Dairy News Australia June 2012 by Rural News Group

Eight page calf rearing feature Pages 22-29 MASSEY FERGUSON Small and nimble Page 32

ROBOTIC ROTARY Automated milking in Tasmania Page 20

june, 2012 Issue 26 // www.dairynewsaustralia.com.au

PRICE CUT World supply glut hurts opening price PAGES 3-4

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Dairy NewS AUSTRALIA june, 2012

news // 3

Lower price from cautious Fonterra Gippsland farmers Luke and Mel Wallace sold Jersey heifers to $16,500 at their onproperty sale. PG.18

QLD farmers Victoria and Scott Menkins have invested $40,000 in calf rearing facilities since 2009. PG.22

Barrie and Angela Molloy upgraded to a Kymco UXV 500 utility vehicle and haven’t looked back. PG.31

News ��3-15 Opinion ��16 Agribusiness ��17 Breeding ��18-19 Management �� 20-21 calf rearing ��22-28 Animal Health �� 29 Machinery & Products �� 31-33 motoring ��34

The first new season price announcement has confirmed rumours that farmgate prices will be less than last season – with Fonterra announcing its opening price will be in the range of $4-$4.30 per kilogram of milk solids. However, results from the latest GlobalDairyTrade auction and encouraging statements from dairy Australia regarding strong global demand suggest processors are being cautious, not pessimistic. Fonterra released a statement saying it expected the final farmgate return for 2012/13 to be 15 cents/kg MS either side of $4.75/kg MS. Last year, the company opened at $4.65/kg MS and is currently paying $5.30/kg MS. Fonterra Australia managing director Simon Bromell said global supply and demand played a key role in the company’s market outlook for 2012/13. “Globally, strong milk production has now run ahead of demand since early this year, which has created a short-term surplus of milk,” he said. “This has in turn caused commodity prices to soften. Currently demand has eased slightly as the global economy slows, but we expect this to recover into 2013. “As always, we will monitor market dynamics closely through the season and provide regular updates on farmgate prices in our bi-monthly reviews.” Bromell said Fonterra was aiming for the upper end of their forecast. “Currency and commodity prices are moving quickly at the moment and these will be the key factors in determining the opening price.” In its annual Situation & Outlook

The international dairy market has experienced significant falls over the past six months, putting pressure on farmgate prices.

Fonterra expects final farmgate return to be 15 cents either side of $4.75 per kilogram Milk Solids. report released last month, Dairy Australia believes full year southern prices for 2012/13 will be in the range of $4.50-$4.90/kg MS. This is based on current market conditions and the short term outlook. Dairy Australia manager strategy and knowledge Joanne Bills said there had been a complete switch between demand and supply on the

international market. “In the past few years price increases have been driven by demand, now this has reversed with additional supply driving prices lower,” Bills said. “In the Southern Hemisphere we are seeing lots of clearing of stocks as the season comes to a close, while the Northern Hemisphere is gearing up for another year of strong production. “Buyers are remaining cautious, waiting to see what happens with prices rather than buying ahead and securing supply beyond their immediate needs.” The international dairy market has experienced significant falls over the past six months and this has put downward pressure on farm gate

prices. However, in recent weeks, the Australian dollar has weakened, providing a ray of hope. Dairy commodity prices at the first GlobalDairyTrade auction of the month rebounded an average of 13.5%. Murray Goulburn managing director Gary Helou said it was pleasing to see a lift in prices at the GlobalDairyTrade auction but the cooperative was cautious about market volatility and needed to watch for a trend to emerge. “We concur with industry forecasts that opening milk prices are likely to be lower this year,” he said. Murray Goulburn’s fourth step-up for the current season lifted the price to $5.44/kg MS.

Dairy News AUSTRALIA june, 2012

4 // news

Rising global output squeezes local prices Increased world milk supply has given international buyers the upper hand in the global market and the Australian dairy industry is feeling the effects. The 2012 Dairy Australia Situation and Outlook report released last month shows underlying demand is still strong in international markets but it is insufficient to absorb the current growth in supply. Operating conditions for most Australian dairy farmers have consolidated in 2011/12 and national milk production has grown significantly for the first time in a decade. National output is expected to hit just under 9.5 billion litres this season up from 9.1 billion

last season. Despite national production benefiting from favourable seasonal conditions in south-east Australia, the same or better conditions have prevailed in all major exporting regions, resulting in an extra 7.4 billion litres produced in 2011, and an additional 6.2 billion litres forecast for 2012. This compares with a total production increase for these regions of 5.3 billion litres for 2009 and 2010 combined. DA managing director Ian Halliday said this time last year, manufacturers who were not seeing sufficient returns from the local market had a fairly strong export market. However, export returns are

currently being curbed by ample supplies in international markets pushing prices lower, as well as a continuing strong Australian dollar. “Despite this, demand in export regions is still solid and exporting companies are still keen to keep throughput up in the factories and strong competition for milk supply is expected in the coming months.” Dairy Australia manager strategy and knowledge Joanne Bills said the price of butter and milk powders had been particularly hit hard because of the amount of supply on the market. Butter prices had fallen around 34% in the past year while milk powders were down 20-25%.

“However, the positive for the Australian dairy industry is that cheese has remained reasonably stable, which is where our product mix is focused,” she said. The international economic uncertainty means that there is still some risk for demand, although the key emerging markets responsible for growing consumption have a much healthier outlook than Euro zone countries. “In terms of the international market impact on our domestic market, it means that margins will remain under pressure, which means farmgate prices for farmers will lower in Ian Halliday 2012/13,” Bills said.

Dairy prices will bounce back Coles plans to work with WA farmers

THE DROP in dairy prices globally is an “overreaction” to exceptionally strong supply, says Fonterra chief executive Theo Spierings. He believes prices will come back stronger than analysts are saying. Many producers in Europe and the US will not be able sustain production with the present returns, he told the DairyNZ Farmers Forum in Hamilton. Referring to the drop in the New Zealand forecast farmgate price from NZ$6.35 to NZ$6.05 for this season and down to NZ$5.50 for next season, he said he very much regretted this announcement coming so late in the season. “We have seen a drop of 20% in the GDT over the last few events,” he says. “I think this is an overreaction by the world. People are seeing how good the supply signs are at the moment and that is why commodity prices have come

down about 20%. “Our forecast is 5%, that is why we are seeing the current payout drop from $6.35 to $6.05. “Demand is still very very strong all over the world, but supply has been exceptionally strong.” Spierings said New Zealand production alone was up 10% and in his 25 years in the industry he had never seen all continents having such favourable conditions all at the same time. He said information from Europe (before last week’s GDT) showed some prices were under cost. “A lot of people around the world cannot cope with these price levels. “People will start drying cows, supply will come down in the US and Europe because they can’t afford it. That’s when we will see a reset of the market. That is why we are more opti-

mistic going forward than the analysts. “I don’t see a lot of inventory buildup around the world, I don’t see governments in US and Europe acting [to intervene] like they did before, so inventory levels are under control. If supply comes down and demand is still strong that’s good news. And in my opinion prices will come back faster than the analysts are saying.” Spierings says the New Zealand dairy industry is the best place to deal with global volatility. “We don’t have to amend our system drastically if the market moves up and down. In Europe and the US people have to change their model or dry cows and stop milking. “We are well placed but we are living in a volatile world and this volatility we are seeing at the moment. But I think it will recover pretty fast.”

The penny has dropped with Coles, with the Western Australian Farmers Federation saying the supermarket now realises the effect its cheap pricing will have on long-term milk supply. WAFarmers met with representative from Coles early this month to discuss the future sustainability of the Western Australian dairy and livestock industries. WAFarmers President Dale Park said after long running discussions, it was now apparent that Coles was receiving the message. It was looking for strategies to improve the long term sustainability of the WA dairy industry. “We welcome Coles’ commitment that better farm gate returns are fully taken into account in cost price nego-

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tiations between Coles and its milk processors in line with rise and fall clauses in supply contracts,” Park said. “Coles has also indicated that they are eager to work cooperatively with WAFarmers in implementing the recommendations made in the Wesfarmers-commissioned ‘Fresh Opportunities’ Report.” Park said this was positive news for the dairy industry. “As a result of WAFarmers lobbying, Coles recognises that the domestic market is the backbone for the WA dairy industry and is committed to the ongoing viability of the domestic sector,” he said. “It is important for retailers to be aware of the pressures that producers are experiencing within their operations.”

Dairy NewS AUSTRALIA june, 2012

news // 5

Going with the flow means hard times in the north Gordon Collie

Queensland dairy farmers face some hard management decisions flowing from the southern migration of milk processing capacity. A flattening in the year-round milk intake curve is the focus of new contracts offered by Parmalat as the company seeks to more closely match supply to the fresh market.

“Absolutely it will be tough. Queensland is now basically a market milk state,” said John Cochrane, chairman of Parmalat supplier group Premium Milk. Traditional farming systems are exposed to seasonal milk fluctuations both in terms of variable feed quality and natural calving patterns. “People are having to change the way they farm and it’s difficult to believe there will be a proper market price that

reflects the extra cost to produce our product,” Mr Cochrane said. To flatten the supply curve, more cows would have to be calved in January during the summer heat and humidity. Pasture production also follows the summer dominant rainfall cycle with the need for more grain-based and silage feeding adding to expenses. Cochrane said the supplier group had negotiated new three year contracts from January 2012 at a locked in

price with the trade-off a 3 cent price cut. A minority of growers had elected to continue on existing contracts to the end of this year and Premium Milk was expecting to enter price negotiations on their behalf in September-October. From next year, the payments system will progressively be harmonised on milk components, starting with 40% based on components and 60% on litres. With the fluctuation tolerance of premium price milk to be narrowed,

the supply group had negotiated a new system of transferability to allow Parmalat allocated demand to be traded among farmers, even on a short-term basis. “The bottom line is that the changes will add to the expense of milk production, but we had to be mindful of keeping Parmalat competitive in a tough market. “In the many years I’ve been on the Premium Milk board we’ve always been able to come to an agreement, even if we are not happy about it,” Cochrane said.

Supply arrangements add to cost of milking Gordon Collie

More than a century of dairying in Queensland could soon be consigned to history with the Drynan family considering an exit to focus on their extensive beef enterprise. New milk supply arrangements which will add to the cost of production could be the last straw for Warren Drynan who farms Glenapp in the Rathdowney district, south of Beaudesert. The family is now down to a single dairy operation milking around 190 cows. At their peak, they had several enterprises with around 700 milkers. “We’ve built up our beef interests over a number of years on the cash flow dairying. Now the beef income is carrying our dairying,” Drynan said. His three children Angela, Cameron and John see their future in beef with his sons operating integrated properties in western Queensland.

“We’ve scaled the herd back to numbers we can feed ourselves with minimal buying in of grain and cottonseed meal,” Drynan said. “We get a big variation in our milk flow from seasonal pastures. To level

“Moving more to calving during the summer months has herd health implications.” the supply across a lactation would mean a lot of changes and added costs. Frankly I just don’t think the rewards are there.” Their feeding system is based on strip grazing ryegrass and clover pastures with lucerne grown for hay and corn for silage. Kikuyu and Rhodes grass pastures are oversown with oats for spring feed.

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Silage is fed year round with minimal amounts needed from August on as pasture growth comes away. With an abundance of feed coming out of winter and into spring, the herd will average 25 or 26 litres a day. But production drops down to 18 to 20 litres between February and April. Most of the herd calves from mid March to June to take advantage of peak feed supply during early lactation. “If we have to move more to calving during the summer months it has herd health implications in humid and wet conditions. “And at the same time we are having to meet more stringent cell count requirements,” Drynan said. “I’m fairly pessimistic about our future in dairying. There is just too much pressure to meet new requirements and absorb mounting costs. “Our option is give milking cows away and build our beef enterprise to about 4000 cattle,” Drynan said.

Queensland farmer Warren Drynan says new milk supply arrangements will add to the cost of production.

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Dairy News AUSTRALIA june, 2012

6 // news exports

Australia can’t meet Chinese heifer demand RICK BAYNE

Australia is struggling to keep

up with demand for export heifers and has been forced to look overseas to fill the gaps. Export companies are sourcing heifers from as far afield as New Zealand and Uruguay to supplement local stocks to meet the demand, particularly from China. The supply shortage has also led to higher prices for heifers but the industry is warning these are not likely to be sustainable. Elders International Group general manager Tony Dage said demand for heifers remained strong, particularly from China, and supply continued to be the key challenge. “We continue to source more cattle outside Australia to meet demand and this diversification of procurement will continue,” he said. New Zealand, Uruguay and the USA are the main procurement areas outside of south-east Australia, while Russia, Pakistan and Turkey follow China as core customers. Elders International Trading will trade about 70,000 dairy and beef

breeding animals across the globe this year, about 40% more than last year. “We will move about 40,000 Holstein/ Friesian cattle this year,” Dage added. The price received by farmers has been progressively increasing over the past two years in response to the increased demand in all supply markets. Recent dairy orders bound for China out of Portland in Victoria have averaged $1400 per head for Holstein cattle. China wants unmated heifers and the market ranges from 8-17 months old and 200-400kg live weight. However, Dage warned that current prices were not sustainable. “Cattle pricing will need to, and in my opinion, adjust back to levels that encourage our offshore customers to stay committed to us. We are getting resistance from off-shore customers now and we need to be very sensible to ensure the volumes continue and the market is sustainable,” he said. Elders International Trading is predicting the core Chinese market to remain solid over the next few years “assuming we see some of our costs of procurement reduce”, Dage said. The Chinese Government is focused

Recent dairy orders bound for China out of Portland, Vic, have averaged $1400 per head for Holstein cattle.

on pedigree and bio-security and Dage believes Australia can continue to deliver to meet the country’s needs. Landmark Global Exports general manager – livestock, Graeme Turner, said the price for heifers “has to come down”. Turner said prices had peaked at up to $1600 but would likely end up between $1200 and $1400. “Prices for the last six months have

been outrageous. The Chinese are now starting to stand their ground on prices and look to other countries such as New Zealand and South America,” he said. New Zealand cattle are now on their third or fourth lactation and are producing well. “Overseas countries like to buy Australian cattle because they are disease free, but we have to be careful to not price ourselves out of the market,”

Turner added. Dairy consumption in China is expected to double over the next decade as the country aims to be 80% self sufficient in food and agriculture. China is undertaking a massive expansion of its agricultural production, including subsidies for new farms and support for importing genetics to boost production. Dairy Australia manager strategy and knowledge Joanne Bills said international demand remained strong for Australian heifers. China accounts for more than 70 per cent of Australia’s heifer export market and had increased its proportion of the market by nearly 10% over the past year, she said. “China is by far our biggest market and its demand continues to grow,” Bills said. “China is looking for high quality animals with a fair degree of pedigree and providence.” China was building up its internal capacity and at this stage their production system was based around Friesian genetics, she said. Elders International Trading says it is also receiving strong enquiries from new markets.

Young heifer sales boost local cash flow Rick Bayne

More Australian dairy farmers are selling heifers at an early age to boost their cash flow. Farmers are turning to export traders for the transactions in a trend that is restricting moves to rebuild milking cow numbers. Dairy Australia manager strategy and knowledge Joanne Bills said the national herd has remained stable at 1.6 million for about five years. Bills said the latest National Dairy Farmer Survey revealed more farmers

are selling heifers to traders at a younger age. “In the current climate they don’t want to take the risk of holding on to them and feeding them for a few years in the hope they can join the herd,” Bills said. “From an industry perspective we would be happy if farmers were confident that they could get a return in the future and recover their costs, but I can understand why they would be wary given the conditions of the past decade. “It is proving challenging for national herd re-building.” Bills said farmers were looking at

young heifer sales as a new and integral part of their business model to generate a stream of income. “They are looking to sell earlier to help their cash flow. The heifers are identified for the export market and are sold to specialist rearers who get them to the right age for export.” The 2012 survey showed the proportion of heifers sold was double the previous year at 10% of the total herd. Farms in Western Australia and Tasmania reported the highest sale rates at 20% and 18% respectively. However, the 2012 Situation and Outlook report shows dairy heifer

exports for the 12 months to February 2012 fell 8% to 70,300 compared to the same period last year. Bills said the survey showed absolute numbers were down but a higher proportion of farmers were selling some heifers, even if they were not immediately exported. The numbers are expected to have again increased in recent months due to farmer concern about next season’s milk price. The survey showed 31% of dairy farms sold heifers. Some 80% of sales were destined for the export market and 20% were sold domestically.

