Dairy direct murray december 2016 (low res) by McPherson Media Group

PUBLICATION

MURRAY Issue 27, December 2016

Working the breeding equation » page 22

Beating the ‘black dog’ » page 24 Extracting value on a low input farm » page 28 What the factories had to say about milk price » page 32

contents

Looking back at a tough year

Looking back at a tough year �� 3 Legendairy stories for all to see �� 4

I cannot believe it is December already — what a difficult year we have had. Tough, the toughest I have encounted in my dairy career. We have had to try and manage our businesses though a dry autumn, a very wet winter/spring, contend with price re-sets and a low seasonal milk price — no wonder we question ourselves at times. topics including: precision feeding When we do stop and have a balanced and grazing systems; farm family look at the environment we operate in, businesses — managing the people it’s not all negative. factors; bringing research to the As a result of the wet winter, farm — where are we going?; advanced catchments have filled so water pasture measuring tools; flexible availability this and next season should forages; and advances in genetics. be okay; silage harvests have been My highlight was the session presented above average, albeit quality has been by the Young Dairy Network, with the reduced; and there is an abundance of theme ‘Progression of Professionals hay around. in Dairy’. Of the six professionals With input prices significantly reduced on stage, only one was born into the this year, with careful planning and industry, and the others came from management most businesses should wide and varied backgrounds to make have a more positive outlook than they a career in the dairy industry. had at the start of the financial year. The overarching message of the forum I cannot say too much regarding milk was that we all need to embrace and prices, other than to say there looks manage change in our businesses. to be some upside in international As I’ve said previously, we have had a markets. challenging time this season, but it’s In October we ran the Murray Dairy not all negative — please find time to Business Forum in Barooga, with be kind to yourselves. As we head into the theme ‘20 years back, 20 years the festive season, take time for family, forward’. It was very well attended by friends and neighbours and, if possible, all. a break from the farm is a great way to clear the head and get the batteries The service providers’ breakfast heard recharged, even if it’s only for a day! from Rural Bank managing director Alexandra Gartmann, who spoke about From all at Murray Dairy, have a safe change management and how this and enjoyable Christmas and we look affects the business environment; she forward to working with you in the later opened the morning session with new year. a similar address. –Rick Cross The committee assembled a varied Murray Dairy chairman array of presenters to address

Linking farmers to services �� 5 New boss for co-operative �� 5 People remain the heart and soul of dairy �� 6 Murray Goulburn fallout spreading �� 7 Nasty disease waiting to strike calves �� 8 Sweet reward for years of sweat and tears �� 10 Program helps farmer to take stock �� 12 Grants can help ease burden �� 13 Thinking outside the box pays dividends �� 14 Get your head in the social game �� 16 Technology for precise feeding �� 18 Looking back to move forward �� 19 Udderly marvellous spring shows �� 20 Top breeding without spending top dollar �� 22 Don’t be afraid to ask for help �� 24 Run towards your troubles, not away from them �� 25 Wet conditions do not dampen show spirit 26 Changes make farms more efficient �� 28 Dairy farming is in her genes �� 30 Processors assess outlook for milk prices �� 32 Scientific food for thought �� 34 Evaporation data now available �� 36 Raising professional standards �� 38 Direct Dates �� 39

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Editor Geoff Adams editor@countrynews.com.au

dairy news

Writers Geoff Adams, Emma Carinci, Sophie Baldwin, Rodney Woods Graphic design Brendan Cain

Cover: Greg Ault Story page 22

Advertising James MacGibbon james.macgibbon@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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Legendairy stories for all to see Documentary highlights the achievements of Australia’s dairying communities. the money was going to be used A documentary on close-knit for. It’s great to have a positive dairy communities across the story at times like this,” Dairy nation was recently screened at Australia’s program manager Suzi Stanhope, the town judged the O’Dell said. 2015 Legendairy Capital. Ms O’Dell and Stanhope dairy Created by Dairy Australia’s farmer Andrew Hipwell, who Legendairy committee, the nominated Stanhope for the documentary was made as 2015 Legendairy Capital title, part of the Legendairy Capital said it was great for the Stanhope competition that was created to promote Australia’s dairy industry, township. dairy towns and dairy farmers. “The media exposure put Stanhope on the map and Each of the eight finalists was I’m really happy with that,” awarded $2500, with national Ms O’Dell said. title winner Stanhope getting an extra $7500, which was used to “Stanhope’s now on the map build a new playground. and the documentary shows how proud we are of this town,” “Each finalist as part of their Mr Hipwell said. nomination had to request what

dairy news Linking farmers to services New centre aims to support dairy farmers through tough times. A Dairy Information and Referral Centre has opened in Numurkah. Moira Shire Council general manager Leanne Mulcahy said council, Numurkah District Health Service and Murray Dairy were working together to help link dairy farmers with a range of financial, physical and mental health and farm and business advisery service providers. “No appointment is required and we encourage our local farmers to drop in to learn more about the services, assistance and support that’s available to them. Our staff can even contact the professional service providers to arrange appointments and

referrals,” Ms Mulcahy said. “The dairy sector plays an integral role within Moira’s economy and our dairy farmers make a tremendous contribution to our communities.” “Recent floods and uncertainty about future prices have created real challenges for the sector. Our referral centre is a practical way we can make it easier for local farmers to access the range of services that are available.” The Dairy Information and Referral Centre is inside the Numurkah Visitor Information Centre at 99 Melville St (the main street). The centre’s operating hours are 10 am to 3 pm on Wednesday, Thursday and Friday, excluding public holidays. The centre can be contacted during operating hours on 5862 1733.

New boss for co-operative Industry outsider will bring a fresh perspective. Dairy Farmers Milk Cooperative has appointed Mark Kebbell as its new executive officer. He has a background in the automotive industry. The co-operative has about 350 members in Queensland, NSW, Victoria and South Australia, and has a long-term agreement with one of the biggest dairy players in Australia, Lion Dairy & Drinks. All DFMC milk supply goes to Lion. “Coming from outside dairy, Mark will look at our industry in a new way and challenge our traditional thought processes,” co-operative chairman Duncan McInnes said. “Our core purpose is to look after our farmers by providing value, security and guidance to enable them to maintain and grow their

Mark Kebbell is Dairy Farmers Milk Co-operative’s new executive officer.

dairy businesses. “Mark’s experience negotiating with big business will be invaluable in ensuring DFMC has a strong say in their future, and gets the best results for our members.” Mr Kebbell replaces longstanding executive officer Greg Griffiths.

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DECEMBER 2016

Doing Dairy

with SOPHIE BALDWIN

People remain the heart and soul of dairy Hats off to everyone who keeps plugging away through the tough times. It is pretty fair to say 2016 won’t go down as one of the best years in the dairy industry for many reasons. But one thing that never ceases to amaze me is the resilience of people who give their heart and soul to the industry. This month I have spoken to some pretty amazing farmers keen to share their stories, especially on one of the more touchy subjects that is largely swept under the carpet — depression. It takes a brave person to speak up and I was fortunate enough to talk to two dairy farmers, one from northern Victoria and one from Phillip Island. Both have spoken out in the hope that they can help someone else going through a tough time. Dairying can be an isolating profession, especially during tough times when conserving every precious dollar earned is a priority. Unfortunately, men in particular are taught to keep their feelings hidden and it is often

hard for them to admit things are getting them down, for them to admit they cry, let alone do it in a public forum and I cannot commend these two men enough. While women are certainly not immune from depression either, they are probably better at seeking help then men. People deal with things differently and while some people might take up a new hobby or interest to cope (let me just say taking up the challenge of a half ironman in your early 40s may not be the most sensible of options, but hey, it’s worked for me) it is important that there is just some activity that appeals to you, something that helps you take your mind off things. After all, many of the problems generated this season have not been the fault of the farmer but rather mismanagement on Murray Goulburn’s behalf or simple downright profit-driven goals of Fonterra’s. Which brings me to my next point — how great is the ‘Show Some#dairy love’ page on Facebook? With more than 9000 members now, the brainchild of Di Bowles and Cath Jenkins has taken off and connected dairy with the world.

