Dairy News Australia August 2016

Industry to seek solutions at symposium PAGE 5 CROWDFUNDING PUSH Locally sourced, locally made PAGE 7

TARGET HEALTH How benchmarking can reduce calf deaths PAGE 25

AUGUST, 2016 ISSUE 72 // www.dairynewsaustralia.com.au

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DAIRY NEWS AUSTRALIA AUGUST 2016

NEWS // 3

Class action against clawbacks builds RICK BAYNE

Safety back in the spotlight.

PG.8-9

Dairy Australia’s budgeting push.

PG.12

More Grunt: When big was bigger.

PG.32

NEWS ...................................................... 3-12 WORLD ................................................. 13-15 AROUND THE REGIONS ............. 16-17 OPINION ..............................................18-19 MARKETS .......................................... 20-21 MANAGEMENT ...............................22-23 BREEDING MANAGEMENT ........... 24 ANIMAL HEALTH ...........................25-27 HAY & SILAGE ................................. 28-31 MACHINERY & PRODUCTS ...................................... 32-34

A POTENTIAL class action against milk price clawbacks is gaining momentum with up to 300 farmers expressing interest in joining a legal challenge.

Adley Burstyner and Harwood Andrews have joined forces to investigate legal action against Murray Goulburn and Fonterra, claiming they had no contractual right to impose the clawback.

Lawyer David Burstyner said the legal action was moving “full steam ahead”.

“We’ve got between 200 and 300 farmers who have expressed interested and the feeling is that a lot more will participate as we move forward,” he said.

Information sessions for northern Tasmanian farmers will be held in Smithton and Devonport on Friday, August 26 and further meetings are planned in northern Victoria, Gippsland and western Victoria in early September.

Murray Goulburn has said it will “vigorously defend” an existing class action lodged in May

by Victorian solicitor Mark Elliott on behalf of unitholders and was not aware of any further actions being filed.

Mr Burstyner said he hoped the planned case would reverse the clawback, stop a clawback

Farmers protested the clawback payments as part of rallies in May.

$4.75. say retrospectively,” Mr ever happening again and “A farmer is entitled to Burstyner said. improve transparency in rely on the processor when “The second part of the payment arrangements. they make the forecast,” he case is that even in theory “We’ll only go ahead if said. “Nothing happened so it is permissible to have a farmers want to do it, but everyone thought it’s realistic to expect we will get “A farmer is entitled to rely it was all rosy.”

Mr Burstyner better outcomes on the processor when said the case for farmers,” he they make the forecast.” would send a said.

- Lawyer David Burstyner strong message The case to processors that is expected to claim the processors had no retrospective clawback, you a clawback would not be accepted without challenge can’t do it after 10 months contractual right to reduce and that farmers want of saying you’re not going the price retrospectively fairness and transparency to. and apply a clawback and in payment and pricing “For a lot of the period had not properly informed practices. farmers of the potential for they were saying they still While the main focus hoped for the forecast $6.05 a price cut. of the planned claim is (/kgMS) as the closing “The contracts are Murray Goulburn, Mr price. Not in anyone’s explicit that there can be a Burstyner said Fonterra wildest dream did anyone step-up with back pay and contracts were similar and expect the closing price to they say they can reduce be less than $5.60, let alone don’t mention specifics the price, but they don’t

about a retrospective step down.

However, he added that Fonterra had in August 2015 issued a warning that it may reduce prices.

Mr Burstyner said having enough farmers involved was critical for the viability of the case.

He also said there could be an option to pursue a settlement.

Law firm Slater and Gordon is also investigating potential action, but was unable provide any further details at this stage.

Farmers interested in finding our more about the case can visit www.adleyburstyner. com.au/farmers-farmgate-milk-price-action

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DAIRY NEWS AUSTRALIA AUGUST 2016

4 // NEWS

Students take on $1L milk fight RICK BAYNE

STUDENTS AT a New South Wales high school have come up with a bumper idea to help dairy farmers across the country.

The Vincentia High School students at Jervis Bay have been selling car bumper stickers to raise funds for crisis counselling for farmers and to fight for an end to $1litre milk.

They hope to spread their message across the country and embark on more ideas to support dairy farmers.

Teacher John Fairs said the idea emerged from discussions about how many successful businesses start from trying to solve some sort of problem.

“I encouraged them to go to social media to learn about the biggest problem at the time, and that was the dairy crisis,” Mr Fairs said.

“We delved into it further and found out how serious it was so we decided to do something about it.”

More than 600 ‘Don’t Milk Our Farmers Dry: fight the $1 white’ bumper stickers have been sold at $3 each, raising more than $1200 after costs so far for Lifeline’s dairy crisis appeal which provides counselling for farmers hurting from price cuts.

The campaign’s Facebook page has also attracted more than 650 likes.

“Rather than just make a donation page, the students decided to sell something as a fundraiser and try to get people fired up,” he said. “What’s happened to the farmers isn’t fair.”