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Dairy NewS AUSTRALIA june, 2012

NEWS EXPORTS // 7

Export genetics to ease pressure Rick Bayne

Exporting technology and genetics

could ease the pressure on Australia’s heifer export market. VicStock managing director Will Crozier said demand for heifers was

still strong, particularly from China, but supply was very limited and often restricted by customers’ regulatory requirements. Crozier said Australia could seek to broaden the types of cows being offered for export or encourage greater use of home-grown technologies

Vicstock extends global reach Geelong-based livestock agency Vic-

stock has established Vicstock Global Exports to streamline its international and Australian divisions. The new export company will be headed by Vicstock operational manager Tom Hunt and will incorporate the sale and supply of dairy genetics to some of Asia’s biggest dairies, as well as the traditional live heifer trade. “We intend to supply customer specific product to the niche markets, of which we are seeing demand right across the world, not just Asia and China,” Hunt said. Vicstock Global Exports will be the principle point of contact between Vicstock International and the Australian branch. “We will be connecting our Vicstock International company straight into Victoria and Tasmania’s farms to source some of the best cattle for our overseas customers, to ensure a steady demand and top dollar for our clients here,” Hunt said.

“There is still a long way to go before everything is running smoothly, but our aim at Vicstock Global Exports is to ensure we deliver the best cattle, genetics and back up service to become the leaders in customising and fine tuning our international clients’ herds.” Vicstock principal Will Crozier said Hunt was working on supply and quarantine issues in Australia and hoped to receive their first confirmed order shortly. “We will be able to customise orders and go a long way to meeting their criteria for price and quality. “The days of putting together boat orders for 3-5000 head are long gone, you can get the order but can’t get the cattle, or if you get the cattle you have a tough time getting all of them to meet the specs,” Crozier said. Vicstock Global Exports and Vicstock Pty Ltd are Australian registered companies whilst Vicstock International is registered as a BVI (British Virgin Islands), Hong Kong company.

Vicstock will look at utilising air freight for smaller, speciality orders to Asia.

and genetics in overseas markets. “We are struggling to keep up with the current demand,” he said. “One of the solutions might be to try to introduce other cross-breeds but that is restricted at the moment due to customer requirements.”

“I think there is an increasing market for greater use of Australian technology and genetics.” – Will Crozier Taking advantage of Australia’s technical advances could provide long-term answers to the

local heifer export shortfall. “I think there is an increasing market for

greater use of our technology and genetics,” Crozier said. “However, we would need to be careful in what we send and make sure there is proper follow-up to get the programs off the ground. “China has the biggest demand and they would be comfortable with our

genetics and technology.” Crozier said the biggest impediment would be the time lag in the overseas markets seeing results from the new technology. China has indicated it will underwrite the cost of importing new genetics to boost its production.

Dairy News AUSTRALIA june, 2012

8 // news

New Basin plan ‘no different’ The Australian

Dairy Industry Council says the Murray Darling Basin Authority has shown contempt for regional communities with the release of the Basin Plan. ADIC chair Chris Griffin said it was little different from the damaging guide to the Draft Basin Plan released in 2010. “The new MDBA chair Craig Knowles last year assured regional communities that he wanted to

work with them to come up with a Basin Plan that genuinely balanced environmental, social and economic needs,” ADIC chair Chris Griffin said. “It is just plain insulting for the authority now to dismiss thousands of regional Australians as having nothing worthwhile to contribute to a plan that directly affects their economic and social wellbeing.” Griffin urged Fed-

eral Water Minister Tony Burke and State Water Ministers to address the fundamental flaws identified in the draft plan, and not abandon regional communities. ADIC Basin Taskforce chairman Daryl Hoey said the Basin Plan released late last month would remove slightly more water from the southern Basin than was proposed in the Guide 18 months ago – 2289 gigalitres com-

“A cut of this size is as unacceptable now as it was 18 months ago – especially in the face of the authority’s own evidence that similar or better environmen“A cut of this size outcomes could is as unacceptable tal be achieved with now as it was 18 less water by investing in environmenmonths ago.” tal works and other measures instead of buywork with regional communities and get this right, backs. “It is also shocking that after the debacle of the the authority has conGuide,” Hoey said. pared with 2274 gigalitres. “Today’s outcome is a betrayal of the community’s goodwill to give the MDBA another chance to

L A I C E SP T R O REP NEXT ISSUE: JULY 2012 FENCING & STOCK HANDLING

Next issue Dairy News Australia will focus on the hardware and techniques necessary to manage livestock and pasture grazing – two of your main assets on the farm. Proper fencing and stock handling tools and materials are an investment in productivity but it pays to do the job properly with the best gear.

veniently dismissed the integrity of all socio-economic studies – even its own commissioned studies – that do not support its fanciful claims that regional communities will not suffer any serious or lasting impacts.” Hoey said he was particularly concerned about misleading information in the socio-economic summary report delivered to the state and federal water ministers. He said an example was the claim that irrigators only face a 19% reduction in water, after accounting for infrastructure savings. However, this is a proportion of all water diverted in the Basin, including for Adelaide, other towns, manufacturing and mining, as well as agriculture. “In truth, the reduction

will be about 30%, based on ABS data of actual irrigation water use – and the Government is only targeting irrigators’ water for purchase for the environment,” Hoey said. “Further, the authority has failed to tell Australians the whole story by including colour-coded maps showing that the environmental benefits of recovering 2400GL would be little different to 2750GL, according to its own studies. “The authority is trying to palm off the hard decisions to the 2015 review, when it knows full well that it is legally locking the Federal Government into buybacks as the investment priority in the meantime. “So by the time we get to 2015, the socio-economic damage will have been done.”

Affected parties take aim The draft Murray Darling Basin Plan has drawn fire from every stakeholder. State Governments, farm groups and irrigators say little has changed from the original plan released 18 months ago. Environment groups and the Greens – who the Federal Government rely on to hold office – say the plan does not release enough water to ensure the health of the river system. Victorian Farmers Federation president Peter Tuohey said the MDBA’s consultation process – which involved travelling around Australia to listen to concerned parties at community forums – had been a sham. “They’ve failed to listen to our call that all further water for the environment be recovered by more efficient watering of wetlands and river operations – not just buyouts of irrigators’ water,” Tuohey said. “Failure to include these measures means the Federal Government will just rely on buyouts.”

Tuohey said the revised draft Murray Darling Basin Plan handed to State Water Ministers does not include crucial changes needed to minimise the impact of draining water out of irrigation communities. National Irrigators Council chairman Gavin McMahon said the plan does not include an environmental watering plan to explain where the water will be used. “How the Government has come up with any number when it doesn’t know and won’t know for at least another three years how, when, where, why or what it wants to water?” McMahon said. MDBA boss Craig Knowles has said environmental works – which could achieve desired environmental outcomes with less water through new infrastructure - would be considered as part of a review of the basin plan in 2015. But the VFF has said that’s not good enough. “We want these changes enshrined in the final plan, not left to some distant review,” Tuohey said.

Dairy NewS AUSTRALIA june, 2012

news // 9

Coles increases Tas milk quota The Tasmanian

dairy industry will now supply an additional 78 million litres of fresh milk to Coles, which has formed a new partnership with Cadbury. Cadbury’s Claremont chocolate manufacturing plant recorded a 14% increase in chocolate production, due in part to Coles’ testing of customer reaction to Cadbury Dairy Milk Mousse. The product was previously made in Belgium, but positive customer response to the product saw the company move the manufacture of the mousse to Tasmania. Other Coles-exclusive products such as the Cadbury AFL football and products inspired by the London Olympics will see an increase in Cadbury’s Tasmanian production. “When a new product is successful and the category grows, the benefit flows through to the local operating environment,” said Simon Talbot, director of corporate affairs for Kraft Foods, the owner of Cadbury. “New capital goes in and we need more milk

from Tasmanian dairy farmers.” Cadbury anticipates it will produce 43 tonnes of chocolate in the coming year from Tasmanian milk - equivalent to around 60 million bars of chocolate. Its annual intake of 78 million litres accounts for around 12% of Tasmanian milk production. Talbot said the benefits from the success of a new product line extend beyond Cadbury and Coles. “When a new product is successful and the category grows the benefit flows through to the local operating environment. New capital goes in and we need more milk from Tasmanian dairy farmers.” Cadbury employs 520 people in Tasmania making it one of the largest employers in the state. Coles merchandise director John Durkan said by working hard to understand Australian customers Coles and Cadbury were developing top quality, innovative new products which were growing the local market. Talbot said support from retailers like Coles

gave the company the confidence to invest in local production. “The Coles team is a great example of going out there, believing in a new product and knowing

it is going to create excitement amongst their customers. “This support gave us the confidence to put the new manufacturing kit in Claremont, Tasmania.”

The Cadbury Mousse range of chocolate will be produced in Tasmania from local milk.

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Farmers hail Midlands Water Scheme start Midlands Water Scheme is to go ahead with the announcement last month that tenders have been awarded and construction is about to start on the $104 million project. Tasmanian Farmers and Graziers Association chief executive Jan Davis said it would be the largest irrigation project in the state’s history. It would secure a sound future for one of Tasmania’s most important agricultural corridors, from Longford to Kempton. “Investors, including many of our midland farmers, have put their money

where their mouth is,” she said. “We know that what has been achieved in the Coal River valley is also possible here.” Davis said it was further evidence the state’s agricultural sector, working in partnership with Tasmanian Irrigation, would drive the economy through what otherwise would have been uncertain days ahead. “Surety of water in the midlands will see new horticultural and livestock enterprises,” Davis said. “It will see lateral thinking applied to farming in the corridor. It will mark the rebirth of oncevibrant communities.”

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Dairy News AUSTRALIA june, 2012

10 // news

Profit warning from Warrnambool WARRNAMBOOL Cheese and Butter Fac-

tory Company has warned profit could drop by between 20-30% on last year’s levels. In an announcement to the Australian Stock Exchange the company blamed the fall in prices for internationally traded dairy products. The dairy processor predicted its full-year profit could drop 20-30%

on last year’s $18.5 million profit. “The principal reason for this material decline is the prices received for internationally traded dairy products,” the company statement said. “Market prices for volume products have declined during the second half with skim milk powder prices as an example falling by 22% since January 2012.”

As a response to this trend, the company said buyers are increasingly adopting short term contract positions to take advantage of lower spot prices. “This will result in WCB holding higher than anticipated end of year inventories,” the company said. “The current weakness in international markets has been caused by an

increased supply of products. “Dairy Australia forecasts global milk production to increase by almost 3% in calendar year 2012 due to favourable seasonal conditions across major exporting nations.” The company said despite the increased volume of products, underlying demand remains strong and

products are clearing at reduced prices. The company said it would continue to pursue a more specialised higher value product mix and to diversify its revenue streams into high domestic sales and consumer products. “WCB maintains its optimistic outlook in relation to the long term global demand for dairy products.”

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Cold weather lifts hay demand, prices Cold drizzly weather has increased the demand for hay in south-west Victoria and south-east South Australia, leading to a lift in prices, according to the Australia Fodder Industry Association. The AFIA said supplies were dwindling rapidly as many dairy and beef producers expected to be feeding hay through to August and were trying to shore up their winter requirements. It is anticipated prices will continue their upward trend through to the spring, the AFIA said in its latest report. “Sowing is underway for vetch and oaten hay varieties across southern Australia. With higher hay prices compared to this time last year there is more interest in sowing crops suited to hay production,” the AFIA said. “Oaten hay varieties are extremely popular with seed becoming increasingly difficult to source. A strong export market for hay is underpinning increased acreages sown to oats.” The strong export demand for oaten hay has left limited availability for the domestic market. However, the AFIA said there was still some cereal hay available to the market in rolls as export processing plants only had the capacity to process large square bales. The obvious downside was the increased freight cost per tonne when buying hay in rolls, it said.

The nature of the hay market has turned 180 degrees. This time last year, with the exception of WA, supply far exceeded demand. Now the market has a large appetite for hay and there is great pressure on supply of both legume and cereal varieties. The supply pressure in NSW for lucerne hay may be felt for some time as the flooded lucerne stands cannot be sowed back to lucerne until 2013, according to the AFIA. “The flooded stand will need a break crop of cereal to break the weed threat that would choke young lucerne seedlings, were they sown now.” With large acreages of lucerne suddenly taken out of production, supply will be affected. Many growers affected are suggesting they still had two cuts to harvest for hay production. In these regions the price difference is widening between horse quality hay and cow quality. There is a severe dent in the crop that can produce horse quality hay and very little is stored and demand is high. However, there are reasonable volumes of cow quality hay in storage with little demand. “Many of the crops in NSW that still can produce a cut will be delayed and even if curing conditions are favourable, the maturity of the plant will most likely preclude it being of chaff quality,” the AFIA said.

Dairy NewS AUSTRALIA june, 2012

news // 11

Vets taken for granted in key FMD report Volunteer public servants

Dianna Malcolm

It is not a matter of if but when foot and mouth disease (FMD) comes to Australia, according to Rob Bonanno, the past president of the Australian Cattle Vets Association. And he believes there is a hole the size of the Titanic in Australia’s defence, threatening this country’s ability to respond. “You only have to watch programmes like Border Control on television to see the amount of food and foodstuffs coming into the country,” Bonanno said. “People are sneaking in sausages and salamis and raw unprocessed cheeses. FMD is endemic in the Middle East. It’s occurring regularly in our Asian neighbourhood. The government spent millions helping push it back out of Indonesia, which was a great investment in Australia’s border control that we should be really proud of because we don’t need it that close.” Bonanno recently appraised a 105-page review of Australia’s preparedness for FMD, which was commissioned by the secretary of the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF). It estimated a FMD outbreak would cost between $7.1 billion (for a small, three-month outbreak) and $16 billion (for a 12-month outbreak). It also reported that control and compensation would range from $25 million to $600 million respectively – without including in the economic impact of trade restrictions.

No mention of vets Yet Rob says he feels the review failed in acknowledging the most critical people in Australia’s first line of defence: its cattle veterinarians. “It’s a nice report in that it identifies risk factors, but there’s absolutely not one mention that the response to any exotic disease outbreak is almost entirely reliant on private practitioners leaving their businesses to respond,” he says. “What if the vets decide not to come

Rob Bonanno

— what if they can’t afford to come? There’s an assumption in there that I find pretty offensive. That complacency takes us for granted. It looks like we’ve been put in the too-easy basket. “The reality of this report is there is no point having a whole army of generals when they haven’t even made sure the foot soldiers are going to turn up.”

Here kitty, kitty… Australia has a veterinarian reserve force of about 100 people, which Bonanno said would rapidly be overwhelmed. And private veterinarians would be faced with some choices. “What happened in the UK was they were using cat and dog vets because they simply ran out of cattle vets – and that would happen here in Australia as well. There’s probably only about 1200 to 1500 of us here.” In Rob’s co-owned Shepparton Veterinary Clinic practice in northern Victoria, they have 11 vets, seven nurses and eight reception staff to consider (1.5 support staff for every vet). “If we send five of our vets, that means about eight other staff are impacted – currently at both mine and my partners’ costs. I believe it would make more sense for the government to pay veterinarians who have rural practices to train nominated staff to maintain a level of readiness [with an accredited and audited programme]. “What our practice could potentially do in an outbreak is have three vets, a receptionist and a nurse trained who are immediately able to hit the ground running as a team.”

Instead, the report talks of using government department volunteers as the vets’ support personnel. “Geelong didn’t win the [AFL] grand final by turning up the night before and putting together the best group of individuals they could find. They built the team from the pre-season, and they worked together all the way through the competition, and they arrived on grand final day with a team that was ready to play. “At the moment, using volunteers would be a shambles because they’d be pulling people in from all sorts of government departments and getting them to answer phones – and the person at that first-response point needs to be good at what they do. Our support staff are trained to talk to people at a time of maximum stress – probably the most stress that we’ll ever all be under if there was a significant FMD outbreak.” Bonanno said a capable support team would help ease the extreme situation and allow vets to work faster and more efficiently.

Scenes of FMD destruction (like this from the UK) could happen in Australia if an effective defence isn't implemented.

And the indemnity?

“Geelong didn’t win the [AFL] grand final by turning up the night before and putting together the best group of individuals they could find.” Lack of knowledge crushes “As a vet, the most dangerous set of yards are the ones that you’ve never worked in before, and the most dangerous animals you ever work with are when you go to a farm where you’re not familiar with the set-up, the owner or their cows’ temperament. “I have one client who has a crush that’s a man-killer, but I know that because I’ve worked in those yards for 12 years. Now, when we go to a FMD outbreak, all that changes. We’re in unfamiliar areas, with unfamiliar farms, farmers and animals. To have a support team you trust would make every difference.”

