Dairy Direct Murray April 2017 by McPherson Media Group

PUBLICATION

MURRAY Issue 29, April 2017

Insider photos

A day in the life of a dairy farmer » page 18

Soil health feature » page 14 Starting from scratch — a migrant’s journey » page 29

Staying loyal when the crunch comes » page 38

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Strategies needed to manage risk Plan ahead to cope with the factors we can’t control.

Dairy farm risk management is an area we deal with on a daily basis. This can be as simple as checking cows for mastitis, allocation of the correct amount of pasture to the herd or paying your bills. Or we can deal with risk in a more strategic way, such as, doing cash, water and feed budgets, talking to your bank, or asking “are we using the right feeding strategy for our resource base?”. We all work in a volatile space. There are many factors that influence our farm businesses that are outside our control, such as climate and milk prices, therefore we must put in place strategies to help overcome or take advantage of both the negative and positive aspects of these. Murray Dairy plans to pilot a program assisting dairy farms in transition — be it growth, exit, system change or labour up-skilling — to understand where their exposure to risk lies. The key to operating a long term profitable dairy business is to have a range of strategies in place to minimise the risk to the business; these strategies will vary depending on the owner/operator’s attitude to risk, business goals and objectives. Murray Dairy is in the early stages of planning a series of seminars about managing water portfolios.

Included in this will be water trading, leasing and carryover. With water storages quite high and prices reasonable at the moment, we must take this opportunity to reduce this risk to our businesses for the short term.

contents

Forum hears farmers’ fears ��4 Apology for botched scheme ��5 Fingers crossed for a better autumn ��6

The sleepers in all this are the ‘right to farm’ risks, our social licence. As we are coming under increasing public scrutiny, these are the risks that can shut the industry down, and as such, should never be taken for granted.

MG suffers financial and supply loss ��7

Animal welfare, biosecurity, natural resource management and climate change are massive issues not just for dairy but all agriculture, and as such should be tackled on a national level by our peak farming bodies.

What’s under the surface? ��14

Animal welfare is, in particular, a key priority for the dairy industry and as such Murray Dairy continues to work with all our farm owners and their staff to ensure they are following industry standards and implementing best practice.

Time to talk about anthrax ��8 Passion won’t pay the bills ��10 Production margins remain tight ��12 Taking the guesswork out of joining ��13

Farm life captured on film ��18 No simple answer for autumn sowing ��25 Taking the guesswork out of rye-grass ��26 Beware Q fever ��28 From growing tea to milking cows ��29 Digging into a dirty topic ��30 Winter fair enters its fourth year ��32 Work on profitability ��34

On a positive note, we have seen a positive trend in commodity prices since Christmas, and industry analysts have forecast higher milk prices for the 2017– 18 season — here’s hoping for a good one!

Fonterra announces step-up ��34

–Rick Cross Murray Dairy chairman

Direct Dates April – June 2017 ��39

Looking for the next big thing ��35 Infant formula drives profits ��36 Sticking with the devil they know ��38

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Editor Geoff Adams editor@countrynews.com.au Writers Geoff Adams, Sophie Baldwin, Rodney Woods, Alana Christensen Graphic design Bella Considine, Stacey Taylor, Brendan Cain Cover: Late at night on the Moritz family farm near Kyabram. Picture: Renae Moritz. See page 18 for the photo gallery.

Advertising Ashton Still ashton.still@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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dairy news Forum hears farmers’ fears Dairy farmers tell the ACCC they are worried about milk prices and the future. Milk price transparency and the future of the dairy industry were the biggest concerns of farmers who attended an Australian Competition and Consumer Commission forum in Shepparton at the end of February. ACCC commissioner Mick Keogh said a lot of time was spent on price transparency during the forum. “The examples provided were that processors announce a price at the start of the season and many farmers are not getting the price at the end of the season, meaning there is little resemblance between the forecast price and what they are getting paid,” Mr Keogh said. Fifty-five farmers attended the forum, where the other big topic of discussion was their concerns about the dairy industry’s future. “The general mood was quite downbeat and a number expressed real concern about the future in dairy farming,”

Mr Keogh said. He said there was real angst about whether dairy farming would be a viable business into the future. “There was a lot of questions about whether dairy companies had breached competition laws in Australia.” Mr Keogh said the aim of the forums was to understand what farmers’ experiences were with dairy processors. “The aim of the forums is to get good information about their experiences in business with dairy processors. “It’s in our interest that good open competition and proper markets are working within the industry.” The Shepparton session was one of a host of forums across Australia that will form part of the ACCC’s submissions to Federal Treasurer Scott Morrison about competition and fair trading. “The information from the forums in combination with detailed information from processors and retailers will be analysed and further talks with processors and retailers will be had,” Mr Keogh said. “Recommendations are to be made to government, with a report handed to the treasurer before October this year.”

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ACCC commissioner Mick Keogh said the mood in the room at the February meeting was “downbeat”.

dairy news Apology for botched scheme DHS says sorry for its handling of Farm Household Assistance applications. Federal Government departments have The report noted the average time for apologised for their poor performance in applications to be processed should be 28 handling some of the botched dairy farmer days for simple applications and 42 days for applications for Farm Household Assistance. complex applications. The departments and the Federal The report contained no reference to the Government have come under criticism actual time taken for applications. for lengthy delays, lost applications and At Congupna several people complained that confusing paperwork. it had taken months to get their applications As a result of the complaints, Victorian dealt with. Senator Bridget McKenzie organised four The DHS report on the roundtable meetings roundtable public meetings in Victoria noted that its staff engaged with more than (including at Congupna) to consult with 80 customers and intensive support was farmers on the issues. given to 23 customers. Follow-up calls were The Department of Human Services has also made to farmers who attended the apologised to customers for delays and sessions. failing to reach expectations. However, the seven-page report made no “Both DHS and the department committed mention of complaints that staff had lost to undertake a review of the FHA and sensitive material and asked applicants to regeneric social security forms that FHA send or attend the office to provide material applicants are required to complete to twice. wherever possible remove duplication, as well as redundant or non-essential questions,” UDV president Adam Jenkins, who attended the department response said in a report. two of the sessions, said he was aware of

some applications that had taken close to six months. He said the applications should be treated with similar urgency to benefits for fire, flood and other disasters. “They just seem to get caught up in the Centrelink social welfare system. There needs to be a mechanism to speed up the system.” Mr Jenkins said he was not surprised to hear the complaints at the session because he had already heard feedback about the problems, including the disappearance of some documents. Asked if the investigations and report had gone far enough, Mr Jenkins said “time will tell”, as there were still applications being processed. He welcomed changes to the government’s package that had been introduced to speed up the application processing time and the way farm assets were dealt with.

