part of a discussion group led by the late Jack Green. The overriding philosophy was that you have to run your farm your way and the couple has certainly stuck to that principle. Early starts are a fact of life for dairy farmers and the Wylies start their morning in the pre-dawn to set the day up on their Jumbunna-Outtrim property. They aim to get the morning milking, including clean-up, finished well before seven o’clock. There are two advantages that follow from that. Firstly, the cows are in the paddock well before the heat of the day so they are more comfortable and therefore more likely to hoe into the fresh pasture. Secondly, the afternoon milking can then start as early as 2 pm. That’s the major benefit — the working day ends early and if there are issues, there is still plenty of daylight left in which to deal with them. This has particular benefit during the short days of winter and means that evening meals still happen at a reasonable time. They don’t use dogs and their preference is to get the cattle on foot in the mornings as this minimises the stress on the animals, though the quad bike is fired up to reduce the effort in the afternoons.

The Wylies are multi-generational farmers. Their son, David, works with them in the mornings before he heads off to his workshop. Their daughter, Linda, does the afternoons with her partner, John. The farm has a 24-a-side swing-over herringbone dairy that was built about 20 years ago and runs technology that suits the nature of the farm. An earlier concrete block shed sits beside the newer one and is used for calf-rearing. The 50-paddock property was established in 1896 and is one of the very few in the area still being run by descendants of the original owners. There are 180 ha for the milkers and 200 ha of turn-out paddocks. They used to have a few paddocks of turnips but now only run grass. This is supplemented by the distinctive Western Districts square bales which were becoming more common across Gippsland prior to this highly productive growing season. In April the Wylies were milking 250 cows. The herd peaks at 330 head every year with calving in both spring and autumn. There are no plans to increase beyond that size as they see that as a sustainable number and they are focusing on improving the

Linda Wylie bringing the milkers to the shed

A good feed in the night paddock

quality of the herd. They are purchasing AI blends that offer longevity and productivity. Longevity is also increased through the use of Aussie Reds as the predominant breed. The Wylies acquired ‘Red #1’ many years ago at a clearance sale. Linda spotted six red springers and, at the end of the day, no-one else wanted them so they were affordable and a bit different. These cattle were eventually joined with their existing bloodlines and the resultant calves proved to be well suited to the Jumbunna farm. The Australian Red Dairy Breed was officially recognised in 1987 and has been promoted as Aussie Reds since then. They are tolerant of wide variations of climate, including heat, and their advocates say they can outperform other

breeds through improved productivity, early maturation, high feed conversion ratios and increased longevity. Thanks to this breeding strategy, the Wylies have a large proportion of cows that are productive into their teens. Mr Wylie believes you should give each cow a thorough going over when they reach the age of five. He gives them a second look when they reach 10 and makes a business decision about keeping them in the herd based on their production and health. As he follows the herd of Aussie Reds and Friesians into their night paddock, Mr Wylie says no matter how fond you might be of any particular animal, dairy is a business and you need to look at things from that perspective.

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Inquiry hears industry concerns The Senate inquiry into the dairy industry has delayed finalising its report until June 29. The committee was initially due to deliver its report in March, but extensions were granted to May and then June. The Senate committee sat for one day in Shepparton. Below are some of the remarks made by witnesses to the Senate inquiry. UDV president Adam Jenkins: Australian Dairy Farmers Bega Cheese managing “There is nothing worse than president John McQueen: director Barry Irvin: taking phone calls on a Sunday “There have been some collective “I absolutely recognise that one night or a Monday morning bargaining groups that have of my own suppliers is up here with people crying and saying, formed since then that have saying that he is losing money ‘My milk price has been dropped been more successful than others. this year. It breaks my heart to to $1.91 and this is going I think it is fair to say that, in hear that, but, of course, I know to really put us to the wall’, the majority of cases, companies it to be true, and I know it to particularly when they are a do not want to work with be true in circumstances where generational farmer that has collective bargaining groups. the market is just not returning just handed over the reins to There are still some collective a cost-of-production figure for a younger generation coming bargaining groups that operate. suppliers. We do have some through. That is where I get Many of those are operating optimism looking forward as back to my leading statement: on the basis of supplying the market inevitably turns it is up to all of us to make sure a specialty-type branded and changes again, as it almost we put a stop to what happened product to a supermarket, for always does. The downturn last year so that does not happen example. There have been a few that we have experienced in again and we can move forward.” examples where they have been this industry in the last three extremely successful.” years is the longest I have ever experienced. Therefore, it

