Dairy News Australia - July 2020

Positive outlook ahead: Page 14

Stockfeeds feature:

Page 19

JULY, 2020 ISSUE 117 // www.dairynewsaustralia.com.au

FROM MILKING 32 COWS TO RUNNING A DAIRY FACTORY

Farming runs in the blood of Queensland’s Cochrane family, who have expanded from farm to factory. Page 8

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DAIRY NEWS AUSTRALIA JULY 2020

NEWS // 3

Big Moo will be sadly missed Class action heats up. PG.5

Dairy farm harnessing power of the sun.

PG.7 Joanne Vine from Glencoe in South Australia has been devastated by the death of her 10-year-old steer, Big Moo. Big Moo raised thousands of dollars for charity during his lifetime and was a spectacle as he towered over everything in his paddock.

SOPHIE BALDWIN

FOR MORE than a decade the lives of Joanne

Aussie Reds win hearts and awards PG.12

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and Phil Vine have been enriched by their enormous pet steer, Big Moo. Big Moo might have been earmarked for the freezer when he first came along, but his beautiful temperament soon worked its way into the hearts of the couple and the hearts of many other people, as he went onto become a famous tourist attraction in the Glencoe area of South Australia.

He also had a great community spirit and raised thousands of dollars through cow pat lottery and Moo View days for charities including Stand Like Stone Foundation, Riding for the Disabled and Heartkids.

But sadly Big Moo died last month.

“We are just heartbroken,” Jo said.

“Big Moo was so special and we absolutely adored him.

“We have been touched and overwhelmed by the outpouring of grief, but unfortunately acromegaly made it unlikely he would ever have a normal life span.”

Acromegaly is a condition in which the body produces an excess of growth hormone.

Jo laughs as she remembers the early days with Big Moo, who was a quiet and gentle calf.

“It got to the stage where we said to each other there is no way we can put him in the freezer,” she said.

At the time the couple had no idea he had acromegaly, nor that he would grow to around 190 cm tall (he could be 5 cm each side) and weigh in at an estimated 1.5 tonnes (he was too big to fit in the crush).

Big Moo eventually outgrew the quarterof-an-acre suburban block where he lived, and four years ago the couple purchased an additional — and specialist — Moo block, where he happily roamed around 2 ha.

It wasn’t cheap to keep Big Moo fed, eating his way through $100 worth of lucerne, grain and supplements — every week.

Thousands of people visited Big Moo and he had more than 3650 Facebook fans.

Big Moo might have just been a steer but he brought so much joy to many, many people.

“His tolerance was amazing,” Jo said.

“He dealt with a lot of people across different walks of life and everyone was always so happy and kind around him.

“I think he brought out the best in people and he will be sadly missed.”

DAIRY NEWS AUSTRALIA JULY 2020

4 // NEWS

Dairy inquiry hears harsh truths DANEKA HILL

A SENATE inquiry is under way to judge if the

dairy industry’s deregulation was a success — and all answers are pointing to no.

For the past 20 years Australian farmers have sold their milk into the most unregulated dairy market in the world, according to the Federal Department of Agriculture, often at huge cost to themselves as milk prices weakened.

Aside from judging the success of deregulation, the inquiry is also investigating the integrity of Dairy Australia, if a minimum farm gate milk price is possible, and if the ACCC needs more power within the dairy supply chain.

The vast majority of responses have supported restructuring Dairy Australia, implementing a minimum price on dairy goods at the supermarket shelf not the farm gate, and been in favour of involving the ACCC as a watchdog.

Before the inquiry farmer lobby groups bluntly said deregulation had led to “market failure”.

The ACCC reinforced their view farmers were being taken advantage of by powerful milk processing companies and needed more bargaining power.

And Woolworths told the committee public policy wasn’t acting fast enough to save farmers.

Dairy Connect chief executive Shaughn Morgan said “the actions taken in the coming months will determine whether Australia continues to have a

sustainable dairy industry”.

NSW Farmers’ Association Dairy Committee chair Colin Thompson conveyed an identical message.

“There is a grave risk that a critical mass of dairy farmers will exit the industry, reducing it to a size where it is no longer viable,” Mr Thompson said.

Since 2000, the average dairy farm profit has dropped to $22 818 — less than the national minimum wage of $38 512, according to the Department of Agriculture.

Queensland Dairy Farmers Organisation slammed Dairy Australia in its submission to the inquiry, saying DA did not have any “checks and balances in place” to ensure they were listening to farmer concerns and acting appropriately with dairy levy funds.

“Many farmers are disenfranchised from Dairy Australia and are demanding a complete transformation,” QDFO president Brian Tessmann said, suggesting farmers wanted DA to become more of a rural research and development body.

QFDO said DA’s statistics were also inaccurate because of “bias samples” after they’d received numerous reports of farmers with below average figures or herd size being actively dissuaded from participating in the Queensland Dairy Accounting Scheme.

“Ensuring the dairy industry is properly reconstructed is crucial,” Mr Tessmann said.

GRANTS TO REDUCE ENERGY USE Dairy farmers will receive new Federal Government grants to upgrade their farming equipment in order to reduce energy consumption.

Dairy Connect chief executive officer Shaughn Morgan praised the initiative and encouraged dairy farmers to make use of the program.

“Dairy farmers are able to receive grants of up to $20 000 to upgrade equipment and reduce energy consumption,” Mr Morgan said.

Dairy Connect president Graham Forbes said the funding would be beneficial to farmers wanting to upgrade equipment.

“The grants will also allow producers to invest in monitoring systems to better manage energy use, to run energy audits and to investigate other opportunities for energy efficient activities,” Mr Forbes said.

Australian Dairy Farmers president Terry Richardson said the announcement would relieve pressure on dairy farmers who were facing high production costs.

NEW

“These grants will not only mitigate the excessive cost of energy, but also contribute to the dairy industry’s target to reduce emissions by 30 per cent by 2030,” Mr Richardson said.

Federal Agriculture Minister David Littleproud said the grants would provide financial support at a time when so many in the dairy industry were struggling.

“Energy use in milk cooling, milk harvesting and hot water production is one of the highest overheads in the dairy industry, costing dairy farmers as high as $12 800 per 100 cows each year.”

The grants were announced on June 22, and will be available under the Federal Government’s Energy Efficient Communities Program.

Applications will close on Monday, August 17.

Grant guidelines and application forms for the dairy round are available at business.gov.au, or by phoning 132 846.

“All options, including the ACCC (policing milk processor conduct), should be investigated as a matter of priority in 2020.”

Issues highlighted by QDFO included dairy products being dumped in Australia’s market from countries with subsidised industries, the January 1 dairy code not prohibiting step-downs and exclusivity clauses in farmer-to-processor contracts, and that retailer conduct was not covered in the dairy code.

National advocacy group Australian Dairy Farmers said internationally Australia had lost all previous competitiveness since deregulation due to the unfair playing field worldwide.

The ADF also stressed that the biggest impact to farm profit wasn’t the milk price but rising production costs.

The cost of fodder, water and power is growing nationally and is causing some farmers (particularly those with 150 cows or less) to spend more producing milk than it is worth.

According to ADF, the average farm gate milk price has increased 71 per cent since 2000, while production costs have increased 142 per cent.

The fact that the milk price has failed to keep up with the cost of production has meant many farmers are selling up to salvage their debts.

According to the Federal Department of Agriculture, the average farm’s rate of return in the past two decades by region is: 3.7 per cent for Tasmania, three per cent for West Victoria, 2.4

per cent for South Australia, and less than one per cent for Queensland and North New South Wales.

ADF said farms across the country were operating more intensively and abandoning the cheaper and previously preferred seasonal method of farming for year-round production in an effort to keep afloat.

It means farmers are putting more cows on less land and feeding them fodder to keep them milking at maximum amounts when grass is scarce, rather than drying them off and retiring the farm for a season.

According to the ADF, farming intensively wasn’t a sustainable business choice as the effects of climate change was making year-round farming more expensive.

The department backed the notion.

“Rather than milk prices, it has been input costs that have had the most significant bearing on farm profitability,” the department reported to the inquiry.

The inquiry is expected to hand down a final report in August, provided another deadline extension is not granted.

Murray Goulburn shell company goes into liquidation THE REMAINING assets of former dairy co-

operative, Murray Goulburn, have been placed into voluntary liquidation.

Most of the assets of the once dominating dairy processor were sold to Saputo in 2018, but a shell company remained to finance litigation and pay for the costs of winding up the company.

The company had its roots in northern Victoria in 1950. Before it was sold it had assets of more than $1 billion and annual revenues of more than $2 billion. At its height it was the largest buyer of raw milk and employed several thousand people.

A report to the special meeting on June 26 put the total assets of the remaining company at $264 million, with $259 million of that in cash.

Shareholders will stand to benefit from a distribution within three to four months and a final distribution of the funds in 12 to 18 months.

The company paid $443 million to shareholders and unit holders immediately after the sale of the

company to Saputo.

The company has settled two class actions against it, brought by the Endeavour River Group and the Webster Group.

Murray Goulburn said the Endeavour River claim was settled for $42 million and the Webster action for $37.5 million.

At the extraordinary meeting on June 26, five resolutions were carried including the winding up of Murray Goulburn and the appointment of liquidators. The votes were carried with an overwhelming majority.

Liquidators are John Lindholm and George Georges of KPMG. ASIC is continuing proceedings against former managing director Gary Helou and former chief financial officer Brad Hingle.

A trial date has been set for September 28, but court ordered mediation is ongoing.

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DAIRY NEWS AUSTRALIA JULY 2020

NEWS // 5

Fonterra facing class action FONTERRA AUSTRALIA will be heading to the

courts as soon as next month, with dairy farmers wanting compensation for the money they lost due to the 2016 price claw-back.

The class action case will be run by law firms Adley Burstyner and Harwood Andrews, which are part of Lantern Legal Group and will utilise information generated by the ACCC investigations.

“I’ve looked at the contracts and I’ve listened to farmers and seen 10 months of Fonterra statements saying, with very limited exception, that the $5.60 price will be paid,” David Burstyner, the lawyer running the case, said.

The Supreme Court Statement of Claim asks the court to declare that Fonterra engaged in misleading and deceptive conduct and unconscionable conduct, as defined in Australian Consumer Law, and that Fonterra breached its supply contract, and its obligation to match the farm gate milk price of Murray Goulburn.

“I have seen first-hand a great number of farmers distressed, wanting redress from Fonterra,” Mr Burstyner said.

Former Fonterra/Bonlac supplier of 22 years Bridget Goulding said the class action was a pleasant surprise but one that was well overdue.

“Initially, it literally came out of the blue,” she said.

“We weren’t expecting it and we are ecstatic. “(We’d like an outcome) probably sooner rather than later.

“It’s good to see the papers being served on them as it happened four years ago.”

While the Gouldings have paid off their Fonterra Australia Support Loan and have been supplying ACM’s Girgarre factory for the past 12 months, other farmers are not so lucky and have had to remain with the company until the loans are repaid.

Katunga dairy farmers Tim and Bridget Goulding. Mrs Goulding hopes the class action against Fonterra Australia is the catalyst for getting the fallout from the 2016 price claw-backs sorted.

Katunga’s Paulette and Peter McIntosh, who retired from dairying in June said they fully supported the class action and the comments by Mr Burstyner.

“We always felt that Fonterra’s action in 2016 was nothing more than bloody-minded profiteering on the back of the collapse of MG,” they said.

In response, Fonterra Australia said it had spent a lot of time rebuilding the trust of suppliers.

“The ACCC investigated the 2016 milk price reduction thoroughly and in 2017 it decided not to take action against Fonterra,” a company spokesperson said.

“We’ve done a lot of work with our farmers since 2016 to rebuild trust and transparency.

“Fonterra takes its legal and regulatory obligations seriously and is committed to fully complying with them.

“We will address these claims comprehensively at the appropriate time.”

ACM SUPPLIERS VOICE ANGER AT CONTRACT CHANGES Two Australian Consolidated Milk suppliers have voiced concerns about “unfair” changes to their supply agreements, saying the mandatory code of conduct has left them to fight their own battles.