It has provided dairy farmers themselves with a place to share their knowledge and pick the brain of fellow dairy farmers but perhaps more importantly, it has shown the world how much dairy farmers love and care about their industry. The pride many have in their farms, their cows, the grass they have grown or the hay and silage they have cut, is evident in the posts and it is so encouraging to see the support these have generated from others. Like I said, farming can be an isolating industry and ‘Show Some#dairy love’ has provided a place for people to connect without leaving their farms — what a great idea! While many people will be glad to see the back of 2016, it is that time of year when hopefully we can focus on the great things in our life — health, family and friends. To all of you still plugging away out there, pat yourself on the back for a job well done through a very tough season. Merry Christmas to you all and let’s hope 2017 is a year of cheap water, favourable weather and improving milk prices.

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Murray Goulburn fallout spreading Suppliers agonise over their future with the co-operative. It has been a tumultuous time for Murray Goulburn suppliers as they have ridden the ups and downs of the co-operative’s management decisions over the past si x months. Murray Goulburn dropped the milk price in May and saddled suppliers with a debt in the form of the Milk Supply Support Package. The fallout resulted in more than 250 suppliers exiting the co-op or the industry all together, many of whom were long standing loyal suppliers. In October, Murray Goulburn made the decision to suspend the Milk Supply Support Package until June 2017 in what was just the latest in a long line of management decisions that have confused and angered suppliers. The suspension of the MSSP enabled the co-op to increase the milk price by 14c/kg of milk solids but the end of season milk price was downgraded from $4.88/kg MS to $4.70. The announcement of an additional growth incentive payment of 35c/kg of butterfat and 70c/kg of protein, while welcome, is possibly out of reach for most suppliers because many have reduced herd numbers in an effort to cut costs and ride out the season. Murray Goulburn is also looking for a new managing director. John Keely from Cohuna has been supplying Murray Goulburn since the early 1990s. He said despite the co-op’s mismanagement, he had no plans of leaving in the short term. “I believe there is still a bright future in dairying, the world market is just depressed and poor management decisions made by MG have exacerbated the problem,” Mr Keely said. “I have travelled overseas a lot recently and I firmly believe it is important to have a co-op

system in Australia, it is in some ways an insurance policy for the rest of the industry. “The other companies only ever seem to pay enough just to be in front of MG so you have to question who is actually out there for the supplier and a co-op structure in theory should support its suppliers first.” While Mr Keely acknowledges the company has bumbled from one disaster to the next and left suppliers wondering what on earth is going on, he is hoping the worst is well and truly over. David and Carol Campbell from Ballendella have been extremely loyal Murray Goulburn suppliers for many years but they too have been disappointed. “It’s a bittersweet feeling,” Mr Campbell said. “I do still feel loyal to the company but the way they have handled things has been hard to swallow. “They helped us through the drought back in the mid-2000s which made all the difference to us and I am extremely grateful for that, but that was under a different regime. “I still believe there is a place for the co-op structure but if it is case between survival or not, well I can understand people changing companies. “We need a sustainable price so we can continue on in the industry and the last six months have left doubts.” Mr Campbell said the uncertainty around the future of the MSSP after the suspension period is a worry that is sitting in the back of his mind, although Mr and Mrs Campbell are about to retire and son Adam and his partner Chelsea will take over management. The company they choose to supply in the future will be largely Adam and Chelsea’s decision. DECEMBER 2016

animal health

Keith Fletcher, Rochester Veterinary Practice

Protect calves from an outbreak of pinkeye this summer.

Nasty disease waiting to strike calves Act quickly to stop pinkeye from spreading through a mob. At last the weather is warming up and the flies are out and about and now is the time we can start to expect cases of pinkeye. This is a nasty disease caused by the bacteria Moraxella bovis, which mainly affects young stock. It spreads rapidly from calf to calf via flies, dust and long pasture, for example, paspalum or barley grass. Calves that have to compete for trough space are more likely to infect each other by close contact. Signs Initially the calves will show a watery discharge from the eyes. As the condition progresses the eye becomes reddened and a small ulcer develops on the surface of the cornea. This shows up as a cloudy or opaque spot on the front of the eye, which can cover the whole eye. If untreated the ulcer becomes worse, turning a yellow colour and in severe cases the eyeball may rupture causing blindness. Control Once pinkeye starts spreading through a mob it can be very difficult to control and can affect 80 per cent of the mob, so it is best to attempt to prevent it from spreading. To do this, firstly treat all calves at this time of the year with a fly repellent (or preferably an insecticide) to keep fly numbers down. Secondly keep pastures topped to avoid long 8

DECEMBER 2016

grass and seed heads spreading the infection by transferring ocular discharge from calf to calf. Thirdly, where possible, keep dust levels to a minimum. Also ensure there is sufficient trough space to avoid bunching of calves during feeding. A vaccine is now available in Australia called Coopers Piliguard. The bacteria attach to the cornea by means of hair-like projections called pili, and the vaccine induces antibodies against these pili so preventing attachment of bacteria to the eye. Piliguard has been in use in the United States since 1990 and in New Zealand and South Africa since 2000, with apparently good results. Although there have been no field trials conducted in Australia (for ethical reasons), there is considered to be sufficient data available to support its claims of safety and efficacy. We have certainly had very good feedback from clients who have used the vaccine over the past few years. A single 2â&#x20AC;&#x2030;ml dose is given either under the skin or into the muscle between three to six weeks prior to the expected challenge (preferably September/October), however, given this season has been late there may still be time to vaccinate prior to challenge. Vaccination will reduce the incidence and severity of pinkeye but must still be

combined with the other control methods. At around $5 a dose it would be quite cost effective where moderate to high levels of pinkeye have been experienced or are expected. It is particularly useful when calves are being sent off on agistment where it is harder to handle and treat them. Treatment Once infection occurs, prompt treatment is essential for a quick recovery and to reduce the number of infective bacteria in the mob. Affected animals should be segregated to reduce the likelihood of spread and reduce the need for yarding unaffected animals with affected ones. There are a number of preparations available but in most cases we find the use of Cloxacillin (Orbenin Pinkeye Ointment) gives the best results in the early stages. This is applied to the affected eyes once every second day. The use of patches glued over the eye can speed up recovery by protecting the eye from dust, flies and sunlight. In severe cases the vet may give an injection of an antiinflammatory plus antibiotic mixture under the upper and lower eyelids. Eyes should also be checked for the presence of grass seeds stuck behind the third eyelid as these can produce similar signs to pinkeye and the damage done by them can predispose to pinkeye infection.

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Sweet reward for years of sweat and tears Cows have been a part of this Master Breeder’s life for as long as he can remember. It may have been many years in the making for retired dairy farmer Ken Allez, but this year his former stud Zella Ville was awarded Master Breeder status by Holstein Australia. To achieve Master Breeder status, individuals must breed at least 300 registered animals over a minimum of 20 years. “There has been a lot of sweat and tears gone into that award over the years, cows have been a part of my life for as long as I can remember,” Mr Allez said. Well into his 80s now, Mr Allez may no longer be actively involved on the dairy farm, now owned by John and Leah Edwards, but he still takes a keen interest in the herd. “We have had some good classification scores in our herd over the last few years and things have finally started to come together,” he said. Mr Allez has spent much of his life surrounded by his beloved bovines although it was the Jersey variety that he originally started with. “Back when I started out, black and whites had a terrible test and most people milked Jerseys. “We needed a bull one day and the only one left at the market was a Friesian so we ended up buying him. He sired some pretty good heifers and that is what started to change my way of thinking.” Mr Allez and his wife Lila moved to Leitchville in 1958 to initially sharefarm on a 121 ha dairy farm. Six years later they purchased the same property and they stayed there until they retired just down the road, a few years ago. The couple began milking 120 cows, which was a big herd at the time, in an old four double-up walk-through dairy.