The sticker was designed by students Teneisha Ross and Charm

IN BRIEF GDT prices jump THE August 2 Global Dairy Trade price index rose 6.6% higher than the last auction, ending a series of flat results.

Whole milk powder prices, which have the biggest bearing on Fonterra’s farmgate milk price, shot up by 9.9% to US$2265/tonne.

Skim milk powder prices were up 2.1%, anhydrous milk fat rose 4.7 % and the butter index lifted 6.6%. The rennet casein index achieved the greatest lift in percentage terms 16.3%.

Lactose gained 3.7% and the cheddar price index was down 0.8%.

The rise in dairy prices, especially whole milk powder, most likely reflects concerns about tightening supply.

That price, while still well short of the US$3000/t required to put loss-incurring farmers back in the black, will nevertheless boost their confidence.

ABARES surveys now underway

Teacher John Fairs pictured with some of the students at Vincentia High.

Left: The sticker designed by students.

Hammond and the Facebook page was set up by student Campbell Blair.

More than 600 stickers have been sold but Mr Fairs believes the sales are just scratching the surface of potential.

“The sales have been a bit of a rollercoaster but we’ve sent them all over, from Northern Territory to Tasmania,” he said.

Mr Fairs and the students are trying to collaborate with other like-minded Facebook sites and would like to encourage other schools to get behind the campaign.

They are also looking at other ways to help farmers, including an idea for a national day of dress-up for students to wear black, white or brown in the colours of cows.

“We don’t want the momentum to slip,” Mr Fairs said. “Things haven’t become better for the farmers; they’re getting worse.”

Mr Fairs said the students realise their campaign won’t solve the problem but it could continue as a permanent fight against $1litre milk.

They have made a video highlighting how bottled water costs more than milk.

“There will be arguments that cheap milk only makes up a small percentage of overall milk products, but it does put downward pressure on the prices of other milk and we think that it is disrespectful to dairy farmers.

“We hope to take the fight to a bigger level. We want to make it national.”

Neither the students nor Mr Fairs are from dairying backgrounds, but that hasn’t stopped them embracing the cause with passion.

“It’s also about trying to prove to students what can be achieved with hard work and good intentions,” he said.

The response from farmers has

been overwhelmingly positive.

A group of students visited a local farmer, Tim Cochrane, who threw his support behind the initiative.

“Dairy farmers in our local area haven’t been hit as hard as others parts of the country,” Mr Fairs said.

“But farmers like Tim Cochrane have been fighting the cheap milk since it came in, but nothing has been done.”

Mr Fairs hopes to spread the word about supporting dairy farmers far and wide.

He recently attended an unrelated fundraiser and asked if he could speak to appeal to people to buy the stickers.

“The reaction was amazing; 93 out of the 120 people bought a sticker that night. There’s a lot of community support when people hear that personal message.”

People can support the campaign by going to their Facebook page. www.facebook.com/Fight-the-1White-280054909050710/

THE annual ABARES survey of broadacre and dairy farms is now underway. ABARES executive director, Karen Schneider, said the survey was an opportunity to provide farmers, industry bodies and government with information essential to good business planning, investment and policy development. “Our survey collection officers will conduct face to face interviews over the next four months with more than 1900 farmers selected for the survey,” Ms Schneider said. “The data provided by these farmers helps ABARES to build an accurate picture of the financial and production performance of broadacre and dairy farms across the nation.” Participation is completely voluntary and confidential.

Dairy to benefit from food innovation centre A NEW Food Research and Innovation Centre at RMIT’s Bundoora campus in Melbourne is set to boost Victoria’s contribution to the expanding food processing industry.

The centre was launched by the state’s Minister for Industry and Employment, Wade Noonan.

Food processing in Victoria employs more than 69,000 people and earns more than $8.7 billion a year in exports.

Nationally, the sector constitutes 30% of Australian manufacturing, employs more than 220,000 people and generates more than $55 billion in exports annually.

The centre will bring together education, research and industry, and aims to provide the necessary workforce for the food industry.

The centre is working with partners, including Tatura Milk Industries, Lion Dairy and Drinks Australia, Murray Goulburn and Sanitarium.

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Dairy NewS AUSTRALIA august 2016

news // 5

Industry forum to seek solutions to price crisis Rick Bayne

A TOP-LEVEL

symposium later this month will seek to come up with solutions for Australia’s struggling dairy industry.

Federal Agriculture Minister Barnaby Joyce is hosting the symposium which will involve farmers, processors and retailers, “to discuss industry solutions to the problems, impacting the dairy industry,” he said.

In the lead-up to the symposium, Mr Joyce and Prime Minister Malcolm Turnbull will meet with Murray

including a milk price Goulburn on August 16 index, which would and the Australian senior provide management “We want clearer price of Fonterra signals to on August 22. to provide farmers,” Mr The innovative Joyce said. symposium He said will follow in and practical solutions to his office Melbourne had started on August 25. help farmers discussions In a letter achieve a with Dairy dated July Australia and 28 to Farmer sustainable level of Australian Power president profitability.” Dairy Chris – ADF president Farmers about Gleeson, Mr David Basham development Joyce said he of a suitable understood milk price index. price transparency is a The discussions with great concern to farmers.

