Dairy Direct Murray June

A

PUBLICATION

MURRAY Issue 30, June 2017

Home-grown focus Building a farm for the next generation » page 18

Bouncing back into dairy » page 30

Custom dairy » page 24

Fonterra forecast » page 5

Ready to meet the next challenge Summit points the way to a sustainable future.

On May 10, Murray Dairy — in partnership with the Committee for Greater Shepparton — held a Dairy Summit at La Trobe University in Shepparton.

In attendance were 80 of the major stakeholders in the dairy industry along with all tiers of government and a number of organisations operating throughout the whole industry supply chain.

There was acknowledgement that the region contributes more than 28 per cent of Australia’s milk exports and that in the past five years processors have invested more than $400 million into processing plants in our region. Also acknowledged were the challenges our industry faces associated with water security, current levels of farm transition and processor rationalisation.

The challenge for us as dairy farmers is to still deliver milk in a profitable way that allows us to maintain, reinvest in or grow our businesses.

It was a pleasing opportunity to be focused strategically on the future of the dairy industry in our region. This day was the start of a process that will culminate in a regionally specific strategic plan, with a united vision for the future of dairy in the Murray region.

As season 2016–17 draws to an end, so too does a year of incredible volatility and we need to start to put in place some planning for next season. As time progresses the water,

grain and milk prices are becoming clearer for next season and we can start the budget process.

Have you thought of doing the Taking Stock program to assist you with this? Or perhaps you might like to attend a Murray Dairy Setting up your Season event being held soon which covers this exact topic.

For those people that would like to improve their skills in the area of financial management, Murray Dairy now has a range of farm business management programs available, from base level to advanced, including a forward-thinking Dairy Risk Planning program. Alternatively, have you thought about joining a discussion group or a Dairy Business Network group, to test your assumptions and learn from others?

Contact the Murray Dairy team if you would like further information on any of the above opportunities.

With 2016–17 being such a tough year, as the season slows down, if possible, take a bit of time to get away or spend time with friends and family and recharge the batteries — because we are going to be back into it shortly.

– Rick Cross Murray Dairy chairman

contents

Ready to meet the next challenge ........... 3 MG names new senior staff ..................... 4 Fonterra forecasts milk price ................... 5 Well done to the dairy survivors ............. 6 Jobs lost in factory closure ....................... 7 To treat or not to treat? ............................. 8 Still the biggest and the best ................. 10 Star heifer arrives in Canada ................. 12 Herds can be a risky business ................ 13 Dookie shines against robots ................. 14 Quality fodder delivers results .............. 16 Focusing on the future ............................ 18 Happy to be back...................................... 20 Rye-grass under the microscope ........... 22 Keeping things simple ............................ 24 Tour inspires young farmer.................... 26 Dealing with freemartin heifers ............ 28 Staying positive despite closure ............ 29 Not ready to stop milking ...................... .30 Changing environment for dairy ........... 34 Inquiry hears industry concerns .......... .36 UDV welcomes action ............................. 36 No avoiding NLIS rules............................ 38 Make your business prosper .................. 38 Direct Dates .............................................. 39

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Editor Geoff Adams editor@countrynews.com.au Writers Geoff Adams, Sophie Baldwin, Rodney Woods, Alana Christensen Graphic design Stacey Taylor, Bella Considine, Adele Dhillon Cover: Leigh Fletcher and son Oscar have an eye on dairy production and long term succession for their dairy farm.

See page 18.

Advertising Aaron Brown aaron.brown@countrynews.com.au Published by Country News PO Box 204, Shepparton, Victoria 3632 (03) 5831 2312 www.countrynews.com.au Printed by Edge Print

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dairy news MG names new senior staff Three more appointments round out executive leadership team.

Murray Goulburn Co-operative has appointed David Mallinson as its new chief financial officer, effective from June 1.

Mr Mallinson has held various senior positions since joining Murray Goulburn in 2013, including chief executive officer (interim), sales and marketing executive general manager (interim) and business operations executive general manager.

Mike Walsh has been appointed to the role of commercial director, with responsibility for sales, marketing and innovation.

Mr Walsh has extensive experience in fast-moving consumer goods, having been with SABMiller for 23 years and was chief operating officer at Carlton & United Breweries for the past three years.

Interim supplier relations

executive general manager Cameron Smith has been appointed to the role of supplier relations director on a permanent basis. Mr Smith has extensive experience in the dairy industry having held roles with Agriculture Victoria and Murray Goulburn, and for the past 15 years as a farm management consultant.

Murray Goulburn chief executive officer Ari Mervis said the additions to the executive leadership team would bring the appropriate blend of skills and experience and would be key to ensuring strong leadership for the future competitiveness of MG. “I would like to thank Mr Alan Tilley who fulfilled the CFO role on an interim basis for the past 12 months for his support and leadership and wish him the very best for the future,” Mr Mervis said.

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David Mallinson.

dairy news Fonterra forecasts new-season milk price Fonterra Australia has announced its forecast full-year farm gate milk price range for the 2017–18 season as the company tries to rebuild its relationship with its suppliers.

Twelve months on from the announcement that both Fonterra and Murray Goulburn would significantly reduce the milk price, Fonterra Australia has better news for farmers, announcing a forecast full-year range price of $5.30 to $5.70/kg of milk solids.

“Providing Fonterra’s forecast full-year price range now is aimed at giving our farmers guidance so that they can plan for next season with confidence, “ Fonterra Australia managing director René Dedoncker said.

“We’ve invested in world-class assets, improved our product mix, and exited nonstrategic businesses.

“This coupled with the rebalancing of global supply gives us the ability to pay a competitive milk price to our farmers.”

Fonterra has also announced it will pay its Australian suppliers an additional 40¢/kg MS next season, bringing its forecast fullyear milk price range to $5.70 to $6.10/ kg MS. Girgarre dairy farmer and Fonterra supplier Spencer Rendell expected the price to increase as the season went on.

“I think this is a start-off price and I think there’s good things to come, “ Mr Rendell said.

“At least the price is going in a positive direction.

“I thought we would get a price around $6.10 without the 40¢ extra. If we take the exchange rate we should be getting $5.80 now.”

In addition to the 40¢ increase, Fonterra has also said it will reimburse the interest charge for the Fonterra Australia Support Loans package that was included in this season’s milk price to all current suppliers.

“We said that we would consider Murray Goulburn’s recent announcements including the decision to forgive its Milk Supply Support Package, “ Mr Dedoncker said.

“We’ve consulted with the Bonlac Supply Company on the best way to respond to our suppliers.

“We believe this payment is the right thing to do and we’re committed to ensuring our farmers are better off by partnering with us.”

The additional payment of 40¢/kg MS will be available to all current, retired and recommencing suppliers. Fonterra’s opening price for season 2017–18 will be announced closer to the beginning of the season.

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Doing Dairy

with SOPHIE BALDWIN

Well done to the dairy survivors It’s hard to forgive the processors for the pain they have inflicted.

It seems the dairy industry has had more twists and turns then a novel lately and for those of you out there who have managed to ride each and every one of them, a big ‘well done’ to you.

The news that Murray Goulburn has ‘forgiven’ the Milk Supply Support Package has come as no surprise to many in the industry.

Fonterra as usual has been quick to follow along behind the co-operative by announcing an additional payment of 40¢/ kg to those suppliers that have stayed on, or return to supply the New Zealand-owned company.

