Dairy News Australia November 2014

LIVE EXPORTS: Sri Lanka wants 22,500 head PAGE 11 MILK MONEY PROFIT DRIVERS

Country Valley expands reach PAGE 8

Reducing farm costs PAGE 23

NOVEMBER 2014 ISSUE 53 // www.dairynewsaustralia.com.au

$16 BILLION INJECTION New capital sought to regain global market share PAGE 5

HEALTHY HEIFERS. MATERIALISED INVESTMENT.

Heifers are the future of your herd. They hold the genetic potential of your operation. That’s why it’s important to protect them from Pestivirus.

It’s well known that Pestivirus can reduce your reproductive performance.

Just a small drop in conception and calving rates can have a significant impact on your bottom line. Vaccinate twice within 6 months, prior to joining, to get the best reproductive performance from your heifers.*

Protect your heifers potential. Vaccinate with Pestigard. *Refer to product leaflet for details of administration and product claims. © 2013 Zoetis Inc. All rights reserved. Zoetis Australia Pty Ltd. ABN 94 156 476 425. 38–42 Wharf Road, West Ryde, NSW, 2114. www.zoetis.com.au 02/14 AM988 PAL1068/DN.

We also supply complete feed mills designed for the small or large dairy farmer so why not start milling your own grain today and benefit from the savings Need a new pencil or centreless auger we stock a large range of grain augering equipment at great prices

DAIRY NEWS AUSTRALIA NOVEMBER 2014

NEWS // 3

Falling dollar softens global dairy price falls THE DESCENT of the Australian

Warrnambool vet Dr Jon Kelly says new research reveals fresh sexed semen produces better results than frozen sexed semen. PG.20

Six months after robot milkers were installed, Gippsland farmer Trevor Mills discusses the impact on his herd and his business. PG.22

dollar against the US dollar continued this month, when it plunged to its lowest level in more than four years following the US mid-term elections.

The Aussie dollar fell to a low of US85.64 cents the day after the midterm elections, with analysts attributing it to weaker commodities, strong US jobs growth and hopes that the Republicans’ win would prove positive for stocks.

The dollar is also lower against the Japanese Yen and the Euro.

The National Australia Bank’s global co-head of foreign exchange strategy, Ray Attrill, said the Aussie dollar/greenback is the weakest major currency pair, while the New Zealand dollar has also taken a hit.

The last time the Australian

dollar had been trading in the US85c was in early July 2010.

Dairy Australia industry analyst, John Droppert, said the falling dollar is a positive for the Australian industry, easing the pain of the current slump in commodity prices.

In 2012/13, the Australian dollar was fetching US$1.05, placing pressure on exporters.

“In terms of impact at the farmgate, I don’t think this is going to fundamentally alter the outlook for the season,” Mr Droppert said.

“Most processors have flagged their best efforts to hold the opening milk price; I suspect this will just make that a bit easier for them.”

Mr Droppert said he did not believe the currency alone would influence a rise in farmgate prices.

“Maybe it will make the differ-

ence between a step-down or no step-down, but I can’t see it coming through as step-ups.”

NAB’s Vic/Tas Agribusiness head, Neil Findlay, said the lower Australian dollar is continuing to soften the impact of falling global dairy prices on Australian dairy farmers.

“While global dairy prices are currently down more than 25% since February, a falling Australian dollar means that our price forecast for 2014-15 is for a drop of less than 13% in Australian dollar terms.

“The lower Australian dollar provided some relief to Australian dairy producers in September, with the 1.4% global price drop for the month translating to a 0.7% increase in Australian dollar terms.

“Future falls of the Australian dollar by 1 cent would see local

weighted dairy prices rise more than A$55/tonne, based on September international dairy prices.”

Prices held steady at the first GlobalDairyTrade auction of the month, which was held the day before the Australian dollar fell to its four-year low.

On a trade-weighted basis, the GlobalDairyTrade price index slipped 0.3%.

The average winning price auction rose slightly to US$2649 a tonne, but is still down almost 48% compared with February.

Volume was also down sharply, with a total of 45,499 tonnes sold compared with 50,816 two weeks ago.

Russia’s sustained ban on dairy imports meant a glut of European produce continued to depress prices in many other categories.

The cow in front is an ideal milking cow, according to cattle judge and classifier Graeme Hopf (pictured), who spoke at a Livestock Improvement field day on Alex Macarthur’s Maffra dairy farm recently. Find out what makes it so special on page 21.

Murray Goulburn farmer Lloyd Walpole has upgraded to a 12 metre hay rake to keep food up to his 2000 head herd.

PG.32

NEWS ......................................................3-15 OPINION .............................................. 16-17 MARKETS ...........................................18-19 BREEDING MANAGEMENT ..... 20-21 MANAGEMENT ...............................22-23 ANIMAL HEALTH ...........................24-27 EFFLUENT & WATER MANAGEMENT ............................... 28-31 MACHINERY & PRODUCTS ...................................... 32-34

�

�������������

DAIRY NEWS AUSTRALIA NOVEMBER 2014

4 // NEWS

Making Vision a reality DAIRY INDUSTRY stakeholders will meet later this year to plan how to achieve the goals outlined in the Australian Dairy Vision, released earlier this year.

The Australian Dairy Vision came out in July, following the Australian Dairy Farmers National Dairy Summit and ADIC Strategic Forum, both held this year.

Australian Dairy Farmers say it is a statement of what the industry aims to be known for and proud of by 2025.

The vision includes a desire to

attract, develop and retain highly skilled people from farm to market; to grow wealth; and to drive innovation.

Australian Dairy Farmers CEO, Natalie Collard, said the Australian Dairy Industry Council, the umbrella organisation with representatives from ADF and the Australian Dairy Products Federation (which represents processors), will soon begin developing a plan with dairy industry bodies.

“Having an implementation plan is important so that the dairy industry knows all its bases are covered before

it launches into new projects,” Ms Collard said.

“The plan will outline industry activities and projects under each of the five elements of the vision - Innovative, Responsible, Valued, Unified and Preferred.

“In some areas the first stage will be to develop more detail about what needs to be done, who is doing what and with which partners.

“There will be focus on developing and advancing new projects to complement existing activities so that we can

progress toward achieving the priorities defined in the Dairy Vision.”

Ms Collard said the plan would use stakeholder feedback and input, as well as adopting a reporting framework to provide an indication of success against the Dairy Vision’s priorities.

ADIC chairman, Noel Campbell, said having a clearly defined vision tells everyone with an interest in dairy “what we stand for as an industry and where we see our future”.

“This is as relevant for dairy farmers in Australia as it is for our custom-

ers overseas,” Mr Campbell said.

“The vision’s priorities will ensure our industry is better equipped to meet the challenges facing Australian dairy and capitalise on the opportunities through growth.”

At the time of the vision’s release, Dairy Australia chairman, Geoff Akers, said the vision was a milestone for the industry.

“It’s a significant achievement to forge a collective vision and it will help guide the collective action of our industry,” Mr Akers said.

Dairy Australia boosts MG delays capital raising scheme on-farm investment DAIRY AUSTRALIA invested $61.8

million into the industry in 2013/14, a 6% increase on the previous year.

Sixty-two per cent was directed at research, development and extension activities across the supply chain.

The major investment was made in farm margin improvement ($21.2m), including animal performance, farm business management, feedbase and animal nutrition and resource management.

Other major investment was made in capability development ($10.7m), including attracting and retaining people, and market support and insights ($9m), including international market support.

Industry promotion, including the new Legendairy campaign, received funding of $8.4m.

Dairy Australia spent $5.4 million in 2012/13 on marketing and promoting the industry, and $4m in 2011/12.

Dairy Australia received almost

$52.2m in levies and matching government payments, a fall on the previous year’s total of almost $56m.

Payments to suppliers and employees in the financial year were $62.3m, up from the previous year’s total of $54.5m. This contributed to an operating loss of $5.08m in the financial year.

Dairy Australia managing director, Ian Halliday, said DA identified savings in excess of $500,000 last financial year, in addition to the ongoing savings maintained from previous years.

“Most savings were realised by rationalising externally commissioned services,” he said in the report.

“We will continue to focus on costs to ensure we are delivering benefits to farmers efficiently.”

DA chairman, Geoff Akers, said DA has worked hard to strengthen overseas collaboration as an important strategic area, recognising the value of knowledge sharing.

“We have developed close ties with DairyNZ and Teagasc in Ireland, among other equivalent dairy organisations overseas, to assess opportunities for jointly funded international research,” he said.

“Our overseas research connections are becoming increasingly important and we must focus on connecting our own researchers with top researchers around the world to help address the research issues facing the Australian industry.

“Dairy Australia continues to put significant resources and effort into protecting and developing Australia’s reputation in the international market space, providing expert advice to the Australian Government in ongoing trade negotiations with China and the Trans-Pacific Partnership, and technical market access work to educate Australian exporters about requirements in our export markets.”

The full report can be found at www.dairyaustralia.com.au

MURRAY GOULBURN has delayed

its timeline to put its proposed capital restructure to a vote, but has added items to the agenda of its annual general meeting which will help pave the way for change.

The co-op, hoping to raise $500 million under its proposed share plan to improve its processing facilities, wrote to its suppliers late last month to advise them of the delay.

Previously, the plan involved a fourth round of supplier meetings in November 2014, an Extraordinary General Meeting (EGM) around February 2015 and subject to this outcome, a potential capital raising in March 2015.

Chairman Philip Tracy said the board had considered a range of factors including the interruption of the Christmas period and “other key project parameters” and has decided to extend the timeline.

The fourth round of supplier meetings is now planned for early 2015, to be followed by an EGM and, subject to this, a potential capital raising in mid-2015.

Mr Tracy said formal consideration of the capital structure proposal would not be considered at the upcoming AGM and would be looked at separately at the EGM proposed for 2015.

Supplier shareholders will vote at the AGM on November 27 on proposed changes to the constitution, as well as consideration of a voluntary buyback of MG’s B and C class preference shares.

Under the buy-back proposals, Murray Goulburn will offer all B and C Class Preference Shareholders the opportunity to sell their B and C Class Preference Shares for $1.25 per share.

“The constitutional amendments will assist in facilitating the proposed capital restructure, however all changes are of a general nature and, if approved, will apply regardless of whether the capital restructure occurs,” Mr Tracy said.

Murray Goulburn recorded revenue of $2.917 billion in 2013-14, up 22%.

It reported a net profit after tax of $29.3 million, which was down on the previous year’s result of $34.9m.

NUDAN

• NEXT GENERATION • SUPERIOR FORAGE SORGHUM • QUALITY PLUS WHEN

QUALITY AND PERFORMANCE

IS PARAMOUNT

WHY YOU SHOULD GROW NUDAN Nudan is a high quality forage sorghum for both grazing and hay production.

Dairy farmers, sheep/fat lamb producers and haymakers should put this hybrid on top of their shopping list.

• Sudan x sudan grass • Lower prussic acid levels • Intensive grazing for sheep and cattle • Fine stemmed for quicker drydown after cutting • Excellent leaf to stem ratio with less waste • Ideal for earlier grazing • First choice for quality hay production

For more information, please contact:

nuseed.com.au

Southern NSW Alan Wright 0407 081 721

Central NSW Chris Roberts 0437 178 296

Eastern VIC & Mid North SA Robert Christie 0427 340 608

DAIRY NEWS AUSTRALIA NOVEMBER 2014

NEWS // 5

Investment as important as the right FTA FEDERAL TRADE

Trade Minister Andrew Robb addresses the Dairy Farm Investment Forum in September.

Dairy seeks $16b capital injection RICK BAYNE

AUSTRADE IS pursuing leads from September’s Australian Dairy Farm Investment Forum in a bid to help the industry reach an ambitious target of attracting a $16 billion capital injection by 2020.

The leads – including many from China – are now being pursued by Austrade and state governments.

Analysis has found about $16 billion of new capital is required to regain the international market share Australia enjoyed in 2000.

Dairy Australia’s group managertrade & industry strategy, Charlie McElhone, said to capitalise on the growth opportunities available, particularly in the Asian region, Australia needed a big investment of capital from all sources.

“There’s additional competition from the likes of New Zealand, the United States and Europe. We recognise that with new capital we can build our competitiveness and retain some of the growth opportunities that are out there, particularly in the Asian region.”

Mr McElhone said Dairy Australia was “not holding ourselves” to the $16 billion figure but was confident it was a good time to invest in the industry.

“$16 billion is a big figure but it’s also about making sure it is wellinformed investment and the investors come in with their eyes open and are aware of the different services that are available to make sure their investments are a success.”

Mr McElhone said there was positive feedback from the forum but no new investments that could be confirmed at this stage.

“Absolutely there’s cause for hope,” Mr McElhone said. “There have been a lot of leads and potential opportunities for new capital investment into the industry.”

Austrade brought a big delegation of 40-50 participants from China to the investment forum, along with key domestic investors.

“They are continuing to follow-up on leads that have emerged as a result of that,” Mr McElhone said.

“None have eventuated at this stage; it’s all in that realm of discussion and further information gathering as far as I’m aware, but the feedback from the investment community both internationally and here in Australia has been really positive.”

More than 300 farmers, investors and industry leaders attended the forum to explore potential ways to grow the industry to meet demand from overseas markets.

In keeping with the recent trend,

the most prominent interest has been from Chinese foreign investment.

Speaking from China where he was meeting with customers, reinforcing the importance of a free-trade agreement and attending an APEC conference, Mr McElhone said Dairy Australia aimed to provide more and better information about what constitutes farm profitability and what investment in the industry looks like.

“There is a general improvement in the level of engagement with the investment community.

“Dairy Australia is not the match maker. We don’t have direct engagement with investors in terms of helping them to find investment opportunities, but what we do is help provide information for informed discussion,” he said.

“Organisations like state governments and Austrade play a greater role in working with specific investment targets and looking at match-making opportunities.”

At the Australian Dairy Farmers summit earlier this year two of the top three industry priorities centred on the need for investment in the industry, particularly at the farm gate level.

“As a service provider Dairy Australia takes that feedback and identified that we needed to be involved to make sure there are facts for informed discussion,” Mr McElhone said.

Minister Andrew Robb has said an injection of capital and continued investment in the Australian dairy industry is just as important as a free trade agreement with China.

Minister Robb addressed about 120 people, including local Member for Corangamite Sarah Henderson, and local dairy farmers, at the Larpent dairy farm of Craig Billing and Sam Simpson last month.

Minister Robb was discussing the China FTA negotiations, which are expected to be concluded and announced this month.

Minister Robb and the Federal Government have long spruiked they wanted a “NZ plus” agreement but at the time conceded he still had “a way to go with dairy”.

“In part because they know it is the most important thing,” he said.

“None of it is confirmed, we have sort of finished lots of things.

“If we get a hiccup at the end that could put a ripple back into things already done.

Minister Robb said achieving a satisfactory FTA with China was one thing, but a large capital investment needed to be made to enable Australia

Trade Minister Andrew Robb.

to stay ahead of its international competitors.

“If the FTA leads to better investment in higher-value products in Australia, that’s a good benefit,” he said.

He also predicted the FTA could lead to significant investment in services. One example given was an expansion of Avalon airport to enable it to cope with extra exports.

One member of the audience expressed her displeasure at Prime Minister Tony Abbott’s aggressive comments towards Russian President Vladimir Putin.

Russia was a significant exporter of Australian dairy products before

banning it, among other countries, as a result of the stance taken over the destruction of airflight MH17.

“A plane was shot down with Russian equipment, at some stage you have to take a stand,” Minister Robb said.

“Putin has not followed through with promises to help investigate MH17, so Tony Abbott was within his right to stand up to him.”

On a question regarding foreign investment in Australia, Minister Robb said it was important to move with the times, but the Government should still keep an eye on developments.

MASTITIS:- Break the cycle Revolutionary ON FARM Mastitis Test Device • • • • • • • •

Identify Staph or Strep in 40 seconds with SCC. Powerful easy-to-use software to record cows and individual quarters tested.

Links with your herd recording programs.

The RT-10 Device is Convenient-Quick-Easy to work-accurate.

Removes guess work from Mastitis control.

Reduce risk of ongoing cross infection and high SCC milk going in the vat.

Works off an IPhone 5 or an IPod. All updates for future testing protocols included in price.

Australian Distributor: Phone: 03 5448 8119 Email: dqd evic e www.dairy @gmail.com quality.com

Contact: Phil Malcolm 0408 559 408 or Allan Hain 0412 882 644

DAIRY NEWS AUSTRALIA NOVEMBER 2014

6 // NEWS

Faltering season puts pressure on farmers BELOW AVERAGE or minimal

rainfall across most of the country, combined with rising temperatures in northern Victoria, SA and Queensland, are starting to place pressure on farms nationwide.

Promising early winter rainfall ended abruptly in several of the country’s dairy regions, with less silage expected than last season in most regions.

Demand for hay is starting to increase, particularly in Queensland, south west Victoria and South Australia.

A dry start to spring and recent heatwave temperatures are taking a heavy toll in Queensland, with winter pastures quickly fading and a dire need for storm rain soon to establish summer pastures.

The Queensland Dairyfarmers’ Organisation said while many of the State’s irrigation supplies are in reasonable condition after the March flood event, decent rain will be needed soon and farmers are hoping the coming summer is more favourable than 12 months ago.

The Bureau of Meteorology has indicated Queensland is facing a drier than normal November to January.

In southern Queensland, demand for hay is picking up once again as conditions remain hot and dry. New season hay becoming available in NSW will ease some supply pressure on the northern market but the latest Dairy Australia hay and grain report said supplies will be tight in 2015.

In the Bega district of NSW, which has recorded average rainfall, spring silage season is well underway and above average production is expected.

The hay season is now well underway in northern Victoria and yields are reported to be average or better with quality good.

Rain across Gippsland in late October will help boost pasture production while silage yields have generally been

From one extreme to the other GARY AND Lee

Hibberd received 336mm of rain in July, which even in a district with a traditional annual rainfall of 1200mm, was unusual.