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Doing Dairy

with SOPHIE BALDWIN

Fingers crossed for a better autumn As the weather changes, so does Sophie’s opinion of the UDV. It’s that time of the year when dust starts to swirl, tractors head up and down the paddock and water starts to flow. It’s autumn and, with water at a more respectable price, I am hoping this autumn can be the start of something good for the northern Victorian dairy industry. It has been a tough year and while it still continues to be so, I am hoping those of you that have hung on are in for some good times ahead. I spent an afternoon with some UDV members recently and I must say, I actually was quite surprised to learn how much the UDV does for the dairy industry. I think they have been their own worst enemy not actually promoting all they do, but they are active and for a small organisation with limited resources, they actually are batting above their weight. They have been actively involved in making sure last year’s price drop never happens again by removing that clause from milk

contracts and they have also ensured that processors have to give suppliers 30 days’ notice before they can drop the milk price in the future. They also continue to lobby the government to keep the diesel rebate and cheap farm regos available to the farming community. I am sure they have made mistakes in the past but to sit down with the representatives and feel the passion they have for the industry, surprised me. And I guess one thing to keep in my mind, if we didn’t have the UDV or the VFF in there speaking out for the industry, there would be no-one supporting agriculture at all. I also had the chance to speak to the only Sri Lankan dairy farmer in Australia and what a breath of fresh air that was. He sees the Australian dairy industry as one of opportunity and is in the process of working his way towards owning a dairy herd and then on to farm ownership. Not bad for a bloke who came to Australia

with $5000 and a dream. On a personal note it has been a pretty busy summer for me. I have been busy swimming, running and riding my way around the countryside and while some people might think competing in three triathlons in one week is bordering on a little obsessive, I looked on at it as a bit of a challenge. It may also have been a bit of disorganisation on my behalf but hey, I made it through the three of them and even managed to win the veterans’ class and yes, that certainly did make me feel old — not sure how I got old enough to be a veteran, but anyway. I am heading off to Byron Bay to compete in another Olympic distance triathlon in May and then off to see some of the world with an overseas trip planned in July. It is going to be another crazy, busy year but you only get one shot at life so I reckon I might as well have a crack and make it a good one.

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Murray Goulburn managing director Ari Mervis speaking in Shepparton recently.

MG suffers financial and supply loss

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New managing director is positive despite profit slump and big drop in milk supply. Murray Goulburn Co-operative big drop in milk supply. has recorded a first-half-year loss Mr Mervis said there were about of about $31.9 million and has 350 suppliers who had left the suffered a 20 per cent reduction co-operative since May but there in milk supply. were still about 2200 suppliers and his focus was on them and The big milk processor has also retaining them by obtaining the experienced a 14 per cent cut in best he could for them. revenue compared to the same period last year. He said the company was pursuing cost reductions and While the result looks after last April more than 200 disappointing on paper, new positions had been removed managing director Ari Mervis from the corporate office, said the financial results were generating savings of $10 million not unexpected in a particularly to $15 million in the current challenging year. financial year. Mr Mervis said it was flagged When fully implemented, it will in October last year that there create about $50 – $60 million of would be a debt generated due savings annually. to the attempt to maintain a competitive milk price. A company asset review is under way which Mr Mervis said was So, he said, the financial result was broadly in line with last year. being pursued with diligence and rigour. “Record rainfalls and high Mr Mervis said he was aware of levels of competitor activity speculation about the future of have reduced our milk intake, the Rochester factory but he said impacting revenue and our ability to fully recover fixed costs no decisions had been made. and overheads,” Mr Mervis said. “It would be premature to draw any conclusions.” “In addition, although the recent increases in the global prices of He said the outlook was more dairy commodities are welcome, favourable with on-farm they have not recovered in time conditions and global conditions. to impact on MG’s first-half “While there is a lag on the sales volumes.” benefit of those commodity The company has prices if they are more favourable and optimistic, there blamed aggressive market is a general consensus that things competitiveness for milk supply are looking more positive.” and seasonal conditions for the

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animal health Time to talk about anthrax

Keith Fletcher, Rochester Veterinary Practice

Climatic conditions are ripe for an outbreak so be vigilant. Anthrax is a notifiable disease caused by the bacterium Bacillus anthracis. Infection results in a rapidly fatal septicaemia which normally presents as sudden death. Ruminants and horses are very susceptible to the disease but other species such as pigs and humans can also be affected. When the bacteria are exposed to air, they form highly resistant spores which can remain viable for 50 years or longer in contaminated soil, hides, wool or blood and bone meal. Sporadic outbreaks of disease occur when the correct environmental conditions of heat and humidity are present. Outbreaks are often associated with recent earthworks. The animals usually ingest the infective spores while grazing or chewing on contaminated carcases. They then succumb

to the infection, die and have the potential to release many more bacteria into the environment, thereby increasing the likelihood of other animals becoming infected. For this reason, it is vital to not move or open any suspect carcases. There have been a few outbreaks in the Goulburn Valley in recent years and, just last month, an outbreak on a sheep property near Swan Hill. It is important for all cattle and sheep owners to be suspicious of any cases of sudden death in their stock. If you suspect anthrax you should contact your vet or Agriculture Victoria on 5761 1511 and a vet will come out to investigate. There is now a cow-side kit that can be used

to check for anthrax without having to open the carcase, and there is no charge for this service. In addition, Agriculture Victoria will pay $1000 to you if anthrax is confirmed, the carcase has not been moved and it is your first case of anthrax since January 1, 2010. Outbreaks are controlled by vaccinating all animals on infected properties and adjacent properties. The vaccination is carried out by private veterinarians under permit from Agriculture Victoria. For more information about vaccination, contact your local Agriculture Victoria office. As this summer/autumn has produced the right climatic conditions for an outbreak, please be vigilant. If in doubt — have it checked out.

Perennial rye-grass holds hidden risk Perennial rye-grass toxicosis (PRGT) can be a serious and widespread problem in livestock grazing perennial rye-grass-dominant pastures during the summer and autumn. The condition occurs annually, particularly in southern Victoria, and in some years serious incidents of PRGT result in devastating animal losses. About 90 per cent of established perennial rye-grass plants are infected with an endophyte fungus known as Neotyphodium lolii. This naturally occurring fungus is not harmful to the grass, but it produces chemicals (alkaoids) which can produce toxic effects in livestock grazing infected pastures. The most commonly recognised symptom of PRGT is rye-grass staggers, which can be seen

in sheep, cattle, horses, deer and alpacas. Less The most toxic pastures are those dominated obvious signs may include ill-thrift, especially by perennial rye-grass. in young stock, heat stress, scouring, reduced High-risk seasons are likely when late-season fertility and lowered milk production, which rainfall causes abundant pasture growth and all contribute to production losses and where the following summer and autumn animal welfare concerns even when staggers conditions include hot spells during the dry are not seen. period. There is no specific treatment for PRGT, There is no specific therapy for PRGT. however toxic pastures can be avoided with Recovery occurs over one to four weeks once careful animal and pasture management animals are removed from toxic pastures. strategies. In mild cases of staggers, stock should be Perennial rye-grass toxicity occurs regionally left undisturbed or quietly moved without a in winter rainfall areas every year, most commonly in late summer and early autumn. dog to a safer paddock with a water trough, In the autumn of 2002, an estimated 100 000 rather than open water to avoid the risk of sheep and 500 cattle died as a result of PRGT drowning. in Victoria. – Agriculture Victoria

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Ben Govett has serious doubts about the future of the dairy industry if it continues down the same path it has been on for the past 10 years.

Passion won’t pay the bills Staunch dairy supporter fears for the industry’s future and has harsh words for governments’ failure to act. There is no way you can fault Ben Govett’s passion for dairying. Born and raised on a family farm at Tandarra near Dingee, the 31-year-old has spent most of his life involved in the dairy industry and surrounded by his beloved Holstein and Brown Swiss cattle. The business milks 250 cows on 600 ha, with 80 ha of irrigation. The split-calving herd is 70 per cent spring calving and 30 per cent autumn, and is an equal mix of Brown Swiss and Holstein. Mr Govett has shown and judged cattle across the country, and always has time to pass on his knowledge to those in the industry, in particular the younger generation looking to improve their cattle handling skills. Every year at International Dairy Week, Tandara Brown Swiss feature heavily in the winner’s list and you probably wouldn’t find a better Brown Swiss herd anywhere in Australia. Mr Govett loves the industry but he has 10

APRIL 2017

some serious concerns about the direction it is heading in. “I am passionate about the industry and it is probably to my own detriment,” he said. “Obviously I want to take over the family farm. I see a future and there are things I want to do and efficiencies I want to achieve, but without money and a sustainable industry how can I do any of these things? “Today if you were looking at a dairy farm purely from a business investment you just wouldn’t do it, the return on capital investment is just not there.” Mr Govett said since he was 15 he had heard how the dairy industry has so much potential — more production and more milk. “We should really be in the golden age of farming. The mining bubble has burst and agriculture is the only true manufacturing industry left in Australia. “We have the potential to make our country wealthy — but agriculture seems to be at the back of everything which is just so shortsighted.