Bonanno said doing the right thing within the current report could also mean financial ruin for some. “In this report there is no mention of a vet’s liability or indemnity insurance.” He says vets know their involvement would be critical, but they feel they should be compensated appropriately and not be expected to pay for indemnity insurance, for example, out of their own pockets when not working in their own private practice. “I have to carry my own insurance, but it appears I’d be working for the government and paying that myself. “That is, for me, almost a non-negotiable on what we need from the government as an absolute minimum prerequisite in order to respond to a FMD outbreak. And on top of that, we need a realistic salary that allows our vets to continue to pay their staff at home. “The bottom line is that the government knows that in all likelihood we are going to come and they are basically treating us without respect because of that, which is frustrating.”

Showered in protection He adds that dairy farmers could learn a lot from the biosecurity measures used by other areas of the agricultural industry if they want to keep exotic

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diseases at bay. Many pig and poultry operations demand visitors shower when they arrive, wear supplied clothes and shower on the way out. While that is extreme, it is also sends a clear message. “I think, in general, dairy farmers are quite naive about the biosecurity risks their farms face every day. Milk tankers, visitors and even vets travel from farm to farm — there is a lot of opportunity for infection to be spread. Farmers often let anyone walk through their calf pens without regard for their footwear or clothing. “Even most dairy farmers milk their cows, get covered in shit and then feed their calves. People could help themselves by using better biosecurity practices. Registered cattle breeders potentially have the most to lose.” Undoubtedly the impact on Australia’s registered dairy industry would be among some of the hardest hit. “It just makes you feel sick thinking about it,” Rob says. His advice to the annual Australian Cattle Veterinarians’ Conference in the NSW Hunter Valley in March was simple. “If it’s up to me, I’d recommend vets call a strike and refuse to respond until the government recognises our role and the issues surrounding our involvement.” First published in CrazyCow In Print

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12 // NEWS: WORLD

Couper wary of Fonterra move SUDESH KISSUN

FORMER FONTERRA

Shareholders Council chairman Simon Couper will not be campaigning for a vote against TAF (trading among farmers). But he wants co-op shareholders to realise that TAF “will put us on a path that has the potential to become a slippery slope”. Couper, who quit the council last month, is

uncomfortable with 100% farmer control and ownership provisions in TAF but wants shareholders to make their own decision. Voting papers for the June 25 vote were sent to shareholders out last week. Fonterra chairman Henry van der Heyden says Trading Among Farmers, where farmers buy and sell shares from each other through a market, rather than the Co-operative, would remove redemption risk

– the need for Fonterra to pay cash out to those farmers leaving or reducing milk supply.

season to season and provide permanent capital to grow returns. “As farmers we’ll also

“With a big fund, investors will want more and more returns and I’m not happy and comfortable with that.” - Simon Couper “This will stop money washing in and out of Fonterra’s balance sheet from

know exactly what a Fonterra share is worth at any time. We’ll have the

flexibility to buy and sell shares when it suits our cash flows. And we’ll have the choice to free-up some of our share capital through the Fonterra Shareholders’ Fund.” Couper said TAF theoretically provides a unique opportunity for our co-op but must have complete safeguards around ownership and control. “And I don’t believe TAF delivers 100% ownership and control under its present structure,” he said.

Fonterra chairman Henry van der Heyden, chief executive Theo Spierings and former Shareholders Council chairman Simon Couper at a management retreat before Couper's resignation.

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Couper is unhappy with the size of the Fonterra Shareholders Fund, which will sell share units to outside investors. Fonterra’s board has agreed to reduce the fund ceiling, kept at 25% under the original proposal. But Couper doesn’t believe the changes go far enough. “When you’re bringing in competing interests, you need to make sure organisation is put under risk. “With a big fund, investors will want more and more returns and I’m not happy and comfortable with that.” Couper says Fonterra is a great co-op owned and run by farmers and it’s up to shareholders to decide the fate of TAF. “Farmers should study TAF documents sent to them and decide whether they are happy and comfortable with it. “I’ve always held to my integrity. I accept that a majority of council maybe happy with the proposed model but I couldn’t lead an organisation where I had such a big fundamental difference on such a big issue” Dairy News understands about 80% of the 35-member council support TAF. New council chairman Ian Brown has come out in support of TAF. Brown admits the fund size has been an important issue in deliberations with farmers over the past two years.

“As a result of these discussions considerable emphasis has been placed on the terms of the Fonterra shareholders’ fund risk management policy which is described in the (TAF) blueprint, he says. “The board and the council have been intent on ensuring that should the size of the Fund move through various thresholds appropriate action is taken to protect the co-op. The final form of this Policy gives the Council a pivotal role in ensuring that the size of the Fund is closely monitored and appropriate action taken at the various thresholds.” Fonterra chairman Henry van der Heyden says it’s important that the board and council are able to stand shoulder to shoulder on TAF. “When we announced the special meeting we said that we wanted to have this final vote to unify the cooperative. With board and council unified on TAF we are now a long way down that track.” Van der Heyden says the board regrets Couper’s decision to stand down. “But if Simon is uncomfortable, he has done the right thing by the cooperative,” says van der Heyden. Couper, who served on the council for eight years, farms at Waipu, Northland. His resignation has left a vacancy in the southern Northland ward.

Farmers brace for power price pain A FINAL determination on Queensland electricity prices and tariffs for the coming financial year spells bad news for the state’s primary production sectors, the Queensland Farmers’ Federation said. The Queensland Competition Authority has released its final determination on regulated retail electricity prices. QFF CEO Dan Galligan said the hikes being proposed would be a huge blow to Queensland’s $14-plus billion farming sector, and were a serious threat to the LNP’s plan to double food production by 2040. Increases in network chargers for Ergon and Energex are estimated at 15.7% and 11.3% respectively. “The QCA determination also shows that the carbon tax is going to have a very substantial and destructive impact on the profitability of the farm sector,” Galligan said. “The QCA says the carbon tax will increase the underlying cost of energy by 43% for small customers. While electricity bills won’t increase by that amount, it

shows the underlying pressure that the carbon tax will put on electricity bills. “Industry continues to rebut the Federal Government’s assertion that farmers will be able to pass on costs down the value chain. It is a fantasy theory – farmers are price-takers, and this is a serious blow.” Galligan said the QCA had made an important acknowledgement of the value of some electricity tariffs, such as those that allow farmers to irrigate at night. Some of these tariffs, which were due to be axed, will be retained for a ‘transitional year’. “However, costs are expected to increase by as much as 20% due to the above fundamental increases. “Farmers on tariffs such as 63, 64 and larger customers on 41 and 43 will clearly be impacted negatively by these increases. “The result will be a serious negative impact for regional communities. “QFF will continue to work with our members to determine the full extent and implication of these electricity price changes.”

Fertiliser specialists should be accredited Fertiliser specialists are being

urged to undertake formal training and become accredited to ensure the industry meets community and environmental expectations. Australian Fertiliser Services Association (AFSA) president Wes Wheelhouse says everyone working with fertilisers should know how to use the products in environmentally-friendly ways and be able give accurate technical advice to farmers. Wheelhouse will tell the upcoming Grassland Society of Southern Australia annual conference in Launceston that if the industry doesn’t follow its own regulatory system it will face imposed regulations. “We need to make sure advice given to farmers is based on science and proven data, not just rely on what the manufacturers or salesperson say when they are trying to sell a product,” he said. “Fertiliser is quite heavily regulated in many over-

seas markets which want to make sure there isn’t an overload of nutrients leaching into waterways. The association is being proactive in developing the training and accreditation program Fertcare to meet the industry’s responsibilities for food safety and environmental protection.” Fertcare is available to people involved in transporting, storing and spreading fertiliser, salespeople and advisors and agronomists. It is delivered by registered training organisations. Wheelhouse said demand for the accreditation program was gradually increasing and he hoped it would become accepted industry practice. “As society becomes more environmentally conscious and demand grows for food security, management of surface waters is the highest public policy issue facing the fertiliser industry,” he said. Wheelhouse’s address at the three-day confer-

ence will also highlight the Accu-Spread program, which involves independent testing and accreditation of fertiliser spreading equipment for accuracy and evenness of spreading, will also be outlined during the conference. He will also outline how best practice fertiliser application can improve productivity and profitability for farmers. “Traditional fertiliser still has an important role to play in production. Some farmers have looked for other solutions as a panacea to the drought and tough conditions of the past decade, but they often don’t have independent data to back up what manufacturers are telling them,” Wheelhouse said. “They need to see evidence and it needs to be science-based.” The Grassland Society of Southern Australia has adopted the theme ‘back to grassroots farming’ for its annual conference. The three-day conference will run at Launceston from July 25-27.

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Dairy News AUSTRALIA june, 2012

14 // NEWS: WORLD

UK farmers outraged at price cut alan harman

THE NATIONAL

Farmers’ Union is demanding UK milk processors stop exploiting dairy farmers after four major companies cut farm gate milk prices. NFU says something is fundamentally wrong with the dairy market after Dairy Crest, Robert Wiseman, Arla and Muller all announced exactly the same cuts to suppliers of 2p/L. “Dairy farming is a long-term exercise,” NFU

dairy board chairman Mansel Raymond says. “Investment, breeding, skills and a range of other elements allow farmers to improve their businesses to meet market demands, reduce their environmental impact and generally strive to fulfill the requirements of a growing population with dairy at the heart of its diet. “It is catastrophic that short-termism further up the supply chain has led to cuts which mean a typical farmer will lose about £20,000 per year.”

Raymond says the buyers claim to be building long-term relationships with suppliers and customers and demand specific standards to match. “Yet when an opportunity to cut farmers’ milk prices presents itself, it seems this all means nothing,” he says. “Milk buyers transferring losses accrued as a result of their own business strategies to farmers whose businesses are already struggling is totally unsustainable.” This raft of milk price cuts exposes

Tried, TesTed, TrusTed

fundamental problems in milk contracts, Raymond says. “As long as milk processors can get away with this atrocious behaviour, it seems they will do so. “Farmers need and deserve contracts where their basic terms are clear, specifically on price,” Raymond says. “The status quo where buyers can change the deal and cut prices without consequence is fundamentally wrong and must change.” Dairy Crest and Robert Wiseman Dairies blamed

the “challenging” market environment for their decisions. Dairy Crest has already cut the price to its 1300 dairy farmers. The processor recently announced the closure of two of its UK plants after Tesco (Britain’s biggest supermarket chain) told Dairy Crest its contract to supply liquid milk will not be renewed when it ends in July. About 3% of Dairy Crest’s liquid milk sales in 2011-12 were made to Tesco. “On top of downward pressure on its selling

prices in a tough consumer environment and an extremely competitive middle ground, the whole dairy sector is suffering from steeply falling commodity markets,” Dairy Crest says. Raymond says the decision to slash the price with a mere four days’ notice was outrageous. “How can any farmer run a business faced with cuts of this degree and immediacy? This only reinforces the need for balanced and fair milk contracts. Farmers supplying Dairy Crest liquid contracts are now forced to accept a price cut they have not agreed to for at least the 12-month notice on their contract. “This is sheer exploitation and the clearest demonstration yet that those dairy contracts,

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where buyers have the discretion to change price without mutual consent, must have break clauses which allow farmers to leave earlier.” The Robert Wiseman reduction kicked in on June 1. It says its farmgate milk price reduction after three years of increases totalling 4.55p/L reflects the continuing and sustained impact of a challenging market environment and more recently a collapse in the value of bulk cream. “Higher returns from cream prior to the turn of the year partially compensated for other pressures facing the business, but the collapse in bulk cream value since the beginning of 2012 has resulted in an untenable position,” Robert Wiseman says.

co-operative Westland is forecasting a payout for 2012-13 between NZ$5.70 and NZ$6.10/kg with advance payments set at NZ$3.80/kgMS. “We’ve put our forecast out on the table early,” chief executive Rod Quin said after a round of shareholder meetings earlier this month. The forecast is back on Westland’s latest prediction for this season, $6.30-6.60/kgMS, which was itself cut 30c/kg on April 26. Quin says “it’s very much a buyer’s market at the moment” for dairy products globally as a stellar season for nearly all in New Zealand draws to a close. “We would expect prices to pick up later in the year but we’ve got to start the budget working with a high dollar.” This season’s supply from Westland’s traditional West Coast catchment is 9-10% ahead of last year. Milk from four Canterbury farms,

railed over the hill to the Hokitika factory via a condensing plant at Rolleston, means total intake will be 13.5% up. It’s the first season Westland has had suppliers in Canterbury and Quin says several more farms in the region, supplying “tens of millions of litres more milk”, have signed for next season. A processing plant at Rolleston remains on the cards, but hasn’t been signed off. “It’s still a concept and we’re talking to shareholders about our options to fund that facility. At this stage it’s not approved but we are going through the resource consent process.” Westland’s name has also been linked with South Canterbury-based New Zealand Dairies. Russian owner Nutritek put the plant on the market in November 2010 and despite visits from several potential suitors – domestic and overseas – no buyer has emerged. Quin says he can’t comment on Westland’s interest, other than to say all options have to be considered.

Dairy holds up CanadaEU deal CANADIAN DAIRY

industry protection is the key hold-up in a Canada-EU free trade deal. The EU’s ambassador to Canada wants the heavily protected dairy sector – mainly in Ontario and Quebec – exposed to greater foreign competition. Ambassador Matthias Brinkmann told journalists he is confident of a Canada-EU trade deal this year. But he points out dairy is a key barrier to successful negotiations. Brinkmann also warned Canada it will likely have to lift its visa restrictions on three former Communist-bloc countries – the Czech Republic, Bulgaria and Romania – before the trade deal can be ratified. These cautions come on the eve of a public relations campaign by the Federal Government to promote the proposed deal, with Tory MPs fanning out across the country to speak in favour of liberalising trade and

investment with Europe. Canadian beef producers are eager to access 500 million EU consumers. But this could take time, warns Brinkmann. “For the Prairies the beef issue is a big one, and there will be no beef without dairy – it’s almost a foregone conclusion.” He confirmed formal offers haven’t even been exchanged on the sensitive agriculture issue despite negotiations since 2009. “It’s a big obstacle, like all international trade negotiations,” he said, adding that it’s “normal” for negotiators to leave the toughest issues to the final talks. Rudy Husny, a spokesman for Trade Minister Ed Fast, wouldn’t comment on whether Canada is prepared to expand foreign competition in the dairy market. Countries in AsiaPacific, especially New Zealand, are also demanding greater access to Canada’s domestic dairy market as a price

of participation in the proposed Trans-Pacific Partnership (TPP) trade deal. “All countries approach negotiations with a view to protecting their interests. Canada is no different,” Husny says. “Canada will seek to defend and promote its interests in every sector of the economy.... only signing an agreement that is in the best interests of Canadians.” Brinkmann said the EU and its 27 member states aren’t demanding Canada end its supply-management system, which provides production quotas to dairy producers and shields them against competition by charging high tariffs on imports. But he said Brussels is pushing aggressively for an increase in the Canadian imports quota limit – 20.4 million kg of cheese. EU exporters get about twothirds of that quota, and all foreign producers must pay a prohibitive 245% tariff on products above the quota.

Global pressure forces job cuts DANISH CO-OP dairy processor Arla Foods is shedding 250 jobs in a restructure to remain globally competitive. It is also cutting procurement costs and market research and analysis spending to save AUS$87m (500 m Kroner). Arla is selling more but must cut annual costs to keep up with international competitors, says chief executive Peder Tuborgh. “Our turnover is growing, and that growth will continue. “We have a responsibility towards all our co-op owners and other dairy farmers, who invest their milk and their money in Arla, to make sure our

turnover grows [much] faster than our costs. “Our international competitors are able to turn ideas into action quicker than before so Arla needs a more simple and structured way of working,” Arla will shed 250 admin jobs globally by late 2012, and will internally restructure 150 admin jobs. Management will keep looking to make administration even more efficient as the growth continues. And it will look for potential for “similar efficiency measures in the production chain.” Arla says it aims to lead in the consolidation of the European dairy industry,

attracting and retaining raw milk in adequate volumes. A prerequisite for this is to pay a competitive milk price to its co-op owners, says Tuborgh. “It’s a long time since Arla has had the opportunity to exploit the synergies that always arise when two large companies – each with their integrated production and administration – join forces. Even the most recent mergers with Swedish Milko and German Hansa have not been large enough to trigger radical efficiency measures throughout the company. [We must] ensure Arla stays competitive by reducing costs and complexity....”

Dairy News AUSTRALIA june, 2012

16 // OPINION Ruminating

EDITORIAL

Watch this space – world market in constant change Watch this space – that seems to be the outlook in the current dairy

milking it... Weasel words It’s all in the spin. Federal Water Minister Tony Burke told Channel 10’s Meet the Press last month he believed he could find more than 3000GL of water for the environment if the Murray Darling Basin Plan included more efficient river operations. However, his figure is still based on taking 2750GL away from irrigation communities. In its submission to the Murray Darling Basin Authority, the Victorian Farmers Federation proposed using environmental water more efficiently to reduce the 2750GL by 500 – 800GL while delivering the same environmental outcomes. However, Burke is saying he’ll still take 2750GL from irrigation communities, and then make further savings through environmental works and measures to top up the number to 3000GL. The impact on irrigators and communities would be the same – not that the largely metropolitan audience of this TV program would have known.