Murray Goulburn and “We have committed Fonterra will look at the to examine mechanisms,

David Basham

current challenges and what steps are being taken to provide a secure, viable future for suppliers, Mr Joyce said.

He added that the planned measures would build on steps taken by the government to create new export markets for farm

produce, strengthen farm management deposits and deliver accelerated depreciation for fencing, water and fodder storage infrastructure.

Mr Joyce also touted the government’s $579 million dairy assistance package.

Australian Dairy Farmers acting president David Basham said he welcomed the government’s commitment for the dairy symposium soon into its new term.

“The ADF will be working hard over the next few weeks with state organisation members to prepare for the

symposium,” he said.

“We expect it will provide an opportunity to discuss the major issues facing the industry including $1 milk, fair contract terms and conditions, a world dairy commodity pricing index, issues in WA where some farmers have been given notice of not being picked up and backpacker tax, to name a few of the high priority issues.”

Mr Basham said ongoing support and commitment of government is essential for the dairy industry to successfully navigate through trying times.

“We want to provide

Barnaby Joyce

innovative and practical solutions to help farmers achieve a sustainable level of profitability,” he said.

“We need to ensure that the solutions we present are in our farmers’ best interests, so they can take control of their situation and make informed choices. “

New voices need a seat at the table DESPITE a letter of

reply to his concerns from the agriculture minister, Farmer Power president Chris Gleeson said the group was not at this stage invited to the dairy industry symposium later this month.

He had written to Barnaby Joyce after the milk price crash but Mr Gleeson said action was needed, not just words.

“Three years ago ADF had the same thing but nothing came out of it,” Mr Gleeson said.

“The industry “The industry needs a big needs a big shake-up, shake-up, but if you keep but if you keep doing the same thing with doing the same thing with the same people noth- the same people nothing gets ing gets done. done.”

“We need to change – Chris Gleeson, Farmer Power for the better. We’re (Farmer Power) in pendent review “The industry is in the touch with the industry. It of the indusspeaks volumes about how worst shape it’s ever been try three years in with prices that are not out-of-touch Barnaby is if ago and before sustainable. it’s just the same people the election we “The industry needs around the table.” had politicians promise action and we’ve got a Mr Gleeson said an independent review number of points that Farmer Power would but now they say it’s up to need to be done. attend and contribute if Barnaby and this roundta“We asked for an indeinvited.

in brief Joint venture at Penola plant COLIN McKENNA’s Midfield Group and Louis Dreyfus Company Asia have announced a joint venture for the construction, development and management of a dairy processing plant and related commercial activities.

The new plant, currently under construction in Penola, South Australia, is expected to start operations in July 2017.

When completed, the plant will have an annual processing capacity of 220 million litres of raw milk, producing dairy powders and fats for the domestic and international markets.

“We at Midfield are confident and accomplished in our manufacturing capabilities and have the added benefit of being milk producers too,” Colin McKenna said.

“Our new dairy processing company is expected to become knowledgeable of global dairy markets and their respective marketing environments very quickly. The joint venture partnership will therefore provide us with market intelligence and an immediate competitive

presence in global markets, enabling us to add significant value and advantage to our Australian raw milk producers, our dairy farmers.”

Fresh organic milk plan for Fiji AN Australian company plans to open an organic dairy farm with its own processing facilities to produce fresh milk and other dairy products for the local Fijian market.

Australian Natural Proteins Ltd has entered into an agreement with the Fijian-based, Anthony Family, and hopes to also pursue growth opportunities with milk made from an initial herd of 500 cows.

A company statement said milk in Fiji currently only sold in UHT packs, with locally produced milk fetching (A$1.80) and imported UHT milk around A$2.00 to A$2.40 a litre.

It estimates farm and processing costs at A$0.85 per litre.

The company is also pursuing the acquisition of five dairy farms in Australia.

industry review was a priority but would take time.

In the interim, Farmer Power wants changes to the government’s support package to make it work better for farmers.

Mr Gleeson slammed the assisChris Gleeson tance package as ineffective, claiming the concessional loans ble, which means nothing were not working. will happen.”

“I only know of one Mr Gleeson said an

person who’s accessed it; the way the criteria is set up no-one can access it. It’s going to be a failure and in the meantime we see cows sold to pay monthly bills and farmers exiting the industry.

“The industry is in crisis; it’s not the farmers’ fault they can’t repay the loans.”

Farmer Power has also made a submission to Productivity Commission on the future of the industry.

DAIRY NEWS AUSTRALIA AUGUST 2016

6 // NEWS

New laws give power to courts to strike out unfair contract terms three months even though the term of the contract has expired.