“I don’t understand how the government hasn’t woken up to the potential of agriculture across the board, not just dairy but the whole farming sector.” Mr Govett said most farmers had pushed production and increased herd numbers and it was no longer a question about getting more efficient. “We need an industry that is profitable and sustainable and one that creates a future where we can spend money on infrastructure. “At the moment we have the water market working against us and if we didn’t have the spring that we had this season, who knows where we would be? “Water is a major issue for everyone in northern Victoria.” He said fluctuations in milk price were expected but last year’s milk price drop simply destabilised the industry. It was poor management at the highest level and Mr Govett was quite outspoken when Murray Goulburn initially took on the dollar milk contracts.

The next generation of Brown Swiss.

The rotary dairy on the Tandarra property.

“I could see back then it was going to be a disaster and Fonterra, well they have just profiteered from the whole situation and they only dropped the milk price because they could. “I think the government’s response to this has been pathetic — concessional loans are a joke and so is the Farm Household Allowance. “As dairy farmers we are producing a perishable product which ultimately makes us price takers. “We can’t turn the tap off on the cows and start again when things are good, but one good year and 10 bad ones isn’t going to

help us have a future, let alone an industry.” Mr Govett likened running a dairy business today to gambling. “It really does seem to be the luck of the draw; you can be the best manager in the world and you still can’t get the numbers to stack up. “Our inputs have doubled and even tripled in cost. If people want to eat cheap food then the cost to produce it needs to be subsidised somewhere — maybe they need to tax luxury items. “Our political system really is a joke and I think a lot of people are fed up with the

direction things are heading.” Mr Govett has been an advocate for dairy for many years and has spent a lot of time working with young people. “I have a four-month-old son now and I don’t want him to be a dairy farmer. “I don’t want him to have to deal with the stress of not being able to pay the bills and wondering when things are going to get better. “I like working hard and I love cows, milking and the stud industry but I wouldn’t promote the industry now to anyone.” APRIL 2017

Production margins remain tight Report points to declining milk production but lower input costs. Milk production failed to increase and input costs were also on the decline during the past year, according to a new Dairy Australia report. The Situation and Outlook report said milk production margins remained tight or negative, and many farmers faced a significant task rebuilding their equity position after the past 12 months. The report said the year-on-year drop in Australia’s milk production had moderated, from more than 10 per cent for the first four months to 8.5 per cent for the July to December period. Dairy Australia expects this gap will narrow further but remain significant, as it forecasts full-season production to be down by six to eight per cent on the 2015–16 total of 9.5 billion litres. Victoria’s 10th-wettest spring on record saw northern Victorian dam levels up and temporary water prices down. Spring rainfall in the Murray-Darling Basin was above average by 64 per cent. The rain brought relief to farmers in northern Victoria as well as those across the border, with temporary water prices trading at $160/Ml south of the VictoriaNSW border and $118/Ml north of it. Both figures were down significantly from the previous year. Dairy Australia’s report also found that wheat and hay prices were down, with stockfeed wheat at $230/tonne and shedded cereal hay sitting at $148/tonne at the end of last year.

The report also suggested that Meat & Livestock Australia was predicting the possibility of cattle prices easing by 20 to

40 per cent in its 2017 Industry Projections Report and culling of cattle had increased in the 12 months to January by 16 per cent.

What the report said The main points from Dairy Australia’s Situation and Outlook report are: Better balance in global dairy markets and lower input prices are positive signs for the Australian industry. However, production margins remain tight or negative, and many farmers face a significant task rebuilding their equity position after the past 12 months. International dairy commodity prices for most products are back above five-year average levels and costs of major inputs continue to fall, with big grain and hay

harvests bolstering supplies. The year-on-year drop in Australia’s milk production has moderated, from more than 10 per cent for the first four months to 8.5 per cent for the July to December period. Dairy Australia expects this gap will narrow further but remain significant, forecasting full-season production to be down 6–8 per cent on the 2015–16 total of 9.5 billion litres. Robust sales growth is evident in the domestic market, along with significant consumer shifts within categories.

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heat varies between individual animals. For most cows the changes are quite distinct and the system works well. But some individuals show less change in these measures, making them harder to detect. So at Dookie the automated heat detection system is used in combination with other methods, including tail paint and observation of the herd.

when they are on heat. The automated system identifies cows as being on heat by an increase in their levels of activity and decrease in rumination time. Cows that are detected as on heat can be automatically drafted into a holding yard, ready for artificial insemination. Observations of the technology at Dookie indicate that the relative change in activity level and rumination time when cows are on January 1, 2017

February 1, 2017

March 1, 2017

Cow numbers

130

120

115

Kg milk solids/cow/day

1.95

2.10

Kg concentrate/cow/day

7.4

7.8

7.7*

Kg fodder/cow/day

6.4

7.8

9.0**

Pasture (KgDM)/cow

4.8

3.9

3.8

Area in rotation

43.0

35.0

Average milkings/cow/day

2.4

2.6

Number of failures/day

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What’s under the surface? Learning lessons from the Accelerating Change Summer Cropping Workshop. Understanding and improving soil properties plays a critical role in improving crop performance — whether it be in germination, root and plant development, water-use efficiency, response to fertiliser or, ultimately, yield. Murray Dairy farmers and agronomists, joined by soil scientist Christian Bannan, toured the Riverina in January to have a close look at maize crops, above and below the surface, and identify the soil and agronomic factors influencing their performance this year. The group visited Malcolm Holm and Jenny Wheeler’s farm at Blighty, where two different maize sites, subject to the same agronomic management, were performing vastly differently due to differences in soil properties and the fate of irrigation water. The group also visited Rob and Gaye Singleton’s farm at Finley, where they looked at and discussed the impact of crop rotations

and soil preparation on the development and yield potential of this year’s crop. There were also remarkable responses on the Singletons’ site to deep ripping. The following key messages were discussed on the tour: Agronomic timing is critical but not the only factor that determines yield: Maize has consistent agronomic needs in terms of timing of sowing and nutrient application. It is critical to get these things right in order to reach full yield potential. However, it is also important to note that even if the time of planting is within the optimal window and agronomy follows best practice, yield potential may be limited by undiagnosed soil constraints. Having a look beneath the soil may assist in revealing factors limiting productivity which should be considered in the planning stage for high value crops. Once the crop is in and

growing, there will be little you can do to address constraints. Crop rotations, ground preparation and irrigation management are important considerations to ensure that growers are achieving higher water-use efficiency and nutrient delivery. Excessive cultivation in soils with limited organic matter can cause soil structural problems after application of irrigation water. Know your soil inside and out: Variability in yield across the maize sites on the tour can be attributed to variability in the availability of topsoil and the effective root zone depth (subsoil). Topsoil is your soil’s ‘horsepower’ and the subsoil is your ‘water tank’. Topsoil depth is a relatively fixed property, which is often modified from landforming. The less topsoil you have, the less productivity capacity the soil has overall.