Moo-hem in the city SPAIN has its annual running of the bulls and now Auckland has held its own running of the cows. Although a slightly less spectacular version than its Spanish counterpart, 40 cows stampeded through the Britomart area of central Auckland at rush hour on a Monday morning. This total “moo-hem” was part of a supermarket’s promotion of dairy products. We are pleased to report that no animals were hurt during the promotional activity.

A bob each way Farmers were left scratching their heads after it was revealed Victorian taxpayers’ dollars are being used to fund a report encouraging Australians to buy less red meat. The report is being developed by Green Capital and is sponsored by government agencies nation-wide, including Sustainability Victoria. The draft report advocates supermarkets encourage consumers to eat less meat and issue warnings that red meat has damaging impacts on the environment. While the Government has funded this report telling people to stop

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eating read meat, it has also announced it will inject millions of dollars into a red meat innovation centre at Hamilton in western Victoria. Australian red meat ambassador Sam Kekovich normally signs off with “you know it makes sense”. Unfortunately, this doesn’t.

Vegan message spurned Animal activist group PETA has been knocked back from purchasing billboard advertising space in the US. It tried to place a billboard ad in California stating “Real milk comes from real sick cows” and

urging people to “Go Vegan” but the nation’s biggest billboard company refused to allow it. After a dead dairy cow from Tulare County (heart of dairying country) was found last month with mad cow disease, PETA said it would advertise on a billboard near Baker Commodities, the Hanford plant where the animal was first taken for processing. But Lamar Advertising wouldn’t accept the message, saying they could not accept the ad content. PETA has since advertised on television but is the billboard refusal a sign of things to come?

climate. Although Fonterra has opened with a lower price than last season, and other companies are expected to follow suit, the global market that influences farmgate prices is constantly changing – and not necessarily for the worse. An international supply glut has enabled international buyers to order milk products on their terms, hurting the balance sheets of major processors like Murray Goulburn and Fonterra. However, Dairy Australia analysts have said global dairy markets are rebalancing. Lower prices will both slow production growth and stimulate demand, and as this occurs DA said we will ultimately see a price recovery. Despite wider economic uncertainty, demand has remained resilient as importing countries like China and those in south-east Asia and the Middle East maintain consistently higher economic growth rates that support increased dairy consumption. However, the surge in supply has outpaced demand growth in the market. This situation has seen the scales tip in favour of buyers in dairy markets, with commodity prices retreating steadily over recent months. Butter prices are down some 30% from their 2011 peaks, whilst powder prices have lost more than 20%. Farm gate prices have subsequently been reduced in most exporting regions. A weakening Australian dollar is also positive news for exporters and farmers. The weaker dollar coincided with a 13.5% lift in average prices of the first GlobalDairyTrade auction of the month, although processors have warned about market volatility and are waiting for a trend to emerge. Whilst the dairy market is currently a challenging place to be a seller, all signs indicate that balance will ultimately return. That’s positive news for most Australian farmers who have had two years of “consolidation” prices and were hoping prices would take that next step this year. However, in the drinking milk regions of northern and central NSW, Queensland and WA, farmers continue to cop the rough end of the supermarkets’ decision to sell cheap milk. Coles has ramped up a new campaign telling the country how it invests in Aussie produce but the facts are production in these drinking milk states are either static or in decline. Processors are taking less milk at full price in a bid to remain profitable and more farmers in these states are struggling. Aggressive retail competition for milk will continue to negatively influence farmgate prices and the current focus on private label discounts will allow little room for improvement. World factors make it difficult enough for farmers to get ahead but they offer some respite – unlike our very own supermarkets, which are making it almost impossible for dairy farmers in the north and west to advance.

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Dairy NewS AUSTRALIA june, 2012

agribusiness // 17

Export demand remains strong With season 2011/12 only a few weeks from ending, attention is now focused on 2012/13 milk prices as farmers consider strategies for the coming year. In some domestically-focused regions, renegotiated contracts incorporating lower prices and reduced ‘tier one’ access are undermining farmer confidence and supply stability. For many farmers in export-oriented regions, a lower price outlook relative to the current season not only adds to the challenges of doing business, but seems to contradict the positive medium term outlook of Asia-driven dairy demand growth. Dairy Australia’s indicative outlook for southern farm gate milk prices – published in the recent Dairy 2012: Situation and Outlook report, is for an opening price range of $4.05-$4.40/kg MS and a full year average price range between $4.50 and $4.90/kg MS. The report considers the wider market picture and summarises the many factors at play; the key theme of the current situation being that of re-balancing in the dairy supply chain. In regions of Australia focused on producing drinking milk, many farmers face a re-balancing market in the form of renegotiation of supply contracts and reduced access to ‘tier one’ supply.

Incremental change in milk production (year-on-year)

global impact John Droppert Shifts in private label contracts and processor rationalisation have seen milk companies adjust their intake requirements and pricing to meet the changing demands of a highly pressured retail marketplace. Lower contract prices and a lack of alternative supply opportunities present challenges in a market with limited manufacturing capacity. Despite these challenges, the underlying domestic market is stable, with steady per-capita dairy consumption and a growing population providing a degree of certainty beyond the current adjustments. In the seasons following the 2008 financial crisis and subsequent commodity price recovery, farmers in export-oriented regions have seen solid global supply growth (see chart) - with higher-cost competitors in the Northern Hemisphere amongst those expanding output as their margins increased. This season, favourable weather conditions have further enhanced milk

flows. 2012 milk production in the US is up around 4% on 2011 for the year to April (leap year adjusted), whilst early data suggests EU-27 milk production finished the March 2012 quota year up 2.3% on the previous year. New Zealand production is widely expected to finish this season up 10% on last year - a huge market influence given 95% of NZ milk is exported. Argentina is also enjoying solid production growth, but a significant supply gap in Brazil prevents much of this additional milk from leaving South America. Despite wider economic uncertainty, demand has remained resilient as importing countries like China and

those in south-east Asia and the Middle East maintain consistently higher economic growth rates that support increased dairy consumption. However, the surge in supply has outpaced demand growth in the market. This situation has seen the scales tip in favour of buyers in dairy markets, with commodity prices retreating steadily over recent months. Butter prices are down some 30% from their 2011 peaks, whilst powder prices have lost more than 20%. Farm gate prices have subsequently been reduced in most exporting regions. The average basic farm gate price for milk in France for example, dropped 12% from 32 Euro

cents/litre in March (AUD 41c/L) to 28 Euro cents/litre (AUD 36c/L) in April. Profit margins are under pressure in the US, and in NZ Fonterra has announced the final payout for the 2011/12 season has been cut from NZ$6.75-$6.85/kg MS to NZ$6.45-$6.55/kg MS (AUD$4.96$5.04). Effectively, global dairy markets are rebalancing. Lower prices will both slow production growth and stimulate demand, and as this occurs we will ultimately see a price recovery. Key factors to watch on the global scene will be the rate at which milk production overseas slows in response to lower prices, the impact of the current financial worries on consumer confidence, the path of China’s economic growth, and the value of the Australian dollar. Demand for exported dairy products remains a positive and will continue to grow with the middle class in large emerging markets such as China, with changes in diet and with increasing urbanisation - and also in conjunction with global population growth. Locally, the domestic market is supported by a growing population and stable percapita consumption. Whilst the dairy market is currently a challenging place to be a seller, all signs indicate that balance will ultimately return.

Malaysia FTA benefits dairy Freedom AUSTRALIAN DAIRY,

rice and wine exporters to Malaysia are the biggest winners in a free trade agreement (FTA) signed between the two countries last month. The deal, signed after seven years of negotiations, allows a liberalised licensing arrangement for Australian liquid milk exporters and allows access for higher value retail products. It guarantees Australian wine exporters the best tariff treatment Malaysia gives any country. It also allows open access arrangements from 2023 for Australian rice with all tariffs eliminated by 2026. The National Farmers’ Federation says the trade deal will improve international market access for Australian agricultural goods. “After seven years of negotiation, the NFF is under no illusion of how challenging it has been to complete this FTA with Malaysia,” NFF vice president Duncan Fraser says. The FTA will fill a number of gaps within the

ASEAN-Australia-New Zealand FTA (AANZFTA). “Protectionist sentiment over agricultural goods is rife and growing across the globe, so in this context it is pleasing Australia has managed to forge an agreement with Malaysia that has dealt with some sensitive agricultural issues not effectively covered by AANZFTA,” says Fraser. “While under the AANZFTA agreement most of Australian agriculture’s key interests had tariffs bound at zero, dairy and rice are two sectors where incremental market access improvements have been negotiated under the Malaysian FTA. “This trade deal was also particularly important for sectors such as dairy that have been facing a competitive disadvantage in Malaysia compared with New Zealand which already has a completed FTA with Malaysia in place.” The FTA also signals some administrative benefits for Australian agricultural export-

Foods plant targets Asia AUSTRALIAN FOOD

Sealing the deal: Malaysian trade minister Mustapha Mohamed with Australian counterpart Craig Emerson after signing the deal.

ers through streamlining of rules-of-origin declaration processes and improved marketing arrangements for certain commodities. The Malaysian market is worth about A$1 billion in Australia agricultural exports – including being its fourth-largest sugar export market and fifth-largest wheat export market. With an annual economic growth at about 5%, Malaysia forms an important part of the ‘Asian Century’ story and the opportunity this presents for Australian agricultural producers, says Fraser.

Despite the completion of this agreement, much remains to be done for Australia’s farmers to tap into the full potential of the Asian region and beyond. He says the NFF will now throw its attention towards ensuring agriculture remains front and centre in completed FTAs with South Korea, Japan, China and Indonesia as immediate priorities. “These are all markets with enormous growth opportunities and where significant barriers to trade in agriculture still exist, not only through tariffs that restrict trade

but also through technical or so called ‘behind the border’ restrictions.” The FTA was signed on May 22 in Kuala Lumpur by Australia’s Trade and Competiveness Minister Craig Emerson and his Malaysian counterpart Mustapa Mohamed. Emerson says Australia will be as well-positioned in the Malaysian market as Malaysia’s closest trading partners in ASEAN, and in some cases better. The FTA will guarantee tariff-free entry for 97.6% of current goods exports from Australia once it enters into force. This will rise to 99% by 2017.

company Freedom Foods Group Ltd is to build a new milk processing plant to cash in on growing demand in Asia. The plant, to be built in southeast Australia, will be the first Australian greenfields expansion in UHT in 10 years. Freedom’s wholly owned subsidiary Pactum Australia will run the plant. Some of its products will be sold in Australia. The company says given Asian consumers’ rising incomes and improving diets, demand there will grow for quality dairy products from low-cost production bases such as Australia, whose milk is well regarded. The new plant will allow Pactum to meet growing demand for UHT dairy milk, and add to capacity for valueadded beverages at its Sydney factory. Pactum is expanding its capabilities at the Sydney plant

to provide portion pack (200-330ml) configuration for beverage products. The NSW location will provide access to the most sustainable and economic source of milk. Pactum has strong links to the Australian dairy industry and will expand its arrangements with dairy farmers for supply of milk. The new plant will increase scope for Australian milk supply – value-added, sustainable and export focused. Initially the plant will produce 250ml and 1L UHT packs from a process line capable of 100 million L. The processing and packaging plant will emit less carbon, use less water, and be more energy-efficient than equivalent UHT facilities in Australia and SE Asia. Pactum expects site preparation to begin in October 2012 and start-up by mid-2013. Pactum makes UHT products for private label and proprietary customers.

Dairy News AUSTRALIA june, 2012

18 // breeding

Luke and Mel Wallace with the $16,500 top-priced heifer, Wallacedale Actions Belle 3.

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Wallacedale Jerseys sets national record The Wallacedale Jersey stud set a new Australian record average for a single vendor Jersey sale when it sold 52 Jerseys for an average of $5512. It was also the second highest international average for a single vendor Jersey sale. The Future Fortunes sold 52 Jerseys for $286,650. In the breakdown, 12 cows averaged $5762, 16 joined heifers av $5872, 17 unjoined heifers av $5985 and 7 bulls av $3114. It was a magnificent result for Luke and Melanie Wallace and his parents, Cliff and Marieka. A huge crowd of interested Jersey Breeders from all states and overseas along with many local dairymen overflowed the sale shed. Sale top of $16,500 was paid by Cobargo, NSW buyers C O’Meara and family for Wallacedale Actions Belle 3 - this young cow classified maximum VG 88 as a two-yearold cow and is backed by many generations of EX dams back to Duncan Belle. Next high of $16,000 was Wallacedale TBone Melanie 36

EX 95. She was purchased by the Bushlea herd of the Kuhne Family, Leongatha South. Dalbora Genetics of Tennyson selected Wallacedale Regions Melanie 5 (ET) at $11,000 and her maternal sister Navara Melanie 2 (ET) at $8,500 - both from the Great Southern winner, Jace Melanie 4 EX 92. Loxleigh Jerseys of Geoff and Natalie Akers, Tallygaroopna, paid $8500 for The Future Fortunes Wallacedale Jace sale saw 52 Jerseys Melanie 7th (ET). sell for $286,650, Other noted sales including a top price included Regions Melanie 2 (ET) at of $16,500. $7,750, Reagans Ellous at $7500, Jace Lynette at $7000, Barts Lily at $7000, Jace Melanie 5 (ET) at $6800, TBone Melanie She was sold to the $6500, Rivers Belle $6500, partnership of L Bennett, Actions Lynette 2 $6500 and Macorna, Vic, and A Launder, Larbuck Melanie for $6000. Tarwin, Vic. Top selling bull at $5,000 Also at $14,000 was the last was Wallacedale Mels lot in the sale Attaview Shy rumour - a January 12 imported Generation (ET) to D & P McPhie of Warragul, Vic. Canadian ET heifer from a Selling agents were Dairy VG Centurian daughter of Livestock Services. Rapid Bay Whistler Rumour (ET), an outstanding daughter of the super brood cow Melanie P36 EX due August to Eclipes. She was purchased by J & M Cockerill, Numurkah, Vic. Third high of $14,000 was Wallacedale Regions Marie (ET), an unjoined daughter of the Royal Show Winning Peris Marie EX 91.

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Dairy NewS AUSTRALIA june, 2012

breeding // 19

Jersey sale sets new record A top price of $16,500 and average of $5611 for 37 lots gave the South Gippsland Jersey Breeders Club cause for celebration at a sale to celebrate the group’s centenary. Held at the Stony Creek Raceway, the sale surpassed the breed record for a Jersey average with an outstanding 37 lots at $5611 selling to buyers from all Australian States. In the breakdown, 11 cows

av $6505, 14 unjoined heifers av $6196, 8 joined heifers av $4131 and 4 Embryo packages av $4050. The 37 lots grossed $207,600. The pace was set early when lot 1, Gelbeado Park Navara Bonita EX 90 at three years, and from an IDW winner, offered on behalf of Paul and Lisa Mumford, Won Wron, Vic, sold for $16,000 to Trinity Investments, Leongatha South.

The 37 lots averaged $5611 and grossed $207,600.

Lot 2, Cairnbrae Governors Althea, a yearling grand daughter of the world famous Greenridge FW Chief Althea, sold from A &

J Carson, Irrewillipe at $14,000 to J & M Cockerell, Numurkah. Next in the ring was Royal Rendezvous an imported Canadian ET Rapid Bay Grand Prix granddaughter of Whistler Rumour EX 95. She sold from Jennifer Hand of Larpent for $14,000 to First Choice Jerseys of Leongatha. Sale top of $16,500 came late in the sale when Prom View Jenny 170, a very stylish rising

3 year old with a PI of 112 by Blackstone, from Ross and Jenny Richards, Foster, sold to Matt Templeton. Other outstanding sales were Kaarmona Region Belle 7, a 9-month heifer backed by 8 generations of EX dams from the famous Duncan Belle family, offered by G & R Sprunt, Kaarimba, sold to Launder Farms, Middle Tarwin, for $9000.

Lerida Park Elton Lucy 70, a rising yearling with strong AI interest, offered by B & L Smethurst, Princetown, sold for $9000 to P & L Mumford, Won Wron. The same vendors also sold Lerida Park Larfalot Lucy 60, an outstanding in-calf heifer, for $9000 to the Cockerill Family, Numurkah. Selling agents were Dairy Livestock Services.

