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New Kubota range PAGE 30 december, 2012 Issue 32 // www.dairynewsaustralia.com.au
GROW OR PERISH Dairy Connect pursues fresh northern markets PAGE 3
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Dairy NewS AUSTRALIA december, 2012
news // 3
NSW farmers want new milk markets gordon collie
One of the leaders behind the
Gippsland farmers Steven and Sally Fallon have boosted pasture growth by extending reach of effluent distribution. PG.20
Nutritionist Ian Sawyer says prices make it the right time to add corn to your cow’s diet – but be careful. PG.22
Northern Victorian farmer Brett Dixon now adds effluent to irrigation channels for flood irrigation. PG.31
News ������������������������������������������������������3-13 breeding management ������ 14-15 Opinion ���������������������������������������������� 16-17 Agribusiness ������������������������������������18 Management �������������������������������� 19-21 Animal Health ���������������������������22-24 idw preview ��������������������������������25-30 Machinery & Products ���� 31-33 summer reading ���������������������������34
successful push for representative change in NSW believes farmers must have growth options to stay viable in dairying. Far north coast farmer Terry Toohey is the vice-president of Dairy Connect NSW, the new body which will represent the interests of less than 800 producers left in the state as well as milk processors and vendors. “We don’t underestimate the extent of the challenge, but I believe we have to be positive,” said Toohey, who farms just west of Casino.
“Dairy Connect is fully up and running now and there are already benefits evident,” he said. “There’s 100 million litres of tier two milk in the north that is causing us grief, which Dairy Connect is now looking at developing new markets for.” While processor Lion has now agreed to pay the base price for tier two milk until June next year, Toohey said the issue had not gone away. “Farmers have carried the risk of excess production and we have to strike a deal that is fair for all parties,” he said. “Having a tier two milk price that is unviable kills any growth options
farmers might have so this issue is a real priority for us to address.” Toohey said the mood for change had been building for some time and really began to gather momentum in the past 12 months It reflected in a vote by dairy members of NSW Farmers in October to transfer the Graham Park Trust containing $1.2 million to Dairy Connect. Toohey, a former chairman of the NSW Farmers Dairy Committee said there had been strong support for a new body to engage processors and vendors and work for the common good of the whole industry. “It’s about trying to give the industry in this state a future,” he said. Dairy Connect vice-president Terry Toohey says new markets must be developed for 100 millon litres of milk currently deemed excess by processors.
“We recognise that NSW and Queensland have become market milk states, that farmer numbers are dwindling and that the farmer population is ageing. It’s not going to be an easy task that we have ahead. “But it’s an essential one if we want to continue to have a northern dairy industry.” Toohey said there had been wide engagement with farmers with new members signing up each week. “The big processors have also indicated their willingness to get involved and work constructively under a single umbrella structure,” he said. “Each group has board representation where we can work on common interests. The aim is to develop an enhanced strategic outlook for the industry in NSW as a whole.” Toohey said there would also be benefits from going to Governments with a single voice on a wide range of issues affecting the industry. “We want to become the point of contact for anything to do with the dairying in this state.” Toohey said Dairy Connect was keen to engage with NSW Farmers on non dairy-specific issues affecting all farmers. Relationship building with the retail sector would be a priority. “We certainly want to engage in talks in the short term and there is potential in the future to formally include retailers in the Dairy Connect network.” Toohey said farmers needed long term certainty to plan for their futures in the industry. “We can’t work on short-term supply contracts and this will be another priority issue to address,” he said.
Dairy News AUSTRALIA december, 2012
4 // MURRAY GOULBURN AGM
MG suppliers ask: Where’s the love? Murray Goulburn suppliers could see what their cooperative was attempting to do at last month’s AGM, but they couldn’t feel the love. Several constitutional changes were bundled together as one resolution which left co-op members seething. The members wanted to vote on each change separately, claiming that the co-op had learnt nothing from a similar bundling two years ago. The board was told at that meeting never to bundle resolutions together again. The sticking point was the inclusion of a resolution to change the constitution to allow for the appointment of up to three special directors. Most farmers who spoke at the meeting about the constitution changes were not against increasing the number of special directors but did not appreciate how the co-op bundled the changes into one resolution. Many said this would force them to vote against the changes in principle, even though they agreed with the changes themselves. One exasperated supplier told the
board: “You just don’t get it, do you?” Cobden supplier Duncan Morris said bundling was “slippery and uncooperative”. MG Chairman Philip Tracy said the decision was made to speed up the process. As it turned out, it took much longer than simply leaving the resolutions unbundle. “These resolutions were grouped together because we did not think there were any major resolutions in there. We thought they wouldn’t be contentious,” Tracy said. Other motions carried included: ■■ Re-election of chairman Philip Tracy ■■ Re-election of director Bill Bodman ■■ Election of director Max Jelbart ■■ Re-election of special director Peter Hawkins ■■ Election of special director Michael Ihlein ■■ A rise to the remuneration pool of non-executive directors In his address, MG managing director Gary Helou gave a guarantee Coles
Milk payment review near end Murray
would stock Devondale cheese in all stores next year. “There’s no way Coles won’t have Devondale cheese. From March 1, it will be in all their stores,” he said. Helou said Devondale sales grew 4% for the year, while sales revenue of its Liddells brand grew 18%. These compared to industry growth across the entire dairy category of 1%.
Helou said Woolworths awarded Devondale the supplier of the year in dairy and the fourth best supplier across its entire business. The co-op’s milk supply grew 3.9% last season to 2.98 billion litres. Former chairman Ian MacAulay told the meeting it was important to maintain a responsible ratio of non-supplier directors to supplier directors.
Black recognised for outstanding service The dairy industry’s national peak
policy body, the Australian Dairy Industry Council (ADIC), honoured the late Niel Black at its Annual Dairy Industry Leader’s Breakfast last month. The decision to award Mr Black the Outstanding Service Award was made before he was killed in an accident on his farm. However, ADIC chair Noel Campbell said Mr Black was advised he would receive the award four days before the accident. “We only wish Niel was still with us today to accept this award himself,” Campbell said.
“However, we take solace in his excitement in learning of his achievement only four days before his tragic accident.” Mr Black’s wife, Eve, accepted the award on his behalf, and was supported by their family and close friends. Niel Black Mr Black was a pioneer of herd improvement in Australia, a founding partner of DemoDAIRY research centre in Terang
Victoria, President of the Noorat Show committee and a long time advocate and supporter of United Dairy Farmers of Victoria. “Niel has made an enormous impact on the dairy industry, he has implemented innovation and change, improved process by sharing knowledge and has left a lasting legacy,” Campbell said. “His personal style was one of mod-
esty and quiet achievement. He was active on farm and within an industry that he helped to shape during the span of his farming life “Niel was a fast learner and a great teacher, his generosity in sharing knowledge with newcomers was a renowned trait of his. “His list of achievements within the industry and outside of it was vast to say the least.” The Outstanding Service Award recognises and celebrates collaborative leadership provided to the Australian dairy industry.
INTRODUCING THE BRAND NEW...
Goulburn’s
review into its milk payment system should be completed by Christmas with the board considering it early next year. MG Managing Director Gary Helou made the announcement at the annual general meeting last month. Helou told the co-op members present at the meeting that he could not release the report because of the confidential commercial details within. The review began in early October. Recommendations arising out of the review will be considered by the board at the beginning of 2013 with any changes to the milk payment system to begin to be implemented in the 2013/14 season. The formal review was first advised during the August round of supplier meetings in August. It was scheduled as part of the board’s commitment to examine the current milk payment options. All elements of the current MGC milk payment system, not just the three current options, will be examined as part of the review. This includes payments, quality, productivity, growth, pick up and volume charges. The review is being managed by the co-op’s shareholder relations department, led by Robert Poole. Shareholders are still able to participate through an online survey on the co-op’s website. Helou said the opinions of suppliers will be important in guiding the development of a milk payment system that maximises the profitability of suppliers and the effectiveness of the co-op’s supply chain.
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Dairy NewS AUSTRALIA december, 2012
dairy australia agm // 5
Dairy Australia launches review Former Australian Dairy Farmers pres-
ident Allan Burgess will lead an independent panel charged with reviewing Dairy Australia’s constitution. The announcement was made the Dairy Australia annual general meeting held in Melbourne last month. Burgess will lead a panel containing former Dairy Australia board member John Doyle, Dairy Australia company secretary Ross Joblin, and Apple and Pear Australia marketing chairman John Lawrenson. Dairy Australia chairman Max Roberts told the meeting a review was a matter of good timing as it had been 10 years since Dairy Australia had been established. The review will investigate all issues of operation and governance. The DA board approved the review’s terms of reference before the AGM. Written submissions will be received and both these and the report will be made public. Director Kelvin Jackson was re-elected as was new candidate John McKillop. Managing Director Ian Halliday said although rev-
enue for 2011/12 was lower than for the previous year by $1.8m, this was due to a one-off adjustment of $3.8m included in the previous year. He said on a normalised basis, revenue was about $2m higher than the previous year. A key reason for the increase was a 4.2% increase in national milk production during 2011/12, compared to the forecast growth of 2%. As a result of a successful application for “charitable” status during 2012, Dairy Australia applied for, and in July 2012 was granted, exemption from payroll tax by the Victorian Government. As a consequence, it received a refund of payroll tax paid over the previous five years, amounting to $2.8m. “Expenditure during the year was higher than the previous year by $1.6m, with almost $53m being vested on behalf of the industry,” Halliday said. “Dairy Australia finished the 2011/12 financial year well placed to provide strong support to the industry in addressing future challenges with reserves of $35.5.” Halliday said DA would
Kelvin Jackson
Ian Halliday
have a renewed focus on fertility. It aims to lift reproductive performance, measured as the average in-calf rate at six weeks, by at least 1% a year compared to the current 1% decline. “We have directed additional funding to research activities such as improving the breeding value for fertility. “This includes improving the way we calculate breeding values using existing ADHIS data, but also to find ways of capturing new sources of reproductive performance data that could be used to improve genetic breeding values for fertility.” Halliday said a strong, consistent story was needed to help the industry reach its potential. DA has launched Brand
Dairy, which he said would amplify the benefits and achievements of Australian dairy, identify key messages and provide tools to help deliver that message. He said the brand dairy campaign would be rolledout over the next six to 12 months. The campaign would involve telling the story of “good things that happen in the industry”.
SADA loses bid for Group B membership The South Australia Dairyfarmers Association (SADA) lost its bid for group B membership of Dairy Australia at the annual general meeting last month. There were 45.10% of the proxy votes in favour of the resolution during the meeting allowing SADA to become a group B member, but the resolution was defeated following a poll at the end of the meeting. SADA applied for group B membership of Dairy Australia in September after it was removed as a member of ADF. The current Dairy Australia group B members are national lobby group Australian Dairy Farmers and Australian Dairy Products Federation. Group B members contribute to the strategic planning of the industry research and development body. Several prominent industry names, including ADF president Noel Campbell and United Dairyfarmers’ of Victoria president Kerry Callow spoke against the resolution, while SADA president David Basham spoke for it. Callow said it could set a precedent for other state bodies to become group B members of Dairy Australia and this would be expensive.
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Dairy flows freely to Malaysia Managing Director Ian Halliday highlighted Dairy Australia’s contribution to the Malaysia-Australia Free Trade Agreement (MAFTA) during his AGM address. DA contributed significant input through Australian Dairy Farmers and said the agreement would directly benefit Australian dairy farmers. “MAFTA directly benefits Australian dairy through an increase to the annual liquid milk export quota,” Halliday said. “This will allow larger volumes of milk to be exported and, for the first time, the opportunity to export high value drinking milk in retail packs. “As Australia’s fifth-largest dairy export market, Malaysia’s growing consumer demand for dairy products offers a positive opportunity for our export producers. “Australian dairy exports to Malaysia are currently valued at approximately
$160m per year.” The agreement between the Australian and Malaysian governments was signed in May. For Malaysia, the accord allows the same tariff-free entry to Australia currently enjoyed by Singapore. 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. Malaysian exporters, meanwhile, will enjoy duty-free entry to the Australian market. Malaysia is Australia’s 10th largest trading partner, with two-way trade worth almost $16 billion in the 2010-11 financial year. Australian exporters of automotive parts, iron, steel and dairy products will benefit from improved market access under the agreement.
Prominent Gippsland dairy farmer John Versteden said a successful vote would have created a dangerous precedent. Versteden said the differences between ADF and SADA needed to be resolved and this was not the forum for it. In his closing remarks, DA Chairman Max Roberts said ADF and SADA needed to: “Sit down, sort it out and get back together. We need to create the unity this industry is renowned for.” Incoming ADF president Noel Campbell said as the new ADF president, he planned to bring SADA back into the fold. SADA president David Basham said applying for Group B status wasn’t their preference. However, he said 6% of the industry (SA farmers) did not have the rights of others in the industry. “It’s important you think of farmers in SA,” he said before the vote. “They pay $2 million in levies and at the moment they don’t have a say like other states. “I hope this is the trigger than brings us all together.” Campbell said that under the current constitution if SADA returned to ADF it could sit on the national council.
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Dairy News AUSTRALIA december, 2012
6 // news
Basin Plan improved but concerns remain The Murray Darling Basin Plan
that was signed into law yesterday is an improvement on past versions, but still leaves a cloud of uncertainty over regional communities, the Australian Dairy Industry Council (ADIC) has said. ADIC Basin Response Taskforce Chair Daryl Hoey welcomed the change in focus to recover water through onand off-farm infrastructure savings, and seek 650GL in environmental offsets. “The Government has listened to our concerns about how buybacks are damaging the viability of irrigation districts and the socio-economic wellbeing of the communities that depend on them,” Hoey said. “Our communities need certainty if they are to adjust to the inevitable changes in water availability and affordability. “The commitment to find environmental water through on- and off-farm infrastructure efficiencies rather than buyback is a welcome investment in
regional development and increased farm productivity. “The Government also appears to have listened to our concerns about The Living Murray works, which will now be included in the environmental offsets. “However, we are concerned that buybacks remain on the table in the event of shortfalls, and that the minister yesterday committed to guaranteeing a minimum 450GL, in addition to the 2750GL benchmark target. “The minister himself said in the same speech that he did not want to recover water that could not be delivered - and this depends on the extent to which constraints can realistically be relaxed. “It is not sensible to enshrine a minimum volume in law, when the constraints management strategy may well find this water cannot be delivered without adverse flooding of properties, towns, roads and environmental sites.” Hoey said the Government and the
Opposition could give regional communities greater certainty if they agreed on the following, at least: ■■ Guaranteeing at least 650GL in environmental offsets; ■■ Setting a 1500GL cap on buybacks; ■■ Retaining the provision to recover ‘up to’ 450GL in the Special Account Bill; and ■■ Removing the provision for buybacks to obtain the 450GL. “We are being asked to take the Basin Plan on trust, and the Government on its word that buybacks will be the last resort in future,” Hoey said. “The problem is that the future governments will not be held to the good intentions of those in office today. We will only have true certainty if we get the details right now. “The dairy industry will be carefully combing through the details of the Basin Plan, before deciding whether or not to seek Parliamentary disallowance.”
Daryl Hoey says communities are being asked to take elements of the Basin Plan on trust, but Governments change.
Fonterra unit prices soar then settle sudesh kissun
THE PRICE of units in Fonterra Shareholders Fund is dropping after reaching an early high of $6.95. They launched at $5.50. It was trading at $6.66 last week when Dairy News Australia went to press. Broker Grant Williamson, Hamilton Hindin Greene, says it will take a week or two before the price finds the “appropriate level”. “We have some profit taking during the first few days of trading. Investors who bought the units at $5.50 each gained in excess of $1/unit by selling,”
he said. “But it’s settling down and volumes have slowed down.” About 260 Australian dairy farmer suppliers have applied to buy units. Fonterra offered Bonlac Supply Company member $25m of units in the Fonterra Shareholders Fund as part of a recent extension of their supply deal. BSC chairman Tony Marwood said the offer provided a unique opportunity for shareholders to participate in the cooperative’s performance and share in the economic returns from BSC’s Australian ingredients and consumer branded business, and its entire global business. “No other supplier organisation can provide this exposure to the dynamics
Tony Marwood
of the global dairy industry as our partnership with Fonterra can,” Marwood said. Marwood said farmers are excited about having economic exposure to “global Fonterra they have not had before”. Williamson believes retail investors, most of whom missed out on the heavily oversubscribed units, are watching from the sidelines for prices to drop before they bid. Retail investors are not the only ones taking a wait-and-see approach. Fonterra farmers are also cautious. “They are also waiting to see where things will settle and the farmers market is very quiet at the moment,” says Williamson.
Just 260 of Fonterra’s 10,500 farmer shareholders holding 5.5 million shares have sold their dividend rights into the fund. The co-op has issued shares to make up the shortfall. Launched on November 30, TAF (trading among farmers) offers economic rights in the co-op shares through the Fonterra Shareholders Fund. In an email to farmer shareholders, Fonterra chairman Henry van der Heyden and chief executive Theo Spierings told farmers to expect more volatility in unit prices. “Don’t be surprised to see more of this price movement over the coming weeks while the shares and units establish their value,” they said.