Soil on the crop at left was deep-ripped.

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Murray Dairy farmers visited several sites for the soil discussion.

This soil cross section shows the effect of deep ripping on plant roots.

Knowing the depth of topsoil and the variability across a field or farm will assist you to understand the yield potential of different sites, to support good planning and assist in soil management decisions. Maintaining and improving topsoil depth is important for intensive dairy farming systems. There is a delicate balance between cultivation practices that will ensure appropriate seed soil contact and a uniform seed bed and practices to preserve top soil. Variability in yield potential is also related to effective root zone depth. Effective root zone is how much of your water tank you are actually using: There were vast differences in the maize sites in terms of root development and root depth. Some demonstrated hard-panning, consolidated or compacted layers beneath the topsoil which drastically stunted root development and impacted crop performance. In others, the roots were down to almost a metre. The deeper the root system, and the better the soil drainage, the larger the ‘water bucket’ and efficiency of delivery of nutrient for crop uptake.

Management will determine how the root zone develops. If there is a hard pan that is not shattered or a hostile subsoil condition, plant roots will not be able to elongate past these barriers. At one site, where the effective root zone was less than 30 cm, soil slaking and unstable conditions (due to lack of organic matter) had caused consolidation of the soil just under a depth of 10 cm. Treatment of the soil through tillage and the addition of organic matter would enable roots to push down further, and could result in improved crop performance, as observed in the neighbouring bay just a few metres away. In terms of water application, if soil is kept too wet at the start of crop development, roots won’t push down to find water. But if it is kept too dry, yield potential is restricted from early in the crop’s life. Maintaining a moist soil is critical, avoiding prolonged saturation of layers in the profile. This can be difficult to achieve under border check irrigation because an irrigation applies a large volume of water and control of soil moisture conditions is difficult. Soil moisture monitoring and climate data can support irrigation scheduling. But it’s

always good to take out a shovel and have a look. Building organic matter in a dairy system: On most of the tour sites, additional organic matter could be added to improve soil structure. Lack of organic matter causes issues such as slaking and surface crusting, hard-panning at depth, poor drainage (and increased risk of waterlogging), lack of nutrient availability through reduced activity of soil biota and less buffering against pH changes. Increasing organic matter in the soil will help to address these constraints. It will improve the response to deep ripping (organic matter will fill spaces between soil aggregates and prevent soil from slumping back down) and will help to build topsoil. The best source of organic matter for longterm benefit is in plant matter, such as straw or crop residual, which breaks down slowly. Although dairy systems often remove as much biomass as possible to maximise feed, choosing to leave a bit extra behind can have a significant impact on soil health and help to produce more in the long run. >> Continued on page 16

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A trench shows the difference in how crop roots grow.

>> Continued from page 15 Green material, such as manure and effluent, is low in carbon and breaks down faster, and needs to be applied in large volumes to have an influence on organic matter. It offers more benefit in terms of nutrient content. Get deep ripping right for productive purposes: Where soils have been compacted or consolidated, deep ripping can be used

to shatter soils to improve structure and effective root zone. However, it is critical that you make every effort to stabilise the soil in the process. Stability is improved through surfaceretained organic matter moving into the soil, gypsum, topsoil moving to depth and the movement of nutrients. Deep ripping should aim for a depth that will just shatter the hard pan you want to remediate. Best results are achieved where organic matter moves down the rip line behind the ripping tine. This keeps the rip line stabilised, providing preferential pathways for root growth and assists with cycling organic matter at depth. Know the soil constraint before you remediate: It’s particularly important to know the difference between soil physical issues and soil chemistry issues — they are managed very differently. Soil slaking is related to structural stability, which is the soil’s ability to retain aggregates and pore spaces under various environmental conditions. This means the soil slumps and consolidates resulting from a lack of organic matter. If you have soil slaking problems, gypsum responses are often limited and treatment is achieved by building organic matter through correct tillage and agronomic practices.

Dispersion is usually a problem of soil chemistry (namely, high levels of exchangeable sodium and potassium) and can be treated with calcium ameliorants including gypsum. Improving and preserving soil structure is a long-term plan: Rotations, as well as seasonal management, will contribute to preserving and improving soil structure. In clay-dominant soils, often seen in this region, it is recommended that the soil cycles through wet and dry periods to allow cracking and self-mulching of topsoil and organic matter, to maintain structure. While opportunities for drying in an irrigated system are limited, you could consider dryland winter crops or dryingoff segments of the farm over the springsummer period, as it fits into your feedbase system. Growing a rotational crop such as a cereal crop and taking it to the grain stage can give the soil an opportunity to de-water at depth, consume subsoil moisture and improve the structure of subsoil clay. Choose summer crops that fit into your overall system: It is important to decide on summer cropping options with your own resources, goals, feeding system and farming philosophy at front of mind.

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Farm life captured on film A unique ‘photo album’ tells the story of one family’s farming life. Stanhope Fonterra supplier Renae Moritz has taken time out of her busy life to capture images of a typical working day on the farm. Renae has agreed to generate some photos for a feature in Dairy Direct, and for the mural being planned for a wall at the redeveloped Stanhope Fonterra factory. Dairy Direct provided a small camera for Renae to use but, being an amateur photographer, she hauled out her own camera and spent a little extra time capturing her dairy herd, her hard-working children and the antics of the farm animals. The result is a fascinating ‘day in the life of ’ glimpse into a dairy farm. Sick animals being treated, cows giving birth, farm pets getting up to mischief and the poignant moments in the landscape when everything seems to go quiet. “There are times when I absolutely love it,” Renae said. “I remember standing in the paddocks one night and watching the stars and I wouldn’t be anywhere else in the world. “Then there’s the days when the cows fall over in the shed and the calves get out!” Renae milks about 100 largely Holsteins on her property between Kyabram and Stanhope on just under 125ha. She wants to lift that number to about 150, and grow more of her own hay to be more self-sufficient. Renae, who describes herself as a self-taught farmer, first bought the dairy farm as an investment about four-and-a-half years ago. >> Continued on page 23

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Farmersâ&#x20AC;&#x2122; children often form close attachments with the animals they are caring for. Caitlyn spends a few minutes with one of the cows from the milking herd.

The sun breaks through the clouds. Renae loves working outside when the sky puts on a show.

Dirty, and proud of it.

Managing Your Water Portfolio A seminar to explain and discuss the options available for managing your water portfolio â&#x20AC;&#x201D; understanding carry over, parking, LRWS, trading, leasing, and purchasing. Speakers will discuss all this and more answering any questions you may have around water. Details of speakers, venues and dates are still being confirmed, check Murray Dairy website for further details.

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A downer cow is successfully rescued using a lifting machine. Young â&#x20AC;&#x2DC;midwifeâ&#x20AC;&#x2122; Caitlyn assists with the birth of a calf.

Jamielyn, 4, has a pet goat on the farm.

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Register your interest in, Using Dairybase in Your Farm Business to begin analysing and interpreting business performance using Dairybase, financial data, cash flow and tax documents. Please call Murray Dairy on (03) 5833 5312 to register.

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Threatening clouds gather over the KyabramStanhope area but farm work goes on.

Keely Focus Farm Open Day The Keely Focus Farm Open Day will be held at Leigh & Sasha Fletcher’s in Cohuna. As part of the day, Tom Farran from Farmanco and Leigh Fletcher will be covering both the ﬁnancial and physical aspects of the business, this will include insight from our guest speaker, Paul Clavin from Cohuna Vets, who will discuss two key issues the Fletcher Business has been dealing with:

1. Health issues of the Fletcher herd and some of the measures that have had to be put in place to combat this. 2. Discuss the Fletcher herd’s fertility results and discuss some actions the business can put in place to improve the overall fertility of the herd.