“There are all sorts of strange things in contracts AUSTRALIA’S and there is concern from COMPETITION time to time from farmers. watchdog says farmers “Over time, some will have better protection companies have used for from unfair contract terms their advantage the fine under new laws being print clauses that farmers introduced later this year. haven’t picked up.”

The Australian ACCC Commissioner Competition and Mick Keogh said many Consumer Commission small businesses entering is urging agricultural into contracts with larger businesses to review businesses have no standard form option but to accept contracts that all the terms of are provided to the standard form farmers and other “There needs to be fairness in the contract that they are small businesses.

The new law, contracts; this is about given.

However, the new which aims to making sure farmers law will allow the protect small don’t bear all of the courts to strike out businesses, any contract terms including farmers, risks in the supply that unfairly benefit from unfair terms chain.” one party over the in business-toother. business standard “Imbalances in form contracts, bargaining power are will apply from November farmers had regularly particularly common in complained about unfair 12. agriculture supply chains terms in contracts which Currently, many small and the ACCC wants left them with too much businesses entering into farmers to be aware of risk compared to bigger contracts with larger these new protections, businesses have no option businesses. to ensure they get a fair “There are different but to accept all the terms clauses around the country deal when entering into of the standard form a standard form contract in different contracts that contract that they are with a larger business,” Mr we need to look at,” he given.

Keogh said. said.

The move has been “The ACCC will be “For example, some welcomed by Australian working with agriculture don’t let farmers leave for Dairy Farmers acting RICK BAYNE

president David Basham who said the extra protections should be fairer for farmers and mean they won’t carry too much of the risk burden.

“It’s something we’ve been pushing for,” Mr Basham said.

“There needs to be fairness in the contracts; this is about making sure farmers don’t bear all of the risks in the supply chain.”

Mr Basham said

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businesses and those that supply goods or services to the sector to promote compliance with the law.”

Mr Basham encouraged farmers to seek professional advice on contracts.

“For most people buying a car is a big purchase; this is about a much larger and more complex situation and with an average farm worth $1 million they should be seeking advice and making sure the clauses are fair,” he said.

He said the new laws could protect farmers from the likes of the recent clawbacks in milk prices.

“Understanding that the milk price can be dropped at really short notice to ridiculous levels is something farmers need to know and we’d need to test that going forward.”

Mr Basham said he hoped the new powers for farmers would make a difference.

“It’s hard to know if

Mick Keogh

the new standards are going far enough until we see them in operation,” he added. “We’ll monitor them to see that they are achieving what needs to be achieved; if not we’ll push

for some alterations.

“But we definitely support the intention; it’s important we get this in a much fairer space for farmers.”

If a farmer is concerned

about the terms of a contract they have received, they can visit the ACCC website or contact the ACCC’s Agriculture Unit for information about the law.

Profit slump for Saputo CANADIAN-OWNED WARRNAMBOOL Cheese and

Butter Company, Victoria, saw its net profit slump 88% last year.

The company, owned by Saputo, blames the profit decline on lower global dairy prices and a high raw milk cost relative to market returns.

For year ending March 31 2016, WCB’s net profit after tax was A$4.2 million, compared to A$35m for the nine months ending March 31, 2015.

Saputo bought WCB in 2014.

WCB’s revenue for the 12 months reached A$653m, up A$200m over the previous year. But earnings before interest, tax, depreciation and amortisation (EBITDA) decreased

by A$32.3m (56.6%) to A$24.8m.

On May 25, 2015 WCB completed its takeover of the everyday cheese business of LionDairy & Drinks Ltd. WCB chairman Lino Saputo Junior says the business is now fully integrated and has allowed WCB to get more of the consumer branded

Lino Saputo Junior, WCB chairman.

everyday cheese products segment in Australia and reduce its exposure to international market fluctuations.

Saputo Junior says the company intends to keep raising efficiencies.

It wants to grow, investing in capital projects to increase manufacturing capacity, grow milk intake and create new opportunities.

“As for the marketplace at the end of May, we had highlighted for fiscal 2017 that international dairy prices were expected to remain weak with global milk production remaining

high and a limited change in demand.

“Raw milk cost is expected to align more closely with market conditions for the 2016-17 milk season. In line with our expectations the price paid to our suppliers was reduced by 14% on July 1. Dairy prices remain weak with no change in demand. The Australian dollar remains volatile.”

WCB recently raised A$141m by issuing new shares, bought by about 30% of shareholders. This was used to pay off debt and strengthen the balance sheet.

DAIRY NEWS AUSTRALIA AUGUST 2016

NEWS // 7

Marco – the flexible summer turnip crop Left to right: Rosie the dog with Meg, George (front), Dale, Harry (front), Paula and Anzac the dog.

Crowdfunding push to process milk on farm QUEENSLAND DAIRYFARMERS Paula and Dale Fortescue are

hoping the local community will put its money where its mouth is to keep dairying in their area.

The Fortescues from Eungella, inland from Mackay, have launched a crowdfunding campaign to build a $100,000 milk pasteurising and bottling plant to supply the local market.