“We had a wet period through June/July, and into early August, and it stopped mid-August and we’ve had nothing since,” Mrs Hibberd said.

“In Warrnambool they were saying it was too wet, then after 4-5 weeks, it was too dry. It was one extreme to the other.”

The Hibberds had a “booming” year last year, and were still getting a second cut for silage in January.

They have cut 700 rolls so far this year, which is down on last year, but can still be declared a success. “We could get good summer rain yet, it’s not all over yet,” Mr Hibberd said.

No rain since mid-August on Gary Hibberd’s Simpson farm.

good, according to Dairy Australia.

Growers are optimistic about the season and particularly about silage yields.

Silage is well underway in south west Victoria but yields are well below aver-

age, raising some concern about fodder supplies for the coming year.

Larpent (via Colac) dairy farmer Mark Billing said they had cut as much silage as last year but very little hay.

“Last year we had a cracking spring

and a really good autumn this year. We carried over a reasonable amount of silage and some hay.

“The season’s about five weeks ahead, so now we’re seeing pasture growth drop right off, and we will have

Dairy-Tech Refrigeration Registered Packo Dealer Australia

The dedicated milk cooling specialist • A Packo milk tank and system to suit all herd sizes, pick up schedules, and entry temperatures • Simple one button operation to activate either cooling or wash modes • Packo’s Patented fully automatic Rotojet cleaning system, ensures every square inch of the inside vessel is clean and hygienic.

• The choice is yours- Direct expansion or a glycol chilling tank • Pre, instant cooling systems available

New & Secondhand systems / Wash system upgrades for any make-model tank Call Dairy-Tech Refrigeration today for a no hassle quotation

Phone 03 56623277 email pgoiris@dairytechrefrig.com.au Web www.dairytechrefrig.com.au

to start feeding.

“We normally open up the silage the week before Christmas, but I think we’ll have to in a couple of weeks’ time.”

Hay traders are reporting lots of enquiries for new season hay from the region’s farmers.

Silage yields are well below average in SA. Dairy farmer and hay contractor from near Adelaide, James Stacey, said it was likely to be an average year and he recommended dairy farmers start securing supplies for summer.

“People have cut a bit more than usual but now their pastures are shot.

It’s going to be a long summer,” he said.

“There’s going to be hay around but if I was a punter I’d be securing your hay needs fairly soon because a lot of regions are going to be handfeeding stock and going through a fair bit of hay over the next seven or eight months.”

After a promising start to winter, conditions have deteriorated.

“We haven’t had any substantial rain since the end of July,” Mr Stacey said.

“Higher rainfall regions in SA have had below average silage cuts and hay cuts are expected to be below average with the dry spring,” he said.

Mr Stacey said the biggest challenge would be supplies of protein hay. “It’s been too dry for clover and vetch hay,” he added.

As hay supplies are generally low in Western Australia, many growers are interested in baling pasture hay and silage this year, according to Dairy Australia. There are some reports that silage yields have been below average so far.

The wet winter in Tasmania has benefitted farmers in the north-west who are having a favourable silage season, with good yields reported. If the favourable conditions continue in the north of the state a good pasture hay season should result.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

NEWS // 7

Dry season but NZ farmers right at home in Gippsland RICK BAYNE

THEY MIGHT call their farm NZMozzies, but New Zealand expats Bernie Carnachan and Sharon Finnerty have found Australia to be the land of opportunity, even if the season is a bit dry.

The long-time friends moved to Australia in July 2013 with husbands Zane and Tony to manage two farms in Gippsland.

In April Bernie and Sharon leased a dairy farm at Dennison and have achieved a remarkable turnaround and are continuing to travel well with low rainfall.

With Zane and Tony contract milking on the original farms, Bernie and Sharon have pushed their leased farm to record production.

The annual record is 42,000kg/milk solids (MS) and Sharon and Bernie have already achieved that since starting the lease on April 1. It’s an “all-girl” farm with the lessees supported by a female milker.

Sharon Finnerty and Bernie Carnachan.

“Australia has been awesome,” Bernie said.

“It’s the land of opportunity; that’s the way we put it.”

An intensive feeding program has led to the turnaround and the pair hopes to expand on that growth even in drier conditions.

“I don’t think the rainfall is as good as last year,” Bernie said. “We were getting spill water, which is

excess water in the lake due to rain which we can order and it doesn’t come off the allocation, until December 15 last year. But we haven’t had any for a long time this year.”

However, the drier conditions haven’t been debilitating. “It hasn’t been too bad. If it starts getting really dry we order water in, and then it rains,” Bernie said.

They have cut about

100 bales of silage already and have got more shut up ready to go.

“I don’t think they cut any silage last year,” Bernie added.

Their priority when leasing the farm was to increase production and numbers.

“We lifted the numbers a little bit. It was quite run down when we took over and a lot of the pasture had been grazed for a long

Poor wheat crop offset by good global supply

time. We topped the whole lot before we grazed it.”

The farm was only

achieving seven litres per cow when Bernie and Sharon took over.

“We started feeding in the shed and had them up to 15 litres within 10 days.

We’re about 25 litres per cow at the moment,” she said.

“We feed them well and now they’re milking very well.

“We could only feed them a small amount extra at a time and gradually increase it every two weeks by a kilo. They were on a 14-day round when we came here. We stretched it right out and got the grass growing, topped everything and the cows have been awesome.”

They have managed the herd by culling some lesser

TWO WELLS - SOUTH AUSTRALIA FOR SALE BY EXPRESSION OF INTEREST OUTSTANDING DAIRY AND VETERINARY FACILITY ON 36.4 HECTARES

• Situated 40 kms. north of Adelaide and 30 kms. from the milk processor • EPA approved for 912 cattle.

THE 2014/15 Australian wheat lowering the prices exporters are crop is expected to yield between willing to pay, they are also likely 23 million metric tonnes (MMT) to support continued strength in (Rabobank) to 25MMT (USDA) - northern hemisphere milk produccompared to an estimated 27 MMT tion,” Mr Droppert said.

“Purchased feed costs last year. are a major influence on However, Dairy Ausfarmgate margins across tralia industry analyst many dairy exporting John Droppert says exporegions, and are therefore sure to international grain one of the key drivers for markets has provided Ausglobal dairy supply.” tralian dairy farmers with John Dropport Data from the Vicsome relief, as expectations of good global feed grain torian Dairy Farm Monitor Projavailability have depressed global ect shows average expenditure on grains, concentrates and other feeds markets since September.

However, the global market can accounted for 29% of cash costs during 2013/14, demonstrating the prove to be a two-edged sword.

“While good overseas supplies potential for a spike in grain prices may help lessen the pressure on to impact on margins.

Milk production is currently domestic feed grain stocks through

tracking around 3% above last year in data to September, however deteriorating seasonal conditions are increasingly likely to weigh on production heading into summer, according to Mr Droppert.

“Feed prices remain a challenge in northern Australia, however yields and quality of early harvested grains have generally been acceptable, while sorghum planting will be supported if rains forecast for early November eventuate.

“Barley is coming under pressure from exporters, but good news for feed buyers is that in parts of New South Wales screenings have been a problem.”

• Global Impact: Global dairy regions feel pressure of feed prices, page 18

producers and bringing in more young stock.

Shed feeding has been the big difference with the cows now up to 6kg of grain.

“We’d like to get the cows to 35 litres plus get our numbers up. We’re milking 190 on 84ha. It could do a lot more – we’d like to get to 300 cows but we only have a 15-a-side double up so it’s a very long milking.”

They are considering moving to once a day milking with half in the morning and half at night to allow bigger stock numbers.

They are also looking to find another bigger lease farm, with potential to buy.

• 50 unit rotary Larsen Dairy, 7 years old, with nylon rollers, stainless bail cabinets • Full DeLaval Alpro milking equipment, variable speed Lobe vacuum pump • Twin stainless steel milk tanks, capacity 27 kilolitres, pre-cooling ice bank system • ID herd management & 3way draft gate system • Concreted holding yard,

with auto backing gate, 500 head capacity.

• Under cover feed pad/lounging area, 550 head holding capacity, suit beef feed lot • Veterinary School Facility operated in assoc. with the Adelaide Uni Roseworthy Campus.

• Veterinary facility comp. 3 vet & 4 foot trim crushes, 10 AI stalls and associated yards.

• Substantial 3 bedroom stone homestead • Website: www.realestate.com.au property id 7195068 for further information and photos.

Expressions of interest close 5:00pm Friday 28th November 2014 at

Raine & Horne RLA173455 104 Old Pt Wakefield Road | Two Wells SA 5501

Contact Neil Bowden 08 85203111 | Mobile 0407 396840

DAIRY NEWS AUSTRALIA NOVEMBER 2014

8 // NEWS

Coles decision sent Country Valley milk sales rocketing GORDON COLLIE

IT HAS been 10 years

since Picton, NSW, dairy farmers John and Sally Fairley launched Country Valley milk into the local market in 2004.

The Fairley family has been farming in the Picton district for more than 150 years, with John a sixth generation farmer. They decided to process their own milk in the wake of dairy deregulation.

Before the advent of social media and relying on word of mouth promotion, the business was slow to get off the ground, racking up losses for the first five years.

“We certainly paid for our early mistake of not having a market for the volume of milk we were producing when we launched into processing. It was slow building

sales through the first few years.”

However, things changed that fateful Australia Day in 2011 when Coles launched its $1/litre house brand milk.

“Our market growth was starting to come along nicely when the advent of $2 a litre milk in the supermarkets caused a demand spike of 45% in one year,” Mr Fairley said.

“Everyone knew the farmers were getting screwed and suddenly they wanted our branded product.”

“We had to get our management of the processing plant up to scratch to get production to the level of demand.”

With Mr Fairley increasingly focused on marketing Country Valley Dairy, the dairy operation is now supervised by his son, Tom, a seventh generation farmer.

The small herd of 100 to 110 Friesian-Jersey cross milkers on the 125ha property average about 20 litres of milk a day.

The business is now drawing milk from six other local farms and processing throughput has expanded to 110,000 litres a week.

Country Valley markets regular and skim milk and an organic product drawn from three certified farms, as well as natural and sweetened yoghurt and cream. Cream is also supplied to the artisan butter maker in Sydney, Pepe Saya Mr Fairley said opportunities for joint venture cheese production using their milk were also being explored.

Sales are expanding through the Sydney market with a distribution system into Canberra and regular attendance at

farmers markets.

“We are now in the local supermarkets in the area and they are treating us really well with good shelf exposure for our products.”

Mr Fairley said the supermarket interest was a reflection of changing customer attitudes with a growing demand for local and naturally produced foods.

He engages directly with consumers, marking extensive use of social media and is building a public profile as an industry ambassador.

“We are not so much selling a bottle of milk as an emotional story and I am passionate about getting our message across, about connecting with people.”

He has built a large social media following with regular postings which keep building the

John Fairley

relationship with Country Valley.

This has flowed on to a range of public appearances promoting the value and goodness of dairy products and sharing his passion for dairy farming. This year he was invited to make a

presentation at the Qantas Epicure food event in Melbourne and appear in a video advertisement.

“I was in a high class delicatessen in Melbourne and was recognised from my Twitter account. The reach of social media networks is unbelievable,”

he said.

Taking photographs of Mr Fairley with the Country Valley herd for Dairy News Australia, he had his phone out to share the picture of contented cows with his growing band of social media followers.

New from Bale Up Hayfeeders Our modular feed pad model, the next level in feed pads, comes in 4 metre units. Buy 2 ‘bookend’ units and add as many open ended centre units as you need. No more feed on the ground and extremely low waste, and like all our feeders comes with our rolled corrugated floor.

$2420

incl GST per unit

Bale-Up Hayfeeders

Phone: 0458 590 766 • Fax 03 5859 1137

er Standard cow feed $2200 inc gst

Calf feeder $1980 inc gst

rsgarth@hotmail.com www.baleupfeeders.com

Wynanda Ventor on the milk production line.

CUT LABOUR COSTS

1300 767 596

info@onfarmsolutions.com www.onfarmsolutions.com

Reduce teat spray usage!

Better than a manual teat sprayer and no labour unit. Two nozzles deliver highly accurate bursts of teat spray.

• Labour saving device • Highly accurate • Low teat spray usage The original Teatwand 400 remains in the product range.

• Reliable and durable • Optimal droplet size • The better alternative

DAIRY NEWS AUSTRALIA NOVEMBER 2014

NEWS // 9

SADA Fresh sales pass 1m litres SADA FRESH, the South Australian Dairyfarmers’ Association’s own milk brand, has passed the one million litre sales mark - just in time for its first anniversary.

SADA Fresh is sold exclusively through Coles supermarkets in SA, where it now accounts for 3.8% of milk sales, compared with SADA’s initial target of just 2%.

Backed by sustained demand over 12 months, SADA has begun negotiations to expand the retail network for the brand, and the range of products offered.

SADA president David Basham said South Australians had overwhelmingly supported the brand from the moment it hit the supermarket shelves in October 2013.

“We were the first dairy industry association

in Australia to launch its own milk brand and obviously there was a chance that it might not work, but sales are expected to reach 1.15 million litres (in the first 12 months), which is extraordinary,” Mr Basham said.

“It’s not only given consumers an alternative to discounted homebrand milk, it will help to make sure that our industry remains viable so that people will continue to have access to fresh, highquality local produce.

“It has already created a firm foundation to build stronger partnerships with the State Government, accessing additional resources and opportunities that will benefit the broader economy of the State as well as the dairy sector.

“And, importantly, it’s given dairy farmers a

greater sense of pride in what they do and more optimism about their future.”

The Western Australian Farmers Federation (WAFarmers) will launch its own branded milk on

Celebrating the first anniversary of SADA Fresh, from left, SA Agriculture Minister Leon Bignell, SA Premier Jay Weatherill, SADA president David Basham and SA Dairy Industry Fund chair, Dennis Mutton.

Reduce your fert and application costs talk to us today to work out a per hectare cost, based on your farm, with Tow and Fert.

Milk profits flow back to farmers PROFITS FROM sales of SADA Fresh, the South Australian Dairyfarmers’ Association’s own milk brand, will soon flow into the coffers of SA dairy farmers.

Sales of the milk brand have generated as much as $140,000 for industry projects in the first 12 months.

The milk is processed and packaged under a special licensing agreement by Parmalat, which pays SADA 20 cents for every litre sold.

Profits will go into a new industry fund to finance projects that will help secure the future viability of the industry.

Mr Basham said the fund would have $120,000$140,000 after expenses following the first year of sales.

He hoped that up to $250,000 a year could be collected in the future.

Legal and financial arrangements have also been completed to officially form the new SA Dairy Industry Fund.

It is being chaired by Dennis Mutton, a prominent figure in South Australian agriculture with vast experience in the rural research and development sector.

“The overarching purpose of the fund is to finance projects that directly benefit the South Australian dairy industry and its communities, and to encourage and promote the South Australian dairy industry and its communities,” Mr Mutton said.

“Now that proceeds from milk sales have started to accumulate, we will be putting out the first call for concept proposals before the end of the year.

“We plan to identify a shortlist from the proposals received, and then work with applicants to develop more detailed submissions.

“We are greatly looking forward to receiving innovative proposals that offer some exciting opportunities to reinvigorate an industry that’s been vitally important to the state and its economy for many years.”

November 19.

A portion of its profits will also be directed to local farmers.

“ I apply fertiliser at 10 bucks a hectare* with my Tow and Fert ”

Multi 1200

Multi 1000

• Tow with Ute or Tractor • 1000 Litres • Self Powered

Multi 4000

• Tow with Tractor • 4000 Litres • PTO/Hydraulic Operated

• 3 Point Linkage • 1200 Litres • Hydraulic Operated

Payback calculation and mix optimisation software

Owning a Tow and Fert can reduce your application costs AND your largest expenditure bill – fertiliser! If you are applying nitrogen, then putting normal granular urea into the Tow and Fert and dissolving it into a solution means you can use less nitrogen per hectare and get the same dray matter response.

The Tow and Fert is a multi-role machine, meaning it can be used to apply a mixture of products, all in one pass. Using its patented recirculation system, vicious in-tank handle many types of fertilisers and products, including; RPR, Lime, DAP, Urea, the Tow and Fert is NOT like any other sprayer.

Give one of the friendly team a call to get a per hectare cost of application for your costs, labour costs and even maintenance costs. The only

*Based on a 300HA farm, fertiliser application 6x a year

TF

TOW AND FARM by metalform

1300 630 279 WWW.TOWANDFARM.COM.AU

DAIRY NEWS AUSTRALIA NOVEMBER 2014

10 // LIVE EXPORTS - NEWS

Sri Lanka builds dairy industry New Zealand.

“The objective was to increase culture is helping Sri Lanka increase its fresh milk supply, reduce its reliance on Sri Lanka’s local milk production by powdered milk imports and, ultimately, importing high-yielding animals and become a self-sufficient dairy producer. improving NLDB dairy farms,” Mr A milk import bill of US$300 million Webb said.

“We supplied Sri Lanka with quality per year prompted the Government of Sri Lanka to seek ways to create its own Australian dairy cattle, farming infrasustainable dairy industry and make structure, plant and equipment, and farm management services. The inifresh milk more available.

To be self-sufficient, Sri Lanka tial farms were part of a pilot project needed to produce an extra 600 million for subsequent development of largelitres each year – an impossible task for scale dairy production in Sri Lanka.

“Since the arrival of the first 500 a country with a small dairy industry.

Sri Lanka’s National Livestock cows, milk production has increased Development Board (NLDB) found the from 3 litres per day to between 18 and 21 litres per day. Fodder development answer in Australia.

The NLDB formed a joint venture had been the biggest challenge, but all with Wellard Rural Exports to supply three farms are now self-sufficient in dairy cattle, infrastructure, equipment fodder production.”

Despite being a large importer and management to increase Sri Lanka’s dairy herd and raise the average of milk powder products, Wellard believed Sri Lanka had the daily yield from three litres natural environment and of milk per cow to closer to “Since the ability to build a large-scale Australia’s 26 litres. arrival of industry.