They joined Holstein Australia in 1958. “We bought our first registered animal but we couldn’t afford to buy too many so we bought a lot of our cows up through the appendix system,” Mr Allez said. While Zella Ville has achieved success over the years at different country shows, it was Zella Ville Minda 3735 that has been the standout, winning three-year-old champion in the Holsteins Australia On-Farm Challenge in 2009. At the time, Mr Allez told Country News he was thrilled and excited by the win. “This win is a real achievement and I think the flash word people use these days is stoked,” he said then, adding what a well put-together cow she was. That well put-together cow went on to be the foundation for some great animals over the years. “The OFC was our one and only major award over the years and it was such a thrill to win,” Mr Allez said. He said his involvement with cows had led him to meet some great people over the years and establish many lifelong friends. “When I started there was no North West sub-branch, we used to have to travel to Tatura but we did make a lot of new friends but there is not too many of us left now though.” He also had a long history with the Cohuna Show as both an exhibitor and steward, especially in his earlier years. It is no surprise that Mr Allez found his way into the world of Holstein breeding; his

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Ken Allez in 2009 with his “well put-together” cow, threeyear-old Zella Ville Minda, an on-farm challenge winner.

father had a Friesian stud before he was born. “It was an interest that was always in the back of my mind and when HA began recruiting members way back in the 60s I decided to get involved,” he said. “I always tried to breed a medium-sized cow, with a good temperament, good feet and longevity and, of course, a good producer.” There is nothing wrong with Mr Allez’s memory either — he can remember back in the 1930s when the Rochester Herd Test Association used to travel around by horse and gig and print out lists of the best cows by age group. “The list came out in the local paper and it covered a pretty big area — there were lots of little farms back then and if you got your name in the paper it was a pretty big deal and something to be very proud of.” It seems Mr Allez’s love and pride in cows began years ago and hasn’t waned as time has passed.

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Some of the future stock waiting to come through the Wilson herd.

Andrew Wilson has found Murray Dairy’s Taking Stock program well worth participating in. He is pictured with his sons Caleb (left) and Jacob.

Program helps farmer to take stock All dairy farmers urged to take advantage of some free help in tough times.

He joined the group five years ago initially Andrew Wilson has been dairy farming for because it offered him “a free feed and seven years and, while he knows his business a bit of farming information”. Over the inside and out, participating in Murray years he feels the group has progressed to Dairy’s Taking Stock program helped clarify offer real value to its members. where his business is now and where it is going. “Murray Dairy has taken on board our ideas and have really listened to suppliers “I found the program relatively easy. I had to ensure we deliver programs and all the numbers in my head anyway — it information that we really want.” was just getting them down on paper,” Mr Wilson said. This season is panning out to be better than Mr Wilson thought it would. “The visit doesn’t cost you anything so why wouldn’t you get involved? It’s paid for by “We budgeted on a low milk price but the our farming levies so all dairy farmers should fact we haven’t had to buy any water is a take advantage of the program. bonus. The grain price appears to be heading downward and the milk price looks like “It helped me clarify on paper where I am inching up a little bit. projected to go and it did get the numbers out of my head and onto actual paper.” “I don’t want to get to excited but I do think this year is not going to be as bad as I first Mr Wilson said one of the benefits of the thought.” program was being able to see the impact of different price scenarios and how they Mr Wilson has been unable to cut any silage affected his bottom line, particularly in this this year and now won’t cut any at all, but tough season. he has had his young stock grazing at home this season, when they are normally agisted “We had the grain price put in at $330/tonne off-farm. and now it’s looking around $160, I can see how much money that will save me,” he said. He milks 160 split-calving crossbreed cows on 72 ha at Strathmerton, in a 12-a-side “I have three different plans based on double-up shed with cup removers, and different costings and incomes and they showed me what the impact of reducing cow supplies Murray Goulburn. numbers and different water and grain prices He uses around 320 Ml of water a year to would have. grow his feed base, which consists of Italian and shaftal rye-grasses. “I found Taking Stock really helpful.” Mr Wilson moved to northern Victoria to Mr Wilson is the chairman of Murray Dairy’s Numurkah Regional Network Group. farm because he believes there is greater 12

DECEMBER 2016

The 12-a-side double-up dairy.

control over his dairy enterprise then there is in South Gippsland where he was originally farming. “It is too cold and windy and I have found if I want to make a crop grow I can irrigate instead of relying on rainfall. “I am always guaranteed an autumn start and even though I might have to pay for it through purchasing temporary water, I know when the start date is going to be.” He has four children and one of these is pretty keen on farm life at this stage. “Down the track I hope we have an industry we can be confident in and while we have taken a hit I would like to see that restored in the future. “I still believe in the concept of Murray Goulburn and I would love to see it back as the number one company again, although they have a lot of work to do to restore their suppliers’ faith in their management and that will be their ongoing challenge.”

Grants can help ease burden UDV urges dairy farmers to take advantage of infrastructure funding. The UDV has encouraged dairy farmers to use the Victorian Government’s new development grants to ease some of the burden caused by the current milk price crisis. The Victorian Government has announced grants of up to $5000 for eligible farm businesses to invest in improving on-farm infrastructure. “We appreciate the efforts of the State Government in offering direct support to dairy farmers and their communities when it’s most needed,” UDV president Adam Jenkins said. “There’s still a lot of work needed to restore confidence in the dairy industry and our communities and the grants might not be a lot of money

in the long-term, but this is a welcome step in the right direction.” The development grants will remain open until June 30 next year, or until the program funds are fully allocated, and can be used for irrigation, equipment upgrades and other farm infrastructure. Mr Jenkins said the UDV had played a key role in getting the grants package across the line and praised the government for consulting farmers and other industry stakeholders to identify key areas of support. Farmers can check their eligibility for the grants by phoning Rural Finance on 1800 260 425 or by visiting: www.ruralfinance.com.au/ Industry-programs

The grant guidelines encourage applicants to base potential infrastructure improvements on current business plans: Infrastructure activities include, but are not limited to, the following : • Reticulated water systems using water troughs for stock. • Irrigation system upgrades. • Permanent repairs to fixed infrastructure (for example, irrigation pumps). • Permanent milk vat upgrades (for example, electronics). • Initiating or upgrading information and knowledge management systems (for example, software packages). • Farm development to improve efficiencies to farm production systems (for example, sensor equipment). • Fodder storages and systems (for example, silos, silage bunkers and hay sheds). • Re-fencing to better match property layout with land capability. • Addition of shelter belts and associated fencing. • Reclamation of degraded areas (for example, laneway upgrades, repairs or expansion) to deliver lasting benefits directly linked to productivity and profitability. • Feeding system upgrades (for example, feed pads or feed troughs). • Pasture improvements and renovation (for example, associated seed, fertiliser and chemical costs). • Improving manure and effluent management systems.

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The cows are housed in the shed overnight, after they have eaten their ration on the feed pad.

Thinking outside the box pays dividends Echuca farmer beats the wet winter by turning his hayshed into a cow barn. The wet winter was one of the toughest seasons on record for our region’s farmers, who have battled mud, mastitis and poor milk prices. In light of these atrocious conditions, Echuca farmer Steven Hawken was inspired to turn his hayshed into a barn to house his cows at night. “After the continual rain I was running out of places to hide the cows. They were turning paddocks of grass into mud and I thought there just had to be a better way than this,” Mr Hawken said. Fortunately he had been to Denmark and Sweden and visited some farmers who housed their cows in barns, on beds of straw. “My hayshed didn’t have much hay in it at the time and I thought I would give the idea of turning it into a barn a bit of a go.” Mr Hawken already had some portable yard panels so he bought a few more and slapped them up around the shed, filled it with straw and gave it a crack. The cows were fed silage on the feed pad and then locked in the shed overnight. Two days later he put in a trough and his herd ending up spending most of the winter in the shed. Mr Hawken estimates he spent about $17 000 on straw for the shed but 14

DECEMBER 2016

Steve Hawken converted his hayshed into a barn to reduce pasture pugging and improve cow health over the wet winter. He is pictured with daughter Charlee and son Henry.

compared to pasture damage through pugging, he reckons he has come out well and truly in front. Cow health also benefited with fewer cases of mastitis, and cleaner cows in the morning meant less work with the tedious job of

washing teats. Composting forms an integral part of management on Mr Hawken’s farm so he knew the straw would not be wasted. It would find its way back onto the paddocks via this process.