The issue stems from changes made to ACM’s exclusive fixed-term contracts which previously offered a sign-on bonus for milk the suppliers produced above their agreed-upon volume.

Under their three-year fixed exclusive contracts, a Tongala supplier, who asked not to be named, received their threeyear sign-on bonus in advance, with a reconciliation at the end of each season to adjust the total amount.

They said the bonus represented about an additional $20 000 for the upcoming season.

Yet in an announcement to suppliers on June 1, ACM said it was no longer able to offer a sign-on incentive in the same form due to the mandatory code of conduct.

“ACM has instead developed a new product known as a Committed Advance Payment Loan (CAPL) … repayment of this loan will be made by monthly deductions from the milk cheque payable to you by ACM under your MSA,” an email from the processor said.

The Tongala dairy farmer said they were now expected to pay back their signon incentive for the upcoming season, labelling the change a “claw-back”.

“I didn’t sign it because I wasn’t content with what they were doing,” they said.

“I initially didn’t think that was taking money back … It wasn’t until later I realised and thought: ‘oh my God! Why are you taking that back off me when actually you should be paying it?’”

The farmer said they had taken the

issue to the ACCC and Small Business Ombudsman but were yet to receive a resolution.

ACM commercial general manager Peter Jones said no-one was better off or worse off financially under the new code.

“We have transferred everyone onto the new code-compliant contract. Ninety-nine per cent have signed on; there are a couple of suppliers we’re still talking to,” he said.

“These changes aren’t price related … We expect people to honour their obligations, just as we honour ours, and we’ll continue acting in good faith.”

Strathmerton dairy farmer Greg Brooks labelled the situation “laughable” and said it was a “kick in the teeth”.

His three-year contract with ACM is set to expire in two years.

“How does their right to set a price overwrite my right to set a price and make a profit?” he said.

“If the ACCC says something is noncompliant, why does it not void your contract?

Under the mandatory code of conduct, which was introduced on January 1, there is a 12-month transition period for all existing contracts to become code compliant.

Before the start of 2021, farmers and processors should work together to vary existing contracts to be code compliant or agree to terminate any non-compliant agreement, according to the ACCC. From January 1, 2021 a processor will be in breach of the code if their milk supply agreements do not comply.

The ACCC said it was monitoring the introduction of the new mandatory code of conduct which was designed to address a power imbalance between processors and farmers.

Freedom Foods CEO resigns FREEDOM FOODS, which operates a dairy

processing factory in Shepparton, has lost its chief executive officer, Rory Macleod.

The board announced he had resigned on June 30, only days after the chief financial officer also left the company, and board chairman Perry Gunner has stepped up as executive chairman.

Shares in the food processor had been in a

trading halt since June 25, when the company told the ASX there were some major announcements to be made.

The company has announced it has scrapped 60 positions across the business, involving 40 redundancies, and has had to write down the value of stock by $60 million. Freedom had told the market in May the figure was about $25 million.

Freedom Foods has engaged independent consultants Ashurst and PwC to investigate the company’s financial position.

Freedom Foods makes cereals, snack foods and drinks and in 2014 established a factory in Shepparton, which produces UHT milk for export.

It has factories in Ingleburn, Dandenong and Darlington Point.

Former Freedom Foods chief executive officer Rory Macleod.

DAIRY NEWS AUSTRALIA JULY 2020

6 // OPINION

EDITORIAL Dairy industry facing the same questions in a very different year What a strange year it has been.

Bushfires and COVID-19.

Toilet paper and dairy products flying off the supermarket shelves.

It feels like each week is a month long and we’re only half way through the year.

With the outside world — especially if you’re in Victoria — feeling like a movie it’s reassuring to see the dairy industry continue as it always has.

Each morning across the country dedicated farmers get up and milk their herd.

The tanker driver comes and collects the milk and then off it goes to the processors.

For many in the city they’re not thinking too much about where their milk comes from right now, but as each morning comes again the cycle repeats itself.

Indonesia-Australia trade deal provides savings for dairy exports All tariffs on Australian dairy exports into Indonesia will eventually be scrapped as part of a new economic partnership agreement between the two countries, providing millions of dollars in savings for Australia’s dairy industry�

“As Australia’s close neighbour with strong existing ties with our dairy industry, launching IA-CEPA will enhance the naturally emerging opportunities that are presenting themselves in Indonesia,” ADIC chair Terry Richardson said�

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA- CEPA), which came into force on June 6, will build upon the ASEANAustralia-New Zealand Free Trade Agreement (AANZFTA) by immediately removing existing tariffs on skim milk powder, whole milk powder and grated and powdered cheese�

“This is a positive result for the Australian dairy industry and we thank Trade Minister Simon Birmingham and the Australian Government for delivering this outcome�”

Remaining tariffs on liquid milk will also be phased out by 2033, giving Australian dairy a competitive advantage over major dairy competitors in that market� Importantly, the agreement will also address non-tariff measures� Peak dairy industry body, the Australian Dairy Industry Council (ADIC), welcomed the deal, saying it will create a closer relationship with one of Australia’s largest trading partners�

The IA-CEPA and AANZFTA will together provide an estimated saving of over A$10�5 million in tariffs that would otherwise be levied on Australian dairy exports to Indonesia if neither agreement was in force� Indonesia is a large and growing importer of dairy that is becoming more important for Australian exporters, ranking only behind Greater China and Japan as Australia’s third largest dairy export market on value terms� In 2018–19, Australia exported 56 647 tonnes of dairy to the Indonesian market, valued at A$192 million�

Advertising Max Hyde 0408 558 938 max.hyde@dairynewsaustralia.com.au Editor Alana Christensen (03) 5820 3237 editor@dairynewsaustralia.com.au Dairy News Australia is published by Shepparton Newspapers Pty Ltd� All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher� Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of Shepparton Newspapers Pty Ltd�

Regional editor news@dairynewsaustralia.com.au

And while COVID-19 has impacted global demand and commodity pricing, there’s a greater feeling of positivity around the industry according to Dairy Australia’s Situation and Outlook report.

But the industry remains facing the same challenges as always.

Input costs continue to be a source of concern, there’s uncertainty about whether this season’s milk prices will deliver profitability and it remains unclear how the mandatory code of conduct will play into the future of the industry.

It has already faced its challenges just a few weeks into a new season.

Dairy farmers with existing contracts have entered into the 12 month transition phase until their contracts must be code compliant and are trying to figure out what it means for them.

Are they fighting their own battles? Or is the code there to help arbitrate any concerns?

The transition phase was bound to be a veritable mine field as the practical applications of the code continue to be applied, questioned and tested until the code is fully in place on January 1, 2021 and all contracts and negotiations must occur under the code’s rules.

The mandatory code of conduct was designed to make processors and suppliers more equal, reduce the power imbalance, pave the way forward for a better dairy industry and ensure both farmers and processors acted in “good faith”.

So what does “good faith” mean? That’s becoming the real question.

With a code we don’t really know how it’s performing until we really need to rely on it.

And for some northern Victorian dairy farmers that have needed it so far, it’s not receiving a glowing endorsement.

With the Australian Competition and Consumer Commission continuing to monitor compliance of the code we have only hope the road ahead becomes clearer and less bumpy.

Publisher Shepparton Newspapers Pty Ltd Printed by Newsprinters Pty Ltd Head Office 7940 Goulburn Valley Highway Shepparton, VIC 3630 Phone (03) 5831 2312 Postal address PO Box 204 Shepparton, Victoria 3632 Australia

WWW.DAIRYNEWSAUSTRALIA.COM.AU

Dairy News Australia welcomes contributions from stakeholders in the dairy industry, and particularly from organisations wishing to advance the industry.

Contributions and photos can be sent to: editor@dairynewsaustralia.com.au Letters to the editor on topical issues are also welcome� Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication�

DAIRY NEWS AUSTRALIA JULY 2020

FEATURE // 7

Robots take farm into the future SOPHIE BALDWIN

INVESTING IN a robotic dairy has given

Bulahdelah dairy farmers Kay and John Smith the chance to take their business, Myall River Pastoral Co, well into the future.

Approaching what some would best describe as their retirement years, Kay and John might have retired from the physical act of milking but not the industry they love — the three DeLaval V300 robotic milkers, with provision for a fourth, were installed in January and the couple couldn’t be happier.

“Our investment has given us a new lease on dairying,” Kay said.

“We considered all our options including moving to beef, building a rotary and even selling the farm — but we both wanted to stay in the industry.

“John has so much knowledge and experience and it would be a shame to not find a way to continue.”

The robotic dairy was built on a greenfield site on the NSW mid-north coast property, and is now run in conjunction with the existing 10-aside herringbone swing-over.

The robot dairy is currently milking 110 cows off a milking platform of 100 ha, while employed labour in the herringbone is pushing through 180 cows off 120 ha.

“Our long-term intention is to continue to run both,” John said.

“There is a good synergy between both because not every cow adapts to a robotic system and we have found any cow that has been unsatisfactory has been able to go back to the herringbone — we haven’t had to sell any cows at all.“ The process to expand began about three years ago when the Smiths began looking at their future options.

Son Andrew spent some time in Tasmania on a robotic dairy farm and suggested his parents look at the option.

“I initially laughed and said ‘who is paying?’,” John said.

Once the decision to go ahead with the robots was made, the couple also decided to build offgrid — with not a single electrical wire in sight.

“We knew a robotic dairy used twice the

amount of power and runs 24-hours-a-day, and with milk continually entering the vat the refrigeration costs are quite large,“ Kay said.

The dairy shed is covered in 100 kW of solar panels and the solar room is full of batteries and inverters, which are capable of storing enough energy from one day to the next with minimal generator use in inclement weather.

The back-up diesel generator is capable of recharging the batteries while, at the same time, takes over the supply of power to the dairy.

Even in the cooler and cloudy weather of winter, the generator is only operating for about an hour a day.

“We designed the shed to suit solar panels,” Kay said.

“It is north-facing and the roof is angled to allow the panels to be flat on the roof.

“We also added 10 000 litres of glycol storage. This glycol is cooled during the day to utilise solar energy.

“All pumps are variable speed and a heat recovery unit has been installed to minimise the draw on power.

“In terms of installing the solar system and additional equipment it was about 2.2 times the cost of installing mains electricity, but we project the system will pay for itself in four years — it is weird to not get a power bill.”

The big bonus of the whole system is the consistency in power.

“Power to our valley has been fairly average with lots of dips and surges — this new system is smooth and synchronises to the generator without a glitch,” Kay said.

Transitioning cows across to the robots was relatively simple, according to son Stuart.

“We brought 40 cows across when everything was shiny and new,” he said.

“They were the trailblazers and from that point on we brought 10 down every third day.

“A great benefit we have seen is how much calmer the cows are.

“There is no pressure with voluntary traffic and we no longer have 200 cows standing on concrete waiting to be milked.”

Stuart helped a heifer through the shed for her first time on the morning Dairy News visited.

“She walked in, I guided her to the robot, the

The robotic dairy was built on a greenfield site and the Smiths run the new dairy in conjunction with their existing herringbone dairy.

cups went on and that was it,” he said.

“She will now follow the other cows and in a couple of days she will be fine.”

The milk from fresh and treated cows is automatically diverted away from the vat and after each cow is milked the robot cleans and rinses the cups and the floor to help with infection control.

The dairy shuts down every day for an hour for milk collection and cleaning.

The Smiths have been astounded by the huge range of data the robots instantly supply, including milk per quarter, historical data and the mastitis detection index (MDI), while one of the robots also has an online cell counter.

The availability of this data allows good management decisions to be made.

The milking herd now accesses three pasture grazings a day, and if a cow heads into the dairy without seven hours passing between her last recorded milking time, she will get redirected to a new grazing area by the automatic draft gate.

In the short term the Smiths plan to reduce the milking herd in the herringbone to about 160 and increase the robotic dairy to 240.

The installation of the fourth robot will see that number increase to more than 300.

“We aim to reduce the workload in the herringbone and, while we can keep the cost of staffing the second dairy profitable, we will continue along this path,“ Kay said.