Wellard is Australia’s Australian dairy Business in Sri Lanka largest exporter of cattle The firm completed a and sheep, with interests cows, milk in land, shipping, logis- production large feasibility study of Sri Lanka to determine whether tics, breeding, processing, has could support a dairy animal feed, farm machinincreased itindustry, and where best to ery, and transport throughestablish a large dairy farm. out Australia, New Zealand, from 3 Wellard presented its Asia, the Middle East and litres/day findings to the Sri Lankan South America. to 18-21 with a proposal Entering Sri Lanka litres/day.” Government to upgrade an existing NLDB In the initial US$13 million phase of the project, Wellard sup- farm to a high production dairy farm.

The Sri Lankan Government plied 2000 dairy cows to three farms in the central Bopaththalawa region. A mix accepted the offer and awarded Welof Jerseys, Friesians and Jersey Friesian- lard a contract. At the time, Sri Lanka was yet to import any cattle, and there cross cattle arrived in March 2012.

Johann Wasserman, international were no other companies assessing the project manager for Wellard, is based industry’s potential in Sri Lanka.

Mr Webb said Wellard faced many in Sri Lanka and responsible for all operations in that country. Colin Webb challenges during construction of the is the Perth-based operations manager first dairy farm, and Wasserman was responsible for all breeding cattle based at the farm in an advisory role Wellard exports from Australia and for the initial stages. In addition, the

AUSTRALIA’S EXPERTISE in agri-

iDAIRY

NLDB distributed 600 heifer calves from the herds to smallholder farmers to improve local genetics in Sri Lanka.

“The unusually dry conditions preceding the cattle’s arrival, we delayed the shipment and we had to source supplementary fodder from outside the farm,’ Mr Webb said.

“However, the biggest challenge was getting the local community to change how it thought a dairy farm worked.

The average daily yield from the Sri Lankan herd is 3 litres/day.

A typical dairy cow in Sri Lanka.

A high intensity farm was new to the locals. Most things we were trying to implement were radical and difficult for people to comprehend.

“However, Sri Lankans are enthusiastic about making projects work. They are very accommodating, which makes doing different things a little easier.

“The difficulty with Sri Lanka is the lack of service industries. For example, the availability of spare parts and the technology needed to service an intensive dairy. We had to bring in most spares from abroad, as well as the technicians to maintain machinery.”

Mr Webb said infrastructure in the more remote areas of Sri Lanka presents obstacles. Obtaining finance in Sri Lanka was also troublesome, but has become easier in recent times.

The Export Finance and Insurance

Corporation (EFIC) played a pivotal role in funding the project. Wellard needed finance to export the cattle as part of the Sri Lankan government’s dairy development program. An export finance guarantee of $10.5 million from EFIC allowed Rabobank to provide a long-term loan to the Sri Lankan government to fund the project.

The work has included educating local farmers and farm workers in lowstress animal handling techniques, training veterinarians, and providing higher capacity cows to a country that relies on imported milk powder.

“We’ve trained over 30 internee vets and more than 120 graduates and diploma holders from various universities and agricultural schools in Sri Lanka,’ Mr Webb said.

“The vets and diploma holders got TH1652M 23/7/2014

®

“we make farming ezy”

PAS-t-PLUS™ Not sure how much feed to grow?

Measure what is grown and work to your budget.

More feed used means better management and gets better results.

tOP tECh™ hIGh LIFt GAtE

Cows hard to get into the dairy parlour for milking?

The Top Tech™ high lift gate is sensitive and does not bulldoze the cows.

A reliable management system resulting in less stress for cows and staff.

ONLINE SPECIAL

www.technipharm.com.au

PACIFIER

™

CAStrAtOrS

Castrating with knives? This can be dangerous, staff safety compromised & animal performance set back, resulting in a potential loss of revenue.

Use a TechniPharm™ castrator at the critical time.

More beef on the hook and staff kept safe.

ANImAl Co CoNTRol UNIT U

Fresh cows on the platform?

A neuro immobiliser relaxes the cow and a relaxed cow will get used to milking more easily.

Reduced labour, less staff frustration and better overall animal wellbeing.

SPEED SENSItIVE tEAtSPrAYEr™

Cow teat condition abismal? Cost of treatment and labour for manual spraying high?

Invest in an automatic teatspray system.

All your cows teatsprayed correctly every milking and a reduction in labour and cost.

MILk ChECkEr™

GrOOMEr™

High SCC? Possible penalties and treatment cost?

NZ’s most popular Hooftrimmer.

Test for infections with instant results.

Instant indication of infection level, instant results on treated and retested milk before it goes back into the vat.

theoretical and practical training in surgery, breeding, pregnancy diagnosis, new feeding practices, hoof trimming, calf rearing and modern milking techniques, as well as training in how to manage a commercial dairy.

“Some of these trainees are now working for the NLDB or with other dairies around the country.

“We also trained farmers in calf rearing, with help from the NLDB, who gave the farmers literature on animal husbandry before the calves were distributed.”

Future opportunities Wellard is excited about agribusiness opportunities in Sri Lanka, especially in the dairy industry. As the market expands, Mr Webb expects ancillary industries will develop around the need for better services for dairy producers.

“For example, there is an exceptional opportunity in the supplementary feed industry,” he said. “Currently, there is little supplementary fodder should a dairy run short. There are large tracts of land in Sri Lanka suitable for fodder production, especially with irrigation.

“There is significant interest for additional government and non-government contracts, and we see scope for Sri Lanka to become an important export market for Australian dairy cattle.”

NEW

Walk throug h headlock

Lame cows and treatment a real hassle?

*Conditions apply.

All prices exclude GST, Insurance & freight.

NEW...NEW...

Scan the Code using your smartphone - then grab a TechniPharm Ezy Deal

$N1 295 ormal ly $1595

Cow care and staff safety compromised?

Get a professionally designed hoofcare handler.

Cows lame feet treated early and staff kept safe.

For more solutions to make farming ezy... FREE Ph: 1800 124 034 Go online: www.technipharm.com.au

DAIRY NEWS AUSTRALIA NOVEMBER 2014

NEWS – LIVE EXPORTS // 11

Wellard seeks 22,500 dairy heifers for export

Wellard will use the MV Ocean Outback and MV Ocean Swagman to export dairy heifers to Sri Lanka.

AUSTRALIAN DAIRY farmers will benefit from the Sri Lankan Government’s stance to boost its domestic milk production and import 22,500 dairy heifers from Australia.

Wellard signed two contracts late last month to supply a total of 22,500 cattle to Sri Lanka worth almost $100 million.

Sri Lanka currently produces only 42% of its milk requirements and imports the remainder at a cost of $345 million a year.

The Sri Lankan Government has a long term commitment to increase domestic milk production.

Wellard dairy general manager Colin Webb said the major Australian exporter would be sourcing Friesian Jersey-cross heifers because the breed was best suited to the local environment and production systems.

Wellard expects to send five shipments over the next two years and will be sourcing them from around Australia.

The company will not disclose how much it will pay for heifers, saying it will be at market rates.

Wellard will source and supply 20,000 Friesian Jerseycross heifers in the next two years to service the larger of the two contracts signed, as well as providing management and veterinary support.

In a second contract, supported by Rabobank and Australia’s Export Finance Investment Corporation, Wellard will supply 2500 Friesian Jersey-cross heifers to a greenfields farm in Sri Lanka to be built by Wellard complete with sheds, milking parlour and machinery.

Part of the supply agreement also includes technical management and capacity building in-country, through employment and training of veterinarians and farm management advisers and supervisors.

The contracts build on the recent and successful completion of a previous contract to supply 2000 dairy heifers to the country, which also included the renovation of existing facilities and provision of management and education (see story, page 10).

Mr Webb said the previous 2000 cattle supplied by Wellard to the Sri Lankan Economic Development Industry had performed well in terms of both reproduction and milk production, and the dairy installed by the company was operating efficiently.

“All parties to the original supply agreement have been delighted with its implementation,” Mr Webb said. “We are therefore pleased to have been able to build on that relationship and the knowledge gain with a significantly larger contract.”

Wellard Asia business development director, Scot Braithwaite, said the contracts were not just the supply of cattle but include management, training and animal welfare education.

“Wellard is excited that it can play a role in aiding Sri Lanka’s agricultural and nutritional development and this once again proves that live export plays an important role not only for Australia farmers but also for farmers around the world,” he said.

GET SOCIAL WITH DAIRYNEWS READ THE LATEST STORIES FROM ANYWHERE CHECK OUT THE LATEST NEWS AND INFORMATION AT

www.dairynewsaustralia.com.au

DairyNewsAustralia DairyNewsOz

W E I V E R

P L CIA

E P S

They are on again!

AUSTRALIA’S PREMIER DAIRY EXPO

The IDW Dairy and Machinery Field Days Proudly supported by

Held at Tatura Park, Tatura on January 18-22, 2015

The December/January issue of Dairy News Australia, published on December 9, will contain a special preview of this premier event to be held in Tatura on 18 and 22 January 2015.

• The timing of the feature gives readers plenty of time to plan their days.

• It is a great opportunity for advertisers to get your message out to every dairy farmer in the country not just the local area!

• Special offer for exhibitors at IDW to receive discounted advertising 25% DISCOUNT ON ADVERTISEMENTS BOOKED BY EXHIBITORS AT IDW For bookings contact Chris Dingle on 03 5422 7217 or 0417 735 001 chris@dairynewsaustralia.com.au Booking deadline: .............November 26 Ad material deadline: .........December 2 Published: ...........................December 9 For exhibitor inquiries please contact Robyn Barber on 0418 656 082 or go to www.internationaldairyweek.com.au

DAIRY NEWS AUSTRALIA NOVEMBER 2014

WORLD NEWS // 13

Winter milk contracts keep new Fonterra UHT plant at capacity SUDESH KISSUN

FONTERRA IS offering winter milk contracts in the Waikato district to keep its new $120m UHT plant in year-round production.

The plant at Waitoa has eight lines and can produce 28 packets of UHT milk and cream per second; it needs 100m litres of milk every year.

The plant produces cream for food service clients in Asia and pineapple flavoured ‘kids milk’ for China.

Year-round milk supply

is needed for the high value, short shelf-life product.

Fonterra chairman John Wilson said some farmers are moving off the strict grass curve and milking cows throughout the year.

“This gives us an opportunity to work with these farmers. We have signalled we need more milk for this plant over the next 18 months,” he said.

“Farmers in Waikato will now plan for that.”

Winter milk suppliers are paid a premium and get “deferential” transport pricing.

They must spend heavily to commit to yeararound milking, most needing to calve two or three times a year to produce quality milk in autumn and winter.

In addition to a premium price for winter

milk, the suppliers need good returns from such a deal, Mr Wilson said.

“They are proud to see quality milk turned into high value products for export [but] also need to see returns coming in above milk prices.”

The Waitoa UHT factory was opened by New Zealand Primary Industries Minister Nathan Guy last month. It has five production lines with provision for three more lines.

No milk is stored at the plant. Fresh milk arriving

is immediately processed by heating for the required shelf life then turned into products.

Tetra Pak supplied the plant, which has a helixshaped accumulator that allows filling lines to keep running during minor

repairs and adjustments.

The plant is structured to double or treble production capacity if needed.

Fonterra CEO Theo Spierings said this type of plant is needed for Fonterra to stay competitive around the world.

LIFT PRODUCTION WITH TOP QUALITY PELLETS AND GRAIN MIXES Specialised grain mixes and pellets from Castlegate James will optimize milk yield and improve utilisation of pasture.

SUPER P is a high-protein pelleted stock feed specifically designed to supplement dairy cattle during times when pasture quality is poor due to dry conditions. Very palatable with a protein level of 15% and high energy formulation (M.E. 12.5 MJ/kg).

Pineapple flavoured milk hits sweet spot NEW ZEALAND milk sweetened with pineapple

juice is a best-seller to children in China, Fonterra reports.

UHT ‘Kids Milk’ is the first product of its kind imported into China.

It is made at Fonterra’s new $120 UHT plant at Waitoa which also makes Anchor cream for global food service clients.

Fonterra said in China last week the product was the top seller on the online shopping site Tmall; 1800 packs sold in eight hours.

Chairman John Wilson said Kids Milk meets the tastes of Chinese markets.

“We have to constantly innovate to meet the demand of our consumers,” he said.

The UHT plant will have five production lines when fully operational.

So far two lines are running and there is provision to expand to eight lines.

“We expect that to happen in a couple of years once we fill the existing lines and when there is demand,” Mr Wilson said.

Demand has recently surged for UHT products.

“We know with this plant we are two or three years too late because the market is changing rapidly.

“Any business case we looked at as recently as three or four years ago wasn’t supporting this sort of investment but now it is.”

SUPER E is an exciting high-energy pelleted feed, especially formulated for the dairy and feedlot industries. It contains a unique blend of starches, sugars, fat and fibre, and has been designed to perfectly complement grass, hay or good quality silage. Sweet taste makes it highly palatable, metabolisable energy of 12.7 MJ/kg, protein 9%.

To contact your local representative and find out how these exceptional grain mixes and pellets can assist your profitability call 03 8311 2200.

Castlegatejames.com.au

Quality Stockfeeds

AUSTRALASIA’S LARGEST AND MOST INNOVATIVE SUPPLIER OF CO-PRODUCT STOCK FEEDS

CJ11500_280x187_Super Pellets.indd 1

3/03/14 7:39 PM

DAIRY NEWS AUSTRALIA NOVEMBER 2014

14 // WORLD NEWS

Stop Fonterra expansion plan ing should be put on hold when the payout is below $7/kgMS. “They’ve got to think about the FONTERRA’S EXPANSION strat- farms which aren’t going to make it. egy should go on hold when its farmer There are going to be a lot of farms sold suppliers aren’t getting a good return, up at the end of this season.”

And it’s not just farmers: staff and says a shareholder who has tabled a remit for the cooperative’s annual local economies are already feeling the hit, he adds. “We’ve already had to put meeting November 12.

“They’ve just got to stop spend- one worker off.”

With 130 cows producing about ing for a while and consolidate a bit,” Murray Beach, Marlborough, said. “I 40,000kgMS off his farm at Havelock, $5/kgMS means “there’s feel they’re doing a lot of spendnot a lot of income” to ing while we’re not getting a lot meet ever-rising costs. of money.”

Mr Beach says he’s not Mr Beach said his remit totally against Fonterra’s isn’t a knee-jerk reaction to development plans, parthis year’s low forecast. Rather, ticularly those in New it reflects two poor years, folMurray Beach Zealand, but believes the lowed by one good, and now a cooperative should reduce debt (see “really bad year.”

“We should be getting more money sidebar) before embarking on more from Fonterra than the other milk com- expansion which is effectively at farmpanies are paying their suppliers but ers’ expense.

Asked if Fonterra is ‘living beyond its we’re not.”

Mr Beach’s remit, resolution 7 in means’, he says: “That’s what the bank Fonterra’s notice of annual meeting manager would tell us!”

Fonterra released its notice of document, says overseas investment and New Zealand development spend- annual meeting, including Mr Beach’s ANDREW SWALLOW

resolution, to NZX on October 17. It includes a letter from chairman John Wilson which refers to all resolutions but Beach’s.

In the explanatory notes to resolutions, a statement that the “board unanimously does not support [Beach’s] proposal and recommends that you vote against it” is highlighted in bold, the only bold text used in the document other than headings and remuneration figures.

Mr Beach says the board’s recommendation “isn’t cricket”. “Voters should be able to make up their own minds.”

He also says postal voting on such a resolution before the issue is debated at the annual meeting “doesn’t seem very democratic.” “I’ve been asked by [Fonterra] management if I want to go to speak at the meeting out of courtesy but by then 80% will have already voted.”

The notice also includes a shareholders council recommendation to vote against Mr Beach’s proposal, saying the council debated the resolution at its September meeting and unanimously voted not to support it.

Nestlé invests $39m in China Dairy Institute THE WORLD’S largest dairy company Nestlé has launched a $39m Dairy Farming Institute in northeast China.

One of Nestle’s biggest dairy investments, the institute will help modernise Chinese dairying to enable farmers to meet fast-growing milk demand in a sustainable way. It is located in Shuangcheng, Heilongjiang Province.

Nestlé says it has long sought to share technical knowhow and to improve dairy farming worldwide via training, responsible practices and partnering with stakeholders including governments and universities.

“We have a 25-year history of developing milk districts and the Nestlé Dairy Farming Institute is an extension of this,” says John Cheung, Nestlé China chairman and chief executive.

The institute reflects Nestlé’s belief that for a company to be successful over the long term and create value for shareholders, it must create value for society.

Nestlé has three milk districts in

China – Shuangcheng, Laixi in Qingdao and Hulunbeier in Inner Mongolia. It says the China market could almost double in volume by 2020 from current levels.

“Milk is becoming a vital part of the Chinese diet, so the institute will help China [develop] its dairy sector… in a sustainable and efficient manner,” says Hans Joehr, Nestlé’s head of agriculture.

Principles and practices for sustainable dairy farming will underpin the institute’s teaching curriculum and training activities, in addition to the expertise of Nestlé and its partners.

Nestle says the institute will help modernise Chinese dairy farming practices, allowing “responsible production of safe, quality-assured dairy products” via a wide range of dairy management disciplines, including animal health and welfare, milking hygiene, animal nutrition, environmental protection and socio-economic management.

The institute will include classrooms, laboratories, dormitories and three different sized training farms.

Feed hungry mouths, not hungry moths the diFFerence is u with success™ neo Nestle CEO Paul Bulcke.

‘Zero water’ plant model of recycling NESTLE HAS turned

• Excellent control of DBM with no record of resistance.

• Good residual activity.

• Selectivity to the main beneficial insects and predatory mites.

• A high level of environmental and user safety.

For more information call 1800 700 096 www.dowagrosciences.com.au

®™ Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

one of its dairy plants in Mexico into the world’s first ‘zero water’ factory.

