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

Country News PUBLICATION

MURRAY Issue 24, June 2016

Cows are king for Hannah » page 20

Price cuts push farmers to the edge » page 12 Fresh milk to China » page 16 Pin-up girl » page 39

contents

Tight times need new tactics..................................... 4 Help is out there.......................................................... 4 Volume increase is slowing........................................ 5 Looking for sunshine behind the clouds.................. 6 New market opens its doors...................................... 7 Farmers protest milk price cuts................................ 8 Calving induction — where are we now?............... 10 Farmers pushed to breaking point.......................... 12

Challenges are many

Struggling to find answers....................................... 13 Get the facts and fight back..................................... 14 Family business goes far beyond the farm gate.... 16 Delivering fresh milk to China’s front door........... 18 Milk fat losses can be put right............................... 19

A dry season combined with price cuts raise questions about dairy’s future.

New district vet loves dairy cows............................ 20

Other activities available to you The recent announcements are workshops and on-farm days of a step-down in milk price that are focused on business could not have come at a worse analysis and scenario planning, time for our industry, with feed and water budgeting and farmers already cash-strapped providing strategies relevant to as a result of a tough dry season. farmers making key decisions on These announcements have their farm. challenged all milk producers and raised questions about their It’s not all negative. It has rained, continuation in the industry. so we need to make a plan and work our way through it. As time “What do I do now, and how goes by, more aspects of that do I do it?” is a question many plan will evolve and we can then might ask. My answer is to take adjust that plan as information the time to have a rational think about it; do not react emotionally. comes to hand. We need to tackle the issues one at a time, take I know this is hard, because small steps, and the outcome will our lives revolve around our become clearer. businesses. Remember, if you need assistance Murray Dairy is rolling out its check out our website Tactics for Tight Times program. www.murraydairy.com.au This includes a free one-to-one or phone the office on business assessment and support 5833 5312. service to help you to determine Stay positive. where your business is financially — Rick Cross positioned. This can help clarify Murray Dairy chairman your future farming options.

Celebrating dairy’s future......................................... 26

Take stock of lameness............................................. 22 New leaders to ensure food safety.......................... 24 Dookie Dairy Report.................................................. 29 Keeping to natural order.......................................... 29 Soil health comes first.............................................. 30 Understand your water needs................................. 34 Training our future leaders...................................... 35 Ambassadors ready to spread the word................. 36 Good bulls are getting better................................... 37 Black and white pin-up girl...................................... 39 Enter now for dairy show......................................... 40 Hoping for a fair showing......................................... 41 Youngsters get a feel for the big time..................... 42 Celebrating 60 years of Holsteins............................ 43 Building the industry’s future leaders.................... 45 Reducing barriers to success................................... 46 Focus on dairy............................................................ 47 Bigger is not always better....................................... 49 Cuts will lead to job losses....................................... 50 Struggling farmers urged to ask for help .............. 50

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Tight times need new tactics

Editor Geoff Adams editor@countrynews.com.au Writers Geoff Adams, Emma Carinci, Jodie Symonds, Sophie Baldwin

Resources are available to help farmers through a tough season.

Graphic design Steph Bell, Brendan Cain, Alysha Bathman, Bella Considine Cover: Vet Hannah Delahunty has spent a lot of time with dairy cattle and says working with production animals is what she enjoys most.

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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In response to ongoing tough seasonal conditions and more recent industry developments, Dairy Australia will increase its support for dairy farmers by accelerating the rollout of its Tactics for Tight Times program in affected regions. Tactics for Tight Times is a multi-faceted program of resources and practical advice that is tailored to the needs of each region and delivered by the industry’s Regional Development Programs. This initiative builds on Dairy Australia’s Tactics for Dry Times program that has delivered 102 events to 2600 participants since July last year. “I encourage every dairy farmer to take advantage of the resources and services Dairy Australia provides through their local RDP,” Dairy Australia chairman and Tallygaroopna farmer Geoff Akers said. “It is vital at this difficult time for dairy farmers to seek out the support and advice they need to keep their businesses on track. “Your local RDP will deliver a number of the support services you need. They will also be able to put you directly in touch with other farming services.” Dairy Australia support activities will include practical information and advice that dairy farmers can adopt immediately in areas such as finance, pastures, feeding, water and irrigation. The rollout and use of DairyBase will be ramped up to assist dairy farmers in revising their budgets for 2015–16 and developing budgets for 2016–17. “We have developed a valuable regional services system for dairy farmers through the RDPs,” Dairy Australia managing director Ian Halliday said. “They collaborate closely with other service providers such as factory field officers.” There are a range of resources and tools available, such as feed budgets that farmers can use by themselves or with the support of an adviser, to help with decision-making. Dairy Australia is examining all its support programs for dairy farmers to see where it can adapt, adjust and respond with relevant advice, information and support. It will also support the efforts of milk processors and other service providers in dairy farming communities. Information on support services will be available at www.dairyaustralia.com.au and via the websites of the industry’s Regional Development Programs.

Help is out there In the wake of the milk price cuts, Murray Dairy is implementing a ramped-up program of farmer support. Assistance includes: • Business assessment and support service: Designed to help farmers take stock of their situation by providing free one-on-one business support. • Workshops, discussion group activities and on-farm days: Focused on business analysis and scenario planning, feed and water budgeting, climatic outlook and cropping/forage strategies. • Social and community support programs: Including expanding the VFF’s Look Over the Farm Gate program. To find out more and to keep up-to-date with the above, phone Murray Dairy on 5833 5312.

dairy news Volume increase is slowing A sustained period of EU milk production growth appears to be coming to an end. Milk production in the European Union producers include the EU (142 million tonnes), increased after volume limits were abandoned North America (91 million tonnes), Russia 12 months ago, but there are signs that (32 million tonnes), India (46 million tonnes) production is slowing, a Rabobank analyst and Brazil (25 million tonnes). Visiting Rabobank dairy analyst Matthew Johnson (right), with Australia-based visiting northern Victoria says. Signs are emerging that EU milk production senior dairy specialist Michael Harvey. EU milk production quotas were abandoned growth is finally slowing, indicating the recent in April last year, senior dairy analyst Matt post-quota surge in production is a “one-off Johnson said. adjustment rather than an opening of the perfect storm in global dairy markets, with the “While the subsequent surge in milk production floodgates”, Mr Johnson said. removal of quotas encouraging European dairy across many EU member states was anticipated, He said after exhibiting significant growth farmers to increase production to maintain the fact that this growth has been sustained in the first year after liberalisation, EU milk their cash flows. And this just happened to despite the slump in global dairy prices has production growth was “finally starting to coincide with weaker demand (particularly out taken everyone by surprise.” taper off”. of China) which has prolonged the slump in Mr Johnson said EU farmers were also “The removal of milk quotas on April 1, 2015 global prices.” experiencing depressed milk prices due to the signified the end of more than three decades of He said European producers had been buffered prolonged international market slump. regulation in the European dairy industry,” he from some of the downturn in global dairy said. But EU producers had experienced some relief prices — at least initially — by the favourable due to the euro depreciating against the $US. “While the subsequent surge in milk production euro exchange rate and slightly lower feed costs. across many EU member states was anticipated, “However, the cost of production is now below While the milk production cap was lifted, Mr the fact that this growth has been sustained Johnson didn’t think there was likely to be break-even for many European producers, despite the slump in global dairy prices has further reform until the effects of the most and we are starting to see this translate into taken everyone by surprise.” recent change was understood. an increased focus on cost-saving rather than According to Dairy Australia, major cow’s milk Mr Johnson said there had “effectively been the expansion.”

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Doing Dairy

with SOPHIE BALDWIN

Looking for sunshine behind the clouds How can such a disaster happen to such good people? It has been a tough and emotional time for the dairy industry as the reality of the milk price drop hits home. As many farmers are busy sitting down with consultants and their banks to work out what the news means for them and their business it is hard to not feel bitter, angry and upset about the whole situation. Every year milk companies bang on and on to their suppliers: do your budgets, know your spending — yet why aren’t they practising what they preach? How is it possible in this day and age that something like this can happen? Would money be demanded back off any other industry or an everyday worker? Have milk company employees been told to give back some of their salaries? It is like milk processors think dairy farming

JUNE 2016

families have never-ending bank accounts and they can do just what they want. Tough times bring out the best in people so they say and I don’t think times can get much tougher. Of course there will be those that ride this out and continue to do what they love, but unfortunately the young farmers — those with low equity and the future of the industry — are going to be the hardest hit. Our industry will survive but what will it look like in 10 years’ time, and who exactly will be doing it? Every year there is something that prevents us being paid a decent price — the Australian dollar, overseas markets, drought, floods — the list is endless. I always try to look on the bright side, as life has taught me you either get bitter, or you get better, but sometimes it is pretty hard to see the

sun for the clouds. To all my farming friends: hang in there and whatever your decisions, make sure they are informed. Take advantage of what help there is out there, catch up with your mates have a few beers and always know there is help available if you need it. There have been a couple of great initiatives over the past few weeks. The Show Some #dairylove for instance is just a little something thought up by two dairy farming women — a simple idea with big impact and, last time I looked, more than 6500 members. The rallies and the media coverage are all positives and if the momentum can be kept up hopefully there will be change ahead. It won’t be easy I am sure, but we have some great people going into bat for us and hopefully this will be a time of change for the better.

dairy news

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The new export packs from Pactum, featuring the ‘made in the Goulburn Valley’ packaging.