needed careful management, and we have looked to do that.” Dairy farmer Bridget Goulding: “At the moment we keep getting rammed down our throats that the drop in milk supply is due to the weak winter. This is not true. The lack of milk supply has been due to the massive cow cull after the clawback that was caused by Fonterra and Murray Goulburn’s lack of planning and reactive management style.’’

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Katandra dairy farmer Nick Minogue enjoyed his study tour of New Zealand.

Study tour inspires young farmer New Zealand trip opened up a new world of dairying for its participants. The opportunity to travel to New Zealand as part of the Gardiner Foundation/UDV New Zealand Study Tour was too good to refuse for dairy farmer Nick Minogue. The 23-year-old was part of the contingent that travelled across the Tasman Sea in February. “The tour was a great opportunity to network with other farmers and look at dairying in another country,” Mr Minogue said. “I learnt lots of things and definitely got a much broader picture of the dairy industry along the way — it was well organised and a great trip and I would recommend it to anyone considering it for next year.” Mr Minogue said one of the things that stood out for him was the clear pathway New Zealanders have to work their way through the industry. “People start out as farm workers, managers and then move in to a share arrangement,” he said. “Not many dairy farmers own their own farms over there because land prices can be up to $60 000/ha in some places, but the pathway is clearly set out and quite easy to follow. “Farms are also spotless and very tidy even though the public has a negative view of the industry environmentally.” The itinerary covered a good cross section of the industry and participants got to look at many different systems from some of the leading farmers in the country. “We visited farms that were based on a pure grass system right through to 24-hour-a-day robotic farms — we covered everything and got a great overview of the New Zealand industry,” Mr Minogue said. He said another positive of the trip was

networking with other young Australian farmers and sharing ideas with those who farm in different regions. “I made some great friends and it has been good to hear stories from different people in the industry.” Mr Minogue milks 180 spring calving cows with his parents John and Ann-Maree at Katandra. “I enjoy cows and growing green grass. I get a real sense of achievement shutting the gate on a paddock of grass I have grown myself.” Mr Minogue may be young but he has firm plans of continuing in the industry he loves. “I have used the holiday to inspire me and come back refreshed for the year ahead. It has been a tough year and even though we have been sheltered from some of the issues because we are Bega suppliers, I am looking forward to the new season.” One of the areas the business is looking to focus on and improve is wintering the cows. Mr Minogue is also considering growing fodder beet. “I would urge anyone interested to consider a trip like this in their future. I learnt a lot and it really was a great opportunity.” The study tour is an annual event organised by the UDV. It incorporates a Certificate IV unit of study in agriculture which is supported by the National Centre for Dairy Education and is open to participants aged between 18 and 35 who are actively involved in the dairy industry either on or off-farm. Participants must agree to have an ongoing relationship with the UDV and Gardiner Dairy Foundation and undertake leadership roles in the industry or community upon their return. For more information, visit: www.vff.org.au

Tom Henneghan of Ashburton talks to the Australian contingent about his farming business – he is a 50:50 sharefarmer.

Simon Valley from Gore in New Zealand stands in a fodder beet crop as he discusses the pros and cons of growing this particular crop for his dairy cows.