New processes and equipment at the Cero Agua factory, in the watershort state of Jalisco, enable it to use recycled water from its dairy operations. Nestlé plans to do this in its factories in other countries.

The daily water savings equal the volume needed to fill an Olympic-size swimming pool or to supply the daily needs of 6400 Mexicans.

For 60 years the water available for each person in Mexico has declined drastically due to population growth, Nestle says. Saving groundwater was therefore important, said chief executive Paul Bulcke.

“In Mexico and around the world water is a vital and fragile resource.”

The Cero Agua dairy factory takes fresh cow milk, normally about 88% water, and heats it at low pressure to produce water vapour. This is condensed, treated and used to clean the evaporating machines themselves. Once the machines have been flushed out the water is collected once more, purified and recycled a second time.

The water can then be reused for watering gardens or cleaning.

The amount of groundwater the Cero Agua dairy saves each day – about 1.6m L – equates to about 15% of the total water used by Nestlé in Mexico each year in its factories and offices.

Such water savings are part of Nestlé efforts to promote the “conservation, treatment, recycling and water efficiency in our operations and among farmers, suppliers and other partners in its supply chain,” said Marcelo Melchior, who heads Nestlé Mexico.

The Cero Agua project, and others, have allowed Nestlé to reduce total water withdrawal in absolute terms by almost one-third globally over the past 10 years, while increasing production. Water use per tonne of product has fallen by half.

Worldwide, Nestlé aims to further reduce its water withdrawal per tonne of product by 40% by 2015, compared to 2005.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

NEWS // 15

Arla Foods gains foothold in Brazil Brazil; test results are looking promising. co-op Arla Foods has set “We also launched its sights on Brazil, buying feta, brie and camembert 8% of the largest dairy company Vigor Alimentos cheese. Together with Vigor, we see a great S.A. opportunity to create Arla swapped its 50% leading positions for stake in a joint venture our global brands Arla, with Vigor for the minority stake, becoming Lurpak and Castello,” Mr Andersen said. a voting member and an The deal with Vigor observer on Vigor’s board allows Arla to develop a of directors. new business unit within Head of Arla’s its operation, with a new international markets commercial executive Finn Hansen says its new officer. The unit will agreement with Vigor market and sell imported is similar to one with products Mengniu in When the and brands China. “Only through this time it EU milk Vigor’s hasn’t been quotas are channels. necessary for When us to find more abolished in 2015 the EU milk funding. quotas are “Vigor is a and milk in leading dairy production abolished 2015 and milk producer with increases, production a first class Arla increases, distribution Arla and network. We will look other have a history of to growth European cooperation and markets international it’s a natural outside dairy step for us to companies further build on the EU. will have to this partnership to explore the potential in look to growth markets outside the EU, hence the Brazil.” lure of Brazil as a means Latin America is a of raising the co-op’s milk growth region Arla has price, Arla says. watched for a year. Brazil Since 1986 Arla has is the largest market there been in a 50/50 joint and the world’s fourthventure with Vigor under largest dairy market, the name Dan Vigor. In growing 5% annually.

2013 Dan Vigor achieved It has 200 million sales of $58 million. people and a growing middle class. Arla aims to Under the new agreement Arla will exchange the accelerate its export of products to Brazil to gain joint ownership of market share in imported Dan Vigor for the 8% ownership of Vigor. brands.

Vigor is listed on the Steffen Andersen, Brazilian stock exchange responsible for Arla’s value markets, says Brazil and has annual revenue of $1.3 billion. It has is an attractive market 6000 employees and especially for branded 14 factories in Brazil. It cheese and butter.

Lurpak is the first Arla has 18 large distribution centres and 40,000 brand to be marketed in EUROPEAN DAIRY

2017 STRATEGY IN LINE with Arla’s 2017 strategy, its growth markets are China, Russia, Middle East and Africa, where it is spending heavily on a presence and increasing market share.

In the past year, Latin America’s large population, growing middle classes and increasing dairy consumption have presented new opportunities. Similar potential is noted in South East Asia and Australia.

retailers in the most attractive regions. Main product categories are powdered and condensed milk (36%), dairy (36%) and spreads (14%).

Vigor is partly owned

by the world’s largest food processing company, JBS SA. Arla has launched its Lurpak butter in Brazil, the world’s fourth largest dairy market.

L A I C E P S T R O REP FEBRUARY ISSUE 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 March 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.

BOOKING DEADLINE: February 10 MATERIAL DEADLINE: January 28 PUBLISHED: February 3 CONTACT: CHRIS DINGLE T: 0417 735 001 E: chris@dairynewsaustralia.com.au

DAIRY NEWS AUSTRALIA NOVEMBER 2014

16 // OPINION RUMINATING

EDITORIAL

After the FTA, what next?

MILKING IT...

Sacre bleu

Australian dairy farmers and processors know what it’s like competing on an unfair playing field against their international competitors.

Subsidies across the world mean a lower cost of production or a guaranteed wage regardless of output.

Now, the European Union wants to monopolise common cheese names like feta, parmesan and cheddar, meaning Australian cheese would have to be marketed under different names.

It’s a bit like French wine makers locking up the name champagne and forcing our wine exporters to call our local drop “sparkling”.

We can see the point of that – champagne is actually a district in France – but feta is simply a Greek word for “slice”.

Our feta is already branded “white cheese” in Korea, which has a free trade agreement with the EU. It might be a tactic our negotiators can slip into FTA discussions with China – maybe our competitors could be forced to label their milk products “white drinking liquid”.

Mind your manners

Welcome to New Zealand, where security guards ration out bottles of chocolate milk in supermarkets.

A new 750ml bottle of chocolate milk – a partnership between Whittaker’s and organic milk producer Lewis Road – has seen customer demand froth over.

The rich chocolate milk brand became an overnight success – so much that customers began queuing early for fresh deliveries, and some supermarket owners installed security guards when one customer tried to take the lot in one go.

With the equivalent of 21 teaspoons of sugar per bottle, rationing it is probably not a bad thing.

On the other hand

The realigning of State electorate boundaries in Victoria will have an influence on some seats in what will be a tight election this month.

Victorian Agriculture Minister Peter Walsh made light of it when speaking at a Rural Press Club of Victoria breakfast last month.

The State Agriculture Minister and former grain farmer used to have more grain farmers in his electorate, so would tell dairy farmers (with tongue in cheek) that complained about high feed grain prices that prices were fair and reasonable.

Now, with more dairy farms in his electorate, he’s changed his tune – telling grain farmers it’s a bit stiff when feed grain prices get too high.

A consummate professional in his field it would seem.

Advertising Chris Dingle chris@dairynewsaustralia.com.au

Hand-milking scandal

Scandal clouded the World Hand-Milking Championship at the Branzi Fair in Lenna, northern Italy.

Two competitors must hand-milk one cow each for two minutes: top volume wins.

The former Guinness World Record for handmilking is two litres in two minutes but this was smashed in Italy.

Controversy reigned!

Gianmario Ghiradi from Malonno, Brescia, Italy miked an astounding 8.7l from Mirke the Cow. Very impressive, it would seem, but last year’s champion, Maurizio Paschetta, stayed out, insisting the absence of checks for doping in the cows made it unethical for him to enter.

“At this level I would have expected strong antidoping checks on the cows and milkers to protect the animals and guarantee transparency of the top positions,” he told reporters.

0417.735.001

Editor Stephen Cooke 03.9478 9779 or 0427.124 437 editor@dairynewsaustralia.com.au

Head Office Top Floor, 29 Northcroft Street, Auckland 0622, New Zealand

Phone +64.9.307 0399 Fax +64.9.307 0122

photographs are subject to copyright and may not be reproduced without prior written

Publisher Brian Hight Production D ave Ferguson Becky Williams Sub Editor Pamela Tipa

Dairy News Australia is published by RNG Publishing Limited. All editorial copy and

IT WAS good to hear the man at the pointy end of the Free Trade Agreement negotiations with China remind the dairy industry that a successful outcome is only the start.

Federal Trade Minister Andrew Robb told those at a forum in Larpent, near Colac in western Victoria, that an FTA was important, but so is the necessary investment to take advantage of it.

Robb said a satisfactory FTA with China was one thing, but further investment needs to be made in the industry to enable Australia to stay ahead of its international competitors.

We are not alone in eyeing off the huge opportunities China presents.

A successful outcome would be extremely beneficial for Australian dairy and other commodities, and our agricultural lobby has pushed hard for that.

The NFF, Australian Dairy Farmers president Noel Campbell, Dairy Australia and Robb and members of his team have racked up countless frequent flyer points with their recent trips to China.

Robb told the Larpent forum building a relationship with China, as New Zealand has successfully done, is crucial, and Australia has been doing that.

We will soon find out whether the work has paid dividends.

Even if we achieve the “NZ plus” deal Robb and the Government have been spruiking, it’s only the first step in a new game.

How does Australia capitalise on any gains achieved?

That’s the next question that must be addressed and it’s going to take at least as much energy, thought and vision as what has been put into the free trade basket.

Dairy Australia is assisting Austrade and other parties who are trying to coax as much as $16 billion of foreign investment into the farm sector.

Granted, it’s an imposing figure when the current industry is valued at $13 billion, but we have little choice.

DA says that figure is needed by 2020 to return Australian production back to levels of a decade ago.

The ADF and other industry stakeholders will soon meet to put some flesh on the bones of the Australian Dairy Vision.

There is a vision for the future but discussions will now ensue on how exactly this will be achieved and how it will be funded.

There has been much discussion on the FTA – and a lot of work gone into realising it – but regardless of the outcome, the journey to take Australian dairy to the next level has only just begun.

Published by RNG Publishing Ltd Printed by Shepperton News

permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of RNG Publishing Limited.

WWW.DAIRYNEWSAUSTRALIA.COM.AU

Postal address PO Box 331100, Takapuna, Auckland 0740, New Zealand

DAIRY NEWS AUSTRALIA NOVEMBER 2014

OPINION // 17

Is national production of 15 billion litres realistic?

WITH CONSTANT media attention on booming prospects for dairy and an apparent tidal wave of investment about to swallow our industry things have never looked better, right?

Our “dairy leaders” have had meetings, gone to Canberra and paraded a few cows around Parliament house lawns to spread the word about their Vision for a “Prosperous” industry.

Dairy Australia’s managing director, Ian Halliday, was quoted by ABC rural on a trip to Tasmania in early July stating that the dairy industry wants to grow from 9.2 billion litres to 15 billion Litres.

Apart from Murray Goulburn managing director, Gary Helou, who wants more milk flowing through his factories I am not sure who the other industry players Ian talks about are.

Is the Vision for a “Prosperous” 15 billion litre industry a realistic proposition or has the cart got ahead of the horse?

First up it always pays to look at the market you want to supply. We have 23 million of the wealthiest people on the planet in our own backyard and they consume 60% of our current production. That’s a pretty good starting point.

The domestic market has the ability to pay at least $6.50/kgMS (if our milk buyers choose to pass enough dollars through to the producer) and we can all make money at that price, can’t we?

Looking at our remaining production, we have a stable export destination in Japan which, even if the recent FTA wasn’t overly exciting, is a profitable market for dairy products.

Then we have our friends in China.

China’s domestic industry produces around 38 billion litres of milk and it will need to import milk for some time yet, but it has proven this year what a volatile trading partner it can be.

Our recent blue with Russia has added to world volatility.

OPINION JAMES STACEY On top of this, our competitors in New Zealand continue to grow and expand their presence in China, while the sleeping giant of world milk production, the US, now fuelled by cheap corn and Dairy Margin Insurance, are now pumping surplus product onto the market. EU quotas finish next year too.

China will be a large importer of milk but has already caused volatility in world markets.

New Zealand is world class in the efficient production of bulk commodities.

With a challenging domestic market, and a volatile export market, is another six billion litres really a viable proposition?

To grow an industry by 50% it would help if you had a plan and at this stage I haven’t seen one.

The next thing you need is demand for the product which we have established is growing but on the export front is, and will remain, very volatile.

Next up you need profitable dairy producers willing to commit to growth.

We had a fair few of them during 2013/14 year but unfortunately the numbers will drop off in 2014/15.

The banks have been a bit touchy on dairy since the GFC and many young enthusiastic farmers are now a bit older and still trying to dig themselves out of the property value collapse in equity.

Gun shy bank managers and wiser

DAIRY NEWS ON THE GO CHECK OUT THE LATEST NEWS AND INFORMATION AT

www.dairynewsaustralia.com.au Available every month

just look for the arrow!

and more cautious heads are look- ities to handle the extra milk? I have ing at safe bets like steady, profitable three different company tankers drive growth before rolling the dice on mas- past my place while most major factories of scale in the country have been sive growth.

Maybe the tidal wave of interna- around for a while.

While the NZ industry is world class tional investment will come rolling in but we will let history be the judge on in the efficient production of bulk commodities, the reality is we are only just that. in the game.

Even if farmers get I believe the Auscashed up to grow, do we “Even if tralian dairy indushave the available resources farmers get try can grow steadily of land, rainfall, cows and cashed up on the back of market labour? Repeatable seasons signals which deliver make for stable dairy farm to grow, do profitable returns to businesses and apart from we have the farmers. some regions in Tasmania, available Two to three perI think the rest of the counresources of cent compound try is light on NZ-style reliland, rainfall, growth may get us to 15 ability. billion litres but it will There are elements cows and be in 25 years’ time. within the business a farmer labour?”.

Some in our induscan control, like breeding better cows and training staff, but is it try need to take the blinkers off and deal with reality, not delusions of grandeur. enough to fuel the forecast growth?

Do we have highly efficient logistics • James Stacey is a dairy farmer at Langand bulk commodity processing facil- horne Creek, South Australia.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

18 // MARKETS

Global dairy regions feel pressure on feed prices AMY BELLHOUSE AND JOHN DROPPERT

PURCHASED FEED

costs are a major influence on farmgate margins across many dairy exporting regions, and therefore a key driver for global dairy supply.

After being repeatedly downgraded throughout the year, recent estimates put the Australian 2014/15 wheat crop at around 23 million metric tonnes (MMT) (Rabobank) to 25MMT (USDA) - compared to an estimated 27 MMT last year.

A sobering trend, but exposure to international grain markets has provided Australian dairy farmers with some relief, as expectations of good global feed grain availability have depressed global markets since September.

While good overseas supplies may help lessen the pressure on domestic feed grain stocks through lowering the prices exporters are willing to pay, they are also likely to support continued strength in northern hemisphere milk production.

The US is the ‘poster child’ for production systems driven by intensive feeding.

According to University of Wisconsin data, purchased feed accounted for, on average, 52% of total input costs for Californian

dairy farms between 2006 and 2010.

CBOT December corn futures rose during October, but with harvest underway, they remain relatively low, supporting milk:feed price ratios in favourable territory even as milk prices come under threat from falling commodity values.

Consequently, a strengthening supply response is being observed in the US, with September data from the USDA indicating milk production 4% higher than September 2013; bringing year-to-date growth to 2%.

Abundant feed grain will help the US industry in the face of intensifying dairy commodity-driven headwinds, likely keeping production strong into the first half of 2015.

By its very nature, the European industry is much more diverse: purchased feed costs for the top five milk producing states range from around 25% of operating costs (Poland) to in excess of 50% (Italy).

Feed expenses thus represent a significant proportion of operating costs – and falling grain prices are helping cushion margins.

European milk production is now expected to reach a record 151 million tonnes (up 4%) in 2014, despite the impact of falling dairy commodity mar-

kets beginning to reach Given the seasonal feed ‘made, purchased the farmgate. nature of most NZ producor cropped’ represented The USDA revised tion systems, world grain only 20% of a typical New expected EU wheat proprice fluctuations are most Zealand farm’s workduction up 3MT to relevant to whether puring expenses in 2011-12 154MMT in October (com- (according to DairyBase), chases of supplementary pared to feed will prove 143MMT economic later last year), the season, Abundant feed grain will help in and cheap or whether grain con- the US industry in the face of unfavourtinues to intensifying dairy commodity- able weather come out will trigger driven headwinds, likely of France. dry-off of keeping production strong into early Upward herds. pressure is the first half of 2015.

With a emerging Farmgate Milk however: Price forecast international benchmark suggesting an even smaller of $5.30/kg MS – and most grain prices have risen analysts tipping this will share for purchased feed in recent weeks, and UK fall further – the economalone.

Nov-14 feed wheat futures ics are less likely to stack New Zealand relies on have followed suit. up in 2014/15. international grain marThe Black Sea wheat At around 5% growth to kets, producing around crop is generally thought September, milk produc1 million tonnes of grain to be considerably smaller annually, and importing in tion growth in New Zeathan expected, also reduc- the region of 300-450,000 land has so far outpaced ing grain available for earlier expectations. tonnes, as well as palm export from the region.

However, a slight lesskernel expeller meal for Generally recognised use in stock feed (NZ Min- ening in the pace is still as representing ‘the other expected, with full season istry for Primary Indusend’ of the scale, net forecasts in the range of tries).

ferTiliTy heaT deTecTion

MOST ACCURATE AND RELIABLE HEAT DETECTION SYSTEM INDICATES THE BEST TIME PERIOD TO A.I YOUR COW GRAPHS ACTIVITY DAILY AND OVER THE PAST 50 DAYS REDUCES DAYS OPEN IN YOUR HERD THE EYE OF YOUR FARM EVEN WHEN YOUR ARE NOT LOOkING!

PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com

The US is the ‘poster child’ for production systems driven by intensive feeding.

3-4% growth, relative to 2013/14.

Back home, data from the Victorian Dairy Farm Monitor Project shows average expenditure on grains, concentrates and other feeds accounted for 29% of cash costs during 2013/14, demonstrating the potential for a spike in grain prices to impact on margins.

Milk production is currently tracking around 3% above last year in data to September, however deteriorating seasonal conditions are increasingly likely to weigh on production heading into summer.

In particular, dry conditions in southwest Victoria are already undermining pasture production and cutting into crop yield potential.