New market opens its doors Milk products from a Shepparton factory destined for shelves in Vietnam. A Shepparton-based dairy UHT processor is moving into the Vietnamese market on the second anniversary of its development. The Pactum Dairy Group is about to install a second packaging line at its Old Dookie Rd factory. Pactum is a joint venture between milk supply company ACM and health food company Freedom Foods. A large percentage of ACM’s 250 million litres of milk comes from northern Victoria and about 100 million litres of that goes through the Pactum factory. ACM managing director Michael Auld was in Vietnam in May to launch the new 1 litre and 200 ml product. The company has specifically targeted high-value Asian markets and has ignored the large volume bulk powder production which has been difficult to sell this year on international markets and which has impacted on the big commodity producers, Murray Goulburn and Fonterra. Pactum is paying its suppliers

about $5.90/kg ($6.70/kg last year). Mr Auld estimated their waiting list for suppliers at about 30. “If we can nail some of those it will bring more volume through the door,” he said. The Vietnam launch, in Ho Chi Minh City, has a heavy emphasis on the clean and green provenance of the milk, which has been a major marketing theme for the company. “We think we have an excellent product that local farmers produce, processed in a stateof-the-art facility,” Mr Auld said. “This gives us great opportunity to partner up with markets in Asia to be able to export a branded strategy with that story.” The company, which now employs about 65 people, has secured a contract with a major Australian retailer. Work will start soon on a new production line to add to the current four in the Old Dookie Rd factory.

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dairy news

Chris Blackberry from Girgarre suggested the way forward was for all milk suppliers to unite in a bid to set the selling price of milk.

Farmers protest milk price cuts Supermarkets and governments criticised for their role in dairy crisis. The milk price crash resulting from the reductions announced by Murray Goulburn Co-operative and Fonterra has brought farmers out in protest. About 300 farmers rallied in mid-May at Tongala soon after the announcement of the price cuts. Supermarkets and governments copped

much of the blame for the troubled state of the industry in terms of the low price point for milk and the absence of an independent review of the dairy industry. Dingee dairy farmer and Farmer Power representative Ben Govett chaired the rally and highlighted the absurdity of the retail price of one litre of water being higher than one litre of milk — a product with costly

resources put into its creation. “Supermarkets are ultimately the ones that ruin all this. They brought in $1/litre milk years back and it’s been down ever since,” Mr Govett said. “They have devalued what reproducing has become,” he added angrily. Mr Govett told the crowd they should

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dairy news

Timmering farmer Scott Somerville: “This (milk price cuts) has the potential to take out the whole next generation of farmers.”

Farmer Power president Chris Gleeson holds up a bottle of milk which cost more than a bottle of water. Seated is meeting chairman Ben Govett from Dingee.

not accept what was happening to dairy farmers and said without lobbying of the government, change could not occur. “If we don’t come together with a solution there’s nothing they (governments) can do. “I want a unified response from the whole industry, Australia-wide.” Mr Govett also dismissed Coles’ plan to give 20¢/litre of milk sold back to an independent farmer support fund as “bulls**t”. Farmer Power president Chris Gleeson agreed things had gone downhill since deregulation of the industry and expressed

his disappointment in Federal Agriculture Minister Barnaby Joyce, saying he had failed to deliver any change to the dairy industry. Mr Gleeson outlined what Farmer Power was doing to save the dairy industry, including pushing the government for an independent review of the industry and establishing a support scheme that would see a 50¢/litre levy applied to all milk and deliver 12¢/litre back to farmers. “(This scheme) will put real dollars back to where they should be, on the land,” Mr Gleeson said. “This nation was built on agriculture and we

want to get back to that scenario.” With the downturn in milk prices and the loss of farmers across the country, Mr Gleeson said this could represent a $2 billion economic loss to the government, which would have significant knock-on effects for businesses linked to the dairy industry. Question time was well-mediated, with one farmer asking the panel to work on changing how the dairy industry was represented, saying a farmer union should be considered. “A union is not going to allow a company to have a claw-back clause that no-one knew about,” he said.

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animal health

A regular column from Rochester Veterinary Practice

Calving induction — where are we now? Routine calving induction is in the process of being phased out. In January 2016, all dairy farmers would have received a letter from Dairy Australia explaining the revised policy by the Australian Dairy Industry Council on the practice of routine calving induction. The background for this decision is to ensure that the dairy industry is operating with the highest possible welfare standards and, in so doing, protecting its reputation and access to markets for Australian dairy products. The practice has been in decline during the past 10 years. It was estimated that in 2015 less than 1.5 per cent of the national herd (about 24 000 cows) were induced, though there is a lot of variation between farms and regions. The new industry policy states: “ADIC does not support routine calving induction and will work to phase it out through improved herd improvement practices, tools and technologies.” In order to achieve this, annual targets will be set and decreased until the practice can be banned altogether as has happened in New Zealand during a period of six years. No time limit has been set for a total ban in Australia but this year’s target is that a maximum of 15 per cent of any herd can be induced. If a farmer wishes to induce more than 15 per cent of their herd, they will need to apply for a dispensation from a panel consisting of representatives from Australian Dairy Farmers, Australian Cattle Veterinarians and the Australian Dairy Processors with assistance from Dairy Australia. The application will need to be supported by: • The reason for the application. • A brief case history. • What actions are being taken to reduce calving inductions (for example, a Herd Fertility Management Plan).

• A plan for the routine induction of dairy cattle. Alternatively a dispensation may be granted in cases of exceptional circumstances such as farmer ill-heath, severe disease outbreak, severe weather/natural events or failure of AI. The induction target will be reviewed and reset annually to eventually get it down to zero. So what can you do? First, you should talk with your veterinarian/ reproduction adviser, to look at areas where you can improve your herd’s reproductive performance. These could include (but are not limited to): 1. Key drivers of reproductive performance to minimise late calvers and empty cows: • Increase six-week in-calf rates and decrease empty cows by looking at heat detection and submission rates, AI technique and semen, nutrition and health, bull management and calving pattern. • Healthy, productive, well-grown and well-fed cows with good transition programs have higher subsequent fertility. • The earlier a cow conceives after start of mating the better the subsequent fertility.

5. Consider using short gestation bulls (if available) or low birth weight bulls.

2. Calve maiden heifers one to two weeks ahead of cows and ensure they are well grown — early calved heifers have more time to recover and a better chance of getting back in calf earlier.

6. Sell late-calving cows rather than induce (these induced cows are likely to have a 10 per cent reduction in yield over the lactation anyway) and limit the number of carryover cows.

3. Restrict mating time to 12 weeks. Any cow pregnant after that time will not be able to calve naturally within the desired seasonal calving window.

7. Monitor performance by using a Fertility Focus Report annually to assess progress and identify areas for improvement. so talk your vet or reproduction adviser and make a plan. For more information go to www.dairyaustralia.com.au/animalmanagement/fertility — Keith Fletcher, Rochester Veterinary Practice

4. Restricting mating time will lead to higher culling rates, so there is a need to increase replacement rates by: • Keeping heifer calves from heifers (use of carefully selected dairy bulls).

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The Jones farm at Patho

Farmers pushed to

breaking point

Milk price cut forces families to consider leaving the life they love. “I have always been broke but never broken and now I am both.” This is the sentiment of an ordinary dairy farmer. A person who works 12-hour days without complaint because he is doing what he loves. A man who works hard to support his wife and three young children, a man beaten by an announcement that he didn’t see coming. Patho dairy farmers Chris and Jade Jones are struggling to get their heads around Fonterra’s milk price drop bombshell, struggling because they don’t know what it means for their business or their farming future. The money they have supposedly been ‘overpaid’ is gone, spent on water, fertiliser, seed and corn silage — spent on things needed to set the farm up for the next season. “We don’t want to have to get out, but at the same time we can’t keep losing money and be forced to take on more debt by our milk company because they can’t manage their business properly,” Mr Jones said. “Fonterra need to be held accountable for their mistake and I can’t believe there are no legal ramifications for what they have done. “Not only is it morally incorrect, but we have 12

JUNE 2016

no other avenue we can take. We just have to weaknesses in their business. accept their decision and it’s wrong. As soon as the price drop was announced the “They tell us every year to budget. Why couple sold a dozen cows and dried-off 70couldn’t they do the same?” odd spring calvers. One thing Mr and Mrs Jones do know, is They are currently milking 240 autumnthe minute they can swap over to a new calving cows. company they will be gone. They plan on cutting costs wherever possible, “We have spoken to eight different milk but in reality there is not too many more companies but no-one can take us on at the areas that can be cut. moment,” Mrs Jones said. They are hoping they can get away without They refused Fonterra’s offer of a loan that having to buy any more hay and just feed locks them into supplying the company for the cows grass, but a wet winter could upset the next four years and have elected to take those plans. the price drop. “We just aren’t going to make any rash “Why would we want to lock ourselves into decisions,” Mrs Jones said. a loan deal with a company we no longer There is always the option to sell some trust and who manage their business the way young stock but that is a decision the couple Fonterra do,” Mrs Jones said. is hoping to avoid. “I also find it very contradictory they have to “They are our future and to see your young take money off us and yet can still afford to stock loaded up on a truck and sold to loan it back to us anyway.” someone else is heartbreaking. We put a Like most farmers they are speaking with lot of time, money and work into breeding advisers and their bank so any decisions they them,” Mr Jones said. make moving forward are informed and well It has been a rocky road for the couple, who thought-out. purchased the farm at Patho just before the They are also hoping to complete Murray milk price drop in 2008–09, but despite that Dairy’s Taking Stock program to identify any love the industry.

“We have had a couple of years where we have managed okay but an announcement like this from Fonterra wipes out any gains we had made over the years and puts us right back to the start again,” Mrs Jones said. “It is stressful and you try to manage things the best that you can, but we have a lot of uncertainty and it is putting pressure on us all.” Mrs Jones works off-farm as a nurse but with a young family and a dairy farm to run, she can’t just go out and work more shifts. “The kids have to get ready for school. Our youngest daughter is still in kinder and it’s not as simple as just going out and working more,” she said. “I booked a holiday early in the year and even though it is paid for news like this takes the enjoyment out of anything you do. You start to feel guilty and you question all of your decisions.” They love the lifestyle dairying provides for their young family, and city friends love to come up to the farm for a holiday. “We don’t want to get out but you do wonder about the next generation. I wouldn’t want my kids to go through what we have. There is always something and we just seem to be the bottom feeders that everyone else feeds off,” Mr Jones said.