Western

Victorian

breeders sold Holsteins to $7600 at the Lakes and Craters Country multi-vendor sale, which returned an average of $3137 for 35 Holstein lots. In all, nine cows av $3256, 15 joined heifers av $2950, 6 unjoined heifers av $4375, 4 bulls av $1800 and 1 embryo package sold for $2800.00. Sale top of $7600 at the Camperdown Selling Centre was paid by Northern Victorian buyers R & R McMillan, Bronte Park Holsteins, Nanneella, for the six month heifer Jet Star Jetfinn Ami 2167 (ET). This lot sold with a predicted APR of near 300 and was offered by Steve and Jackie Mills, Rochester.

Second top of $6000 was reached twice when the outstanding young cow Emu Banks Roumare Pepita 5751 (ET) with ASI of +241 and a PI of 118, and due to sexed Gold Crown, sold to Daryl Hoey, Katunga. It was offered by B & J Dickson, Terang. Also selling for $6000 was the excellent rising yearling Glenlochland Reset Frisky 61, by a son of James Rose EX 97 and from the top daughter of the 15,000 litre EX Leader Frisky Cow. She was sold by C & G Van Leerdum, Simpson, to Warren Bay Pty Ltd, Grassmere. The stylish red heifer Jaguar Classic Rose 2 (ET) bred, from the Blackrose family and

offered by Adam Courtney, sold to Hallyburton Farms at $5200. Jennifer Hand sold the Show Champion Gatcombe Roy Bettine 2nd VG87 at $5000 to Tony Hogan of Skyview Holsteins, Merrigum. The McKie Family sold the classy heifer The Points Ernesto Pam, backed by generations of VGs to S & C Modra of Simpson for $4500. The Ross Family, Creswick, sold the smart yearling Kelenmar CS Lucky (ET), a Stormatic from Marion Dale Lucky EX 92, the dam of Lionhart, at $4200 to Ricky Nelson. Selling agents were Dairy Livestock Services and Charles Stewart & Co.

CrazyCow In Print

Western District Holsteins av $3137

Three-month-old dairy heifer Bluechip Apple Spice-Red at the recent Bluechip Invitational Sale where she went on to sell for a record $101,000. The price more than doubled the previous record of $50,000 and produced wide smiles on sale vendors Dean and Dianna Malcolm of Bluechip Genetics, Zeerust, near Shepparton. The calf is one of three red and white daughters in the world sired by Destry out of KHW Regiment Apple-Red-ET EX95, or "Apple". Apple is the reigning Grand Champion Red and White Holstein from the biggest dairy show in the world, World Dairy Expo (WDE), which includes more than 2500 animals and recently sold for US$1 million.

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Tamborine Pastoral Co

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Sensei Holsteins

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Cedar Vale Jersey Sale

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Eclipse/Eagle Ridge Holsteins Spring Sensation Sale

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D&B Kallady 2 stage dispersal

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Elite Holstein Sale

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Nov 29

Midway Park Ayrshires Final Sale

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Dairy News AUSTRALIA june, 2012

20 // management

Robotic rotary redefines young farmer’s role The first cows were milked on Gala, the Dornaufs’ 220ha former drystock block, in August last year on the oneIF ROBOTIC rotary milking is the sided 15-unit herringbone, while the future of large-herd Australian pas- rotary was being built. Dornauf was ture-based dairy farms, Nick Dornauf “delighted” when the 24-unit herringmust surely be the future face of dairy bone rotary first came into action in October , halving the milking time, even farming. University educated and technol- without robots at that stage. Automation started on February ogy savvy, the young farmer is relishing his part in “redefining the role of 20 with the system using five robots – the dairy farmer”. He manages, with two for udder preparation, two for cup attachment and one for partner Rebekah Tyler, teat disinfection after the greenfield farm Gala milking. They now milk near Deloraine in north250 New Zealand Friewest Tasmania which has sians, 90% heifers and been the pilot for DeLa10% mature cows, at val’s first commercial Gala and aim to reach AMR (automatic milk 550-600 cows by 2015. rotary). After three months, “Being involved with the Dornaufs already something cutting edge… Who: Nick Donauf have all the cows setI go to bed at night and Where: tled into the voluntary my mind races,” DorGala milking routine with all nauf said. What: attachments done by “I jump up out of Automatic milk rotary robots. They are about bed in the morning to start voluntary traffic inspired, as the ground we are heading over hasn’t been trod- to the rotary – currently the cows are den before, which makes it something bought up in batches. “Already it is redefining my role,” special.” Perhaps Dornauf inherited his entre- says Dornauf. “I am not physically preneurial genes from his grandparents milking cows at 4am – I am doing other Ian and Jenny Dornauf who came dairy jobs…. still getting up early. It is a fivefarming in the area in 1964 without pre- step process to voluntary and we are about three steps on the way, the last vious experience. Three generations of Dornaufs, two being voluntary traffic and refinincluding his parents Chris (who acts as ing that system.” AMR means Dornauf can be more an advisor at Gala) and Lyn, now own hands on with his herd. “You can go out four other dairy farms locally. PAM TIPA

Nick Dornauf

The AMR system ■■

■■

24-unit internal, herringbone rotary platform. Five robots: two for udder preparation, two for cup attachment and one for teat disinfection after milking.

■■

Robots use laser technology and a special camera to locate and attach the cups. Milk from each quarter monitored. Cows wear electronic ID

Automatic milking rotary at Gala.

and walk with the cows in the paddock. It’s a misconception you put a robot in, the job’s done and you walk away. It’s redefining your role as a dairy farmer.” Interpreting the new levels of data available from automation will be a key to future success of the dairy farmer, he says. “This dairy pulls out huge amounts of data every second. Our challenge as a farmer is to analyse and sort the data and make accurate decisions. Information like that is allowing us to be more proactive rather than reactive farmers.” With data on animal performance, milk yield, feed consumption and udder health, the biggest bonus with all AMS systems is getting these at per quarter level. Conventional rotaries with high levels of automation provide that data but only as a composite sample. “We pick up on outliers outside our normal data range a lot quicker than you would with composite samples. You pick up that one quarter is heightened straight away.” Gala uses DelPro which is DeLaval’s herd management system. “Its role is to collect all that data we get bombarded with every day and put it into a form is easy to analyse and make decisions upon. “I come to the dairy in the morning and can read a main report that can tell me how things have gone on a previous milking. It really is an age of managing your dairy farm on what quality reports you can derive.” Dornauf says using any AMS forces you to become a better pasture farmer. Gala operates a three-way grazing principle. For encouraging voluntary milking “the stimulus is the food running out in the paddock but also the grain we are offering at the dairy”. Most other pasture-based automatic milking systems do not have more than

300 cows, but as Gala wants to expand to 600 cows, the walking distances increase. “The [automatic] dairy itself can milk cows,” says Dornauf. “The challenge is adapting that to a pasture based

system whilst maintaining good pasture intake which is our key driver of profitability and making that work in a voluntary system. That is the bigger challenge of this project than the actual dairy itself.”

Attracting young farmers AUTOMATIC MILKING and other technological advances need to be adopted to keep young people in farming in Australia. “We didn’t have the choices the young ones have now in a career path,” Australian dairy farmer and chair of FutureDairy chairwoman Shirley Harlock says. “If we are going to feed the world from this part of the world we are going to need clever, educated farmers who will take this technology forward.” FutureDairy is an Australian research program which worked in collaboration with DeLaval to develop the Automatic Milking Rotary (AMR) demonstrated last month at an open day at the Gala farm in northern Tasmania.

“Farmers decades ago must have had some sort of commitment to the future… if you go back to herringbone technology, rotary dairy technology,” Harlock said at the open day. “As farmers we have an obligation to ensure we have a technology that will be ready for the uptake for the next generation of farmers. If we don’t excite them to come home, if we don’t excite them to take the advances that are there, we are going to lose them to other industries and sadly probably to agriculture. “If we are going to entice the next generation home they will need to become managers in technology.” Harlock says there is high aware-

ness of robots, but the farming systems at Gala were unique. More research is needed on marrying automated milking with the pasturebased systems of Australia. She described AMR as a quantum leap in agriculture – comparable to the development of artificial breeding – with the ability to transform our farm systems and milk harvesting capabilities. Harlock later told Dairy News a lot of rotaries and herringbones were coming to the end of their time, and farmers would look at automated systems as they replaced old dairies. FutureDairy would support farmers through those decisions on what technology they required.

Dairy NewS AUSTRALIA june, 2012

management // 21

Farmers face national health and safety rules Any injury on a farm

comes at a direct cost to the person involved and the business and the fines are additional costs. Dairy Australia’s Dr Pauline Brightling who manages The People in Dairy program said workplace fatalities and serious injuries associated with machinery use received a lot of media coverage, but manual handling injury was the biggest source of claims associated with

farm workplace health and safety. Manual handling claims tend to be associated with repetitive work resulting in muscle or back injury. “These injuries often involve extended time off work. In addition to the personal injury, it is inconvenient and costly to the employer. Prevention is a far better approach,” Dr Brightling said. “There is an emerging trend towards increases

in manual handling injuries on dairy farms, particularly at large operations where workers may spend longer periods on repetitive tasks in the milking shed; for example cup attachment.” Under new, nationally uniform legislation being introduced from this year, workers and others at the workplace have a duty to take care of their own safety and to ensure their activities do not affect the

health and safety of others. The duty of care also applies to contractors and volunteers such as Land Care groups working on the farm. Dr Brightling said the duty of care involved providing and maintaining a safe work environment, safe systems of work, safe plant and structures and the provision of health and safety information and instruction. In practice this means

Dr Pauline Brightling

duty holders must identify potential hazards at the workplace and take positive steps to eliminate them or, if this is not possi-

ble, to minimise risk. Dairy farmers need not feel daunted by their work health and safety obligations, Dr Brightling said. “Most dairy farmers want to provide a safe workplace,” she said. “Sometimes the challenge can be working out where to start. It’s actually easier for dairy farmers than many other workplaces because there are a range of checklists and tools available on the

web that have been custom-developed for dairy farms.” Checklists, tools and more information are available from www.thepeopleindairy.com.au click on live library; farm policies & systems; health and safety risk. Or for good resources on preventing injuries in the dairy visit www.cowtimecom.au - click on shed shake-ups; then click on Pits n People.

It takes a skilled hoof trimmer to get the balance right.

Time for hoof check END OF season is a good

time for hoof trimming maintenance. Hoof trimming does not stop laminitis but it does help to minimise the effects of laminitis, says Veehof. Trimming the cows at this time of the year means they will have well-shaped feet by the time they calf, and so suffer less from calving-induced laminitis. Remember that if the weight is distributed evenly over the claw then it is less likely for the outer claw to pack up due to the combination of overload and being sick. It is a bit like having a trailer with two old tyres. When you load such a trailer, but put the entire load on one side of the trailer, then the tyre on the loaded side is much more likely to burst than the tyre on the other side. If you spread the load evenly over both tyres then you are less likely to end up with a flat tyre. It may still happen but it is less likely. In the same way, if you spread the weight of the

cow over the two claws, rather than letting the outer claw do most of the work, you are less likely to end up with a lame cow. The reason the outer claw usually does most of the work is because it tends to grow bigger than the inner claw. This is why cows usually go lame on the outer claw. If you trim the outer claw back to the same height as the inner claw then you are spreading the weight evenly over the two claws. It sounds like a simple and easy process, but it actually takes a skilled hoof trimmer to get the balance right. Successful hoof trimming requires professional training and correct equipment. Veehof uses a specifically designed WOPA crush that protects the animal and the person doing the trimming, appropriate knives, the best claw and bonding products, and protective safety gear.

Dealing with downers A downer cow is usually a late-pregnant or recently calved cow lying down on her chest or side and unable to rise. This is a veterinary emergency and if you need advice contact your vet without delay. However, if the cow still alert (bright, aware of her surroundings and responsive), treatment is not as urgent, but should commence as soon as possible. Things to check: Physical danger – move the cow immediately if she is lying on the edge of a dam or creek or under an electric fence for example • Posture - if she is lying on her side, roll her upright and support her to avoid bloat. If her head is facing downhill, there is a danger of her regurgitating and choking • Surfaces – lying on hard surfaces and gravel can damage the skin, muscles and nerves of the legs, so the cow should be placed on soft, deep bedding material • Weather – the cow will require shelter if the weather conditions are wet or extremely cold or hot. Euthanasia should be considered if treatment is not a viable option. Trigger points for euthanasia of a downer cow include: • non-alert or incurable conditions e.g. fractures, tendon ruptures • lack of response to treatment within a reasonable time period • cow is lying on her side despite adequate treatment

• pain and suffering • not willing to eat or drink despite adequate treatment • obvious “bed sores” or swollen joints/limbs A cow with a condition like calving paralysis, which might take several days or even weeks to recover, should be moved to a suitable nursing area. A cow with uncomplicated milk fever, which would be expected to make a full recovery within half a day, might be best treated before making a decision to move her. Detailed advice on dealing with downer cows is available on the Dairy Australia website at www.dairyaustralia.com.au/managing-downer-cows A non-alert cow should be rechecked within two to four hours for signs of improvement. A cow with an infectious condition such as Salmonella should be monitored 6-8 hours following treatment. For alert downer cows re-assessment should be no longer than 8-12 hours from the initial treatment. If the cow is unable to stand on her own after that time, lifting should be tried, unless she is still non-alert or not considered strong enough to lift. Many cows will be able to walk away when lifted. If not, the cow should be moved to a suitable nursing environment at this stage. Cows still down on the second and subsequent days need to be re-assessed at least once each day. The longer the time the cow is down, the more likely it is she will develop secondary problems.

This is one of the many examples of the dairy service levy at work locally. For more information on this and other levy investments visit www.dairyaustralia.com.au

Dairy News AUSTRALIA june, 2012

22 // calf rearing

Calf feeder a smart move for Darling Downs farmers

Replacements are your herd’s future

Gordon Collie

The switch to an automated

calf feeding system has been a good investment for Darling Downs farmers Scott and Victoria Menkins. The result has been healthier, faster growing calves which have allowed Menkins to artificially inseminate her heifers at a younger age. “We used to have to wait until the heifers were 16 to 24 months to reach the necessary weight around 350kg. Now we can do their first insemination at 14 to 16 months,” Menkins said. The couple who farm at Rosalie Plains, north of Oakey installed three automatic units for calf feeding in 2009 and with a facility upgrade, their all-up investment was about $40,000. They have been rearing up to 75 calves a year for herd replacements. The calves are hand fed for the first seven days before going onto the ad lib feeding system with each animal’s intake monitored by an electronic ear tag. The system is cleaned and replenished with fresh milk at each milking with an allowance of 7 to 8 litres for each calf daily. The calves are introduced to sorghum straw and a grain ration when they go onto the system and start eating at about two weeks. Menkins said the self feeding system allowed her to spend more time focused on calf health and hygiene. “It doesn’t save any time, but the results are better. It’s also a good system when you have staff who might not be experienced calf rearers,” she said. A feed additive is used to stimulate

Who:

Victoria Menkins Where:

Oakey What:

Automated calf feeders

Your replacement heifer

Above: Scott and Victoria Menkins have installed three automatic calf feeders. Below: Victoria Menkins with young calves.

rumen activity and medications are only added to the feed when there is a problem with calf health which needs attention. The calves are wormed and get a seven-in-one vaccine at 21 days with booster treatment when they are

weaned after 60 days on the milk feeder. “We aim to have the calves around 110 to 120kg when they are weaned then they grow out really well in the paddock.” Menkins said. “Getting them a good start certainly pays dividends for us.”

calves represent your dairy herd of tomorrow. They will introduce the latest genetics into your dairy herd for milking performance and breeding. Look after them well from the start: ■■ Rear calves in a clean, dry, warm, and well-ventilated area. Air movement above the calves is important to prevent them getting pneumonia. ■■ Record keeping is essential. Records let you see what has happened and where calves are up to. ■■ Plenty of top quality colostrum is the key to calf health. Calves must receive 2-3 litres of colostrum within 12-24 hours of birth. There is little to be gained from leaving calves with cows longer than 24 hours. ■■ Get calves on to once-a-day feeding as soon as possible. Once-aday feeding encourages greater intake of dry feed leading to early rumen development, less health problems, reduced rearing costs and better post-weaning growth. ■■ Provide adlib access to clean water and a high quality concentrate (does not need to be greater than 18% protein) from day one. Access to fresh leafy pasture

should be provided as soon as possible, depending on the rearing system used. ■■ Give individual attention and make time to look for signs of sickness in the first few weeks. ■■ Have a disease action plan that includes good hygiene, isolation, fluid replacement and tender loving care. Use of veterinary medicines or drugs should complement a well-managed calf rearing system. ■■ Give 7-in-1 vaccinations for common clostridial diseases and leptospirosis once older than six weeks. ■■ Aim to have a healthy fully weaned calf (100kg for Friesians, 80kg for Jerseys) at 12 weeks of age. This is the first phase in calving heifers at two years of age at desired bodyweights. Underweight calves at weaning will be light at their first calving with associated production penalties. If rearing calves is not your thing, get someone else to rear them. They are the future of your business, so make sure they are well looked after. * Department Primary Industries, Tasmania