Dairy NewS AUSTRALIA december, 2012
news // 7
Rising input costs biting in the north half of the Queensland dairy farm population was unsure whether they would still be in the industry in the next five years if milk prices and farm financial returns do
not improve. “This would be a devastating outcome for the industry and Queensland milk consumers,” Tessmann said.
Grain prices have spiked and Queensland farmers are under pressure to put away enough silage for the summer.
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farmers and unfortunately there are young and progressing farmers who are leaving the industry. The northern dairy They are walking away industry is continuing because they just can’t see to bleed as seasonal any future in staying with conditions turn for the dairying.” worse, further eroding With the milk supply already poor returns. tightening, major supplier Most farmers in southern Queensland and Lion has reviewed its decision on tier two milk northern NSW receiving pricing. only one rainfall event of “The offer of 15 cents any significance in the a litre was just ridiculous past four months have and even though we now been faced with steeply have a reprieve until mid rising input costs to next year it probably won’t maintain production be enough to arrest the levels. downward slide in the With the onset of hot industry. weather, Queensland “Things are still Dairyfarmers Organisation looking pretty vice-president grim going into Ross McInnes Soaring 2013,” Peake said the pressure electricity said. The latest was really on bills are AgTrends farmers who crippling report from the had to resort the Queensland to extensive Government and expensive industry confirmed irrigation. as farmers has the ongoing McInnes resort to impact of the said soaring $1/litre milk electricity bills irrigation. discounting led were crippling by Coles. the industry. The report, released “We didn’t have a last month, has confirmed normal spring and this that some 50 farmers have has severely impacted on the main feed flush for the left the industry since the price war started, returns year,” he said. to dairy farmers have “You have to water dropped further and milk to maintain any sort of pasture growth and this is production in Queensland is suppressed and not proving very expensive.” meeting the demand for QDO executive officer the state’s drinking milk Adrian Peake said the needs. state had lost more than It is expected that 50 million litres of milk another 40 or so dairy production through farmers could exit the natural disasters in the industry this year due to past 12 months and low returns. ironically the state was Queensland now short of fresh milk. Dairyfarmers’ “The poor spring Organisation president is only going to widen Brian Tessmann said the supply gap which is the devastating impacts having to be filled from would not be news to interstate,” Peake said. dairy farmers, but that “On top of higher it must act as a wake-up power bills, grain prices call to consumers and the have spiked and farmers government. are really under pressure “The bottom line is to put away enough silage that the supermarket milk to get them through. war is creating a real threat “The heat wave we’ve to Queensland’s milk been having in early supply and for our state to December won’t help. Milk production can go off continue to supply itself extremely quickly in these with milk,” Tessmann said. Tessmann said the extreme conditions. Queensland Government “Queensland is now report stated that about down to just 535 dairy gordon collie
Dairy News AUSTRALIA december, 2012
8 // news Ron Storey says there won’t be major price dops before the second quarter of 2013.
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Grain prices will remain firm and solid until mid-2013, according to Ron Storey from Australian Crop Forecasters. “It remains uncertain until 2013 crops are assured, but it is hard to argue a case for major price drops before the second quarter of 2013,” Storey told a field day in Western Victoria. Fodder supplies might be lower than normal from northern Victoria and New South Wales due to strong export markets and floods last March, but there is good supply in southern Victoria. “Quality is excellent throughout Victoria for all hay types,” Storey added. He said sellers were remaining firm on prices which may rise $20$50/t if there is a normal summer and March-April autumn break. Farmers should focus on quantity and quality more than price when buying feed, Storey told the Tactics for Tight times Focus on Feed field day.
Price should be the least important consideration when farmers are buying feed, he said. “You can control quantity and quality, delivery period and delivery point and payment teams; price is the least controllable. You need to know what you want,” he said. “Quality is the biggest component and price is the least likely to impact on milk volume. There is more money in buying energy and there is more money in quality, quantity and delivery than in haggling over $5 or $10 on the price.” “Go for the low hanging fruit,” he said. Storey encouraged farmers to get feed contracts in writing and to actively negotiate the best deal for their needs and to particularly focus on quality. “All terms are negotiable. Sellers will take control if you allow them to so you need to build a good relationship. The grain market is competitive so use that to your advantage.” Storey said farm-
ers should plan, not predict what might happen in markets and when buying feed. “We’re all punters but no one can accurately predict what will happen. But we should plan,” he said. “Too many farmers walk out the door in the morning and say they need another load of feed which means they then have to pay spot prices.” The Focus on Feeding field days were part of a Tactics for Tight Times campaign hosted by WestVic Dairy and facilitated by the Department of Primary Industries. Dairy Australia developed the campaign as a levy-funded initiative to support dairy farmers through the milk price downturn. More than 130 dairy farmers and service providers attended the field days at Cooriemungle, Colac and Bookaar where topics such as market trends and outlooks for feed supplements, nutritional impacts of feeds and the consequences of feeding decisions were discussed.
Dairy NewS AUSTRALIA december, 2012
news // 9
China eyes Lactanz Dairies Chinese beverage
giant, the Wahaha Group, is considering buying Lactanz Dairies, the biggest single producer of milk in Western Australia. Lactanz Dairies is on the market through Elders Real Estate for $30 million. Lactanz, near Scott River in the Southwest, made up of four farms, four dairies and about 4000 milking cows over 2344ha, is a major supplier to local dairy company Brownes. It produces nearly 90 million litres of milk each year. Elders rural property specialist Noel Jones hopes to sell the prime farm properties as an ongoing single business individually the farms are known as Iley, Fouracres,
Hartridge and Fox Farm before June next year. Zong Qinghou, chairman of Wahaha and China’s richest man, has said earlier this year that he is preparing to invest in raising cattle in Australia to provide raw materials for his Wahaha Group. After working with the WA government, Zong announced a plan to spend up to $220m on dairy farms and a new milk powder plant in WA to supply China. Wahaha is currently the largest milk powder importer in China due to the demand for milk beverages. Zong told China Daily that the high quality and low price of Australian milk made investment in dairy farms attractive. “(China) consumes
50,000 tonnes of milk powder a year, half of that imported,” he said. “Our investment in Australia’s dairy farms and related industry will guarantee stable supplies of quality milk powder.” The sale of Lactanz Dairies follows the unexpected collapse of the earlier sale of another of WA’s largest dairy farms, 900ha Ravenhill Dairy, to a Chinese buyer. Chinese investors had signed a deal in January to purchase Ravenhill Dairy, near Albany, but defaulted on the sale.
Lactanz, made up of four farms, produces nearly 90 million litres of milk each year.
The transaction was due to be settled in
plete the sale despite several deadline extensions,
and despite paying and losing a 10% deposit.
Expanding horizons together
Dairy outlook strengthens: NAB Global dairy prices have bounced back from a
mid-year dip, with the latest National Australia Bank (NAB) Agribusiness Rural Commodities Wrap forecasting prices to strengthen further in 2013. Dairy is NAB’s ‘commodity in focus’ for November. The report highlights the impact weather is having globally on both production and price. NAB’s weighted average dairy price in October up was up 13.3% since a trough in July, while prices were up 3.7% on a month earlier. NAB’s General Manager of Agribusiness, Khan Horne, says challenging conditions have cut global supplies. “The drought in the US and adverse weather conditions in Europe have combined with high global feed grain prices to see a reduction in the amount of milk predicted to be produced over the next 12 months. “This should support global dairy prices further through the first half of 2013.” In Australian, milk production is expected to reach around 9.4 billion litres in 2012-13, down around 1% on last year’s figure. “Regions with a strong export focus are continuing to outperform the rest, with year-to-date production in Victoria and Tasmania up on last year. “Good rain has boosted the availability of water across the Murray Darling Basin, providing solid support to production in those regions over recent years, and we’re expecting this to continue. “However, hot, dry conditions through spring elsewhere in the country have had an impact, reducing production in other parts of New South Wales as well as in Queensland, South Australia and Western Australia. Fortunately, expected step ups in price should help offset this.” Input prices were up in October. The NAB Weighted Fertiliser Index increased 4.9%, and a significant degree of upward pressure is also likely to be exerted on prices over the coming months. The NAB Weighted Feed Grains price recorded its sixth consecutive monthly rise, hitting its highest level since October 2008.
August, but the Chinese investors failed to com-
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Dairy News AUSTRALIA december, 2012
10 // news
Western Star wins award FONTERRA IS officially the best butter maker in Australia. Its Western Star Original Butter last month won the champion butter at the 2013 Australian Grand Dairy Awards (AGDA). Western Star, owned by Fonterra Brands, originated in Victoria’s western district when the Cobden
First Dairy opened in October 1888. Winning the same category in 2009, Western Star Original Butter remains a classic, the co-op says. The judges noted Western Star Butter “shows a good closed, compact texture with an even pale, yellow colour…. A good salt balance with a hint of
nuttiness, and the sweet, fresh flavour is outstanding.” The grand champion cheese title was won by Tasmanian Heritage, the makers of St Claire, a Swiss-style cheese. The maker started in 1955 when Swiss cheese makers were invited to bring their craft to north-west Tas-
mania, a region with geographical similarities to Normandy in France. The judges noted St Claire is an excellent example of a modern Swiss-style cheese, “exhibiting perfect eye formation and distribution essential to the development of the sweet, nutty and complex
flavour these cheeses are admired for”. The grand champion dairy product award was given to Bulla premium sour cream from Bulla Dairy Foods, Victoria. This also won the champion cream class in 2006, 2008 and 2011. It contains 35% milk fat, so it retains its shape longer.
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Tasmanian Heritage’s St Claire, a Swiss-style cheese.
The judges said it is fine and clean acidity with a good texture and a great balance of creamy flavours. “This product exhibits just the right amount of acidity for sour cream. The texture is silky smooth.” The champion ice cream in Australia is Dooley’s Licorice Ice Cream, made by Dooley’s Ice Cream at Apollo Bay store, Victoria, by Dooley Milner and his daughter Alyciandra. Dooley’s churns out 300L of ice cream every 24 hours, operating since 2002. Raised on a dairy
farm in Warragul, Milner left home in his early 20s to establish his own dairy at nearby Drouin and then started working in the ice cream retail business. Dooley’s has won a number of awards, including the inaugural Premier’s Trophy at the 2010 Royal Melbourne Fine Food Awards. The judges said the ice cream displays a fine licorice flavour combined with a superb texture that all premium ice cream makers would aspire to. “The excellent licorice flavour lingers nicely on the palate.”
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sungold jersey wins SUNGOLD JERSEY milk from Warrnambool Cheese & Butter Factory won the champion milk title at the 2013 Australian Grand Dairy Awards (AGDA). The judges said: “This is how milk should taste; sweet, fresh and an absolute delight to drink. The texture produces a full-bodied mouth-feel with a clean aftertaste.” Sungold Jersey milk is collected from pure-bred Jersey cows first introduced to Australia in 1829, and known for turning out high-fat, high-protein milk. The milk is supplied from farms in southwest Victoria. In 2012, Sungold Jersey milk claimed gold awards at the Hobart and Adelaide Royal Agricultural Shows.
Dairy NewS AUSTRALIA december, 2012
world // 11
Dairy trade’s cold war begins to thaw sudesh kissun
US DAIRY exporters are a step closer to resuming trade with Russia. The US House of Representatives this month approved legislation establishing permanent normal trade relations (PNTR) with Russia. PNTR designation ensures all World Trade Organisation (WTO) members get equal trade advantages.
The US can now use WTO tools available to bring Russia into compliance. The Russia dairy market has been closed to US dairy products for two years due to Russian insistence on certain dairy certificate statements and accompanying facility inspection requirements unacceptable to the US. US Dairy Export Council (USDEC) president Tom Suber says the PNTR is a significant step forward on the
path to reopening one of the world’s largest dairy importing markets. “USDEC has been working extensively to help provide a firm basis for restoring access for US dairy exporters to Russia. More is needed beyond PNTR to achieve that goal but approval of PNTR is a vital piece of puzzle.” National Milk Producers Federation chief executive Jerry Kozak hopes the Senate will also approve PNTR with Russia.
Jerry Kozak
This will allow US exporters to re-establishing exports of cheese, butter and other products
US targets export markets andrew swallow
EXPECT INCREASED
competition in Asian export markets, particularly from the US, says Rabobank. “The US has arrived, and arrived in numbers,” the bank’s food and agribusiness senior analyst Hayley Moynihan warned. Speaking to the title, “Uncle Sam gatecrashes the Asian dairy party”, Moynihan explained the US dairy industry is getting its export business organised like never before. Once it looked at world markets “as a place to get rid of product” so domestic prices would recover but now it is targeting export markets, notably Asia, from the outset. This year the US is forecast to
export 8bn L, nearly as much as Australia’s entire production. Moynihan warns we “don’t want to be complacent about how price competitive the US can be, despite drought, despite high feed costs. It turns very quickly for them and when it’s good, it’s very good.” The fact that for sustained periods in the last five years world dairy markets have actually been at a premium to US domestic prices has caused the mindshift, she believes. Vietnam, Japan, Indonesia, and particularly Korea, are now importing from the US. Moynihan says the good news is it will not be a smooth ride for US producers as their market becomes export led, and demand growth in Asia
DAIRY
informed US authorities that it would close its borders to US dairy if the two countries could not develop an export certificate that the US government would sign and a plant inspection protocol that Russian regulators would accept. The two sides renewed certificate negotiations in earnest, but talks stalled and Russia formally closed the market to US dairy suppliers in September 2010.
Fonterra works with council following Cororooke closure sudesh kissun
Hayley Moynihan
for the market to fill that demand so there’s still likely to be some [upward] pressure on prices.” Rabobank’s current forecast is for a price range centred on US$3500/t for whole milk powder. Shortterm a “sharp tightening” in the market in early 2013 will probably see prices spike above that. However, it’s important prices don’t go too high as that will turn off demand, she says. A weaker US dollar could put pressure on the price range, as could feed costs, and the global economic recovery.
FONTERRA IS talking to Victorian state government officials as it counts down to closing a milk plant employing 130 staff. Discussions are ‘constructive’ and ongoing with the Colac Otway Shire Council and state and federal organisations. The Cororooke site makes soft cheeses and cream products. Production there will be progressively closed over the next year. The council in the region is “immensely disappointed” with Fonterra’s decision. Acting chief executive Jack Green says the factory’s closure will have a significant impact on the community. While the council has not been involved in any discussions relating to the closure, it acknowledges the plant is old and faces significant efficiency issues. Fonterra wants to help those employees who wish to relocate to other sites to identify suitable roles. However, it is unlikely to relocate all employees and there will be redundancies. Fonterra Ingredients Australia manag-
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access issue is multifaceted, involving the separate but related complications of the dairy certificate, the 2010 formation of the Customs Union between Russia, Belarus and Kazakhstan, and Russia’s accession this year to the WTO Early in the last decade, the US and Russia essentially agreed to disagree on dairy certification for US products. But in 2009, the Russian government
ing director Simon Bromell says it is providing outplacement and support services to all employees, and “working with the Victorian Government to ensure everyone at Cororooke has the opportunity to retrain or build on their current skills through government training programmes.” He says the Cororooke plant is at least 100 years old and needs major upgrades to meet environmental and production standards. “While our first preference is always to upgrade and maintain our sites, the challenges we face and the barriers to modernising this particular plant mean the most responsible thing to do is close it.” The council points out the Fonterra factory was part of the fabric of Cororooke and south-west Victoria’s dairy industry for 100 years. “This is a sad day for Colac Otway Shire, and in particular for those people who work at the plant,” says Jack Green. But he points out Fonterra’s decision was based on a planned rationalisation of its three factories in the region, and did not necessarily reflect on the overall health of the local manufacturing sector. TH1354M 28/11/2012
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Dairy News AUSTRALIA december, 2012
12 // world
Third time lucky for India? sudesh kissun
FONTERRA HAS dropped plans for pilot farms in India as it makes a third attempt to enter the burgeoning market. The co-op’s $21 million project, for a 4000-cow pilot farm with the Indian Farmers Fertiliser Cooperative Ltd (Iffco), is dead because the proposal was rejected by Indian authorities. Iffco doesn’t own processing plants and this is believed to have weakened Fonterra’s bid. In 2009, Fonterra parted ways with its Indian joint venture partner Britannia Foods. An Indian dairy industry leader visiting New Zealand says Fonterra must change its strategy. National Dairy Research Institute Southern Campus head Dr Satish Kulkarni says the co-op should partner with private companies and produce niche products. Kulkarni last week told the Indian-NZ Business Forum in Hamilton that private processing of milk is growing rapidly, with companies taking over from cooperatives. Therefore it makes sense for New Zealand companies to build partnerships with private processors, he says. A Fonterra spokesman says the co-op will explore all opportunities in India including looking at established farms. Since the Iffco deal it has been investigating options. “But we have no concrete plans to establish farming operations at this stage,” he says. Kulkarni believes Fonterra’s future hinges on making value added products in India. He said that Fonterra must look at niche products, such as ghee or clarified butter,
commonly used in South Asia and Middle Eastern cooking. “Ghee is currently produced in the Netherlands and exported to the Middle East,” he says. “Fonterra should look at teaming with private processors and [consider] such high value products. This is just one example.” Fonterra last week opened its first office in New Delhi as part of its strategy refresh that identifies India and China as strategic markets. It has appointed Hamish Gowans general manager India. Fonterra presi- Hamish Gowans dent greater China and India Kelvin Wickham says the opening of the Delhi office and Gowan’s appointment will allow Fonterra to better understand this important dairy market. “India’s dairy industry is growing rapidly. With 20 million more mouths to feed every year and an increasingly affluent population, the demand for high quality dairy nutrition continues to grow at a rapid pace. Annual dairy consumption is forecast to reach 180-200 million tonnes by the end of the decade. “Today India produces about one sixth of the world’s milk and almost all of this is consumed locally. “The country has a large, complex dairy industry and, while Fonterra has developed a strong knowledge of the country’s dairy environment, it is clear we need to have dedicated leadership on the ground to further strengthen relationships and develop opportunities.”