At the time of press, the campaign through their Eungelladale website has raised $2400 and they are confident more will be coming.

“People said we should give it a crack and we’ve already had a lot of hits on the site and a lot of positive feedback,” Mr Fortescue said.

The farmers are worried that when their current contract with processor, Parmalat, expires at the end of the year, the company won’t want to continue a 900km round trip to collect milk.

“We’re a fair way from the factory and from the beginning of next year there will be only two dairies left here,” Mr Fortescue said.

“They’re obligated till the end of the year under the current contract and they say they won’t leave us high and dry, but we’re worried about what might happen,” he said.

A Parmalat spokesman declined to comment on future contracts.

Mr Fortescue said $100,000

would allow them to build a small money unless you have no debt and factory and buy machines to a really good farm,” he said. “You’ve pasteurise and bottle the milk as got to look at alternatives and keep fresh cream milk to sell locally and your options open.” supply coffee shops.

The farm also produces bath milk “I would have no drama selling that is not for human consumption every drop of milk from this farm,” on a separate property. he said.

“We’ve had a good response The other surviving local dairy to that and a lot of requests for farmer from the end of 2016 could pasteurised milk so decided to see use the facility and if the local community others might be enticed would support it,” Mr back to the industry.

Fortescue said.

“If you pay a decent “You’ve got Queensland amount of money, to look at Dairy Organisation there are a couple of alternatives president Brian unused dairies with and keep Tessman welcomed their gear still intact the idea and said it was that could come back,” your options a chance for people to Mr Fortescue said. “I’ve open.” show support for local spoken to a few and dairy farmers. there’s some interest “I don’t know all out there.” the ins and outs about it, but we Mr Fortescue said deregulation encourage more competition in the and $1 litre milk had severely market and crowdfunding is another curtailed the local dairy industry way to get things off the ground,” Mr in the 21st century and the third Tessman said.

“It’s a hard road to set up surviving dairy farmer in the region had indicated he would be leaving at alternatives and some haven’t made it but there are a number who are still the end of the year.

Mr Fortescue was raised on a functioning and slowly gaining more dairy farm and has spent his working in the market,” he said.

“If they are willing to have a go, life farming and says he wants to continue in the industry with his good for them.” herd of 100 of Friesian and Friesian- • People can support the campaign at www.eungelladale.

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DAIRY NEWS AUSTRALIA AUGUST 2016

8 // NEWS

New farm safety starter kit makes safe choices easier DAIRY AUSTRALIA has launched a

new Farm Safety Starter Kit. Announcing the launch of the kit last month, Dairy Australia managing director Ian Halliday said: “Safety must be first and foremost in everyone’s mind when working around a farm. We must try to ensure everyone thinks ‘safety’ before starting on a job.”

The kit includes a set of quick safety scans that can be used to check for potential hazards and risks on the farm.

It also has a safety system snapshot, which will enable farmers to check their farm safety systems against the current Work Health and Safety legislation.

The Farm Safety Starter Kit will be followed by a comprehensive Farm Safety Manual, which is currently undergoing trials.

“It’s a good time to focus on how we can prevent future work-related deaths, injuries and illnesses,” Mr Halliday said.

“Unfortunately, 2016 has been a horror year for deaths on dairy farms.

Five people have died already and we are only half way through the year.

“It is a time to remember those who have died from a work-related injury or illness.

“By raising awareness of work health and safety and taking action we can help prevent further injuries and deaths.”

Australian Dairy Farmers’ acting president David Basham said to retain a highly skilled workforce a culture shift is required.

“Dairy farms are not typical workplaces. There are many potential risks and stressful situations – particularly because many farms operate with the added pressure of running a small, family business,” Mr Basham said.

“Across Australia, one in five people suffer with mental health issues.

“Farmers are no exception. Dairy farm life in some of our key dairy regions is very stressful at the moment. We need to lead the industry in prioritising health, safety and well-being – for the benefit of our people.

“It’s one thing to go through the pain and cost of injury, the lost time and productivity; it’s quite another thing to have a worker or family member die at work on the farm. No monetary compensation will ever replace that person.”

Worksafe Victoria recently reported that farms are the most dangerous workplaces in the state with 30% of workplace deaths in an industry that employs just three per cent of the workforce.

Research shows that it does not cost a lot of money to set up a practical farm

DAIRY NEWS ON THE GO OUT NEWS CHECKCHECK OUT THEUSLATEST ON-LINE AND INFORMATION AT

Many dairy farmers are still not using helmets on quad bikes despite the dangers.

safety system yet the economic impacts are substantial.

According to the Australian Centre for Agricultural Health and Safety (2015) for the 39 dairy related cases, the estimated direct economic impact was $88.6 million, with an average of $2.27 million.

Dairy Australia says it is working with state safety regulators and milk processors to provide farmers with the awareness and training they need to operate safely.

“Farm safety is a top priority issue for us,” said Mr Halliday.