Staff for the whole farm includes two fulltime employees, a trainee and a casual worker.

The addition of the robotic dairy has allowed cow numbers to increase while not having to increase the labour hours. Staff are now able to spend more of their time on the many and varied

Each robotic unit is capable of milking 80 cows. The dairy was built with three robots and provision for a fourth.

tasks on the farm.

The Holstein dairy herd (including a few Jerseys) calve all year round.

It has been important to both Kay and John to consider the environment while running their dairy operation.

They have 3 km of Myall River frontage and a third of the 770 ha farm in untouched bush.

“We worked with the Hunter Local Landcare Service when we built the new dairy and have installed 25 km of electric fencing to create laneways and keep the cows out of sensitive areas including wetlands and river frontage,“ John said.

They have seen the number of farmers in their valley reduce from 12 in the 1980s to just two — and both these dairies are owned by Myall River Pastoral Co. “We have no more plans to increase that number either,“ John laughed.

DAIRY NEWS AUSTRALIA JULY 2020

8 // NEWS

Family expands from farm to factory SOPHIE BALDWIN

IT IS fair to say farming runs through the veins

of the Cochrane family.

John is a fourth generation Queensland dairy farmer; his two brothers and two sisters are all farmers and his wife Margaret comes from a long line of farmers as well.

That love has flowed on to John’s children, nieces and nephews — with 14 out of the 19 next generation also involved in agriculture.

“I guess you could say we are a dedicated farming family,” John said.

That dedication to stay in the industry saw Margaret and John, who farm in Mary Valley (two hours north of Brisbane), purchase Kenilworth Dairies in 2017 — a cheese, yoghurt, mousse, icecream and soon-to-be milk processing facility.

“I supplied Parmalat and sat on the board for 31 years and nine years at the Queensland Dairy Farmers Organisation and it became apparent to me, if I didn’t value-add to my business, our family farm was in jeopardy and we could become another exiting statistic,” John said.

The contraction of the Queensland dairy industry has been significant over recent times with production to drop below 300 million litres this year, with the number of dairy farmers plummeting from 1545 prior to deregulation (2000) to less than 300.

John said while it had been a huge awakening adding processing to their own dairy business, it did give them certainty in their future and hopefully those of other dairy farmers in the area, as production expands at the factory and they can take on additional suppliers.

John and Margaret began their farming journey together as a couple when they leased and later purchased a dairy farm in Coles Creek, milking 32 cows.

“The last dairy farm we purchased was the 17th we had bought over the years — we have bought and sold and traded our way up,” John said.

In 1993 the couple purchased Kevindale — a property located on fertile, flat river country John had been dreaming of owning since he was 11 years old.

Farming is in the blood of Queensland dairy farmer and processor John Cochrane’s family.

DAIRY NEWS AUSTRALIA JULY 2020

NEWS // 9

“ Kevindale was named after Margaret’s brother who was killed in a car accident in 1980,” he said.

“We started out milking 180 cows and, in our peak, got up over 1100 which at one point made us the biggest farm in Queensland.”

These days two other farms, Dagunvale and Moy Pocket, have been added to the Kevindale, portfolio and together 1100 cows are milked across a milking platform of 344 ha.

Dagunvale is home to son Kelvin, wife Ronnie and their three boys: Elijah, Miles and Ryland.

They milk 450 stud cows in a 50-unit rotary dairy, while Moy Pocket was originally leased to specifically provide milk to the Kenilworth factory.

Today Moy Pocket milks about 120 Holstein and Jersey cows and still supplies Kenilworth.

“We run, Holstein, Jersey, Brown Swiss and a commercial crossbreed herd because we are always chasing high quality milk for cheese,” John said.

“We calve all year round to create a flat milk curve, which is important when you supply a domestic market.”

The cows graze pasture all year — kikuyu over summer and rye-grass over winter.

“We have good access to water and can really pump out the grass. One of our main challenges is the cost of power,” John said.

The flat river country has been affected by recent drought, while several floods from 2011 to 2016 also devastated farmland.

John has always taken pride in producing the best quality milk he possibly can, and producing dairy products through Kenilworth Dairies

is now another source of pride.

The Kenilworth Cheese Factory was established in 1952 by the Kraft Corporation to manufacture bulk cheese. The factory was closed in the 1980s, with the move leaving many in the local community unemployed.

Local support saw the factory reopen for business in the late 1980s as Kenilworth Country Foods. It is now in its third reincarnation as Kenilworth Dairies and currently employs more than 50 people.

A recent investment by the family of more than $1.2 million will see the factory bottle milk for the first time, something that has always been another dream of John’s.

“A lot of people are looking to support a true Australian processor,” he said.

“It has been a big investment and not one we have made lightly, but we honestly believe customers want a good quality, local and fresh product.”

John hopes production through the milk line will increase quickly, enabling him to offer other farmers in the region a chance to supply the company.

“When the dairy industry crashed in 2016, we had to temper our business so we could still be here in the future.

“There have been some pretty tough times over the years and the road from owning a small farm to a big one has been full of potholes along the way, but we are dedicated to farming and looking forward to seeing where we go in the future.”

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DAIRY NEWS AUSTRALIA JULY 2020

10 // MARKETS

Better conditions boost confidence SAM LEISHMAN DAIRY AUSTRALIA

THE END of the 2019–20 season has been any-

thing but ordinary.

On one hand, the global economy and commodity markets have been thrown into turmoil following the COVID-19 outbreak.

While on the other, many Australian regions saw a turnaround in seasonal conditions, leading to a recovery in milk production.

Dairy Australia’s recently released June Situation and Outlook report highlights how a timely turn in seasonal conditions has provided a more optimistic outlook for the season ahead, while the social and economic impacts brought on by the spread of COVID-19 continue to pose risks for the months ahead.

Heading into the new season the tables had begun to turn; many regions experienced an early break and indications of ongoing wet weather.

As a result, demand for purchased feed decreased and hay prices eased across the southeastern states.

Despite general improvements, conditions remain varied across the country.

A dry start to the year in south-west Western Australia sustained high hay prices and lowered the crop production forecast (compared to last year).

Meanwhile, limited fodder availability in Tasmania has kept hay prices elevated.

Overall, with more favourable conditions and a return to near average crop production, the outlook for next season’s purchased feed market has improved.

With more manageable input costs, favourable seasonal conditions and a relatively strong farm gate milk prices this season, overall industry confidence has improved.

According to data from the National Dairy Farmer Survey, conducted in February, 44 per cent of farmers were reportedly positive about the industry’s future, up 10 per cent from last year.

Own business sentiment appears to be closely correlated to a farmer’s reliance on the purchased feed market and weather.

Improved confidence and positive weather

developments have resulted in a significant recovery in Australia’s milk pool.

National milk production has increased yearon-year for consecutive months leading to April.

Given the extent and persistence of this turnaround, Dairy Australia has moderated its milk production outlook for 2019–20, to indicate a drop of between one and three per cent, compared to 2018–19.

This would equate to an annual total of between 8.5 and 8.7 billion litres.

The production recovery remains localised to a few regions and is mainly driven by strong growth in Tasmania and Victoria.

In comparison, high input costs have constrained production in other regions, such as WA and Queensland.

As seasonal conditions have continued to rally, Dairy Australia’s initial forecast for the 2020–21 season anticipates a modest rebound in milk production, up between one and three per cent.

While on-farm conditions turned more favourable, the outbreak of COVID-19 has caused widespread market disruption both locally and internationally.

The virus has led to significant change in consumer purchasing behaviour with implications on demand for dairy both domestically and internationally.

Locally, this led to a temporary overall increase in dairy sales, as consumers stocked up pantries and fridges in preparation for restrictions.

Since then sales through retail outlets have stabilised, but demand for fresh milk, yellow spreads, cheese and yoghurt remain elevated.

In comparison, sales of dairy products through non-grocery channels, such as food service, restaurants and cafes have plummeted.

As the non-grocery sectors typically act as a significant value generator for the dairy industry, this drop is likely to impact value creation opportunities throughout the supply chain.

Meanwhile, overseas the ongoing restrictions saw demand for dairy ease, particularly from the food service sectors and price-sensitive markets.

While the initial panic that followed the outbreak has begun to settle, global dairy demand remains under pressure. Particularly as economic outlooks around the world deteriorate and national and per-capita incomes are likely to decrease in many countries.

This is expected to impact demand for premium-priced dairy products.

During this time when global dairy markets have been increasingly volatile, the Australian dairy industry has started to show signs of a timely turnaround.

Sustained improvement to input costs and an increased number of farmers feeling confident about the new season, will be crucial for continued milk production growth for the season ahead.

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THE 300-HEAD milking herd of Buffalo dairy

farmer Peter Young has changed quite significantly over the years.

When Peter made the move to lease the family farm off his parents Ron and Shelia back in 2007, it came with a mixture of Holstein, Jersey and crossbreed cows.

A problem with cancer on the third eyelid in some of the white Holsteins was the catalyst for a change in breeding and one that led him to Aussie Reds.

Thirteen years later he was awarded the highest new Aussie Red herd (30 cows or more) ranked on BPI by The Australian Red Dairy Breed association.

His Aussie Reds already rank as the number 10 BPI herd in Australia and, according to The Australian Red Dairy Breed association, his passion for his cows and attention to detail will see him move quickly up the ranks.

Peter was stoked by the win and is more than happy with his decision to change the majority of the herd across to Aussie Reds.

“Aussie Reds have helped create the exact type of cow I was looking for — medium-sized, barrel-bodied, easy-calving cows with good udders,” Peter said.

His love for the breed was cemented after experiencing a tough spring calving and then deciding to buy an Aussie Red bull sired by Krejstad to put over his heifers.

“I didn’t have to pull a single calf and I was convinced after that,” he said.

About 70 per cent of the milking herd is now joined to Aussie Red and 30 per cent Jersey.

“I have a bit of a mixed grill,” he laughed.

“Some of the cows are light, some are dark, some look like Ayrshires and some look like Shorthorns.

“I have maintained a line of Holsteins so they don’t disappear from the herd altogether, but I do have a blend of everything and quite an interesting colour palette.”

Peter said a medium-sized cow suited his

DAIRY NEWS AUSTRALIA JULY 2020

NEWS // 13

farm and he had no plans to steer away from the Jersey component because he liked having the comparison of the two breeds in the herd.

He also loved the health traits of the Reds, and said they were perfectly suited to his pasture grazing production system.

He rated Krejstad as his favourite sire used over the years, while Botans and VFoske were also successful.

Other influential sires used include Klens, BJurist, Peterslund, Solero, Orraryd, Edbo and VIKBalfa. Current bulls being used are VIKBuckarby, VIKRTokyo, VIKRViolin, VIKRVenom and VRHattrick.

“Most of the semen I use is Viking Genetics which has a focus on Swedish Reds.

“I also like my Jerseys to be heavy-framed so I have two robust breeds; they might not be as pretty as other cows but they are a lot tougher.”

Peter said weather played an important role in the condition of his herd. His property is in the South Gippsland region of southern Victoria.

“I have a wet farm and I need a cow that doesn’t carry too much weight and has a good weight-to-production ratio, which is what I am finding with the Reds.”

The cow graze perennial pasture, with a few annuals thrown in for extra feed for the start of lactation and cutting for silage.

“I grow a summer crop of millet and rape — in a wet summer the rape does well and if it is a bit drier than the millet goes well.”

The herd is split-calving, with the main

proceed ad 129x186 june 20.indd 1

herd starting at the end of July and finished by September.

“The autumn herd just takes some of the pressure off over spring and conditions are more favourable for the calves born in autumn.”

The majority of the herd is AI, but Peter does use Angus mop-up bulls and Highland bulls on the heifers.

Peter is helped on the farm by his sister Maree Young and worker Christina Pawson.

He said dairy farming had been a tough game over the years, which is why he is still leasing the farm.

“The dairy industry is really at a crossroads, we really need a consistent good milk price.

"The collapse of Murray Goulburn caused a real loss of confidence within the industry and it certainly hasn’t recovered.