Visit www.murraydairy.com.au

Location: 233 Keely Station Rd in Cohuna. Start time set for 10.30 am. Lunch provided so please RSVP for catering APRIL 2017

Milking time again.

Lookout when two bulls accidentally mix.

Renaeâ&#x20AC;&#x2122;s father, Ralph Longford, is pictured in a crop of oats on the farm.

Taking Stock Free 1:1 business assessment and support service designed to help you take stock of your situation by assisting in the collection and analysis of current ďŹ nancial and physical data with the aim of clarifying future farm business options. This is available to all levy paying farmers, regardless of who they supply. Call Murray Dairy on (03) 5833 5312. This program is supported by the Australian Government and Gardiner Foundation.

APRIL 2017

Visit www.murraydairy.com.au

Jamielyn assists with the irrigation.

A family selfie (from left) Luke, Renae, Caitlyn and Amber Moritz.

>> Continued from page 18

Rounding up the cattle in twilight for milking.

Circumstances changed and Renae found herself having to run the farm and look after five children between the ages of four and 12. She embarked on a steep learning curve. “It’s certainly been a change in my lifestyle.” The images she and her family generated will be available for the Fonterra Stanhope mural project. The 30 m by 5 m wall mural, with the theme of ‘Legendairy Stanhope: Proud People, Proud Community’, will celebrate cheesemaking history dating back to the 1920s, along with a rural community known for its dairy farms and agricultural abundance. The mural will be unveiled to the community in mid-2017.

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No simple answer for autumn sowing Pasture type, region and climate all play a part in picking a date. When is the right time to get your autumn pastures sown? This is a common question and discussion point at this time of the year, especially once the weather starts to cool. So what is the answer? Firstly, there is no silver bullet. Your sowing date will depend on the forage type you’re working with, your region and your climate. Sowing to a soil temperature will give the best result, not a calendar date (although, for rye-grass, after St Patrick’s Day seems to be popular). Rye-grass needs a soil temperature of less than 25°C to germinate. To measure this, you can either invest in a soil thermometer or use the air temperature as an indicator.

For rye-grass we want an average daily temperature less than 25°C for seven to 10 consecutive days. Cereals, on the other hand, want a daily temperature of less than 20°C for the same period. Sowing too early and getting some hot temperatures (mixed with hot, exposed water due to irrigating prior to any plant canopy build-up) on freshly germinated plants is a recipe for failure. Although early sowing can result in extra feed available to cows (assuming growing conditions are right) — which is a big plus for freshly calved cows — if the timing is wrong then there is the risk of having to re-sow pastures, which is an added cost in an already tight cash flow year. So, there is no silver bullet. Sowing to

temperature will give you a better chance to get your autumn pastures up and away. There is plenty of hay and/or silage around this year that can be used to fill cows up to help protect the fresh pasture. Very early sowing can increase autumn yield (if conditions are suitable), but there is a large risk of significantly reduced germination due to conditions being too hot. Be aware that a cool February does not necessarily mean a cool March, as many may remember from 2016. For further information, check the Murray Dairy website and speak to your agronomist for the best sowing program for your farm business. –Lisa Birrell, Murray Dairy

It’s time to get your autumn pasture moving.

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Taking the guesswork out of rye-grass A new forage ranking system will help farmers choose the best variety for their needs. Dairy farmers can now make more informed, to assess the agronomic performance of the myriad of perennial rye-grass cultivars profitable decisions when choosing the best commercially available in Australia, until perennial rye-grass for their farming system and forage needs, following the launch of the now. Australian Forage Value Index. “With little independent information on the traits and capabilities of these existing Developed by Dairy Australia in partnership cultivars, farmers tend to stick with what with Agriculture Victoria, Meat & Livestock Australia and the Australian Seed Federation, they know and have used, which can result in lost production opportunity and reduced the FVI is an independently-analysed, incentive to invest in new pasture cultivars,” industry-endorsed economic index based on Mr Murphy said. seasonal dry matter production. “The Forage Value Index scores are calculated Using a simple banding system, the FVI by multiplying the seasonal yields of each ranks the performance of 20 of Australia’s cultivar (as determined by experimental most popular perennial rye-grass varieties trial data) with the economic value (as relative to the typical climactic conditions determined by case study farms in different within each dairy region, providing dairying regions).” farmers with another tool to help lift farm profitability. The economic values for the increased dry matter yields in the trials ranged from $0.15 Dairy Australia’s farm profit and capability to $0.37/kg of extra dry matter. group manager Chris Murphy said there Economic values are the change in operating had been no independent method available

Working out the value of rye-grass.

profit for every kilogram of dry matter increase. The economic value varies with the season, for example, pasture grown on-farm is worth more in winter than spring. To be included in the FVI, each cultivar must have seasonal yield data from at least three, three-year trials using strict experimental protocols. All trial data was analysed by an accredited statistician and reviewed by a technical advisory committee to determine its place within the FVI banding scale. The new Forage Value Index for Australia can be accessed at: www.dairyaustralia.com.au/FVI

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Gary says, “I’ve moved completely away from chemical sprays altogether. We’ve added red clover to our pasture mix for its deep rooting and run a pasture rotation over 30 days. One of the aims is to grow more grass all year round. We have good grass colour even in winter. We have also experienced no bloat problems with clover feed. We have had more green feed using Excel-Crop right through summer and even into February and March. The liquid fish fertiliser has been excellent in improving the quality of our pastures. Overall we are very happy with the use of Excel-Crop liquid fish fertiliser and the benefits are apparent across the farm. South Gippsland Dairy Farmer See more testimonials: www.excelcrop.com/case-studies 26

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Beware Q fever Cases of this highly infectious disease are on the rise in Australia. Q fever has been in the news lately, with an increase in reported cases in most states across Australia. There have been more cases reported in the past two years than in any year since the National Q Fever Management Program ended more than 10 years ago. So what is Q fever and why is it important? Q fever is a zoonotic disease originally recognised in Australia in the 1930s. The term ‘Q fever’ is a shortened version of ‘Query fever’, because the cause was unknown. We now know that Q fever is caused by the bacterium Coxiella burnetii, and exists worldwide. Many types of animals can be infected with C. burnetii. Sheep, goats and cattle are the main sources of infection for humans, but other animals including cats, dogs and kangaroos can be infected. It has even been detected in fur seals. The C. burnetii bacteria is highly infectious and survives in air, soil, dust and water. It can also be carried on items such as clothing, wool, hides and straw. Placental tissue and fluids from infected animals contain high numbers of C. burnetii, and this is one of the

APRIL 2017

ways it enters the environment. Clinical symptoms of Q fever in humans vary, but in Australia these symptoms include a high fever, muscle and joint pain, severe headache and fatigue. These symptoms are similar to other infections such as influenza, and as such Q fever can often be misdiagnosed. The severity of the illness varies, from showing little to no symptoms through to requiring several weeks of rest. It is also possible to develop chronic Q fever. There is also a condition known as post-Q fever fatigue syndrome, which has been known to develop in people who have suffered an acute case of Q fever. Those most at risk are people who work with meat and livestock. In addition, there have been instances where gardeners may have contracted the disease from animal droppings, including those of kangaroos. There is a vaccine available in Australia to help protect people at risk of Q fever. Those who are vaccinated may develop minor side effects include a sore arm, headache, fever, and a general feeling of being unwell. The Q fever vaccine is currently not recommended