“We need to work together to change

mindsets and behaviour to ensure these tragedies don’t continue to haunt the dairy industry.”

The new Farm Safety Starter Kit can be downloaded or ordered at www.thepeopleindairy.com.au/ farm-safety/safetystarterkitdocs

Injured farmer’s safety warning

at

“I think farmers walk around with their heads in the clouds.

They are naive to the implications, the cost and the consequence of an accident.”

www.dairynewsaustralia.com.au Available every month

just look for the arrow!

Injured farmer Colin Gray with daughter Robyn.

GIPPSLAND DAIRY farmer

Colin Gray warns many farmers have their heads in the clouds on safety.

Due to an on-farm accident, Mr

Gray is now paralysed from the waist down.

He urges others not to be naive when it comes to the potential risks on farm, and the costs and

the consequences of an accident.

You can read his story online at www.dairynewsaustralia.com.au/ machinery-products/injured-farmers-safety-warning.html

DAIRY NEWS AUSTRALIA AUGUST 2016

NEWS // 9

Getting started: Safety Checklist EVERY farm is different and, even though there are similarities in work practices and risks, every farm needs its own risk control solutions to achieve the best safety outcomes.

Use these questions as a starting point to working out what you need to do to make your farm safer.

■

Do you have an induction process for employees, contractors and visitors?

■

Do you have a workplace health and safety policy and do you have procedures that are followed for all tasks?

■

Do you have a consultation/communication system with employees?

■

Is there an emergency response plan for the farm?

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Do you have a documented process for hazard, accident and incident reporting? Are there adequate amenities for people in the workplace?

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Do workers possess licences and/or certificates of competency for the plant they operate and tasks they undertake? (e.g. forklift licence, driver’s licence, chemical user’s certificate)

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Does all plant and equipment used in the workplace comply with regulations? (includes guarding, noise, design, maintenance and use)

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Do you have a process for managing work environment hazards including noise, dust, hot and cold conditions and sun exposure?

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Have you addressed child safety in the workplace?

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Are chemicals managed correctly – records, storage, personal protective equipment, usage, safety data sheets, signage?

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Have you displayed adequate signage in the workplace? (e.g. visitor directions, traffic movement, specific hazards, use of personal protective equipment, general warnings, confined spaces)

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Does personal protective equipment meet legal requirements – quality, comfort, storage, maintenance, usage?

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Do you have a policy/procedure which enables people working in remote and isolated locations to receive assistance in emergency situations?

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You can use the information and templates on The People in Dairy to develop processes and/ or documents that will help make your farm safer.

New quad bike safety subsidy THE VICTORIAN

alternative safer vehicle.

Last year, 22 people lost their lives in quad bike incidents in Australia. In Victoria, two farmers have lost their lives on farms in the past three months after being crushed when their quad bikes overturned.

The rebate supports a recent decision by

Government has announced a $6 million subsidy scheme for farmers to make their quad bikes safer.

The scheme provides rebates to farmers to either fit rollover protection devices on existing quad bikes or help them purchase an

WorkSafe to include appropriately fitted rollover protection devices on quad bikes to its list of approved safety measures to help drive down workplace fatalities and injuries.

The government said WorkSafe will also be shortly releasing a major public awareness

campaign in regional Victoria on the risks associated with using quad bikes on farms.

Eligible farmers will be offered up to $600 each for up to two quad bikes to fit rollover protection (known as an operator protection device or OPD), or $1200 towards the cost of buying

a more appropriate work vehicle.

It is estimated that more than 5000 farmers will receive the rebate over the two-year life of the scheme, which will be managed by WorkSafe Victoria and the VFF. A similar scheme was also announced in NSW last month.

T R O P E R L ECIA

SP

Source: www.thepeopleindairy.org.au/safetystarterkit

Auto industry ATV safety guide A NEW safety guide for All Terrain Vehicle riders has been released to raise awareness about staying safe on your ATV. The guide offers a handy checklist where, at a glance, a buyer can identify whether an ATV suits their needs, or a Side-by-Side Vehicle (SSV), or perhaps even a more conventional farm-specific motorcycle.

Chief executive of Federal Chamber of Automotive Industry, Tony Weber, said dealers play a vital role in assisting buyers in choosing the type of ATV which best suits their needs.

The guide explains how the types of terrain, the tasks for which it is required, and rider experience are all factors which combine to influence vehicle selection.

It also advises riders about the well-known safe practices of wearing a helmet and protective gear, the value provided by training, the dangers of allowing children and passengers on adult size and single seat ATVs, and the importance of following the manufacturer’s recommendations and warnings. www.atvsafety.com.au

NEXT ISSUE: SEPTEMBER ABVs

Dairy farmers who want to breed for improved fertility and workability will be keen to investigate the April release of the Australian Breeding Values (ABVs).

The new fertility ABV is a better indicator of the fertility of a bull’s daughters because it draws upon the data for for several traits, including lactation length, mating and pregnancy data. This is something farmers have been asking for and Dairy News Australia will investigate how it can impact on-farm breeding programs. We’ll also examine the bulls with the highest Australian Profit Rankings and how they could influence your breeding program.