“To my mind family farms are much better than corporate farms as they are in it for the long haul and want to see it continue for the next generation.”

Currently supplying Saputo, he said he was happy with the company’s opening price.

“Compared to the predictions it was better than I thought it was going to be, although we would always like higher, but this is a doable price this season.

"Saputo have done well considering COVID19, especially when it come to supplying UHT, but we can’t have it both ways because other product lines have backed right off.”

24/6/20 1:51 pm

DAIRY NEWS AUSTRALIA JULY 2020

14 // NEWS

Lift in industry sentiment ONE OF the best autumn breaks of recent times

has supported a significant recovery in national milk production and boosted dairy farmer confidence in many regions, despite the uncertainty in dairy markets due to COVID-19.

That is according to Dairy Australia’s latest Situation and Outlook report, which revealed Dairy Australia is expecting milk production to drop by one to three per cent on last year to between 8.5 and 8.7 billion litres in total, compared to its March forecast drop of between three and five per cent.

While COVID-19 has negatively impacted global demand and commodity pricing due to markedly reduced activity in food service channels like restaurants and cafes, Australian retail demand rose as consumers stocked up on dairy products.

“Better conditions and improved confidence have resulted in a significant recovery in Australia’s milk pool,” Dairy Australia’s senior industry analyst Sofia Omstedt said.

“With more manageable input costs, generally favourable seasonal conditions and relatively strong farm gate milk prices this season, overall industry confidence has improved.”

Favourable weather conditions have supported improved farmer sentiment, as seen by the 2020 National Dairy Farmer Survey included

in the report, which shows that 44 per cent of farmers, as of February, were positive about the industry’s future, up 10 per cent from last year.

A supplementary survey in early May showed about 20 per cent of farm businesses have been impacted in some capacity by COVID-19, including sourcing farm materials.

Western Dairy The region recorded some rainfall in February, however, this was coming off a relatively dry summer.

After easing significantly late in 2019, grain prices firmed again in January and were expected to keep rising due to the export market.

Hay prices increased throughout the first two months of the year but had a more bearish outlook.

Since 2016, confidence in the industry’s future has trended downwards among respondents and this year they are the only region more likely to be negative in the future of their own business than positive (48 per cent and 45 per cent).

The Western Dairy region’s farmers are the most likely nationally to expect challenges with input costs (78 per cent) as well as feed price and availability (73 per cent) over the next six months.

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DairySA South Australian dairy farmers received some rainfall throughout January and February, particularly towards the south of the state.

Hay prices continue to trade at historically high levels but a notable discount to the peak of 2019.

Grain prices eased throughout February, with improved sentiment around pasture growth and this year’s crop.

Farmers in this region are significantly more confident in the future of the industry (57 per cent, was 24 per cent) and their own business (77 per cent up from 36 per cent) in 2020 compared to 2019.

Improved farm gate milk prices and perceived demand for products is driving this uplift in sentiment.

Climate is seen as the greatest challenge for the next six months.

DairyTas North-west Tasmania dried off over summer, although this followed a reasonable season.

Availability concerns drove hay prices to a record level in January before steadying in February, while grain prices remained stable for the month.

Farmers are the most positive about their own businesses (90 per cent) and are also one of the most positive about the future of the industry (56 per cent) thanks to favourable conditions and satisfactory farm gate milk prices.

Almost all farmers in this region (91 per cent) expect to make an operating profit in 2019–20, up from 85 per cent last year.

Over the past 12 months, respondents have been the most likely nationally to increase herd numbers (38 per cent) and to be expanding their business (42 per cent) and they are also optimistic about maintaining ongoing growth in the years ahead.

WestVic Dairy February was relatively wet for the district, however, conditions were expected to dry (slightly) in March.

Grain prices eased notably towards the end of the year, before steadying throughout January and February, while hay prices firmed at the start of the year, as demand temporarily spiked across Victoria.

Favourable milk prices and improved seasonal conditions have resulted in a significantly higher proportion of positive feeling in the future of their own business (72 per cent, up from 53 per cent).

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NEWS // 15

In comparison, only 42 per cent feel confident in the future of the industry.

While concerns with input costs and feed remain reasonably widespread, the proportion of respondents expecting them to be a challenge over the next six months has decreased significantly since 2019.

Over the next six months, input costs, weather conditions, feed costs and availability are expected to be ongoing issues for about half of all respondents in this region.

These challenges have contributed to less than half of the region’s farms making an operating profit in 2018–19 and only 38 per cent expecting to be profitable in 2019–20.

This is the lowest proportion of profitable farms nationally.

Murray Dairy Some rain fell in northern Victoria throughout February and the climate outlook indicates favourable conditions with above average rain for coming months, while hay, grain and irrigation prices eased.

With a favourable climate outlook, input prices looked to be in a bearish position.

Farmers in the region are significantly more positive in 2020 about the future of the industry and about their own farm businesses than they were in 2019, despite ongoing concerns with input costs, climate and irrigation.

Due to challenging conditions and higher input costs, the area’s farmers continue to be among the least likely nationally to expect to be profitable.

GippsDairy Considerable (late) summer rain fell following the widespread bushfires.

Both hay and grain prices began to decrease in the back half of February, as demand from bushfire regions eased.

Positive sentiment about the future of their farm business has increased significantly

Subtropical Dairy

compared to 2019 (76 per cent compared to 56 per cent).

In contrast, only 40 per cent feel confident in the future of the industry.

DairyNSW NSW experienced heavy rainfall throughout February, particularly along the coast.

Overall, rainfall was 104 per cent above the long-term average for the month.

Both hay and grain prices were showing signs of easing in February. However, they continued to trade at historically high prices.

While survey respondents’ confidence in both the industry and the future of their own business remains lower than the national average, recent rainfall in some areas and an improved milk price has significantly increased confidence in their own business this year.

There was a delayed onset to the tropical monsoon season but overall, the state remained dry.

However, indications of upcoming rainfall were emerging when the report was done.

Feed prices remained historically high in February, meanwhile, the summer crop production outlook continued to be constrained by dry conditions.

Over the past 12 months, the confidence in the industry’s future has increased a significant 20 points to 41 per cent and is now in line with national results.

The proportion of farmers confident in the future of their own business is also up significantly (66 per cent, was 27 per cent).

Challenges associated with climate, input costs, feed and milk price remain widespread and this is continuing to impact profitability expectations in this region.

Only half of all respondents expect to be profitable this financial year, a similar proportion to 2018-19.

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DAIRY NEWS AUSTRALIA JULY 2020

16 // NEWS

Dairy bounces back as COVID restrictions ease Increased water availability in the Murray-Darling Basin has provided an improved outlook for dairy farmers heading into the new season.

DAIRY PRICES are rebounding as global coro-

navirus restrictions ease and food service sales resume.

However, Rabobank’s Q2 2020 Global Dairy Quarterly report warns it may still be too soon to assess the true strength of the global dairy market.

The report says the biggest falls in Australian milk production in recent seasons have come from the Murray-Darling Basin production region.

“Favourable seasonal conditions will support milk production growth into the 2020–21 season, bringing national production back above nine billion litres and a return to growth in the exportable surplus from Q2 2020 — for the first time since 2018,”

Forward thinking and a selective breeding strategy allows the Dornaufs to achieve their farm goals.

And every year they’re aiming for more.

Improvement is the name of the game for third generation dairy farmers Nick and Bek Dornauf.

A long-lasting relationship with LIC has helped the Dornaufs develop a selective breeding strategy that suits their Moltema and Quamby Brook farms in Tasmania.

A combination of premium sire AI, short gestation length semen and naturalmating allows them to push the boundaries in genetic gains, tighten their calving spread and address their main breeding objectives. Their four herds of HolsteinFriesians now achieve outstanding milk solid production of 600kg per cow, high fertility and have low somatic cell counts. Strong udder confirmation and careful grazing management ensure they will produce well for a long time, and with an empty rate less than 10% they’re on the right track.

Business is going strong for the Dornaufs, but this doesn’t mean they stand still next year they’ll still be striving for more.

Contact us to learn more about how LIC can help with improvement on your farm.

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There’s always room for improvement

For irrigation dairy farmers in the southern Murray-Darling Basin, flows into the major storages since the start of April provided an increase in water availability, which led to a better foundation for irrigation dairy regions heading into the new season.

The latest Bureau of Meteorology climate outlook for June to August favoured wetterthan-average conditions across all major dairy production regions.

Improved seasonal conditions have slowed culling rates, as Australian dairy farmers look to rebuild stocks.

Purchased feed markets have continued to trend lower since the start of the year, providing margin support for dairy farm businesses.

In Australia, milk is being prioritised for cheese and whey on the back of reduced milk availability.

The reduced availability of milk has led to softer exports, with total exports down six per cent on a volume basis compared to the previous year.

Rabobank senior dairy analyst Michael Harvey said Australia’s milk production recovery in the southern export pool was gathering pace, up 6.7 per cent in April year-on-year.

“Favourable seasonal conditions will support milk production growth into the 2020–21 season, bringing national production back above nine billion litres and a return to growth in the exportable surplus from Q2 2020 — for the first time since 2018,” Mr Harvey said.

Rabobank is forecasting milk production to finish at 8.7 billion litres, representing a decline of just 0.7 per cent, expanding by 3.4 per cent in the 2020–21 season.

DAIRY NEWS AUSTRALIA JULY 2020

NEWS // 17

Dairy experts measure impacts of coronavirus A COVID-19 related dairy crisis has yet to hit

as hard as feared, dairy experts from 70 countries decided during the 21st International Farm Comparison Network Dairy Conference.

Private consulting business Xcheque managing director Jon Hauser attended the online event on June 2 and 3 as the Australian partner representative, and said prior to the conference, there had not been any support for predictions of a low price for 2020 to 2021.

“There is no doubt in my mind that southeast Australian dairy farmers have dodged a bullet because of the mandatory requirement for a minimum price on June 1 and the competitive milk supply environment,” Mr Hauser said.

The views of analysts for the world milk price in 2020 and future markets have not aligned, however, as of early June, dairy future markets expect a fast milk price recovery to reach a level

“There is no doubt in my mind that south-east Australian dairy farmers have dodged a bullet because of the mandatory requirement for a minimum price on June 1 and the competitive milk supply environment.” of US$35/100 kg of milk in July.

IFCN data saw milk production growth at 1.4 per cent was significantly below the long-term average (2.3 per cent) in 2019 — driven mainly

by India, Oceania, Africa and the Middle East.

Meanwhile, the rising popularity of milk alternatives in rich countries and lower milk availability in emerging economies slowed demand growth.

National milk price trends for 75 countries in May compared to February showed milk prices declined by 4.6 per cent on average.

The United States and India could be

considered as the epicentre of the dairy crisis, with drops of 29 per cent and 19 per cent respectively.

Dairy farm economics looked more positive as the world milk price increased by more than six per cent to US$37.3/100 kg in 2019.

IFCN Dairy Research Centre managing director Torsten Hemme said for many farmers in the US and European Union, this milk price was still “too little to live on and too much to die”.

A poll among dairy experts revealed one third considered their country to be at the beginning of the crisis and two thirds thought the bottom

of the crisis had already been reached.

The conference determined real time monitoring of dairy indicators was key, and IFCN will update its research in coming months to help people in the dairy industry to navigate these times.

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18 // NEWS

Dairy farm talks about financing model A SEARCH to find how countries handle

financing young farmers has led Dumbalk North dairy farmer and Nuffield Scholar Damian Murphy around the world, giving him an insight into what needs to change domestically.

As part of his research Mr Murphy travelled to Europe, USA, Canada, Brazil and New Zealand to meet with banks, financial institutions, government departments and organisations involved in policy and advocacy for young farmers, opening the door to a productive period in dairy industry advocacy.

Although farm finance and providing an affordable pathway for new farmers is still an issue the industry grapples with, Mr Murphy was able to use his study experience to highlight the need for new financial models to assist young and beginning farmers.

In Canada he discovered a loan program from Farm Credit Canada called Transition Loans.