It is heartening to hear some people have made a return to the industry and if nothing else, the mismanagement by these processors has probably given many the opportunity to have a good hard look at their businesses, identify weaknesses and implement some change.

Let’s hope the coming season is much calmer

and provides a much needed opportunity to instil some confidence and to consolidate and move forward.

Recent rain has been welcome but it has left some feeling a little uneasy that another wet winter is ahead. We all know there is money in mud, let’s just hope there is not too much mud around.

I must admit I am not looking forward to another wet and miserable winter like last year and a sea-change to a warmer climate gets more and more appealing as the years pass me by.

I recently returned from four days in Byron Bay. I competed in my third Olympic distance triathlon and while I would love to say the weather was amazing, it actually rained for three of the days, including throughout the whole triathlon.

The sea swim was okay and I managed to keep thoughts of being eaten by a Byron Bay white pointer away as I swam the 1.5 km course.

The ride, however, was a near death experience as the rain pelted down preventing me from wearing my glasses.

Obviously not being able to physically see, combined with downhill stretches, rain and enormous pot holes all culminated in one of the scariest 40 km bike riding experiences of my life.

I was extremely grateful to rack my bike and put on my running shoes even though they too were saturated and heavy as I took to the course.

The 10 km run was over and done within 57 minutes and crossing the finish line was a pretty good feeling in the end.

Another out-of-my-comfort-zone item has been ticked off my bucket list and it is time to plan my next little adventure.

And a note to any of you dairy farming triathletes out there — don’t forget to book additional baggage when you travel with your bike. That slight little oversight cost me $180 before I even left the state

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Jobs lost in factory closure Murray Goulburn says Rochester closure will strengthen the co-operative’s future.

More than 100 workers will lose their jobs following Murray Goulburn’s announcement on May 2 that it will close its Rochester factory following an asset and footprint review.

The staged closure will begin in August, with the factory closing its doors next year.

Following the announcement, Murray Goulburn chief executive officer Ari Mervis said the decision to close the Rochester factory, as well as factories at Edith Creek in Tasmania and Kiewa in north-eastern Victoria, would help ensure the strength of the company.

“These have been difficult decisions to make, however, they are necessary steps on the journey to ensure the future strength and competitiveness of Murray Goulburn,” Mr Mervis said.

“A strong MG is of fundamental importance to the Australian dairy industry and these decisions are necessary to lay the foundation for the future.”

Pressure has mounted on the company since the Rochester announcement, with workers and unions vowing to put up a fight and community members have called for the factory, which lies in the heart of town, to not be left empty.

“There is just a lot of frustration because whenever the company has been in trouble it has been these workers who have cut down their hours to accommodate the company,” National Union of Workers regional organiser Mark Schmidt said.

“And then they go and do this; it isn’t fair on the workers …

We have to fight to keep this factory here and that is what we will do.”

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animal health To treat or not to treat?

Keith Fletcher, Rochester Veterinary Practice

Don’t be too quick to grab the antibiotics when mastitis is suspected.

After the recent wet weather, no doubt many of you have seen an increase in the number of mastitis cases in your herds.

With the possibility of another wet winter looming this would be a good time to review your mastitis control strategies.

The most likely culprit in cases of environmental mastitis is Streptococcus uberis, which is found in cow faeces and will survive in the environment as long as it stays moist.

Control involves treating clinical cases and trying to prevent new cases through milking hygiene strategies such as cleaning and drying teats before cups on and post milking teat disinfection.

When faced with an outbreak of mastitis, it can be a bit of a temptation to treat any cow that looks sideways at you. So it may be that some cows are being treated unnecessarily.

Mastitis is a serious disease that is potentially fatal and we certainly cannot ignore it, however, we should have a definition of what requires treatment as a clinical case.

Countdown Downunder says approximate (conservative) costing for the average case of clinical mastitis is about $250 to $270.

The majority of this cost would arise from withheld milk and lost milk production.

So while we do want to treat cases of mastitis early to achieve the best results, we do not want to treat cows unnecessarily and have their milk withheld from the vat.

changes of heat, swelling or pain and/ or any animal that has changes in the milk (clots, watery or blood stained) that persist for more than three squirts.

Most farmers have seen cases where there Good milking hygiene can help limit mastitis cases. appear to be a few flecks in the first couple of squirts but then it clears for the third and gateways, and good feedpad management. fourth squirt. So for these cows, if the udder Dry cow treatment is another important appears normal, I would not be treating with area of mastitis control as it treats existing antibiotic but marking it to be checked at the infections and helps to prevent new next milking. It may clear up itself (40 per infections during the dry period and around cent of mastitis cases can self-cure) or it may calving. have become clinical by meeting one of the It is far better to prevent mastitis than it is above criteria. to have to treat clinical cases and often small As to which antibiotic you use, that is improvements in the dairy can have a big something you should discuss with your effect on the level of mastitis in the herd. vet, taking into account previous farm Sometimes it is necessary to have an objective history, culture results, published cure rates, ‘outside’ set of eyes to see where these changes treatment regimes, withholding times and may be required, so it can be very worthwhile costs. to have a Countdown Doiwnunder adviser So while antibiotics are an essential part present at milking time to observe teat of mastitis control, they are not always condition and milking practices to identify indicated. Paying attention to other areas, areas that can be improved. such as milking hygiene, wearing gloves, Dairy Australia also runs Cups On Cups Off milking machine function and milking courses, which are an excellent resource in routine can go a long way to reducing the training staff or yourself in all aspects of the spread of mastitis within a herd and reducing milking process relating to mastitis control. the number of new cases.

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Still the biggest and the best

Dairy industry stakeholders at the Murray Dairy strategic planning meeting.

Industry stakeholders meet to develop a strategic plan for the region.

The northern Victoria and southern Riverina area has maintained its reputation as the biggest milk producing region in Australia, even after a recent history of droughts and floods, a Shepparton seminar was told.

Dairy Australia senior analyst John Droppert said most major milk processors had invested heavily in the region, and all the high value milk products come from factories in the region.

“It’s important from a size, investment and geographic perspective, with access to major markets in Melbourne and Sydney,” Mr Droppert said.

“Internationally it’s the place that people come to. The diversity of farming systems opens their eyes. Everything from grain-fed to intensively housed systems.

Murray Dairy chair Rick Cross addresses the dairy summit.

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JUNE 2017

“It’s a result of 15 to 20 years of lessons water use efficiency are all factors that need to be considered. hard learnt in tough times. This is a region where people are used to learning things and Ms Wilson acknowledged there was a lot of putting them into practice on-farm. volatility at the moment.

“There is an openness to adaptation and “We need to somehow balance that out learning.” around water and introduction of new ways of farm businesses operating.”

Mr Droppert was speaking at a summit for dairy industry stakeholders, organised by Murray Dairy finds itself providing services Murray Dairy to help develop a strategic to a diverse industry with different operating plan for the region. models.

Murray Dairy chief executive officer Jenny Wilson said there were almost 8000 people employed in the dairy industry in the region.

“For every $1 million of dairy production, there are over six-full-time equivalent jobs For every $1 million of generated,” Ms Wilson said. dairy production, there “We must also highlight the social component in our communities. Dairy are over six-full-time farming families make up our schools, our equivalent jobs generated. sporting clubs, our local service groups.”

Asked about the challenges for dairying in Jenny Wilson view of the milk price drop and higher water prices, Ms Wilson said the environment had changed around what water was available and her hope was that no more water left the system.