Fonterra suppliers Chris and Jade Jones

Struggling to find answers For Girgarre farmer Jayke Fisher and his wife and business partner, Bec, the dairy industry has been their life. “We love it, our kids love it and it’s in our blood,” Mr Fisher, 26, said. “And it’s high reward. Planting something and breeding something and watching it grow and develop all the while your family grows and develops, is so rewarding.” Their business strategy changed dramatically when their factory, Murray Goulburn, advised them of the milk price cut. In April the Fishers did an estimated budget with the milk price at $5.60/kg. “Then the next week they slash their price again,” Mr Fisher said. “How do we budget and prepare and plan when the rug is continuously pulled from under us?” He dismissed the ‘milk support package’ as of no value.

Jayke and Bec Fisher on their Girgarre farm

JUNE 2016

Get the facts and fight back Take stock of your situation. Dairy Australia has rolled out the first of a series of Tactics for Tight Times fact sheets to assist dairy farmers to assess their situation and plan the way ahead during the current uncertainty around seasonal conditions and milk pricing. The Tactics for Tight Times response will see Dairy Australia increase the delivery of programs through the Regional Development Programs and provide information for dairy farmers and service providers. It will provide clear and consistent information, tools and resources to support planning and decision making on farm. The first fact sheet — Taking Stock of Your Situation — can be downloaded from the Dairy Australia website. It guides dairy farmers through a process that helps them to understand their current position and plan for the 2016–17 season. It works as a ready reckoner listing key areas of the farm business to focus on in order to get an understanding of where the business is positioned in the changing environment of lower milk prices and ongoing drier than average conditions in many regions.

The fact sheet covers annual cash flow, monthly milk income and feed budgeting, detailed cash budgeting for 2016–17, monthly cash flow and looking at your balance sheet and detailing assets and liabilities. The Tactics for Tight Times program will be delivered through the industry’s Regional Development Programs using a range of specialist providers. The program is designed to be flexible to meet the unique needs of each dairy region.

The Regional Development Programs are backed by the resources of Dairy Australia and together they are working with the wider industry to make sure farmers are able to access the information and support they need to make key decisions. Tactics for Tight Times activities will include workshops, discussion groups and farm walks, for example, and will give practical information and advice that dairy farmers can use immediately to help manage their farms.

Dairy Programs For more information about our short courses and qualifications phone 1300 468 233 or email enquiry@gotafe.vic.edu.au

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Tues 21 June

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13 & 14 July

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29 & 30 June

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Tues 28 June

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1 & 2 Aug

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20 & 21 July

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8 & 9 Aug

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Wayne Mulcahy and Neil Longstaff have a goal to create a long-term sustainable dairy industry for their business and their suppliers. This year Southern Processing will manufacture 41 million litres of milk — that’s a long way from its humble beginnings 16 years ago.

Family business goes far beyond the farm gate Brothers bring fodder, cows and processing together in one successful enterprise. The Mulcahy brothers from Kyabram have been on an eventful journey for the past 16 years as they navigated the worlds of dairy farming and milk manufacturing, all in the name of building a sustainable future in the industry they love. Third generation dairy farmers, brothers Peter and David, now have a vertically integrated dairy business including feed and fodder farms, dairy farms and a milk processing plant. In the early 2000s the family was faced with

the decision to head down the path of milk manufacturing, which was not taken lightly. Peter and David were struggling with rising costs and no prospect of taking control of their revenue stream. The deregulation of the dairy industry provided the brothers with some cash to inject into something and, after convincing their other brother Wayne, who was a mechanical engineer, to come back to Kyabram, they went about setting up and building their own

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JUNE 2016

milk manufacturing plant. Southern Processing has grown from a small domestic milk supplier to a significant independent processor of fresh milk and cream for both the Australian domestic market and overseas export. “We started out with two employees, me and a lab technician,” Wayne said. “On production days we would rope the family in and everyone would help, it was free labour and we couldn’t afford to pay anyone.

Victoria Mulcahy and her father Peter with their 1300-cow herd at Kyvalley.

10 litre bladders of milk are popular with some consumers.

Changes to processing have allowed the company to produce cream in bulk.

The processing line.

“In 2016 we have over 100 employees and things have certainly changed a lot from where they were back then. “Originally we could process 4000 litres an hour. In 2008 we upgraded the factory to manufacture 12 000 litres an hour and we are starting to hit our limits again.” As with many new ventures, the road has been long and eventful with crisis meetings held regularly in the early years. The business changed direction a few times and the family struggled to make ends meet. The business started out with domestic bottled milk and added a delivery service, which expanded into complementary products like eggs, bread, fruit and vegies, and internet ordering. In 2008 the home delivery service was sold and the brothers decided to concentrate solely on milk processing. It was during this period Peter discovered the benefits of A2 milk after a Queensland company started manufacturing it in 2002. Peter met with the milk company, liked what he heard and the family agreed to supply A2 milk. The family immediately started the process to convert its dairy herds and today all the family herds are A2. As the years progressed and the company

“

Originally we could process 4000 litres an hour. In 2008 we upgraded the factory to manufacture 12 000 litres an hour and we are starting to hit our limits again.

”

expanded the brothers decided to purchase feed, fodder and agistment farms in different geographical locations as a risk management tool for the business. “The lessons of the drought taught us it probably wasn’t a good idea to have everything in the one irrigation system or climate zone,” Wayne said. “And doing everything ourselves gives us high security and integrity of the supply chain from farm to customer and that is very important to us as a business.” The Mulcahy business has about 4000 milking cows supplying milk to the factory; 2800 are owned by the family directly, while

the remaining are contracted suppliers all within 38 km of the Kyabram factory. Southern Processing chief executive officer Neil Longstaff said the business was determined to ensure its contracted farmers prospered into the future, along with the company. “We understand our farmers’ needs and we pay differently to other companies,” Mr Longstaff said. “From day one our suppliers know exactly what they will receive for the season.” “There are no step-ups and we pay cash out a lot earlier in the season so our suppliers have money when they most need it. Our pricing model is based on a lot of knowledge from David and Peter. “We prefer family owned 200 to 400 cow operations and we aim to pay a better price over the long term. In a year like this I think our suppliers are quite happy with where they are sitting.” The company also provides consultants and is looking at sourcing feed in the future for its suppliers. The Mulcahy family realises that to have a sustainable business they need to look after every step in the production chain, which includes their suppliers. >> Continued on page 18 JUNE 2016

>> Continued from page 17

Delivering fresh milk to China’s front door Retail products include: Valuing relationships is at the core of Southern Processing was the first Southern Processing and is perhaps one of company to export fresh milk overseas • One and 2 litre bottles packed in the reasons why the company is so successful. in refrigerated containers to China — a cardboard cartons, bulk milk domestic tanker loads and 1000-litre pallecons. process it pioneered and has been Instead of expanding into new markets it has • Bulk milk for export in 18 000-litre flexiservicing for more than five years. instead nurtured and expanded connections tanks in 6 m reefer containers supplied The milk has a 26-day shelf life and arrives at it already had. to Melbourne Port for shipment to its overseas destination within 17 to 22 days. This goes right through the whole business, customer nominated final destinations. Originally the milk was sent in small from farmer suppliers through to factory • Cream in 2 and 5-litre bottles 1000 litre pallecons but the company operations, logistics and export customers. or 1000-litre pallecons. pioneered the use of 18 000 litre bladders in Southern Processing is looking to expand its Over the years the company has expanded refrigerated containers for liquid milk — a business in the future on all levels. its factory to accommodate its increasing feat no-one globally had ever achieved before. “We would like to double the business and business and is again nearing its limits as This initiative has been instrumental in focus on more chilled milk products. We production hits around 12 000 litres/hour. securing and expanding the business into the would like to grow our existing customer “I can remember those early days losing region. base in Asia,” Mr Longstaff said. sleep over how we were going to process “Our site is getting tight and we are looking “Our export is driven by shipping and to 10 000 litres a day,” Wayne Mulcahy said. at expanding that and expansion at the farm be able to improve the ability to maintain The company manufactures both A1 and A2 level too. our quality and deliver in bulk has been milk and also packages biodynamic milk. fantastic, and to be the first company to do “We are very proud of our business and the This season about 41 million litres of milk that globally is even better,” chief executive horizon looks pretty bright when we look at will be processed through the plant. officer Neil Longstaff said. the opportunities we have.”

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Milk fat depression is an important area for profitability.

Milk fat losses can be put right Milk fat depression is a significant issue for dairy farmers that can come at a big cost. Milk fat depression happens when the milk fat component in a daily tanker report starts to slide during autumn and does not pick up again until after the flush of spring pasture. For a 500-cow herd, it can cost anywhere between $67 000 and $220 000. Adam Lock from Michigan State University in the United States, who visited Australia recently, has researched the phenomenon of milk fat depression and has some solutions. “Recent breakthroughs have advanced our understanding of the links between dietary components, digestive processes in the rumen, and the regulation of mammary synthesis of milk fat,” Professor Lock said. One of the common causes of MFD is an increase in fat in the rumen and/or changes in rumen pH. This fat increase comes from a higher intake of polyunsaturated fatty acids, faster rumen throughput and changes to the fermentation process in the rumen. “In pasture-based systems pasture with little fat is replaced by young, lush, high-fat, low fibre pasture in autumn,” Prof Lock said. “The effect is magnified by the application of nitrogen.” When autumn pasture is combined with feeding large quantities of fast fermenting grains such as wheat, the rumen pH is reduced and the risk of MFD increases. These changes in pH impact the microbial populations in the rumen and while these changes can be quite subtle, they can bring on MFD. “In terms of pasture management the correct point to graze in order to limit fatty acid intake coincides with what is generally regarded as the correct point of grazing for optimal agronomic outcomes. “That is at the three-leaf stage in rye-grass,” Prof Lock said.

Milk fat depression can cause income losses but it can be managed through balanced nutrition, according to Adam Lock.