The hayshed is filled with straw for the cows to bed down on at night. A regular composter, Mr Hawken will scrape the shed out and put the waste in his compost pile.

In fact, he has been so pleased with the results “People have said to me, don’t you think it is a bit of a waste to build something like that? he is considering a permanent, purpose-built But I see it as an investment in my business. structure. He is looking at a 2200 square metre structure “We spend a lot of money on pasture and I put a lot of work into getting my soil health right to house around 260 cows. At this stage it and if I can help reduce some of that damage will be built without a wall, but the roof will when it comes in wet in the future then I be built to accommodate an automated straw think it is worth it.” dispenser — a piece of machinery that runs along a chain slowly dispensing straw, which Mr Hawken hosted a farm day to encourage is a far more economical way of putting the farmers to think outside the square and look straw in the shed then dumping a bale with at other options, plus with the pressures the tractor. of the season weighing firmly on every farmer’s shoulders, a bit of down time and “The shed relieved a heap of strain on my conversation can go a long away to relieving paddocks and my aim was to save dollars on some stress. paddock rejuvenation.

Charlee Hawken.

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Get your head in the social game Taking care of the family farm business starts around the kitchen table. The dairy farming business is a complex one that forces constant change. But among the busy everyday tasks, challenges and big decision-making, some of the most basic consultation and communication can be lost. With her extensive knowledge in business and change management, NSW DPI worker Pip Job discussed the importance of proactive family farm business management at the 2016 Murray Dairy Business Forum. “The biggest threat to Australian agriculture is the misunderstanding and mismanagement of the social factors that act as barriers to progress in family farming businesses,” Ms Job said. Ms Job was the recipient of the RIRDC Rural Women’s Award 2014 for her work in creating a community of women with the adaptive capacity to manage the challenges of rural life. Her presentation at the forum highlighted six key topics: passion alignment, business acumen, cultural capital, family communication, mental wellbeing and succession planning. “These are the things I found (to be

important) when I spoke to some of the Environmental most prominent farming families in the advocate and 2014 world across different sectors.” National Rural Woman of the Year She emphasised the importance of sound Pip Job. Credit: people management by quoting the director Loree Photography. of a New Zealand succession company, John King, saying that social factors contributed to 25 per cent of the issues on-farm. Ms Job said making everyone in the business aware of trends, changing budgets, strategy and objectives would reduce the likelihood of people making mistakes, while transparency in succession planning was vital to ensure that everyone understood one another’s long-term goals to steer the business. “Communicate it, plan for it, be vigilant in letting everyone know what your passionate about — product, finances or expectations are.” marketing. Ms Job said strong business acumen was vital in people management and required business “Passion alignment will help you be 23 per cent more productive … you need to unlock owners to have vision and purpose, financial the passion that sits in your business.” literacy, strategy and a strong decisionmaking framework. Ms Job concluded by reminding the forum that poor management, not a lack of finance, Passion was the overriding factor which was the biggest threat to a business. would affect productivity of people in a business and Ms Job said there were three “Be well-prepared — there is no excuse for things in a business that someone was bad management.”

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Technology for precise feeding Tasmanian trial delivers real-time data for managing individual animals. Precision feeding and grazing management for temperate pasture-based dairy systems was explored at the 2016 Murray Dairy Business Forum in October. The Sense-T project, being used across farms in Tasmania, was the focal point of Tasmanian Institute of Agriculture senior research officer Richard Rawnsley’s presentation. Using data from a range of sources including current weather conditions, rainfall events and past climate records, the Sense-T Pasture Predictor — a free, online tool — delivers real-time information for

Senior research officer Richard Rawnsley discussing some of the research happening at the Tasmanian Institute of Agriculture.

managing animals at an individual level as opposed to a herd level. Dr Rawnsley discussed how information was collected and harnessed to provide insightful information for farmers, helping them boost their productivity, efficiency and sustainability. “How would we feed live data into a platform and make use of it?,” he asked. The Tasmanian Institute of Agriculture worked with an IT company to make sense of the information gathered with the Sense-T Pasture Predictor. While the research was currently being undertaken in Tasmania, Dr Rawnsley said there were plans to implement it across Victoria’s dairy regions. “We will set up the parameters for Victoria and will probably look at the south-east and the south-west so we have one region for each part of Victoria up and running.” The project aims to understand behaviour of grazing animals to optimise grazing management, supplementary feeding, feed conversion efficiency and event detection approaches for the early identification of health and welfare issues. With real-time data available online, the predictor takes the guesswork out of decisions allowing farmers to manage their enterprises more effectively. Dr Rawnsley discussed another part of the Sense-T project, which uses hi-tech collars known as accelerometers or cow-based sensors to understand the balance between pasture and grain intake and other crucial behaviours such as how dairy cattle act while on heat. “We put an accelerometer on the cow and look at

Cows wearing accelerometers in the paddock. Picture: Sense-T

signatures in the data to create something quite useful.” He said the technology could assist with individualised feeding and so far, the research had obtained good results about grazing, ruminating and resting patterns and understanding why farmers saw behaviour at certain times. “Sometimes we don’t know what the cows are doing because they are out in their natural environment in the paddock so much. “That’s what this project is about — it helps us understand why we see some of those results and looks at the reasons why we see grazing at certain times.” Using their computer, farmers can access the Sense-T information and other pasture management tools including climate indices, leaf stage predictor and a nitrogen response calculator. A mobile device version of the program is currently being tested. Dr Rawnsley reminded the forum that integrating new technologies needed to be considered in the context of farming systems to avoid “bleeding edge technology” — where money is ‘bled’ for no outcome. “We need to work in a participatory environment that takes action for a farm.”

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Looking back to move forward Forum tackles the big questions of an ever-changing industry. It is often said that in order to progress into the future, you need to look back at your history. That was the focus of the 2016 Murray Dairy Business Forum, with the theme: ‘20 years back; 20 years forward’. Held at Barooga Golf Club in October, more than 200 dairy farmers and industry personnel heard guest speakers discuss change management and each one had an experience that could be related to the future on the dairy farm. Given the recent context of an uncharacteristically wet season, the inevitability of change in the dairy industry was fresh in farmers’ minds. Murray Dairy chairman Rick Cross said the theme was important, given the amount of variance he had seen in the industry in the past 20 years and also tied in with the organisation’s 20-year anniversary. “Farmers live with change on a daily basis so the theme is about using our capabilities to adapt to that change in the future,” Mr Cross said. He said anyone still on the farm now had mastered flexibility given the conditions they

had faced — including flood, drought and water price fluctuations — and he believed this year was the hardest he had experienced in his 20 years on the farm. “The change has just been constant.” The forum started bright and early with a service providers’ breakfast session, introductions and welcomes until Murray Dairy’s Accelerating Change program took centre stage. Discussion was facilitated by farmers and Murray Dairy staff involved in the three-year project, designed to assist farmers to increase efficiency and profitability on-farm through more targeted management and technology. Precision feeding and grazing management for temperate pasture-based dairy systems was explored next by senior research officer Richard Rawnsley from the Tasmanian Institute of Agriculture. Practical business tips and proactive management of family farm businesses was addressed by NSW DPI worker and recipient of the 2014 RIRDC Rural Women’s Award Pip Job before the presentations took a scientific turn with DairyBio co-director David Nation reflecting

Tongala dairy farmer Robyn Tyler, Bridge Logic Consulting’s Patten Bridge, Kyabram dairy farmer Mandy Mulcahy and Bamawm dairy farmer Ann Gardiner.

on bioscience’s contribution to the dairy industry in the past and its long-term growth potential. Technological potential rounded off dairy discussion with the ‘Flight into the Future’ session which explored advanced pasture measuring tools, flexible forages for the future and advances in genetics. Former AFL premiership coach Kevin Sheedy closed the formalities with an insightful discussion on meeting challenges in football, community and life.