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Dairy NewS AUSTRALIA june, 2012

calf rearing // 23

Early care critical to calfrearing success A colostrum man-

agement protocol is important to ensure calves receive enough antibodies but colostrum alone does not guarantee calf-rearing success. Calf-rearing facilities and abilities vary widely on farms of all sizes, and in my experience, many of the calf-rearing facilities I see are less than ideal while some are grossly inadequate. I have seen some outstanding results in poor facilities and some poor results in outstanding facilities, so clearly the human factor has an enormous impact on the success or failure of a calfrearing enterprise. There is a lot of science to rearing calves, including understanding the nutritional requirements, air quality and disease processes, but there is also an art to rearing calves. The art is the intangible “sixth sense” that a compassionate calf rearer has. It is the ability to detect a calf that is offcolour before it “crashes and burns” and taking the extra care to ensure that calves are always clean, dry and well fed. I think that the “care factor” is one of, if not the most important factor in rearing success. Ensuring adequate nutrient intake is another critical factor. It is my belief that severely-restricting milk intake especially in the first three weeks of life in an attempt to drive early concentrate intake is actually counterproductive and malnutrition is a common cause of immune compromise and subsequently disease. There is an increasing body of evidence to support the argument that really young calves cannot ingest (or digest) enough concentrate at one to two weeks of age to supply their critical energy needs if they are on a severely restricted milk intake.

your experienced dairy veterinarian. So with calving season fast approaching, call your vet now to book a visit and get some written protocols

animal health rob bonanno Dairy vets are constantly called out to “sort out” a calf disease outbreak. Here is the difficult truth: No drug that I can prescribe will overcome poor hygiene, malnutrition and poor air quality or cold wet calves living in squalid Third World conditions. By using on-farm diagnostic tests like the AxCss-4 kits, rapid diagnosis of Rotavirus, Coronavirus, E coli and Cryptosporidium is now easy. Early intervention to collect disagnostic samples from scouring calves and necropsy (post mortem) examination of calves which die provide valuable feedback to help us to identify the best prevention and treatment strategies. Far too often, calf disease is treated in an almost random manner with little in the way of diagnosis or record keeping. This increases the risk of violative antibiotic residues, failure to recognise the true incidence of calf disease and treatment failure, which is common when inappropriate treatment is given. Accurately diagnosing the problem allows us to identify where the system has failed and where to target prevention and treatment strategies. Your dairy vet is the best person to advise you on vaccination and calf biosecurity issues to control diseases like Johnes Disease and pestivirus. The professional vet who is best qualified to provide unbiased scientifically verifiable advice on calf rearing is

in place. Rob Bonanno is past president of the Australian Cattle Veterinarians Association and a director of the Shepparton Veterinary Clinic.

There is a lot of science to rearing calves, including understanding the nutritional requirements, air quality and disease processes, but there is also an art to rearing calves.

Dairy News AUSTRALIA june, 2012

24 // calf rearing

Understand best calf milk replacers for your herd Modern milk

replacers can be used to successfully rear healthy calves but before deciding to use a milk replacer you should weigh up the advantages and disadvantages for your calf rearing system. Ease of handling with automated calf feeding systems, high milk prices and minimal waste milk are reasons why they are favoured on some farms.

Only high quality reputable products should be used otherwise health problems and poor growth rates may result.

Composition of milk replacers Clot-forming or non clot-forming Traditional milk replacers are made from downgraded skim milk powders, and are digested like whole

milk, forming a clot in the abomasum. Early products varied in quality - mostly due to the processing of casein - and sometimes caused scouring. The majority of milk replacers sold in Australia still contain significant percentages of skim milk powder. Whey proteins are digested in the small intestine and do not form a clot

in the abomasum. The increasing value of casein and improvements in filtration and purification methods have seen whey based milk replacers that can produce average daily weight gains and performance comparable to casein based products. Modern whey based milk replacers lead the market in the US and Europe and are gaining share in New Zealand.

Suitable protein sources for a milk replacer Optimum

Acceptable

Questionable/ not recommended

Skim milk powder

Chemically modified soy protein

Fish protein concentrate

Buttermilk powder

Soy concentrate

Soy flour

Dried whole whey

Soy isolates

Dried distiller’s soluble

Delactosed whey

Dried brewer’s yeast

Casein

Oat flour

Milk albumin

Wheat flour

➤

Protein A newborn calf is better able to digest milk protein than plant protein sources. Milk proteins are the best sources for growth and development of calves and should provide most of the protein in a milk replacer. With increasing age, calves develop better capacity to digest other proteins and so milk proteins become less important. Other protein sources have been used in milk replacers with varying success (see table left). Soy protein is the most commonly used alternative to milk protein in milk replacers. Processing of soy protein is required to make it more digestible and remove factors which may inhibit calf growth. Wheat based proteins may also support adequate calf

Calf milk replacers Advantages ■■

Consistency of product (when mixed correctly) – less risk of digestive upsets and scours

■■

Can be stored and handled more easily than liquid foods

■■

Easily fortified with additional vitamin, minerals and medicines if necessary

■■

A potential cost benefit over saleable whole milk

■■

Less risk of disease transfer from cow to calf

■■

Well suited to automated calf feeding systems

Disadvantages ■■

Cost compared to feeding unsaleable/waste milk

■■

Labour required to mix

■■

Need space and facilities for dry storage

■■

Risk of spoilage by rodents

growth rates and may mix better than soy proteins. Crude protein levels in milk replacers commonly range from 18-25%. High levels of non-milk proteins are often used to compensate for low protein digestibility. The sources of protein should be listed in the product ingredients, but the actual percentage each contributes to the overall protein content may not be listed.

Additives Vitamin, minerals and animal health medications are commonly added to milk replacers. Ionophores such as lasalocid and monensin help control coccidiosis, and may also have a growth promotant effect. The use of cocciostats in calves less than 2-3 weeks is of questionable value, and lasalocid is potentially toxic when given to calves less than 24 hours old.

Fat

Mixing of milk replacers

Fat can be derived from animal based products such as tallow, or cheaper sources such as palm or coconut oils, all of which are highly digestible and suitable if properly dispersed into the milk replacer. Levels between 10 and 20% are suitable for calf growth.

Consistency is the key. Always read the label and mix according to the manufacturer’s directions. Many automated calf feeders are designed to handle powdered milk, making it easier to transport food to the calf shed. This information was provided by Dairy Australia.

➤ Are your calves cross suckling (licking navels, chewing ears)? ➤ Are your calves coughing after feeding? ➤ Are your calves getting nutritional scours or just not thriving?

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Dairy NewS AUSTRALIA june, 2012

calf rearing // 25

Fixed time AI aids calf rearing management Fixed time AI can help

streamline calving and calf rearing management, according to south west Victorian dairy farmer Jock O’Keefe. O’Keefe, from Winslow, took on an Ovsynch program because his herd fertility was declining. Over the two years of the program, his six-week in calf rate has Increased 2-3 % to 51%. “Once we get them AI’ed we have a break of two to three weeks when we can concentrate on other jobs,” O’Keefe said. “It minimises the amount of work and we all do a better job when we’re focused for short periods.” On many farms, like O’Keefe’s, the benefits of FTAI are also seen as cows calve. “We calve in batches so our staff have a busy calving down week then they get around a 10 day break before the next calving period,” O’Keefe said. “We find we can rotate staff through the calving periods.” A more even spread of calving also means that each batch of calves born around the same time grows out more evenly. “We get a lot of calves in the shed at once and it makes them a lot easier to manage and makes the entire operation a lot more streamlined,” he said. A good rule of thumb is that a maximum of about 30% of the cows that conceive on the day of FTAI will calve on the same day. Therefore, a maximum of 30 cows would be expected to calve on one day (60 cows if the CR doubled). In seasonal calving herds, cows that calve earlier in the season are more fertile at Mating Start Date, and tend to have fewer problems as a result of mismanagement of their lead feeding and calving observation fatigue. Professor Gabriel Bó from Argentina, a specialist in cattle reproduction, said calves born earlier

tend to have less disease problems. “There is less contamination of calving and calf rearing areas, and they tend to be heavier and more fertile at joining time,” he said. Professor Bo was brought to Australia by Bayer Animal Health recently to speak with dairy farmers, vets and AI specialists on synchronisation programs to improve cattle fertility. His visit included producer meetings at Sale, Glenburn, King Island, Timboon and Hamilton as well as a number of small group discussions with vets and students. The keys to reproductive success in dairy cattle are to increase the efficiency of detecting when a cow is ovulating and to control the time when a cow ovulates, Bo said. “Just 15 empty cows out of 300 may cost the dairy several thousand dollars in lost milk production,” Professor Bo said. At least eight out of 10 Australian dairies have under-performing herd fertility, according to Dairy Australia statistics. “Even fixed time AI with relatively poor first service conception rate (CR) is still likely to produce fertility superior to other programs in terms of a better six week in-calf rate (ICR),” he said. A conception rate (CR) to first service of just 20% to FTAI would deliver a 30% better six-week ICR and 53 more heifer calves. Bayer’s proprietary ProSynch program uses fertility regulators that cause a herd of cows to ovulate simultaneously ready for artificial insemination. To become pregnant, cattle must be inseminated around 12 hours before ovulation. “In larger herds or where milking staff may not have the skills or inclination to be expert heat detectors, Bayer’s ProSynch is an ideal solution because heat detection is not required,” Professor

Bo said. “An entire herd can generally be artificially inseminated without doubling the time taken for a normal milking.” One advantage of FTAI

is that a significant percentage of the herd (typically 25-35%) becomes pregnant in one day. “A good morning’s work,” as one farmer described it.

More calves in the shed at once makes them a lot easier to manage.

Dairy News AUSTRALIA june, 2012

26 // calf rearing

Which calf housing system There are more calf housing options available than in the past and Dairy Australia says each have their advantages and disadvantages. This guide has been supplied by DA to help you choose which system is right for your business. Regardless of what

calf housing system you use, all calves should be raised in an environment that is: ■■ Clean ■■ Dry ■■ Well drained ■■ Provided with sufficient bedding ■■ Draught free and well

ventilated Free of projections that may cause injury. When selecting a calf housing system, you will need to consider your climate, budget and labour constraints and individual preferences. Calf housing does not have to be elaborate to be effective. The ■■

focus should be on providing calves with shelter from the weather and plenty of clean bedding. Remember, even the very best facilities will not succeed without proper management. Within a farm, combinations of housing systems may be used for

Hutches made of polyethylene or fibreglass can be purchased commercially.

calves of different ages e.g. a common hybrid system is individual housing for the first 2-3 weeks followed by group housing. Whatever system you use, calves housed in pens must be able to turn around, lie down and fully stretch their limbs.

Individual versus group housing Individual housing may achieve the best disease control and allows the rearer to closely monitor each calf. However, group housing is preferred unless disease control issues require individual penning. Individual housing Dismountable individual pens should be designed so that partitions can be taken apart and stored when they are not needed, and the pens are easily cleaned with available equipment. As pens form a microclimate inside the larger housing system, it is important to consider ventilation and draughts at the calf level within the pen. A floor area of 2.0 m2 should be provided for each calf in individual pens

to permit self-grooming and prevent overcrowding. Calves housed in single pens should be able to see neighbouring calves, and kept in the company of other calves from three weeks of age.

Group housing Group management is simpler than individual management but equally, it is harder to respond to individual needs. Calves should be grouped by size and age to reduce competition and facilitate observation and management. Small group sizes of 5-10 calves combine the advantages of group management with ease of record keeping and monitoring. Fewer pen divisions are needed, and access for cleaning is usually easier in larger pens. A floor area of 1.5 to 2.0 m2 should be

provided for each calf in group pens to permit selfgrooming and prevent overcrowding. The increased physical contact between calves increases disease risk so it is essential to have facilities for segregating or isolating sick calves. When calves are fed in groups, care is needed to ensure that all calves, even the slowest drinkers, are consuming what they need and that fast drinkers are not consuming too much.

Tethering Tethering is considered acceptable as long as calves are provided with suitable shelter, and access to adequate water and nutrition. Tethering method should not cause injury to the calf and all calves should be able to move around and exercise.

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Dairy NewS AUSTRALIA june, 2012

calf rearing // 27

is right for you? Fully enclosed versus open housing Fully enclosed Fully enclosed, controlled climate (heated and ventilated) calf sheds are usually not justified under Australian conditions. Open housing Open or partially enclosed housing that provides passive cooling is the most cost effective option in most regions. The closed sides should protect calves from prevailing winds and rain but windows can be used to improve ventilation in good weather. Remember to check natural ventilation at calf level. Purpose-built versus retro-fit/ temporary Purpose-built A purpose-built shed could include: ■■ A storage area for feed, medications and equipment ■■ A hospital area for sick calves ■■ An area for handling calves e.g. a draughting race with crush pens or stalls ■■ Weighing equipment ■■ Computer facilities ■■ Electronic scanning equipment ■■ A loading ramp Retro-fitting/ Temporary Temporary pens can be constructed out of steel reinforcing mesh weldmesh or gates or hurdles. If outdoor, shelter can be provided using tarpaulin to cover one corner from prevailing winds or large hay bales. Temporary outdoor pens can easily be moved to a clean area of the paddock. Existing buildings can be converted to calf sheds, but they may need modifications e.g. hay sheds can be effective calf shelters, using stacks of fodder to block the weather. The air space of the building needs to be considered when planning stocking rates, not just floor area, otherwise respiratory disease can result. In some buildings, ceiling height can severely limit air space. Hutches Hutches made of polyethylene or fibreglass can be purchased commercially.

Homemade hutches can be constructed from material such as marine plywood. Some designs can be turned upside down for thorough cleaning and wheels may be fitted to make them easier to relocate. Hutches are usually 1.2-1.5 m width and 2.02.4 m length although smaller hutches (1.2x1.2m) are cheaper and acceptable in warm climates. To provide shelter from the wind, hutches should be twice as long as they are wide. The calf can either be restrained using a collar and chain or contained in an outdoor run (at least another 2 m2), enabling some contact with other calves. Hutches should be placed so calves can see each other, but at least 1 m apart, to prevent physical contact between calves (to control the spread of disease). Hutches should be slightly elevated to allow drainage and prevent flooding. A 15cm layer of sand, gravel or crushed stone, or a pallet can be used and ideally the outdoor run should slope away from the hutch. Securing the feed and water buckets outside the hutch is labour efficient and helps keep the calf’s pen dry. Hutches should not be placed in excessively hot, windy and wet locations, but a sunny location in winter will allow the run and part of the bedding to dry out. Light coloured, reflective hutch materials will reflect sunlight and prevent the hutch from heating up too much. During hot summer conditions hutches should be placed in a shady area, or extra shade may need to be provided. Fold down or removable ventilation panels may be used and hutches can be raised on concrete blocks to increase airflow underneath.

Igloos Igloos are designed for groups of calves, and allow the calf to choose between a sheltered warm environment and an outside area for exercise and play. Deep litter sheds Deep litter sheds (also

known as Greenhouse barns) are available in all sorts of designs, sizes and materials, or are commercially available as Ecoshelters. Site preparation is needed. Curtains can be incorporated so sides and ends can be used for controlling temperature and ventilation. They retain heat so are warm in winter, although care needs to be taken to maintain ventilation when side curtains are rolled down.

Conclusions There is no single best

way to rear calves and there are endless variations within each system. Any calf housing system will need to be tailored to the individual farm’s particular circumstances (budget, staffing, facilities, preferences, and climate). Remember that the aim of all calf housing systems is to protect the calves’ welfare by providing a clean, safe and comfortable environment. Contact Dairy Australia on (03) 9694 3777 or www.dairyaustralia. com.au for further information.

Open or partially enclosed housing that provides passive cooling is the most cost effective option in most regions.