Part of the solution to the MFD problem is to ensure grazing rotations are managed so that cows are not getting onto pasture before the three-leaf stage, particularly where nitrogen has been used to stimulate growth. “At this point fatty acid intake will be compounded by a lack of effective fibre in the pasture,” Prof Lock said. “It turns out grazing at the correct point is good for the fat test as well as for cows and for land use outcomes.” The other element of the feeding regime that has an impact on the rumen environment is the type of supplements that are fed. “There are a variety of opportunities for different farmers,” Prof Lock said. “Feeding less wheat and more corn or barley will slow the rate of fermentation.” Where there is a price differential among the different grain options, an analysis of cost per tonne, available from Dairy Australia’s

Hay and Grain Report, will give dairy farmers a better idea of the potential return from making these grain changes. “Cows are very responsive so you can try different combinations,” Prof Lock said. “Following a diet correction it will take 10 to 14 days to rescue milk fat synthesis but usually you will see a movement by seven days.” It is easier to control and change rumen fermentation and the rumen environment by changing the grain mix fed to the cows, than it is to control fatty acid intake from pastures in a pasture-based system. MFD is an important focus area for profitability, and getting your dairy nutritionist to advise you is highly recommended, Prof Lock said. “Getting a balance of less fermentable grains into the ration is the number one opportunity to manage MFD in pasturebased herds.” JUNE 2016

New district vet loves dairy cows A young vet who loves working with dairy cows is the new district veterinary officer based at Tatura. Hannah Delahunty, 29, has replaced Chris Werner in the Agriculture Victoria job, and is learning a lot in her new role. “This job is very exciting to be a part of because it’s about Victoria and protecting Victoria’s agricultural trade, animals and animal products,” Dr Delahunty said. Although her primary role is to look after the wellbeing of animals in the region, Dr Delahunty will also work to protect market accessibility and trade through disease surveillance and studying human health. After growing up on her parents’ beef cattle farm in Colac, Dr Delahunty said “mucking around with animals” was one of the reasons she wanted to pursue a career as a veterinarian. Dr Delahunty has experience with a variety of animals, from cats and dogs to pigs and sheep, however, she is especially fond of dairy cattle. “I really like production animals, mostly the cows. “I like the dairy cows because there’s much more veterinary involvement … they have

more requirements for veterinary care.” Dr Delahunty’s background is in mixed veterinary practice with an emphasis on production animals, which she preferred. “Production animals have a job to do … it’s farmers’ livelihoods, so you’re protecting their income and assets.” Dr Delahunty studied veterinary science at Murdoch University in Perth. While she has worked in different roles, spending her graduate years in mixed practice in Mount Gambier before moving back to Perth to work on her fiancé’s family dairy farm, it was her time in New Zealand which remains a career highlight for Dr Delahunty. “I went for a three-month locum job but ended up staying for a year-and-a-half. “I moved there when it was sky-high dairy prices. Then when I left, prices were on the decline. I really feel for the guys there at the moment.” Dr Delahunty said the experience was “amazing”. “They were screaming out for vets. Milk was valuable so farmers wanted to get the most production. “It was great to be in an industry that had a

Vet Hannah Delahunty has spent a lot of time with dairy cattle and says working with production animals is what she enjoys most.

lot of money, optimism and enthusiasm.” After enduring the snow, sleet and cold weather for long enough, it was time to move to the warm and sunny pastures of northern Victoria. Dr Delahunty spent a short period in the Goulburn Valley during her university years when she completed some placement work in Shepparton. She is now settled on a dairy farm just outside Tatura with her fiancé and is looking forward to the future challenges of working as a district veterinary officer.

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More local farmers backed by Ausure Echuca Name: Shane and Cindy Felmingham. Farm Location: Lockington. Years with Ausure Echuca: Eight years. What’s the best aspect of farming? The quality of time to spend with our family and still generate an income. It is just a great family lifestyle.

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A sole ulcer is identified as the source of the lameness. This cow has been treated with the ‘Dutch method’, and the decision to block the cow is made.

Take stock of lameness Poor feet condition can impact a cow’s production and fertility. Kyabram vet Mick McAuliffe said there Lameness in cows is a common problem in were many things that could contribute dairy herds across the country. Every farmer will have experienced it at some point and to to lameness — laneways, nutrition, hoof conformation and stock management. varying degrees. He said it was important to remember to Lameness impacts the bottom line through pay attention to your herd at all times but production and fertility losses and Dairy particularly at drying-off. Australia estimates a lame cow costs the farmer around $280. “If a cow has poor feet condition while in milk, this problem can be compounded Kyabram Veterinary Clinic in conjunction through her dry-off period,” Dr McAuliffe with BVG Hoof Trimming hosted a said. Lameness Prevention Seminar at the Stanhope dairy farm of Grant and Kylie At drying-off cows experience nutritional, Miller in March. environmental and metabolic changes that can alter wear, growth and shape of the hoof, Lame cows were picked out from the herd resulting in lameness. and treated by Shayne Moyston from BVG Hoof Trimming. Mr Moyston uses a locomotion score to Studies have shown, for determine the degree of lameness — one each locomotion score above being normal, five being severely lame. one, there is production loss. He examines each cow’s gait before it Score 2 = 1% reduction in DM enters the chute and he then treats them intake, 0% loss of production. accordingly, usually with the ‘Dutch method’ Score 3 = 3% reduction in DM of trimming. intake, 5% loss of production. “This farm has a feed pad and I will look for Score 4 = 7% reduction in DM the lesions I see associated with feed pads,” intake, 17% loss of production. Mr Moyston said. “I’m looking for sole ulcers, corkscrewed Score 5 = 16% reduction in DM claws and to a lesser extent, all the other intake, 36% loss of production. lesions associated with cows on irrigation Source www.bvgtrimming.com.au country.” 22

JUNE 2016

Springing heifers also need to have special attention paid to them. Hard dry ground and fluctuating feeding can result in rapid growth of claws and abnormal wear due to poor hoof angle. Worst-case scenario can see toes snapping off and heifers becoming lame around calving time. The Miller family runs a 420-cow splitcalving herd. The cows graze pasture or are fed on the feed pad. The greatest distance the cows walk to a paddock would be about a kilometre; this dry season has seen the herd spend more time on the pad and less in the paddock. Lameness is not a major issue for the herd, a fact Mr Miller attributes to the installation of rubber matting at the rotary dairy. “If we get a bit of rain lameness flares up, but we find it is more of a problem for us in wet conditions,” Mr Miller said. “Lame cows can be frustrating, they cost us through production losses and in cow health. “About 10 years ago we spent a lot of money fixing up our laneways and that worked really well. It is time to do that again but it is a tough season and there is no money around for things like that.”

The cow is comfortable as she gets her feet trimmed.

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If a cow has poor feet condition while in milk, this problem can be compounded through her dry-off period. Dr McAuliffe

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A wooden block is applied to the good claw to rest the injured claw. The block will take the weight of the animal and keep the injured claw off the ground. Hardwood is used so the block will wear at the same rate as the injured side repairs. When the wood has worn completely, the injury will be fully healed.

Kyabram vet Mick McAuliffe and Aaron Miller at the hoof trimming day at Stanhope. JUNE 2016

New leaders to ensure food safety Two new industry leaders will oversee Victoria’s dairy, meat and seafood safety regulatory bodies. The Victorian Government has appointed Michael John Taylor as chair of Dairy Food Safety Victoria, while Candy Broad has been appointed chair of PrimeSafe, which regulates the red meat, poultry, seafood, game meat and pet food industries. Victorian Agriculture Minister Jaala Pulford said the new leaders would be “invaluable” in their new roles and bring “a wealth of industry experience to the table”. Mr Taylor, having previously served as chair of the Gardiner Foundation and chief executive officer of the Australian Dairy Industry Council, brings considerable knowledge and experience of the dairy industry across the entire supply chain. He also has a strong understanding of industry regulation through his previous work for Victorian and Commonwealth

government departments. Mr Davis was instrumental in leading the co-ordinated response to the raw milk case The term of the current DFSV chair, Grant in 2014 and in managing the listeriosis Davies, ended on April 11 with Mr Taylor outbreak that occurred in 2012. commencing as chair on April 12. Mr Vallance led the 2013 parliamentary As a former energy and resources minister, inquiry into the impact of food safety Ms Broad has demonstrated experience regulation on farms and other businesses, across government, industry and stakeholder and has overseen significant organisational relations. restructuring of PrimeSafe. He remains an Living in regional Victoria, Ms Broad has industry leader through his roles at both a strong appreciation of regional industry the VFF and Cattle Council of Australia. issues and extensive knowledge of food regulatory practice. The Andrews Government will continue to be a strong supporter of the state’s She will commence in the role on July 1, world class food sector. taking over from outgoing chair Leonard Vallance. “Victoria accounts for approximately 85 per cent of Australia’s dairy product Ms Pulford thanked Mr Davies and exports, 14 per cent of seafood exports and Mr Vallance for their tireless efforts, professionalism and commitment as chairs of more than 20 per cent of meat exports,” Ms Pulford said. DFSV and PrimeSafe respectively.

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Murchison brothers Todd Smith, 21, and Dean Smith, 19, both graduated with a Diploma in Agriculture. They hope to take over the family farm together one day.

Celebrating dairy’s future Young farmers’ education achievements acknowledged at TAFE presentation night.

Amid an emotional and turbulent end to the season for dairy farmers, optimism for the industry’s future was still being celebrated. Goulburn Ovens Institute of TAFE National Centre for Dairy Education, in partnership with Murray Dairy and the Young Dairy Network, celebrated the passion and commitment of young people and their efforts in helping secure the future of the dairy industry with a dinner and presentation on May 17 at the Goulburn Valley Hotel in Shepparton. Graduating students were recognised at the event and the Stepping Stones Program, which provides career pathways into the industry, was acknowledged. GOTAFE Student of the Year and Certificate III Trainee of the Year went to 22-year-old dairy farmer Kyle Fleming from Tongala. After finishing secondary school in Melbourne and starting a plumbing apprenticeship, Mr Fleming moved back to the region with his family and undertook a Certificate III in Agriculture. For the past three months, Mr Fleming has 26

JUNE 2016

Dairy farmers Mandy Paterson of Nathalia and Maxene Ramage of Merrigum graduated with a Diploma in Agriculture each. They both opted for a career change around five years ago and love farming. Despite tough times, both are adamant they will stick with dairying.