“When a young farmer buys land, Farm Credit Canada guarantees the vendor of the property will get the proceeds from the sale of the land directly from FCC over five years. The buyer financed by FCC does not need a down payment

and only pays principal and interest or interest only on the amount that has been paid to the seller,” he said.

“The advantage to a start-up farmer is he or she only pays principal and interest on the amount paid to the owner in that year. So, if the purchase price is $500 000 in the first year the owner gets $100 000 of his $500 000 and the young farmer is only paying principal and interest on that $100 000.

“That helps a huge amount with cash flow and that’s what is really key to a young farmer; just protecting that cash flow situation.”

Mr Murphy believes a bank should take on this transition program in Australia, but also sees merit in setting up a co-financing program where money from agriculture that is in farm management deposits or superannuation is invested back into agriculture to assist young farmers with equity requirements.

“To get into agriculture and progress through you need stock, lease agreements, machinery — anything that’s fairly manoeuvrable — right through to land purchases. Wherever the young farmer wants to go, I’d like to see them

Dumbalk North dairy farmer Damian Murphy.

supported and encouraged with finance, not excluded,” Mr Murphy said.

“I can see that it’s getting harder and harder for the next generation to have the combination of skills and finances to progress in agriculture.

“Some of the best farmers I know and have seen around the world don’t have that family farming background and they should be encouraged.

“In all agricultural commodities we must encourage young and beginning farmers into the industry and provide a path to progress through — because older farmers have a huge amount of assets in agriculture and they’re going to have to get passed on in some way at some stage. If the young farmers aren’t coming through in a position to buy that asset or manage that farm then we as an industry have failed

Despite these concerns, Mr Murphy is upbeat about the future of the dairy industry and is encouraging farmers to consider applying for a Nuffield scholarship.

“It has an enduring benefit; especially with the connections made and the understanding you get of the whole package that agriculture provides in Australia,” he said.

“Young farmers need to learn as much as they can; ask questions, get good professional advice and find a good mentor, and definitely consider a Nuffield. If they have questions about an interest of theirs in agriculture, the answer might not be in Australia.

Applications for the 2021 Nuffield Scholarships are now open and will close on September 11. For more information, visit: gardinerfoundation.com.au/nuffield

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DAIRY NEWS AUSTRALIA JULY 2020

STOCKFEEDS FEATURE // 19

Feed blends to suit all needs CASEY AND Bonnie Taylor from Surrylea Farms

at Heathmere are always looking to develop and progress their transition program and, since 2007, Ridley has played a firm part in the process.

The Taylors have gone from the temporary set-up of feeding pellets in troughs out in the paddock to adding a permanent secondary feed head in the rotary dairy to more accurately manage the program.

And for the past three years, they have been feeding Ridley Transition Blends.

Designed to be fed as a total mixed ration (TMR) or partial mixed ration (PMR), the blends remove the need for mixing facilities on-farm.

The proportions of chopped forages are adjusted according to individual farm requirements, with additional nutrient supplied as pellets.

The pellet range includes energy, protein, mineral or transition feed formulations. Molasses is used in the blends to help reduce separation of the individual ingredients.

“We have seen transition blends as an ongoing

development and progression of our transition feeding program and have been thrilled with the results,” Casey said.

“Our cows are hitting their straps sooner and cycling faster. This season we calved 380 cows within 6.5 weeks with very few metabolic issues.

“Overall Ridley Transition Blends complement our farm and production system.”

Jack Kenny and Pete Kenny from Colac have also been using the blends for more than three years.

“The transition mix has been a godsend and gives me peace of mind,” Jack said.

“There are no milk fever issues and the blend is more beneficial as we don’t need to purchase cereal hay and then lead feed as well.

“Cows are getting in-calf earlier and we have never had so many cows calving in such a tight calving group as we have had this year.”

The Ridley dairy team provides leading-edge nutritional advice to ensure nutrients are supplied to optimise the financial benefit of feeding a balanced diet.

Jack Kenny.

Ridley Transition Blend A TMR specifically formulated to provide the correct nutrient balance for high-performing dairy cows in the transition period. The ration will cover energy, protein, mineral and vitamin requirements along with appropriate DCAD levels.

Heifer Blend A flexible ration for either young cattle as a TMR or PMR or for lactating cattle as a PMR. Feed rates will vary accordingly based on requirements.

Seasonal Milking Blend

Casey and Bonnie Taylor with their children.

variable feed rate. Feed rates vary based on requirements.

Dry Cow Blend Designed to maintain body condition and cover late pregnancy requirements from drying-off until 21 days before calving. This blend can be used as a TMR or PMR. In addition to making grain mixes and pelleted feeds for dairy herds, the Ridley mill at Terang can manufacture a range of blends suitable for all stages of production.

Phone Ridley on its free-call number 1800 100 151.

PMR rations are designed to be used in conjunction with other forages and concentrates at a

TRANSITION CALVES FOR OPTIMUM GROWTH Many of us enjoy a bowl of muesli at the start of the day to deliver sustained energy through a nutritious breakfast.

Those farmers in the know are providing their calves the same opportunity with a roasted calf muesli.

Prepared with the aim of optimising growth and the importance of forming the gut environment, the high-quality protein mix complements milk feeding through to post weaning for dairy and beef calves, advancing the development of their immune system and minimising mortality issues in this crucial time.

Mi-Feed Roasted Calf Muesli ingredients include quality grain and pulses that are clearly visible.

The grains, including maize and barley, ensure the supply of both fast and slower

digesting starch for required rumen development while delivering high rates of weight gain.

Importantly, calves need something that tastes good to encourage fast uptake and transition from being milk-fed.

This includes high-quality digestible proteins, including soybean meal and lupins that encourage frame growth.

The palatability of the calf muesli is further improved by the roasting of the ingredients via the process of micronisation.

Micronisation involves initially steaming the grains and pulses in order to add moisture and soften, followed by intense heating with infrared heat lamps.

The ingredients are then rolled into their final form and cooled before being mixed

M E G A Y IM EE GL AD Y I E L D MEGA FERTILITY M E G A FM EE GRA TY II ELL ID T Y MEGA FERTILITY

with other ingredients into the muesli.

This process provides a nicer mouth feel and makes it easier for the calves to chew.

So how is micronisation assisting the transition to solid feed and driving productivity?

■■ The impact on starch via gelatinisation increases the calves’ starch digestion while simultaneously slowing down its release, reducing the risks of acidosis.

■■

Enhanced protein digestion allows for increased digestion in the intestines and hence improved efficiency.

■■

Reduces the number of bacteria, yeast and fungi in the grains.

■■

Significantly improves the feed’s aroma and palatability.

Mi-Feed Roasted Calf Muesli due to the addition of molasses, further enhancing the feed’s aroma and leading to high voluntary intake.

This great palatability ensures a safe and sustained delivery of energy and proteins required for high feed efficiencies and measurable growth.

Farmers will enjoy the confidence that is provided through a balanced addition of macro and trace minerals and vitamins along with Bovatec to improve feed efficiency, and control coccidia in calves.

All in all, Mi-Feed Roasted Calf Muesli is a great way to start your calves’ day.

Call your local Mi-Feed representative to order on (07) 5454 7777.

Calves also love the sweetness of the

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The link between mycotoxins and endotoxins is detrimental for production DR. TIMOTHY Jenkins, Michele Muccio MSc

While mycotoxin management is well understood in the animal industry, endotoxins are often overlooked, especially in ruminants.

Endotoxins are parts of the membrane of gramnegative bacteria, they are ubiquitous in the environment and a certain concentration of endotoxins is normally present in the rumen as well.

The problem starts when the concentration rises, or when the rumen loses the ability to cope with them, e.g. in the likelihood of a bacterial outbreak, during acidosis or where the rumen is put under stress.

At that point, endotoxins are absorbed by the gut and can enter the bloodstream causing infl ammation, impairing liver health and depressing the immune system.

This affects performance on multiple levels (e.g. reduced growth, feed intake, milk production, and increased occurrence of infl ammatory diseases such as laminitis).

The negative effects of endotoxins are aggravated by the presence of mycotoxins, as the latter

have a similar effect.

Contrary to common belief the rumen microbiota is not fully capable of degrading mycotoxins (except for maybe ochratoxins), thus those compounds can impair cow’s health and milk production by either directly attacking the microbiota or by being absorbed and metabolized by the body.

Some conditions such as heat stress can increase the absorption of both mycotoxins and endotoxins.

This happens as the blood fl ow is directed to the skin at the expense of the rumen, resulting in further stress for the latter that becomes less effi cient at detoxifying those compounds.

Thanks to the combination of EU registered bentonite, enzymes as well as plant and algae extracts, Mycofix® can adsorb most of the endotoxins and deactivate over 200 different mycotoxins.

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DAIRY NEWS AUSTRALIA JULY 2020

STOCKFEEDS FEATURE // 21

Nutrition plan lifts production AS HUMANS, most of us are conscious about

what we eat and put into our bodies, be it from a weight and health perspective or to help us perform to a higher standard.

An athlete knows exactly what and when they should be eating certain foods ahead of a competition or training session, as they know what they fuel their body with will help them to achieve their results or perform at a higher level.

As a dairy producer, have you ever considered that the same nutrition planning rules and methods, could and should apply for your cows?

If you are looking to boost performance and achieve better results in your dairy operation, year-round nutrition planning is one of the first steps you should take.

South-west Victorian dairy farmer Lachie Sutherland milks about 380 cows and also carries young stock.

Mr Sutherland has a strong focus on ensuring his cattle are getting the right nutrition, paired with the right available forage at the right phase of their production cycle.

This type of nutrition planning helps him achieve stronger results from his cattle.

In planning for his cattle’s diet and nutrition needs, Mr Sutherland grows dryland feed, purchases supplement feeds such as grains and hay, and delivers important protein, minerals and vitamins via a range of Performance Feeds supplements.

The combination of available forage, feed and nutrition supplements helps him balance out the animals’ diet during critical production phases and increase his production and profitability.

“Nutrition planning and supplementing at the right time enables us to have a healthier animal,” Mr Sutherland said.

Dairy farmer Lachie Sutherland plans his cattle's nutrition to boost his dairy production.

“By having the cows come into the dairy heavier and in better condition, we see them produce more milk, get in calf earlier and we have also noticed that we’ve had hardly any retained foetal membranes, which is an indication that cows are calving in better condition and are all round healthier.”

Helping Mr Sutherland achieve these results is the use of Performance Feeds’ molasses-based supplement, Anipro, which he uses throughout the mid-late lactation phase.

Anipro works complementary to dry forage and has the potential to result in increased condition and weight gain, stronger skeletal growth in heifers, higher fertility rates and the development of healthier hooves.

Mr Sutherland also uses a product called Prelac.

Prelac focuses on the transition phase by providing cattle with an even amount of anionic salts

Dairy cows consuming Anipro.

to boost production, prepare for successful and healthy calving and subsequent lactation.

Maintaining health and condition during transition will not only help the animal to recovery from pregnancy quickly, but it will give the calf a great kick-start to life as well.

Boost Livestock Performance with Prelac Transition Supplements.

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Prior to drying-off, it is important that cattle are in good condition.

Prelac, by Performance Feeds is a palatable molasses based supplement that provides anions, essential vitamins and trace minerals, such as Avail4 by Zinpro. Conveniently customised to meet your herds’ nutritional needs, Prelac is fully serviced and specially formulated to boost performance in springing cattle during the transitional phase. Ensure that your dairy cattle have sufficient nutrition to maintain condition and grow a prenatal calf by using Prelac.

DAIRY NEWS AUSTRALIA JULY 2020

22 // STOCKFEEDS FEATURE

Dry cow management can improve colostrum quality A DEMONSTRATION study conducted by

leading livestock nutrition company CopRice has shown that careful attention to dry cow nutrition can significantly improve colostrum quality.

CopRice operates a ‘model farm’ in northern Victoria to examine the effectiveness of integrated nutritional strategies and new formulations under ‘real world’ conditions.

Each year, the company implements dozens of projects that aim to optimise animal health, fertility, productivity, environmental sustainability and profitability.