Vast complex market THE INDIAN dairy market is vast and complex. It is the the world’s largest producer of milk – 118 million tonnes last year. About 42% of milk is consumed by households almost immediately, processors use 22% to make dairy products and 15% is sold in urban centres. The remaining 21% is available for processors but
requires investment in milk plants. Milk production is expected to grow 3.5%, flooding an extra 4.16m tonnes into the market annually or 100,000 tonnes/day. To process this, 100 new plants with capacity to process 100,000L/ day are needed. This will cost US$350 million.
Fonterra’s Anlene bone health check launched last year in Myanmar has scanned 50,000 people.
Fonterra eyes a slice of Myanmar’s dairy pie sudesh kissun
NEW ZEALAND’S dairy industry is eyeing a slice of the burgeoning market in Myanmar, formerly known as Burma. As the Southeast Asian nation of 56 million opens its doors to the outside world, Fonterra has appointed Myanmar-based staff. The New Zealand Government is giving $6 million to build the country’s dairy farming capabilities through its aid programme. Fonterra has appointed Prashant Pradhan as manager for the country known as Myanmar and Burma. He will lead Fonterra’s business development in the fast-growing dairy market, driving growth and exploring opportunities. This is the first time the co-op has employed its own Myanmar-based staff. Pradhan will be based in Yangon from 2013. Fonterra ASEAN/MENA managing director Mark Wilson says Pradhan’s appointment will allow Fonterra
to better understand the opportunity in Myanmar for nutritional dairy. “Myanmar has a population of around 56 million people and dairy consumption per capita is expected to increase as people in Myanmar increasingly look for high quality nutrition that supports the health of their families,” he says. Wilson says the tourism sector is also growing fast, driving demand for high quality foodservice products from hotels and restaurants. “Fonterra has already established a fast-growing consumer business, through distributor relationships, which has more than doubled over the last year.” Last month Prime Minister John Key became the first New Zealand Prime Minister to visit Myanmar. Following a meeting with Myanmar’s President Thein Sein, he announced the $6m aid. The visit was largely symbolic to recognise Myanmar’s progress towards democracy. A military junta has ruled the country for 50 years but
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general elections were held in 2010. The generals changed the name of the country from Burma to Myanmar two decades ago but the pro-democracy movement opposed the name change. When US President Barack Obama visited the country earlier last week, he called it both names as a courtesy to both sides. Fonterra in 2011 started selling high-calcium Anlene brand milk through a local distributor to retail outlets and pharmacies. It launched the Anlene bone health check the same year and has scanned at least 50,000 people to date. Fonterra also supplies cheese, cream, butter and milk to bakeries, restaurants, and hotels. Pradhan says Fonterra has established relationships with key customers and industry partners through supplying dairy to Myanmar for the past six years. “Our priority is to further build the supply of high quality dairy nutrition to Myanmar and explore new opportunities to expand the brands we offer.”
Dairy NewS AUSTRALIA december, 2012
world // 13
Joint call to pull down trade barriers The peak agricultural bodies of New Zealand and Australia have united in calling for a truly comprehensive and generally liberalising Trans Pacific Partnership (TPP) agreement from day one of implementation. Federated Farmers of New Zealand and the National Farmers’ Federation of Australia are both participating in the TPP negotiations, currently taking place in Auckland. “Liberalisation must result in the elimination of all agricultural and food product tariffs and reform non-tariff
measures,” says Bruce Wills, president of Federated Farmers of New Zealand. “If we want to get trade going, especially by small and medium sized agribusiness enterprises, then we need all the blocks to free trade removed. “This outcome must match the political ambition for the TPP. “Australia and New Zealand want an agreement that is truly 21st century in coverage and design, setting the benchmark for future multilateral, regional and bilateral trade agreements,” Wills says
Politics mires Fonterra poll sudesh kissun
FONTERRA’S BOARD
election has become mired in politics and is distracting from the co-op’s business, says former director Mark Townshend. The Ngatea, Waikato, farmer says the co-op is too important to New Zealanders and shareholders to have personality politics distracting the business. Townshend retired as a board member in 2007 after serving two threeyear terms. He expressed dismay at the public debate among shareholders as they vote for three director positions. After the divisive and lengthy TAF (trading among farmers) vote in June, the co-op continues to face questions on the share trading scheme. Some shareholders are also questioning retiring chairman Henry van der Heyden’s decision to stay on as a board member until mid-2013. The election of John Wilson as chairman-elect has also divided shareholders. Questions are being raised about the candidate assessment panel (CAP), an independent committee vetting director candidates to help shareholders with the vote. Townshend says the TAF process “somewhat by necessity, took longer to resolve than was ideal from a business focus perspective”. But it’s a good
scheme for the co-op. It provides a solid springboard for new chief executive Theo Spierings to create value for Fonterra and its shareholders. Townshend notes that the appointment process of Wilson as chairmanelect was apparently a strongly contested affair. “A decision was made and now the new chairman John Wilson deserves to have good support for the next one-two years to stamp his mark,” he told Rural News. On van der Heyden staying on as a board member, Townshend says “it’s a grey area”. “John Wilson is publically stating that the board unanimously requested Ralph Waters and Sir Henry to stay on for a further six months through the TAF bedding-in process and for board continuity. From a business perspective this makes logical and commercial sense. “There are arguments for and against a retiring chairman remaining on a board. “It is a grey area but almost irrelevant in comparison to providing board continuity for an interim period.” Townshend defended CAP. He sat on the CAP panel in 2007. He notes the 2012 panel comprised three independent members, one of whom is the chairman. Van der Heyden and Shareholders Council chairman Ian Brown are also members.
“If we want to get trade going, then we need all the blocks to free trade removed.” Jock Laurie, president of the Australian National Farmers’ Federation, added that from an agricultural perspective, “market access is the core deliverable; agriculture needs to be at the heart of negotiations and the result is a net and sustainable creation of jobs”. Both national farmers’ organisations also support conclusion of the
negotiations in 2013. “From our perspective, genuine agricultural trade liberalisation in the TPP context is highly important to the agricultural sector’s future prosperity and competitiveness,” Laurie says. “A free trade outcome is needed to drive resource efficiency needed to meet the growth of global demand for
food and fibre off the back of an increasing world population. “Improving diets driven by increasing consumer affluence means availability and affordability both become essential criteria in meeting food security needs,” Laurie says. The New Zealand and Australian agricultural community welcomes additional members into the TPP, provided there is a genuine commitment to open their respective markets and removing behind the border impediments to trade in agricultural and food products.
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Dairy News AUSTRALIA december, 2012
14 // breeding management
Final Midway Park sale tops $7500, av $1705 BUYERS from right across Australia
pushed prices to $7500 at the final dispersal sale of Midway Park Ayrshires at Tatura last month, where 97 lots, including 27 heifer calves, averaged $1705. The heifer calves averaged $1230, while 55 milkers averaged $1920 and 15 joined heifers to calve either in spring or autumn averaged $1770. It was the third and final stage of the dispersal sale of Rob and Lynne McCartney’s herd. Kevin Smith from Hillcrest Ayrshire stud, Queensland, paid $7500 for one of three embryo transfer daughters out of the two-time International Dairy Week grand champion Midway Park Kates Orange by Des Chamois Poker-ET. These three daughters sold for $5100, $6000 and $7500 and had calved in either September or March this year. Second top seller at $6000 was a full
Holsteins topped at $10,300
ET sister to the top lot, in Midway Park Chamois Orange (Poll) (ET) selling to Auchen Road Ayrshires, Qld. The third top lot was another from the same flush in Midway Park Polkie Orange (Poll) (ET), selling for $5100 to Saunders and Day of Shady Creek, Vic. This year’s Royal Melbourne Dairy Show grand champion, Ayrshire Inverurie Vienna Charmed, sold for $3100 to Munden Farms of Warragul, which pur-
chased 22 head. The Hurlstone Agricultural High School in NSW selected the current Reserve Junior Champion from Melbourne Royal, Midway Park Butter Midori a granddaughter of the top selling cow from the first stage dispersal who recently won Reserve Champion Cow at Brisbane Royal at $3100. Selling agents were Dairy Livestock Services.
$13,500 price tag for unborn calf at Globall Fusions sale A huge crowd at the Berry, NSW,
Showgrounds pushed prices to $13,500 at the Globull Fusions 1st Edition Sale, organised by South Coast Breeders Andrew Boxsell, Andrew Cullen and Justin Walsh. The 43 lots grossed $239,200 and averaged $5563. In the breakdown, 4 cows av $5675, 9 unjoined heifers av $5700, 24 unjoined heifers av $5167, 1 unborn calf sold for $13,500, 2 embryo packages av $5250, 1 semen package sold for $7200 and 2 Jerseys av $5500. Sale top of $13,500 was paid by D Crawford of Invergordon, Vic for the pick of heifer calves due in February 2013 by Goldsun from the famous EKOseeana Ambrosia EX 95 the Outside from Tri Day Ashlyn EX 96. This top lot was sold by Bluechip Genetics and St Jacobs, USA. Second top lot was the noted Red Show heifer Lightning Ridge Contender Jane 4 at $13,000 she was sold by Declan
Crookslea End Holstein sells for $10,300
Patten to Bluechip Genetics, Vic. Third top of $10,000 was Glenalbas Braxton Adeen (imp. ET), this 9 month heifer is from a Goldwyn granddaughter of Kingstead Chief Adeen EX 94, she sold on behalf of AF Garratty P/L to Swan P/Ship, Jamberoo, NSW. Strongbark Holsteins sold the 2-month-old calf by Sid from a Goldwyn daughter of Penlow Geo Integrity EX 95 in turn from Penlow Georgette Outside EX 96 at $9000 to B & C Baker of Kendall, NSW. These buyers also selected Murribrook Atwood Sizzle, a 4-month from a Shottle from the famed Glen Drummond Splendor family, offered by MJ Sowter at $8000. Also at $8000 was the 10-month red heifer Rissmore Artie Cara (imp. ET) offered by the Murray family of Milton, NSW. This lot was a direct daughter of World Dairy Expo Grand Champion R & W Cow Yursden Kite Caramac EX
92. She was purchased by J Jennings of Colac, Vic. Again at this price was the very correct in milk heifer Glenalbas Jasper Trixy (imp ET), winner at several shows she sold to B.Pepper of Numbaa, NSW. Jim Salway of Cobargo paid $7700 for the stylish heifer Cullen Sanchez Lara, a daughter of the noted NZ Champion Tahora Legarto Lara EX from Andrew Cullen. Andrew Boxsell sold Willow Mist Atwood Mandy a granddaughter of the Royal Winter Fair Champion Leduc Briker Mandy EX 96 at $7000 to R.Hull, WA. The outstanding Jersey heifer Bralock Shot of Merle sold a/c B & J Gavenlock at $7500 to S Morrison of Wingham, NSW. The 8 straws of Goldwyn sold at $900 each. Selling agents were Dairy Livestock Services.
for the North West Stars of the Future Sale at Echuca last month, where 43 Holsteins grossed $184,000 and averaged $4279. In the breakdown, 7 cows averaged $4814, 11 joined heifers av $4405 and 25 unjoined heifers av $4074. The top-priced cow came late in the sale when Crookslea End Steadytopsy sold for $10,300. This daughter of the 2012 Melbourne Royal Supreme Intermediate Champion was offered by Wilkie and Shea, Bacchus Marsh, Vic, and sold to B & L Windridge, Cohuna, Vic. The second-top price of $9100 was paid by Tasmanian breeders S & S Armstrong for Gorbro Fever Unbelievable, a July 2012 born heifer from a VG 87 2yo Baxter. She was purchased by R & J Gordon, Cohuna. Third top lot at $7500 was McLennan Park Goldchip Roulette (imp USA ET), an April born heifer backed by 14 generations of EX dams from the Pinehurst
Audrey Posch family. She sold on behalf of L Logan, Heywood, Vic to S & R Joyce. The Flanagan Family sold Woodlawn Fever Ashlyn 4704, from a VG Toystory bred down from Tri Day Ashlyn EX 96, and was purchased by GJ Quinn, Cohuna, at $7400. Dot Com Holsteins, Kialla, Vic, sold Dot Com Beacon Faith (imp NLD ET) from the Ralma Juror Faith family, bred to sexed Jetfin, for $7100 to T & E Harry, Tennyson, Vic. These buyers also selected the top young cow Holloddon Vacum Corrine 1985 VG 86, doing 45 litres and bred from 6 gens of EX & VG dams from the Holland family of Newbridge at $6100. The show winning 3-year-old View Fort Destry Della sold on behalf of Patullo & Weller at $7000 to S & S Griffiths, Katunga, Vic. Also at $7000 was Kearla Windbrook Toni a January born heifer from Windy Vale Inquirer Tiffy EX 92, sold by K & C Gass to the well-known Clydebank Herd.
Interstate demand at Bowthorne dispersal The first stage of the complete dispersal sale of Dallas and Juliet Clarke’s Bowthorn Holstein Stud at Wallalong, near Maitland in the Hunter Valley, NSW, grossed $415,850. Sale top of $5800 was paid for Bowthorne Rionel Blewett, a 4yo that had produced 14437 litres in 237 days and was still giving 63 litres. She was purchased by local breeder M. Lennard. The 231 cows grossed $415,850. In the breakdown, 162 register Holstein cows av $1931, 26 registered Holstein heifers av $1607, 9 Guernsey cows av $1733, 34 grade Holstein and cross cows av $1341, Next top of $5100 was paid by Rod Thomas of Deervale for Bowthorne Stern Shirley, this VG 87 4yo was due in
March with a Mr Burns heifer and had produced 17,293 litres in 305 days. The imported ET young cow, Bowthorne Shottle Livella from a VG full sister to the famed Idee Lustre EX 95 sold for $5000 to G & T Stokes of Ellenborough, who selected 49 lots throughout the sale. Speldon P/ship of Gloucester also selected several lots including Bowthorne Caz Crissy VG 86 at $4750. J & M Drury of Attunga selected several top lots including Bowthorne Hobuck Mel at $4400, this VG 85 heifer was producing over 60 litres and Bowthorne Zander Salmon VG 89 at $4200. The selling agents were Dairy Livestock Services and Elders.
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Dairy NewS AUSTRALIA december, 2012
breeding management // 15
GA boosts annual profit Genetics Australia has announced a
group profit after tax of $458,326 for the 2011/12 financial year to June 2012 against a comparable result of $7772 profit after tax the previous year. The balance sheet remained strong with a working capital of $2.7 million. GA said this placed them in a better position to expand and improve operations. The Net Capital Employed of $11.9m also improved compared to the previous year. Genetics Australia
chairman, Ross Gordon, said it was a pleasing result given the competitive dynamics of the herd improvement sector. GA chief executive, Chris Jones, said the cooperative had restructured various aspects of the business during the year to create greater focus on delivering a higher level of customer service while trying to right-size the cost base. Jones said the GA breeding program again produced industry-leading options for dairy farmers. “Of the top Australian-
standing daughter-proven Holstein bulls on APR, the top five are all owned by the cooperative while seven of the top 10 Holsteins, based on genomic ABVs, were Chris Jones also offered by Genetics Australia. “Type continues to be a feature of the bulls with
the breed-leading Holstein – Medallion being one of the most popular bulls available in Australia. “The Jersey program continues to produce good outcomes and the strengths of the local bulls can clearly be seen by five of the top 10 daughter-provenJersey
bulls as well as six of the top 10 genomic sires, all being available from the cooperative. “The Aussie Red Breed also continues to be a real success story for Australia and we are pleased that Genetics Australia bulls are leading the way. Of the top Aussie Reds with both production and type ABVs, Genetics Australia bulls hold eight of the top 10 positions.” Gordon said the
genetic offering from Genetics Australia was now supplemented with the widest source of international genetics through our overseas partners World Wide Sires and pointed out the performance of the high ranking international sire - 7H8081 Planet. Gordon said GA continues to expand its range of merchandise products. The Estrotect heat detection patch, first
introduced to Australia by Genetics Australia, continued to grow in demand as more farmers recognise their ease of use and accuracy. He said the cooperative was recently appointed the Australian distributor for the world’s most successful electronic heat detection aid - Moo Monitor. The GA AGM will be held in March next year in Bacchus Marsh.