“The trend has been to get bigger and “The next dry year will not be far away as it structure their business around having lots happens in cycles. Having enough water to of support, so they will bring in expertise support the industry will be a critical factor.” where they need it,” Ms Wilson said.

But management also had an impact on “To be a successful farmer, you almost need farm performance, she said. How risk is to be something like a CEO, to bring in expertise to support your business.” managed, strategic planning, forage use and

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Lightning Ridge-CMD Jedi Gigi-Imp-Etn.

Star heifer arrives in Canada Record-breaking heifer Lightning RidgeCMD Jedi Gigi-Imp-Etn, which fetched $251 000 at an International Dairy Week sale in January, has landed safely in Canada and been transferred to her new owners, Sexing Technologies.

The heifer underwent a 24-hour trip from Australia to Canada and a 30-day quarantine before arriving at her new home where she will begin IVF treatment.

Total Livestock Genetics arranged the export to Canada and export co-ordinator Michelle Williams said it was an “uneventful” export.

livestock going that way, most of our exports are to Asia or New Zealand so it’s nice to do something out of the box, a little different.”

“It all went quite smoothly … I definitely breathed a sigh of relief when she got through transit in Los Angeles and then again when she landed in Toronto,” Ms Williams said.

The six-month-old calf was bought by the Texan firm Sexing Technologies from Declan Patten and Callum Moscript from Lightning Ridge Holsteins in Gippsland, with her Genetic Total Performance Index results drawing plenty of attention.

“It’s unusual to export to Canada, not a lot of

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Boosting herds can be a risky business Beware the dangers of ‘paying’ for disease when buying new stock.

We have seen an increase in the numbers of cows leaving dairy herds in 2016–17, as a response to a rapid decline in milk price, which fortunately coincided with a high meat price.

This has provided some farms an opportunity to sell poorly productive cows, older cows, late calving cows, cows prone to mastitis or infertile cows. And for some herds, all of the above.

With some prospect of an increase in milk price and feed input costs at lower levels (for example, water), there are some farmers looking to increase cow numbers to optimise efficiencies on their farms.

This brings with it some risk. Risk is a

constant with dairy farms but there may be some simple steps to take to reduce the risk of introducing extra diseases and their associated costs and stress.

In this situation we are talking about stopping diseases that you don’t have from entering your herd. There are a number of things you may be already doing to reduce this risk such as examining animals before purchase, getting herd test figures or asking about the disease status on the vendor’s farm.

Being aware that cows can carry disease without outwardly showing any signs is really important. So some of the diseases on your farm, you have actually paid good money for. Unfortunately, I have seen a number of situations where disease has been ‘paid’ for and gone on to cause in excess of $100 000 loss on farms.

We may prefer that vendors declare significant diseases that they have on their farm, but in reality we live in a world of buyer beware. So how do we improve the checks we make when we need to increase our cow or bull numbers?

To add to what you currently do to protect your farm and cows from disease, asking your vet about what they see as the biggest risk to disease entry on your farm may be a good start. They will be aware of some of the current diseases on your farm and be able to discuss what can be done to reduce the risk.

A way to think further about this is also to ask yourself, “What are one or two diseases that I really would not want on my farm?”.

– Mark Humphris, Dairy Australia Countdown project leader

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Dookie shines against other robots International project compares data from robotic milk systems.

The University of Melbourne’s Dookie dairy farm participates in the International Automatic Milking Systems Key Performance Indicator project.

The project aims to understand what levels of milk production and robot performance are achieved by pasture-based robotic milking systems. There are 19 farms across Australia, New Zealand, Ireland and Chile that contribute data to the project.

Each month a summary of the production and robot utilisation data, similar to that

provided in the table on this page, is collated for the project. Data is quality checked, then the results are made available to the farms in the project so that farm performance can be compared with other farms.

Results over the past nine months show the Dookie dairy achieves higher milk production per cow and higher number of milkings per cow each day compared to the average of other Australian farms.

However, the robot stocking rate (milking cows/robot) at Dookie is slightly lower than

Dookie Dairy Report

*12.5 MJ ME/ kg DM, 22 per cent CP. **11.0 MJ ME/ kg DM, 12 per cent CP.

the Australian average. The milk production per robot each day at Dookie is similar to the Australian average. The somatic cell count at Dookie is lower than the industry average, indicating excellent milk quality.

The project is co-ordinated by NSW DPI. More information is available at: www.dpi.nsw.gov.au/animals-andlivestock/dairy/robotic-milking-systems/ ams-projects/kpi-project/2016–17international-ams-kpi-project

March 1, 2017

April 1, 2017

May 1, 2017

Cow numbers

115

108

122

Kg milk solids/cow/day

2.10

1.97

2.02

Kg concentrate/cow/day

7.7

7.2

6.9*

Kg fodder/cow/day

9.0

11.0

12.0**

Pasture (KgDM)/cow

3.8

0.5

1.5

Area in rotation

35.0

35.0

35.0

Average milkings/cow/day

2.6

2.8

2.4

Number of failures/day

2.5

2.0

1.5

Number of cows got/day

5

0

3

Litres/machine/day

1090

930

1025

Rumination minutes/cow/day

458

453

398

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I reckon he’s been at it himself.

More than 30 people attended the fodder workshop hosted at Tom (pictured) and Mick Acocks’ Rochester dairy farm.

Cows tuck into the farm-made fodder.

Jack Blow, Mark Emonson and Sophie Linley improved their fodder knowledge on the day.

Quality fodder delivers results High water prices drive changes to Rochester farm’s production systems.

More than 30 people turned out to Tom and invest in infrastructure and irrigation Mick Acocks’ Rochester dairy farm on May system changes to ensure efficiency within 12 to learn the secrets to their fodder process, the system, something that has afforded as part of the Australian Fodder Industry Mr Acocks control over his herd’s diet.

Association workshop series.

“With the high production cows we can’t The farm currently milks up to 850 cows really compromise too much on the and, until a few years ago, was growing parameters we need to achieve X amount of fodder on an ad hoc basis, as the toll of the litres,” he said. drought, water prices and fluctuating herd The focus is on giving the cows quality size took its toll. feed, with feed supplements such as cotton The transition from traditional grass and meal or canola seed, or other proteins, often grazing in a partial mixed ration system to mixed into the on-farm fodder of lucerne, a full mixed ration system has seen the farm hay, maize, silage, a cereal type and at times change since mid-2009, Tom Acocks told pasture or lucerne silage as well. the crowd.

“At the moment that diet costs us $6.50 per “We grow fodder for the cows and bring it cow per day; this time last year it would have to them; we milk three times a day on the been probably closer to $10 a cow a day,” high production cows. We do still graze a Mr Acocks said. percentage of the herd, but pretty much “We’re probably targeting anything north from November until the end of April we’re of 40 litres a day in that (high) production a herd lot farm,” he said. group (based off the fodder we give them).”

“That whole change in production systems It’s been a strategy that has seen the farm has realistically been driven by the price of currently producing three-quarters of its water, and nothing else. required fodder, with more than 6000 tonnes “In a traditional model we could grow a produced on-farm last year and increasing its reasonable amount of feed with the water production. we were using but over time, with the way the water market has gone, it’s forced us to look at growing more dry matter for every megalitre we get.”

The decision to refocus the farm’s fodder production process has seen the business 16

JUNE 2017

“We look at quality over price; feed is normally cheap for a reason, unless you have a year like this where there’s a lot around,” Mr Acocks said.