DECEMBER 2016

Udderly marvellous spring shows Spring shows attracted good entries in the dairy competitions, despite the wet on-farm conditions.

The winner of the Laurie Crosbie Junior Calf Rearing Competition at the Numurkah Show was Emily Phillips, 10, of Naring, with her calf Koromo Park Nikki.

Sienna Lawless, 5, of Numurkah, handling Kelisher Laurel at the Numurkah Show.

Young people line up for the calf rearing competition at Numurkah Show.

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Top breeding without spending top dollar

A Rochester herd proves using quality bulls doesn’t have to break the bank. Greg Ault’s Holstein herd ranks in Australia’s top 10 per cent but he doesn’t use the most expensive bulls on the market. His experience proves you don’t have to pay top dollar to breed a top herd. The average Balanced Performance Index for the Holstein cows is 75 (compared to a national average of zero), placing the herd 49th in the country. Mr Ault and his wife, Joanne, farm near Rochester in northern Victoria, milking

about 400 cows; two thirds Holsteins and the rest Jerseys. To achieve a relatively flat production curve, the herd calves in three batches: six weeks each in autumn and spring and a three-week batch in November. While Mr Ault takes a strong interest in breeding cows and selecting sires, at the end of the day it’s a business decision — and a cost that has to be justified. “Apart from land, our herd is our biggest asset and our cows’ ability to turn feed into milk

Greg Ault’s herd ranks among the top in Australia for genetic merit but he doesn’t use the most expensive bulls on the market.

Farm Business Management The Farm Business Management program is currently undergoing a major re-development of their service offer. New products, programs and workshops are being made available, catering to wide range of technical levels and time commitments incrementally over the next 12 months. The first two major offerings are the recently piloted two-day programs in Using Dairybase in your business and Farm Business Fundamentals. These courses will be offered across the region in the new year so please keep an eye out for information when one is running in your area; or if you would like to express an interest as an individual or group in either of these courses, feel free to contact Lachlan Barnes on 0438 092 352 or lachlanb@murraydairy.com.au 22

DECEMBER 2016

Visit www.murraydairy.com.au

within that group he looks at their Australian results to make routine decisions about is fundamental to our profitability,” he said. drying off and breeding. And it really comes Breeding Values for protein, mastitis and “If I can breed cows that produce more milk into its own in a difficult season when we fertility. With two breeds in the herd he is from a tonne of feed I’m more likely to need to make hard decisions about reducing also mindful of stature to avoid breeding stay in business, regardless of the seasonal herd size.” conditions. But we don’t have to spend more larger Holsteins or smaller Jerseys. Next time he’s due to order semen, Mr Ault Like all dairy farmers, Mr Ault made budget on semen to achieve this, and we certainly will review the quantity of more expensive cuts in response to this season’s milk price don’t go for the most expensive bulls in the straws (proven sires and sexed semen), in the but he doesn’t expect any impact on genetic catalogue.” context of the milk price outlook. progress. Mr Ault described his approach as “a third, a “We can save money by using more young “The first thing I looked for is better third a third”. genomic or PT straws and fewer proven efficiencies, especially in growing and “A third of the straws we buy are young bulls. That has no impact on genetic gain progeny test bulls; a third are young genomic utilising feed.” because the young bulls represent the latest An early decision was made to cull more sires and a third are proven. The lower cost heavily than normal, while the chopper price genetics.” of the PT and young genomic straws offsets The decision about sexed semen is less was good. the higher cost of the proven sires.” With more than 90 per cent of the herd bred clear cut. While the upfront cost is higher, He said this approach did not involve any Mr Ault said the returns were greater, both to AI and the use of sexed semen in recent compromise in genetic gain, describing it in the short (more replacements) and longer years, Mr Ault consistently has surplus mainly as a way to avoid having too many term (genetic gain). replacements, so he culled for mastitis, eggs in the one basket. “We’ve been really happy with the results fertility and production knowing he had “I’ve got absolute confidence in the young from fresh sexed semen. We’ve contained the the capacity to build up numbers again next genomic bulls and the science behind their cost by using it over about half the maiden season if needed. breeding values. They represent the latest heifers. He said herd testing would be one of the last genetics, so if I was looking for value for “This fast tracks genetic gain by breeding things to cut from the budget. money, I’d always choose a young genomic replacements from our latest genetics and we bull over a discounted ‘proven bull from “Herd testing pays for itself on cell count can generate income by selling any surplus yesterday’.” alone, but its value goes way beyond that. replacements.” Mr Ault selects from the top BPI sires, and “With three calving batches I rely on the

Tips for controlling AI costs: • Use bulls from the Good Bulls Guide. The top 100 bulls range in price from about $10 to $85 so there are ‘good bulls’ for every budget. • Keep using AI. Herd bulls are not a cheaper option and daughters produce 52 kg less fat and protein on average. • Keep herd recording. It’s the tool to help you make better decisions. • Use enough semen. Allow about six straws of conventional semen for every replacement needed in three years’ time. • Don’t waste semen using poor technique or joining cows that aren’t suitable. Source: Australian Dairy Herd Improvement Scheme

Greg Ault selects from the top BPI sires, and within that group he looks at their Australian Breeding Values for protein, mastitis and fertility.

Occasional Counsellor Workshops Murray Dairy is again hosting these informative workshops in our region. These workshops, facilitated by a clinical and forensic psychologist, provide participants who are not employed in a counselling role, with a kit full of tools to assist in times when they are called upon to give others emotional support. The focus of the workshops is on teaching participants strategies for assisting individuals who are

sad, upset, bewildered, confused, angry or suicidal while clearly remaining in their role. The workshops cover: • the skills of the helper including the importance of empathy. • understanding professional boundaries • the difference between emotional support and counselling • simple, practical strategies for

supporting individuals who may be acutely emotionally distressed • self-care for the worker Workshop 1: Rochester Date: Wednesday 7 December

For more information contact Murray Dairy on (03) 5833 5312 or email admin@murraydairy.com.au Visit www.murraydairy.com.au

Workshop 2: Cobram Date: Friday 9 December Times: 10 am – 3 pm

DECEMBER 2016

Mental health on the farm

Don’t be afraid to ask for help Depression can be managed if you know how, advises someone who lives with it every day. Paul Kent loves dairy farming. Every morning he beats the alarm out of bed and attacks the day with an energy that a man half his age would be jealous of. He is passionate about dairying, loves his cows, loves growing grass and adores his children. He also suffers from depression and isn’t afraid to ask for help when he needs it. He has learned to look for the warning signs and he tries very hard to avoid any issues that can trigger a depressive episode. When depression first crept up on Mr Kent he had no idea what was wrong with him. At the time he was managing a Murray Goulburn store and trying to help his customers through the drought in the mid2000s. “My depression just came on me,” he said. “I woke up one morning and struggled to get out of bed. I got to the office and couldn’t stop crying — at the time I had a good job, was earning good money, I had my marriage and family. “Things were pretty good really but over the years I have since learned there is no answers as to why, all I know is it comes and goes and I am lucky enough to now be aware of the signs. “I can go along for 12 months and be absolutely fine and then it just turns up out of the blue.” Like many of us, Mr Kent has had his share of trying times — a failed marriage, children to look after, a dairy farm to run and throw in a three-year battle with lymphoma. He has certainly had his share of ups and downs.

Paul checking the farm.