The tour travelled to Dipton where participants viewed the herd of Richard and Mandy Jones. JUNE 2017

Good and bad news for dairy

for major regional projects to support structural adjustment and $200 million for the Building Better Regions Fund. • Extended eligibility for Farm Business Concessional Loans Scheme: Farmers and their partners who have received The recent federal budget has their full entitlement for Farm delivered some important Household Allowance will priorities to the dairy industry but eligible for loans up to 50 per also raised concerns, according to cent of their debt position for Australian Dairy Farmers. refinancing purposes. ADF interim chief executive officer • Gas supply affordability: John McQueen said the Federal $86.3 million over four years Government had to find a difficult to improve gas regulation and balance between the need to find supply. savings and the desire to grow Mr McQueen said a concern for agricultural industries, including dairy was the change to visa fees. dairy. Businesses with turnover of less than $10 million will be required “While we were prepared for a to make upfront payments of no-frills budget offering limited spending initiatives, we are pleased $1200 for temporary skill shortage visas (to replace the 457 visa) the government has delivered on and $3000 for employees on some priorities,” Mr McQueen permanent work visas. The money said. will be used towards the Skilling Budget announcements relevant Australians Fund. to dairy include: ADF is concerned the increase in • Instant asset write off extended fees for foreign workers will be for 12 months: Businesses detrimental to the dairy industry. with a turnover of less than “We believe the fee increase will $10 million will be eligible place an even greater burden on for accelerated depreciation farmers who have had to rely arrangements for assets valued on skilled migration to bolster at less than $20 000 until June their workforce due to critical 30, 2018. labour shortages in many dairy • Regional Growth Fund: $272 million over four years regions,”Mr McQueen said.

UDV welcomes action against MG chiefs The UDV has welcomed the Australian Competition and Consumer Commission decision to launch legal proceedings in the Federal Court against former Murray Goulburn chief executive officer Gary Helou and chief financial officer Brad Hingle for their alleged roles in last year’s milk crisis. “It’s been a tough 12 months for our dairy farmers but we’re pleased to finally have a resolution that those responsible for the milk crisis are being held to account,” UDV president Adam Jenkins said. “We’ve been very strong from day one of the dairy crisis to ensure our farmers are not bearing the risk for management decisions made up the supply chain.” The competition watchdog identified a lack of transparency

in price notifications as its reason for launching legal proceedings. But the ACCC won’t seek a pecuniary penalty against Murray Goulburn, saying any financial penalty “could directly impact on the affected farmer”, instead seeking declarations, pecuniary penalties, disqualification orders and costs against the two executives. “We’re pleased the ACCC has recognised that seeking a pecuniary penalty will only go back on the same farmers who were affected by the price cuts,” Mr Jenkins said. “But accountability starts at the top and it’s a relief to see the ACCC holding the people in charge to account for the anguish the industry has felt over the past year.” JUNE 2017

No avoiding NLIS rules Bobby calves going for beef rearing must have NLIS tags before they leave home. Producers looking to take advantage of the booming beef market are being warned their obligations under the National Livestock Identification System have not changed. The NLIS is an Australia-wide system for Agriculture Victoria district veterinary officer identifying and tracing cattle. It is a legal Hannah Delahunty said the autumn season obligation that the unique identification for had been great for cattle farmers in Victoria every animal, and the Property Identification so more bobby calves than usual were Codes of the seller and buyer, must be heading off to be reared. recorded within seven days of the movement of animals. “Many bobby calves which would normally go to the abattoirs, are instead being sold to Dr Delahunty said NLIS tags were not grow into beef,” Dr Delahunty said. ownership tags, they were an electronic device “So it’s important to remind people what they that facilitated whole-of-life tracing of animals to help respond to disease outbreaks or food need to do when selling their cattle. safety issues, which are “important to all our “All cattle, regardless of age, and wherever they livelihoods given the value of our exports”. are sent, must be identified with an NLIS tag “Collecting and registering movement prior to dispatch from the property of birth, information is easy. It can be done using a and that tag stays with the animal for life. tag reading wand and computer connected “Cutting out NLIS tags and replacing them to the internet. You’ll also need an NLIS with your own is illegal. All private buyers must record the movement of cattle onto their database account.” property by updating the NLIS database.” There are now smartphone apps that make

use of new technology like bluetoothequipped wands, so the transfer can be done simpler, quicker and easier wherever there is mobile or wi-fi reception. If the bobby calf is purchased through the saleyards, the saleyard operator will do the transfers for you. If the purchase is arranged directly and brokered by a registered livestock agent then the agent has until close of business the next day after the cattle are sold to do the transfer for you. Agriculture Victoria staff are available to help with information on the NLIS and identification requirements. For more information, contact animal health staff at Agriculture Victoria offices, or the NLIS Helpline on 1800 678 779 during business hours or visit: www.agriculture.vic.gov.au