“We’ve picked up nearly 3000 litres in

production and that’s just feeding them better and milking (the high production cows) three times a day.”

For those looking to refocus their own fodder technique, Mr Acocks said to focus on quality as it would always fetch a greater price on the market, and to consider how to minimise wastage and invest in ensuring fodder is stored well.

Rochester dairy farmer Tom Acocks shares some insights into his fodder.

Upcoming Delivery Program Program

Description

Date/Location

Farm Business Management Program “Getting into Farm Data”

This 2 day course will provide you with the skills and knowledge to collect, organise and analyse your farm data using the dairy industry tool DairyBase.

Cobram June 19 and 26, 2017

Farm Business Management Program “Getting into Farm Business Management (FBM)”

This 3 day course will enable you to gain farm business management knowledge in the areas of compliance, financial data and budgeting management and how to efficiently monitor and report on your business performance.

Tallangatta June 13, 20 and 30, 2017

Farm Business Management Program “Dairy Farm Analysis”

A 2 day advanced course which provides participants with a detailed understanding of farm business management and the use of the dairy industry tool DairyBase.

Kyabram June 22 and 29, 2017

Regional Network Group Meetings

These group meetings enable all dairy farming families and associated dairy service sector the opportunity to contribute to identifying and prioritising future dairy research, development, extension and education needs. The meetings also provide an opportunity for people to hear about current services available to the industry.

NW RNG July 17, 2017

Cups on Cups off

Cups On Cups Off (CoCo) is a 2 day training course designed by Dairy Australia to help dairy farmers achieve best practice in milk harvesting, with an emphasis on detection, treatment and prevention of clinical mastitis.

Contact Murray Dairy to express your interest

Euthanasia Course

These workshops are for dairy managers and their staff and aim to update skills and present information on current best practice when called upon to administer routine or emergency euthanasia.

Contact Murray Dairy to express your interest

Down Cow Workshop

Nursing a down cow is challenging and stressful — it can be difficult to provide a good nursing environment, know when to call for help or decide if euthanasia is the best option. To help you make better decisions about managing down cows and improve their welfare, Murray Dairy will host half day workshops.

Contact Murray Dairy to express your interest

Setting Up Your Season

These events will provide an update on key seasonal and commodity outlooks and identify critical decision points for your business along with tools and resources available to assist you.

Early July — contact Murray Dairy for dates and locations

Situation and Outlook 2017

Hear the latest Dairy Australia Situation and Outlook covering the forecasts and implications for the industry with Dairy Industry analysts and experts.

Late June — contact Murray Dairy for dates and locations

Young Dairy Network Workshops

The Young Dairy Network (YDN) was established to meet the needs of new entrants and the younger generation of dairy farmers, employees and service providers. Workshops include topics of Lameness and Calf Rearing.

Contact Murray Dairy to express your interest

Stepping Up Stepping Back and Stepping Back

Stepping Up Stepping Back and Stepping Back — These workshops will outline options for those farmers wanting to step back on-farm including share-farming, leasing and succession options and provide information for those people wanting to move up into those positions on-farm.

Contact Murray Dairy to express your interest

Employment Basics

Employment Basics — These workshops are an introduction to employing people correctly in the dairy industry.

North East June 2017

Safety on Farms Open Days and Farm Safety Manual Workshops

Covering current requirements and answering your OHS enquiries.

Contact Murray Dairy to express your interest

Eastern Region July 18, 2017 Central RNG July 24, 2017 Riverina RNG July 25, 2017

For more information: Contact Murray Dairy on (03) 5833 5312 or admin@murraydairy.com.au

Tom Farran (left) and Leigh Fletcher discuss the benefits of the dairy upgrade.

Focusing on the future Fletchers host their first open day on their two-year Focus Farm journey.

Murray Dairy focus farmers Leigh and Sacha Fletcher hosted their first open day on their Keely (near Cohuna) dairy farm in April.

Mr Fletcher said the open day went off “really well” and he was happy with the number of people who attended.

“I think the Focus Farm concept is really good and I am sure I will get a lot out of the journey over the next two years,” he said.

“It is different and a little confronting to stand out the front of a crowd and have questions thrown at you, but I think if I have an open mind to change, I will get a lot out of the next couple of years.”

The Fletchers want their herd numbers to peak at 315 cows with a target of 565 kg/ MS/cow.

The open day’s discussion included a focus on the autumn sowing plan which this season has included 55 ha of Shogun ryegrass.

“The idea with the Shogun is to get a couple of years out of the paddocks and grow feed into the summer months,” Mr Fletcher said.

“I have secured 400 Ml of water which I will be carrying over and that gives me plenty of confidence looking toward next season.”

Other feed on the dairy platform consists of

19.5 ha of lucerne, 45 ha of annual rye-grass, 5.5 ha of tall fescue and 7 ha of cereals, which may go into lucerne this spring.

The out blocks are sown down to 51 ha of rye-grass, 26 ha lucerne, 5.5 ha tall fescue, 11 ha of perennial pasture and 20 ha of cereal/vetch and will be home for the 150 head of young stock.

“We are focusing on reducing our fodder costs and growing as much quality, homegrown food as we possibly can,” Mr Fletcher said.

“This is one of the major focuses for our business moving forward and, I think, one

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of the major keys to our survival in the future.”

Guest speaker Paul Clavin from Clavin and Rogers Veterinary Service in Cohuna spoke about the debilitating effects of crypto in calves and the benefits of a vaccination program.

Mr Fletcher has been using a vaccination program for some time in his dairy herd and can definitely see the benefits of this in the health of his newborn calves.

Murray Dairy’s Tom Farran gave attendees a general overview of the farm and spoke about the couple’s goals for the future.

“

“To achieve this figure he is looking to reduce the home-grown cost of feed, reduce grain feeding back to two tonne per cow (unless there is a clear business case to increase this figure), increase per cow production and reduce herd costs down to $170 per cow.”

We are focusing on growing as much quality home-grown food as we can.

Leigh Fletcher

”

The farm business has undertaken a lot of capital works and growth over the past four years, including a major dairy upgrade and irrigation works.

“One of the key things Mr Fletcher is concentrating on is to reduce the break even milk price to a long term average of $4.50 per kilogram of milk solids,” Mr Farran said.

Succession planning is also on the agenda and the ultimate aim is to grow the business to a point where the next generation can successfully take over.

Dairy farmers in attendance at the field day.

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Murray Dairy’s Tom Farran facilitated the discussion at the open day.

Focus farmer Leigh Fletcher and son Oscar at the first open day on their Keely farm, where home-grown fodder was a topic of discussion.

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Invergordon dairy farmers Karina and Brendan Glass have returned to the dairy industry after exiting in 2016. The former Murray Goulburn suppliers are now supplying ACM, have streamlined their business and are looking forward to their future.

Happy to be back Farmers return to dairying with a less cows and more confidence.

It has been an eventful 12 months for Invergordon’s Karina and Brendan Glass, who have returned to the dairy industry after selling their 500-cow herd last year.

The former Murray Goulburn suppliers exited the industry in 2016 after the co-operative introduced the Milk Supply Support Package in May of the same year.

Their return may be with a smaller herd, a new business plan and a new milk supply company, but they are determined and happy to be moving forward once again.

Last August, Mr and Mrs Glass felt they had no choice but to leave the industry because all they could see looming ahead of them was a mountain of stress and debt. At the time they decided to keep all their young stock on their 197 ha farm and work offfarm.