Livestock Biosecurity Network biosecurity and extension manager Rachel Gordon.

for children under the age of 15 years. As well as utilising the available vaccine, people can reduce the risk of Q fever through: • Washing hands and arms thoroughly in soapy water after coming into contact with animals. • Minimising dust in yards, and areas where animals are housed or slaughtered. • Using protective outerwear, and removing it prior to entering the home. To bolster biosecurity on your farm, download the free FarmBiosecurity app. – Rachel Gordon Livestock Biosecurity Network’s biosecurity and extension officer

From growing tea to

milking cows A Sri Lankan family has big plans for a future in the dairy industry.

on to complete a leadership program with the Gardiner Foundation. “This opened my eyes to the dairy industry and the opportunities that were out there and pushed me to go further and dream to one day have my own farm.” Sri Lankan-born Del Delpitiya had no idea he would be involved in the dairy industry He spent six years in Cudgewa and then he when he arrived in Australia, let alone made the decision to move to Pyramid Hill. end up working towards a goal of farm During his time at Cudgewa, the family ownership. worked and saved hard and managed to He is one year into a five-year plan of amass three rental properties, which they purchasing a dairy herd on the farm of Don have sold to invest towards their planned and Meg Stewart at Pyramid Hill. dairy herd at Pyramid Hill. He is excited about the future for him, his The move to Pyramid Hill has shown wife Tham and their two boys. Mr Delpitiya a new side of farming and he is now learning about irrigation, salinity and Mr Delpitiya has come a long way from different pastures. where his Australian journey first began, detailing cars in Perth. “It’s a whole new world and keeps me getting out of bed at 4 am.” In Sri Lanka, he studied agriculture and had the lucrative job of managing a tea He is in charge of the 260 ha property and plantation. It was a life of luxury but it also the 400-cow split-calving herd. meant living away from his young family “This is a really good farm. It is innovative, it and that was something neither he nor his is moving forward and is a great farm to be wife wanted to do. on as a sharefarmer. “I came to Australia with $5000. I had a “The Stewarts know the industry very well month to find a job, a house and a car before and it is a great opportunity for me and my my family joined me,” Mr Delpitiya said. family’s future.” “I got a job as a car detailer and I convinced Mr Delpitiya is on a 50–50 the company to employ my wife. We worked share — the Stewarts provide hard and eventually started our own business the land, water and some after hours and on the weekends; it was good machinery, while he but we felt there was something missing. provides all the labour, some “We came to Australia for our children and machinery and the bills are looking over a fence in town wasn’t what we split equally. had in mind, so we began exploring the idea of returning to agriculture. “It wasn’t easy and I had over 40 job rejections. I couldn’t even get an interview in the horticulture industry, but I kept going and I never gave up.” By chance, Mr Delpitiya found a dairying job online. He contacted the farm owners Bill and Pam Simpson and, while he didn’t get that job either, he kept in touch with them. As time passed, Mr Delpitiya convinced Mr Simpson to take a chance on him and in October 2010 he arrived in Cudgewa to begin life as a dairy farmer. “I knew absolutely nothing. My manager Bill trained me up for everything and it was a tough ride learning the ropes and I could feel Sri Lankanborn Del his frustration at times.” Delpitiya is Mr Delpitiya threw himself into dairying forging a career and studied hard. He obtained his as an Australian Certificate III in Agriculture and later went dairy farmer.

“I basically run the place but I do still bounce ideas off Don as this is a new topography for me and a new feeding regime and I am still learning my way around.” He said the unimaginably hot summer, the flies and the relentless mosquitoes that even follow you into the tractor had taken some getting used to, but nevertheless, he was proud of where he had come from his humble beginnings. “I am the only Sri Lankin dairy farmer in the country amongst a handful of Asians and while I am really proud I am also sad because there should be more. “Finding labour is one of the biggest challenges we face in the industry and the Australian dairy industry provides some great opportunities. “We have come from a third world country to a first world and we have embraced the culture and lifestyle of Australia and we love it. The boys play football and we like to be involved in the community.” The Delpitiyas have worked hard since arriving in the country. They have set goals and made their own luck. Mrs Delpitiya is even pursuing a career in teaching. “We have had to adapt and adjust our goals and we cherish Bill and Pam for putting their faith in us and giving us an opportunity.”

APRIL 2017

Participants at the Mead workshop.

Digging into a

dirty topic Focusing on soil management can deliver optimum pasture and crop growth this season.

Dairy farmers across the region were treated to information on soil health as part of Murray Dairy’s Autumn Start Up and Managing Soil Success workshops. The workshops looked at optimising pasture and crop growth for the coming season through focusing on soil management while building on key learnings from the Accelerating Change project. Soil scientist Christian Bannan dug soil pits on host farms at Dederang, Stanhope, Waaia, Mead and Blighty so farmers could get a look at was happening in the soil, and what management decisions were the best moving forward. Di and Gary Bowles hosted the Mead (near Cohuna) workshop and were happy with the information delivered on the day. They chose two different paddocks on their farm for scrutiny — a sub paddock on a block they purchased only 12 months ago and a newly sown lucerne paddock. Mr Bannan was able to illustrate to the group what measures would improve productivity and what wouldn’t. Mrs Bowles said the day was educational and informative. “The workshop provided us with an opportunity to have a look at the soil profile on our farm in two different locations,” she said. “One of the plots was on recently purchased land that we had been having issues with, so 30

APRIL 2017

options available for the management and that was really worthwhile. remediation of compacted and consolidated “We could see the positive impact soil soils which have been a result of the wet management decisions we had implemented winter of 2016.” had already had on productivity and pasture growth and we are looking forward to seeing Ripping what we can do with the same paddock this Ripping is beneficial for improving soil year to make it better. structure, however, consideration must be “It was also interesting to see the difference given to the availability of organic matter or between soil structures in paddocks that the need for soil ameliorants to stabilise soil geographically weren’t that far from each chemistry. other.” Ripping is most effective when organic Mrs Bowles said there were a strong number matter with a high carbon to nitrogen ratio of farmers in attendance at the workshop. is present, or added. Organic matter is slow to breakdown and when it lodges in rip lines “It was nice to see so many farmers come it helps create an environment that promotes along and take home something from the root development. day.” Root mass increases sub-surface organic Murray Dairy regional extension officer Lisa Menhenett said common themes across matter which further assists the improvement of soil structure. the regional workshops included: Three critical aspect points to consider for • Management of compacted, effective ripping: consolidated subsoil. • Pugging, waterlogging and drainage. •Ensure the work is done when the soil is dry. • Acid soils. •Ensure there is sufficient organic material • Water-use efficiency under dry and available to fill rip lines. irrigated agriculture (topsoil depth •Crops should be sown immediately and texture, subsoil depth and texture, following ripping to prevent the rip lines soil structure, effective root zone and collapsing and exacerbating soil structure available water holding capacity). problems. “Knowing the soils on your farm can greatly assist with planning crop and pasture Water and irrigation management rotations on a seasonal basis,” Ms Menhenett The effective root zone depth and available said. water content of soil should be recognised when identifying crop or pasture water “There were a lot of discussions about

(From left) Murray Dairy regional extension officer Lisa Menhenett, dairy farmers Gary and Di Bowles and Murray Dairy extension officer Lisa Burrell.