Model farm partners, Fred, Sonyia, Daniel and Ben DeCicco, milk a herd of a high production registered Holstein cows at Undera.

CopRice model farm manager Ellen Fitzgibbon said the provision of high quality colostrum to newborn calves has a direct impact on calf health and growth.

“High quality colostrum provides newborn calves with the building blocks of a healthy immune system,” she said.

“Besides providing a rich source of protective antibodies, colostrum also contains a range of vital hormones, proteins and other nutrients.

“Optimal colostrum intake has been shown to directly influence average daily weight gain of dairy calves during the first 56 days of life.

“This has a range of flow-on benefits, not the least being improved calf survival, lower risk of disease, lower veterinary costs, lower cull rates and a lower age at first conception.

“In effect, a healthy start to life strongly influences the calf ’s ability to reach its full genetic potential.”

CopRice nutritionists measured colostrum quality in 89 spring-calving cows in the model farm herd last spring.

The Brix content of the colostrum samples ranged from 12 per cent to 34 per cent, with 53 per cent of the samples assessed to be high quality (≥22 per cent Brix), 34 per cent medium quality (19–21 per cent Brix) and 13 per cent poor quality (≤18 per cent Brix).

Newborn calves were given two two-litre feeds of high quality colostrum within 12 hours of birth.

Serum samples were collected from these calves to assess the rate of passive immunity transfer.

“Impressively, 91 per cent of calves demonstrated passive immunity transfer, well above the industry level of 70 per cent,” Ms Fitzgibbon said.

“This highlights the importance of feeding adequate amounts of high quality colostrum within the first 12 hours of life.”

The CopRice nutrition team then considered steps that could be undertaken to improve colostrum quality in the autumn-calving component of the herd.

“Dry cow management should be focussed maintaining body condition and improving health and immune function during late gestation and early lactation,” Ms Fitzgibbon said.

“At the very least, a good nutrition program should aim to replace all the macro and microminerals lost during the previous lactation.

“Summer pastures often lack sufficient levels of these essential nutrients.”

The autumn-calving portion of the model farm herd was offered ad-lib access to an innovative loose lick from drying-off until three weeks before calving.

Scientifically-formulated to deliver a balanced source of essential macro and micro-minerals to support mammary involution and immune function in late gestation, the lick contained a rich source of high performance macro-minerals, organic and inorganic micro-minerals and vitamins.

The nutrition program had a marked improvement on colostrum quality.

“Seventy-four per cent of the 78 cows that calved this autumn produced high quality

CopRice model farm manager Ellen Fitzgibbon.

colostrum, which was a 21 per cent improvement compared to the spring-calving group,” Ms Fitzgibbon said.

“Average colostrum quality improved from 22.9 per cent to 23.3 per cent Brix, while the range increased ranged from 15 per cent to 38 per cent Brix.

“Unfortunately, COVID-19 restrictions prevented us from collecting blood samples to check for passive immunity transfer, but we will continue our monitoring program in spring.”

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Fine-tuning fertility in a high production herd A demonstration study conducted by CopRice has shown a holistic approach to nutrition can significantly increase reproductive efficiency in a high production herd.

CopRice is one of the leading providers of nutritional solutions and advice to the Australian dairy industry. The company operates a ‘model farm’ in northern Victoria to examine the effectiveness of its integrated nutritional strategies and new formulations under ‘real world’ conditions.

Model farm partners, Fred, Sonyia, Daniel and Ben DeCicco, milk a herd of a high production registered Holstein cows at Undera. Fertility has long posed a challenge to the profitability of their mixed spring/autumn calving herd. CopRice focussed on five key areas for improvement.

The first objective was to ensure all heifers reached the target mating weight by 15 months of age and the target calving weight and body condition score by 24 months of age. Maximising the growth and development of heifers is the starting point for achieving peak milk production, reproductive performance and lifetime profitability.

The second objective was to maximise dry matter intake during transition and early lactation, with particular attention on delivering adequate dietary protein to the autumn-calving portion of the herd. As with most farms in northern Victoria, the absence of green feed during late summer/autumn can result in protein deficiency in dry cows.

The third objective was managing the body condition of dry cows through to peak milk production to limit the amount of time spent

in negative energy balance. Minimising body condition loss has a significant impact on the incidence of metabolic challenges and maximising peak milk production.

The fourth objective was to support the metabolic and endocrine functions to allow the cows to turn to oestrus and conceive earlier. Optimising blood glucose efficiency supports fertility and peak milk solids production, while supplying bypass fats improves energy density and supports blood progesterone levels, thereby reducing early embryonic loss.

The provision of organic minerals and antioxidants can boost immune function and improve follicle integrity.

The fifth objective was to optimise body condition, health and immune function during late gestation. Central to this is replacing essential macro and micro-minerals lost during the previous lactation to support tissue regeneration, bone remodelling and mammary involution and to boost immune function.

Pastures often lack sufficient levels of these essential nutrients.

The resultant nutrition program in the model farm herd utilised the CopRice’s new Lac Cycle range of dairy pellets, which are scientifically-formulated to meet the unique nutritional needs of dairy cows at different stages of the lactation cycle.

Separate formulations are available for Pre-Calving, Fresh Cow, Peak Milk, Mating, Mid Lactation, Late Lactation and Dry Cow.

Formulated using the latest international research, promote more efficient rumen fermentation, digestibility and feed conversion efficiency to support optimum health, production, fertility and profitability throughout the lactation cycle. Each formulation contains a rich source of metabolisable protein, energy and other nutrients, including vitamins, minerals, a rumen buffer and yeast.

Heifers were reared using the integrated range of CopRice calf and heifer pellets, together with home-grown hay, to deliver an adequate intake of metabolisable protein to support bone and muscle development and allow puberty to be reached as early as possible.

THE RESULTS This demonstration trial confirms that fine-tuning management practices and utilising cutting-edge nutrition technologies can have a significant impact on fertility. In just two years, we have achieved the following milestones: • 100% heifers reached the target joining weight (385 kg) by 15 months of age • 100% heifers reached the target calving weight (660 kg) and body condition score (BCS 5.5) by 24 months of age • The ratio of heifer to mature cow milk production has increased from 77% to 87% • Body condition loss from parturition through to peak milk has decreased from 1.3 BCS to 0.7 BCS • The three-week submission rate increased from 75% in 2018 to 89% in 2019 • The six-week in-calf rate has increased from 50% to 73%

For more information about how CopRice can deliver measurable improvements in the health, fertility and performance of your herd, please contact CopRice on 1800 029 901.

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Bigger is better for calcium salts WHILE THE physical nature of calcium salt-type

fat supplements may initially not seem important, research findings indicate that granule size has a major impact on the degree of rumen-protection of these products.

Research by Volac Wilmar Feed Ingredients at the National University of Singapore has reported significantly higher breakdown of calcium salts of fine granules (<0.5 mm diameter) compared to that of large granules (3–4 mm diameter) across a range of different acid conditions to reflect typical rumen pH values.

Because calcium salts are an industry-standard method of delivering C18:1 (oleic) and C16:0 (palmitic) fatty acids to dairy cows, the implications of these findings are clear — the physical nature of calcium salt supplements is a key factor in the success of delivery of fatty acids through the rumen in their active form.

“Rumen-protection is critical to avoid reductions in rumen fibre digestibility and to ensure delivery of unsaturated fatty acids, such as C18:1, through the rumen to the small intestine for absorption,” Volac Wilmar Feed Ingredients global technical manager Richard Kirkland said.

“In simple terms, we manufacture rumen-protected fats for two reasons,” Dr Kirkland said.

“The first is to protect the rumen from the fat, which allows us to avoid reductions in fibre digestibility. The second is to protect the fat from the rumen to avoid biohydrogenation of unsaturated fatty acids to ensure they pass to the small intestine

for functional benefit.”

In order to optimise cow performance and return on investment through fat supplementation, product granule size needs to be kept in consideration.

“However, particle size varies greatly according to the manufacturing process and different brands display a large range in granule size,” Dr Kirkland said.

“Selecting the Megalac calcium salt brand, which has been manufactured to have a higher proportion of large granules, is an effective way to optimise cow performance by improving fatty acid supply.”

Think about fatty acids, not fat Professor of Dairy Nutrition at Scotland’s Rural College, John Newbold, said ongoing research had highlighted the effects of individual fatty acids on milk yield, milk fat content, body condition score and fertility at different periods of lactation.

“In isolation, C16:0 improves milk fat production and yield, and is most beneficial in mid to late lactation,” Prof Newbold said.

“C16:0 induces insulin resistance to increase the partitioning of nutrients to milk, though appears to have negative effects on egg development leading to reduced fertility.

“By contrast, C18:1 improves digestibility of total fat leading to increased energy supply and is linked to enhanced body condition score.

“C18:1 also promotes egg development, boosting fertility by improving embryo development.

Figure 5: Comparison of PFAD calcium salts dissociation over 24 h at pH6.0.

Dissociation of Megalac products at pH 6 Rumen retention time 35

% of calcium released

24 // STOCKFEEDS FEATURE

30 25 20 15 10 5 0

0

5

10

15

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Incubation time (h) <0.5 mm

1-2 mm

2-3 mm

3-4 mm

Breakdown of calcium salts (release of Ca) increases over time and at typical residence time in the rumen (12-16 hours), breakdown of the smallest granules around 2.5-fold highercalcium than thatsalts of thedissociation larger granules.

Figure 6:was Comparison of PFAD over 24 h

at pH3.7.

C16:0 increase milk fat “To capture the full benefits of C18:1, supple- lactation, Dissociation of Megalac products at can pHeffectively 3.7 ments with higher proportions should be offered production.” in early 120 lactation.”

Return on investment To maximise returns from specific milk con- Dr Kirkland said granule size of calcium salt fat 100 tracts, fatty acids should be selected depending on supplements was a key factor when seeing a return the stage80of lactation, individual farm challenges on investment through targeted fat supplementaand contract requirements. tion “to ensure we maximise the delivery of active 60 For year-round calving herds, targeting specific fatty acids through the rumen for absorption and fatty acid requirements for individual cows is not utilisation”. a feasible40 task.

“Rumen-protected fat supplementation not only However, selecting a multipurpose fat supple- helps meet energy requirements, but also supports 20 ment balanced with an optimum C16:0 to C18:1 specific areas of performance,” he said. ratio is an 0effective way to overcome this challenge.

“But remember — not all fatty acids will support “In the correct ratio, C16:05and C18:1 fatty acids 0 10 15 20 manner and not all cow performance in the same can help balance milk production, body condition Incubation (h) fattime supplements will be digested to the same extent and fertility during early lactation,” Prof Newbold due to differences in fatty acid profile. said. <0.5 mm 1-2 mm 2-3 mm size definitely 3-4 mm matters and when it “Particle “As the cow transitions into later stages of comes to calcium salts, bigger is better.” % of calcium released

DAIRY NEWS AUSTRALIA JULY 2020

The Team Behind Growing Rumens

Bulk Orders | 1300 REID FEED | 1300 7343 3333

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DAIRY NEWS AUSTRALIA JULY 2020

Targets for the five main feeding systems Grains2Milk recommends a series of achievable annual FCE targets for milkin for the 5 different feeding systems, expressed in terms of grams of milks kilograms milk per kilogram of feed dry matter:

26 // STOCKFEEDS FEATURE

Tips to deliver feed conversion efficiency WITH FEED costs such a large proportion of

variable and total costs on a dairy farm, it is important to measure the efficiency with which feed is converted into milk.

Feed Conversion Efficiency (FCE) is a key measure of feeding system efficiency on a dairy farm, impacting on feed cost/unit of milk and milk operating profit.

FCE is also an important factor impacting on a farm’s greenhouse gas emissions.

FCE should always be used in conjunction with other farm physical performance measures, and financial performance measures such as annual milk operating profit and return on assets.

FCE is expressed in terms of the amount of milk produced per kilogram of feed given to your herd. FCE can be measured for the milking herd on an annual basis, or seasonally within each year.