Mrs Glass told Country News at the time: “The pressure on our business and us is terrible, but we have to consider our future.

The last few weeks have been very tough and emotional because we have also had to lay off our workers. The hardest thing was selling our cows — that really hurt. We have two young children and we can’t afford to 20

JUNE 2017

work 365 days a year for nothing.”

They now consider themselves lucky because they have been able to return to the industry — supplying ACM and looking to the future.

“ACM have been fantastic to work with. They are an honest company and at the end of the day, we have a huge asset sitting in our farm that needs to be working for us,” Mr Glass said.

The nine months away from the industry has seen them return with a different mindset and a new plan for their future.

They are milking 200 cows and have plans to peak at 300 in a few years’ time.

“We sold our young stock and purchased 200 cows,” Mr Glass said.

“We have plans to gradually build up to 300 but that will be about as far as we will go.

We both think this is a sustainable number and it is something we can do together without having to employ labour.”

The 50-bail rotary has been given a complete overhaul and is now set-up as a one-man shed with cup removers, automatic teat spray, computer system and milk meters.

“The works to the dairy will pay for themselves in a few years’ time with the money we will save on labour,” Mr Glass said.

“We are selling all our gear except for our tractors, baler and feed-out cart and we are going to go back to using contractors to keep things simple, so we can concentrate on just running the farm and worrying just about ourselves.

“As tough as this has all been for us personally, we have been able to turn things from a negative to a positive and we have had plenty of time to think about what we see as the best future for us and our family and I think reducing numbers, doing the majority of the work ourselves and growing as much feed as possible will make us much more sustainable for the future — that and the fact we have confidence in our milk supply company.”

The Glasses are not bitter about Murray Goulburn’s decision to forgive the MSSP, although they do lament the loss of their dairy herd.

“I think it is a good thing that Murray Goulburn have scrapped the MSSP and it is a step in the right direction,” Mr Glass said.

Upgrades to the dairy including the addition of cup removers, automatic teat spray, computer system and milk meters have turned the 50-unit rotary into a one-man shed cows.

The ultimate goal for the Glasses is to milk 300 cows and grow all their own fodder.

“They have a long way to go to restore confidence but they are definitely on the right path.

“I have been in the dairy industry for 10 years and I am fourth generation so I am lucky to have options to allow me to return, others haven’t been so lucky. We

have lost some great people from the industry — many that will never return and that’s a real shame.

“Closing the three factories is something that has had to happen, it’s unfortunate but it is an indication of where the industry is sitting at the moment.”

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Rye-grass under the microscope The latest rye-grass research was presented at a field day about summer pastures.

The latest research on persistence of perennial rye-grass pasture under no or limited irrigation over summer was presented to a Katunga field day recently.

Three Agriculture Victoria representatives spoke about dairy forage research projects they are currently conducting at the Summer

Agriculture Victoria’s Kevin Kelly, Katunga farmer Daryl Hoey and Agriculture Victoria’s Alister Lawson and Mary-Jane Rogers.

Survival of Pasture Field Day at Daryl Hoey’s come from plant improvement and where these gains are coming from”. dairy farm.

The Murray Dairy event was attended by 22 “We are doing the trials here as northern Victorian summer temperatures are as high people. as any other place where rye-grass is grown Kevin Kelly, Alister Lawson and Mary-Jane globally,” Mr Kelly said.

Rogers from Agriculture Victoria’s Tatura “We picked two (North Mooroopna and centre spoke about perennial rye-grass Terang) extreme environments where ryegenetic gains and summer survival of grass is grown to stretch the boundaries to perennial rye-grass. look for the source of the gains and the type When talking about the genetic gains of rye-grass, Dr Lawson said the purpose of this of gains.”.

Although the project is still ongoing, project was “to define the gains that have

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Dr Lawson said many of the findings were taking shape as the project was approaching its three-year conclusion. “(On pasture consumption) we can see no cultivar that has been consistent over the last three years,” he said.

“We also found there is no difference between old and new cultivars in terms of dry matter production and there is little evidence of large gains in dry matter production.”.

Dr Rogers talked about experiments done at the Tatura site, as well as on-farm sites at Katunga and Rochester, that involved irrigated and drought-affected paddocks.

“The objective of this project is to evaluate how perennial rye-grass genotypes vary in

their ability to survive summer drought,” she said.

“The two irrigation strategies we used was full irrigation and no irrigation after heading.”

In terms of cumulative yields at the Tatura site on both irrigated and non-irrigated paddocks, Dr Rogers said after the first year the paddocks recovered immediately but lagged in years two and three, something that may have been caused by the differences in residual material.

Host farmer Daryl Hoey said he took plenty out of the field day.

“If I continue with growing perennial pastures, the three varieties that stood out in the trials, I’d continue to use them,” he said.

Images showing the differences in non-irrigated and irrigated paddocks over the three-year cycle of one of the projects.

About 20 people attended the pasture field day at Daryl Hoey's Katunga property.

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23

John Van Den Bosch bought his Lockington dairy farm in the 1980s.

He believes the dairy industry is a great one to be involved in despite the current tough times – keeping things simple and not pushing the farm have been the keys to his success.

Keeping things simple Dairying philosophy helps farmers weather the industry’s storms.

Mr Van Den Bosch said.

Lockington farmers John and Colleen Van Den Bosch’s dairying philosophy has always “We all know milk prices go up and down been to farm to suit their own property. and the weather can either be for or against us but this year it has been for us, and the It is a philosophy that has served them well season hasn’t turned out to be as bad as it since they began their dairying journey back first could have been.” in the 1980s.

Mr Van Den Bosch said he felt sorry for They are firm believers in keeping things those people who were new to the industry simple and, as a consequence, they have and hadn’t had time to consolidate — the been able to weather the storm of some of impact on them had been far more the more trying years with a little less risk significant. than others.

This season, the late start to spring irrigation, “Overall the dairy industry has been great to us. We started with nothing and have been the cheaper price of water, reduced grain able to build up our assets over the years. prices and not having to purchase hay have all helped to buffer the low milk price.

“A lot of farmers have been caught up “The weather has certainly been in our favour thinking they have to have a mixer wagon and milk 500 cows — they end up chasing which has helped us ride this year out,”

their tail, while we have always tried to keep things simple, doing what works best for us and our farm.”

Mr Van Den Bosch believes processors should be paying $7/kg for milk solids.

“I think that is a fair price for our financial investment and the many hours that we work. I think it will also create a sustainable industry and will attract investment if farmers are paid a fair price for their milk.”

The couple expects next year to be an improvement on this season, with a 100 per cent water allocation already guaranteed, taking some financial pressure off.

“We have water, hay and grain is everywhere, and analyists are banding a figure of around $6 so things are looking a bit better,”

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Mr Van Den Bosch said.

Their 180-head spring-calving herd is comprised of a third Jersey and two thirds Friesian.

The pasture base consists of summer pasture and sub-clover because it doesn’t have to be resown regularly which help with management.

They built a new 16 double-up (built for 20) dairy in 2000 and made the yard big enough to fit 250 cows, but the 10-year drought that followed put plans of expansion on hold.

This turned out to be a blessing in the end because they ended up finding a sustainable herd size that suits their farm.

“After the drought we stuck to 180 and we have found that has been a good number for us to manage,” Mr Van Den Bosch said.