But he says when you have stared death in the face, you can do either of two things. “I have a zest for life and I wake up every morning excited about getting up. You can’t live your life on ifs, buts and maybes.” Mr Kent suffered from his latest depressive episode in September, which prompted him to post a short video on showsome#dairylove. He was overwhelmed by the response as people privately messaged him. “I had over 25 inboxes from random people and it was more blokes then women, which made me feel really good. “I guess if by talking out about my depression I can help at least one person then I am happy about that. The best piece of advice I can give is don’t be proud to ask for help and head to the doctors’. “They can pick things up straight away and while it is good to talk to your mates, they might not be the best person to help, if they are telling you what you want to hear as opposed to what you actually need to hear, and there is a big difference there. “It’s also easy to turn to alcohol but that is certainly not the solution.”

Mr Kent has been home on the family dairy farm for the past seven years and while he is well aware of the impact of the milk price on the state’s farmers, he said this year had been particularly good for him. “From a farm point of view it’s never been better. The milk price has put pressure on things but production is up 10 to 15 per cent and I am milking less cows and I have never cut as much silage or had as much grass as I have had this season, so for me that wasn’t the catalyst. It was a personal issue.” To maintain his mental health, Mr Kent tries to take time away from the farm, even if it is only for a simple walk along the beach near his Woolamai farm on Phillip Island. But perhaps most importantly, if he needs help, he knows to ask for it. “Your health is important and if you are not feeling right, go see a doctor, talk to someone and ask for help. I know I did and it probably saved me.” •If you or anyone you know is in need of help, please phone Lifeline’s 24-hour crisis support and suicide prevention line on 131 114.

International Dairy Week – Tatura 15 – 19 January 2017 IDW is fast approaching. Murray Dairy will again be delivering focused extension information during the regular free seminar sessions throughout the week. Sessions will discuss: 1. Feedbase productivity, and 2. Animal health Drop by our stand during the week or call for more information. Murray Dairy (03) 5833 5312 or admin@murraydairy.com.au 24

DECEMBER 2016

Visit www.murraydairy.com.au

Run towards your troubles, not away from them Rick Cross is Murray Dairy chairman and a Bega Cheese director. Mr Cross and his fellow Murray Dairy board representatives Karen Moroney, Greg Ault, Dianne Bowles, Tony McCarthy, Chris Thomas, Daryl Poole and Andrew Mann are appealing to all dairy farmers across the region to stop and take the time to assess their situation. It has been an incredibly tough time for many in the dairy industry; people have been in shock, angry and lost all confidence and belief in the livelihood they rely on. However, there is help out there. I want to share with you my journey. I am a third generation dairy farmer; I took over my parents’ farm in early 2000 at the start of the millennium drought. By 2006 I was really questioning my ability to continue; I felt depressed and that all responsibility fell to me. It was during this period I made a personal decision to take action — for me this was talking to my family and friends and to start running. And run I did. It gave me the clarity to make firm decisions in regard to our business. Everyone needs that space to clear the mind to make good decisions. Now I am not suggesting you all go out and start running. For you, it may be fishing or taking the children to sport or even time volunteering elsewhere with a great group of people — all of these will give you space away from the routine and pressures on farm. If you need to, seek the help and the assistance of the support that is out there for us all. Have you considered any of the following support services that are available to you at this time? If not why not? Taking Stock is a free one-on-one visit with a consultant who can assess your business situation and provide you with advice (for more information on this service contact Murray Dairy).

The Rural Financial Counselling Service can assist you in accessing financial support, including applying for the Farm Household Allowance or Concessional Loans. Your GP, Lifeline or beyondblue can help if you are feeling stressed and/or depressed or you are concerned about someone else you know. Murray Dairy can get you involved in discussion groups and events, or provide you with industry information to support your decision making on-farm. As we move through the rest of the season we have to consider the good with the bad. Yes, it’s been tough financially and emotionally, however with water a lot cheaper than originally thought and an increase in the availability of feed, the outlook is starting to look positive. I urge you all to continue to plan your way forward — I cannot emphasis this enough. Communicate with your family, friends and/ or trusted advisers, and take advantage of the support that is out there. — Rick Cross

Rick Cross on his Toolamba farm

For more information about the support services available to dairy farmers, contact: • Murray Dairy: 5833 5312. • Rural Financial Counselling Service: north-east Victoria, 1300 834 775; north-west Victoria, 1300 769 489; southern NSW (02) 6452 5820. • Lifeline: 131 114. • beyondblue: 1300 224 636. • Your local GP.

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 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.

Visit www.murraydairy.com.au

Call Murray Dairy on (03) 5833 5312. This program is supported by the Australian Government and Gardiner Foundation.

DECEMBER 2016

Wet conditions do not dampen show spirit

An unusually rainy start to the spring made dayto-day farm tasks challenging for the regionâ&#x20AC;&#x2122;s dairy farmers, however, this did not stop the strong quantity and quality of entries at the 2016 Shepparton Agricultural Show dairy competitions.

Charlie Lloyd of Kyabram with Lloyd Star Montarey, one of many successes Charlie had at the Shepparton Show this year.

Pat Nicholson of Girgarre with Jugiong Leonie 6223 who won Champion Senior Cow and Interbreed Best Udder at the 2016 Shepparton Show.

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Tim and Lyndal Humphris found the automation on their rye-grass block improved their returns.

Changes make farms more efficient Program accelerates understanding of better ways to use water and grow feed. A farming philosophy of efficiency, sustainability and profitability led Tongala farmers Tim and Lyndal Humphris to take part in Murray Dairy’s innovative Accelerating Change program. “Our business is a low input system and our focus is on efficiencies and sustainability,” Mrs Humphris told the 2016 Murray Dairy Business Forum in October. “We felt that the aims of the project aligned with aims of our business.” The three-year project is designed to assist farmers to increase their home-grown feed production, efficiency of pasture management and use, and efficient use of irrigation water to reduce seasonal feed deficits. After last year’s challenging season with high water prices, Mrs Humphris said the automated irrigation installed on one of their rye-grass blocks in conjunction with improved management practices and spinner cuts, made a notable difference. “There was a direct relationship between the 28

DECEMBER 2016

“

Working with that this year and with lower water prices hopefully we will see that improvement in the bottom line for this year’s season. Mrs Humphris

”

high water prices and the cost of growing home-grown feed.” The automation coupled with the installation of moisture probes also helped improve water management in getting water on and off the paddock. “Working with that this year and with lower

water prices hopefully we will see that improvement in the bottom line for this year’s season,” Mrs Humphris said. Ideally, the Humphrises want to install automated irrigation on all four of their ryegrass blocks but it was not yet possible given the current climate and conditions, such as milk price and water prices. The Humphrises are also part of another initiative with Agriculture Victoria whereby data is collected and monitored yearly to give them a breakdown of efficiencies and inefficiencies. Adapting and modifying practices based on change was also an important lesson the Humphrises had learned through the Accelerating Change program. “It can be easy to become entrenched but you really do have to have the open perspective of what works with the business and adapt to that and apply that,” Mrs Humphris said. She said the monitoring through the project also helped them determine that the amount of feed they were using was not getting a

Making a change The value of more accurate pasture measurement was demonstrated on the Humphris partner farm this season. The data collected from Accelerating Change shows that as the Humprhises made a feeding transition through summer to increase supplementary feeding, the portion of the diet attributed to pasture through a back calculation was significantly different to the actual pasture measurements taken through the project’s monitoring and measurement component. This indicates the value of having more accurate readings from the automated pasture reader. Source: Murray Dairy Annual Report 2015–16.

Yarrawalla farmer Kelvin Matthews and Tongala farmer Lyndal Humphris are involved in Murray Dairy’s Accelerating Change program. Dehne Vinnicombe (right) is a performance innovation team member on the project.