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Star heifer arrives in Canada Record-breaking heifer Lightning RidgeCMD Jedi Gigi-Imp-Etn, which fetched $251 000 at an International Dairy Week sale in January, has landed safely in Canada and been transferred to her new owners, Sexing Technologies. The heifer underwent a 24-hour trip from Australia to Canada and a 30-day quarantine before arriving at her new home where she will begin IVF treatment. Total Livestock Genetics arranged the export to Canada and export co-ordinator Michelle Williams said it was an “uneventful” export. “It all went quite smoothly … I definitely breathed a sigh of relief when she got through transit in Los Angeles and then again when she landed in Toronto,” Ms Williams said. “It’s unusual to export to Canada, not a lot of livestock going that way, most of our exports are to Asia or New Zealand so it’s nice to do something out of the box, a little different.” The six-month-old calf was bought by the Texan firm Sexing Technologies from Declan Patten and Callum Moscript from Lightning Ridge Holsteins in Gippsland, with her Genetic Total Performance Index results drawing plenty of attention.

Lightning Ridge-CMD Jedi Gigi-Imp-Etn has travelled to her new home in Canada.

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Fund helps dairy farmers VFF scheme is boosting resilience and sustainability.

Farmers’ Fund money has been used to upgrade waste recycle systems.

Round four of the Farmers’ Fund is now open for applications. The Farmers’ Fund is designed to increase the resilience and sustainability of farmers in the dairy industry through accessing grants that deliver real benefits. The Farmers’ Fund is 100 per cent owned and managed by farmers through the VFF. The initiative raises money through the sale of

Farmers’ Fund milk, with 40 cents from every two litre bottle sold directed into the fund. Dairy farmers may apply for grants of up to $10 000 for programs, training or infrastructure that enhances productivity, builds resilience and stimulates sustainable growth. Successful applicants from round three are using their funding for a variety of improvements.

Gippsland farmers have used the grants for paddock drainage upgrades, a dairy effluent irrigation pump, farm layouts and pasture improvement systems, conversion of beef to dairy, grain mill and grain storage systems, and pasture and paddock renovations. To see more examples, go to the VFF website and look for the Farmers’ Fund under ‘initiatives’.

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There isn’t a lot of flat land in Krowera

Making less go further Innovation and smart farming keep this operation ahead of the game. When a Krowera property was in the hands of earlier generations, the family made a comfortable living from 60 cows. With four times that number of milkers on the same property, Andy Thomas now wonders about the pressures on the traditional family run farm. Andy and Dianne Thomas run a herd of Friesians and Friesian crosses that peaks at 255 head. In early May, Mr Thomas was well into drying off and down to 120 milkers — and eagerly anticipating getting down to the last 20. Once that number is reached they will go to a neighbouring farmer who milks his herd through the winter. Mr Thomas believes in getting a good break before calving starts in June. When discussing numbers, Mr Thomas points out that, back in his grandfather’s day, a 60-cow herd was the norm. Today, the herd is just under the average herd size. Smaller farms are being absorbed by farmers seeking financial security through economies of scale. Many farms across the region have old, disused diaries and infrastructure that are relics of families that have left the area. Mr Thomas hopes there will always be a place for the family operator and believes that his farm, at 400 ha including a leased turn-out block, is at its optimum size. He is securing the operation’s future through

Andy Thomas uses recycled water to wash‑down the yards. 22

JUNE 2017

innovation and smart farming rather than upscaling. Some years ago Mr Thomas followed the local trend and signed up to supply Burra Foods, a Korrumburra-based company that mainly deals in exports to Japan, China and the Middle East. These exports consist of powdered products and value added products such as yoghurts and cheeses. This enables Burra Foods to maintain pricing consistency for farmers. Being local to the South Gippsland region, the company maintains strong relations with its suppliers. Although Mr Thomas’ milk is eventually exported, the certification process is no more onerous than if he was supplying the Victorian market with fresh milk. There are a few more forms and some extra, more frequent audits which ensure attention to detail. Farm and herd and management is consistent with industry standards. Smart farming starts with the well-thoughtout, 20-a-side swing-over shed that has been set up for solo operation, although Mr Thomas works with a milker in the mornings. Once he has brought the herd up to the shed he can inspect the animals and perform any medication or treatments. The outraces are an efficient design that affords easy cutting out and includes a covered area so