BOOKING DEADLINE: August 31 AD MATERIAL DEADLINE: September 6 | PUBLISHED: September 13 CONTACT: BRETT MATTHEWS | T: 0417.440.009 E: brettm@dairynewsaustralia.com.au

Dairy News AUSTRALIA august 2016

10 // news

Flooding drenches Gippsland Jeanette Severs

LIKE much of south eastern Australia, Gippsland has been drenched this past few months.

In fact, it’s been the nation’s thirdwettest May-July ever, according to the Bureau of Meteorology’s recent drought report.

One dairy farm worker is lucky to be alive after the car he was driving to early milking was swept off the road during the floods.

Tambo Upper’s Nathan Corlass was driving to morning milking at Bruthen when he came upon a rapidly rising Tambo River.

“I had brought the gears down to third and dipped the lights coming over the crest [in Stephenson Road], otherwise the high beams hit the houses on the other side of the river,” Nathan told Dairy News Australia.

“I was probably doing 40-50kmh

when I hit it. I heard the water and dropped the power windows.”

Nathan was driving his employer’s Toyota Hilux and the car was quickly swept along in the current.

“I got on top of the Hilux. I’m 2 metres tall and it’s another 2m and it was rapidly going underwater,” he said.“I couldn’t get a signal on my phone to call for help.”

Stripping off the bulk of his winter morning milking gear and his boots, Nathan had no choice but to go for a swim.

It took him just over half an hour to get back to shore.

“I went into the water at 5.40am and I was sitting in Waddell’s house getting dry at 6.17am,” he said.

“If I didn’t know how to swim – and if I wasn’t fit – there’s no chance I’d be here to talk about it now.

“I don’t feel like going swimming again any time soon,” Nathan said.

“I crossed the river only a few hours

The Brodribb and Snowy Rivers met and married, inundating dairy farms at Brodribb (pictured), Marlo, Orbost and Jarrahmond.

Photos: Jeanette Severs.

Dead cattle at Jarrahmond.

Big wet grows grass jeanette severrs

NERRENA dairy farmers Josh Greaves (pictured)

and his father Simon were feeding six silage rolls weekly to their herd throughout summer and autumn.

Then heavy rain began falling in South Gippsland in May, followed by flooding rain in June and July.

The difference that continued rain has brought, has meant grass.

The pair milk 240 Jersey cows and run 80 Angus cows and calves off 600 dryland hilly acres in South Gippsland. Their focus is on growing grass.

“In May we started putting out urea, when we started getting rain,” Josh said.

Applied at an initial rate of 100kg/ha then 80 kg/ha every four weeks, grass has been boosted along, meaning only one round bale of silage is fed weekly now.

Cattle grazed a week ago in this paddock; and the regular application of urea along with heavy rainfall can be seen in the recovered pasture growth.

Cattle were taken out of the paddock in the background on the day of the photograph, after two days of strip grazing.

before, going home after evening needed emergency services help at milking, and the water was down. It was 10pm the night before while trying to cross a nearby road. the fastest flood I’ve seen.

Dairy farmers were caught “There’d been no flood warnings unprepared and some for the Tambo River on cows died in floodwaters the radio.” at Bruthen and Among a series of flood “I don’t feel Jarrahmond. warnings for Gippsland, like going By the following the Tambo River was swimming consistently missing. weekend, where Peter Waddell said again any floodwaters were the river was running at time soon.” receding, farmers 25mph at least. were clearing fences – Nathan Corlass and feeding silage to He agreed there had been no flood warnings marooned cows. and the river was down Other farmers were the previous night. digging drains to disperse water or, Susie Waddell was concerned that where they could get heavy machinery no inspections were made and no onto paddocks, putting out fertiliser. signs put out, even after another driver But many farms were still inundated.

DAIRY NEWS AUSTRALIA AUGUST 2016

NEWS // 11

Draft PC report raises regulation questions AUSTRALIAN DAIRY

Farmers has welcomed a recent draft report released by the Productivity Commission into the regulatory burden on Australian agriculture.

The report backs recommendations made by an ADF submission earlier that the level of red tape imposed on dairy farmers, including constraints around land use planning; plant science technologies; and transport regulations are costing farm businesses unnecessarily.

ADF acting president David Basham said minimising unnecessary red tape would deliver meaningful economic benefits for the entire dairy supply chain.

“When regulation is unnecessary, it often adds an avoidable cost to dairy farmers, which has to be absorbed by the business,” he said.

“This can have the effect of constraining growth or limiting a farmers’ ability to allocate funds to necessary aspects of the business.

“This report opens up the conversation with industry about reducing red tape on dairy farmers while maintaining our high biosecurity standards and safe, quality products.”

Mr Basham said ADF would be providing feedback on a number of aspects of the draft report, including the need for

an effects test to prevent predatory pricing.