“We have had employees over the years but we are leading into retirement now and are happy to do all the work ourselves.

“In a normal year we can grow all our own fodder and raise our replacements.”

They have been long-term Murray Goulburn suppliers and are content to stay with the co-operative.

“A few years ago MG was leading the pack and other company suppliers knew when we got a back-pay, they would too,” Mr Van Den Bosch said.

“The MSSP has been a disaster and hasn’t

been handled all that well, but people do have short memories and people are quick to forget all the good they have done.

“We do need a $7/kg price.”

Looking to the future, they agree the biggest threat facing the industry moving forward is water.

“The water industry is a shambles,” Mr Van Den Bosch said.

“We have speculators and stock brokers holding agriculture to ransom because they are only there to make money out of it and not help at all.

“I think they need to increase storage fees for speculators and get rid of carryover water, even though I do use it myself. I think in the end we could end up with a better allocation if it was gone.”

They are also concerned about the lack of importance placed on agriculture.

“In New Zealand agriculture is still considered a rewarding career path, here in Australia it’s not and yet it has so much going for it,” Mr Van Den Bosch said.

“You can’t even study agriculture in our schools anymore, the emphasis is all on a university-based career and it’s a tragedy really.

“The dairy industry has been good to us and it has a lot to offer, it’s a great career path and is a rewarding industry to be involved in.”

The dairy herd.

The dairy was built in 2000, before the drought hit. They had plans of milking 250 cows but they are glad they have stuck at 180.

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

Study tour inspires young farmer New Zealand trip opened up a new world of dairying for its participants.

The opportunity to travel to New Zealand as part of the Gardiner Foundation/UDV New Zealand Study Tour was too good to refuse for dairy farmer Nick Minogue.

The 23-year-old was part of the contingent that travelled across the Tasman Sea in February.

“The tour was a great opportunity to network with other farmers and look at dairying in another country,” Mr Minogue said.

“I learnt lots of things and definitely got a much broader picture of the dairy industry along the way — it was well organised and a great trip and I would recommend it to anyone considering it for next year.”

Mr Minogue said one of the things that stood out for him was the clear pathway New Zealanders have to work their way through the industry.

“People start out as farm workers, managers and then move in to a share arrangement,” he said.

“Not many dairy farmers own their own farms over there because land prices can be up to $60 000/ha in some places, but the pathway is clearly set out and quite easy to follow.

“Farms are also spotless and very tidy even though the public has a negative view of the industry environmentally.”

The itinerary covered a good cross section of the industry and participants got to look at many different systems from some of the leading farmers in the country.

“We visited farms that were based on a pure grass system right through to 24-hour-a-day robotic farms — we covered everything and got a great overview of the New Zealand industry,” Mr Minogue said.

He said another positive of the trip was 26

JUNE 2017

networking with other young Australian farmers and sharing ideas with those who farm in different regions.

“I made some great friends and it has been good to hear stories from different people in the industry.”

Mr Minogue milks 180 spring calving cows with his parents John and Ann-Maree at Katandra.

“I enjoy cows and growing green grass. I get a real sense of achievement shutting the gate on a paddock of grass I have grown myself.”

Mr Minogue may be young but he has firm plans of continuing in the industry he loves.

“I have used the holiday to inspire me and come back refreshed for the year ahead. It has been a tough year and even though we have been sheltered from some of the issues because we are Bega suppliers, I am looking forward to the new season.”

One of the areas the business is looking to focus on and improve is wintering the cows.

Mr Minogue is also considering growing fodder beet.

“I would urge anyone interested to consider a trip like this in their future. I learnt a lot and it really was a great opportunity.”

The study tour is an annual event organised by the UDV. It incorporates a Certificate IV unit of study in agriculture which is supported by the National Centre for Dairy Education and is open to participants aged between 18 and 35 who are actively involved in the dairy industry either on or off-farm.

Participants must agree to have an ongoing relationship with the UDV and Gardiner Dairy Foundation and undertake leadership roles in the industry or community upon their return.

For more information, visit: www.vff.org.au

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

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

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

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Dealing with freemartin heifers Twin bull and heifer combinations bring future problems.

When a bull calf and a heifer calf are born as twins, there is a higher than 90 per cent chance of the heifer being infertile. These heifers are known as a ‘freemartins’.

This happens when the twins’ blood supplies fuse together during early pregnancy and are shared by the calves, allowing for an exchange of cells and hormones between the two foetuses.

Sexual development in the heifer calf is inhibited by the presence of male cells and hormones from the developing bull.

The ovaries fail to develop in a fully-grown freemartin cow, and end up about the size of a grain of wheat. She fails to cycle and never becomes pregnant.

The uterus is also underdeveloped and the udder and teats are small (similar in size to the udder and teats on a steer).

The vulva and vagina appear much the same as normal, except there is often a tuft of hair on the vulva.

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

A freemartin appears like a normal heifer,

therefore you need to get a veterinarian to diagnose her as a freemartin.

There is no treatment for freemartin cows; the best strategy is to permanently identify all heifer calves born twins with a bull and assume they will be infertile.

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Staying positive despite closure Kiewa factory closure will hurt, but still hope for dairying in the north-east.

The Alpine Valleys Dairy Pathways Committee was disappointed to hear the Murray Goulburn factory in Tangambalanga (Kiewa) would be closing.

Committee chair Stuart Crosthwaite said the closure would affect communities in the area.

“There is no doubt that the impacts on families and communities will be significant,” Mr Crosthwaite said.

“The Alpine Valleys Dairy Pathways Committee will continue to work closely with our industry partners — including Murray Dairy, Dairy Australia and the councils of Alpine, Indigo, Towong and the Rural City of Wangaratta — to link the community with response programs as more information is announced.”

Murray Goulburn announced on May 2 it was closing three plants — Kiewa and Rochester in Victoria, and Edith Creek in Tasmania — affecting 250 jobs at the Kiewa and Rochester sites that will be closed in the first quarter of the 2019 financial year and the third quarter of the 2018 financial year, respectively.

Regardless of the Murray Goulburn decision and where milk is processed, the Alpine Valleys Dairy Pathways Committee believes the dairy

industry continues to have a strong future in the area.

“This is the best place in Victoria to be in dairy,” Mr Crosthwaite said.

“We have excellent soil, reliable rainfall and high quality skills within the industry. This is a blow to our communities, but it isn’t the end of dairy in the north-east.”

The committee believes workers who lose their jobs as part of the closure will have scope for more employment within the dairy industry, particularly if funding can be secured for strategic projects to support the industry to become more sustainable and profitable.

The Alpine Valleys Dairy Pathways Committee has a proposal which has been discussed with representatives of the Victorian and Federal Governments to support the industry through transition.

“Our thoughts are with the workers and their families at what is a difficult time for our communities,” Mr Crosthwaite said.

“We hope that our work to grow and support the industry will help to develop new jobs and sustain a healthy industry in the future.”

For further information on the Alpine Valleys Dairy Pathways Project, phone Stuart Crosthwaite on 0428 289 515.

The Alpine Valleys Dairy Pathways Committee will work closely with those affected by the closure of Murray Goulburn’s Kiewa factory.

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Not ready to stop

milking

After a three-year ‘retirement’ one farmer is happy to be back in the shed.

You never know what lies ahead in your life. But when Gary ‘Frog’ Spittal sold his Gunbower dairy farm to his son in 2014 he thought that was the end of his career in dairying.