Certificate III and IV graduates.

practically been running the day-to-day operation on a dairy farm, purchased by his parents, with 190 cattle. “I like working with the cows through the seasons. There’s always something different going on,” Mr Fleming said. Mr Fleming hoped to take over the farm by the end of next year and with his mother working in aged care in Melbourne and his father working as a paramedic in Kyabram, he will run the farm predominantly on his own, with some support from his parents. The recent milk price drops have not deterred Mr Fleming from pursuing a career in dairying. “It’s a challenge for everyone but we will get through it,” he said.

studies were important for dairy farmers Cohuna dairy farmer Jade Southern received of all ages who wanted to develop in the the award for Advanced Diploma of industry. Agriculture Student of the Year. “Dairy farming is no longer just a job for the “I’ve been in the industry 20 years. When I outdoors — they need management skills,” left school I had a desire to go down that Mr Goulding said. line,” Mr Southern said. He said further studies were essential to Since then, his passion for dairy farming has the agriculture industry, and studying a grown, although he admitted it was being certificate built the confidence of aspiring tested by the news of the price cuts. dairy farmers by teaching them about best “It’s all strategy. We won’t know what we can industry practice. afford until next season’s price is announced.” Dairy Australia managing director Ian Mr Southern and his wife Brooke have been Halliday presented the awards at the event sharefarming for 12 years and all four of and encouraged young farmers to remain their young daughters love the farm. positive and persist with the dairy industry GOTAFE NCDE Certificate III and IV because it needed a viable and profitable co-ordinator James Goulding said formal future.

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Dookie Dairy Report March 1, 2016

April 1, 2016

May 1, 2016

Cow numbers

118

132

144

kg milk solids/cow/day

2.13

2.49

2.23

kg concentrate/cow/day

8.0

9.0

9.8 *

kg fodder/cow/day

7.6

8.6

8.6 **

Pasture (KgDM) /cow

6.0

5.8

5.4

34.5

Av milkings/cow/day

2.6

3.1

3.0

No. of failures/day

3.5

1.5

1.2

Area in rotation

No. of cows got/day

Litres/machine/day

1130

1404

1342

376

354

378

Rumination minutes/cow/day • * 12.5 MJ ME/kg DM, 22% CP. • * * 9.0 MJ ME/kg DM, 12% CP.

Keeping to natural order Study finds cows present themselves for milking in consistent pattern. The voluntary milking system at the Dookie Dairy allows cows to move independently around the farm, however research conducted by the University of Melbourne shows that a consistent milking order was established. That is, the same cows tend to be milked at the beginning and end of the milking periods. The milking order was highly consistent in early lactation during spring, but became more variable in the latter stages of lactation.

Milking order was correlated with milk production with cows earlier in the milking order having higher production. On average cows in the first half of the milking order produced five litres per day more than cows in the latter half of the order. The lower production from cows later in the milking order suggests that there is potential to utilise milking order to improve grazing management in pasture-based automatic milking systems. This may involve splitting

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the pasture allocation between earlier and later milked cows, so that all cows get access to pasture with similar mass and nutritive characteristics. Further research is needed to quantify the benefits of such a strategy. This research was conducted at the University of Melbourne’s Dookie Dairy during the periods October to April, during the past two years.

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Soil health comes first Contractors are used to turn the compost pile every 10 or so days dependent on weather conditions.

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Cows grazing on paddocks that have been treated with compost, foliar sprays and lime since 2012.

Stephen Hawken and son Henry at their Echuca dairy farm.

Echuca farmers puts his faith in Mother Nature and his agronomist and reaps the rewards. When Steven Hawken purchased his Echuca dairy farm in 2012, soil health was put at the top of his list of priorities. He decided it was time to work with Mother Nature rather than against her, and he wanted to limit the use of expensive synthetic fertilisers and instead focus on natural alternatives including compost and calcium. “I have changed the way I farm completely — it is all about the ground being alive,” Mr Hawken said. “I like to keep my plants and soil in a balanced state. I don’t farm for a yield response but rather a plant response. If plant health is spot on there might be bugs there but they are not a problem, the system looks after itself. “I bought this farm planning for the worst season not the best.” Initially the whole farm was sprayed with 250 litres of CalX to the hectare — a heavy rate according to Mr Hawken, but he

wanted to get the ball rolling. These days he still uses the foliar spray four times a year, but at a reduced rate, along with 1 tonne of lime/ha and, just recently, 15 tonne of compost/ha. “We are well along the road to self-sufficiency and while it has been a commitment, we are really starting to see the rewards now. “From day one, along with my agronomist, we decided to split the farm into three separate pasture programs — a third lucerne, a third 150 rye-grass and a third shaftal and rye. “In the four years since, I have even gone back to sowing good old paspalum with new species of clover and rye-grass. “I have only 25 ha of lucerne now, which is about the right amount. Previously I had too much and it was putting pressure on my other pastures; I believe I have the right mix now.” Last year the farm business — Moovin Dairies — sent 2.3 million litres of milk,

with the 240-cow herd averaging 708 kg of milk solids. Obviously production has not suffered, in fact Mr Hawken firmly believes as soil health has improved so too has the health of his animals, including fertility. “I think soil health has a lot to answer for especially when it comes to fertility and over the last four years our fertility has improved, but that can be attributed to other management decisions too, including breeding specifically for health and fertility traits and breeding smaller animals.” An avid fan of compost, Mr Hawken has been using this to help build up soil health. He composts everything — manure, silage, old hay, rice hulls from the calf pen — anything organic he can find. “We dump the waste using the telehandler and spread the hay along the rows, which is then soaked. The pile is turned every seven to 10 days by a contractor and it takes on average 10 to 12 weeks to cook. >> Continued on page 32 JUNE 2016

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Anything goes into the pile — old hay, silage, rice hulls from the calf pen, anything organic.

“You have to keep the pile moist to generate heat and kill the weeds (a temperature of 75 degrees for a good couple of days does the job). “We put 1000 tonne of compost out over four weeks at the start of the year and have noticed a huge difference so far, without any other fertilisers used since last autumn.” Improving soil health hasn’t been an overnight job. It has taken time, patience and a leap of faith. “Things could have gone very wrong from the start but I put my faith in my agronomist and I am glad I did because we haven’t looked back.” Mr Hawken is not scared to try out new fodder varieties and he is considering having a go at growing some fodder beet. “You can’t cut corners but you can step outside the box as long as you base your decision on fact.” The 180 ha dairy farm has a 44-unit rotary, ample shedding and is 85 per cent auto-irrigated. The pre-existing infrastructure, general farm layout and deep lead bore along with recycled water allowed Mr Hawken to focus his attention on the soil from the very beginning. Never one to shy away from tough decisions, Mr Hawken is always on the lookout for a better milk price and changes companies regularly as a management strategy. “There is a group of us and we are always on the lookout for a better milk deal.” With the approaching tough year he is not going to make too many changes to his management. “We will feed the cows similar to last year and maybe milk a few less. Instead of buying anything new I will be getting out the grease gun and maintaining the machinery I have, I will just be trying to keep costs to the bare minimum. I will also be keeping a close eye on herd health.” Mr Hawken said it was during times like this that farmers needed to support each other and share information. “Keeping an eye out for your mates, supporting and checking up on each other doesn’t cost anything, just a bit of time.”

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Understand your water needs Be prepared to alter feed plans to match water availability. Water was on the agenda at a workshop hosted by Murray Dairy at Cohuna in April. Facilitated by RMCG’s Daryl Poole, the message was clear — know where your business is sitting and know what your water needs are. “Water is the foundation of the feed base, have a plan but be prepared to change,” Mr Poole said. “Things could get better or they could get worse but you are giving yourself the best chance by getting autumn feed growing now.” He said while there was increasing demand on water from other industries including almonds and cotton, dairy could still be competitive in the water market and many farmers were growing more fodder from less water as management practices improved. “Unfortunately things are looking pretty 34

JUNE 2016

tough moving forward and we are not delivering a great message this time. The timing of rain will be critical because there is no back-up left in the irrigation system after two dry years in a row.” Mr Poole said continually assessing your options was important and while carryover had been used as a risk management tool in the past, “changes have been made this year and you can only carryover the combined volume of your HRWS and LRWS linked to your ABA, any extra is taken off you and put back into the communal pool”. He said carrying water over allowed farmers to secure some of their needs for the next season, “but remember you lose five per cent of the volume you carryover and prices maybe higher now then next year”. “It is also important to consider that a poor allocation year doesn’t mean everything is going to go pear-shaped. If we get rain at the

right time and in the right areas we could still be in for a reasonable year hay and grain-wise.” Goulburn-Murray Water’s Mark Bailey said his organisation would be doing its best to keep farmers updated with information as it comes to hand, so they can make informed decisions. “We are in for a bleak outlook if these conditions continue but if we can get some consistent rainfall to wet things up before the peak inflow period things could turn around,” Dr Bailey said. “Carryover water is an option but remember there have been some restrictions put on that so people can’t stack it away like they used to be able to.” He also confirmed there would be enough water to operate the channel system come August 15.

Training our future leaders Scholarships will get dairy people into leadership program. A leadership training opportunity for people connected with the dairy industry in north-east Victoria is available. The Gardiner Foundation is offering scholarships to participate in the 2016–17 Alpine Valleys Community Leadership Program. The program spans 10 months of experiential education, and the next program will start in July. It will offer participants the opportunity to meet a broad range of regional, state and national leaders. The partnership between Gardiner Foundation and the Alpine Valleys program provides an opportunity for up to three passionate individuals from the dairy and allied industries to build their skills, confidence and networks within their region. Gardiner scholarship recipient in 2015, Lauralee Hogg, is an upand-coming leader of the Corryong community. Still in her 20s, she was appointed store manager for Murray Goulburn just prior to the commencement of the Alpine Valleys Community Leadership Program, and in her spare time throws herself into a range of community activities, but particularly her local netball club as a player and coach. “The program has opened my eyes to so many exciting opportunities that can be achieved in rural and remote areas of Victoria,” Ms Hogg said. “I’m looking forward to the second half of the program to see what skills are waiting to be learned.” Inquiries and applications have been invited from people who are either actively involved in the dairy industry in north-eastern Victoria or active community members in the Mitta Valley (whether involved in dairy or not). For more information or to apply, contact program co-ordinator Karlie Langdon by email at leaders@avclp.org.au or phone on 0437 827 548 or go to www.avclp.org.au JUNE 2016

Ambassadors

ready to spread the word Pair hopes to get more young people involved in agricultural shows.