Feed prices remain a challenge in northern Australia, however yields and quality of early harvested grains have generally been

acceptable, while sorghum planting will be supported if rains forecast for early November eventuate.

Barley is coming under pressure from exporters, but good news for feed buyers is that in parts of New South Wales screenings have been a problem.

In contrast to the virtually universal dive in global dairy commodity markets in recent months, differing exposures to, and movements in, feed input markets are producing a variety of pressures across the major dairy exporting regions.

To a large extent, it is these cost changes and the ability of individual farmers to either seize opportunities or take action against threats, that will determine the speed and severity of the milk production response to come.

• Amy Bellhouse and John Droppert are industry analysts with Dairy Australia.

Dairy NewS AUSTRALIA november 2014

markets // 19

How are the world’s dairy farmers faring?

THIS YEAR has seen a dizzying turnaround in the global dairy market.

After commodity returns reached record highs as 2014 opened, milk powder prices have almost halved in US dollar terms, while butter and cheese have lost about 30% of their value Here at home, dairy companies in southern regions have signaled there will be no advances on opening prices and are grimly holding on to deliver what seemed so achievable in June, as export returns spiral downwards.

Producers in fresh milk regions are looking at slight increases. On present indications, farmgate prices may be down 11-13% on average for the 2014/15 season, a significant hit to the top line for Australian farmers, with the pain concentrated in export-exposed regions.

So how are other dairy farmers around the world faring?

Just over the ditch the price signals are much stronger – Fonterra’s current forecast payout for 2014/15 would deliver a massive 37% hit to dairy farmers’ top line – and many analysts are predicting the end-result will go even lower – to prices not seen for the best part of a decade.

The ability to manage margins will be critical, and the opportunities to do so will be highly dependent on climate.

While production has started strongly, NZ farmers are unlikely to invest in supplementary feed to extend their season in a year like this, and the possibility of drier El Nino conditions would further constrain production.

In contrast, US farmer margins are actually positive as the domestic market for dairy products has remained

fresh agenda jo bills relatively strong.

US supply responded more slowly to positive international market signals, and production remained subdued for the first quarter of 2014.

However, increased US export activity led to lower butter and cheese stocks, elevating wholesale product prices at home, and keeping farmgate milk prices rising through to September.

The inevitable correction arrived for US wholesale prices in September, and October farmgate milk prices tracked down slightly, however 2014 milk prices will remain relatively strong overall.

The USDA is forecasting a 20% reduction in the all milk price for 2015.

So while signals to US farmers are slowly turning negative, the wall of US milk many analysts were expecting earlier in 2014 looks to have been delayed rather than eliminated.

This is because income over feed costs – a critical measure of US farm margins – is still hovering at its highest level for around four years.

A bumper corn crop is sending feed prices south, and will buffer the impact of lower milk prices on profitability.

Whether the price signal farmers receive will be sharp enough to halt the build-up in cow numbers and dampen milk output growth will be a key supplyside question for 2015.

In the EU, production has been strong through most of 2014, up 5% for the January to August period, while domestic market conditions have been less robust.

Average EU prices peaked in February and have been trending down ever since, and were 8% lower by August.

The Russian ban on agricultural

NZ farmers are unlikely to invest in supplementary feed to extend their season this year.

imports in August has had a direct and significant impact, particularly on the Baltic States and Finland, but there are repercussions for the wider EU. Emergency funds are being directed toward those states most affected by the Russian ban.

Private storage aid was opened in response to the ban – and had to be halted after six weeks in response to “disproportionate usage from countries who do not traditionally export to Russia”!

Milk production that would have been exported to Russia is – where possible - being directed to an already over-supplied powder market, as local consumption is not growing enough to absorb large volumes of extra cheese.

In the UK, where milk production has been strong, but the market is finely balanced, there have been a series of farmer protests against significant cuts to prices.

While milk price signals for EU farmers are certainly more negative, they too will benefit from lower feed costs.

In fact, UK maize prices have dropped 22% since last year. Many farmers in more favoured regions of Ireland, Netherlands and Germany are in the process of gearing up for quota removal in April 2015, they also run the risk of copping super-levy fines.

Milk production is expected to slow from 2014 level, but just how much could depend on quota status leading into next year’s peak.

So while the current international dairy market situation is affecting farmers in all major production and exporting regions, the impacts to date have been quite variable – reflecting a range of exposures to export commodity returns and variable feed inputs.

• Jo Bills is a director of Melbourne-based firm Freshagenda, a specialist food analysis, advisory and consulting business.

Index loses ground in October FRESHAGENDA’S AUSTRALIAN export index fin-

ished October at 145, losing 20 points over the month.

The 12% fall in the index was mostly down to lower cheddar and butter prices.

Given the share of cheese in Australia’s export mix, the 15% drop in cheddar price had a major impact on the index Butter suffered the next biggest drop, losing 13% in value over the month. Butter prices had been holding up relatively well, but this month’s drop mirrors a sharp correction on US markets, where lower stocks and solid demand had been keeping wholesale prices well above international benchmarks. The butter party

appears to be over now, with greater product availability dampening prices.

Whole milk powder prices were down 8% in October, as New Zealand milk production started the year strongly and Chinese demand remained muted. The latest GDT results show stronger prices from March onwards, as NZ production heads into its seasonal low – given the outlook for payouts, there is likely to be limited supplementation to extend the season this year.

Skim milk powder prices fell 5% for the month, as EU milk diverted from Russian cheese exports is directed into SMP and butter. Strengthening production in the US will

also be keeping a lid on SMP prices for the foreseeable future.

The Aussie dollar traded in a narrow range between 87 and 88 US cents during October, and finished the month unchanged.

The index is a lead indicator of average export returns - based on spot prices, currency movements and export mix. The index measures current market sentiment, but in reality it takes 3 to 6 months for prices to translate into actual returns, depending on the timing of contract negotiations. It was set to 100 in January 2000.

For weekly updates, visit http://www.freshagenda.com.au/

DAIRY NEWS AUSTRALIA NOVEMBER 2014

20 // BREEDING MANAGEMENT

Trial proves fresh sexed semen better RICK BAYNE

AN AUSTRALIAN-FIRST study showing fresh sexed semen is better for dairy reproduction could revolutionise how farmers use it to improve their herds.

The study conducted by the Warrnambool Veterinary Clinic has found that when fresh sexed semen is used, the results are better for farmers than frozen sexed semen.

Dr Jon Kelly, director and senior dairy veterinarian with the Warrnambool Veterinary Clinic, says the results could be a “game changer” for Australian dairy farmers.

“More reliable results mean more people will start using sexed semen,” Dr Kelly said.

“We have used it in heifers in a FTAI program and in cows, and it is better,” he said. Fresh sexed semen gives consistently higher conception rates then frozen sexed because the semen is not

damaged by the freeze/thaw process.

The Warrnambool Veterinary Clinic has released the results of fresh sexed semen conception rates and the improvement seen when compare to frozen sexed semen.

Speaking at a ‘Getting the Most Out of Sexed Semen’ FarmChat workshop on November 6, Dr Kelly said frozen sexed semen was a compromised product that yields variable conception rate results.

“Fresh sexed semen is now available, which theoretically should be better than frozen,” he added.

“Sexed semen has been around for a number of years with the obvious benefits of more heifers being born, but many dairy farmers choose not to take full advantage of its potential to increase heifer numbers and maximise its potential.

“We believe the information we have gathered will help dairy farmers make better decisions.”

Dr Kelly told the FarmChat forum

that farmers need to ensure sexed semen insemination is done correctly to increase chances of getting more animals pregnant.

“Due to the decrease in fertility of sexed semen, it is vitally important that animal selection and management, and semen handling and insemination are the best it can be,” he said.

Individual conception rates for fresh sexed semen in Warrnambool Veterinary Clinic dairy heifers in 2014 show that conception rates of up to 70% are achievable, but 55% was the overall average. This compares to a 40% conception rate with frozen sexed semen.

He said the biggest factor in the success of a sexed semen pregnancy in a heifer was achieving critical mating weight of between 55-60% of adult weight. “A bigger heifer is more likely to have reached puberty and be more sexually mature, so underlying fertility is maximised,” he said.

Dr Kelly said synchrony programs can be used to help minimise manage-

Dr Jon Kelly

ment interventions, and for FTAI programs, can alleviate the heat detection accuracy risk.

An important factor that determines the success of FTAI programs is that the correct hormone, dose, route of injection and timing is adhered to.

Prostaglandin (PG) programs make a heifer show heat can give good conception results to sexed semen. Accurate heat detection and consistent timing of AI are essential for a PG program, he said.

Dr Kelly said cows are generally less fertile than heifers when using sexed semen.

“Because early calving cows are the key to a herd’s fertility the next season, I believe a synchrony program is essential when using sexed semen in cows, other than when individual cow are being selected.”

Selecting only the most fertile cows for joining with sexed semen is critical.

Despite the relative success of fresh sexed semen, Dr Kelly said “there are disadvantages with fresh semen, which include the logistics and sire selection, so the holy grail remains a frozen sexed semen product that behaves the same in cows and heifers as frozen conventional semen.”

Heat tolerant cows bound for the tropics A NEW Zealand company has developed a heat-tolerant cow that produces more under heat stress.

Developed by a genetics team led by Dairy Solutionz Ltd, Hamilton, NZ, the composite breed will be used on large-scale dairy farms the company is now

helping set up in the US, Colombia and Ecuador, said chief executive Derek Fairweather.

Governments and land owners are also involved.

Demonstration farms will open in Colombia and Ecuador by the end of the year.

Cash from Callaghan

Innovation is helping fund the project.

Some of the breed’s origins are based on work at the University of Florida where researchers had bred a recently discovered ‘slick locus’ (originating from Senepol cattle) into American Holsteins. This better enabled the new

healTh sick cow alerTs

Derek Fairweather with Kiwipole Slick Grazer, who is 50% Scotts Comanche.

RUMINATION, EATING, TEMPERATURE AND ACTIVITY MONITORED HOURLY DETECTS & ALERTS SICk COWS BEFORE MILk PRODUCTION DROPS LOWER LABOUR & DRUG COSTS, FOR MORE MILk, MORE MONEY FIND SICk COWS FAST MONITOR EATING TIME AND RUMINATION

PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com

American composite breed to regulate its body temperature while maintaining milk yield under heat stress.

“The Dairy Solutionz team has now taken the slick locus and introduced it into New Zealand pasture genetics for the first time as part of what is now a seven-year program.

The cows will be branded Kiwipole. The company has a range of cows and bulls all containing DNA proven as holding the slick locus.

Research earlier this “The Kiwipole dairy year by Serdal Dikmen and cow… has great heat tolthe University of Florida erance coupled with the indicated best pasture “This creates up to 2L/day genetics in improved the world,” an animal yield said Dr Vish ideally suited milk per animal Vishwanath, through genetics con- to maximise production in better heat sultant to tolerance.

Dairy Solugrass-based, tionz. “This tropical dairy tiply“Multhis creates an systems.” increased animal idemilk yield ally suited to over a large or national maximise production in grass-based, tropical dairy herd and the end result is a significant prize,” Mr Fairsystems.”

weather said.

The first Kiwipole bulls – Kiwipole Slick Grazer son of Scotts Comanche, Efficient, Supreme and Super – are ready to make to order.

Many cows have been bred with Kiwipole genetics over the past few seasons and Dairy Solutionz has begun a three-year proving program.

Since 2007, Dairy Solutionz has integrated bestof-breed technologies into its large-scale offshore pastoral farms.

Dairy NewS AUSTRALIA november 2014

breeding management // 21

Assess functional traits to save future trouble Jeanette Severs

WHEN GRAEME Hopf

pulled open his well-travelled suitcase of bones, at a Maffra field day recently, participants didn’t know what to expect.

Mr Hopf, an internationally acclaimed cattle judge and classifier, became the most-talkedabout presenter of the day, with his presentation on the functional traits of a dairy cow.

The field day was organised by Livestock Improvement and attracted dairy farmers from Koonwarra and Stony Creek in South Gippsland as well as local producers.

The large crowd of participants heard from four presenters about cow anatomy and health, hybrid vigour, fertility, profit drivers and managing financial volatility in the dairy industry.

In the first part of his presentation, Mr Hopf talked about the cow’s pelvic girdle and how cows that lay down detrimentally affect their pelvis, udder and leg health.

This leads to loss of production.

He warned against buying cattle out of feedlots, “because they spend a lot of time lying down”.

“Putting cattle in feedlots is dangerous. When drought hits, you’re better off putting your cows on agistment,” Mr Hopf said.

He used his collection of leg bones to explain how low heels on the cow

effects ligament damage which leads to lameness – and, again, loss of production – and talked about the importance of the hock.

“The hock is one of the first areas where deformity is going to show up from injury higher up the leg,” he said.

He warned dairy farmers against choosing cows with high shoulders.

“With tall cows, you find withers sit up higher than the spine. Therefore the shoulder blade is sitting up straight,” he said.

“Once you straighten that shoulder, weight transference moves down the spine to the back legs, placing undue stress on these joints.

“Correct placement of the shoulder bone allows even distribution of weight between front and back legs – an angular shoulder blade is needed for this to happen.”

Mr Hopf agreed that a straight line along the spine “is pleasing to the eye” for competition judging but not well for the animal’s health.

“We need to start saying what shape a cow should be for optimum production and for survival – not for judging in the arena,” he said.

He praised cows with “ribs out past their hiplines” pointing out how the space allowed for a greater rumen area.

“I want to see cows wide rather than tall,” he said.

“When times are tough, they need to turn feed into milk. A wide rumen area

Graeme Hopf selected this cow from field day host Alex Macarthur’s herd as an ideal milking cow - not particularly tall, angular shoulders, wide rib cage, lots of room for the rumen, high pin bones in the pelvis and a good-sized udder sitting well under the pelvis.

allows them to eat more and produce more milk.

“The commitment is so great with our land values today that we have to get the best from production.

“And we want to encourage people in dairy farming, so we need to share knowledge to keep our farms viable.”

Hybrid vigour got the

tick of approval from Mr Hopf, once the presentation moved into the paddock.

“These sorts of cows are going to help you make

money out of farming – cows with width, weight and good pin bone formation,” he said.

Participants spent some time with Mr Hopf

selecting cows out of the host farm herd and discussing conformation, ease of calving, placement of udder in relation to pelvis and general health.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

22 // MANAGEMENT

Mills leaves cows to make own choices MANY DAIRY farmers in the Gippsland region of Victoria are finding themselves caught in the same position Trevor Mills was a year ago.

He was grappling with issues of farm scale on his 180-cow unit, trying to balance a need to increase the flexibility of his time against the economic realities of volatile milk returns and labour costs.

“We had done the maths on our options, including share farming, leasing or employing labour. Unfortunately none of it really added up to leave enough in it for us as owners,” he said.

Add in the complications of some health issues, and it was clear the choices were narrowing to possibly even having to exit dairying altogether, not a prospect Trevor or his wife Anne-Marie were particularly keen upon.

“I had never seriously considered a robotic milker as an option, thinking that was more something the next generation could consider, but if we were going to stay on the farm, we did not have a lot of viable options open, and

robotics was one of the most obvious.”

His decision coincided with the launch of the GEA WestfaliaSurge MIone robotic milker for the first time in Australia. Mr Mills acknowledges he was cautious about becoming the test farm for the technology, but after six months is starting to enjoy the flexibility and insights the system delivers.

While not the first robotic system developed, Mr Mills liked the configuration of the MIone, and opted for a system with three “boxes”.

He appreciated a layout that features cow access on one side, and easy operator access on the other.

He also liked the capacity of the MIone to accept additional boxes for cows without having to invest in significant additional technology to power and manage those additions.

A key point of difference for the MIone system is a single robotic arm that moves between the boxes to work with a specially developed 3D camera.

The camera plays a key part in co-ordinating the

WHO:

Trevor Mills WHERE:

Drouiin South WHAT:

Automatic milker

position of individual teats and determining where to place the cups at the start of milking. It effectively guides the teat cups on the milking rack to the cow’s teats The constant monitoring provided by the camera provides a more human like response to unexpected events, like cups being kicked off, with a rapid movement back to the problem box to correct the problem.

Mr Mills spent the first six months getting himself and his herd accustomed to the system, and is starting to see how his herd are responding to the freedom choosing their own milking times brings them, and

The smarT sensor

Trevor Mills

him.

“We would have the majority of cows, about 75%, milking twice a day, and about 15 cows on once a day, with the rest three to four times a day.”

He has noticed the cows that are limiting themselves to once a day are only producing about 15 litres a day at spring peak, but when offering themselves twice a day that jumps to 22-25 litres.

“I am starting to build a picture of performance, and we will make some decisions at the end of the season about what we will do with those once a day cows.”

Meantime his top cows that produce over 40 litres being milked three times a day will sometimes leap to 50 litres when they come in for a forth milking over a 24 hour period.

Overall he believes production has not suffered significantly, and the MIone’s capacity for recording means he is get-

Trevor Mills is the first to install the MIone robotic milker in Australia.

ting a better profile on his herd’s health.

“Conductivity testing highlights those cows that are getting mastitis, and the MIone will separate them out to check.

Identifying and treating cows is that much simpler. Lameness is also reduced because the cows are coming in on their own time and own pace.”

His herd is enjoying a bulk somatic cell count of 150,000 this season.

The farm has been configured for eight hour grazing, with three laneways featuring drafting gates to control cow movements.

Mr Mills admits after 17 years of conventional milking it has taken him some time to get his mind around accepting that cows will determine the milking period.

“I have learned it’s sometimes better to just leave the machine and the

cows to it, and walk away!”

A text alert system provides him with updates on any technical issues, and these have proven to be relatively easily fixed in the early stages of operation.

Being solo on the farm, Mr Mills says he now appreciates not having to interrupt another job at the conventional milking time, and is starting to enjoy the shift in perspective and time management the MIone brings.