Good water is used to wash up the cups and equipment.

that routines such as pregnancy testing and drenching can be carried out even when the Gippsland weather is at its worst. The farm currently consists of Mr and Mrs Thomas and one employee. A few years back, in the quest for increased efficiencies, Mr Thomas installed robotic calf feeders. These paid for themselves at the end of the third season as, with decreased labour inputs, Mr Thomas is able to raise an extra dozen calves each year. These have gone to the export market where the strong price has returned good income for minimal extra input. These feeders supply a measured amount of grain from a hopper mounted in the top of the machine. Milk, which is piped from the dairy shed to the calving shed, is also fed to the calves. The feeders are just the right size for one calf at a time and ear tags ensure that each calf gets her allocation. The computer gradually decreases the amount of milk while upping the grain and the calves are given access to a paddock as they are weaned onto pasture. The milkers’ paddocks consist of pasture but Mr Thomas has tinkered with chicory and turnips, particularly on selected north-facing, drier ground. But he has found these crops are not as productive in year two and year three so probably not worth the effort. As well as pasture the cows get 1.8 tonnes of grain/head/year.

Robotic calf feeders paid for themselves in three years.

Pumping from the effluent pond.

Like a lot of farms in the area, many of their paddocks contain areas where the slope is too great to allow safe operation of tractors. All the silage Mr Thomas produces is baled as a feed-out cart can’t be used. After hay season the landscape becomes a patchwork of green and light brown paddocks that contrast the mown area with the steep, unmown ones. Some of Mr Thomas’ efficiencies are based around water usage. He has installed a yard blaster that uses recycled water from the second effluent pond for yard and race washdown. Although the water is discoloured, the system easily meets EPA standards and the milk continues to meet all industry standards. Cups and milking equipment are washed in the usual way using fresh water. Given the high rainfall, water management might not seem to be an essential part of running a farm in South Gippsland and Bass Coast. But the steep land means that farms have many small dams that are hard to manage effectively and there have been long

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A well-thought-out shed and yards.

dry spells that forced some farms in the area to cease operations. The Thomases are some of an increasing number of farmers who are working with Bass Coast Landcare to manage water resources. They are among the many farmers who have taken part in the Western Port Greenhouse Action and Resource Efficiency Project. Step one was a stock take of water resources. “People often don’t know what they’ve got, until they don’t have it any more. By then it can be too late,” Agriculture Victoria’s Barrie Bradshaw said. Looking carefully at their farm plan, particularly in relation to water usage, the Thomases reached a few conclusions. Water was not distributed evenly over the farm, which limited their ability to get the most from all their paddocks. While some dams were not holding water, dams in good catchments were filling reasonably well. Another interesting realisation was that apart

from drinking water for stock, wash-down was responsible for most of their water use and they had a large reserve of water sitting in their effluent ponds which was not being used. To free up that resource, the Thomases installed a Muck Runner at their effluent pond and this water is used for washdown through the usual hose system and the Yardblaster, which used high pressure to reduce the amount of water, and time, needed to clean the holding yard. As the Muck Runner is a fair distance from the farm there is a red light in the shed that alerts operators to its operation so that it isn’t running unnecessarily. The Thomases are now focusing on longterm improvements to their water system. They want to capture more water and distribute it evenly throughout the farm but instead of wasting time and money on poorly performing dams, they plan to enlarge the better ones and buildadditional dams in the good catchment areas.

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Rethinking the Everyday

They did it their way

Partners overcome the ups and downs of starting a dairy farm.