Two new rural ambassadors are hoping to bring more young people to the district’s agricultural shows. Laura Bradley, 23, from Stanhope and Aimee Bolton, 18, from Congupna competed for the Goulburn Valley Riverina Shows Association rural ambassador positions at the GVRSA dinner on April 16. Ms Bradley was awarded Rural Show Ambassador and Ms Bolton won Rural Junior Show Ambassador. Entrants were judged on community or show involvement, rural knowledge, communication skills and their ambitions. They also had to engage in an interview and deliver a speech about the most important lesson they had learned in life so far. Ms Bradley said she would like to use her ambassador title to include more young people in agricultural shows. “It’s more about getting young people involved. And (getting) them to come to shows.” She said the win was also a good opportunity

for personal development. “I was honoured to receive it — the Kyabram Show committee encouraged me to do it, and I’m happy I did.” Agriculture has been a big part of Ms Bradley’s life, having lived on a dairy farm when she was younger. “I have my horses as well,” she said. Ms Bolton said being an ambassador was “pretty cool”. “I felt really proud hearing my name called out — and now I feel like I can give back to the community,” she said. “I want to promote our local shows and put them out there.” Ms Bolton said she grew up with beef cattle and now has\d her own Red Angus stud, Bolton Girls Red Angus, at Congupna. She said with the ambassador role and her Bachelor of Agriculture degree at Charles Sturt University in Wagga Wagga, she could learn more about the breed and become an expert in meat science, quality assurance and meat exporting.

Goulburn Valley Riverina Shows Association president Kathleen Bottrill with Rural Junior Show Ambassador Aimee Bolton.

Ms Bradley now has the opportunity to represent the Goulburn Valley and Riverina areas at the Royal Melbourne Show in September to compete for the state rural ambassador title. Ms Bolton will represent the Goulburn Valley and Riverina areas for the state rural junior ambassador title at the Victorian Agricultural Show Convention in Swan Hill in July.

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Allison Potter finds the Good Bulls App to be efficient.

Good bulls are getting better Latest ABVs show improvements across all breeding traits.

way to identify bulls to meet a herd’s When it comes to finding good bulls to use over Australian dairy herds, they keep getting breeding priorities. better and better, as demonstrated by the The Good Bulls App allows farmers to April release of Australian Breeding Values. create a short list of bulls potentially suitable for their herd. While it is based on The Australian Dairy Herd Improvement the three breeding indices — BPI (profit), Scheme’s Daniel Abernethy said this release HWI (health) and TWI (type) — a variety had improvements in reliabilities across of filters can be used to customise the all traits, giving dairy farmers even more search to individual priorities. confidence in their bull choices. Wagga Wagga dairy farmer Neil Jolliffe For example, the reliability of the Balanced milks about 225 cows and said the app was Performance Index has increased by 5.8 per cent in Holsteins and 2.5 per cent for Jerseys. easy and convenient. “I can do different bull searches while I’m “In the world of genetics these numbers mixing grain,” Mr Jolliffe said. represent significant improvements,” Mr Abernethy said. He said the app had opened his mind to considering bulls he would have previously The increases in reliability came from the overlooked. addition of genotypes for 30 000 females in 100 herds into the reference population “I played with searching bulls based on through the Ginfo project, a large-scale different traits such as survival and mastitis. genotyping project to increase the reference Doing this brings up bulls that I hadn’t population of Australian dairy cattle to considered but they tick a lot of boxes.” achieve more reliable genomic-based ABVs. Poowong North dairy farmer Allison Potter The Ginfo project is a collaboration between milks 500 cows and said the app was a the DairyFutures CRC, ADHIS, Holstein convenient way to have access to necessary Australia, Jersey Australia and DEDJTR. information. Bulls are also getting better with a new app “I like the idea of having the information at which has been welcomed by dairy farmers my fingertips, for example, being able to around Australia. look up a bull that could be useful over a particular cow when she’s standing in front The Good Bulls App offers a fast and fun

Neil Jolliffe says the Good Bulls App has opened his mind.

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Black and white pin-up girl

Miss April is a Legendairy cow enjoying social media stardom. Seven is a cow with a distinctive marking on her forehead that has earned her a national profile. Owned by Di and Gary Bowles from northern Victoria, Seven has a prominent figure ‘7’ on her forehead that has earned her the title of Miss April on the 2016 online Legendairy calendar. The calendar is part of the dairy industry’s celebration of the bond Australia’s Legendairy farmers have with their animals. Mrs Bowles said there was no surgery or digital enhancement when it came to Seven’s markings, she was just born that way. “She is an extremely friendly cow and answers to being called Seven,” she said.

“She’s not a cow that causes any trouble and she’s extremely distinctive so it’s easy to pick her out of the 250-strong herd.” Seven is now five years old and is more than just a black and white beauty, she is also a good farm cow, currently producing about 28 litres of milk each day. Even before her Legendairy pin-up status, Seven was an emerging star on social media due to her owners sharing images of her online. “If I don’t post something about her for a while people ask what’s happening. She’s got her own following,” Mrs Bowles said. Being named Miss April for the Legendairy calendar is a sentimental achievement for Seven and her owners as she was born in April.

Mr and Mrs Bowles farm on irrigated land at Mead near Cohuna and admit things are tough this dry season. “We desperately need rain, “ Mrs Bowles said. “Things are getting a bit tight but farmers in northern Victoria are very good at adapting and adjusting to seasonal conditions.” Mrs Bowles, a Murray Dairy board member, said the Legendairy communications initiative to raise the profile and reputation of the industry was a great campaign. “I love the play on words and it’s very appropriate,” she said. “I love anything that promotes Australian dairy and I’m always happy to post positive messages about the dairy industry.” JUNE 2016

Enter now for dairy show More than $20 000 in prizes up for grabs in Royal Melbourne dairy competitions. Entries are now open for the 2016 Royal Melbourne Show Dairy Competition, with significant prize money on offer for industry participants. Comprising the All Breeds Elite Dairy Heifer Show and the Dairy Youth Handlers Classic, the events will be held on September 22 and will award more than $20 000 in prizes. Organised by The Royal Agricultural Society of Victoria, the All Breeds Elite Dairy Heifer Show is open to exhibitors aged eight years and over, and will showcase heifers to the age of 24 months. The Dairy Youth Handlers Classic recognises the best industry participants, aged eight to 21 years, across six classes culminating in awards for junior champion parader, senior champion parader and supreme parader. Also, as part of RASV’s commitment to offering future development opportunities and highlighting career opportunities for youth participants, the Dairy Youth Handlers’ Travel Scholarship will provide the recipient with a $10 000 travel bursary to visit dairy regions in Asia, New Zealand or the United States. Participants will have the opportunity to

receive invaluable feedback from expert judges and directly connect with industry peers. RASV chief executive officer Mark O’Sullivan said the Dairy Youth Handlers Classic was a must for young industry participants. “The Royal Melbourne Show Dairy Youth Handlers Classic provides an unmatched opportunity for dairy participants to develop

their knowledge and skills, showcase their talents to a large number of show attendees and receive advice and guidance from some of the industry’s best leaders,” Mr O’Sullivan said. Entries close on July 29 and can be completed online at www.rasv.com.au RASV members are eligible for a discount on entry fees.

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Hoping for a fair showing Winter Fair organisers expect numbers to be down, but a good show to be had regardless. Organisers of the National Herd Development Victorian Winter Fair are still hoping for a great show despite tough conditions and uncertainty surrounding the dairy industry. Committee member Stu Modra said the fair provided a great opportunity for people to get off the farm for a couple of days, enjoy good cattle and some great company, and he was quick to add it was still the cheapest show in Australia. “Given that the committee members are all dairy farmers, we are aware of the hardship the industry is experiencing and it is inevitable our numbers will be down. The prize pool is still one of the best in the country and we have had many new sponsors get on board again this year, so we will still have a great show,” Mr Modra said. The fair will be held on June 29 and 30 at the Bendigo Exhibition Centre, Prince of Wales Showgrounds, Bendigo. Quickly developing a reputation as a premier show, the Winter Fair has filled a gap in the showing calendar and the committee is always on the look-out for ways to improve the experience, not just for humans, but for

the animals too. This year the committee has done away with judging of supreme udder, instead focusing on an intermediate best udder and senior best udder only. “We thought this was something we could adjust to make the cows more comfortable, particularly the animals from the early classes,” Clare Modra said. “We wanted to make the event as cowfriendly as possible and we think this change will have a big impact on cow health and The youth of the industry is again a major animal comfort.” focus of the show and the fact the fair is held in the school holidays helps with this. The two-day event features dry heifer classes on Wednesday followed by the in-milk “We are always encouraged by the feedback classes on Thursday. we get and the support we receive from the young kids, after all they are the future of The red breeds also get a look-in with our industry,” Mr Modra said. the Red Holstein Feature Show another drawcard. A special feature of the show is the Australian Eddie Bue from Illinois, in the United States, Holstein Zoeits Showcase sale which will be held on Wednesday night at 7 pm. is the judge in charge this year. He was the associate judge at last year’s International “The Winter Fair just started out as an idea Holstein Show at World Dairy Expo in to showcase autumn-calving cows, and to be Madison. honest we have been surprised by its success. It all comes down to the location, the Mr Bue will be supported by associate judge fantastic venue and keeping the costs as low Cameron Yarnold from Arrallik Holsteins at as possible for exhibitors,” Mr Modra said. Killawarra in NSW.

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Prize ribbons on the day.