What do you think of your cows? centre,” Axford said. “So, whether she’s workability data collection a wonder cow or a currently under way, now workability nightmare, is the time of the year for make sure you let us dairy farmers to provide know.” feedback about how easy In other ADHIS news, or hard their cows are to Matthew Shaffer and Daryl work with in the dairy. Hoey have been appointed Whether she’s a kicker, to its board. a slow milker, or a delight Shaffer is the chief to have in the dairy, the executive of Holstein Australian Dairy Herd Australia and president Improvement Scheme of the World Holstein (ADHIS) wants to know Friesian about her. Whether she’s Federation. Michelle Axford from a kicker, a slow He has a particular ADHIS said all milker, or a interest in dairy farmers delight to have improving benefit from in the dairy, data capture workability and transfer data supplied the ADHIS chairs by those who wants to know and the dairy herd record. about her. industry The data would be used to calculate data working group Australian Breeding Values of the National Herd (ABVs) for bulls for milking Improvement Association. Hoey is a fourth speed, temperament and generation dairy farmer likability. from Katunga in northern “Australian dairy farmers are good at scoring Victoria who has been involved in a number of workability traits. So industry organisations much so that bulls with associated with genetics high likability ABVs have and breeding cattle. been found to produce He has held roles with daughters that are more likely to stay in the herd for Australian Dairy Farmers Ltd, Genetics Australia, longer,” Axford said. the Gardiner Foundation, “We all want animals Murray Dairy and the that are easy to have in United Dairyfarmers of the dairy. That’s why Victoria (UDV). workability traits are ADHIS chairman included in the Australian Adrian Drury thanked outProfit Ranking. going directors Stewart “Farmers who herd McRae and Peter Aldridge record contribute and retiring member workability data on this season’s 2-year-old heifers Ivan Jones for their contribution. Jones had through their on-farm served on the board for 24 software or directly to years. their herd recording
With the spring
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6/08/12 1:14 PM
Dairy News AUSTRALIA december, 2012
16 // OPINION Ruminating
EDITORIAL
Putting banks first cuts agriculture’s potential
milking it... Cost cutting starts at the top
Australia’s dairy farmers can rest assured that Dairy Australia is cutting duplication wherever it can – and it starts right at the top. DA chairman Max Roberts chaired the annual general meeting last month but when he introduced a video segment on automated milking systems, it was narrated by none other than Max Roberts. It made sense – Roberts is a former ABC journalist and broadcaster and his dulcet tones would be first choice for anybody wanting commentary for any situation. Still, it’s good to see DA saving its funds where it can.
Old habits die hard
Murray Goulburn has made a concerted effort under Helou’s leadership to be more accessible to the members, the media and consumers but old habits die hard. When a question was directed at Mike Ilhein – former Brambles CEO and nominated for the MG board – about financial losses at Brambles during his time, MG chairman Philip Tracy took the microphone and told the co-op member the board had vetted Ilhein and approved him. Effectively, nothing to see here, case closed. When a second co-op member asked for Ilhein to respond, he did so, providing all the information about how restructuring and the GFC caused losses at the time but has now put the company in good stead. He also said this time provided great lessons he could apply to Murray Goulburn. He received applause from the audience and was subsequently elected to the board. Tracy should have let him answer in the first place, instead of trying to keep the audience in the dark.
Defending our bovine friends
Christmas cheer
Murray Goulburn CEO Gary Helou must have thought the snide remarks directed to the new Devondale cow was the equivalent of shooting Bambi. During his address at the Murray Goulburn AGM last month, his discussion on the co-op’s Devondale brand segued into the newly designed logo - a cow, which has replaced the former logo apparently well loved by many. “I know some people don’t like the new cow for whatever reason, but it’s a good cow,” he said, prompting laughter from the audience. Encouraged by the levity of the moment, he declared in a very presidential manner: “It’s a fantastic cow.” Helou said consumers “love” the cow and it helps Devondale stand out in a crowded marketplace.
We’d like to wish all our readers a safe and happy Christmas and a 2013 with just the right amount of rain (at just the right time). We’ve asked Santa for a cut of at least 15 cents in the Australian dollar and a fall in northern hemisphere milk production – let’s see if he delivers. We appreciate all the phone calls and well wishes received when we’re out and about and we hope to see you at International Dairy Week, workshops and other field days next year. We’ll sign off with some jokes to help the Christmas cheer. Déjà moo: The feeling that you’ve heard this bull before. Kid: Got Milk? Teacher: You mean “Do you have milk.” Where’s your grammar? Kid: She’s at home making cookies. That’s why I need the milk. Q: What do birthing cows and marathon runners have in common? A: Healthy sleek calves.
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Banks will no doubt use the term “high funding costs” when they announce their decision not to pass on the full Reserve Bank interest rate cut of 25 basis points. It’s a selfish decision, made to protect their share price and profits, and one that hurts the farming sector. In its final meeting for 2012, the Reserve Bank cut the cash rate by 25 basis points in an attempt to kick-start economic activity outside the mining sector as the resource boom begins to slow. The Reserve Bank’s decision to cut the cash rate to 3% - for the first time since April, 2009 – will hopefully see a fall in the Australian dollar. The dollar was worth US$1.04 when the announcement was made. Anything above this level makes it particularly difficult for processors and therefore has a negative on farmgate prices. However, banks must play their part too. A cut in interest rates by the full amount set by the Reserve Bank would give farmers across the country additional income and significantly improve cash flow. Most analysts assume demand from China in particular and Asia in general is going to present wonderful opportunities for Australian agriculture. The lack of free trade agreements with Asia aside, any chance farmers have to capitalise on future opportunities is limited without a sound financial footing. Proper interest rate cuts would help our agriculture sector, and the economy. Retaining extra profit helps only the banks. They know that. The National Farmers Federation has an Agribusiness Loan Monitor which tracks the movements of financial lenders’ agribusiness loans against the official interest rate. This will show which banks will follow the RBA’s lead. The November Loan Monitor showed that eight banks made some reduction in their rates since the October RBA rate cut. However, only one bank – BankWest Agribusiness – passed on the full 25 basis points, and then only to their agricultural overdraft customers. All financial lenders must pass the full rate cut on to farmers, to help promote and stimulate future growth in the agricultural sector.
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Dairy NewS AUSTRALIA december, 2012
opinion  // 17
Consumers need better understanding of farm costs WHEN compared to Australian agricultural practices, there are some poor track records in other parts of the world with both crop production and the treatment of animals. An example of this was broadcast on Four Corners last month with the exceptional circumstances surrounding the recent slaughter of Australian sheep in Pakistan. While Australian farmers are shocked by the thought of their animals being slaughtered in this way, it’s necessary to understand the complexity of this situation before responding in an emotive or hasty manner. Recent events highlight the role that Australia has to play as a leader of agricultural best practice, the role of Australian consumers and government in supporting our farmers, and the potential role of Australia as a food bowl for Asia. Unfortunately, standards of agricultural practice in many countries, when compared to Australia, are often lower for many reasons: cultural, socio-economic, education levels, and even climate. A further reality is that the world has billions of people malnourished and living on a few dollars a day. Current food supply chains are already failing to keep pace with demand and therefore they should not be undermined unnecessarily. It is not Australia’s place to change the thinking of billions of people when it comes to farming practices, nor is it our place to change or even make judgements about their culture. However, we can work on ensuring our supply chains operate to the best possible standard being a world leader in the production and delivery systems of our industries. For animal liberation groups such as Animals Australia, which released the vision of the sheep that had arrived in Pakistan as a result of a regrettable and unique set of circumstances, the answer would be to shut down the live export trade, just as they seem to want the virtual shutdown of domestic industries such as chicken meat, dairy, eggs, and pork. It is a misguided and ideological crusade that ignores the reality of the situation and seeks to see some in the community make presumptions on behalf of all consumers. Surely it is far better to be engaged with developing countries, continuing the good work we are already doing when it comes to live export, which exceeds that of any other country.
Joanne grainger Australian farmers have been told repeatedly in recent years – and more often in the last fortnight – that they have a very important role to play in being a food bowl of Asia. In that context, the Four Corners episode actually highlights the need for us to continue the live export trade and to make improvements where we can, just as it underscores the importance of the entire Australian agricultural system. Asia has a rapidly growing population and demand for food; and Australia has truly excellent farming practices that can help meet this demand. Shutting our borders or closing industries would achieve two possible outcomes: see people in foreign countries deprived of food; or see their food sourced from areas not operating to Australian standards. The result may no longer draw the attention of animal liberation groups, but the issues would still be there, and could be even worse. The more pragmatic alternative is to stay engaged and keep working on these issues where we can, and as we are already doing. Finally, we need Australian consumers to have a greater understanding of the impact of their purchasing practices, knowing that buying Australian grown food and fibre is one of the best ways they can contributable to best practice and sustainable agriculture. Currently, it is too easy for arm chair activists to be critical of these issues but then fail to back-up their action. They purchase cheap imported food at the supermarket, or even $1/litre milk, which does not reflect the real value of the product. Australian consumers need to understand the costs that come with producing high quality food and fibre to world standard. Farm wages in Australia can easily be 200 times that of developing countries, not to mention all other input costs and investments made in the Australian farming system. One of the best outcomes of this current situation is for a greater understanding from consumers regarding where their food and fibre comes from, and the myriad of costs that go into producing it to world’s best practice. • Joanne Grainger is president of the Queensland Farmers Federation.
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Arm chair activists can be critical of Australian production practices but then purchase cheap imported food or $1/litre milk.
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Dairy News AUSTRALIA december, 2012
18 // agribusiness
NZ season at play in worldExport milk price demand remains strong Dairy NewS aUSTraLia june, 2012
agribusiness // 17
Last month’s column took a broad look at the Australian season so far. Most farmers – particularly in export-oriented regions – have received at least one increase in their farmgate price, due in large part to a recent recovery in global dairy commodity prices. While prices of all commodities have firmed and markets are currently in good balance, some patterns have emerged that reflect the global dairy situation. Prices on the Global Dairy Trade (GDT) online auction platform have increased 20% since the beginning of the 2012/13 Australian season in July, with the average whole milk powder (WMP) and skim milk powder (SMP) prices rising by 19% and 31% respectively. While traded volumes vary, WMP and SMP make up around three quarters of the volume of product traded on GDT. Australian exporters suggest price rises of 15% and 21% for WMP and SMP respectively, while cheese prices have remained steady –
increasing just over 1% cents/litre in March (AUD 41c/L) to 28 With season 2011/12 only a few incremental change in milk production (year-on-year) since July. weeks from ending, attention is now Euro cents/litre (AUD 36c/L) in April. Profit margins are under pressure in the focusedprices on 2012/13 milk prices as farmWhilst cheese US, and in NZ Fonterra has announced ers consider strategies for the coming are generally year. slower to the final payout for the 2011/12 season In some domestically-focused has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incormove in either direction gLobaL impacT to NZ$6.45-$6.55/kg MS (AUD$4.96porating lower prices and reduced ‘tier JohN DropperT than those ofone’ theaccess powders, $5.04). are undermining farmer Effectively, global dairy markets are and supply stability. For global impact the differenceconfidence in dynamrebalancing. Lower prices will both private label Droppert contracts and promany farmers in export-oriented Shifts inJohn slow production growth and stimulate regions, aand lower price outlook relative to cessor rationalisation have seen milk ics between WMP demand, and as this occurs we will ultithe current season not only adds to the companies adjust their intake requireSMP is of interest. Other mately see a price recovery. Key factors challenges of doing business, but seems ments and pricing to meet the changto watch on the global scene will be the ing demands of aUS, highly pressured retail to contradict the positive medium hot across much of contiSMP term are the EU and sources produce different rate at which milk production overseas outlook of Asia-driven dairy demand marketplace. Lower contract prices and nental Europe. which each ship around figures, but the patterns slows in response to lower prices, the a lack of alternative supply opportunigrowth. flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries present challenges Dairy Australia’s By contrast, around 30%outlook of theties world’s tradedin a market with are similar globally. Rapid indicative for southern farm gate milk prices – limited manufacturing capacity. Despite is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of of the world’s WMPwhilst early nomic growth rates that support China’s economic growth, and the value SMP. in these increases in both WMP April (leap year adjusted), thetwo underlyinghalf domespublished in the recent Dairy 2012:Farmers Sit- these challenges, suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. tic market is stable, with steady per-capuation and Outlook report, is for an have originate from faced severe exportsdata and SMP prices during the markets Demand for exported dairy prodopening price range of $4.05-$4.40/kg ita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced New Zealand, where above and well documented July-September period ucts remains a positive and will conMS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. This situation has seen the scales tinue to grow with the middle class in between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish average in-calf rates and the past have given way to a period hardships over In the seasons following the 2008 this season up 10% on last year - a huge tip in favour of buyers in dairy mar- large emerging markets such as China, report considers the wider market picmarket influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing financial and subsequent com-retention ture and summarises the many herd have profew factors months, withcrisis adverse of price stability during at play; the key theme of the current sit- modity price recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction with around a third of Notwithstanding the duced rapid supply growth climatic and economic October and November, as uation being that of re-balancing in the export-oriented regions have seen solid ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Locally, the domestic is supported by a 2011 peaks, whilst powder prices have milk supply gap in Brazil prevents global supply growth (see chart) - with nificant chain. goingmarket to cheese proexpected slowing in NZ during the first few factors including drought, global supplydairy andsupply demand In regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perduction, 28% to the SMP/ growth, the strong season months of their 2012/13 floods, high feed prices have been well balanced. have subsequently been reduced in capita consumption. Whilst the dairy producing drinking milk, many farmers ern Hemisphere amongst those expand- ing South America. market isline, currently a challenging most exporting The to average butter Despite wider (which economic uncering output as their margins increased. face a re-balancing marketand in thelow form milk and 11% to place so far has beenregions. enough production season prices curSMP however, has of renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that balWMP (the rest is keep WMP prices from commences in June). tailing milk output. risen faster and remained and reduced access to ‘tier one’ supply. ditions have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return.proincreasing as fast as those cessed as drinking milk Building on a bumper Despite the end of the higher than WMP for or other low volume or of SMP. Whilst strong 2011/12 season, data to drought in the US and most of the season specialty products). This some recovery in farmgate September shows produc- purchasing – particularly to date, despite its has diversification beneby China – has kept up prices, grain prices remain tion up by around 8% so historical propensity to fits in not over-exposing with seasonal increases far this season, although elevated and heavy culltrade at a discount. To austraLian DairY, ASEAN-Australia-New Zealand FTA (AANZFTA). rice and wine exporters toing industry returns to one in WMP supply, the conis continuing to reduce few expect this rate of illustrate, Dairy Australia “Protectionist sentiMalaysia are the biggest product, but the benefits tinuing level of Chinese growth to last the full 12 the number of cows availmonitoring shows SMP ment over agricultural winners in a free trade goods is rife and grow(FTA) signed able are limited by the linkpurchases over the next months. Local sources for production in the has traded at agreement a higher ing across the globe, so to provide portion pack between the two counaustraLian FooD ages between dairy comfew months is seen as a suggest that produccoming season. Similarly average pricetries than WMP in this context it is pleas(200-330ml) configuralast month. company Freedom Foods ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a modities, and the ability key factor (along with the tion has peaked early, and in Europe, farmers relying for only 19 out of 120 to forge an agreement seven years of negotianew milk processing plant ucts. Malaysia that feed has Thesubstitute NSW location will a liberalised onwith to cash in on growing of buyers to resilience of NZ output) expectations are that the purchased inputs months in thetions, lastallows 10 years dealt with some sensiprovide access to the most licensing arrangement demand in Asia. in favour of the cheaper that will define the direcsecond half of the season are experiencing poor pro– and four of for those have tive agricultural issues Australian liquid milk The plant, to be built in sustainable and economic not effectively covered by of milk. Pactum has exporters and allows will be source alternative. So while tion of WMP pricessoutheast into Australia, will see output trail the duction margins, having been this year. AANZFTA,” says Fraser. strong links to the Austraaccess for higher value the first Australian greenNZ production potenearly 2013. huge volumes recorded in emerged from a summer Geographic differences Sealing the deal: Malaysian trade minister Mustapha Mohamed “While under the retail products. fields expansion in UHT in lian dairy industry and will with Australian counterpart Craig Emerson after signing the deal. AANZFTA agreement expand its arrangements guarantees Aus10 years. WMP pricing Australia benefits from tial affects that was far too wet in the the latter months of the in supply are atItplay here. most of Australian agriwith dairy farmers for tralian wine exporters Freedom’s wholly in particular, it also has a balanced product mix, 2011/12 production year. UK and Ireland; and too The leading exporters of but also through technical Despite the compleers through streamlining culture’s key interests supply of milk. The new the best tariff treatment owned subsidiary Pactum
Malaysia FTA benefits dairy Freedom
Foods plant targets Asia
tion of this agreement, of rules-of-origin dechad tariffs bound at zero, Malaysia gives any counmuch remains to be done dairy and rice are two sec- laration processes and try. It also allows open for Australia’s farmers to improved marketing access arrangements from tors where incremental tap into the full potential arrangements for certain market access improve2023 for Australian rice of the Asian region and commodities. ments have been negotiwith all tariffs eliminated The Malaysian market beyond. ated under the Malaysian by 2026. He says the NFF will is worth about A$1 bilThe National Farmers’ FTA. now throw its attention lion in Australia agricul“This trade deal was Federation says the trade towards ensuring agricultural exports – including also particularly impordeal will improve interture remains front and being its fourth-largest tant for sectors such national market access centre in completed FTAs sugar export market and for Australian agricultural as dairy that have been fifth-largest wheat export with South Korea, Japan, facing a competitive disgoods. China and Indonesia as market. advantage in Malaysia “After seven years of With an annual economic immediate priorities. compared with New Zeanegotiation, the NFF is “These are all markets growth at about 5%, land which already has under no illusion of how Malaysia forms an impor- with enormous growth challenging it has been to a completed FTA with opportunities and where tant part of the ‘Asian Malaysia in place.” complete this FTA with significant barriers to Century’ story and the The FTA also sigMalaysia,” NFF vice presiopportunity this presents trade in agriculture still nals some administrative dent Duncan Fraser says. not introonly through for Australianproduction agricultural exist, for AustraThe says FTA will fill a and itybenefits and assist in building Geoffrey Babidge tariffs that restrict trade producers, says Fraser. number of gaps within the lian agricultural export-
A2 investigates global expansion pam tipa
A2 CORPORATION
will use its Australian marketing model to ramp up fresh milk sales in New Zealand as it also eyes new markets and products globally. The Australian based company has just released its strategic review which includes expanding into North America and the European markets of Germany, France, Italy and Spain. Another initiative could be selling UHT milk and yoghurt in Asia Pacific and Europe. Managing director
while the wider international initiatives are the higher priority, the17com016-017.indd pany also wants to expand the business in New Zealand. “The company has also decided to enter the New Zealand fresh milk market directly through the establishment of a wholly owned operating subsidiary,” he says “We are now in discussions with our sole remaining non-exclusive licencee Fresha Valley (Northland) to work with them to establish a new business model whereby we can participate in the sales and marketing activ-
distribution. “There’s been increasing interest in A2 in New Zealand, consumers are wanting to access it and it has had limited distribution. Obviously only the full fat product has been available and we would like to encourage wider distribution and more sales. “Packaging and marketing initiatives we have applied successfully in Australia [could be brought] to New Zealand over the next one to two years.” Babidge says the company is in discussion as how to ramp up further
duce a low fat as well as a full fat dairy. “That might include further opportunities to partner with other people to manufacture the product but at this stage our discussions are with Fresha Valley.” Babidge says the company in partnership with Synlait has started to recruit a2 milk supply in the South Island to manufacture infant formula for export to China. “We will be keen to start building direct supply from A2 farmers obviously to supply A2 fresh milk for the fresh milk supply in New Zea-
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.