Rearing healthy calves In many dairying areas of Australia with seasonal herds, calving coincides with the onset of cold, wet and muddy conditions. To ensure calves born at this time of year come through the cold as strong as possible extra attention to detail is imperative when it comes to calf rearing. Dairy Australia’s Rearing Healthy Calves manual details the nine essential components, which are: • Precalving care – heifer target weights, preparing calving environment. • Clean and comfortable environment – ventilation, drainage, bedding. • Identification and traceability – identifying treated and sale calves, NLIS tags. • Colostrum management – absorption and immunity, assessing quality, timing, quantity. • Nutrition – fibre, milk replacers, grain/concentrates. • Residue risk management – residue testing, contamination scenarios. • Health management – prevention, managing sick calves, vaccination, scours. • Weaning management – nutrition, managing disease, weaning age. • Care before transport and sale – new national standards, care prior to pick up. It is important to remember each of these areas cannot be overlooked. In the depths of winter, providing dry, clean bedding is critical because it helps control a calf’s body temperature. Less energy is then used for keeping

warm and more can be directed to growth. Suitable materials include wood shavings, bark or rice hulls; it should be kept at a minimum of 15cm deep at all times. Well grown and healthy calves turn into productive herd replacements. Remember, providing enough good-quality colostrum very soon after birth gets calves off to a great start. But beyond the first couple of days the nutrition focus needs to turn to the right amount of milk or milk replacer and good quality concentrate to achieve good growth rates and excellent rumen development and function. Some handy tips to remember include: • Provide access to fresh clean water from birth • Warm vs cold milk? It doesn’t make any difference but be consistent • Only use good quality milk replacers; mix to manufacturer’s directions to ensure consistent results • Introduce small quantities of grain or grain based concentrates from day one; the breakdown chemicals drive rumen development • Introduce a source of good quality fibre about day three; calves need fibre to ensure healthy rumen function • Monitor growth rates regularly; measure the height and weight of a representative sample of calves If calves are reared by staff or another family member, it might help for them to read the Rearing Healthy Calves manual or have their own copy. If you don’t already have a copy, visit www.dairyaustralia.com.au/ healthycalves or phone 03 9694 3759 to order one.

This is one of the many examples of the dairy service levy at work locally. For more information on this and other levy investments visit www.dairyaustralia.com.au

Dairy News AUSTRALIA june, 2012

28 // calf rearing

Colostrum management makes all the difference Colostrum management is the single most important management factor in determining calf health and survival. A significant number of dairy calves suffer from failure of passive transfer of antibodies from colostrum, contributing to a high rate of neo-natal calf disease, including calf scours and pneumonia, and excessively high preweaning mortality rates. A successful colostrum management program requires producers to consistently provide calves with a sufficient volume of clean, high-quality colostrum within the first few hours of life. The physiology of the bovine placenta prevents transfer of maternal serum immunoglobulins (antibodies) to the calf before it is born, so the newborn calf is totally dependent on colostral immunoglobulins for protection from disease. Colostrogenesis (the production of colostrum) begins around five weeks prior to calving, so care of the cow in late gestation is vital in ensuring a good supply of high quality colostrum. Body condition, transition diet and the timing

Calves that have had a good start on their home property have a lifelong advantage.

of pre-calving vaccinations all have an impact on the quality of colostrum. The quality of colostrum declines very quickly after calving and with subsequent milkings. By the third milking there is less than half the amount of immunoglobulins in the colostrum, compared with the first milking. Colostrum management can sometimes appear overwhelming, particu-

larly when you have a large number of cows calving each day or are facing a calf scours outbreak, so pre-planning is vital. The basics of colostrum management can fall into four categories: ■■ Cow care – body condition score, transition diet, pre-calving vaccinations (against calf scours, Lepto and Clostridial diseases) ■■ Colostrum collection

and storage – collect first milking colostrum as soon as possible after calving. Feed fresh or if there is a delay in feeding, cool to reduce bacterial growth. Keep a stock of frozen colostrum ■■ Colostrum quality – measure with a colostrometer or refractometer. Good quality colostrum has more than 50mg of IgG per ml (a reading of 22% or greater on a brix refractometer) ■■ Quantity and timing – a rough guide is to feed 10% of bodyweight in the first 12 hours after birth (for a 40kg calf feed 4 litres, spread over 2 feeds) and follow up with another 10% in the second 12 hours. Dairy heifer rearer Simon Gleeson sees firsthand the impact a good start can make on replacement heifers. Simon specialises in growing out replacement heifers at ‘Bilyana Grazing’ at Brucknell in south west Victoria and manages more than 2000 heifers each year. “Calves arrive at our property

shortly after weaning and go straight onto concentrates, where we can get average daily gains of between 0.8-1.1kg/ day. Once they get to 200kg liveweight they are weaned off the pellets, onto pasture and we aim for a joining weight of around 400kg,” said Simon. “We find that heifers that have had a good start on their home property do really well under our system. Heifers that have done it tough early for whatever reason, are the most difficult to get to their target weights. “There has been a lot of effort by dairy farmers over the last few years to get colostrum management right and we have certainly seen this in the quality of the heifers coming through. “Lots of clients are now using scours vaccines such as Bovilis S and Bovilis E in their calving cows to prevent scours outbreaks. They are getting more calves to weaning and these calves are performing better. There are many challenges to raising replacement heifers but it’s vital that everything is done to the highest standard right from the start,” he said.

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Dairy NewS AUSTRALIA june, 2012

animal health // 29

Assume none from mum Farmers should

The powder hopper on the WesfaliaSurge automated feeder control unit is clear to allow the operater to check the filling level.

Like having your own chef in the shed Megan Kennedy

Automated calf

feeders can make the dayto-day feeding of calves easier and minimise the routine tasks involved. The time needed to care for calves with an automated calf feeder is about one minute per calf. This compares with five to 10 minutes per calf in individual housing. Automated calf feeders allow calves to drink more frequently. Research shows when calves are fed three times a day instead of two, they have a better chance of entering the milking herd. How much and what a calf drinks are also measured by the automated calf feeder. Every calf can be recorded and monitored through the calf’s ear tag or neck band from the day it is born. Because automated calf feeders keep track of the calves’ feeding habits, the machine is able to continually monitor the calves. Computer reports tell the calf rearer when there is a sudden change in how much a calf drinks, which can be a sign of illness. Keeping the automated calf feeder clean is very important. Hoses, the feeder itself, nipples and the feeding area must

all be kept clean. Hoses and nipples need to be monitored and manually cleaned on a regular basis. This usually requires only a few minutes each day. The machine itself can be programmed to automatically clean the mixer and distribution valves up to four times each day. Day-to-day management of calves changes with an automated calf feeder, as calves will be in group pens. Planning must be done ahead of time about how newborn calves will be introduced to the machine. Thought must also be put towards how vaccinations, dehorning and any other practices currently done in individual pens will be done in a group housing setup. The person in charge of the calves becomes even more important – because they will now be managing calves, not just mixing and carrying bottles. WestfaliaSurge has two Automatic Calf Feeders and they are available in two configurations — as a milk powder only unit (J-V600), or as a combination milk powder and fresh milk unit (J-V640). Powdered calf milk replacer offers ease and consistent high quality nutrition for the calf. The combination

powder and fresh milk unit goes further in allowing the use of powder only, fresh milk only, or powder and fresh milk combined. The main features of the WestfaliaSurge Automatic Calf Feeders are: ■■ Individual stalls and calf ID ■■ Powder hopper: Milk replacer powder is loaded into a transparent powder hopper, allowing the operator to check the filling level. ■■ Dosing unit: Feed additives mixed with the milk can be added through the dosing unit. ■■ Automatic calibration: This ensures the correct amount of milk or milk replacer powder is mixed and fed to each calf. ■■ Operator terminal: Extra keys and a large display make the hand terminal easy to read and calf or feeding information can be entered quickly via the keypad. ■■ Temperature control: Regardless of the weather, the heating control keeps the milk at the correct temperature. Megan Kennedy is a staff member of GEA Farm Technologies Australia.

“assume none from mum” and always give extra colostrums, according to The Vet Group veterinarian Zoe Vogels. Dr Vogels said calves were born without antibodies to fight disease and need to absorb the antibodies present in firstmilking colostrum. Those with low antibodies face an increased risk of dying. “A lot of calves left to drink colostrum from their dams will have no antibodies at all. For whatever reason (poor mothering, poor calf vitality) they do not drink enough or indeed any colostrum. All calves should be hand fed an extra feed or two of first-milking colostrum in their first day of life.” Research conducted by Dr Vogels shows collect-

Victoria have a lack of antibodies to fight disease and almost 10% have no antibodies at all. Dr Vogels said the problem could be substantially eased if farmers started feeding their calves colostrum twice a day. The survey found that calf breed was related to antibody levels. Compared to Holstein Friesian calves, Jersey calves and Jersey crosses were half as likely to have low antibody levels, and dairy-beef crossbreds were three times as likely to have no antibodies at all. Compared to heifer calves, bull calves were twice as likely to have no antibodies at all. “People purchasing and rearing dairy-beef crossbreds and bull calves

ing calves from the calving area at least twice a day to give them colostrum will improve calf antibody levels even further. “The ability of a calf to absorb colostrum antibodies across the intestine decreases pretty quickly once they’re born. They’ll be able to get the most from the colostrum you give them if you give it earlier,” she added. The amount of antibodies that a calf needs in its blood is about equal to its body weight in grams. The study was conducted in Western Victoria where blood levels from more than 1000 calves on 100 farms were tested to determine their level of antibodies. The survey showed 40% of calves born on dairy farms in Western

should be aware of their increased risk of disease and death and need to take action to minimise the risk of disease through best-practice housing, nutrition and treatment protocols,” Dr Vogels said. “During the course of the survey, we found that low antibody levels on a farm did not necessarily mean sick or dead calves. “Some of the herds with poorer antibody transfer did not report a problem and, conversely, some herds with the better results had quite significant calf disease. “This illustrates the fact that calf health is a fine balance: colostrum management, housing, nutrition and treatment protocols all play a vital role,” Dr Vogels said.

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Dairy News AUSTRALIA june, 2012

30 // animal health

Know your cows’ stress signals

Vitamin D helps Mastitis control ALAN HARMAN

DAIRY FARMERS need to iden-

tify signs of cow stress to improve the milking experience for both animals and staff, a cow behavioural expert says. Darold Klindworth, a research and extension scientist at the Department of Primary Industries, Ellinbank, was among speakers at last month’s Dairy NZ Farmers Forum at Mystery Creek. “When a cow is stressed, it can lead to lower milk yields, increased milking time and higher animal health costs. Plus, if your cows are stressed and acting out, that often creates stress for staff as well,” he warns. While many cows demonstrate outward signs of stress, some don’t. “That’s why it pays to learn a bit about how cows are naturally hard-wired to react to certain stimuli around them. That way, you can create a better milking experience

Darold Klindworth

for the animals and farm staff.” Klindworth says the way a cow responds to loud noises, sudden movements or even certain smells is in its evolutionary nature. In the wild, survival depended on responses to activities around them. For instance, their natural response to a sudden movement or noise is to flee. So if a farmer suddenly flaps his arms and shouts, cows will get agitated and flighty

rather than choose to walk calmly into the milking shed.” Research shows stressed cows have increased adrenalin levels, adversely affecting milk let-down, sometimes by as much as 30 minutes. “So, if we can eliminate activities such as forcibly pushing cows into the shed, for instance, we can speed up milking times significantly.” Decreasing cow stress can also have a significant impact on animal wellness. “Stress is one of the many factors that can increase a cow’s probability of being infected with mastitis. Additionally, stressful trips down the race or anxiety due to crowding inside the yard can contribute to lameness. “In the end, happy cows can lead to a decrease in farm working expenses and increased profitability.”

A NATURAL remedy, vitamin D, can delay and reduce the severity of mastitis infection in dairy cattle, say US-based researchers. Scientists at the Agricultural Research Service’s National Animal Disease Centre in Ames, Iowa, say the discovery could lead to a reduced use of the antibiotics to treat mastitis, the most costly and common disease of dairy cattle. Molecular biologist John Lippolis examined the role of vitamin D in altering the response of the cow’s immune system to Streptococcus uberis, a mastitis pathogen. The research team used a natural form of vitamin D, prehormone

25-hydroxyvitamin D, that’s found in blood, but not in milk. One group of cows received vitamin D by infusion directly into the infected quarter of the mammary gland, and another group received no treatment. Data was collected on feed intake, bacteria counts in milk, milk production, serum levels, and body temperature for all animals. Animals treated with vitamin D had a significant reduction in bacterial counts and fewer clinical signs of severe infection than untreated cows. In the early phase of infection, as vitamin D reduced the bacterial counts, milk production was greater in the treated animals than in the untreated ones.

Scientists also looked at bovine serum albumin (BSA) in milk and performed somatic cell counts, the immune cells that enter the mammary gland to fight infection. “BSA is a protein in blood that becomes a marker in milk to indicate when an infection gets really bad,” Lippolis says. “The barrier between the milk and the blood can become a little bit degraded, indicating the severity of the disease.” Lippolis says the findings show that vitamin D affects the immune system and suggest that it also may help reduce the use of antibiotics in treating mastitis. Vitamin D also has the potential to decrease other bacterial and viral diseases, such as respiratory tract infections, he says.

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Dairy NewS AUSTRALIA june, 2012

machinery & products // 31

Safety first for farm utility All-terrain vehicles on farms have been in the news recently – and for a lot of the wrong reasons. So when Barrie and Angela Molloy of Cobrico, near Cobden in Victoria’s Western District, decided they needed to upgrade from their current fourwheeler, safety was a major priority. “We need to make sure our workers are safe,” Barrie said. Barrie and Angela milk 440 cows on a 44-unit rotary on their 200ha farm they took over in 2007. They rotate their morning milkings so they each get a break every other day. They employ one full-time milker and several part-timers for the afternoon milkings. In addition both Barrie’s and Angela’s fathers lend a hand on various jobs around the place. It’s a mixed herd of Holsteins, onethird Jerseys and a liberal sprinkling of other crosses. They calve three times a year - February, May and September and milk year round, so the place gets pretty busy and the ATVs get a fair workout. They had seen the Kymco ‘workhorse’ UXV 500 utility vehicle on display at the recent Camperdown Show and arranged through LandPower in Colac to have a run on a demo unit at the farm for the day. The vehicle’s roll cage with padded head rests and seatbelts offered them the protection that they were looking for, along with a lot of other convenient features, so they went ahead and purchased. “We’ve previously used ATVs, but they generally lasted just three years,” Barrie said. “It was an important point that the Kymco comes with a two-year warranty. “ The UTV 500 has a 500cc four-stroke liquid-cooled DOHC engine developing 33 horsepower. It uses CVT automatic transmission with shaft drive and, interestingly, is left-hand-drive. The Molloys have found no problem

Who:

Barrie and Angela Molly Where:

Cobrico What:

Kymco UXV 500

Western District farmers Barrie and Angela Molloy upgraded their old four wheeler to a Kymco UXV 500 utility vehicle.

with adapting to the left-hand-drive. The transmission features ‘shift-onthe-fly’ two or four-wheel-drive and diff lock. Kymco says its philosophy is ‘simplicity of design – with the correct features’, and declare that keeping it simple means easier maintenance and lower costs. They claim a towing capacity of 550kg and a carrying capacity of 190kg in the rear tray. Front wheel braking is through dual hydraulic discs and hydraulic discs are also fitted to the rear. The Molloys had had the unit for only two weeks at the time of our visit in mid- April but were extremely pleased with its performance and versatility.

working clothes chris dingle “It does everything on the place. The fencing gear or the calf meal goes in the tray on the back and it will pull our special locally-made calf trailer during calving time.” Both front and rear of the 525kg unit features independent suspension with dual A-arms. Front tyres are 25 x 8-12”

and the rears are 25 x 10-12”. Although they hadn’t had much rain since last September in the winter the paddocks can really bog up. Barrie said the Kymco would be particularly useful in those circumstances. “It should be very hard to get bogged.” Tony McVilly from Landpower Colac is finding the ‘side-by-side’ utility vehicles are becoming more and more popular on dairy farms. “OH&S is probably the main reason”, he told us. “There is no need for a helmet and they are comfortable in hot or cold weather. We even have farmers who ask us to fit a radio so that they can listen

in as they go about their jobs. There is definitely a place for them on the farm.” The Molloys are renovating pastures at the moment. They have a 150ML dam on the property, plus a smaller one of about 39ML. With a 150ML irrigation allocation, Barrie said irrigation would be the next big project to organise – “and it will be a big advantage for us”. No doubt the Kymco UTV 500 will get a solid workout with the jobs required on that project. Working Clothes will focus on the performance of a new machine each month. Send suggestions to Chris Dingle on 0417 735 001 or email chris@springbankfarm. com.au

Flood-damaged fodder is not a total loss It may be small compensation to many farmers affected by the floods in northern Victoria and southern NSW, but stored hay and silage that has been irretrievably damaged by flood should not be considered a total write-off, according to Colin Stray, managing director of Seymour Rural Equipment. “Flood-damaged hay or silage, remarkably enough, does have its uses,” explained Colin recently. “Farmers, particularly dairy farmers, are discovering that pastures treated with a composted mixture provide major benefits in soil structure and beneficial organisms, resulting in balanced and healthy soil. The most efficient way to make compost is to combine manure – and that can be dairy, pig, poultry or

feedlot manure - with damaged hay or straw and other green waste. “A herd of 300 dairy cattle creates in excess of 1500 cubic metres of manure, straw and feed waste around a feed pad each year. Combined with the damaged fodder this can be processed into compost and reapplied to the paddocks, saving considerable expenditure on fertiliser. “The farmer may include additives such as trace elements or lime to the mix, depending on soil tests. We manufacture a machine that can process 700 tonnes of material an hour, turning what on most farms has traditionally been waste material into organically rich compost to help get organic matter back into the soil.”