Youngsters get a feel for the big time Calf day allows skills to be put into practice. Young farmers put their skills in animal parents and siblings they all got a turn in the ring, and there were plenty of prizes and husbandry and handling to the test at Numurkah in April for the annual Goulburn winning ribbons. Murray Jersey Breeders calf day. “Look, I’ve got $5,” one young boy shouted to his parents, after opening his envelope. Children as young as five took their calves into the ring for judging under the For the older teenagers, it was a case of discerning but sympathetic eye of Trevor honing the skills they had been learning Campbell, who gave them feedback and in preparation for big events such as encouragement. International Dairy Week. The combination of youth and inexperience Goulburn Murray Jersey Breeders president led to a few interesting moments as either Margaret Cockerell said the day attracted little farmer or young calf decided they’d had about 32 Jersey entries and about 10 Brown enough and didn’t want to participate. Swiss entries from nine studs. But with the support of experienced mentors, A total of 15 junior handlers attended.

“It’s basically a learning day for young people. We keep it fairly low-key and informal so they can all participate,” Ms Cockerell said. “I think they’ve done very well, especially the little ones handling what can be quite big calves. “As well as getting them involved, they also learn about handling and preparation leading up to the day.” The Supreme Champion, Froglands Vanahlem Pat, was owned by Ben Pedretti from Tallygaroopna and led by Bailey McNab.

Charlotte Andrew, 10, from Holburn Park, Katunga, with Holburn Park Vigour Bianca.

Bailey McNab, 13, from Tallygaroopna, took an August-born calf from the Akers family into the ring at Numurkah.

Charlie Lloyd, 14, from Kyabram, showing Foleama Lix Rose, owned by Erin Ferguson from Tatura. Charlie was placed first in the 13 to 15 years handling class.

The Goulburn Murray Jersey Breeders calf day at Numurkah attracted about 15 junior handlers.

JUNE 2016

At the Holstein dinner are (from left) Robin White from Finley with cattle classifiers Shane Patten from Gippsland and Blair Caldwell from Gippsland.

Former Kialla breeder Frank Sorraghan (left) catches up with Tony Hogan from Merrigum at the Holstein dinner.

Second generation Holstein breeders, Rosa Hore and Geoff Hore from Elmar Holsteins, Leitchville, with cattle judge Bill Thompson.

Charles Smith, Alex Smith and Hamish Smith from St Germains and Andis Sorraghan, formerly of Kialla, caught up for a chat at the Holstein dinner.

Celebrating 60 years of Holsteins

Trip down memory lane at sub-branch’s diamond anniversary. Pioneering Holstein breeders were popular as they are today and he paid tribute to the foresight of those who recognised acknowledged at the 60th anniversary of the where the breed could go. northern Victorian sub-branch of Holstein Australia. Mr Leslie referred to breeder Frank Sorraghan, who showed the record-breaking The anniversary dinner in May heard a Rockwood Park Achilles Felicity for three presentation by dairy breeder and auctioneer successive all-breed wins at Royal Melbourne Brian Leslie, who pointed to the large in the 1960s. number of top-flight cattle which had been “The Holstein-Friesian has ousted the bred by members of the sub-branch. Jersey in America. If these heifers produce Drawing on his encyclopaedic knowledge of blood lines, Mr Leslie produced photographs as these have done in America, they will set records for Australia,” an 18-year-old as far back as the 1960s showing the top Frank Sorraghan told The Age newspaper in performers at royal shows, and tracing their 1958 after importing two Holsteins for the development by prominent breeders, some fantastic amount of 2100 pounds. of whom were at the dinner. Mr Leslie took the sub-branch members He followed the presentation of the on-farm on a journey through time as he recalled challenge winners and said he agreed with the farmers like Tony Few, through to the the judges that the breed was going ahead in Somerville family who bred the recently leaps and bounds. named cow of the year, Somerville Leader Mr Leslie pointed out that 50 years ago, the Laisco, and Pam Malcolm’s successful Paringa stud. “black and whites” were nowhere near as

Ms Malcolm’s Paringa Holsteins dominated the on-farm challenge awards presented at the dinner. Her cattle excelled in the intermediate and senior categories, and she took out both the junior and senior sections of the group awards. First place was awarded to the Invergordon stud in the senior three-year-old, four-yearold, five- and six-year-old and seven-year-old sections. She also took out seconds in two junior classes. Charles and Carolyn Smith of St Germains placed first in the junior two-year-old class with Andes Pontiac Princes and first in the junior three-year-old section with Andes Artest Kizzie. Paul Allott’s Waltopso Lambert Lilly was first in the senior two-year-old section. The Merrigum breeder also held the veteran cow winner, 10-year-old Waltopso Conrad Ding. JUNE 2016

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Building the industry’s future leaders Northern Victorian farmers are among those developing their leadership skills in a year-long program. Dairy farmers from northern Victoria are part of a leadership program which has started with field trips to South Australia. The successful 2016 participants have commenced the 12-month program with a four-day residential block in Adelaide. The Emerging Dairy Leaders program is sponsored jointly by Dairy Australia and Australian Dairy Farmers and is being run for the dairy industry by SA partner in the National Centre for Dairy Education, TAFESA. Australian Dairy Farmers chief executive officer Ben Stapley welcomed the start of the EDLP program.

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“The new program will help emerging leaders develop their skills in preparation for further involvement with the industry and their community,” Mr Stapley said. During the year-long course the group will visit three dairy regions — South Australia, Victoria and Tasmania — and meet inspiring people who are helping to shape the development of the $13.5 billion Australian dairy industry. They will also spend 10 days off-farm (plus travel time) in four residential blocks. Participants in the program will earn a Diploma of Agribusiness Management from the National Centre for Dairy Education/ TAFESA using a variety of learning tools such as online selfpaced study, webinars, peer discussion, workplace and mentor discussions. “The program will help participants understand themselves and others better while improving their communication skills,” Dairy Australia’s industry education program manager Karen Conrad said. “It’s a chance to develop teamwork and build a network of likeminded dairy people with a broad national focus,” she said. “Further, the program helps them explore and reflect on their roles as emerging leaders of their community, industry and environment.” EDLP began in Adelaide in April and will conclude there in April 2017. All costs associated with education, enrolment, travel, accommodation and meals while away from home are covered. EDLP is the industry’s new tier-one leadership program. The tier-two industry leadership program, Developing Dairy Leaders Program, has been postponed and will not run this year. The 2016 EDLP participants include: • Simone Ross, 40, from Katamatite, who has been dairy farming with her husband for 15 years. • Robert Schloss, 52, from Stanhope (the Legendairy capital of Australia). He bought his farm four years ago and has 300 cows. • Kelvin Matthews, 34, from Yarrawalla near Pyramid Hill, who is part of the Accelerated Change Project being run by Murray Dairy. • Dustin Kemp, 33, from Rochester is employed on a farm and involved in a local discussion group.

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JUNE 2016

Dairy Australia’s managing director Ian Halliday says the dairy industry will thrive with more investment.

Reducing barriers to success Initiative informs pathway to growth. profitable milk growth.” Dairy Australia’s Pathways to Profitable Australia’s milk consumption had grown at a Growth initiative was one of many items rate of 1.5 per cent in the past year. He said Dairy Australia was working its way discussed at the 2016 UDV conference around the country to review the economic Production issues were also problematic by Dairy Australia’s managing director Ian impact dairy had in every region to help from an international market perspective, Halliday. with the review process. particularly in Asia, because there is more PTPG, which emerged from discussions demand for milk product and the Asian “We will drill into assessments with regional around industry growth targets, is a market is questioning Australian dairy areas and find out what the opportunities collaborative tool to underpin and inform leaders about whether our industry can keep from a regional perspective are around regional growth and profitability. up with demand. growth.” It began its national rollout around two years Mr Halliday said Australian dairy regions “We know we’ve got challenges with the ago, Mr Halliday said. Asian market.” could learn from the DairyTas dairy output Mr Halliday discussed the PTPG’s extension project Into Dairy, which during However, Mr Halliday highlighted the constraints analysis, saying it was important the past few years has brought together strength within the domestic market as to highlight limitations in order to reduce stakeholders and government to raise almost 65 per cent of Australia’s milk the barriers to the future success of the dairy $1.6 million to help drive profitable milk produce is sold domestically. industry. volume growth. So far, the PTPG has forecasted a potential The constraints identified through the Between $2–3 billion had been invested increase to 11.8 billion litres of milk by PTPG were land availability, feedbase and across the entire Australian dairy in the past 2019–20, which will require an additional climate, water, cows, finance, infrastructure five years, Mr Halliday said, and he wanted 396 000 cows to herd. and factories, and labour and skills. this to continue and grow. While the PTPG has made other useful However, some are more problematic than At the end of the 2014–15 financial year observations, Mr Halliday acknowledged others. Australia’s milk production was sitting at there was still much work to be done. 9.7 billion litres, Mr Halliday said, but “The biggest constraints issues we have are “We don’t have the narrative developed well land availability, feedbase and, in some areas, forecasts have predicted this will drop by 1–2 enough to have a cohesive conversation with water,” Mr Halliday said. per cent for the next 12 months. the government … we need this initiative in “We need to try to determine how we will get Mr Halliday said this was an issue because place to tell us what our needs are.” 46

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Focus on dairy Conference looks at issues surrounding farming’s future. Dairy farmers across Victoria stepped away from the farm for a day in April to learn firsthand about the priorities for the dairy industry. The 40th UDV annual conference, which saw about 90 people gather at the Melbourne Cricket Ground on April 15, focused on the agenda items for the UDV, VFF and other representative organisations in the upcoming year. Social licensing was one of the main issues covered, which UDV president Adam Jenkins said was a focus on how farmers would drive discussion about their right to farm. “It’s about how we engage in the debate and helping the consumers understand the way we operate … particularly in light of population movement and supermarkets moving towards stricter animal welfare codes,” Mr Jenkins said. VFF president Peter Tuohey said the group had lobbied the Victorian Government to protect farmers’ right to farm. “We argued for greater transparency in planning permit requirements,” Mr Tuohey said. He said the growth of regional and urban centres had pushed people into farming areas, and he cited recent cases where encroachment issues had been stirred. “Some (city) people don’t like what they’re seeing … there is dirt, dust, noise and cows moving to the dairy at 5 am. “Tree and sea-changers need to realise that the dust, smell and noise are part of everyday life in the farming zone.” Planning permits were creating costly issues for farming, Mr Tuohey said, and the VFF had argued that extensive industries such as dairy should not require a planning permit. “Currently, feed pads don’t require a permit, but under some arcane State Government regulations there is a permit requirement when over 50 per cent of the feed is brought in.” Mr Tuohey said this needed to change as it was prohibitive to people who were trying to expand their farming business. He said while intensive farming practices such as piggeries, broiler sheds and cattle feedlots should require permits, other farming operations, including dairy, should simply be a right within a farming zone. The VFF met with Planning Minister Richard Wynne following the conference and discussed the different types of farming industries and the difference between intensive and extensive farming practices. He said Mr Wynne was “very receptive” to the discussion. At the conference, Mr Tuohey also expressed concern about the future of dairying, particularly because of the water issues. “If water (for productive use) moves out of the district, dairying becomes less viable.” Corporate money was driving competition for water, and big growth industries such as almonds were adding pressure to dairy farmers, Mr Tuohey said. He said dairy should be prioritised because, unlike some industries which fluctuated, dairy’s economic activity had been stable for a long time. Conference resolutions were established and will now become a significant part of the UDV agenda in 2016.