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
wider implications. Australia’s dairy processors themselves vary in their product mix and therefore their potential to exploit or suffer from such pricing quirks; however the healthy competition for milk supply that exists in most export regions suggests that while WMP might lead the market in the coming months, for farmers, it’s ultimately the overall market movement (and the exchange rate) that counts. • John Droppert is industry analyst with Dairy Australia.
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.
6/06/12 1:41 PM
A2 Corporation is eyeing new markets around the world.
land but also as we grow our infant formula business.” Babidge says although A2 is keen to increase fresh milk sales in New Zealand, a higher priority is moving forward the infant formula initiative, with the recent appointment of China State Farm
Holding Shanghai Company as its distributor. “This is a significant step forward; we are expecting to be selling fully packaged New Zealand milk formula in China by mid next year, and we are proceeding with the launch of A2 fresh milk in the UK. It is just start-
ing to appear on shelves in the UK. “The strategic review also announced a number of other prioritised initiatives including UHT milk being sold into Asia and how we would prioritise some additional overseas markets for fresh milk over time.”
Dairy NewS AUSTRALIA december, 2012
management // 19
Feed pad underpins herd expansion rick bayne
When Neil Dickson decided to increase his herd size by 50 but didn’t want to hire more staff, he knew he had to come up with another solution. So the Bookaar dairy farmer near Camperdown in south-west Victoria looked at his infrastructure and decided to install a new feed pad. “The infrastructure had to change to allow us to increase production without hiring more staff. The feed pad will give us more flexible labour and we should get a good efficiency jump,” Dickson said. “There are three of us here but I didn’t want to employ anyone else. “Last year we were spending most of the day feeding cows. It is a nightmare on weekends and public holidays.” Dickson is building the feed pad
himself and was able to secure low cost gravel for its base. “We saw a lot of different designs and how and where to set them up and came up with what we thought would be best for our farm,” he said “We think it will be money well spent and we’ll get a good return on it.” Doing the work himself has saved $10,000 and Dickson expects the total cost of about $33,000 to be recouped within a year and a half. Dickson predicts he will be better able to control his feed and reduce waste while also protecting his paddocks from overgrazing. “We strip graze and are always changing the fences,” he said. “We’ll probably get about 5% waste on the feed pad but that will be a lot better than what we had in the paddocks.” Initially the feed pad will have a gravel base but Dickson will look at
Neil Dickson will build his feed pad on his south-west Victorian dairy farm himself, saving $10,000.
Neil Dickson’s feed pad will enable him to increase his herd size by 50 without having to hire more staff.
adding rubber matting once it is established and paid for itself. Dickson expects the feed pad to be in use by March. Cows will go to the pad directly after milking. The pad will allow the herd to increase from 450 to 500 Holsteins with eventual plans to reach 550. Dickson has been on the property for 20 years but underwent a major transformation eight years ago when he bought a neighbouring dairy farm. “We used to have 150 hectares and about 280 cows. To realise our ambition of being a successful dairy farm we needed to grow,” he said. “Combining the two farms was a huge job but it was a good investment. It makes it more enjoyable and challenging.” The property milked from two dairies for the first 15 months after the merger months before Neil decided to consolidate and use the new property’s 32-unit inside Rotary, forgoing his existing 26-a-side herringbone. The cows are producing 6500 litres per year but Dickson aims to increase that to 7000. “It’s not the most common style of dairy but it suits our needs,” Dickson
Who:
Neil Dickson Where:
Bookaar What:
Feed Pad
said. “It’s low maintenance and works well as a one-man show but it has plenty of room for vets to come in or for herd testing and preg testing. It gives us flexibility with labour and allows us to milk so many with one person.” Dickson had planned to build a new dairy but after the drought of 2007 was forced to defer those plans. “The drought put things on the backburner but we will slot it in in the future.” As part of its ongoing campaign to maximise returns and promote efficiencies, the farm is adjusting its calving by bringing forward its calving season from May to around March. “We’ll have more than 300 cows calve before the original calving date,” he said. “We’re looking to increase production any way we can.”
Despite a slow start to the season, Dickson said he eventually cut more silage than ever before and is impressed with the quality. “We’ve never cut silage that good before,” he said. It has produced 41% dry matter, 20.3% protein and 9.9 ME. The farm uses perennial ryegrass and occasional summer crops when needed. “The pastures are in really good shape so we won’t need summer crops this year,” Dickson said. “There’s no use doing them if you don’t need them.” He was tempted to pull back on feed and inputs with ongoing low prices and the slow early season but is pleased he resisted. “We’re always surrounded by financial pressures but if we took feed out we’d end up in a worse position. Our cows are fat as fiddles and the majority are in calf,” he said. “We will need feed for the earlier calving time,” he added. Dickson comes from a strong dairying background and is a third generation farmer. His family moved from the Bacchus Marsh district to a dairy farm near Terang in 1989 where his brother Bryan still farms.
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Dairy News AUSTRALIA december, 2012
20 // management
Simple effluent system lifts Steve and Sally
Steve and Sally Fallon on their Gippsland property last month, days before Sally gave birth to their third child.
Fallon have invested in a dairy effluent system that enables them to spread effluent across 80% of their Gippsland farm. The couple had previously made do with a PTO pump on their two pond system, attaching a 250m hose and travelling irrigator and spreading the effluent on the paddocks around the ponds. However, a successful application for State funding convinced them to upgrade and the benefits are already clear. The Fallons have owned the Willow Grove property for four years, having previously share farmed it with Steve’s parents before that. They run 260 cows on a milking area of 82ha. “The previous system wasn’t ideal,” Steve said. They decided to imple-
Who:
Steve and Sally Fallon Where:
Willow Grove What:
New effluent system
ment a simple two pond system as it enabled them to utilise the equipment they already owned. Funding covered 2/3 of the additional requirements. The waste water in the second pond is pumped every two to four weeks by an 80hp diesel pump through 100mm PVC pipe. The Fallons installed 400m of pipe down the middle of the property and a 350m hose and travelling
irrigator can be attached at certain points to cover most of the farm. They invested more in larger pipe and a larger pump to ensure their requirements would be met. Because of the size of the second pond, it is emptied every two weeks to four weeks. In winter, it is emptied on flat paddocks to prevent run-off. It takes about 30 minutes to set up the irrigator and pipe in a new paddock. Steve lets the cows walk up to the dairy, moves the irrigator, and by the time he is finished, the cows are at the shed. Every year, the Fallons hire a chopper to break up the solids in the first pond. This is then pushed through the PVC pipe by a solids pump, which he also hires, attached to the PTO on the tractor, and spread
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Dairy NewS AUSTRALIA december, 2012
management // 21
pasture growth
onto paddocks for crops. Water from the second pond is then flushed through the pipes to clean the solids out. “It covers 80% of the property and we have seen
extra growth already in 12 months,” Steve said. The system hasn’t been in place long enough for definitive results but soil tests have shown putting the top pond on a paddock
has made a significant difference. Effluent system expert Barrie Bradshaw, of the DPI in Ellinbank, said a system like this would pay for itself in three years through a reduction in fertiliser and increased pastures and fodder. Bradshaw said installing a two pond system like this, with all infrastructure, would cost about $60,000. “People baulk at a figure like that but a new rotary dairy would cost $1.6m,” he said. Bradshaw said when investing in a system, farmers needed to ensure
it would meet their needs. The main problem that occurs is when the diameter of pipes is insufficient. “People use two inch poly (48mm) but they don’t get sufficient pressure and flow through. “If you think you need 3 inch, put in 4 inch. You need to be able to match what you want to deliver with system you want to use. “Steve and Sally have a pump that needs a 80hp diesel engine. Their idea was to get down to the back paddock. He invested in infrastructure to enable
The Fallons run 260 cows on a milking area of 82 hectares.
him to use the system effectively.” Bradshaw said it does not take long to pay off an efficient system.
“If you put the first pond on a turnip crop, then the second pond on six weeks later, you could have a 15 tonne crop.
“If you grow a 15t crop on 6 hectares, that’s 90t of extra feed. You don’t have to buy 90t of grain which at $300/t costs $27,000.”
Quality feed non-negotiable rick bayne
Dairy farmers are being urged to wear the costs
of maintaining good quality feed for their cows, even when times are tight. Colac-based DPI dairy extension officer Nadine Markham told the Tactics for Tight Times field days in south-west Victoria that reducing feed inputs was a risky strategy. Markham said cutting back feed or not using enough supplements could lead to increased overgrazing and reduced pasture growth which would stop farmers from maximising profit. “If you pull back on feed you get hungry cows and profit drops,” she said. “Sometimes you have to accept profit is lower but you still have to feed your cows properly. Even in a year of low milk prices and high feed costs you still want your cows to be fully fed.” Markham said cows should be fed well enough to dilute fixed costs. “Higher production per cow dilutes down the fixed cost of maintaining the cow,” she said. “If the diet is properly balanced we get more milk out of cows as we put more feed into them, which dilutes the total cost of producing the milk.” “Every kilogram you feed above maintenance comes back to you in milk.” Markham said a 550kg Friesian during lactation needed 9kgDM or 100 MJME and would return 60 MJME. Markham said farmers should aim at using less than 40% imported feed. “In a good year, the more you can grow the less expensive feed you have to bring in, which means more profit,” she said. “You should grow and consume or conserve as much high quality pasture as is profitable and use supplements profitably to fill feed gaps and balance the diet. Fine tuning your system to make the most of your pasture base and feed system will increase farm profits. “If you use more than 40% imported feed you expose yourself to risk, especially in a bad season. Home-grown quality pasture is the cheapest source of feed if it is used well.” Markham urged farmers to take a long view of stocking rates based on milk price and feed cost outlook and to monitor their farm performance annually.
Is your effluent system meeting the mark? Australian dairy farmers are required by law to manage dairy effluent so that there is minimal nutrient loss off the farm.
A compliant system would: •
Capture all effluent generated from controlled areas such as sheds, feedpads and other areas where stock are held for extended periods and effectively move it to an appropriate management system.
•
Reuse the effluent to effectively utilise the water and nutrients on crops and pasture.
•
Manage all effluent so it does not pollute groundwater, surface water or create offsite odours and ensure that runoff containing effluent does not leave the boundary of your property.
Here are some common problems with effluent systems. They don’t mean your system is non-compliant, but they certainly increase the risk that your system isn’t meeting the mark. The overall effluent system has not been upgraded to reflect significant changes on the farm. A common mistake is to assume an existing effluent system can handle a new permanent feedpad or a dairy renovation/extension. Solid traps and sumps not cleaned regularly causing foreign material, debris and stones to enter the pump section. Ponds not drawn down to create storage capacity before late autumn. Winter rainfall means it is usually too wet to effectively use effluent so the pond offers storage. Ponds not episodically agitated or desludged leading to a loss of total capacity over the winter storage period. It also creates a build-up of salts and nutrients, leading to heavy crusting and poorer pond performance. Manure stockpiles are poorly located without appropriate bunding to control runoff. Any runoff into surface waters or from the property boundary would be deemed non-compliant. Travelling effluent irrigators not relocated regularly to spray nutrients to match pasture and crop requirements. Ponds poorly sited on permeable soils or in areas with high ground water compounding the risk of leaching and runoff. Ad hoc maintenance programs causing various components within the effluent system to fail, for example pumps, conveyance pipe, irrigators. Excessive water use at dairies and feedpads to remove manure. Higher water use requires larger effluent systems to cope with greater volumes. A well-designed and managed effluent system retains and reuses all effluent (and manure) on farm. This protects ground and surface waters and cuts fertiliser costs by providing valuable nutrients, organic matter and moisture to crops and pastures.
Visit Dairy Australia’s DairySAT management checklist at http://www.dairyingfortomorrow.com/index.php?id=93#. There is a lot of practical information at the Dairying for Tomorrow website. Visit http://www.dairyingfortomorrow.com. au/index.php?id=48 In early 2013 the Victorian Environment Protection Authority (EPA) will be conducting random audits of dairy shed effluent. if an EPA representative arrives, you can ask them to make an appointment and come back at a time that suits you both. The EPA representative can inspect without a landholder present. However, if the EPA is acting on a complaint and believes there is or is likely to be pollution occurring, you must show them the system at the time they arrive on your farm. The EPA may issue a warning, a remedial notice (called a Pollution Abatement Notice) or penalty notice (a Penalty Infringement Notice). An abatement notice identifies the problem, sets timelines (generally 28 days) and offers information on a remedy. If insufficient action is taken, the situation will escalate to an infringement notice ($6000 to $8000 fine) and then prosecution. The names of anyone served an abatement notice are available from the EPA website. The names of people/businesses served infringement notices are sent to media.
This is one of the many examples of the dairy service levy at work. For more information on this and other levy investments visit www.dairyaustralia.com.au
Dairy News AUSTRALIA december, 2012
22 // animal health
Right time to add corn RICK BAYNE
Dairy farmers
can enjoy the benefits of adding corn to their cow’s diets thanks to an improvement in the market. Ruminant nutritionist for Feedworks Australia, Ian Sawyer, told a series of Tactics for Tight Times focus on feeding workshops in western Victoria that corn is often at high premiums because it is in short supply. “That is not the case in 2012 so we can enjoy the benefits,” he said.
Australian corn production increased by 18.21% to 422,000 MT in 2011 and went through another slight increase in 2012. Sawyer said many producers speak anecdotally about the benefits of using corn grain leading into and during mating periods, but he warned that it was not a “silver bullet”. “Poorly fed cows fed corn for a short period won’t suddenly perform fertility miracles,” he said. “It is imperative that you feed your cows as much as possible, but corn
is a help to cows that are borderline.” Sawyer said there was sound fact in using corn as part of the diet. “The benefit of corn is about how and where it digests,” he said. Corn breaks down more slowly than wheat and only 50-55% ferments in the rumen. “Nearly half escapes the rumen bugs and yields up energy via digestion in the intestine,” Sawyer said. The steady breakdown takes pressure off the rumen, reduces the rate of breakdown of starch and delivers another energy
source. It is also more efficient as a glucose source which Sawyer said would lead to reproductive benefits. “A better energy and glucose status overall favours cycling and implantation of the new tiny foetus,” Sawyer said. Sawyer added there were milk production advantages from slow starch via corn that comes from more glucose and better fibre digestion. “There is a clear link between glucose and milk protein yield,” he said. “If we give the cow corn in her diet in
Ian Sawyer says corn can benefit cows if used correctly.
reasonable amounts, promote glucose yield, and get better fibre digestion that spares glucose, then the cow doesn’t need to use as much protein from her
blood to make glucose. That means we can put more into the protein yield in the vat.” Sawyer said farmers tend to use blends of corn with wheat or barley. He
said feeding 30% corn on 7kg could make some great outcomes. He said the corn should be rolled or ground finer than wheat or barley for optimum digestion.