Accumulation rates (KG DM/HA/DAY) of perennial pasture 2015–16 90 80

70 60

60 50

55 50

45 40

20 10 0

SEPT

OCT

NOV

DEC

JAN

FEB

MAR

On the Humphrises’ farm, the accumulation rate of perennial rye-grass pasture reached 80kgDM/ha/day in October 2015 but declined as the temperature rose and evapotranspiration rates increased. By December 2015, accumulation rates were at a low of 40kgDM/ha/day.

high enough return on milk production. “It gave us a breakdown of what was in the feed and energy sources. “We were able to identify that we were overfeeding the cows and we had to adjust our rations.” Mrs Humphris said information was key to navigating through the challenging dairying environment. “We require knowledge. And we also need to be tapping into those industry resources that we have and we need to tap into that beyond our wider circles too.” In a bid to achieve five to 10 per cent more efficiency on-farm, Yarrawalla farmer Kelvin Matthews decided to get involved with the program. Like the Humphrises, Mr Matthews used moisture probes to assist him irrigate his lucerne. “It shows what you can and can’t grow

out of your lucerne. It’s all about saving,” Mr Matthews said. “The more information you get, the more you can save, the more you can grow and the more efficient you can be.” Mr Matthews said the live data provided by the monitoring of the project was highly useful. “It helped with rationing and grazing rounds and water efficiencies.” Mr Matthews said embracing technology such as Automatic Pasture Readers was essential to manage change and bolster efficiency for time-poor dairy farmers. Mrs Humphris said the project highlighted the need for farmers to adapt to the current operating environment and make changes as the season progressed while still remaining profitable. She said positive operating conditions, especially a healthy milk price, would

ultimately determine the uptake of the new technology across the industry. “There will be challenges in the uptake of the technology if there is not that profit margin in the businesses. “If profit margins allow, we will continue to invest in those technologies and efficiencies.” Performance innovation team member on the project and Mitiamo dairy farmer Dehne Vinnicombe said Murray Dairy was working with leading edge farmers on the project and despite water being the limiting factor, he was working towards making his business 100 per cent self-sufficient. Proper data monitoring was the cornerstone of the project and farmers needed to look more closely at figures and act “smarter” throughout the season, Mr Vinnicombe said. “We just need to be more flexible and have an understanding. It’s a changing circuit all the time,” he said. DECEMBER 2016

Dairy farming is in her genes

Fourth generation dairy farmer Alexandra Mulcahy wants to build a career in the dairy industry.

Scholarship helps student pursue dairy industry career. the spotlight lately,” Miss Mulcahy said. In a difficult time for the dairy industry, people like Alexandra Mulcahy show just “In a good year your milk price might not how bright the future looks. be as high as it should be and in a bad year it’s lower than it should be, so Dad and his The Legendairy 20-year-old from the brother thought it would be better to build Goulburn Valley has been selected as one of our own milk factory so we could control nine Rural Finance scholarship winners for the milk price ourselves.” 2016. Miss Mulcahy impressed the selection panel with a positive attitude combined with a sophisticated view of the industry and how it sits in the world market. It’s a fulfilling career As an undergraduate scholarship recipient, that always has new Miss Mulcahy will receive $6000 per year over three years to help fund her studies challenges, with new at Marcus Oldham College in Geelong, technology and different where she is studying a Bachelor of Business Agriculture. ways of doing things. As a fourth generation dairy farmer and a There’s so many ways to member of one of Victoria’s innovative dairy families, Miss Mulcahy certainly has the expand and improve. background to make a strong impression on the industry. Alexandra Mulcahy Her parents Peter and Mandy, along with two of Peter’s brothers, started their own With 2500 ha spread over three Kyvalley milk processing factory at Kyabram near farms (as well as another 2500 ha for their sprawling Kyvalley farm operation in cropping in the Riverina), the Mulcahys can 2000. milk 2800 Friesian cows. “It started with the aim to minimise fluctuations in milk price, which has been in Taking milk from seven other local suppliers

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DECEMBER 2016

as well their own, the family’s Southern Processing milk plant is a success story on the international market as well as with Goulburn Valley dairy farmers. “Sixty-five per cent is exported to Malaysia, China and Singapore and the rest of the market is domestic,” Miss Mulcahy said. “It gives suppliers a fair bit of flexibility and it offers a flat milk price all year. It does that because it was designed by farmers who understand how it should work to benefit farmers.” The youngest of five daughters aged between 20 and 28, Miss Mulcahy will be happy to join her sister Victoria, who currently manages the family operation, or find her own path in the world. Whichever way she chooses, she will be happy as long as her career keeps her in the dairy industry. “I think the dairy industry has a long and bright future,” she said. “It’s a fulfilling career that always has new challenges, with new technology and different ways of doing things. There’s so many ways to expand and improve. “I’d encourage young people — or anyone else — to get into the dairy industry.”

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Processors assess outlook for Major processors bumped up the farm gate milk prices in October, but for varying reasons. Murray Goulburn moved to $4.83/kg, Fonterra lifted its price to $5.10/kg while Bega Cheese and Warrnambool Cheese & Butter have moved to $5/kg.

On these pages we summarise what the companies had to say about the milk price and the outlook.

BEGA CHEESE “Bega Cheese Ltd did not follow this action, rebalancing of supply and demand; we are Executive chairman Barry Irvin: as we believe that making such changes so seeing an improvement in global commodity “A price adjustment for our company and our late in the year simply passed hardship to prices with analysts predicting further farmers has occurred (as is always the case) at improvement over the next 12 to 18 months. another part of the total supply chain that the beginning of this financial year; the farm was least able to adjust at short notice. gate milk price is now more reflective of the “During the year the industry experienced “Our overall milk supply has continued to severe upheaval due to some competitors market, albeit that it is a very challenging expand, and despite unfavourable weather retrospectively decreasing milk prices to one for all dairy farmers. conditions over the summer period, the farmer producers following a drawn-out “Farm gate milk pricing around the world is company was able to increase its milk intake period of misalignment between Australian now generally below the cost of production, to 656 million litres, being a 3.8 per cent manufacturing milk price and global growth in milk volume over the prior year.” commodity prices. consequently we are beginning to see a

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FONTERRA AUSTRALIA Managing director René Dedoncker: cent increase in the GDT price “Fonterra Australia told suppliers index since July, although the in October it had increased its strong Australian dollar has average farm gate milk price offset some of the commodity to $5.10/kg of milk solids and market gains. increased its forecast closing price for the season to $5.20/kg. “Fonterra’s better position can also be attributed to: “This revised price reflected strengthening global dairy prices. • The outer shell of the new cheese facility at Stanhope “Although the global market has been built, and new remains volatile, since the equipment is moving in. beginning of the season, global • The joint venture with milk supply has continued Beingmate at Darnum, had to decline significantly while started producing nutritionals demand has remained relatively for Bellamy’s Organics. stable. • Expanded cheese capacity “We have seen positive at Wynyard and butter movement in GlobalDairyTrade coolroom capacity at Cobden. auction prices through August • The divestment of the Wagga Wagga business.” and September, with a 26 per

Interim chief executive officer David Mallinson: “Two step-ups will take Murray and will likely see further pressure from the ongoing wet Goulburn’s weighted average conditions and floods. Victoria, available financial Year 2016–17 farm gate milk price to $4.86/kg Tasmania and South Australia all saw milk production fall by of milk solids and our full-year more than 10 per cent for this forecast to an estimated $4.95/ period. kg MS. “Due to the delay in the “These step-ups follow the traditional peak milk production completion of the review of the cycle, we may see an extended Milk Supply Support Package. period of above average “Key to the recovery and production in the coming growth of your co-operative months. is continuing to pay a strong “We will continue to review competitive milk price. this FY17 farm gate milk price, “We will continue to review our particularly where the downside business from every perspective risk posed by the current to deliver further efficiencies and extremely wet conditions is cost savings. concerned. “Dairy Australia’s Situation & “In response to a global Outlook Report for October oversupply of dairy products, we stated: are committed to manufacturing Preliminary data for the season the highest possible value to August reflects a nine per cent products. We are ensuring our drop for the first two months operations reflect the domestic and international market and of 2016–17. The south-eastern tightly managing our costs.” states are most heavily affected

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Agriculture Victoria senior research scientist Pieter Badenhorst.

Scientific food for thought Bioscience holds the key to the future of profitable dairy farms.