Targets for the five main feeding systems Grains2Milk recommends a series of achievable annual FCE targets for milking cows for the five different feeding systems, expressed in terms of grams of milk solids or kilograms milk per kilogram of feed dry matter: These targets are achievable in well-managed

kgs milk / kg feed DM Feeding system

Achievable target

Take action if less than

1

Pasture + forages + Low grain in bail

1.0

0.9

2

Pasture + forages + Mod-High grain in bail

1.2

1.1

3

Pasture + PMR +/- grain in bail

1.3

1.2

4

Hybrid system

1.4

1.3

5

Total Mixed Ration (Zero grazing)

1.6

1.45

Annual Milker Feed Conversion Targets (including a 60-day dry period) Grams MS / kg feed DM Feeding system

Achievable target 75

Take action if less than

1

Pasture + forages + Low grain in bail

2

Pasture + forages + Mod-High grain in bail

90

83

3

Pasture + PMR +/- grain in bail

100

92

4

Hybrid system

105

98

5

Total Mixed Ration (Zero grazing)

120

109

systems, with minimal wastage, good quality feed, minimal feed gaps and good rumen function throughout the year.

Higher FCE’s are possible using feeding systems three, four and five because they enable higher daily feed intakes to be achieved, provide greater control over feed quality and feed wastage, and allow a more stable and efficient rumen to be maintained.

Higher FCE’s using feeding systems three, four and five systems are essential, given the higher capital and operating costs associated with them.

Measuring FCE on your farm The ‘Pasture Consumption and Feed Conversion Efficiency Calculator’ developed by DPI Victoria with support from Dairy Australia provides the

68

Australian dairy industry with a robust, scientifically sound method for calculating annual pasture removal and milker feed conversion efficiency (FCE) on your farm.

-1-

Strategies to optimise FCE Generalaims to optimise FCE across all five main feeding systems are: ■■ Optimise total daily feed intake; ■■ Maintain high feed quality; ■■ Maintain good rumen function; ■■ Minimise feed gaps throughout the year; ■■ Minimise feed wastage; and ■■ Minimise energy losses • Steve Little, Grains2Milk program leader for Dairy Australia

These targets are achievable in well-managed systems, with minimal wastage, good quality feed, minimal feed gaps and good rumen function throughout the year.

Give your calves the best start you can with Mi-Feed Calf Muesli

Higher FCE’s are possible using feeding systems 3, 4 and 5 because they enable higher daily feed intakes to be achieved, provide greater control over feed quality and feed wastage, and allow a more stable and efficient rumen to be maintained. Higher FCE’s using feeding systems 3, 4 and 5 systems are essential, given the higher capital and operating costs associated with them.

Measuring FCE on your farm

The ‘Pasture Consumption and Feed Conversion Efficiency Calculator’ developed by DPI Victoria with support from Dairy Australia provides the Australian dairy industry with a robust, scientifically sound method for calculating annual pasture removal and milker feed conversion efficiency (FCE) on your farm. This tool can be accessed from the DPIV and Dairy Australia websites.

Specifically designed to meet the requirements of growing dairy calves from 1 week of age.

Strategies to optimise FCE

• Micronised and roasted grains allow maximum digestibility and energy

General aims to optimise FCE across all five main feeding systems are:      

Optimise total daily feed intake; Maintain high feed quality; Maintain good rumen function; Minimise feed gaps throughout the year; Minimise feed wastage; and Minimise energy losses

• Fortified with minerals and vitamins essential for maintaining health and supporting rapid growth

• Molasses for palatability Strategies to optimise FCE can be considered as a set of building blocks, starting with feeding system 1, and building up to feeding system 5.

to help calves accept feed easier and keep eating

On the next two pages are specific strategies for each feeding system developed by Steve Little (Dairy Australia), Ian Lean (SBScibus), Bill Wales (DPI Victoria), Ray King (Dairy Australia) and Peter Doyle (Peter Doyle Consulting).

For more information about our innovative feed solutions call us on 1300 786 253 | castlegatejames.com.au -2-

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DAIRY NEWS AUSTRALIA JULY 2020

28 // ANIMAL HEALTH

Check the herd for digital dermatitis LUCY COLLINS

AS THINGS start to get wet on-farm in many

parts of the nation, be on the lookout for digital dermatitis — also known as hairy heel wart or strawberry footrot.

Often misdiagnosed as traditional footrot, digital dermatitis (DD) is the most important infectious cause of lameness in dairy cattle worldwide and is beginning to cause significant problems in pasture-based cattle overseas.

Traditionally, DD in Australia has not been associated with significant clinical disease and has been considered relatively benign; spreading slowly and with low prevalence in dairy herds.

However, a recent shift in the behaviour of DD in Chile towards a more aggressive form of the disease — causing severe lameness, production losses, increased culling and welfare issues — makes DD a cause for concern locally.

Although the precise causative agent remains unknown and is likely due to a mixed population of bacteria, an invasive species known as Treponema is often identified from DD lesions.

These bacteria survive well in moist,

Different stages of digital dermatitis lesions. Picture: Fabio Lima, University of California, Davis.

contaminated, high-traffic environments such as dairy yards, tracks, feedpads and around troughs.

Prevalence is increased when feet are frequently exposed to slurry for extended periods.

A 2018 Victorian survey of 13 dairy herds (5490 cows) found lesions consistent with DD on 100 per cent of the farms, with an average 19 per cent of cows affected on individual farms.

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have also demonstrated DD presence in these states.

Another Victorian study assessing foot lesions in cows at knackeries estimated prevalence to be about 32 per cent for dairy.

In both Victorian studies, 80 to 97 per cent of the DD lesions were on hind feet. However, not all infected cows have lesions.

Seasonal influence is unknown, although it is suspected that increased rainfall leads to a higher disease occurrence.

The following system has been developed to classify the stages of DD: ■■ M0: Normal skin.

■■ M1: Early, small defined red-grey skin defects <2 cm in diameter, not painful.

■■ M2: Acute, active ulcerative (‘strawberrylike’) or granulomatous (red-grey) lesions >2 cm in diameter, often painful.

■■ M3: Healing stage (usually commencing one to two days after topical therapy), covered with firm, dark, scab-like material. Not usually painful.

■■ M4: Chronic lesions, skin is thickened and proliferative (‘hairy’ or ‘warty’) and several centimetres in diameter and not painful.

Treatment for DD is usually topical. The foot must be cleaned prior to application.

Tetracycline sprays work well, as do backpack spray units containing a non-antibiotic mixture. Both are easily applied during milking to

individual hind feet lesions and have no milk residues.

Bandage application may also be indicated for advanced cases.

Formalin or copper sulfate foot baths as a treatment method have their own environmental and OH&S issues, so use cautiously.

Preventative foot bathing is fraught with danger — if not properly managed they may inadvertently increase the spread of DD within a herd.

Milking time is the perfect opportunity for you to assess the foot condition of your herd.

Hoses are at hand to clean away dirt and good lighting gives you the best chance of seeing lesions.

If DD is a known issue in your herd, regular monitoring is important.

Practising good biosecurity, disinfecting hoof trimming equipment, assessing new stock before arrival, reducing contamination in high traffic areas, and implementing early detection and treatment will give you the best chance of minimising the risk of DD entry or spread on your farm.

Lucy Collins is completing her dairy residency with the University of Melbourne. She works as an on-farm veterinarian in Kyabram with Apiam Animal Health, and alongside her partner on his 600-cow dairy farm in Dixie.

RISK MANAGEMENT AND PLANNING

Dairy News Australia columnist and Kyabram vet Lucy Collins.

DAIRY NEWS AUSTRALIA JULY 2020

ANIMAL HEALTH // 29

Best practice calf welfare a priority DAIRY FARMERS from across Australia

recently tuned in to a webinar on best practice welfare for disbudding in dairy calves, with the high turnout clearly demonstrating the importance industry places on animal wellbeing.

They were joined by resellers, milk processors, dairy industry body representatives, disbudding contractors and veterinarians, showing a clear buy-in from all of industry.

Delivered by Bayer Animal Health as a webinar due to COVID-19 restrictions, the topic was driven by not only farmer concerns for calf welfare, but also to meet evolving consumer expectations.

It’s a factor not to be underestimated, according to Bayer technical services veterinarian Claire Hunt, who presented in the webinar.

“This really is such an important topic in terms of animal welfare, and also being able to show due diligence to our end users, the consumers of dairy products,” Dr Hunt said.

“They are increasingly becoming aware and interested in where their dairy products come from, so we as an industry need to be able to demonstrate best practice and assure them that we are doing everything we can to promote animal welfare on the farm.”

The Australian dairy industry has developed, and continues to update, the Australian Dairy Industry Sustainability Framework to guide the industry’s success in the future.

This framework has been refined into four key commitments, one of which is “striving for health, welfare and best care for all our animals throughout their lives”.

Specifically addressing this commitment is a new industry policy stating that “all calves are to be disbudded prior to eight weeks of age with pain relief” which is endorsed by the Australian Dairy Farmers National Council.

Dr Hunt discussed at length in the webinar about what disbudding/dehorning is, and why it is important for both animal and human safety.

“Dehorned animals are less likely to damage each other, infrastructure, handlers and need less space at feed stations,” she said.

“We also talked about the best practice of disbudding — including considerations on age, animal health, reducing stress when yarding, external factors (weather, flies), feeding prior to disbudding, appropriate restraint, pain relief and post-surgical care.”

The concepts around pain and wound management were highlighted as key considerations

A recent webinar has outlined best practice for disbudding to ensure calf welfare.

for dairy farmers, with Dr Hunt saying the need for pain relief during disbudding should be taken seriously.

As the first and only topical anaesthetic and antiseptic product applied immediately after disbudding, Tri-Solfen can play a key role in pain relief, having been registered for disbudding of dairy calves in 2018.

The use of Tri-Solfen is recommended by leading livestock industries, international retailers, animal welfare groups and welfare scientists.

The product contains two local anaesthetics — fast-acting lignocaine and long-lasting bupivacaine — as well as adrenaline for blood loss reduction, an antiseptic (cetrimide) and a unique gel formulation that seals and protects the wound for accelerated healing.

“We really can do more for calf welfare at disbudding,” Dr Hunt said.

“Some form of pain relief should be given to all calves as a minimum, and Tri-Solfen offers a complete wound management option with pain relief extending to at least 24 hours.

“It’s a case of making sure that as an industry we are promoting best practice and are providing calves with pain relief, so that we can confidently go back to our consumers and say that we are doing the right thing.”

Industry stakeholders, including milk processors such as Saputo Dairy Australia, are playing an important role in this, by seeking commitment from producers to use pain control when disbudding calves.

Saputo’s global Animal Welfare Policy states “the use of pain control when dehorning or disbudding cattle must become a minimum industry standard”.

Saputo Dairy Australia’s team uses the policy

as a tool to educate suppliers in animal care and take a leadership position in the Australian industry on this issue.

Saputo’s animal welfare director Warren Skippon said the company was committed to supporting training opportunities for dairy producers that promote the advancement of animal care best practices, and webinars like this were an important tool for knowledge transfer to the dairy sector.

“We are pleased to see such strong interest in the webinar series, as it indicates the industry is committed to the continuous improvement of animal care,” Dr Skippon said.

“The Australian industry is rapidly evolving to meet the expectation of consumers and the response to this webinar series demonstrates our farmers are as committed as Saputo to meeting the challenge.”

DAIRY NEWS AUSTRALIA JULY 2020

30 // MACHINERY

Sprayer updates will reduce costs PRODUCTIVITY AND innovation-focused

updates to John Deere’s 4-Series Self-Propelled Sprayers will merge greater efficiency, better traction and a quieter ride with the proven performance and lightweight strength of carbon fibre.

Now available to order, key changes to the model Year 2021 line-up include the roll out of John Deere’s CommandDrive all-wheel drive system to the R4038 and R4030 models (already available on R4045 and R4060), and additional enhancements to the optional carbon fibre boom across the entire range.

John Deere Production and Precision Ag tactical segment manager Marko Koelln said the updates would further boost producers’ ability to apply the right product at the right rate and the right time.