Test milk vat for bugs before expansion Before purchasing cattle to expand
their herd, farmers should always test the bulk vat of the seller’s property for mastitis bugs. The test, known as a “milk PCR”, is readily available and can help farmers prevent potential widespread infection of their herd. Dr John Penry, who manages Dairy Australia’s Countdown project, advised farmers at three recent workshops in South Australia, hosted by DairySA. Penry said when purchasing animals it is important to check farmers aren’t importing Streptococcus agalactia
(Strep. Ag.). The milk PCR test has been available in Australia for over 12 months, through some milk companies, herd improvement centres and vets. The test uses, as an example, the routine milk vat sample collected by the tanker driver for BMCC analysis. In many instances it can be arranged through the company field staff or local vet. Because there was limited knowledge of how this test performed when used on bulk vat milk under Australian conditions, Countdown examined its application in a research project with
funding from the Gardiner Foundation. Penry said the results suggest it should be a convenient surveillance tool for Strep. ag. mastitis, if the results are available prior to purchasing cows. “The test is likely to be useful for managers of herds in an expansion phase who are unable to maintain a closed herd,” he said. “In this situation testing milk from the seller’s herd before purchase will help assess the risk of importing Strep. ag. infected cows. “The cost of the test is very small compared to the potential cost of importing cows infected
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with Strep. ag. and having it potentially spread to other cows in the herd.” Strep. ag. has long been a cause of mastitis in Australia dairy cows. Although it was believed to have become very uncommon, this bug is now more prevalent again. It lives in the teat canal or milk collecting ducts of infected cows and spreads between cows during the milking process. It can spread quite rapidly within a herd, resulting in an elevated bulk milk cell count (BMCC). The good news is
that Strep. ag. is one of the few mastitis bacteria that can be eliminated from a herd using the correct control options. Penry and another presenter, Dr Glen Beath, a vet and lecturer in dairy studies with TAFESA, said mastitis control and prevention requires a ‘whole of farm’ approach. Farmers were told: ■■ Preventing new infections is based on maintaining good teat health and reducing teat end exposure to bacterial contamination ■■ Teat spray is the
■■
■■
■■
number one way of maintaining good teat health and reducing teat end exposure to bacterial contamination Wearing gloves during milking is an important strategy in reducing teat end contamination Identification of the causative organism(s) is an important step in planning your strategies Culture of affected milk to identify the causative organism(s) should be carefully planned, using correct collection
■■
■■
technique and storage (freeze multiple samples for up to two months) In some circumstances application of antibiotic dry cow treatment first then teat sealant has also been shown to be effective in Mastitis treatment, control and prevention. Use expert advice (vet, CDDU advisor) to investigate mastitis problems, plan treatment, dry off and culling strategies, and develop control and prevention programs.
Dr John Perry (second from left) with Lower Lakes dairy farmers Mel and Nigel Treloar and Cathie Harvey.
Dairy NewS AUSTRALIA december, 2012
animal health // 23
Keep an eye on the kids (and bulls) this Christmas Well 2012 has flown by Using mop-up bulls is a and here we are at the end lottery – many would fail to of yet another year. pass a breeding soundness Dairy farmers have faced some real challenges examination. over the last year, with many curved balls thrown out” mum or dad on the out by Mother Nature. farm. Depending on what part Mop-up bulls can Over my years as a of the country you live introduce diseases to vet, I have seen many in, we have faced fires, your herd so be careful. instances of kids hurt floods or droughts. Comduring the holidays so I bine that with global ecoask you all to take extra nomic uncertainty and 2012 has been a tough year care. In my part of the world, for many. Christmas break is also the The dairy industry still time for putting the bulls has many bright points in with the herd to “mop to look forward to in 2013 up” those cows not pregand beyond. I think as global uncer- nant by AI. I have written before tainty resolves and the about the lottery this repdemand from developresents. Many dairy bulls ing economies for milk would fail to products pass a thorincreases, ough Vetthat we in erinary Bull AustraBreeding lia are well Soundness placed to Examinacontinue to tion (VBBSE). supply the Issues that world with animal health can cause quality, safe rob bonanno sub fertilproducts. ity or infertilChristity include abnormalities mas is a time for family to their reproductive and reflecting on the year “tackle”, lameness, conpast, but it is also a time formational or other for looking forward and health conditions. it can also be a very busy Introduced bulls may time of the year. Unfortunately, summer also represent a risk of introducing diseases holidays do not mean to your herd that could that work stops on a dairy create reproductive farm. The kids are home from school, and with that or other disasters. Problems like Pestivirus, comes the risk they may Johnes Disease and get injured in a farming STDs like Vibriosis or accident. Trichomoniasis often Quad bikes are one of the most dangerous things come into the farm when bulls are bought in from on a farm, but there are another herd. many potential dangers Talk to your dairy vet lurking on the average about a health and biosdairy farm so make sure ecurity plan that will prothat children are supertect you and the herd from vised, trained and take all safety precautions if help- introduced diseases and infertility in the bulls you ing out around the farm are buying. over the Christmas holiI wish all the readers of days. Dairy News Australia the Watch out for risks To register your interest go to safest, most prosperous as diverse as sunburn/ www.coopersanimalhealth.com.au/rotavec and happiest New Year sunstroke, snake bites, ever and the complements drowning and injuries ® Registered trademark. of the upcoming festive caused by livestock or season. machinery. • Rob Bonanno is the past Nothing would president of the Australian ruin your Christmas Cattle Veterinarians Assocelebrations more than ciation and a director of a serious injury to one of the Shepparton Veterinary yours, or an employee’s Clinic. children when “helping
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Dairy News AUSTRALIA december, 2012
24 // animal health
Level hooves trim lameness ANDREW SWALLOW
HOW LEVEL are your cows’ claws?
If any hoof has more than a 2mm differential between either outer or inner claw, then risk of lameness is increased, judging by the findings of a newly published study of three large-scale Canterbury farms. The study, reported in the November issue of the New Zealand Veterinary Journal, included 2695 cows. The authors found trimming to level claws delayed the onset of lameness but did not reduce incidence by the end of the season. “The effect seemed to be there for about 10 weeks,” report co-author Mark Bryant said. “The incidence was reduced in that first 70 days [after trimming] but after that there was no difference.” That’s not to say trimming to level uneven claws isn’t a worthwhile practice. Rather, farmers need to be aware hooves grow back and the benefit
may have a limited timeframe. Bryan’s a director of VetSouth, Winton, and was called in to help study instigators and fellow report authors Helwi Tacoma and Fred Hoekstra set up the work and analysis of resulting data. Cows were enrolled in the study in November 2009. All had calved more than a week, were not on antibiotics, and were grazing pasture between twice-aday milking. At the outset both hind feet on all cows were examined by trained operators, noting height differential between claws. Cows were then blocked by age and breed, and randomly assigned to treatment (ie trimming) or control groups. All trimming was done by the same experienced practitioner. Thereafter farm staff coached in identification and description of lameness lesions recorded incidence and treated as appropriate. By the end of the season at least
one incidence of lameness had been recorded in 10% of limbs, trimmed or not. Nearly 18% of untrimmed cows had no claw height differential at the outset. Incidence of lameness among these was 11.6% but among those with over a 4mm difference in claw height, incidence was 15.8%. Breed, age and claw height differential were all significant risk factors, but there was no significant interaction between them. Fewer Jerseys went lame, and four-year-olds had the lowest incidence; nine- and tenyear-olds were the highest. There was also a significant farm effect, with 7.1% incidence on one farm, but 11% and nearly 12% on the other two. Preliminary findings of the study were presented last year at an international conference on lame cattle in Rotorua. Bryan says it prompted some “robust discussion” and another look at the data, which lead to the NZVJ paper.
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Trials on 14 farms found pour-ons easier to use but less effective than oral drenches.
Oral drenches outstrip pour-ons – AgResearch A STUDY by AgResearch scientists shows ons have to be absorbed into an animal’s oral cattle drenches are far more effective bloodstream, and then re-circulated to than the equivalent pour-on or injectible be released into the gut tissue where the worms live. This is easier for an injectible products. In an article due soon in the interna- than for a pour-on product, as the latter has tional science journal Veterinary Parasi- to get through a hide, which has evolved to tology, Chris Miller and Dave Leathwick keep things out. “This became obvious when we meareport having measured how effective the same drench active (moxidectin) was when sured the amount of drug in the bloodgiven orally, as a pour-on or as an injectible. stream in the treated cattle: the levels were far higher in the animals They did trials on 14 New given injections than in those Zealand farms and say while treated with either of the other pour-ons and injectibles are two routes.” easier to use, they do not He says despite these give the same benefits. results, the oral drench was “Based on overseas data, still better at killing worms. I would not have been sur“We don’t know for sure why prised if the pour-on prodthis is the case, but some uct was generally less recent overseas work sugeffective than the other two gests that the oral drug does routes as there are issues not need to rely on absorption with drugs penetrating the and transport around the body skin and animals either lickDave Leathwick in order to reach worms living ing the drug off their own in the gut. backs or their neighbours’,” “Instead, the drug gets bound to matesays Leathwick. “We also thought the oral drug would rial in the gut and passes directly to the work pretty well, while injectible mac- organs where the worms live. It appears rocyclic lactones (the drug family which that this results in higher overall levels includes moxidectin, ivermectin, abamec- of drug reaching the target worms, hence tin etc.) are regarded as the gold standard higher efficacy. “What we have already proven is that when treating cattle parasites on a global using drugs with higher efficacy against basis.” He says when the results were analysed, worms lifts animal productivity, while the study confirmed how ineffective the killing more worms by using an effective pour-on product was, reducing the number drench reduces the selection pressure for of worm eggs shed in faeces by only about resistance to develop, promoting the sustainability of worm control.” 50%. Leathwick says follow-up studies “What came as a surprise, however, was that the injectible product performed no have confirmed that this is not unique to moxidectin and that other pour-on and better than the pour-on. “In comparison, the much cheaper oral injectible products were no more effective. “The next steps are to repeat the study product reduced worm egg output by over against different worm species and also 90%.” The parasite that survived the treat- develop techniques to measure drug conment was predominantly Cooperia, which centrations in the tissues where the worms on most farms showed resistance to these live.” He says there is four to five years of drugs – but not always, and the presence of resistance does not explain the difference research ahead to determine whether the research findings apply equally to all between the routes of administration. Leathwick says the results are prob- worm species, and to assess the likely ably related to how the drug reaches the implications for long-term, effective worm target (i.e. the worms) after it is adminis- control should farmers continue to use tered. Drugs given as injections or pour- pour-on or injectible products.
Dairy NewS AUSTRALIA december, 2012
idw preview // 25
IDW Trade and Machinery Field Days continue to grow More than 60 exhibitors have
already registered for the International Dairy Week Trade and Machinery Field Days, building on the success of the inaugural event last year. Long known for showcasing the best of dairy breeds through its National Shows and sales, IDW’s expanded format caters more for commercial dairy farmers, showcasing a wide range of dairy equipment and machinery. It will also feature a series of free information seminars focused on topical issues. The 22nd annual IDW will be held
in Tatura from January 20-25, with the Trade and Machinery Field Days open on January 24-25. The information seminars will be held on the hour from 9am on January 24-25. The field days will include the latest in milking machinery, tractors, mowers, mulchers, airseeders and planters, hay, silage and fodder equipment, agronomy and farming advice, pastures, seed and fertilisers, animal health treatments, flooring equipment, pumps and water systems, irrigation, pipes and fittings, and calf rearing products. IDW director Brian Leslie said the
committee has acted on feedback from farmers to ensure the speaker line-up is relevant to their needs. “A great line up of speakers will be coming to present, with a few companies taking the opportunity also to launch some exciting innovations,” Leslie said. “You can stay for all, or come and go as you are interested.” Topics will cover new innovations for improving teat health, genomics, electronic heat detection systems, mastitis prevention, advice on free stall shed design, people development, building dairy infrastructure and using top genetics in commercial herds. Progeny tours will also be conducted by ABS on site, with Aussie Reds, Semex, Genetics Australia and World Wide Sires providing visitors the chance to see firsthand quality cattle and genetics. An open day will also be held by Coomboona Holsteins with a TAG II Sale also happening on property during the day. An impressive line-up of international judges has been assembled to
Win a weekend away Dairy News Australia is proud to be the official sponsor of the IDW
Trade and Machinery Field Days. As part of our sponsorship, we are providing a trip away for two. Simply collect a form from the Dairy News Australia site near the entrance gate and collect six stamps from exhibitors. Return the completed form to our site and go in the running for a weekend away for two valued at $1000. Dairy News Australia editor Stephen Cooke said with at least 60 exhibitors already registered, the Trade and Machinery Field Days would provide something for every visitor. The seminars, also free of charge, would also be well worth visiting. “The IDW committee should be commended for organising a quality line-up of speakers, as well as a field day packed with variety and innovation. “We look forward to seeing all visitors at our site.”
judge the dairy cattle. Leslie said there was no greater Australian event than IDW for dairy cattle breeders and supporters. “There will be a great line-up of international judges to take to the ring to judge a fantastic array of Australian cattle from re-known and new breeders around Australia,” Leslie said. “IDW is recognised as the third largest dairy cattle show in the world and a win or a place at International Dairy Week is a marketing plus and I encourage all owners to enter. “With the fantastic support of all IDW sponsors we are able to provide an expo event second to none of its kind in the Southern Hemisphere and I am again expecting a large contingent of international visitors to take in the best of the Australian dairy industry.” Entries have also been strong for the All Breeds Youth Show. “We expect entries to be strong for 2013 particularly for the Youth Show,
with its entries steadily increasing over the last few years,” Leslie said. “At the heart of all in the industry is the development of the next generation and I am thrilled with the support given by exhibitors and sponsors ABS Australia and Ridley Dairy Feeds. “The Youth Show has always been a part of IDW and we are keen to build this event in the years to come.” IDW takes place at Tatura Park, Tatura, Victoria from January 21-24. Entry to all events is free. For more information, visit www.internationaldairyweek.com.au for the full program.
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Dairy News AUSTRALIA december, 2012
26 // idw preview
Wipe out weeds in one pass The Rotowiper
Rotowiper weedwipers apply herbicide on the underside of the leaves and stem.
range of weedwipers and the Lady Muck outdoor vacuum will feature on the Eastern Spreaders site at the IDW Trade and Machinery Field Days. Eastern Spreaders, based in Kerang, Vic, have been appointed distribu-
tors of both products. Rotowiper has been developed and proven over a period of 23 years in New Zealand and is exported around the globe. It has a unique rotating drum system which applies the herbicide directly to the most
receptive parts of the targeted plant, being the underside of the leaves and stem. With the exception of rushes only one application pass is required. The machines are supplied in both trailing and tractor-mount units in a variety of sizes and are height adjustable to target the weeds and leave pasture and crop untouched. Rotowiper ensures the most efficient use of chemical and does away with the problem of trying to spray in windy conditions. Another product supplied by Rotowiper is the 350 litre Lady Muck outdoor vacuum which is ideal for cleaning up animal waste in general and cleaning out water troughs. It features a strong and durable plastic tank and is powered by a Stihl 3Kw motor, which can be removed from the unit and used as a standard blower. The Marshall multispread range of all-purpose fertiliser spreaders has also seen a continual development with the demand for wider spreading patterns to match increasing boom spray widths. Marshall has this year
released their “D” type spinner system which can achieve spreading widths of up to 36m for granular products and 14m for lime and gypsum. All testing during the development of the “D” type spinners was carried out to Australian Industry standards. The wide spread spinners will be available on both PTO and hydraulic drive new models. Eastern Spreaders also distribute the range of NDE Vertical Feedmixers which fill the needs of the farmer who requires a strong, efficient mixer with the versatility to handle all types of feed. With large single or dual vertical augers and 24” carbide tipped knives the NDE quickly cuts large bales and incorporates grain and seeds thoroughly. With either front door or side door feedout and side elevators the NDE can unload onto feed pads or into troughs, feeders or over fences. Eastern Spreaders are distributors for a range of other equipment including: Boomerang Twin Bale Feeders, John Berends Implements, Crump fertiliser spreaders, New Concept Roller Mills, Yeomans Plows and Faber heavy duty toolboxes.