Colin reminded farmers that flood relief grants are available through Rural Finance that include the purchase of fodder to replace damaged stock. “A lot of farmers would routinely burn damaged fodder when it’s dry enough to do so, but it’s important that they think twice about doing that.” Seymour Rural Equipment will be conducting demonstration days close to the flood-affected areas soon to explain the process of composting and farmers who have been involved in the system will be on hand to discuss the results.

Colin Stray

Interested farmers who wish to attend the demo days can contact the company for more details on (03) 5792 1100.

Dairy News AUSTRALIA june, 2012

32 // machinery & products

MF 5440 small but more agile IF YOU have two large Russell Pinny says his new MF 5440 with Dyna 4 transmission is great for front end loader work but handles grader and grass work as well.

tractors and want to replace them both with one smaller one, what brand do you choose? For Morrinsville, NZ, sharemilkers Russell and Margaretha

Duncan Seed Drills qualify for the government rebate*. Do you? Consult your accountant for details

but they’ve added suspension and it’s smooth on the front axle.” Being able to see your loader at all times is important and with the sloping bonnet Pinny can see what he’s doing as he hooks on implements. There’s also good visibility behind and all around. Pinny remarked how much clearance there was under the cab, making it easy to access. In fact with all maintenance there’s a sense of space. “It’s easy to get at the bonnet and radiators and filters, there’s so much room.” Despite providing space where it is needed, the MF 5440 is not the size of a tank. “It’s the ideal weight and size for a farmer, and there’s enough traction and pull power “It’s the ideal but it’s not making weight and size ruts in the padfor a farmer, and docks. It’s also agile and has a small there’s enough turning radius.” traction and pull Pinny says a power but it’s not lot of thought has making ruts in also gone into the hydraulics. His the paddocks. It’s also agile and has model has the standard 57L/min but it a small turning can work with raceradius.” ways with a halftonne grader on back and not bat an eye. The MF 5440 is 102hp It provides more than and does the feeding out enough fluid to run the log and general work on the splitter, and extra big rams Pinnys’ 50ha farm. He on the hydraulics also keep makes a lot of use of the things smooth and stable. front-end loader and he’s The Pinny’s new tracused it to do some grader tor has a Dyna-4 transmiswork. sion, with 16 forward and 16 “I will also be using it reverse gears. to make hay and silage for “There’s no delay in getmyself and another farmer. ting into the next range I am looking forward to trying it out on the rake and and no gear stick to muck around with. It’s just a lever mower.” on the side of the steering Pinny says the MF 5440 has a comfortable cab; even wheel. I had a mate get in and say, ‘Where‘s the gear getting in is easy with its stick?’ wide door. There’s a seat “It has gears A, B, C, D for a passenger and plenty then into the next range 1, of room for the lunchbox. 2, 3 or 4. You just clutch it “It’s easy to get hold of and whip it through,” Pinny things. When you utilise says. the levers you’re not He also likes the fact it is stretching. Everything is a stable tractor and he can in the right place, like the trundle along at 43km/h on front loader levers are the road. He says it flicks where you expect them to out of four-wheel drive be.” automatically as it got up That front loader has to speed on the road, which a new float system on is a handy feature on the it. “Sometimes loaders bounce up and down when farm. you’re going down a ramp, Tel. (03) 9313 0313 Pinny the answer was a Massey Fergusson 5440. The Pinnys took a break from the dairy industry and went contracting for a couple of years. Hence their two large tractors. Once they went back to the cows, they wanted something smaller and more agile. Their dealer sent a tractor out for trial, so by the time Pinny bought his MF 5440 he knew it would do the job. He’d also ordered all the extras he needed factory-fitted, such as the spotlights for working at night. “The beauty was we’d talked through all the details. It’s easier to get things added in the factory than when it comes out,” Pinny says.

Dairy NewS AUSTRALIA june, 2012

machinery & products // 33

Lift your game in shed GEA FARM Technologies has developed a flexible lifting floor system for group milking parlours and milking carousels. The company says this is an important component to extend its EGO (the ergonomic pit) floor product range. It says despite an improved milking technique and lower physical strain, they are observing an increasing number of musculoskeletal disorders. “Even in modern milking parlours, we see repeated movements of the body, static positions, stretched or bend body postures in conjunction with a higher pace of work and longer milking times. The EGO lifting floor product series by GEA Farm Technologies enables an ergonomic position of the milker during all works in the milking parlour.” The EGO lifting floor is available in different versions for group milking parlours, internal and external rotaries. The working area may be set to the desired level by means of a push button.

A huge lifting height up to 380mm enables continuous matching of the body height to the pit depth. The centrally raised floor with 3% slope ensures additional relief of the muscles in group milking parlours. For group milking parlours a version without height adjustment is also available. This spring floor provides the usual comfortable walkways and standing positions and may be retrofitted with a height adjustment later on. GEA Farm Technologies develops lifting floors according to individual dimension sheets – for new milking parlours as well as for retrofitting of existing systems. Installation in subway systems is also possible. The modular system consisting of support frame, expansion frame, scissors system and plastic grating enables a fast and simple assembly. The load bearing capacity, of up to 12 persons when stationary and six persons during raising and lowering, is also

adapted for larger milking parlours. The EGO product series is hot-dip galvanised or available in stainless steel. There are hardly any wear parts since the lifting floor is operated without chains and ropes.

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pump guide designed to make pump selection and application easier, has been released by Australian Pump Industries. Taking the form of an informative, fully illustrated catalogue, the guide provides performance curves and selection data on fire fighting pumps, transfer pumps, ag spray equipment and even high pressure cleaning gear. “The guide is designed for farmers, contractors and a wide range of primary product processors, to enable them to make easy selections,” Aussie Pumps’ Product Manager Brad Farrugia said. “Experience through both our dealers, and directly at Field Days has revealed many farmers have trouble selecting the

right product for the job, often confusing price with capability.” In response to the market’s move towards more fuel efficient diesel drive pumps, the guide shows a full range of both Yanmar and Kubota diesel engine drive pumps, designed for both high pressure and high flow duties. All Aussie QP pumps, whether petrol or diesel drive, are covered by a 5 year warranty, an indisputable indication of the company’s confidence in its product line. The guide also covers the full range of Tsurumi submersible pumps. Tsurumi is the world’s biggest manufacturer of electrosubmersible de-watering pumps. Visit: www.aussiepumps.com.au for the guide.

Aitchison uses the world renowned Aitchison inverted ‘T’ boot system mounted on a coil spring and disc coulter undercarriage.

Despite a sowing width of 4.8m the Aitchison 4132T MK2 can be comfortably towed by a 120hp tractor.

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SUPERIOR PASTURE DRILLS Contact your local Reese Agri Aitcheson dealer for details, or free phone 1800 140 196 Brendan Prentice 0400 540 300 www.reeseagri.com.au

Dairy News AUSTRALIA june, 2012

34 // motoring

Thumping good ride in SSV BERNARD LILBURN

JUST THROUGH my shed is the machine I consider the best side x side vehicle (SSV) I have tested: the Can Am Commander. Its engine braking, comfort, stability and power delivery exceed all other machines this reviewer has tested. The suitably aggressive-looking Can Am Commander we tested during our annual Hunterville, NZ, duckshooting weekend was the 1010cc 4-stroke 2-cylinder V-twin liquid-cooled Rotax powered model in budget form. This machine impressed everyone who drove, rode or even just looked at it. One guy said he wanted to go and buy another farm so he could have one; another traded his existing SSV on the following Monday. The Commander comes with either the 810 or 1010cc Rotax engine in two stages of specification. The ‘poverty pack’ version we had is still well equipped, but came without flare guard extensions (a must-have), winch and half screen. The option list is long. The twin headlight setup looks cool and the lights give good penetration and spread.

The machine comes with three keys: we got two – grey and black. Another key operates the ‘work’ mode, limiting speed to 50km/h with restricted engine power. Torque is still available in spades from the CVT transmission. The grey key is ‘normal’ and restricts power to 60% and 70km/h and the black key gives the ‘full Monty’ – all 92 horse power -- and more response if you push the ‘sport’ button on the dash. I recommend the black key stays in the boss’s pocket. A great safety feature is that if the seatbelt is not buckled up, the machine defaults to “limp mode” which is the get you home feature if something goes awry and limits speed to about 20km/h. We tried both keys, and the machine with the grey key performs comparably to most other 600/700cc offerings in this guise with still adequate performance and heaps of low down grunt. With the black key, it is just miles out in front, with stunning throttle response and performance. This is helped by adjustable suspension, the machine giving a ride as good as anything else I have tried, though a load reduces ground clearance reduces, as on all independently sprung

The Can Am Commander leads when it comes to comfort, stability and power.

machines. That said, the tilting deck is big enough for a team of dogs (we had 6 on) and will carry 600kg between the clever upper and lower cargo boxes. Two tailgates give access to deck and the boot, and the floor can be removed for a bigger load area, this also helping lower the centre of gravity. We shoot ducks high up in a big basin. It’s quite a climb to the lake along 6km of farm tracks. So this reviewer highly rates engine braking, especially for hill-country travel. The Can Am Commander has the best system I have tried, and even in high range in the transmission setting it has awesome engine braking, letting the machine idle down a knobby little spur where I wouldn’t dare take other machines I’ve tried. In low range the system works so

One guy traded his existing SSV on the following Monday for a Commander. well you have to apply throttle to keep things moving, even with a load and trailer. A grizzle is that the steering loads up when turning using power in AWD and when load transfers onto the front suspension, which is fitted with anti dive geometry. Power steering or a bigger steering wheel would help this. Even a cold, wet morning was made more pleasant by comfortable, adjustable bucket seats. The steering wheel is adjustable for height, and the pedal box is not offset,

making for a comfortable driving position and easy getting in and out. Of course, I can be described as ‘vertically challenged’, but the big guys also found the cockpit a good place to be. The dash has rocker switches for the light dip switch (the lights are turned on using the key), AWD and sport function. A soft-shifting gear selector chooses park, reverse, neutral, high and low. The machine has no handbrake, which would be handy but, with the park feature, not essential. The passenger gets a decent glovebox and ‘hold-me-back’ handle for when things get hairy. The ROPS frame is sturdy as is everything about the Commander. Tel (03) 9484 9258

Volvo’s entry level option brings top range qualities adam fricker

AT THE luxury end of the car market, ‘entry level’ variants often stack up better than the fullyloaded top-of-the-range. With premium brand cars ‘entry level’ doesn’t equate to ‘mean and nasty’ as it can do in cheap vehicles. The Volvo XC60 T5, for example, is the same capable car as the full-noise T6 AWD R-Design, but does without the big engine, big wheels and some of the high-tech gizmos that, let’s face, often don’t get used anyway.

The T5 is still equipped to the level you would expect a $54,150 SUV to be, but doesn’t have high-end gear such as adaptive cruise control with collision warning and automatic braking, or the blind spot warning system. But with leather upholstery, Bluetooth and i-Pod connectivity, power tail gate, premium stereo... you don’t want for much in the T5. And being a Volvo, it is loaded with airbags, dynamic stability and traction control, anti-lock brakes and crash safety performance second to

none. The ‘entry level’ theory also applies to the engine: The 224kW turbocharged 6-cylinder engine you’d find in the T6 is by all accounts a great engine, but more than you’ll ever need in normal driving, especially in a family wagon such as the T5. The T5’s 177kW turbocharged direct injection petrol engine is plenty, especially when it delivers its healthy peak torque of 320Nm in the 1800-5000rpm range where most normal driving is done. Matched to a 6-speed automatic, the result is

The Volvo XC60 is the same capable car as the full-noise T6, but without some of the gizmos.

effortless acceleration, safe and spritely overtaking, and pulling power that happily lugged staff and equipment to the ploughing nationals, and took a family and stacks of luggage on a weekend jaunt – tasks this car is

perfect for. The manufacturer quotes performance figures of 8.1 seconds for the 0-100km/h sprint, top speed of 210km/h and fuel economy of 8.7L/100km. We didn’t put the speed claims to the test, but

didn’t feel at any stage we needed more power, the 4-cylinder T5 pulling for all the world like a torquey 6-cylinder. One feature of the higher-end XC60s not included in the T5 is allwheel-drive. If you need the extra traction you’ll need to buy the $60,450 D5 AWD, a capable diesel variant with a few more toys than the T5, or the $66,450 T6 (or go all the way and get the R-Design T6 for $70,650). However, front-wheel-drive will suit most situations, such as driving across paddocks to set up for the ploughing nationals.

The chassis has coil-over-strut front suspension with multilink independent rear suspension, anti-dive, anti-lift function with anti-roll bars front and rear. Making for a comfortable ride and secure handling. On the school commute or long-distance touring, as with the engine performance, this car is effortless. Prices quoted are the Manufacturer’s List Prices (MLP), inclusive of Luxury Car Tax (LCT) at the rate of 33%, and excluding dealer delivery charges.

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Real farmers. Real results. CRAWFORD FAMILY PARTNERSHIP COOTAMUNDRA & NOWRA, NEW SOUTH WALES A TESTIMONIAL BY THE CRAWFORD FAMILY www.performanceprobiotics.com | Phone 1800 118 872

What Performance Probiotics products are you using and how are you using these products in your system?

Operational and production facts Family partnership Rod, Jenny, Andrew, Abbey & Darren Location Nowra (1000 acres) and Cootamundra (1700 acres) Herd All breeds; mainly Holsteins Numbers Milk 900 cows all year round Rolling herd Average 8750 Litres / 3.9% Fat / 3.2% Protein

DFM for the Milkers, Fire Up in Springer Ration, Healthy Calf Macro in calf/heifer ration and Healthy Calf Plus for the calves getting milk, DFM gels are used for show cows and any crook animals.

Why did you choose Performance in the first place? We were having problems with scours in our calf rearing system. We were raising so many it was hard to keep up-to-date and stay on top of all health cases. We used Healthy Calf Plus and were amazed by the difference in the calves and how much healthier they all were. We then moved onto the DFM powder for the cows and it has had the same effect on them.

What are the things you like most about Performance Probiotics now that you have been using our product/s for a little while? What does it help you achieve? It seems to have a massive impact on the ability of the cows to transition through stressful times, whether that be calving, feed changes or environmental conditions. They seem not to move on the vat level, nor their appetite. It has also helped our reproduction as well. The cows cycle much stronger and feel much better when we mate them. This is very important in a 900-cow herd, as cows can get missed so easily. The cows look healthy and look like they enjoy doing big litres of milk. Their attitudes in terms of appetite and coming onto the platform are much better.

What would you say to a friend who was thinking of investing in Performance Probiotics â&#x20AC;&#x201D; but wasnâ&#x20AC;&#x2122;t sure? Try the Healthy Calf Plus first and see the benefits that Probiotics can achieve. If this works then progress down the line of products and get rid of antibiotic in your feeds. We like the idea of feeding the cows biologically, rather than relying on antibiotic buffers and ionophores. Live microbial products like Performance are the way of the future for agriculture and we are very happy with the results from this system.

Has it saved you time, money and/or effort? How? It has definitely saved us time and effort through the way of improved herd health. This has lead to less drug and vet costs as well as the reproduction benefits. I think I can comfortably say it has done all three for us.

How easy is Performance to use in your system? Healthy Calf Plus is very easily mixed into fresh milk, the DFM pellets are delivered through a mineral dispenser and this works really well.

What is the major benefit you see in using Performance? Overall herd health, less treatment costs, happier cows, happier staff... and of course with that a very happy family business!

Darren Crawford with Coolea Goldwyn Lara, Supreme Intermediate Champion (Holstein Female) at this years Sydney Royal Easter Show. PHOTO MELINDA VOXCELL

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Thanks to the Crawford family for their ongoing support of Performance Probiotics.

Gel giveaway! We are giving away 50 x 80cc DFM Gels*. Call 1800 118 872 and mention this ad for your free sample.

*Only available to the first 50 callers. One free 80cc DFM Gel per caller/business. WE BUILD HEALTHY COWS