While other dairy farmers look for alternatives to the large companies, a small farm in Gippsland has started supplying Murray Goulburn. Chris Cansdale and Mark Virgona started with a Mornington Peninsula hobby farm. Looking for a larger property they purchased Amber Valley Farm at Strzelecki. Mr Cansdale became a relief milker for a neighbour while Mr Virgona ran the 40 ha mixed farm. The associated farm gate business sold sausages, free-range eggs and local produce. They then decided to supplement sales income by raising a few heifers to send to market.

Possibly the most contented herd in Gippsland. 24

JUNE 2017

They raised a mix of farm-bred and boughtin calves on a leased 15 ha farm. They were just about to start calving when the milk price crash rendered the cattle near worthless. They wouldn’t countenance sending their bottle-fed animals to the abattoir. The leased property included a dairy which offered a way forward. Getting it operational was relatively simple. They bought-in more cows and leased a further 40 ha but settling in proved problematic. Theileria (bovine anaemia), little known at the time, was an issue. They are now expert in its detection and treatment. They were also challenged by the steepness of the terrain and decided to purchase Seabrook

Mark Virgona and Chris Cansdale plan to divide the large paddocks into smaller ones and extend the laneways.

farm, one of the oldest properties in the area, just a few minutes’ drive away. This was a much better proposition to complement Amber Valley Farm and, after some negotiation, they bought the 70 ha property, which included a slightly more modern dairy. The farm is a partnership. The milking is Mr Cansdale’s specialty, which he accomplishes without relief milkers, and Mr Virgona handles the farm work. Both do the accounts and are evolving a long-term financial plan with the aid of Murray Goulburn agribusiness manager Paul Dodds.

Mark Virgona is proud of the placid nature of the Jerseys.

Amber Valley Farm sells a range of ‘Beyond Organic’ produce, although the emphasis is now on supplying milk to Murray Goulburn.

Mark Virgona rewards the lawnmower cows.

Mark Virgona and Chris Cansdale use technology that suits the scale of the enterprise.

Chris Cansdale leads the herd over the steep slopes to the dairy.

They have expanded the herd but stuck with Jersey-crosses. They prefer these smaller cows as the dairy is a tight eight-a-side swing-over. They run a year-round calving pattern that is weighted toward autumn with a smaller peak in spring. They only use their own Jersey bulls, which have been unusually hardy. One of their progenitor cows, Nan, died at 17 years of age (all the cows have names). In April on the home farm, they had 20 springers and 20 heifers that had just been joined, to complement the 64 milkers at Seabrook. This farm runs a low stocking rate of roughly two cows/hectare. The milkers get 5 kg/day of grain. They have a back-to-basics attitude as espoused by Joel Salatin, an American farmer, lecturer, and author whose books include Folks, This Ain’t Normal; You Can Farm; and Salad Bar Beef. Though not strictly organic, they use traditional methods that pre-date chemical

fertilisers. The dairy is almost retro chic and they eschew technology, not even having the luxury of auto cups-off. Re-establishing the infrastructure has been difficult due to the lack of continuity of operation and ownership. Maintenance and troubleshooting of troughs is much harder when you have to search the steep hills for the old pipes. When they decided to concentrate on dairy farming, Mr Cansdale and Mr Virgano approached a number of milk companies. Murray Goulburn was the only one to show an interest, so signing with Murray Goulburn was a necessity. Although the dairy hadn’t operated for several years, MG classed it as a re-start to make the transition from mixed farming much easier. Mr Cansdale and Mr Virgano believe farming has to be sustainable, enjoyable and environmentally sound. That’s the way they want to farm.

The eight-a-side swing-over dairy.

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I reckon he’s been at it himself.

Southern skies last century A Victorian Government publication, Under Southern Skies, has arrived at the desk of Dairy Direct and contains some fascinating photographs of the Gippsland region. The publication was released in the 1950s and captures a snapshot of agriculture and community life at the time.

The dairy factory at Drouin.

The photo was taken in the Foster North district.

Ayrshire cattle at Lindenow Flats, Walpa.

A dairy herd on the Gainsborough flats, near Ellinbank.

A Jersey herd at Boisdale.

JUNE 2017