However, the opportunity to lease a 145 ha dairy farm across the road was too good to refuse, and now three years later he is back doing what he loves — milking cows.

“I decided I am too young to retire, the farm was next door, I like being my own boss and now I am back; I am surprised by how much I missed dairying actually,” Mr Spittal said.

He plans to lease the farm for the next five years and then he will assess his options.

“Retirement isn’t cheap and I am working on the theory in five years’ time I will own the

cows and have another asset up my sleeve.”

Mr Spitall has plans to milk 250 autumn and spring split calving cows.

He had no trouble sourcing his new herd and purchased the majority of them locally.

His herd is a mixture of cross-breeds, Jerseys and Friesians — he is not fussed by the colour of the cows he milks.

“I paid between $1400 and $1800 and I have over 30 calves on the ground already. I will purchase additional animals as I need them over the next couple years, until my replacements start coming through.”

Mr Spittal said he would also export a few heifers and use that market as a tool for generating extra income to buy in milking cows if needed.

The new farm may need a fair bit of work done to it, but he is looking forward to the challenge.

The next couple of years will be will be spent focusing on and improving paddocks so he can achieve his goal of running a selfsufficient operation.

“I have a lot of pasture work to do. There is a lot of couch and kikuyu to spray out. I have sprayed out and resown a few paddocks but it will be an ongoing process. I have sown some sub, shaftal and rye and I will stick with annuals for a while yet and then see what happens.”

Mr Spittal has a 240 ha run-off block out the Patho Plains which he will use to cut hay and run a few steers. >> Continued on page 32

Gary Spittal has returned to the dairy industry after a three-year absence.

The Gunbower farmer is leasing the dairy farm across the road.

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JUNE 2017

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<< Continued from page 30 “I love the variety of work on a farm and I am hoping I have got back in at a good time.

I don’t think things can get too much worse and I would like to think they could only go up really.”

Mr Spitall has leased his farm dry and will be relying on the water market to purchase his irrigation requirements. He has carriedover some water this season and the current low price of temporary water gives him confidence for the approaching year.

The 24-a-side swing-over dairy has cup removers and works well. It includes a round yard with backing gate and Mr Spitall has been surprised by how well that operates (he has only ever had the traditional rectangle yard).

“It is good to be back milking and I am enjoying myself again. I still love the challenge of running a farm and I will use a bit of casual labour to have some time off when I need, which is also important.”

And when you ask him what the worst thing is about returning to dairying, he says with a laugh: “I used to get up and walk over to the dairy, now I have to get into the ute and drive across the road and it kills me”.

32

JUNE 2017

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Changing environment for dairy Traditional feedbase systems are under pressure from lower water availability.

Agronomists, service providers and researchers in feedbase came together in Moama in March for the third Accelerating Change Agronomy Network workshop.

The Agronomy Network was set up by Murray Dairy to strengthen relationships across the dairy industry, enhancing collaboration and capability in all areas of feedbase, providing participants with a range of information they can use to support dairy farmers in a changing environment.

The focus of the March workshop was to give participants a better understanding of future water availability for dairy farmers in the region, changes to feedbase and dairy cow nutrition. Bringing these topics together at the end of the workshop, attendees were asked to help identify research, development and extension priorities for what they believe are required 34

JUNE 2017

to support future feedbase systems.

Dairy Australia’s policy strategy manager Claire Miller presented the findings from several research projects on the socioeconomic impacts of the Murray-Darling Basin Plan in northern Victoria and southern NSW. Ms Miller highlighted the need for change in dairy systems to be able to respond to a changing operating environment, including changes to policy and climate, which have impacted on water availability and price, growing conditions, commodity markets and variability in the cost and availability of other business inputs.

Water buybacks have reduced the irrigation pool in the southern basin by an average of 15 per cent a year, most significantly from Victoria, which has seen a 41 per cent decrease in high reliability water deliveries

(from 2000 Gl to 1200 Gl).

As a result, temporary water costs are estimated to have increased $14 – $36/Ml in an average year and $24 – $49/Ml in a dry year.

More than 70 per cent of the dairy farmers in the Goulburn Murray Irrigation District said they owned less water than required for irrigation, relying on the temporary market to meet any gaps and leaving them exposed in dry years. Of those farmers, 26 per cent said temporary water prices in excess of $150/Ml were not viable for their business, and 56 per cent indicated the same for prices above $200/Ml. The service providers in attendance said as a result of these conditions, they were seeing varied changes to feedbase on dairy farms, some seasonal and others more permanent.

The service providers said the extent of

Project needs participants Murray Dairy’s Accelerating Change project is working to address gaps in research, development and extension about future feedbase systems.

Murray Dairy is seeking case study farms for the Flexible Feeding Systems project.

If you’re looking to make a shift

in your feedbase to reduce your exposure to variable water prices, transitioning from a perennial pasture-based system to one that includes a more complex mix of forage types, visit the Murray Dairy website at www.murraydairy.com.au or phone Amy Fay at Murray Dairy on 5824 5535.

High Reliability Water Share at present

%

0 ML

4.2

1-50 ML

11.1

51-100 ML

5.1

101-200 ML

10.3

201-500 ML

36.8

501-1000 ML

22.2

More than 1000 ML

10.3

Surveys from the Goulburn Broken’s project Regional Irrigated Land and Water Use Mapping in the GMID report show the ownership of high reliability water shrare and whether dairy farmers believe they have sufficient water entitlement.

these changes varied significantly between farms, but thought they were influenced considerably by water ownership and equity, stage of business development and subregion.

They said farmers across the region were increasingly using mixes of grazed and conserved feed in partial and total mixed ration systems, not only to supplement but, in some cases, to substitute for grazed fodder.

On a seasonal basis, the move to partial mixed ration and total mixed ration systems seems to be driven by temporary water price which, in a summer like the one experienced in 2015–16 where average temporary water price exceeded $250/Ml (which more than 80 per cent of dairy farmers consider unviable), can lift the cost of production of grazed pasture beyond the price of bought-in or conserved feed.

I have the amount of water entitlement to irrigate my property that I require

%

Disagree

73.5

Undecided

5.3

Agree

21.2

Service providers are seeing farmers across the region moving away from perennial pasture-dominant systems to those that use annual forages, more summer active species, legumes, cereals and crops in an effort to produce more feed with less irrigation water.

There was mixed feeling about farmers’ willingness and capability to change their feedbase systems, and whether changes were short-term coping mechanisms or longer term strategic decisions. As expressed by the agronomists, ‘it is hard to set goals when the goal posts are moving’.

Research presented by Ms Miller showed 64 per cent of dairy farmers in 2015–16 said they were disinclined to change their practices due to ‘uncertainty of water allocation’.

Agronomists said they knew of farmers who,

as a result of the season and market variation in the past 12 months, would move away from perennial pasture entirely, but others who would revert to a perennial pasturedominant system with low water prices forecast for the next season.

This discussion brought up questions about the way forward for feedbase and investment for changing systems.

While some farmers are looking at investing in land, others are looking at investing in infrastructure or high-reliability water entitlements. Others, the agronomists felt, are financially restricted in terms of their ability to make any significant investment at the moment, making them vulnerable to increases to water price or other commodities in the near future.

–By Amy Fay and Harriet Bawden Murray Dairy JUNE 2017

35

Inquiry hears industry concerns The Senate inquiry into the dairy industry has delayed finalising its report until June 29. The committee was initially due to deliver its report in March, but extensions were granted to May and then June. The Senate committee sat for one day in Shepparton. Below are some of the remarks made by witnesses to the Senate inquiry.