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CHECK OUT THE LATEST NEWS AND INFORMATION AT www.dairynewsaustralia.com.au
Dairy NewS AUSTRALIA december, 2012
idw preview // 27
New vaccine will fight calf scours AUSTRALIAN dairy
farmers will soon have access to a vaccine to fight against one of the most common causes of calf scours. Coopers Animal Health has registered the vaccine Rotavec Corona and said it was the only calf scour vaccine on the Australian market vaccinating against rotavirus, coronavirus and E coli. Coopers in conjunction with the Kyabram and Tatura veterinary clinics will have a stand at International Dairy Week to raise awareness of calf scours. The attending vet clinics will be available to discuss the questions on calf scours management before and after calving and the use of the new vaccine in farm scours planning activities. This gives farmers a chance to hear from local experts on key calf scours issues specific to the dairy producers own opera-
tion and learn more about calves nationally and found 96% had rotavirus changes they can make present on the property to their calving management to improve their calf – a major disease causing pathogen of scours that health. currently has no prevenNeo-natal calf diartion – making managerhoea (calf scours) is ment more difficult. expected to cost the AusThe often forgottralian dairy industry $52 ten cost of million over calf scours the next is a slower year – or $26 Neo-natal calf growth rate for every diarrhoea for calves dairy cow or that do heifer based (calf scours) will cost the recover. on indusThese calves try statistics industry can strug– making it $52m in lost gle with one of the production depressed major econext year. growth rates nomic and a result production of intestichallenges nal damage compared to faced by dairy producers. healthy animals. This is Scouring calves are at something professional an increased risk during calf rearer Simon Gleeson, calving in hot summer from Timboon in south months, with problems western Victoria, says he of severe dehydration often sees in his operation. increased due to higher “We take heifers from temperatures. weaning up to two years A recent study by University of Sydney research- of age and, of the 3000 per year that we handle, ers sampled scouring
often we see the major setback animals have had as a result of scours,” Mr Gleeson said. “Their growth rates are diminished, immune systems become susceptible to other bugs and they are difficult to rear into an impressive heifer because of the scours setback. “Given the value of calves, it would be a substantial benefit to all of our clients if there was an effective control for rotavirus in particular, so survival and progress weren’t so dependent on treatments alone.” Rotavirus is an issue not just because of its potential to cause scours, but because it often reduces calf immunity and allows other pathogens such as cryptosporidium, E.coli and coronavirus to flourish, causing further illness in the calf. Kathryn Davis, program manager animal health and fertility, Dairy Australia, said that scours
The often forgotten cost of calf scours is a slower growth rate for calves that do recover.
is the number one calf disease that farmers report to the organisation. “Scours is a very common and serious disease for calves and is
not limited to one area or region, the feedback we’ve received is that it is affecting all dairy regions,” Dr Davis said. “What we hear from
farmers and vets who are testing for pathogens causing calf scours is that there is a lot of rotavirus coming through in the results.”
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Dairy News AUSTRALIA december, 2012
28 // idw preview
Global experts talk shop Wednesday, january 23 9am
“New innovations for improving teat health and greater milk production” Guest Speaker – Derek Davies, Export Sales Manager – Dairy with Avon Rubber Derek Davies has a wealth of experience in the dairy industry from 1970 to date, from hands on installation of milking equipment, milk processing and packaging equipment, sales area management, dealer management, sales and marketing and exhibitions, to company management and human resources. Milkrite is a trading name of Avon Rubber and currently manufacture 60% of the worldwide requirement of liners. In 2008, Milk-Rite became the largest global selling brand of Dairy liners 10am
What’s Coming Next for Genomics Guest Speaker - Dr Ben Hayes Dr Ben Hayes has a wide ranging career designing genetic improvement programs for beef cattle, sheep and Atlantic salmon. However, his focus for the past five years has been the development of genomic selection methods, particularly for dairy cattle. Recent work has addressed the challenges of optimal breeding program design with genomic selection, incorporating whole genome sequence information into genomic selection in the 1000 bull genomes project, as well as improving feed conversion of dairy cattle. Dr Hayes currently leads the dairy cattle genetics program in the Dairy Futures Cooperative Research Centre. Midday
Making Better informed and More Profitable AI and Reproduction Decisions using MooMonitor (Also speaking, Jan 24, 10am)
Guest Speaker – Kevin Jorgensen Kevin Jorgensen currently serves as the Director of Dairy Programs for the East Central regions at Select Sires in the United States. His responsibilities include managing the Evaluator and Select RePro Solutions staff, consulting with clients as well as conducting Select Mating Services work for herds mainly over 400 cows. Jorgensen also works with herds on business strategies relating mainly to heifer populations and profitability. Along with several other members of the Select Sires team, he markets and services the Select Detect (MooMonitor) heat detection system. Additionally, his knowledge and expertise is used in working with international tours for World Wide Sires.
that will dramatically change the way our clients look at developing their own operation’s genetic strategies,” says Brad Sayles, Semex Vice President Global Marketing.
2pm
Mastitis in the Modern Australian Dairy Cow Guest Speaker - Dr Neil Charman Neil Charman has worked as a dairy veterinarian for most of his career and he completed his Masters in Dairy Medicine in 1995 and his MBA in 2006. He has been working for Pfizer in the area of Clinical Development since 2007 where his clinical research has been strongly focused on positive outcomes for dairy cattle and the dairy industry.
1pm
Immunity+ Sires: Offering Dairymen a Genetic Option for Natural Disease Resistance Guest Speaker – John McDougall All dairy producers want more healthy cows. The challenge has been that until today, health traits have been very difficult to improve genetically. For over a decade, Semex has been supporting immune response research at the University of Guelph in Canada under the direction of Dr Bonnie Mallard, BSc (Agr), MSc, PhD, Professor Immunogenetics, Department of Pathobiology. This research has resulted in a new product at Semex known as Immunity+ sires. With heritability comparable to productivity traits, Semex’s Immunity+ sires will produce cattle with a broad based resistance to the bacterial and viral based pathogens that cattle are exposed to on a daily basis. Additionally, their daughters will produce colostrum that passes on more antibodies and they will respond better to vaccination protocols. “This is an industry first. And, Semex is proud to exclusively offer a product
3pm
7 Mistakes to Avoid in Designing Free Stall Cattle Housing Guest Speaker – Mike Creek Mike has had 30 years’ experience in the dairy industry, starting in the AI industry for 12 years, six years of dairy herd management, last 12 years dairy equipment Industry, with focus on the design and building of dairy cattle housing and milking facilities. Have helped designed and build units, ranging from specialised units for pedigreed cows, to large free stall barns for commercial dairies, and barns for robotic milking. Currently Mike provides support to GEA Total Solutions on Cattle Housing units internationally.
Neil works with the Farm Group, which is responsible for managing the way Dairy Australia invests in farm related research, development and change. He is responsible for managing Dairy Australia’s investments in extension across the industry’s eight supply regions, and The People in Dairy program. Prior to starting with Dairy Australia in June this year Neil worked with Fonterra Australia’s milk supply team, and prior to that with Bonlac Foods as a field officer in Northern Victoria. Over 15 years his roles in milk supply involved working with farmers directly and managing teams who were involved in supporting farmers and their businesses. Driven by achieving positive outcomes for farmers and the industry, Webster is looking forward to continuing to make an impact in his role with Dairy Australia. He will discuss extension tools models and people development resources including the people in dairy website which can support farmers in the businesses Thursday, january 24 10am
Building Dairy Infrastructure in Challenging Environments Guest Speaker – Dr Ed Koppel Based in the USA, Dr Edward Koppel, a veterinarian specialising in animal nutrition, is founding president of Dairy Services International, a global consultancy providing unique expertise in the custom design of high yielding dairy cattle, milking parlours and related infrastructure, and milk production operation of large-scale dairy production systems. Dr Koppel has led the development and project management of 17 large scale dairy herd and dairy farm projects over the past 15 years in countries 4pm Extension & People Development in including Canada, Chile, Germany, India, Kuwait, Mexico, Oman, Saudi the Dairy Industry Arabia, Turkey, United Kingdom, Guest Speaker - Neil Webster Neil Webster is Dairy Australia’s Pro- United States, and Uruguay. Dr Koppel has overseen the expangram Manager – Extension and Change.
sion of dairy herds from 2000 to over 45,000 milking cows. With increasing scale these projects have delivered improvements in per head milk productivity by over 50%, reduced the incidence of mastitis by 90%, and doubled successful pregnancy rates. He brings to projects the technology, genetic selection processes, and best management practice in animal welfare, milk productivity, and farm health practices to deliver the commercial and environmental sustainability required of modern large-scale cattle raising and dairy farming operations. Midday
Using Top Genetics as a Revenue Generator for Commercial Herds Guest Speaker - Tim Abbott Tim Abbott is no stranger to the dairy world. A 1987 graduate of the University of Vermont in Dairy Cattle Genetics, Abbott worked for American Jersey Cattle Association for five years as field man, Director of Field Services and Manager of Jersey Marketing Service. He began work for ABS Global as regional sire analyst in 1992 and continued covering different parts of the US for ABS for 15 years. In 2007, he took over as General Manager of ABS Canada and St. Jacobs ABC and ran all operations of ABS’ Canadian business. In June 2011, Tim and his wife, Sharyn, purchased the company he was running, St Jacobs ABC, from the group of cooperative members that owned it. Today, St. Jacobs samples 15 bulls per year, mostly Holstein and RW Holstein but a few Jerseys. St. Jacobs unit sales have grown from 50,000 units to 500,000 units in the past decade. Through his business, Abbott currently owns 100 head of elite females and has recently worked with cows like Tri Day Ashlyn, Talent Barbara and Dundee Hezbollah. The STJ business is beginning to market embryos around the world, has had several successful sales in the US and is also planning to have an Embryo Silent Auction, in conjunction with ABS Australia, at IDW.
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Dairy NewS AUSTRALIA december, 2012
idw preview // 29
The latest in heat detection Genetics Australia, in conjunction with
tor, rather than just a heat detector, and will highlight DairyKing, will launch the cows that have low activMooMonitor, an advanced ity, are lame, cystic or have other problems. cow activity monitoring “MooMonitor not system, at its site at Interonly detects heat but the national Dairy Week. hour of onset of oestrus Genetics Australia has in order that farmers can recently introduced electronic heat detection to its inseminate at the optimum time for conceprange of products, giving tion.” a new alternative to the Bentley said because more traditional methods of the outstanding qualof FIL tail paint or Estroity of activity monitortect patches. ing, MooMonitor has been GA spokesman Julian reported by users to accuBentley said electronic rately detect 95% of cows heat detection would on heat. become more common “In back to back “In back to tests MooMonitor was shown to be back tests more accurate MooMonitor was 25% than another elecshown to be 25% tronic heat detecmore accurate tion system on the market.” than another MooMonitor gives electronic heat the best quality infordetection system mation in the most on the market.” user friendly way, Bentley said. “Fully set up it will on farms over the coming identify which cows are years. in heat, draft them out “The amount of manof the herd at milking agement information and put the information you receive allows you to make more accurate, more on the internet so your AI provider knows they timely and more reliable are ready. It is the most breeding decisions, ultifunctional heat detection mately allowing you to system available in Ausfarm more efficiently and tralia.” profitably,” Bentley said. The use and mainteHe said it relieves sevnance of the MooMonieral problems dairy farms are finding more and more tor is also good. It is the only activity monitor on difficult to fix, including: ■■ Accurate heat detection the market where you can change the batteries, and in large herds ■■ Finding labour skilled has a radio transmitter in the collar so animals don’t in heat detection ■■ Managing cows for AI need to be scanned for information. in a timely fashion ■■ Detecting cystic cows “The interesting part ■■ Detecting non cycling of the radio transmission is that it works two cows ■■ Keeping a tight calving ways – you can tell the collars when to download, pattern and even switch them off “As a farmer owned cooperative, helping farm- remotely to save battery life,” Bentley said. ers is Genetics Australia’s “There are many farmmission. We researched how to both improve heat ers keen to hear more about MooMonitor and detection and reduce how it could work on their labour requirements. farms,” Bentley said. “The product we “We’re extremely forfound – in Ireland – was tunate to have Kevin Jorthe MooMonitor. This gensen from Select Sires is the most accurate cow in the USA coming over activity monitor on the during International Dairy market and is specifically Week and presenting semdesigned to work on pasinars on this product. ture based cows. “Kevin is a reproduc“It is an activity moni-
tion specialist as well as being on the USA qualified Holstein judges list. “In the USA Moo Monitor is sold as ‘Select Detect’ and Kevin installs and supports systems
across America.” For further information, call in at the Genetics Australia stand at the IDW. Jorgensen will present seminars on MooMonitor during the week.
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Dairy News AUSTRALIA december, 2012
30 // idw preview
New traits for International flavour in the judging ring disease Farmers are now able to choose sires that have a higher natural level of disease resistance. Bulls will then be able to pass this level of disease resistance onto their progeny in the same way they do with other inherited traits, thanks to research in Canada at the University of Guelph. The heritability of the immune response is similar to that for milk production at around 25%, and is much higher than most other traits associated with health or fertility. Semex will launch a range of proven and genomic sires identified as having high immunity under a new Immunity+ brand. Semex will launch this new product at IDW on Wednesday, January 23 at 1 pm as part of the seminar program. John McDougall of Semex Alliance, Canada, will speak. The company says that the new technology “marks a breakthrough in improving disease resistance in cattle which will reduce the use of remedial medication”.
At the core of this latest genetic breakthrough is High Immune Response (HIR) technology, which identifies cows with different levels of immune response to diseases such as mastitis, metritis, ketosis, retained placenta and Johne’s diseases. Researchers found that High Immune Responder cows (HIRs) have disease levels that are two to four times lower than those that are Low Immune Responders (LIRs), with the HIRs cows requiring less therapeutic intervention as a result. Around 10% of bulls are believed to have genes to be classed as HIRs. HIRs have a “more balanced immune response capable of defending the cow against a more diverse range of pathogens”, according to Dr Bonnie Mallard, Professor of Immunogenetics at Guelph, who spearheaded the research. The test is unique to Semex for the next decade as the company has invested several hundreds of thousands of dollars in the research in return for the exclusivity.
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will host a number of international judges to take control of the ring and view the best of Australian dairy cattle in the six breeds on show from January 21-24. The judge of the 2013 National Youth Show will be Graham McPhee, a third generation dairy farmer who grew up on the South Coast of NSW. The last 20 years have seen McPhee successfully develop and promote the Hillview Park name, recently being awarded one of the few 2nd Master Breeder awards in Australia. Molly Sloan will judge the Brown Swiss. Molly grew up on her family’s registered Holstein Farm, Florendale Holsteins, in Northern Illinois in the USA. She is the only person in the USA to win oral reasons at four National Collegiate Dairy Judging Contests. Molly and her husband Matt now live in Columbus, Wisconsin. Iwan Morgan, judge of the Ayrshires, farms at home in Wales in partnership with his parents, farming 250 acres with 140 Holsteins and 40 Jerseys, with 150 young stock.
Breeding profitable long living cows from proven cow families and introducing new and exciting families is the aim. T he Roxy, Lustre and Debutant Rae in the Holsteins and the Grove, Rumour and Gorgeous in the Jerseys are prominent families in the herd at the moment. Ashley Flemming, of Northern Ireland, will judge the Ayrshires, having judged the Jerseys in 2009. The Potterswalls Herd owned by the Flemming Family now totals 200 head with about 100 cows in milk. The Potterswalls Prefix is synonymous with the Jersey Breed throughout the UK and further afield. Jane Steel of Scotland will judge the Guernseys. She has been immersed in the dairy industry from an early age, being brought up on a dairy farm to her job as a livestock photographer. Her family milk pedigree Holstein and Jersey cows near Loch Lomond in Scotland where Jane is actively involved and has her own herd of cattle there under the ‘Lomond’ prefix enjoying numerous show and sale ring success. Johannes van Eeden, of South
Africa, will judge the Jerseys. Since 1989 he has visited more than 60 countries worldwide to study the Jersey cow, management systems, judge shows and give talks. He is especially interested in the marketing of Jersey branded dairy products. In 1997 he was elected as second vice-president of the WJCB and in 2002 at the conference in Denmark as the President. David Stalker of New Zealand will judge the Holsteins. He has been involved in the registered cattle industry all his life. He was born at Lincoln and raised on his parents Lucernvale Holstein stud at Greenpark, south of Christchurch. David followed both his father and grandfather as a Senior Holstein judge. He has judged at most of New Zealand’s major Holstein shows, including the New Zealand Royal Show. David has also been a regular visitor to Australia where he has judged at several major shows including the Holsteins at Melbourne and Brisbane Royals, the New South Wales State Holstein Show, and the Ayrshire Show at International Dairy Week.
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Dairy NewS AUSTRALIA december, 2012
machinery & products // 31
Two stage system solves effluent problem “Our effluent management system has improved 10-fold,” says Brett Dixon. “The waste doesn’t even get to the previous recycling system; it just gets turned into a shandy and goes straight to the channel.” Brett and Kylie Dixon milk up to 630 cows at Byrneside, between Stanhope and Shepparton in Victoria’s Goulburn working clothes Valley. They are milking off 270ha and chris dingle the cows calve three times a year. When we called in on the last day of October, they were drying off the summer herd, sion for transfer. He then has a Houle and had 550 milkers “at the most”. Brett booster pump to transfer the effluent to grew up on the farm which now encom- his irrigation channels where it is mixed passes 809ha over five different prop- in with the water to flood the paddocks. This system allows him to empty his erties. He explained there were real issues dam as needed relatively quickly withwith recycling their manure from the out having to depend on a contractor effluent pond. “We needed to manage or having the expense of hiring someour effluent better. We were just letting one in. The Houle equipment is distributed it drain into a recycling system and then pumping through a 6” pump for irriga- by GEA Farm Technologies, previously tion. It was too thick and kept blocking better known as Westfalia-Surge. The Houle Articulated Screw Agitaup the irrigation pipes,” he said. “Plus the effluent pond that we have tor is a tractor three-point-linkage unit designed to rapidly is not big enough, homogenise and chop it’s possibly only 1 effluent in the pit. The to 1.5MG, we had ability to articulate to pump out during the agitation screw is winter and it was a particular feature of too thick on the padthe machine. docks.” The screw design So in April of provides high capacthis year they set ity agitation. When up a method to Who: Brett and Kylie Dixon the screw is pointed bypass the irrigaWhere: down it agitates the tion system, and in Byrneside bottom sediments the process getting What: and sludge on the rid of all the sediEffluent disposal pond floor. When ment in the effluent the screw is pointed dam, particularly the up it blasts through couch grass that was debris and crust. virtually taking over the surface of the surface By moving the screw parallel to the dam. Brett set up a two stage system, using surface a flow is created in the pond to a Houle 8.1m long, articulated screw agi- encourage material to flow through the tator to stir up the effluent dam and get main agitation tunnel for better agitaall the solids broken up and into suspen- tion. Brett and Kylie Dixon milk up to 630 cows at Byrneside, between Stanhope and Shepparton in Victoria’s Goulburn Valley.