24/7 monitoring all in the cow’s ear

SIMPLE – CLIPS STRAIGHT ONTO THE NLIS TAG MONITORS COW RUMINATION, EATING, LYING, TEMPERATURE AND ACTIVITY HERD HEALTH AND ACTIVITY ALERTS SENT HOURLY TO YOUR SMART PHONE SAVES YOU TIME AND PROVIDES THE BEST COMPREHENSIVE HERD AND INDIVIDUAL COW OVERVIEW 7-10 YEAR BATTERY LIFE

PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com

Since choosing their own milking times, about 75% of the Mills’ herd milk twice a day, with others once a day and some three to four times a day.

Dairy NewS AUSTRALIA november 2014

management // 23

One eye on production, one eye on margin Jeanette Severs

WHEN YOUR herd produces 2200

kg milk solids (MS) per hectare, off 180 ha, you might think that is enough; but Tinamba sharefarmer Hans Van Wees is still looking for improvement.

That improvement is not just increasing production but in reducing costs of production too.

About two dozen dairy farmers heard about Mr Van Wees’ profit drivers at a field day at Maffra, organised by Livestock Improvement, at the end of last month.

Last year Mr Van Wees produced 2200kg milk solids (MS) per hectare from 750 cows; this year he is looking to improve production and increased the herd size to 800 cows.

He spoke to field day participants about his herd management methods and costs of production.

Maintaining body weight on the cows was a hard lesson he learned in a bad year.

“We maintain body weight on the cows to ensure condition … because it’s hard to get it back on them,” he said.

He keeps 25% of heifers each year and runs them as a separate herd, to prevent bullying from the older cows and giving them the best chance of growing and production.

“The cows are milked first then the heifers. There’s less competition for the young herd for feed and water, they spend less time on the concrete pad and they get preferential treatment and feeding if necessary,” Mr Van Wees said.

His herd are seasonal calvers in a quick calving pattern. He synchronises yearling heifers and cows and over a period of eight weeks joins them using AI; then follows up with bulls at a rate of 1:30.

All are pregnancy tested and empty

Who:

Hans Van Wees Where:

Tinamba What:

High production

cows are culled ruthlessly; cows that show a tendency to mastitis are also culled.

Last year he sold 5% of the herd as empty cows, 75 late cycling cows were sold in-calf and 50 cows were sold as choppers.

Between 230 to 250 heifer calves are kept as replacements each year.

“We make decisions early and we don’t keep empties,” Mr Van Wees said.

“I have a three strikes policy with mastitis – then they’re culled.

“Record keeping is very important to us, so we can trace back our actions and management.

“For example, using bulls enables us to sell late calving cows rather than keep them, which is another income source.

“This enables us to continue our tight calving pattern.”

The herd is dried off at the end of June and milking begins on August 1 for heifers and August 10 for cows.

“Over a 280-day lactation, last year 520kg MS/cow was sent to the factory,” Mr Van Wees said.

“This year we’re getting up to 2.1kg MS/cow a day, consistently averaging 1.9kg MS/cow.

“This year we’re grazing 7ha more pasture and aiming for 400,000 MS per year production – or more.

Hans Van Wees

“There’s still room for improvement.”

Cost of production (COP) in 2013 was $4.50/kg MS for a clear profit of $1 million. This COP included repairs and maintenance.

Feed costs are closely monitored and have been significantly reduced in recent years with capital investment in a 10 megalitre effluent dam that feeds into irrigation channels.

All effluent water is used on the farm, currently fertilising half the property; a mixture of 40kg/ha ammonia, 40kg/ha potash and 40kg/ha urea is used on the remaining pasture.

All fertilising follows the cows’ grazing pattern.

Other gains in COP have been made in pasture and making hay. Last year, Mr Van Wees made 900 tonne of pasture silage and so far this year has fed out 500t.

“We’ve fed out 500t silage at a rate of 1t/cow and that’s been a saving of $40,000 already.

“The effluent is used for irrigation and is the cheapest, sustainable fertiliser – it grows a lot of grass,” Mr Van Wees said.

“When we first installed it, we saved $4200 per annum but now we’re saving $10,000 pa on fertiliser costs.”

Supplementary feeding is only used after the pasture has been eaten.

He buys in a vegetable by-product – sweetcorn waste – from January 1 to April 30, fed straight onto the paddock at a rate of 500kg/cow dry matter (DM) per year.

He feeds a mix of wheat and canola meal from mid-November to April 30 and wheat and maize in spring.

“We supplementary feed at a rate of 1.8t/cow – 300kg of corn as maize, 150kg of canola meal and 1.35t of wheat,” Mr Van Wees said.

The corn costs $390/t, canola meal is $410/t and wheat is $330/t.

“This year we’re feeding a bit less and using pasture silage and getting the cows to eat more grass, as we try and

maintain margins,” Mr Van Wees said.

Using a crossbred herd for the past 20 years, Mr Van Wees has noticed a low conception rate, which does worry him.

“So we’ll have to look at improving genetics to improve fertility,” he said.

“But up to now I’ve been happy to work with hybrid vigour.

“What it comes down to is, our cows make milk.

“In the last financial year, they delivered a clear profit of $1million.

“We are always looking at ways to get more grass into the cow, less supplementary feeding, for more income.

“But we’re playing around at the edges, trying to get incremental improvements out of the system we use.

“We’ll try and improve drainage in some pastures.

“And we’ll learn successful management techniques from other farmers.

“We’ll maintain choosing not to milk through winter.

“There’s still room for improvement.”

ALL THE SMALL THINGS ADD UP WITH THE FAIR GO DAIRY FEED PAD Our customers have found:

WN074_90x260_SF.indd 1

Better utilisation of lush pasture

•

Much less mud and pasture damage

•

Better butterfat test – use of fibre

•

•

Increased production

•

Improved conception/retention rates

•

Much less feed wasted Saves time and labour - Fill every 3 days Use whole rolls, big squares, silage or fibre

•

Gives “battlers” a Fair Go

•

No tractors or wagons tied up

•

Lifts the tail out of the mob

•

Much Smaller, Shorter and Less Expensive Better feeding, production.

Than higher You Think!

•

Call 1800 808 685 for a free information pack, DVD or consultation.

www.wastenot.com.au 7/06/11 9:01 PM

DAIRY NEWS AUSTRALIA NOVEMBER 2014

24 // ANIMAL HEALTH

A breath of fresh air GEMMA CHUCK

RESPIRATORY DISEASE in calves and

young stock can occur sporadically, as isolated cases, but also in outbreak situations.

The effects of respiratory disease can be long lasting, many months or years after the disease event itself.

Research has shown that the presence of respiratory disease in calves under 4 months of age has an adverse effect on weight gain, age at first calving, milk production and longevity.

Thus, every effort should be made to prevent respiratory disease in these young animals.

Respiratory disease can be frustrating and difficult to control. By definition, the pathogens (viruses and bacteria) responsible for respiratory disease are often air-borne, which

means we cannot see how, and when, they are spread from calf to calf.

In contrast, the pathogens responsible for calf scours are primarily present in the faeces of infected calves and carrier cows, which is very visible to us.

Therefore, control measures for respiratory disease are based upon optimising the immune system of the calf and reducing the risk of exposure to respiratory pathogens.

The immune system of the calf The respiratory tract has several defence mechanisms to help prevent bacteria, viruses, dust and other particles from invading the lungs and causing respiratory disease: The nasal passages are cleverly designed to trap inhaled particles and humidify incoming air.

In the windpipe

(trachea), a lining of cilia (tiny little hairs) move dust and bacteria upwards, towards the mouth to then be swallowed. Coughing helps with this upward movement.

In the lungs, if any bacteria are detected,

specific antibodies are activated and bind to the bacteria. Initially, these antibodies are transferred to the calf passively from colostrum. Therefore it is vital that all calves receive an adequate volume of good quality colostrum as soon as possible after

The Missing piece in The calf scours puzzle

c ave Rot na o coR

Hygiene

the proven calf scours vaccination against Rotavirus, coronavirus and E.coli

vaccinatE now bEforE calving For further information visit our website at

www.coopersanimalhealth.com.au or call us on TOLL FREE 1800 226 511 ® Registered trademark.

Colostrum

improve air quality. It is a birth. vital part of reducing the Also in the lungs, risk of respiratory disease there are white blood cells, called macrophages, in calves.

Generally, ventilation which find and destroy the bacteria, with the help in Australian calf housing is passive, which means it of antibodies. relies on the exchange of Why do calves get warm stale air with cool respiratory disease? fresh air, by convection Unfortunately there currents. are many respiratory For this passive viruses that destroy one process to happen, any or more of these defence building housing calves mechanisms. needs to have adequate Once destroyed, outlets (to allow warm, bacteria can invade and stale air to escape) and cause clinical respiratory adequate inlets (to allow disease. The extent to cool, fresh air to enter). which this happens The number and depends on how healthy the respiratory system is in the first The effects of place. respiratory disease Along with can be long lasting, adequate provision of antibodies many months or from colostrum, years after the the health of the disease event itself. respiratory system will depend on any pre-existing inflammation location of outlets and from chemical or physical inlets will depend on building size and design, irritants. along with the stocking Chemical irritants, rate of calves in the shed. such as ammonia from Some very large calf soiled bedding and poor sheds require active drainage, and physical ventilation. This means irritants, such as dust they do not rely on passive from bedding and convection currents feed, can contribute to but instead provide disease by causing direct airflow mechanically inflammation of the with fans and positive respiratory system. pressure ventilation Viruses and bacteria systems. This is not are more capable of common in Australia and invading an inflamed is predominantly used respiratory system than overseas. they are a healthy one.

It is important to Reducing the risk of note that ventilation exposure to respiratory is different to draught. pathogens Draught is often cold Ventilation is the air blowing directly provision and circulation onto calves and should of fresh, clean air to be avoided as it can help avoid chemical and contribute to poorer feed physical irritants and

conversion efficiency and increase the risk of hypothermia.

The exact air quality, in terms of pathogens per m3 airspace, and air movement can be difficult to assess. However a simple assessment can be achieved by getting down to the calf level.

Do this in several pens in the shed as air flow may differ in different parts of the shed.

You should not be able to smell ammonia or persistent faecal odour and there should not be areas of the shed with cobwebs (this indicates low air flow).

If either of these exist, then ventilation needs to be improved.

There are a variety of ways to provide inlets and outlets to calf housing to allow for this passive ventilation process. These include: ■ Whirly birds ■ Yorkshire boarding ■ Air gaps near the roof line Off-set back walls While some of these ventilation methods are ideally planned as part of a new calf shed, many can be easily incorporated into existing housing.

Remember that the effects of respiratory disease can be long term and that ‘prevention truly is better than cure’.

• Dr Gemma Chuck is a dairy vet working at The Vet Group in south west Victoria. She has a special interest in calf rearing and is undertaking her PhD in this area at The University of Melbourne.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

ANIMAL HEALTH // 25

Choose best drench for your herd and not what’s on special MORE AND more I am

worried by the trend of “trinket marketing” with regards to important animal health decisions made on farms.

Decisions related to things like vaccination and drenching programs are too important to be trivialised to selecting the product that comes with the best esky, porch heater or BBQ free gift.

I have asked a few clients their key influencers for determining which drench they used in the previous year, and was shocked to find it was often nothing to do with the correct drench for their needs, nor was it part of an integrated drench program designed to minimise anthelminthic resistance or that the herd even needed to be drenched at all based on fecal testing.

Common reasons given were it was the cheapest, it was on special, it was what the person at the rural store had recommended or that it came with the best free gift.

Drenching like vaccinating is a key preventative medicine strategy on a dairy farm and to realise on many if not most farms there is no strategy nor even any scientific basis to the drenching program is of considerable concern.

The decision whether to vaccinate, and the choice of which type of drench to use, should be part of a herd management plan and based on risk and sound science.

In many cases, there no need to drench adult cattle but a relatively simple fecal worm count test can tell you for sure whether a drench is needed.

Regular worm count monitoring in young stock can also help to target drenching to maximise growth rates and health outcomes and worm count testing can also be used to monitor the response to a drench.

ANIMAL HEALTH ROB BONANNO Monitoring the success (or otherwise) of a drench program is a critically important tool in managing and preventing the development of resistance to drench products.

Vaccinating the herd is another critically important tool for managing, preventing or eliminating diseases.

There are some vaccinations like 5in1 and Leptospirosis that should just be a standard treatment every animal in every herd receives.

Having had Leptospirosis, I can vouch how critical vaccinating your herd is to prevent this nasty disease affecting human health and workplace safety without even considering the potential animal health benefits.

Diagnostic testing, performed by your herd’s veterinarian, is an important step in determining which of the dozens of other vaccines could be necessary in your herd.

Botulism vaccination should be considered in any herd that has a heightened risk due to things like silage feeding and preventative vaccination for diseases in calves mostly need to be given to the cow herd prior to calving and managing colostrum transfer is another area where your herd vet can be a most valuable member of your team.

Monitoring antibody levels for diseases like BVD and regularly reviewing mastitis cultures or bulk milk PCR results are yet another way that seeking input from an experienced veterinarian not only improves your herd’s health and milk quality

but can make extra money.

Drenching and vaccinating, along with most animal health decisions on your farm, are areas where your herd vet is able to offer you unbiased scientifically justifiable advice that isn’t just based on what

product is currently on special or comes with a free set of steak knives, but is actually the best fit for your needs.

• Rob Bonanno is a director of the Shepparton Veterinary Practice and a former President of the Australian Cattle Veterinarians Association.

I reckon if they could talk, they’d ask for it by name.

If we could talk we’d be on TV.

The MaxCare range of milk replacers has been created to deliver maximum growth, nutrition and health support for calves like Kim and Khloé in the all-important first few weeks.

Choose from Essential, Premium and Ultimate for different levels of performance depending on the particular needs of your animals. Available now. To learn more visit our website or call 0439 773 145. maxumanimal.com.au

And asking for Champagne with breakfast.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

26 // ANIMAL HEALTH

Adaptability can help herd fertility JEANETTE SEVERS

VETERINARIAN DR Richard Shephard asked participants in the Maffra field day “why is fertility important?” in a discussion about herd health and fertility drivers.

He briefly discussed the current trends toward split calving, making the most of seasonal pasture growth and optimising a milk processing system that rewards out-of-season milk.

“The fertility of the herd compares with the dairy farmers’ adaptability and capacity to change,” Dr Shephard said.

“If in a bad year, the dairy farmer gets rid of cows, how do you recover

fertility in a good year?”

Dr Shephard suggested when thinking about maintaining fertility in the herd, producers should adopt a tight calving period, ensure body condition of cows and ruthlessly cull empty cows.

Synchrony was also important.

“Having more cows in cycle at the same time means you know which cows are cycling,” Dr Shephard said.

“You need to understand, though, if that program of synchrony will work in your herd.

“But synchronising cows, you get two cycles, so it increases your opportunity for pregnancy.

“Another positive, calves born are born earlier and therefore are ahead all

through their lives.”

He also addressed transition programs. “Good transition programs help cows transition into milk and positively affect calving programs,” Dr Shephard said.

“We need to be concerned about conception rate and submission rate.

A good conception rate comes from rising nutrition.Pre calving, we also need to use rising nutrition.

“After calving, cleaning and metritis injections are essential for optimising health.

“So, in summary, tight calving pattern, transition management and optimum health pre calving. And think about next year’s mating season now, start planning now,” he said.

Maffra field day host Alex Macarthur with vet Dr Richard Shephard.

It’s pIlI tIme

VaccinaTe againsT pinkeye now or pay laTer Toll Free 1800 885 576 ® Intervet Australia (known as MSD Animal Health).

ABN: 79008467034. (18/07/2014).

Untreatable mastitis warning AUSTRALIAN DAIRY farmers must watch out for

mycoplasma as an emerging cause of untreatable mastitis, says Dairy Australia.

The disease has troubled Australian dairy herds since 2006, and though few farms are affected, the disease caused by Mycoplasma bovis can curb production, push up cull rates and lead to cows and calves dying.

“The good news is a relatively cheap and sensitive test for mycoplasma is available on bulk milk samples,” says Dairy Australia’s Dr Kathryn Davis.

“It is important not to buy in this disease when purchasing cows; with concerted action now we can stop it from spreading.”

Mycoplasma is most likely to enter a herd via an infected carrier animal and cows may carry mycoplasma without signs of infection. Antibiotics do not cure it.

It can readily spread during milking from one quarter to another in the same cow or other cows via milkers’ hands or liners. Cows can also become infected via contact with infected cows’ nasal secretions or uterine fluid. Semen, embryos and contaminated equipment are also potential causes of spread.

Calves can become infected by consuming milk from infected cows, or contact with contaminated surfaces or with other infected calves. “Special tests are required to diagnose mycoplasma infection, so ask your vet about the available options,” Dr Davis said.

A PCR (polymerase chain reaction) test detects the genetic material from the mycoplasma species and is very sensitive. PCR tests also don’t cost much for screening bulk milk samples.

Mycoplasma can be economically monitored at herd level with regular bulk milk samples that include all the cows on the farm.

This means a sample from the vat and from any cows excluded from the vat, e.g. the hospital herd.

Good biosecurity is essential to protect a herd from mycoplasma and a variety of other serious diseases such as Strep agalactiae, Bovine pestivirus, Johne’s disease and digital dermatitis.

“Work with your vet to develop a farm biosecurity protocol and make sure it is followed every time you introduce stock,” Dr Davis said.

“Remember, even healthy looking animals can carry mycoplasma and break down with the disease later on, especially when under stress. Ideally source all new animals from herds testing negative for Mycoplasma.”

Dairy Australia is hosting a farmer webinar on mycoplasma biosecurity on December 2. A new fact sheet on mycoplasma is also available on the Countdown News webpage:www.dairyaustralia.com.au/Animal-management/ Mastitis/Countdown-News.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

ANIMAL HEALTH // 27

Calves blossom under shelter STEPHEN COOKE

WHEN FEDERAL

Trade Minister Andrew Robb travelled to Larpent in western Victoria last month to discuss FTA negotiations, the group of 120 people present were fed and sheltered in a multi-purpose calf rearing facility.