Bega Cheese managing director Barry Irvin: “I absolutely recognise that one of my own suppliers is up here saying that he is losing money this year. It breaks my heart to hear that, but, of course, I know it to be true, and I know it to be true in circumstances where the market is just not returning a cost-of-production figure for suppliers. We do have some optimism looking forward as the market inevitably turns and changes again, as it almost always does. The downturn that we have experienced in this industry in the last three years is the longest I have ever experienced. Therefore, it needed careful management, and we have looked to do that.”

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

UDV president Adam Jenkins: “There is nothing worse than taking phone calls on a Sunday night or a Monday morning with people crying and saying, ‘My milk price has been dropped to $1.91 and this is going to really put us to the wall’, particularly when they are a generational farmer that has just handed over the reins to a younger generation coming through. That is where I get back to my leading statement: it is up to all of us to make sure we put a stop to what happened last year so that does not happen again and we can move forward.

Australian Dairy Farmers president John McQueen: “There have been some collective bargaining groups that have formed since then that have been more successful than others. I think it is fair to say that, in the majority of cases, companies do not want to work with collective bargaining groups. There are still some collective bargaining groups that operate. Many of those are operating on the basis of supplying a specialty-type branded product to a supermarket, for example. There have been a few examples where they have been extremely successful.”

UDV welcomes action against MG chiefs UDV pleased ‘those responsible for the milk crisis are being held to account’.

The UDV has welcomed the Australian Competition and Consumer Commission decision to launch legal proceedings in the Federal Court against former Murray Goulburn chief executive officer Gary Helou and chief financial officer Brad Hingle for their alleged roles in last year’s milk crisis.

“It’s been a tough 12 months for our dairy farmers but we’re pleased to finally have a resolution that those responsible for the milk crisis are being held to account,” UDV president Adam Jenkins said.

36

JUNE 2017

“We’ve been very strong from day one of the dairy crisis to ensure our farmers are not bearing the risk for management decisions made up the supply chain.”

seeking declarations, pecuniary penalties, disqualification orders and costs against the two executives.

The competition watchdog identified a lack of transparency in price notifications as its reason for launching legal proceedings.

“We’re pleased the ACCC has recognised that seeking a pecuniary penalty will only go back on the same farmers who were affected by the price cuts,” Mr Jenkins said.

But the ACCC won’t seek a pecuniary penalty against Murray Goulburn, saying any financial penalty “could directly impact on the affected farmer”, instead

“But accountability starts at the top and it’s a relief to see the ACCC holding the people in charge to account for the anguish the industry has felt over the past year.”

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No avoiding NLIS rules Bobby calves going for beef rearing must have NLIS tags before they leave home.

Producers looking to take advantage of the buyers must record the movement of cattle onto their property by updating the NLIS booming beef market are being warned their database.” obligations under the National Livestock Identification System have not changed.

The NLIS is an Australia-wide system for Agriculture Victoria district veterinary officer identifying and tracing cattle. It is a legal obligation that the unique identification for Hannah Delahunty said the autumn season every animal, and the Property Identification had been great for cattle farmers in Victoria Codes of the seller and buyer, must be so more bobby calves than usual were recorded within seven days of the movement heading off to be reared. of animals.

“Many bobby calves which would normally Dr Delahunty said NLIS tags were not go to the abattoirs, are instead being sold to ownership tags, they were an electronic grow into beef,” Dr Delahunty said. device that facilitated whole-of-life tracing of “So it’s important to remind people what they animals to help respond to disease outbreaks need to do when selling their cattle. or food safety issues, which are “important “All cattle, regardless of age, and wherever to all our livelihoods given the value of our they are sent, must be identified with an exports”.

NLIS tag prior to dispatch from the property “Collecting and registering movement of birth, and that tag stays with the animal information is easy. It can be done using a for life. tag reading wand and computer connected “Cutting out NLIS tags and replacing to the internet. You’ll also need an NLIS database account.” them with your own is illegal. All private

There are now smartphone apps that make use of new technology like bluetoothequipped wands, so the transfer can be done simpler, quicker and easier wherever there is mobile or wi-fi reception.

If the bobby calf is purchased through the saleyards, the saleyard operator will do the transfers for you.

If the purchase is arranged directly and brokered by a registered livestock agent then the agent has until close of business the next day after the cattle are sold to do the transfer for you.

Agriculture Victoria staff are available to help with information on the NLIS and identification requirements.

For more information, contact animal health staff at Agriculture Victoria offices, or the NLIS Helpline on 1800 678 779 during business hours or visit: http://agriculture.vic.gov.au/

Make your business prosper Courses will build management and planning skills.

Murray Dairy has identified farm business management and planning as valuable areas to get right to ensure your business prospers.

Farmers are very good at producing more milk and fodder or reducing costs in tight times. However, good planning and business management practices can help determine when the time is right for your business to take opportunities and to find your wealth and work sweet spot.

To work out if more is actually worth it, or if a risk is worth the reward, requires good knowledge of your own business 38

JUNE 2017

performance, position and direction.

To provide dairy farmers in this region the opportunity to hone these skills, Murray Dairy has a series of courses available.

At a fundamental level, ‘Getting into Farm Data’ takes participants through recording and interpreting physical data.

‘Getting into Farm Business Management’ explores financial data management, legal requirements and understanding of physical and financial performance.

At an intermediate level, ‘Getting into Farm

Business Analysis’ begins to take participants through making decisions, identifying risks/ opportunities and setting direction through financial records and comparative analysis.

Murray Dairy is also in the final stages of developing a risk planning course that helps participants plan their business in the medium to long term,accounting for business, personal and external circumstances.

Phone Murray Dairy on 5833 5312 for more information.

Direct Dates

June– July 2017 June Getting into Farm Business Management (day three)

Monday, June 5 Echuca Getting into Farm Business Management (day three)

Feeding your future – Rex James has got it in the bag

Tuesday, June 6 Numurkah Getting into Farm Business Management (day one)

Tuesday, June 13 Tallangatta Getting into Farm Data (Day 1)

Monday, June 19 Cobram Getting into Farm Business Management (day two)

Tuesday, June 20 Tallangatta Dairy Farm Business Analysis (day 1)

Thursday, June 22 Kyabram Getting into Farm Data (day 2)

Monday, June 26 Cobram Dairy Farm Business Analysis (day 2)

Thursday, June 29 Kyabram Getting into Farm Business Management (day three)

Friday, June 30 Tallangatta

July North West Regional Network Group Meeting

Monday, July 17 Cohuna Eastern Regional Network Group Meeting

Tuesday July 18 Numurkah Central Network Group Meeting

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Monday, July 24 Kyabram Riverina Network Group Meeting

Tuesday July 25 Finley For information on the events above, contact Murray Dairy by phoning 5833 5312, emailing admin@murraydairy.com.au or visiting www.murraydairy.com.au Event dates and venues are also advertised via the Murray Dairy website, local media and the fortnightly eNews.

Other resources: NCDE: www.ncdeaGOTAFE.vic.edu.au or phone: 1300 468 233.

Agriculture Victoria: www.agriculture.vic.gov.au or

www.jamesstockfeed.com.au info@jamesstockfeed.com.au 1 Murray Valley Hwy, Nathalia Ph: 03 5866 2771 Vic 3638

phone: 136 186.

JUNE 2017

39