UDV president Adam Jenkins.

Undera dairy farmer Gemma Monk with Kergunyah dairy farmers Lindsay and Ann Jarvis.

Warragul dairy farmer Bruce Kefford, South Purrumbete dairy farmer Catherine Jenkins, Tongala dairy farmerJUNE Andrew 2016Tyler, and 47 Corryong dairy farmer and UDV policy councillor Gordon Nicholas.

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Matching equipment to demand was a key issue raised in new research on automated milking systems.

Gabriel Hakim

Bigger is not always better Oversized equipment can lead to a blowout in electricity costs. When it comes to equipment in robotic dairies, bigger is not always better, as FutureDairy energy audits have showed. Gabriel Hakim, of AgVet Projects, undertook energy assessments on 10 farms with automatic milking systems (AMS). One of his key findings was that most AMS dairies were operating with equipment that was oversized for the needs of automatic milking, resulting in unnecessary electricity consumption. “When building an AMS it can be tempting to repurpose equipment from the existing dairy but automatic milking can place quite different demands on equipment to conventional milking,” Mr Hakim said. For example, the milking equipment on AMS farms that use voluntary cow movement operates at a low capacity for up to 20 hours a day, compared with conventional milking which usually occurs in two intensive milking sessions a day. “Operating equipment that is not sized correctly runs a real risk of loss in energy efficiency and excessive energy use,” Mr Hakim said. He found that many of the AMS dairies in the study had an oversized compressor. Some also had vacuum pumps that were much bigger than required and most had hot water systems suitable for a conventional dairy, which was bigger than needed for an AMS. “Operating oversize or over-capacity equipment wastes a considerable amount of energy. For example, if you are running a grossly oversized vacuum pump a significant proportion of the energy can be used just driving the pump. “The same is likely for compressors. Studies

in other industries where compressed air is used have shown that as much as 30 to 50 per cent of energy consumption was used to service leaks, artificial demand and system inefficiencies. This warrants further investigation for AMS dairies.” When planning an AMS, Mr Hakim recommended weighing up the savings made in capital outlay — by retaining existing equipment — against the longer-term operating costs. FutureDairy project leader Kendra Kerrisk said although energy consumption was higher in AMS than conventional milking systems, energy consumption was a relatively small part of the overall economics of robotic milking. “Higher energy costs certainly doesn’t mean that AMS is uneconomic,” Associate Professor Kerrisk said. “In fact although shed running costs are commonly reported to be higher, animal health and labour costs are significantly lower on many AMS farms, resulting in a favourable bottom line.”

use, and in general energy consumption tended to be higher in robotic than conventional dairies. “Although our data is fairly limited so far, on average AMS dairies appear to consume about one-and-a-half times as much energy per 1000 litres milk harvested as conventional dairies,” Mr Hakim said. He was cautious about making further conclusions from the AMS energy audits, given the small number of farms involved and the large variation in their energy use. “I’m reasonably confident in our data for conventional milking systems as it is based on nearly 200 dairy farms across three states. But further investigation is needed to understand energy use on AMS farms.”

Shop around Mr Hakim also urged all dairy farmers to shop around for their energy supplier. In the AMS study he found a large variation in the tariff rate charges for peak (22.01 to 36.78 ¢/kWh) and off-peak electricity (8.86 to 19.39¢/kWh). “Previous studies have shown a similar Large variation variation in tariffs paid by farmers with The research found significant variation between AMS farms in the amount of energy conventional milking systems,” he said. “Despite energy costs being a small consumed and the price paid for energy, suggesting there are likely to be considerable component of whole farm operating costs, opportunities for most AMS farms to cut those paying at the higher end of the range energy bills and reduce greenhouse emissions. stand to save thousands of dollars a year by switching to tariffs at the lower end.” The range in the amount of energy consumed on AMS farms was 53.72 to The AMS energy study was funded through 132 kWh/1000 litres milk. Dairy Australia’s project Smarter Energy Use on Australian Dairy Farms, funded by the Mr Hakim said the farm with the greatest Department of Industry and Science as part energy use consumed two-and-a-half times of the Energy Efficiency Information as much energy per 1000 litres of milk harvested as the farm with the lowest energy Grants Program. JUNE 2016

Cuts will lead to job losses Whole community will suffer after prices slashed. Campaspe Shire Council has estimated the direct economic impact to dairy farmers of reduced milk prices, as recently announced by Murray Goulburn Co-operative and Fonterra, at $59 million. Campaspe Shire Mayor Leigh Wilson said the reduced milk price was a real setback for the 492 dairy farmers across the shire. “Dairy farmers make significant planning, operational and budgeting decisions based on an expected milk price, and while farm income is directly affected, the flow-on for job losses is also of concern, estimated at 300 from the dairying sector, or around 20 per cent of the sector’s workforce,” Cr Wilson said. “The further flow-on effect across the region for goods and services will add a possible loss of a further 100 jobs, or approximately 2.9 per cent of the local workforce. The estimated economic impact across the region is estimated at more than $91 million. “The figures are alarming, however it’s not all

doom and gloom for our dairy sector. “We know our dairy farmers are resilient; they have weathered the millennium drought, economic impacts, fluctuating water prices, the highs and lows of the Australian dollar. There is good long-term demand for dairy products and we need to ensure that we support the sector to ensure its future.” Cr Wilson highlighted local government’s role was to advocate to federal and state governments for support for the sector. “We understand there is already an increased demand for services, and council has met with federal and state government representatives seeking broad support to the sector, and will further pursue an increase of resourcing for counselling services to support the demand,” he said. Further, council will advocate to the Federal Government to enter urgent discussions with the major milk processors around the potential to offer them low-interest medium-term loans to enable the processors

Campaspe Mayor Leigh Wilson

to mitigate the impact on their suppliers by increasing the proposed payment for the remainder of the season to a level which will see these farmers becoming more sustainable.

Struggling farmers urged to ask for help Advice and support is available to cushion the blow of the milk price cuts. Dairy Australia’s managing director Ian Halliday spent several days in the northern Victoria in May talking to farmers and service providers after the milk price crash. “The last 12 months have been difficult seasons,” Mr Halliday said. “The milk price has been difficult for many farmers and that is on the back of a difficult season and coming late in the year, with only two months to go. “We are trying to encourage people to work with Murray Dairy to help farmers get a better understanding of their true situations so they can make better decisions.” Mr Halliday was aware of the talk of declining mental health of some farmers. “If there are people looking for help, let’s make sure they are getting the right sort of support,” he said, and acknowledged the work of programs like Looking Over the Farm Gate run by the UDV and VFF. “It’s about farmers looking after one another. “Social events can be quite critical. “Some people can get overwhelmed, and it’s not just farmers but others in the industry, too.” Mr Halliday said Dairy Australia had been rolling out a number of programs helping with the seasonal response for farmers, 50

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through regional development programs like Murray Dairy. “With the milk price drop, and the dry seasonal conditions and access to affordable water, we have been trying to accelerate that. “The whole dairy network is being impacted and we think Murray Dairy is in a good position to assist. “Some farmers may benefit from oneon-one support, but it will be up to the individual farmers to ask for assistance.” Mr Halliday said Murray Dairy would ask if they have the physical and financial data available. “If not, we can give you someone to help you pull that together. That might be Murray Dairy or other people. “Once that is together we will be able to get a farm consultant to provide the one-onone support by going through financial data and then providing a plan for the farm. This is the Taking Stock program. “We will also have some group activities like workshops and discussion groups. “People are looking for support, they are also looking for social contacts and the UDV with Murray Dairy will help out there with community events.

Dairy Australia chief Ian Halliday was in northern Victoria in May.

“It’s not just about business management but about sharing ideas and getting together. “It will be like a triage approach. Some looking for business management support and advice. “Some people will be looking for health and wellbeing support and others may benefit from rural financial counselling.”

Tactics for Tight Times Murray Dairy has increased the delivery of a range of services in response to seasonal and market impacts through the implementation of the ‘Tactics for Tight Times’ program. This includes: Business Assessment and Support Service Designed to help you take stock of your situation by providing free one-on-one business support, to assist dairy farm families to collect and analyse current financial and physical data with the aim of clarifying their future farm business options. Workshops, discussion group activities and on-farm days Focused on business analysis and scenario planning, feed and water budgeting, climatic outlook and cropping/forage strategies relevant to farmers making key decisions on farm. Social and community support programs Including expanding the Victorian Farmers Federation’s “Look Over the Farm Gate” program

Every farm is different, so it is important for you to understand your own situation well. We recommend that you: • understand your financial position • talk with your trusted advisors, family, friends and/or neighbours • maintain regular contact with your financial lenders • maintain your relationship with your suppliers • don’t lose focus of day to day on-farm decisions • think about the people in your business and implications for them Everyone is dealing with a lot of uncertainty, so it’s important to focus on the things in your control. ‘Tactics for Tight Times’ provides you with access to resources and practical advice. You are not alone — seek support — seek advice

To find out more contact Murray Dairy on (03) 58335312 | admin@murraydairy.com.au | murraydairy.com.au