Minister Robb spoke to western Victorian farmers and others at Craiglands, owned and managed

by Mark Billing and Sam Simpson.

The couple built the shed in 2005 for a total cost of $30,000 and it had an immediate impact on calf health and performance, as well as providing a more enjoyable workplace during the busy calving season and removing potential health and safety issues.

The shelter was purchased from Redpath but has been modified to suit their needs, closing one end to stop the prevailing south west wind and rain, adding a preparation area, and using corrugated iron as the bottom section of the sides of the shed.

The total cost included a preparation area with kitchen facilities, including hot water, and a toilet. Milk, power and data lines were installed from the dairy to the calf shed underground. This means that any computers installed in the calf rearing facility were directly connected to the main farm computer (although WiFi is sometimes used now), and milk is directly pumped form the calf milk

Happy calves.

WHO:

Mark Billing and Sam Simpson WHERE:

Larpent WHAT:

Calf shelter

vat at the dairy reducing the need to carry heavy buckets of milk Ms Simpson said it took two or three calving seasons at most to cover the costs of the structure, in part because it enabled them to expand their calf rearing capabilities and increase the number of replacements.

“It wasn’t designed so we could immediately grow the herd, but it gave us the option if we wanted to,” she said.

“We need at least 100 replacements each year.”

“With this system, it is easier to raise calves and anything above 100 is surplus, so we can choose to keep them or sell what is surplus to our needs.”

Craiglands is a closed herd, running 600 cows and heifers and milking about 420. They calve over an 8-week period once a year, starting on May 1.

The shed also gives them the option to easily add automatic calf feeders without the added expense of pouring concrete or building new yards. The 30m by 10m shed can easily be extended by joining another structure if

needed.

“Everything at the end of calving is removable, it’s an open shed so we can configure it however we want.”

This flexibility also enables them to add more calf pens at the height of calving season, when they get a run of calves through the system.

The shed has 18 single pens (1.5m to 2m) and four bigger pens (6m by 6m) where groups of 20 larger calves are kept together.

Calves enter the shed either immediately or maximum of eight hours after calving (depending on when they’re born), and are placed in the single pens until they can properly suck on the drinker.

The pen gate is opened and they then walk into one of the larger pens with other calves their size.

In the pens they receive 4 litres of milk with an supplement each per day, sharing a drinker with 20 teats, as well as ad lib hay and calf pellets. The group of 20 calves are moved into a calf paddock as soon all calves are displaying similar feeding capabilities (ie no shy feeders or drinkers) and are putting on about 1kg a day. They are kept as a small group until after weaning when the groups are combined. Weaning occurs when the calves reach 120kg.

“Once they’ve started drinking, and moved from the single pen to a big pen, there’s no need for us to physically get in with 20 bigger calves,” Ms Simpson said.

“They could be 80kg

Sam Simpson and Mark Billing in front of the calf shed, which can also be used for storage.

in here, 20 at that weight rushing at you because you have milk, can be dangerous and we don’t have that issue anymore.

“We only need to get in the big pens to add hay, grain or check water and we do it when they’re feeding or after they’ve been fed.”

The shelter has also taken the dread out of calving season for all Craiglands employees.

“If you have sick animals, you can bring them in where we have heat lamps, you can coat them, tube them in the light, all that sort of stuff. There is also the capacity to isolate them if needed.

“It’s a nice working environment and you’re out of the elements.

“In our old system, we didn’t have the ability to do things we wanted. Before, if calves were dropped on a rotten night, they had to stay in the paddock before we could get them into the system. We could only feed eight at a time before and had to wait until some were moved out.”

Calves in the new environment now grow more quickly and leave the calf shed in a shorter time.

“We’ve been here nine years now and I could count on two hands how many times we’ve had sick calves for a reason we could control,” Ms Simpson said.

The Vet Group Integrated animal health solutions The Vet Group Farm Services • Clinical veterinary services

• Calf health and disease prevention • Lameness treatment and prevention • Human resource management and recruitment • Mastitis and milk quality investigations and advice • Consultancy, nutrition and business support • Bovine reproduction services

Phone: 1300 838 700 www.thevetgroup.com.au

Dairy News AUSTRALIA november 2014

28 // effluent & water management

Giant effluent tank eases farm storage problems RICK BAYNE

AN AUSTRALIANFIRST above ground

effluent storage tank is fixing problems for a Tasmanian farmer and leading major research into methane gas emissions.

The huge two-megalitre tank was commissioned at Jamie Berne’s farm at Meander in June and has already eased long-term problems with what to do with his waste over the wet winter months.

Over the next three years it will also reveal whether short-term retention of effluent in the tank will reduce methane emissions.

While popular in New Zealand, this is the first above ground effluent storage tank built in Australia. The tank could

Who:

Jamie Berne Where:

Meander What:

Effluent storage tank

become another option for farms with high ground water levels, particularly in Tasmania and southern Victoria.

It’s a practical solution for Mr Berne’s farm which is in a high rainfall area with porous land and needed a new method for storing effluent over the wet months of winter and spring and to spread it to best effect when and

The 2 megalitre above ground effluent storage tank at Meander, Tasmania.

where it’s needed.

“When it gets wet the land can’t take any more,” Mr Berne said. “When the ground’s already wet you’ve got to try to protect it but we only had a small holding capacity and before this we had to directly applicated on to

the farm.”

The 2 ML capacity tank is designed and manufactured by Tasman Tanks and installation in Tasmania was managed by Laurie Hooper at AgriTech.

Adrian Gardner, senior project coordinator for Tasman Tanks, said: “We

For Water & Effluent on Crops & Pastures.

Volume Capacity: 1,000-13,000 gal/hr, Spray width up to 50m, Runs up to 400m.

Australian Owned & Manufactured by Quality Assured Company www.vaughanir rigators.com.au info@vaughanir rigators.com.au

Ph: 1800 241 534

were really excited about building the first dairy effluent tank in Tasmania. We build a lot of these in New Zealand to store effluent through the winter and we see a lot of scope for this type of set up on farms in Australia where soil types and high ground water tables mean building a pond is difficult.”

As well as trialling the practical issues with new infrastructure, the tank is a demonstration site for an Australian Government ‘Action on the Ground’ project.

The Tasmanian Institute of Agriculture will look at whether short term retention of effluent in the tank will reduce methane emissions from the effluent system.

PhD candidate Louise Murphy said: “We are hoping that by quickly moving effluent from the storage tank through to the irrigation system, we can maximise the amount

of nutrient being recycled onto the pasture, improve pasture production and also reduce greenhouse gas emissions through volatilisation. It is the ultimate ‘reduce, reuse, recycle’ concept.”

The overall project is being managed by Scott Birchall from AgSystems Design. Mr Birchall has become a regular visitor to Tasmania over the past year, providing training to Tasmanian service providers in designing effluent systems. “Commercial scale research like this using expensive infrastructure is hard to do these days so it is a fantastic opportunity to do some cutting edge scientific research on effluent management and greenhouse gas emissions,” he said.

Funding for the research is being provided by the Berne family, Dairy Australia, DairyTas, Tasmanian Institute of Agriculture and the Federal Government’s “Action on the Ground” program.

Mr Berne was prompted to trial the new system after hosting a field day where visitors looked at his old system and the discussed the issues he was facing with the wet ground.

“There were a few suggestions about what we could do and after the field day they came to us and asked if we would be will-

ing to be involved,” Mr Berne said.

He was keen to replace the small pond system that was struggling to cope with the wet land and a gradual increase in cow numbers over recent years which has seen the farm grow to milk about 350 cows on 105ha.

“It was mainly a problem in winter,” he said.

“Once we stopped irrigating and the ground was wet we still had to get rid of the effluent somewhere and that was the problem.”

The new system basically disregards the old pond set-up. “It connects to where it first runs into a little stone trap but it now comes out the other side and goes into the new system from there. It’s all delivered back to our irrigation system and we can applicate it onto the whole lot of the land,” Mr Berne said.

“We can decide where it will go and where it’s needed.”

The effluent will be distributed through the irrigation system to a much larger area than before.

Any surplus will be safely stored in the aboveground tank through winter.

A public field day will be held on-property on February 26, 2015. Contact Dr Rachel Brown on 0409 333 381.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

EFFLUENT & WATER MANAGEMENT // 29

Reducing water load into farm effluent system TO ADAPT to variable seasons and new innovations, dairy farm operations are continually changing.

As part of this, effluent management systems require review to ensure they can perform to a high standard throughout the year.

Local Fleurieu farms participated in a DairySAled effluent planning project to assist them in reviewing their effluent management systems.

The project, funded by the Adelaide Mount Lofty Ranges NRM Board, Dairy Australia, DairySA and participants, supported dairy farmers through a planning process with an accredited dairy effluent system designer.

Grant and Debbie Jolley, Hindmarsh Valley, signed up to the project to assess their current systems and develop a plan for any future changes or works.

The planning process helped them critically review their systems with specialised technical advice, and it has changed their thinking on the next steps they’ll take in managing their on-farm effluent.

“We initially thought our only option was to build a new or larger pond for effluent storage, but this planning process has shown us we can make other less costly changes that will have a positive impact on our effluent management system” Mr Jolley said.

The Jolleys’ plan showed that current dairy water use was high, com-

WHO:

Grant and Debbie Jolley WHERE:

Hindmarsh Valley WHAT:

System re-design

pared to the average for the herd size and dairy type (based on Victorian data).

The plan highlighted that changes to the milking system could significantly reduce the volume of water into the pond and subsequently reduces the scale required for the pond. It also provided a number of system upgrade options that would require capital expenditure to increase pond capacity and winter storage volume.

A critical factor in the size of dairy effluent management systems is the amount of water coming in through dairy washdown and rainfall runoff.

Reducing the volumes from these sources reduces the volume of storage required.

Some options for reducing water use during the storage period include reducing yard wash frequency to once a day during the storage period and installing recycling from the two pond system for yard wash.

Another recommendation from the plan was to increase the area available for effluent application in

the paddock as this provides greater flexibility in management over time.

With a single pond system, it is best to install irrigation equipment designed for effluent.

Open impellor or semiopen impellor pumps and larger nozzle sizes help prevent blockages.

The application system design is best completed by an irrigation specialist.

Following the plan the Jolleys also made the decision to increase from six a side to 10 a side with cup removers.

“We’ve not only achieved water savings from this system but it’s hugely reduced milking time from 41/2 hours to 11/2 hours,” Mr Jolley said.

Overall the plan helped the Jolleys to assess the benefits of making changes to their dairy shed to reduce water use volume and hence the amount of effluent produced over winter.

Given time to monitor the changes they will then be able to re-evaluate the effluent management requirements and assess whether capital expenditure is required for pond expansion.

Completing an effluent plan is valuable as it assists in clarifying the stages to achieving an efficient effluent management system, rather than just focusing on pond or storage construction.

It can provide farmers with a number of low cost practical changes in the dairy rather than an expensive capital outlay.

For more information (including contacts for

accredited effluent system designers), contact • Monique White, DairySA NRM technical specialist at monique@dairysa.com.au or 0400 972 206.

This article reprinted with permission from DairySA News.

Cows enter the dairy on Grant and Debbie Jolley’s Hindmarsh Valley farm.

Australia’s Leading Experts in Design, Construction & Installation of Firestone GeoGard EPDM liner, specialising in: • Effluent Ponds • Water Storage Ponds Lining Solutions offers a comprehensive CQA System to ensure the highest quality & long lasting EPDM rubber lining installations

“Dependable Performance in Demanding Environments”

Mention Dair y News when enqui ring about our no obilgatio n FREE quote

Firestone GeoGard Lining Benefits:

Authorised Australian Distributor

P High quality EDPM rubber liner P Over 50 Years proven performance P Firestone Guarantee for 20 years P Easy to install & simple to repair

EMAIL info@liningsolutions.com.au

P Safer for people and animals than alternative liners P Strong, reinforced seams P Reduces salinity & leaching P Flexible & stretches over 300% P Superior UV & weather resistance

02 7903 7129 www.liningsolutions.com.au

EFFLUENT SPREADING SOLUTIONS Lining Solutions Dairy News Ad v3.indd 1

Galvanised solid spreaders (8-24 cubic metres)

Large volume solid spreaders (up to 40 cubic metres)

Slurry tankers (up to 30000L)

2/10/2014 12:58 pm

Slurry stirrers (5m, 7m, 10m)

Muck Runner – Superior In Quality And Design

Available for sale and hire from the leaders in muck machinery!

Tom 0419 851543 | www.pichonindustries.com | www.remorquerolland.com | muckrunnerptyltd@hotmail.com

Dairy News AUSTRALIA november 2014

30 // effluent & water management

Soil drainage boosts pasture production Improving soil

drainage has lifted annual pasture growth across Lee and Gary Hibberd’s western Victorian dairy farm by as much as 30%.

The Hibberds run 650 cows on 500 hectares at Simpson but for years have been forced to cope with far less available land during winter.

Their clay soils cannot cope in the winter in a district with an average rainfall of 1200mm and would quickly become pugged and useless.

However, they have had drainage installed under almost 100ha over the past decade, which has restored that land to full production throughout the year.

The Hibberds engage the services of TG Drains, which installs sub-surface drainage using a lasercontrolled purpose-built drainage machine.

Clay soils become waterlogged with high rainfall, reducing the total annual pasture production and causing pugging, which requires levelling of the land and re-sowing of pasture in the spring.

TG Drains install drainage systems consisting of surface or subsurface drains in combination

Who:

Lee and Gary Hibberd Where:

Simpson What:

Soil drainage

with mole drains.

Sub-surface drainage removes excess water from the soil profile, through a network of perforated corrugated polydrains installed 66cm to 1.3m below the soil surface, with a permeable backfill placed around the pipe.

This increases the permeability in the vicinity of the pipe, and acts as a filter preventing fine sand and silt from entering the drains.

TG Drains installs subsurface drainage using a laser-controlled purposebuilt drainage machine.

The machine, a Mastenbroek 20/15 imported from England, can cut a trench up to 2.2 metres deep.

The digging chain of the machine cuts a trench

Gary Hibberd in front of paddocks that were a boggy mess before drainage was installed.

and the drainage pipe is laid with the backfill of gravel in one single operation.

The machine can be altered to lay either 100mm or 160mm polydrain. The 100mm polydrain is often used for the lateral drains which feed into a main drain.

The main drain is often a 160mm polydrain which discharges the water.

Once the paddocks have been completed,

Turn Your Waste Into An Asset The Elmore Compost Starter pack provides the ingredients, advice and technology to make your own premium fertilizer.

most only need levelling, power harrowing and resowing, according to Mr Hibberd.

“Before we had drainage installed, you’d get a certain amount of rain and have to write them off,” he said.

“Most years, you might miss 3 to 4 rotations in winter because you just couldn’t get cattle on.

Then we’d be back in every year when it was dry enough trying to get them

ELMORE E C COMPOST

To make use of your existing effluent we provide all the additional elements, skills and machinery to create compost at your site.

We offer: - Onsite consultations - Onsite creation - Removal - Creation offsite - Ready made available

We can add: - Lime - Gypsum - Green waste - Pig manure - Chicken & cow manure

level again.

“In that time you’re putting a lot of pressure on other paddocks too, or feeding them in the feeding pen.”

Mr Hibberd said they have increased winter production by 25-30% since having drainage installed.

“It’s staggering what you can grow on it. We have increased our stocking rate slightly but we feed everything better too, growing better feed,” he said.

“We’ve certainly increased the amount of silage we’ve produced, and we can get it off a lot earlier, as we can get onto those drained paddocks earlier.

“It makes a lot of differ-

We provide: - Knowledge & Advice - Technical services - Compost spreader - Compost turner - Loader

No job too big or too small, no matter how much manure you’ve got we can still help you make your own fertilizer. It’s always worthwhile.

Customer testimonial: ‘Last year we had to buy in a heap of hay, this year with the help of Elmore Compost we have increased pasture production, now we’re feeding our cows and able to cut our own hay.’

Alan Warren, Kyabram VIC Based in Central Victoria. Servicing all areas including long distance.

Call: 0428 511 525

Email: info@elmorecompost.com Visit: elmorecompost.com

TG Drains installing drainage.

ence, the quality is much better.”

Effectively, the money the Hibberds have invested in drainage had previously been spent restoring pugged paddocks and re-sowing pasture. There was also a significant amount of lost production.

“There has been a lot of drainage installed around the area now, you see guys that got in years ago and have done the whole farm and they grow a lot of feed.

It is certainly worth it in this area.”

Mr Hibberd said the cost depends on the level of work required in each paddock, but it took TG Drains about five days to complete 20 hectares

recently.

Drains empty into existing dams.

The Hibberds have another 100ha of drainage they would like installed when cash flow permits.

“It costs money and you can’t do it all at the one time, but we’re gradually getting it all done,” Mr Hibberd said.

“It depends on how much money we have. We always try and do some each year but our priority is certainly drainage when we have a good season and we prioritise paddocks that are worst and do those first.”

For further information contact Tim Beets on 0409-115 474 or visit www. tgdrains.com.au

DAIRY NEWS AUSTRALIA NOVEMBER 2014

EFFLUENT & WATER MANAGEMENT // 31

Synthetic lined ponds a cost-effective option EFFLUENT POND liner

installation contractor Jim Walsh says synthetic liners are a cost-effective method to line effluent storage ponds.

“With environmental issues also becoming a high priority, synthetic liners offer a guaranteed seal – no permeability,” Mr Walsh said.

“The alternative, clay lined ponds, will still leak and there is no guarantee effluent won’t leak out.

Added to this, clay tends to crack when dry, erodes with stirrer use and costs almost the same as a lined pond. It becomes a nobrainer.

“In my experience most farmers are pleasantly surprised at the cost of lining a pond, and so are prepared to do the job right in the first instance – including

cost of earthworks which are about half the cost of tanks above ground.