“Reducing input costs and maximising productivity are critical to efficiency and profitability, and producers having greater control over the way they run their businesses,” Mr Koelln said.

“Through these changes, John Deere is not only providing optimised operator comfort but also helping to ensure we’re working with our customers to integrate features that have direct impact on their bottom line.”

CommandDrive helps cover ground more easily, allowing operators to travel over hills, wet spots and soft ground.

It is an intelligent powertrain that uses a single hydrostatic pump to power all four variable-displacement wheel motors.

If one or more wheels lose traction, the system adjusts to slow the slipping wheel and directs more flow to the other wheels with traction, to power the sprayer over the terrain.

In addition, CommandDrive works in tandem with the engine and entire sprayer system to automatically increase RPMs when more power is needed and to maintain proper spraying.

The auto mode setting allows operators to maintain selected ground speed and application rate at lower engine RPMs and automatically reduces the engine’s RPM to 900 when the machine is stopped, thereby reducing fuel consumption by up to 20 per cent.

“The addition of flotation tyres can help to further reduce compaction to help farmers get in the paddock sooner and spray later, while hitting tight application windows that can make a marked difference to yields,” Mr Koelln said.

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Key changes to the 2021 John Deere 4-Series Self-Propelled Sprayers include roll out of the CommandDrive all-wheel drive system to more models, and additional enhancements to the optical carbon fibre boom.

control to the forefront with an industry-exclusive nozzle that minimises overlap by controlling product application with individual nozzles rather than the whole section, while AutoTrac Vision and RowSense options offer a higher degree of accuracy for in-row crop applications using a camera or paddles.

Mr Koelln said a further standout feature of the 4-Series update was enhancement of the already high-performing carbon fibre boom option.

“These upgrades include new T6 and T7 rope design, an additional breakaway bumper for more stability, new breakaway strap wear plate

and new breakaway solenoid design to improve fold functionality,” he said.

As with all John Deere products, the updated 4-Series line-up is fully supported by the knowledge and advice of John Deere’s trusted network of dealers.

Orders can be placed with John Deere dealers for delivery in late 2020 or early 2021.

Customers can also take advantage of finance offers and early order programs offering a discount until August 31.

To learn more, contact your local John Deere dealer or visit: deere.com.au/en/sprayers

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MACHINERY // 31

New balers are raising the bar NEW HOLLAND Agriculture continues to

implement improvements to its roll-belt variable chamber balers with silage feeding, net wrapping system functionality and introduction of Intelliview IV large coloured display.

These improvements to the latest generation of this market-leading baler range continues to raise the bar on performance, efficiency and operator comfort.

New Holland fodder conservation hay and forage product manager Sune Nielsen said the company had been an innovator in the roll-belt baler segment for more than 25 years, “introducing pioneering firsts that have changed the way variable chambers operate today”.

More in-field time, increased productivity and continuous day-after-day operation in silage and hay is a focus of the balers.

A new larger diameter roller windguard has been introduced to maximum performance in all crops and allow more compression over the pickup to deliver a more uniform mat of material into the bale chamber for consistent bale shape.

To further strengthen the feeder drive line, an optional radial pin clutch can be fitted in place of the pick-up shearbolt to increase productivity and reduce downtime.

A consistent and reliable net wrapping system is critical to round balers.

New Holland has tweaked its system over the past few years to make this even better in all conditions; changes to the net delivery and net cutting has seen great improvements to the net wrap consistency and ensures edge-to-edge wrapping.

New Holland’s Intelliview IV large colour

New Holland's range of roll-belt variable chamber balers are focused on increasing productivity and reliability.

touchscreen display is now standard on all model Year 2020 round balers, giving the operator fingertip control of all baler functions on the go.

The Intelliview IV has been within the New Holland product range for some time now.

Used on all combine harvesters, forage harvesters, large tractors and large square balers, the display has been a reliable and user-friendly interface.

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DAIRY NEWS AUSTRALIA JULY 2020

32 // MACHINERY

Balers boast new features DROUGHT CONDITIONS across large parts of

Australia prompted a surge in demand for balers in recent seasons.

With that demand expected to continue this year, Case IH has flagged a number of upgrades and new features within its baler ranges.

Case IH Australia/New Zealand product manager for hay and harvest Tim Slater said they expected demand to continue.

“Many farmers invested in a new baler in the past few years as hay and straw production became a vital income lifeline in drought-affected regions,” he said.

“While conditions have certainly eased across some areas, we still expect hay and straw production to remain a popular option for many businesses, with the market for balers and associated equipment to reflect that demand.

“With this in mind, we’re excited about the updates we’re able to offer customers on our model Year 2020 baler ranges, reinforcing the reputation for excellence our large square and round balers have always been known for.”

For the ever-popular and reliable large square baler LB4XL series, one of the most anticipated new features is a new knotting concept that dramatically improves the process.

Case IH has introduced the new-generation TwinePro knotter on all LB4XL balers, including the LB434XL for the Australia/

New Zealand market.

This new knotting concept combines the advantages of the double knot system with the additional benefit of a loop knot.

Key benefits include a reduction in twine offcuts left on the bales, stronger knots with higher tensile strength and improved daily productivity.

“Case IH has been a pioneer of double-knot technology, but no matter how good your product, you have to keep striving to do better and this is what we’ve achieved with the TwinePro knotter,” Mr Slater said.

Other changes include a stronger pick-up system and redesigned rotor cutter tines to improve cutting performance in high volume conditions.

For the RB5 Series round balers, there is now the option for the addition of a fully-integrated moisture sensor, the first time this has been offered for Case IH round balers.

The operator can use the moisture information — as they’re operating the baler — to make an informed decision on the potential quality of the crop and storage options.

“By using a baler-mounted moisture sensor, the operator has real-time information on the moisture of the crop being baled,” Mr Slater said.

“There’s no need to stop baling to probe the bales, as would previously be done with a handheld moisture sensor.”

Improvements and upgrades to the Case IH LB4XL large square baler and RB5 round baler series are sure to impress.

Another significant improvement is the addition of an AFS Pro 700 display monitor, which now comes as standard in the round balers, with the larger screen giving the operator a clearer view of the baler functions.

“With many of the features controlled from the monitor, like bale core size and bale and core density, along with information on the size and shape of the bales, the increase in display size will be welcomed by many operators,” Mr Slater said.

As with the large square balers, there’s also a range of pick-up refinements introduced to the round balers.

The pick-up end flare shape has been revised to improve edge feeding, and a larger diameter wind guard roller and the ability to adjust to a lower position for improved feeding in all crop conditions has also been introduced, with the new design resisting stalling and ploughing of the windrow when compared to narrower diameter rollers.

“These new features and benefits across our baler offering are about enhancing performance and providing increased productivity for our customers where it counts,” Mr Slater said.

DAIRY NEWS AUSTRALIA JULY 2020

MACHINERY // 33

Instant asset writeoff extension welcomed MACHINERY DEALERS have welcomed the

extension of the $150 000 instant asset write-off scheme to December 31, saying they expect it to help boost local businesses.

The extension comes after the threshold for instant asset write-off increased from $30 000 to $150 000 in March, and applies to businesses with an annual turnover of less than $500 million.

Shepparton’s Bertoli Farm Machinery sales manager Paul Watt said increasing the threshold would stimulate the market and benefit farmers who work in Australia’s food bowl.

“Up until the change, if a farmer wanted to buy a tractor worth $80 000 or $90 000 they didn’t have the ability to buy that,” Mr Watt said.

“The $30 000 threshold was only relevant to motorbikes or RTVs but lifting that has allowed farmers to get into a higher asset value and be able to take the tax advantage.”

O’Connors Shepparton sales manager Kim Edgar said the threshold extension would help drive local businesses.

“It’s definitely had a positive impact in some areas and driven business,” Mr Edgar said.

“Supply has become an issue due to COVID19, so it’s a very positive thing the government is doing.

“It extended the buying period which gives us more time to look at things; there’s a positive outlook at the moment with the current prices and the way the season is shaping up.”

The threshold applies on a per asset basis, so eligible businesses can immediately writeoff multiple assets, provided each costs less than $150 000.

Federal Treasurer Josh Frydenberg said the extension would cost $300 million and was expected to help about 3.5 million businesses. “(They) will be able to go and purchase equipment or machinery, tools, up to a value of $150 000 — as many times as they want — and then write it off,” he said.

The news comes as tractor and machinery sales boomed for the third month running.

Tractor and Machinery Association of Australia executive director Gary Northover said improved weather and the increase in the instant asset write-off program had led to the boost.

“Tractor sales reported a year-on-year increase of 30 per cent for May and are now 12 per cent ahead on a year to date basis,” Mr Northover said.

“Around the states, huge lifts were once again seen in all eastern states; Victoria continues to flourish, up another 32 per cent on the same month last year, now 24 per cent ahead for 2020.

“NSW was again up 38 per cent for the month, now 12 per cent up year-to-date.”

Mr Northover said the recent sales would give some comfort to dealers after a “torrid” couple of years.

“The news on the weather front keeps getting better and demand for commodities remains extremely strong, even despite some trade tensions with China,” he said.

The 100 to 200 hp (75–150 kW) category leads the way with another strong month up 60 per cent, up 31 per cent for the year to date.

“The strength in the horticultural space is having a big impact on demand for this range, strongly supported by the financial incentives in place,” Mr Northover said.

“The under 40 hp (30 kW) range, was up 16 per cent for the month and now sits 5.6 per cent ahead for the year-to-date.

“The 40 to 100 hp (30–75 kW) range was again up strongly 39 per cent, now nine per cent ahead

The instant asset write-off scheme has been extended to December 31

for the year, and the 200 hp (150 kW) and above range dipped 13 per cent for the month and is now seven per cent behind year-to-date.”

However, sales of combine harvesters have effectively stalled with very few sales completed in May and the outlook still subdued.

“Whilst there continue to be encouraging signs of a return to grain planting activity, which will ultimately lead to harvesting, meaningful demand for new harvesters is still a fair way off,” Mr Northover said.

The expanded instant asset write-off took effect in March and applies to businesses with annual turnovers of up to $500 million, up from $50 million.

Assets can be new or second hand, and must be used or installed by December 31.

Businesses can benefit from the instant asset write-off multiple times.

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DAIRY NEWS AUSTRALIA JULY 2020

34 // MACHINERY The Henty Machinery Field Days have been cancelled.

Henty Machinery Field Days cancelled THE HENTY Machinery Field Days will not

proceed this year due to COVID-19, the event’s board has announced.

Henty Machinery Field Days chief executive officer Belinda Anderson said the unknowns for large mass gatherings beyond the Federal Government’s stage three roll-out of restrictions made organising and planning the event difficult.

The Henty Machinery Field Days is the nation’s largest field days and outdoor agricultural event, with an economic value of more than $92 million and were due to be held on September 22 to 24.

“It has become apparent the field days will not be able to go ahead in 2020,” Mrs Anderson said.

“Without a clear path to the end of this pandemic and the full easing of social restrictions, the obstacles to running a successful, and more importantly safe Field Days, were insurmountable.

“We are a national event and with state borders closed we would disappoint all our exhibitors from interstate along with the many visitors we have who attend from around the nation and overseas.

“This has been a difficult decision for organisers knowing it would disappoint all of our stakeholders, including members, staff, sponsors, exhibitors community groups and visitors.”

Mrs Anderson said the HMFD Co-operative would use the time provided to improve assets to ensure a bigger and better experience at the 2021 event on September 21 to 23.

“We thank everyone for their support and patience while we deliberated on the decision,” she said.

“This has been a difficult decision for organisers knowing it would disappoint all of our stakeholders, including members, staff, sponsors, exhibitors community groups and visitors.”

“The field days have been cancelled twice in their history due to economic recession in 1970 and 1971, and regrettably the HMFD Board was forced to make the call this year.

“We are devastated for the region, our volunteers, the 22 community organisations, thousands of exhibitors and tens of thousands of visitors — it will be sorely missed.”

Mrs Anderson said the HMFD team was now busy investigating options for a virtual format of the event in September with more information to be released at a later date.

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