Brett Dixon with his Houle 8.1m long articulated screw agitator.
GEA offers an optional wheels and a towbar kit for easy transportation to and from the dam. Any doubts that Brett had about the agitator being able to handle the amount of vegetation and clumps in the effluent pond were quickly dispelled as it quickly chopped up and spread couch grass that he reckoned he could walk on across half the pond at one stage. The GEA Houle booster pump is a high pressure and high flow pump capable of delivering up to 150psi pressure, and needs a tractor of over 110kW. They have New Holland tractors to
The new agitator and booster pump enables Brett to efficiently drain and spread his effluent pond.
work the agitator and pump; a T6050 Delta, a TSA110 and a T6010 Plus. “We use whatever is available at the time,” said Brett, “but the 6010 Plus is better on the stirrer because it has a front end loader, the others tend to lift at the front and you have to be careful.” Currently they use the agitator and pump about every 10 weeks. “We wait until the dam’s full, coinciding with the irrigation. Generally we run the agitator as long as the pump is going, about 13 to 14 hours as we ‘shandy it down’ with the irrigation water.” Brett purchased the gear through the local GEA dealership, Dairy Technology Services at Kyabram, and has been impressed with their service. “We are still learning the best way to manage the effluent, and we have been really happy with the back-up from GEA and DTS personnel. We had an early problem and they were up here all the time to sort it out.”
They are meticulous about keeping the gear clean after each use and grease it as soon as they have finished using it. Brett and Kylie have been long-time users of GEA/Westfalia equipment. They milk in a 54 unit rotary with all Westfalia gear including automatic cluster removers and milk meters, and are about to install the new GEA IQ clusters. “We are definitely not looking at expanding the dairy further,” Brett remarked about future plans. “We struggle with labour like most farms. We want to improve our operation – and that means improving the cows. We are 14% up on last year’s production with fewer cows. The milk meters help in selecting the cull cows – we don’t carry poor cows.” • 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
Dairy News AUSTRALIA december, 2012
32 // machinery & products
New cover prolongs feed table life DeLaval has introduced a new product to prolong the life of feed tables. Company spokesperson Katrina Lee said both silage acid and saliva are extremely aggressive in their action on concrete feed tables, resulting in the destruction of the feed table surface over a number of years. This destruction leads to poor hygiene as the feed table surface is hard to keep clean and also pockets are created where bacteria will thrive, she said. “This can impact on your cows’ health and consequently their milk production.” Lee said the product name sums up its application – it covers the feed table, with a high quality PVC roll. “This is no ordinary PVC – the material used is a unique type, patented and uses Bio-orientation
Performance boost in Kubota’s new ‘L’ models Kubota Tractor Australia recently released new
tractor models to its Australian dealer network. These new L4600 tractors deliver extra horsepower providing superior and efficient performance. Both models are equipped with either a gear drive or a three range hydrostatic transmission and a large 48 litre fuel tank, providing excellent efficiency and the ability to work longer. According to Kubota product manager Michael Hilleard, the 46 horsepower L4600 tractors offer exceptional value to customers with features including deluxe styling, new operator control features and performance matched loader and backhoe attachments. Equipped with a three point hitch with large capacity hydraulic pump, the new L series tractors provide powerful lifting for a wide range of implements. Kubota’s new LA714AU-C quick attach/detach front end loader and BH92 backhoe are performance matched to the L series tractors. The level lift LA714AU-C loader features a curved boom design and boasts exceptional lifting power and bucket breakout force. The BH92 backhoe also offers a curved boom providing easy operation and visibility paired with an exceptional digging depth of 2782mm. An optional hydraulic thumb further adds to its versatility. The BH92 backhoe is quick attach/detach allowing the tractors to quickly convert back to a conventional tractor with three point linkage. Once the three point linkage is fitted a wide range of implements can then be fitted. The new L4600 tractors feature modern, deluxe styling including sloped metal hood and fenders for a sleek look that offers high visibility. The slanted hood provides a great field of vision helpful for front end loader operations while the metal fenders and foldable roll over protective structure offer maximum protection and safety. The contoured suspension seat is ergonomically designed to reduce fatigue, even after long work days.
ng t Introduci
AUTOMATIC BALE
loading on Kuhn’s RW 1600 C round-bale wrapper allows the tractor driver to keep his hands on the wheel – no buttons to press – while the machine sees to bale loading. The trailed turntable wrapper has the mak-
er’s integrated Autoload function as standard to increase operating efficiencies when handling bales of 1200mm x 10001500mm (W x D) and up to 1200kg. New electronics package, in combination with the Autoload, are said to put the RW 1600 C
MAXIFEEDER
NEW MID-RANGE FEEDER
Cows thrive on DeLaval’s feed table coverage as they eat all the food that is presented to them and lick the table clean.
and mixer wagon traffic and the aluminum profiles may be recessed into the ground as extra protection from scrapers or pushers. “As right-angled corners tend to trap feed, corner profiles are used against right-angle feed table walls to keep this problem to a minimum.” Full instructions are
provided along with an installation video, allowing farmers to install this product themselves, thus helping to keep costs down. The feed table cover is best installed at around 20°C as this enables the rolls to be unrolled easily and the cover will then lie flat to facilitate installa-
tion with the aluminium profiles. Rolls are available in 5, 10 and 15 metre lengths, keeping leftover material to a minimum, and two widths of 1 and 1.2 metres. No curing time is required, so the feed table cover is ready for use as soon as the installation is complete.
Both hands on the wheel while bales load
Tel. 1800 334 653 or visit www.kubota.com.au
n ralia Aust d and ne desig ctured. fa manu he
technology. “It gives extreme mechanical resistance that is three times more resistant to impact and wear than classic PVC material on the market.” Cows are sensitive to colour so the feed table coverage is green. “The special BI-stretch technology is free of any softening agents and Bisphenol, which leads to the first step food approval level in France, where this product is manufactured,” Lee said. “Because of the special BI-stretch technology, this special PVC material will stay flexible even under sun exposure. It is also frost resistant and has high acid and alkali chemical resistance.” Lee said the product can be used in new installations or to upgrade old, rough, degraded feed tables. “The feed table cover can withstand the tractor
1400
$
+ GST
The new mid-range feeder from MAXI-FEEDER shares many of the features of our top selling large feeder.
❱❱ Will feed 40 cows AD/LIB. ❱❱ Self cleaning (Just raise with loader). ❱❱ No dead areas (Cattle can reach across). ❱❱ Will suit yearling cows and bulls. ❱❱ Strong enough to lift and carry large bales ❱❱ Can easily be fitted with a weatherproof cover.
Call: 03 5859 0592 or 0428 585 573 www.maxifeeder.blogspot.com
among the fastest singlestretcher turntable wrappers on the market. Autoload automatically picks up a bale with the loading arm and puts it on the wrapping table without any action by the driver; he simply keeps driving – no intervention to load the bale. Picking up a second bale with the loading arm during wrapping is also possible; the bale will be picked up and held halfway to the wrapping position. When the wrapping process is ready the waiting bale automatically loads further on to the wrapping table. Kuhn says strong design and low table height, and standard large wheels at the rear of the machine, avoid the need for an active fall damper. This removes one step in the normal process and allows the bale to be unloaded on the move, thereby increasing the overall capacity significantly.
With the bale weight towards the tractor, slippage and grip problems are averted on slopes, the company says. New electronics are said to improve functionality, ergonomics, safety and capacity. The machine is controlled with an easyto-operate and automatic computer with integrated joystick. The process can be interrupted and started at any time with a play/ pause function. Full control of the process prevents operator mistakes
that can lead to machine breakages. The RW 1600 C has Kuhn’s 750mm aluminium pre-stretchers with cone-shaped outer ends, automatic film cutter and storage for up to six spare film rolls. The operator can easily and quickly adjust the number of film layers applied to each bale. The film is pre-stretched by a standard setting of 70% to maximise film coverage and reduce usage. Tel. 0800 585 007 www.kuhn.co.nz
Dairy NewS AUSTRALIA december, 2012
machinery & products // 33
Insecticide protects Brassica from diamondback moths Dairy farmers are set to see significant cost savings thanks to two new products from Dow AgroSciences that will make it possible for farmers to grow forage brassica crops free from pests like diamondback moth and aphids. Success NEO Insecticide from Dow AgroSciences was already registered for use in fruiting vegetables, bananas, cucurbits and leafy, legume and root and tuber vegetables as well as stem and stalk vegetables and culinary herbs. Its registration for use in forage brassicas comes following farmer demand for an alternative to pyrethroids and organophosphates, which Dow said was largely ineffective against diamondback moth and harmful to beneficial insects. “Diamondback moth is resistant to most of the current chemical options including synthetic pyrethroids and organophosphates so an alternative was desperately needed,” said Dow business manager for insecticides, John Gilmour. “A lot of dairy farmers had no choice but to stop growing the crop because the moths actually lay their eggs on the emerging plants, with the larvae burrowing and eating
the growing points,” said Gilmour. “Even with just moderate pest pressure, diamondback moth can wipe out an entire crop within a week of emergence. With the influx of diamondback moth expected at any time, the registration of Success NEO is highly anticipated by farmers.” Success NEO is also a “soft” insecticide, allowing dairy farmers to minimise the impact of the larvae while protecting the beneficial insect population. When applied as the diamondback moth larvae emerge from within the leaf and begin attacking the growing point, Success NEO protects the crop while populations of beneficial insects build up to levels where they can naturally control the pest. The second product, Transform, is expected to be approved in mid-2013. Transform contains sulfoxaflor, an active ingredient with a completely new mode of action –which gives protection against aphids. Studies show sulfoxaflor is broad-spectrum, fast-acting and effective at low use rates. Aphids are known to spread a range of viruses in forage brassica crops such as beet western yellow virus, turnip mosaic virus and cauliflower mosaic virus. Plants affected by these viruses
GEA buys Milfos GEA Farm Technologies has purchased New Zealand-
based Milfos International Group. Milfos is a leading designer and manufacturer of innovative dairy technologies offering a comprehensive range of milking, cooling, stalling and automation solutions along with service and maintenance programs focused on grazing farm applications. This acquisition clears the way for GEA Farm Technologies to fully participate in growth opportunities within all pastoral farming markets worldwide and specifically within New Zealand. New Zealand exports 95% of its annual milk production representing more than one-third of all global crossborder trade. GEA CEO Dr. Ulrich Hullmann said the acquisition was another important step in the GEA Farm Technologies Total Solutions Strategy. “The Milfos product portfolio enables us to better meet the requirements of grazing markets by offering best-inclass tailored solutions,” he said. “In addition, our combined sales channels will strengthen our position in Asia Pacific and increase GEA Farm Technologies influence in emerging markets.”
are generally smaller with crinkled, yellowed leaves. The crude protein content of brassica leaves ranges from 15% to 25% and between 9% and 16% for turnips and swede bulbs. The crop is also well known for its livestock weight gain capabilities, with common weight gains of 0.8 to 1.2kg per head per day in cattle eating the
crop exclusively. The crop can also form a useful part of a pasture management program as it provides a break in the cycle for weeds and disease, leaving paddocks in an ideal condition for pasture or sowing. In the 1990s, about 300,000ha of forage brassica crops were grown. This has dropped to less than 3000ha today.
The approval of a new product for protection against diamondback moth in forage brassica crops and the pending approval of a second product for protection against aphids could lead to an increase in forage brassica planting across south east Australia.
Dairy News AUSTRALIA december, 2012
34 // SUMMER reading
Warner, Warner, cow corner! STEPHEN COOKE
NOVEMBER 22,
1.41pm: I love the ABC Grandstand team. I love them most when I’m in the car and home is 2 1/2 hours away. For that reason I suspect I’ll always have a soft spot for David Warner. The two started
a memorable partnership just as I leave a dairy farm at Strathmerton, 230km north of Melbourne. I turned on the radio as I drove through the farm gate. All I knew before this was from a glimpse of the Cricket Australia app on my iPhone. It told me Australia had put on 107 runs, which was good. It told me
South Africa had taken 3 wickets, which wasn’t so good. It looked like Australia couldn’t capitalise on a strong finish to the first test. And now I have a long, straight drive home, but I have company in Henry Lawson and Drew Morphett. And they are telling me a cracking yarn about
Dave Warner: about how he is hitting the ball into the construction areas of Adelaide Oval for fun; how umpire Billy Bowden and Graeme Smith are discussing the best replacement ball; and how Imran Tahir looks rattled. It’s great fun and it’s insightful, Morphett and Lawson two of the best
L A I C SPE T R O REP
NEXT ISSUE: FEBRUARY 12 PASTURE IMPROVEMENT The huge productivity gains available through pasture renewal have been proven by research and by farmer experience over recent years. Renovating pastures with new high yielding grass varieties means more milk in the vat and more money in the bank. The February issue of Dairy News will feature a special report on the latest technology, equipment and techniques to use to get the most out of Pasture Improvement.
going around. The Grandstand team still loves getting a text message from farmers harvesting wheat or baling hay across the country. And these farmers love the Grandstand team as Test coverage for 8 hours a day makes a huge dent in the 16-hours spent in the tractor.
There are hundreds and hundreds of large round bales of golden hay gracing the countryside. The farmers have been reaping the benefits of a good season (so far) – their third in a row. I drive through Katunga on my way to the Goulburn Valley Highway. Warner is racing to his century. He will polarise opinion until the end of his career. He’s definitely good for test cricket, and not just because of his powerful hitting. If Warner smashes a century on the first day of a test, he puts Australia in a commanding position with four days remaining. He vastly improves the odds of a result, which is good for cricket. Rather than a team constructing 500 over the course of two days, Warner helps them compile 500 in a day and a half (or less). His knockers will say an opener should take the shine off the ball and I would suggest smashing it repeatedly into a construction site does just that. His form before this match of one half-century from 10 innings also gives his detractors plenty of ammunition, which leads to healthy debate, which is good for cricket. Morphett tells me Clarke is giving Warner a talk with the opener on 119. A triple century is there for him, Morphett says. Warner is out next ball. The changing narrative of Test cricket cannot possibly be replicated in other forms of the game, which is why it holds such a special place for many. South Africa took the edge today with three wickets in 3 overs, Australia in all sorts at 3/55. Warner and Clarke put on 155 in record time but when Warner falls the home team is still only 4/210. Clarke survives a video review soon after – if the decision went against him, the game was back in South Africa’s favour. It didn’t, and Hussey and Clarke go onto make them pay on a track as flat as this Goulburn Valley Highway. I take the bypass around Shepparton. Clarke and Mr Cricket continue where Warner
left off. Nobody can understand why Steyn is not bowling, and the treatment of Imran Tahir elicits sympathy from the commentary box. The attack on Graeme Smith’s captaincy is slowly building momentum. Clarke is gathering a fair portion of runs through third slip. He would have been caught at least twice if there was someone there. I smile. I have gathered most of my runs in an unspectacular career with edges from the bat over slip for 4. My respect and admiration for Clarke continues to grow today. I am reminded of why radio commentary is so special. I have no idea what’s going on in Adelaide. I am completely reliant on the ability of the commentators, unlike TV, where I can watch the game unfolding myself. I thought Clarke was bowled on 98. Drew Morphett thought he was out, so I did too. A split second later I was told although Clarke had pushed onto his back foot and left his stumps completely exposed to a skidding ball, he hit it very late for four. Morphett couldn’t relate Clarke’s move as quickly as the captain’s reflexes, leaving us all initially disappointed, then surprisingly elated. I drive through Nagambie on auto pilot. The bowlers have worked their way back into the game and the contagious excitement of Warner and Clarke in full flight has gone. A familiar colour scheme of black spots on salmon catches my eye. I am informed on the town sign that Nagambie is the birthplace of Black Caviar. Everyone wants a piece of the action. I merge onto the Hume and have never wanted to be at Adelaide Oval more in my life. I imagine a frothy and a position in the sun with a grand view. Unfortunately, I’m on one of the country’s least inspired highways. I finally swing into the driveway at 5pm. Silence, as I turn off the ignition. It’s been a long day, but a good one. Time to head inside and watch Channel 9’s coverage with the sound off.
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