“They are not cheap, but often cost less than farmers expect to be quoted.”

Mr Walsh has 10 years experience of synthetic liners: he was the first Firestone liner installation contractor in New Zealand. He has worked in Australia and the UK, there involved in the largest EPDM lining project in the world - a Firestone lined irrigation canal.

The company’s liners are said to have excellent UV resistance; they have a 20 year warranty and 50 years life expectancy.

Firestone EPDM wide rolls speed installation and reduce the number of joins in a pond, good for performance now and long term. Pond dimensions

can accommodate the roll sizes to reduce wastage and limit the number of joins.

Mr Walsh said there are many different liner types on the market, most commonly EPDM (usually called rubber) and HDPE (plastic). Both are good products, used internationally for a long time, he says.

“Having seen Firestone EPDM used on jobs in Europe looking no dif-

ferent today from when they were installed, I’m confident in the product

Synthetic liners offer a guaranteed seal and are ideal for effluent storage ponds.

I’m installing. Firestone’s oldest lined project is 41 years old and still in per-

fect working order.

“We are seeing a few new entrants into the

lining market and there are little known lining manufacturers offering

liner at prices too good to be true. You get what you pay for.”

Contact John Rourke, Lining Solutions, 0417 426 471 or info@liningsolutions. com.au; Vaughan, Cosio Industries, vaughan@ cosio.co.nz.

Dairy focus with Vaughan irrigators SEVENTY PERCENT

of the 6000 low pressure travelling irrigators sold

by Vaughan Irrigators since 1992 have been purchased for effluent distribution.

The company has several models but believes the best in its class is the VCI-Mk2.

The company says with a 14m boom and capable of 400m runs and up

to 50m throw, the VCIMk2 outperforms other low pressure irrigators in performance and price.

Vaughan Irrigators has recently released the Quad x 4, which has four arms and is capable of delivering 24 litres/second.

With four speeds it can deliver twice as much water in the same time as the other irrigators or deliver the same amount

in half the time, the company said.

The EPA has approved irrigators sold by Vaughan as a safe and environmentally sound method for distribution of farm effluent.

“With easily changeable nozzles you can adjust the droplet size depending on the conditions, allowing complete control of drift

and application,” the company said.

“In recent years the irrigators have been bought by farmers, who not only want to spread effluent and take advantage of the natural fertilisers from their dairies, but also to water an array of crops and pastures up to 20ha.

“By using a small travelling irrigator many

farmers are realising the benefits of using what little water they have to maximise the growth of their pastures and crops.

“Flood irrigators are turning to Vaughan Irrigators because they have realised that spray irrigation is better for their crops.

“With the irrigator operating under low pressure there are no

fine particles of water being caught in the wind and being transported to other areas, as would happen with high pressure irrigation.

“What is dispensed by the irrigator goes where you want it to go which can result in water savings as well. About 60% of the water they previously used is no longer required with better crop results

achieved and lower financial costs.”

Vaughan irrigators include the low pressure sumpmaster cam, which allows the irrigator to operate at pressures as low as 8psi.

Vaughan irrigators can be operated with a fire fighting pump or even gravity feed, reducing cost.

Tel. Vaughan Irrigators on 1800 241534.

TG DRAINS

AGRICULTURAL DRAINAGE CONTRACTORS INSTALLATION OF SUBSURFACE DRAINAGE: PREVENTS WATERLOGGING IMPROVES PASTURE CONTROLS SALINITY MACHINERY IS FULLY LASER CONTROLLED ALL DRAINS ARE GPS MAPPED FOR FUTURE REFERENCE ALSO INSTALLATION OF OPEN ‘V’ OR SPOON DRAINS AND MOLE DRAINAGE Vaughan Irrigators travelling irrigators have proven popular with dairy farmers.

FOR FURTHER INFORMATION PLEASE VISIT: WWW.TGDRAINS.COM.AU

TIM BEETS: 0409 115 474

DAIRY NEWS AUSTRALIA NOVEMBER 2014

32 // MACHINERY & PRODUCTS

Berrima hay rake helps keep 2000 cows fed LLOYD AND Kerin Walpole are farming at Yalca, north of Nathalia in the Murray Goulburn region not far from the Murray River itself. They had been dairying since 1967 and moved here from the Western District in 1981 where they had been milking 110 cows on 85ha.

Now, with their two sons, Adam and Mark, they run about 2000 cows which, says Lloyd, “are about 98% Holsteins”.

They are still building up numbers and they keep all their replacement heifers.

The enterprise is spread over three dairies. Including leased land it runs to around 2,630ha. A further 810ha nearby on their daughter’s and son-in-law’s (Jason and Virginia Stone) property is used for cropping.

“That makes us pretty selfsufficient”, said Mr Walpole. “We can grow about 90% of our feed and we buy in some grain.”

They harvest 2400ha of silage each year, predominantly ryegrass and some shaftal, through two cuts and it is all put into pit silage. That equates to 5000

WORKING CLOTHES CHRIS DINGLE tonnes per year and they grow between 1000 and 1500 tonnes of corn.

This year they will probably have 2500 to 3000 round bales of hay, “That’s a bit more than normal,” explained Mr Walpole. They grow lucerne in paddocks irrigated with a pivot irrigator. Fifty percent of their water is groundwater and 50% from the Goulburn Murray Water system.

The cattle graze for six months of the year and are fed from a feedpad for the rest.

Some time ago they bought a 10m hay rake from Berrima Engineering at Deniliquin, the BR1000 model, which

Yalca dairy farmer Lloyd Walpole and his family run 2000 dairy cows.

Yalca dairy farmer Lloyd Walpole with his Berrima BR1200 – a 12 metre hay rake.

at the time was the biggest they made.

It did about 2200ha each year for three years.

Lloyd was so impressed with its performance that they upgraded to a new 12m version, the BR1200, which is now in its third season, covering 2400ha each year.

“The BR1200 suits us a lot better than the 10m version. I like its flexibility and compact design. The back-up from Berrima is important to us.”

They operate the machine with a Case Maxxum 115, raking at 12km/h and Lloyd said it is a good match-up.

Berrima Engineering has been manufacturing for 20 years and claim that they have the biggest rollerbar rakes on the market.

The range covers six models from 8m to 12m, including machines specially designed for contractors. The rakes have a five function hydraulic control centre giving the operator easy in-cab control of raking width, windrow width, basket angle and lift, all on-the-go with the baskets still revolving. They say that the hydraulic windrow splitters move every bit of the crop to give more even drying. They turn on and off as well as

WHO:

Lloyd and Kerin Walpole WHERE:

Yalcha WHAT:

12-metre hay rake

raise and lower in synchronisation with the baskets.

Pneumatic gauge wheels protect the baskets from uneven terrain, allowing them to float and follow the ground for clean raking. The fingers don’t touch the ground, leaving sticks and rocks behind.

The Walpole enterprise has 15 fulltime employees and a couple of ladies look after the bookwork and feeding the calves. The Walpoles employ a casual, Colin Harriage, to do the raking each year from August through to the first

or second week of November. “He was previously retired, but comes back each season to rake,” added Mr Walpole.

“Tell him what you want and he’ll just go ahead and do it; between 150 to 200 acres a day.

“We cut some of the irrigated areas three times and everything at least twice. The dryland shaftal and ryegrass is cut and raked once. We get six cuts of lucerne off sixty acres.”

The transport width of the rake is just 8 foot (2.4m) which is very convenient in getting about on this relatively large property.

Mr Walpole said that they have five main tractors, including four New Holland and six ‘hangers-on’. “We only run our tractors for 4000 hours”. The New Holland machinery comes from Chris Stronge and Mick Pettigrew at Cobram Rural.

Other machinery on the farms include a Harris mixer which works 365 days a year, an articulated JCB loader, a Claas telehandler and a Case back-hoe.

A Claas Jaguar 850 forager is used in the silage production.

“Out of all of our machines, this rake is probably the best.”

MAHINDRA, BUILT TOUGH! 9500 4WD Series with Loader

6030 4WD Synchro Shuttle with Loader

• Tractor weight 2800kgs • Great feed out tractor • Tough mechanical tractor

• 2.5 tonne lift on Linkage • 12F/12R SynchroShuttle • 326Nm Torque from just 1200 rpm

Easy Access Battery

45,990 (RLP in GST)

FOR MORE INFORMATION

8560 Cab with Loader & Standard Bucket • 2 Speed PTO • 2 Remotes Standard • Over 4.5 Tonne in Weight

ith Access Fuel WEasy $ From

Hay Forks Shown are Additional

35,990 (RLP in GST)

$ From

PHONE TOLL FREE: 1800 45 95 75

www.mahindra.com.au/ag

*Prices are Ex Brisbane/Ex Perth and excludes spark arrestor (where applicable), excludes freight & pre-delivery charges. Photographs may show overseas models or illustrate non-standard equipment.

Please read your Mahindra Tractor manual carefully prior to operation. ^3 Year Engine & Powertrain warranty. Promotional pricing ends 31 December 2014 or while stocks last. DMM2708.

From $

53,990 (RLP in GST)

DAIRY NEWS AUSTRALIA NOVEMBER 2014

MACHINERY & PRODUCTS // 33

Turns out you get what you pay for EVERYONE LOVES

a bargain, and frankly, in this regard, I am exactly like everyone.

When you measure your acreage in tens, rather than hundreds or thousands of acres, ownership of farm machinery becomes an increasingly tenuous economic proposition.

An investment in equipment based on an expected return of zero does unpleasant things to the analysis.

In the process of acquiring something to match big expectations with a minimal budget, you come across contraptions that are the subject of derision by contractors and large scale farmers alike – the ’combo machines’.

These are devices that claim to be able to do more than one job, and, stunningly, to do multiple jobs well. Audacious, and naturally begs the question: why doesn’t everyone have one?

The Fransgard Ti6000 tedder/rake combo is an example of such a machine.

It comes from the small Danish manufacturer that also produces what is (to my knowledge) the world’s only front linkage-mounted hay rake (a concept which somehow hasn’t caught on).

Frankly, it’s a delightful little machine – obviously the product of a great deal of ingenuity and imagination.

Obviously Fransgard think so too, because looking at the current promotional material, I can’t identify too many changes between my 1995 model and the current iteration.

It is a twin rotor hay rake, on which the arms can be inserted into different mounts and the angle

a proper tedder this weekend, I can at least console myself with the thought that a twin rotor rake for less than the price of a ride-on mower is probably still a bargain.

• John Droppert has no

GRUNT

JOHN DROPPERT of attack adjusted to set it up for tedding.

In my quest to make hay on a shoestring budget, a twin rotor rake that doubles as a tedder seemed like a pretty good idea.

When you account for the purchase price being less than the annual servicing cost of the tractor that pulls it, a bargain presented itself.

Now the saying ‘you get what you pay for’ is not a personal favourite, given its use and abuse by unscrupulous up-sellers, rip-off merchants and crooks everywhere; but there is an element of truth to the old adage.

The Fransgard is a rubbish tedder, alternating between heaping and windrowing the grass that it’s intended to spread.

And for some reason, it doesn’t like pulling apart the swath left by a 3 metre mower in anything approaching a half decent crop.

Of course, part of the underperformance could be due to the hard life it’s clearly had and the years spent rusting in the sun.

I haven’t exactly pushed it hard; having fully expected it to fly apart, shedding steel and oil across the first paddock I was brave enough to power it up in.

As a rake though, ‘so far so good’ – by the time the hay is dry, the old girl can pick it up with little complaint.

So while I’m out buying

GET SOCIAL WITH DAIRYNEWS READ THE LATEST STORIES FROM ANYWHERE CHECK OUT THE LATEST NEWS AND INFORMATION AT

www.dairynewsaustralia.com.au

DairyNewsAustralia DairyNewsOz

mechanical qualifications whatsoever, but has been passionate about tractors since before he could talk and has operated many different makes and models in a variety of roles for both profit and fun.

The Fransgard Ti6000 tedder/rake combo.

DAIRY NEWS AUSTRALIA NOVEMBER 2014

34 // MACHINERY & PRODUCTS

Complete redesign for new Polaris Ranger A NEW quad from US manufacturer Polaris represents a “complete redesign” of the preceding model.

The 2015 Ranger 570 comes in ‘heavy duty’ specification, chief of which is an engine braking system with four-wheel descent control (4WDC) “to provide optimum control and traction when

descending slopes”. The 4WDC system is already “tried and true” in New Zealand, the maker says; it is used on the Polaris UTE released early this year.

The new model has a heavy duty sway bar, upgraded rear driveshaft and grease fittings as standard – aiding durability and easier for maintenance.

GOOD SALES PROGRESS POLARIS HAS annual sales of $3.8 billion from products such as quads, its Ranger side-byside vehicles, snowmobiles, motorcycles and on-road electric-hybrid powered vehicles.

The company says that in quads it has grown its year-to-date sales by 37.3% over the same period in 2013, including sales growth of 36.4% in the side-by-side segment.

Power comes from a 567cc, fuel-injected ProStar engine (44hp) driving through the maker’s ondemand AWD including ‘turf mode’.

Further upgrades for 2015 over the previous Ranger 570 model include standard electronic power steering (EPS), 10% more engine power, improved styling, increased lockand-ride accessory storage, and greater suspension travel and cab comfort, including tilt steering as standard.

Macpherson strut front and independent rear suspension have 22.9cm and 25.4cm travel respectively, and 25.4cm ground clearance.

The new model has a seatbelt interlock that

The 2015 Ranger, 570 comes in ‘heavy duty’ specification.

limits top speed to 24km/h when the seatbelt is not worn. And an optional ‘speed key’ separate from the starter key can be used to limit top speed to 40km/h.

Polaris says the new machine, reflecting its mantra ‘Hardest work-

ing, smoothest riding”, is a class leader in its 680kg towing capacity, 227kg rear dump box capacity and 34.1L fuel capacity.

Price is $17,995 incl.

GST plus dealer charges where applicable. www.polarisindustries. com.au

Separating wheat from the chaff ADAM F RICKE R

WE ALL know China makes some crap. But we also know China makes quality items – Apple i-Phones, supertankers, Red Bands and Swandris, to name a few.

The trick is knowing which is which.

Cue CF Moto’s invitation to go on a dealer trip to its factory in Hangzhou, 170km southwest of Shanghai, China. “Don’t listen to us, come and see for yourself,” the company said. So we did.

At the 150,000m2 facility, complete with dormitories for workers and their families, we get the company history from Charles Ni, chief sales officer. CF Moto was started

by Lai Guogui in 1989, making engine parts in a garage; in 1996 the company started making engines, then motorcycles in 2000 and quads in 2004. It has carved out a unique position in China in that it makes larger capacity motorcycles, not scooters, and focuses on export markets rather than the domestic market, which apparently buys 14 million motorcycles each year.

Its growth has been rapid and exports hit 30,000 units in 2012 then 40,000 this year. It has

1500 dealers worldwide and big market share in Russia, Sweden and Germany. Of interest to us, many of those units are quads and in Australia they are now ranked fifth in ATV sales.

The focus on export rather than domestic markets seems to be a key to their success.

Exports are critical to CF Moto, in part because of the size of recreational markets in developed countries, and because there are restraints on their domestic growth: the scooter market is huge but the larger-capacity motorbike market is relatively small and two wheel vehicles are banned from freeways. Also, Charles Ni tells us owning a quad or sideby-side is illegal in China.

With global expansion firmly in its sights, he says quality is a major focus for CF Moto with technical feedback from export markets fed quickly back into product development. “Engine development is continuous. R&D investment equals 9% of our sales revenue, high by most standards but important for a fast growing company like ours.”

Mojo Motorcycles Australia imports CF Moto motorcycles for the Australian market. Michael Poynton, one of two

CF Moto quads roll off the production line. The Chinese brand is now the fifth largest ATV brand in Australia.

founding directors of Mojo, has worked with a number of Chinese companies since setting up in 2003 and says the culture of CF Moto sets them apart. This includes their focus on overseas markets, their professionalism, strong communication and long-term approach.

“They understand the importance of consistently building equity in their own brand in export markets, which many Chinese companies don’t get.”

Mojo is the fastest growing motorcycle company in Australia, selling some 5000 units per year through a network of 80 dealers. CF Moto is its biggest brand, selling 2500 units in 2014, mostly fourwheeled. CF Moto is now the fifth best-selling quad brand in Australia with 10% market share and

Poynter expects to achieve 15% market share in quad/ side-by-side sales – about 2000 units – in 2015.

Breaking the Australian quad/side-by-side market into segments, Poynter says CF Moto has 17% of the 450-550cc quad market, 11% of the over550cc quad market, 39% of the sports side-by-side market, 18% of the under650cc utility side-by-side market and 18% of the over-650cc utility side-byside market.

They are eagerly awaiting a 400cc quad in 2015 to give them an offering in the segment that many farmers shop in – the sub450cc segment. The new 550 side-by-side will also be important for Australia and New Zealand where there is a growing trend toward side-by-side sales.

Poynter understands

that the quad/side-byside market downunder is all about agriculture and has impressed this on CF Moto who initially focused on large capacity, longwheel base quads for the huge Russian recreational market.

Charles Ni says they have learned plenty from Mojo, through regular technical reports from Mojo and bi-annual meetings with engineers, about the specific demands placed on their machines by farmers. And about the models and specifications that will best suit our markets.

“We don’t do much testing specifically in farm conditions but extensive testing is done in a range of harsh conditions unique to all our markets and all engines are bench-tested for 400 hours.”

iod

ine ran g ,c hlo e inc rhe lud xid es: ine ,d d

BS a

hard-working, proven teat protection

Protect your hard-working cows with the proven protection of Ready to Use Theraspray Gold, Theraspray Gold, theraspray 5 ready to Use, theraspray 20, Theraspray Red, Blu-Gard Concentrate and gSe Udder emollient teat care solutions.

we work harder so you can work smarter. www.ecolaB.com *APVMA Approval No: 58509, 47545/0802, 68319/58101, 68079/57440, 47746/0902, 45899/0802 and 67863/56998.