Gary Bowles (left) and soil scientist Christian Bannan at Murray Dairy’s Managing Soil Success workshop at Mead near Cohuna.

requirements and irrigation scheduling. The potential effective root zone of soil profile is limited by depth to unfavourable or hostile subsoils. When the effective root zone and available water content are inhibited by shallow conditions, the best option is to improve the wetting and drying cycles (this in turn improves the swelling and shrinking) to promote cracks allowing for the movement of organic matter to depth. Soil ameliorants, such as lime and gypsum, can assist in the management of hostile conditions such as soil acidity or sodicity, however, the cost of remediation of hostile subsoils can be prohibitive. Moisture monitoring is an effective tool to assist with improved irrigation management and, in some situations, agronomic practices may be modified to promote greater capacity of the soil to store winter rainfall. This could include planting winter crops earlier or adjusting irrigation scheduling to ensure the soil profile is not at field capacity leading into winter. Ideally matching crop requirements to soil moisture will yield the best results from both a crop point of view and a soil point of view. A series of fact sheets have been developed, which can be found at www.murraydairy.com.au or www.acceleratingchangeproject.com.au

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Winter fair enters its fourth year Concept is going from strength to strength, with exhibitors keen to return. Before you know it July will be here, and so will the National Herd Winter Fair. Held in Bendigo on Wednesday and Thursday, July 5 and 6, the fair complements International Dairy Week by offering an opportunity for stud breeders to showcase their autumn-calved cattle, or cattle that couldn’t quite make it to dairy week in January. High Green Bolton Noni owned by J. and B. Fisher and S. and R. Joyce won the veteran cow This is the fourth year the show has run and class at last year’s winter fair. Judge Eddie Bue said for a 10-year-old cow that had had six calves, it is now recognised as one of the top two she was amazing. She is pictured with Steve Joyce. shows in the country. Organiser Claire Modra said the fair’s “We intend on coming back again this year. in the judging ring and it is fantastic,” committee was hoping for another good year. Mrs Modra said. We can actually show our cattle cheaper at Wednesday will see the junior handlers take the winter fair then we can in Sydney which “We are hoping our numbers will be back up to the ring, with junior champions for the is only three hours away from us.” around 250 again this year. The milk price Youth Show and the Red Show crowned, seems to be heading in a positive direction so Elders has taken on the sale and will host the along with Supreme Junior Exhibit. Winter Warm Up Sale on Wednesday night. hopefully things are starting to pick up and On Thursday the in-milk classes kick into Elders’ Dean Malcolm said the sale had we will gain a few more numbers compared action with Supreme Intermediate Udder, been opened up to support not only the best to last year. Red Intermediate Champion and Supreme Australian pedigrees but imported ones too. “We are well on our way with many of our Intermediate Exhibit to be crowned, “Having an Australian-only sale was a sponsors returning again for 2017 so we are followed by Supreme Senior Udder, Red fantastic initiative but we feel we can add expecting another strong prize pool.” Supreme Champion and Supreme Senior to that by introducing imported pedigrees,” Murray Polson from Oxley Vale Holstein Stud Exhibit. Mr Malcolm said. travelled 13 hours from Taree to attend the In the best interests of cow health, the “The winter fair is one of the top two shows fair for the first time last year, and he was supreme udder categories were separated last in the country and it complements dairy impressed. year and this initiative has been carried over week very well. It’s at a great time of the into 2017. “We have been watching the concept since it year and we are hoping the sale will provide started and we liked what we saw. We were Lead judge for 2017 is Gerald Coughlin another great option for people looking to made so welcome by the committee and they sell cattle.” from Trent Valley Holsteins and Jerseys in had some age groups not available in other Ontario, Canada and associate judge is Sale lots will be a mixture of black and shows that really suited us,” Mr Polson said. Nicola Paulger from Adadale Jerseys and whites, and red and whites, and sale Holsteins at Kenilworth in Queensland. He said the trip down was made even organisers are expecting a catalogue of about 40 animals. sweeter by securing two class winners. “This is the first time we have had a female

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Work on profitability Scholar says rather than searching for another way, farmers should work to make the best of the system they already have. A Nuffield Scholar has urged fellow dairy farmers to place stronger emphasis on making their production systems more profitable, as opposed to searching for a ‘silver bullet’ business solution. Paul Niven, who was awarded a scholarship in 2014, has made the recommendation following his Nuffield research, which covered the topic ‘Management Systems and Price Risk Management in Multi-site Dairy Operations’. The focus of his study was in the United States and New Zealand, but also included observation and analysis of dairy management systems in Ireland, the United Kingdom, China and India. “Within Australia, it is time to move the debate from which system is the most profitable, to how do I make my chosen system most profitable,” Mr Niven said. “However, to do this the farmer must know their farming system intimately, whether they’re operating a small family business or a large corporate business with multiple sites and tens of thousands of cows.” Mr Niven is currently the Pure Source Dairy Farm Company general manager in Qihe County, Shandong, China. Prior to this he was the dairy business manager for the Van Diemen’s Land (VDL) Company in Tasmania, overseeing 25 pasture-based dairy farms, 20 000 milking cows, 120 people and more than seven million kilograms of milk solids. Through his role at VDL, and his subsequent Nuffield studies, Mr Niven was intrigued as to how he could consolidate information

from across 25 farms to monitor in real-time what’s happening within the operation, and then adapt to fluctuating input (urea, grain) and output prices (milk). “In all agricultural commodity-based businesses, we have fluctuating input and output prices, and when those aren’t managed properly we are faced with material impacts on business profitability,” he said. “So I really wanted to know how dairy businesses in other countries manage these challenges.” According to Mr Niven, this fully integrated approach to business operations is something dairy operators in the US and NZ wove well into their management systems. “What they do exceptionally well is link the ‘cow’ data into the total farm management system. And this is not easy, particularly in a grass-based dairy system where you’re managing two systems,” he said. Tailoring this approach to Australia will require some work. “In terms of management systems, the US and New Zealand have dominant systems that work well, but aren’t easily adaptable to Australia,” Mr Niven said. “This is disappointing, but it does present an opportunity in Australia to refine some of the systems that we have and continue to close the gap.” Some of his key discoveries, from travelling to dairy businesses in New Zealand and the US, include: • Every dairy business must understand,

The Pure Source Dairy Farm Company general manager Paul Niven.

measure, monitor and manage its top three physical and financial key performance indicators (KPIs) in order to effectively manage price risk. • Consider the lead indicators for the future success of the business. Retrospective KPIs are not useful for managing future business risk. • Dairy businesses need to access professional advice and information. This can be through external support or, for a large business, bringing this service in-house. • When making business decisions to mitigate price risk, the context for the decision should be documented. This is particularly important when others in the organisation review these decisions at a later time.