The potential of scientific tools to help dairy farmers advance their farms’ profitability into the future was in the spotlight at the 2016 Murray Dairy Business Forum. DairyBio co-director David Nation discussed the latest five-year investment in dairy bioscience, which impacts on the genetics of cattle and pastures and provides an opportunity to advance the industry through the scale of current research and world-class facilities.

DairyBio co-director David Nation. 34

DECEMBER 2016

Dr Nation reflected on how biosciences had contributed to the dairy industry over the past 10 years and would stimulate growth over the next 10 to 20 years. “Bioscience is really an opportunity for farmers to take up now with the use of sires and improving herd fertility,” he said. Dr Nation said in 2016 bioscience was in a positive place in the dairy sector, with 40 per cent of semen sold using DNA, visual and DNA assessment, world-class facilities and having a large, trained science workforce. Nonetheless, Dr Nation said there was plenty of room for long-term improvement opportunities for farmers to use this science to breed better herds. “There’s still huge potential to make a difference on-farm with improved pastures and herds. “This science and compatibility will ultimately be a servant to the industry.” Zoetis senior sales representative Andrew Bodycoat focused on the adoption of genomic testing with CLARIFIDE, a genomic selection tool developed for Australian dairy producers, used to predict type, health and production traits in dairy heifers. He said CLARIFIDE enabled more confident selection decisions for a more profitable dairy herd by providing early information on heifer breeding values. “Imagine if

Zoetis genetics specialist Andrew Bodycoat.

you had that information on your heifers,” Mr Bodycoat said. “It allows us to manage them differently, gives us the ability to identify at a young age which heifer has a future and which heifer doesn’t and gives you that window of up to seven years in the future to determine what that animal’s capabilities are.” Agriculture Victoria senior research scientist Pieter Badenhorst outlined his work in the development of high-throughput tools and methodologies for pasture plant breeding. He said recent developments in imaging, data handling and remote sensing allowed for high-throughput screening of traits. High-throughput phenotyping was possible for yield, quality and persistence traits in perennial rye-grass Dr Badenhorst said advances in highthroughput phenomics would enable genomic selection to become a reality.

You are invited to Australia’s ...

International Dairy Week

15 to 19 January 2017, Tatura Park, Tatura, Victoria A good place to do business and a good place to socialise.

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Come for a day or more. Come to Australia’s dairy week for: • dairy farm machinery & products • seminars and workshops on the latest in innovations, animal health, genetics and much more

• dairy cattle shows and sales • farm and progeny tours • catching up with friends, plenty for the kids

Visit www.internationaldairyweek.com.au for the full program of events. Visit our facebook page.

The goal is to achieve better pasture production by getting irrigation timing right.

Evaporation data now available More information is now available to northern Victorian farmers to help plan irrigation intervals. Agriculture Victoria is now providing access to data on evapotranspiration rates at a number of sites across the north. The information from one of these sites, at Kyabram is published weekly in the Country News and is intended to assist farmers in scheduling irrigation and achieving optimal pasture production. For daily evapo-transpiration updates subscribe at: www.productivewaterservices. com/iwater What is evapotranspiration? Evapotranspiration refers to the loss of water from plants and the soil surface. Evapotranspiration depends on a number of factors including sunlight, wind, temperature and humidity. ‘Reference Evapotranspiration’ (ETo) refers to the rate of evapotranspiration from an actively growing well watered grass stand, 120 mm in height. In terms of its water use, this standard reference pasture stand provides a workable representation of good productive pastures across a farm. How to use the ETo figures Surface (“flood’) irrigators can use the “Required Surface Irrigation Interval (days)” value for their location as a guide for the 36

DECEMBER 2016

timing of the next irrigation to optimise pasture productivity. Similarly, spray irrigators can use the “Spray irrigators needed to apply (mm)” value as a guide to how much water needs to be applied in the week. The daily ETo data shown in the graphs can also be used to fine-tune irrigation scheduling. To optimise water productivity, the frequency of irrigation needs to be based on the water holding capacity of the soil. Typically in a rye-grass /clover pasture situation, 40 mm can be removed from the soil before plant stress and reduced pasture growth occurs. Assuming the soil profile has been filled (and a day or two allowed for the soil to freely drain for surface irrigation), then each days ETo can be subtracted from the 40 mm until it is close to zero, which indicates it’s time to surface irrigate again. (Typically spray irrigators will water more frequently and with lighter applications when cumulative ETo approximates 20 mm, rather than 40 mm.) Calculations also need to include rainfall figures, use ETo data in conjunction with other preferred methods of working out when to irrigate. –Agriculture Victoria.

A sample of the graph being published weekly on page two of Country News.

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Raising professional standards New agribusiness degree to start at all La Trobe University campuses in 2017. La Trobe University is launching a new degree to help boost regional economies and meet a growing demand for agribusiness professionals — and Shepparton is playing a major part. The Bachelor of Business (Agribusiness) will be taught at all Victorian La Trobe University campuses including Bendigo, Shepparton, Albury-Wodonga, Mildura and Melbourne from semester one next year. La Trobe’s pro vice-chancellor (regional) Richard Speed said a unique feature of the course was three intensive placebased subjects, held at La Trobe’s regional campuses. “Students from across the state will come together to focus on the particular skills and challenges of the local agricultural sector and talk with professionals from a range of disciplines and sectors, such as horticulture in Mildura or dairy in Shepparton,” Professor Speed said. He said the degree was a great opportunity for students to gain skills in agricultural production as well as establish strong business principles. “La Trobe has a strong tradition of preparing students for careers in regional Victoria.

Now we are expanding our course offering into the vital business of growing our agriculture sector.” The agricultural sector is one of Victoria’s biggest export earners and has been identified as one of the most promising sectors for Australia’s regional economy. La Trobe University vice-chancellor John

Dewar said demand for skilled graduates in the agriculture sector was being driven directly by regional communities. “The local communities tell us that there is a burning need for students with these qualifications,” Professor Dewar said. “The employers say they’re screaming for bright young kids to come into this industry.”

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Direct Dates December 2016 – January 2017 December 2016 Employment Basics workshop

Merrigum – Friday, December 2 An introduction to employing people correctly in the dairy industry, this workshop will demonstrate how to apply key learnings to individual dairy farm businesses to ensure that the workforce is managed successfully and reducing risk to the business by being compliant. Employment Basics workshop

Gunbower – Tuesday, December 6

January 2017

Occasional Counsellor workshop

Rochester – Wednesday, December 7 The Occasional Counsellor facilitated by clinical and forensic psychologist David Cherry is for workers who are not employed in a counselling role but are called upon to give others emotional support. The focus of the workshop is on teaching participants strategies for assisting individuals who are sad, upset, bewildered, confused, angry or suicidal while clearly remaining within their role. Occasional Counsellor workshop

Cobram – Friday, December 9 Young Dairy Network End-of-Year Celebration

Shepparton – Friday, December 9 Come along for a great night out to celebrate the end of the year with young people from around the region. Guest speaker Merv Hughes will be entertaining everyone with stories from his cricketing career and his tie to regional communities.

All Breeds Youth Camp

Tatura – Tuesday, January 3 to Saturday, January 7 This five-day camp aims to support young people as they develop their skills, plus foster a passion for the dairy industry. If you’re aged 16-20, apply today. No dairy experience is necessary. International Dairy Week

Tatura – Sunday, January 15 to Thursday, January 19 International Dairy Week has become Australia’s premier dairy event. IDW is a forum to showcase the latest developments in Australian dairy cattle, farming practices, dairy knowledge, breeding and genetics, machinery, equipment, technology, environmental management and services. IDW 2017 is the place to be for all dairy farmers, breeders, producers, companies, organisations and others operating within the dairy industry. Murray Dairy www.murraydairy.com.au

Phone: 5833 5312

Do you need to speak to dairy farmers? Dairy Direct delivers the expertise, advice and regional specific industry news farmers need to stay at the cutting edge.

Building on our weekly regional newspaper Country News, Dairy Direct now brings the same uncompromising commitment to quality journalism for farmers.

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DECEMBER 2016