Fonterra announces step-up Processor says the increase matches its forecast closing price. The construction of the multi-million dollar Mr Dedoncker said. Fonterra has announced an increase to its supplier farm gate milk price to $5.20/kg Stanhope cheese plant was on-track for “This has helped to rebalance global supply, milk solids. completion in mid-2017 and the Cobden while demand has remained firm. As a result coolroom was now ready to accommodate there has been a steady improvement in The February announcement has resulted growth in Western Star production from global dairy commodity prices and this is in the company reaching its forecast closing April. reflected in our farm gate price. price for the 2016–17 season. “The progress we’ve made on our strategy, “Our strategy continues to progress, helping Fonterra Australia managing director René coupled with improvements in the global us to rebalance our product mix into Dedoncker said this revised price reflected dairy market, has enabled us to deliver this products generating those higher returns, improvement in the global commodity which we’re able to deliver back to farmers at step-up to our farmers,” Mr Dedoncker said. markets and progress on key initiatives for the farm gate.” the Australian business. Individual suppliers’ milk prices will vary across Fonterra’s supply regions, depending The company said it had achieved strong “Production has fallen across the major on the individual farm’s milk profile, growth in its ingredients business and the exporting regions, particularly Europe Beingmate joint venture at Darnum was now regional production factors, milk quality and and New Zealand, and we’ve seen a significant decline in Australian milk supply,” up and running. farm management systems. 34

APRIL 2017

Looking for the next big thing Nominate your town to be Australia’s new Legendairy Capital. Dairy Australia is calling on people across the Murray Dairy region to nominate their Stanhope people celebrate their Legendairy win two years ago. town as the next Legendairy Capital by sharing their stories and highlighting the way their town embodies the Legendairy spirit. heart of hundreds of Australian regional nominate their town for the prestigious title communities,” Ms O’Dell said. by sharing stories about what makes their Launched in 2015, Dairy Australia’s town ‘legendairy’. Legendairy Capital program celebrates “In 2015, Stanhope was named the regional communities around the country by Legendairy Capital of the Murray Dairy One finalist from each of the eight regions highlighting how dairy farmers contribute to region and the inaugural Legendairy Capital will receive $2500 to invest in a community their town, their industry and the Australian of Australia. project and one of those towns will then go economy. on to secure the coveted title of Australia’s “Now we’re back on the road looking Legendairy Capital 2017, receiving an Dairy Australia program manager Suzi for the next capital of the Murray Dairy additional grant of $7500 to put towards O’Dell said the program recognised the region, which could also become the overall their community project. strength and resilience of hardworking Legendairy Capital of Australia for 2017.” communities and the vital role dairy farmers Nominations are open until 5 pm on April 10. People from each of Australia’s eight dairy play in building the social fabric of their For more information on the Legendairy regions — Gippsland, south-west Victoria, towns. Capital program, including details on how the Murray region, Tasmania, NSW, “Dairy farmers — and people working to nominate a town, visit: South Australia, Western Australia and the across the dairy supply chain — are at the www.legendairy.com.au/capital sub-tropical region — are encouraged to

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Infant formula drives profits Half-year result shows progress towards building a global brand based on A2 products. The A2 Milk Company has reported a $39 million after-tax profit for the first half of the financial year. The company generated about $256 million of total revenue from its domestic and export businesses. Managing director Geoff Babidge said the half-year performance reflected outstanding results from the Australia/New Zealand (ANZ) and China businesses, driven primarily by continuing strong growth in demand for a2 Platinum infant formula

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Di Bowles.

Sticking with the devil they know Hoping a change in management will see Murray Goulburn rebuild trust with its suppliers. Like most dairy farmers across the country, Di and Gary Bowles have had many nights of little sleep over the past year as they have soul-searched their future. The farmers have gone through a thousand different scenarios in their minds as they have tried to work out the best way forward for their business at Mead, near Cohuna. Throughout it all they have remained loyal suppliers to Murray Goulburn, even though they have had at least four milk companies knocking on their door chasing their milk supply. There have been times when they themselves have questioned their loyalty but, for the short-term, they have decided to remain with the Australian-owned giant. “Sometimes the devil you know is better than the devil you don’t. We have always found the field staff excellent and they don’t get enough praise, and apart from the milk price and the MSSP (Milk Supply Support Package) as suppliers we have always been treated well,” Mrs Bowles said. “I think the industry needs Murray Goulburn and I think they have a good future, but they certainly have a lot of work to do to rebuild loyalty and trust — they need to refocus on their supplier base and forget about the ASX for a while. “I think the co-op needs to stick with producing the products they do well and not 38

APRIL 2017

have at least another good five years left in worry about any new-beaut fancy products us before we think about transitioning to the for a while. Cost cutting for the business is next stage with a sharefarmer.” obviously a must so they can return every possible dollar back to their supplier base.” And they have decided to shift their focus She said the fact a new chief executive officer to what works well for them as a couple managing the business over the next few was on the way was also a good thing and years. she hoped with new management and a new direction the co-op would be able to rebuild “It is important to capitalise on low water itself. and grain prices this year and we are also focusing on rearing better calves,” “I do think the strategies and principles of Mrs Bowles said. previous management were sound, it’s just the way things were implemented and the “Keeping our cell count below 100 000 gives timing that was off — we are all well aware of us room to act if something does happen how significant that impact has been.” and we are just trying not to get too stressed by the little things that happen day to day.” At the time of the collapse the couple was in an expansion mode, having purchased The couple has plans to improve pasture a neighbouring block and considering management on the newly purchased increasing stock numbers. block and bring it into line with the other paddocks. “I think we will stay at around 270 cows and if price improves we haven’t sold any They recently hosted a soil management of our young stock. We could increase herd day in conjunction with Murray Dairy, numbers quite quickly and be in a position which Mrs Bowles said was informative and to bounce back,” Mrs Bowles said. educational and illustrated they are moving in the right direction with their current She said the fact they had no children management practices. interested in taking over the farm at the moment had made the decision-making A stand of newly sown lucerne is growing process for them in some ways a little easier. well and has given them options for both grazing and hay. “This helps us to be more flexible and takes the pressure off because we are running the “It is okay to look back at the past but we farm for ourselves and no-one else. don’t live there so it is important to keep “We aren’t ready to get out yet and I think we moving forward.”

Basin plan inquiry welcomed The socio-economic impacts of the Murray-Darling Basin Plan will be investigated. Australian Dairy Farmers has welcomed the Murray-Darling Basin Ministerial Council’s agreed terms of reference for an independent analysis of socio-economic impacts of the Murray-Darling Basin Plan. The comprehensive assessment will ensure neutral or improved socio-economic outcomes that go beyond the specific legal requirements of the basin plan for the additional 450 Gl of water above the target of 2750 gl. Australian Dairy Industry Council Water Taskforce chair Daryl Hoey attended the forum with ministers in Mildura in March where the input of stakeholders was acknowledged.

Mr Hoey said there would be serious implications for the dairy industry if any more water was removed from the collective pool (north and south), without first understanding the impact it would have to every district including South Australia, Queensland, northern NSW and Victoria. “We agree with government that the basin plan needs to protect all water uses — which is why it’s critical that we understand what the different water recovery levels mean for southern communities and the environment,” Mr Hoey said.

Agreement was also achieved on a way to secure the remaining 650 Gl of water required under the plan without any more buybacks of water. Victorian Water Minister Lisa Neville said Victoria was working with the other states and the Commonwealth to deliver an outcome which benefitted farmers, regional communities and the environment.

Australian Dairy Industry Council Water Taskforce chair Daryl Hoey, from Katunga, has welcomed a proposed report into the Murray-Darling Basin Plan.

Direct Dates

April – June 2017 April Keely Focus Farm Open Day

Tuesday, April 11

May Youth Mental Health First Aid

Murray Dairy Tactics for Tight Times: Taking Stock

Free one-on-one business assessment and support service designed to help you take stock of your situation by assisting in the collection and analysis of current financial and physical data with the aim of clarifying future farm business options. This is available to all levy paying farmers, regardless

of who they supply. Call Murray Dairy on 5833 5312. This program is supported by the Federal Government and Gardiner Foundation Other event dates and venues will be advertised via the Murray Dairy website, local media and the fortnightly eNews.

Tuesday, May 2 and 9 Tatura Community House

April to June

For information on the events above, contact Murray Dairy, by phoning 5833 5312, emailing admin@murraydairy.com.au or visiting www.murraydairy.com.au APRIL 2017