But Farmer Power vicepresident Alex Robertson said significant industry change was still being overlooked by the Productivity Commission’s draft report and the ACCC’s Agriculture Engagement Unit.

“There’s really no regulations to protect farmers from bad business practices from supermarkets and processors,” Mr Robertson said.

“Supermarkets and processors can hold loyalty payments back from their suppliers and there are no checks and balances to prevent it. If a company makes an assumption of what it wants to pay people, it should be held to that.”

Mr Robertson said a code of conduct was necessary.

“There is collusion in the market. We want a code of conduct so everyone is being treated fairly.

When one processor changes their price up or down, other companies shouldn’t be able to copy them,” he said.

Farmer Power also wants loyalty payments taken out of the equation and a transparent pricing structure.

“Stop the process of loyalty payments, blackmailing farmers to stay with processors,” Mr Robertson said.

“Stop the rise-and-fall contracts out of supermarkets. When a supermarket gains profit from a rise in world market prices, they don’t pass it on; but when

they lose profit margin, the supermarket gets an extra payment from the processor to make up the shortfall. That extra payment comes from the

farmer – like all extra payments beyond the farm gate price.”

Mr Roberston said a code of conduct for all of industry should exclude

we

predatory pricing behaviour, price drop downs to the farmer and clawbacks.

“We want fair play rules assessed and agreed by all.

The system is wrong and

needs to change.”

The Farmer Power submission also called for an end to the compulsory dairy levy but a compulsory levy on drinking milk.

dairying

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Dairy News AUSTRALIA august 2016

12 // news

Prices will improve but volatility will stay: DA boss jeanette severs

AUSTRALIAN dairy’s peak service

body, Dairy Australia, says 2017 will see a return to improved prices for the nation’s dairy farmers.

That was the message from Ian Halliday, Dairy Australia’s managing director, on a two-day journey meeting dairy farmers in Gippsland earlier this month.

The forecast was dependent on the Asian export market remaining steady and European and New Zealand supply decreasing in volume while domestic consumption increased.

positive in New South “The next 12 months Wales (+0.4%) and are going to be pretty Western Australia (+6.5%). tight,” Mr Halliday said.

The national picture “Following 2% contraction across Australia was down in volume last year, this 8.8% in June and down financial year will be down 5% but we expect an 2.0% year to date; however the monthly increased price in “We know less reduction could be 2017. than 50% of attributed “By 2018, dairy farmers to seasonal Australia’s do a budget conditions dairy and the industry or have a will be back business plan.” normal drying-off to growth period pre – we are spring-calving. forecasting 1% growth in “All indicators are that milk volume; then 2-3% demand is remaining growth in milk volume solid in export markets. each year after that.”

Australia’s domestic Latest figures show market is still growing milk volume growth to in line with population end of June was only

growth,” Mr Halliday said.

But he warned the volatility in dairy prices of the past few years would continue, and sound business skills would be critical to managing it.

Dairy Australia is encouraging farmers to take up the offer a one-onone business consultation service, called Taking Stock.

“Every farmer is eligible. There are no criteria to undertake this individual consultation,” Mr Halliday said.

“We know less than 50% of dairy farmers do a budget or have a business plan. We can help them pull together the financial and physical data

they need.

“This is a way of helping farmers make informed decisions that are productivity based.”

Asked about recent budget cuts and promoting the industry to consumers, Mr Halliday said DA would change its tactics and rely on social media.

“We can’t afford television promotion of the Legendairy brand so we will do it through the, much cheaper, digital space,” he said.

In the previous year, $6 million of its budget was spent by DA on the Legendairy campaign, including television advertising.

Ian Halliday in Gippsland earlier this month.

Picture: Jeanette Severs.

The organisation has budgeted for a 14% decrease in income over the next three years.

Lower milk prices and volumes mean it is now budgeting on $52-53 million a year.

Advice helps pave the way forward New levy poll committee wheels in motion

DAIRY Australia’s

Ian Halliday and Neil Lane, along with GippsDairy’s Allan Cameron, met with Denison dairyfarmers Merv, Michael, Bree, Adrian and Lisa Whittaker on farm earlier this month.

The Whittaker family partnership has completed Dairy Australia’s Taking Stock program and are assimilating the results.

“Taking Stock enabled us to assess how we would go next year if we made no changes and alerted us to what we need to do based on the next year’s trading,” said Michael Whittaker.

Neil Lane said all dairy farmers needed to understand their costs and debt levels.

“This crisis has been an opportunity for the industry to learn good business principles,” Mr

NINE LEVY PAYING farmers will be part

From left to right: Gippsdairy’s Allan Cameron with Denison dairyfarmers, Merv Whittaker, Bree Whittaker and daughter,Lila, Dairy Australia’s Neil Lane, Adrian, Lisa and Hayley Whittaker and Ian Halliday.

Picture: Jeanette Severs.

Lane said.

“Farmers should be asking: what portion of my milk payment is being consumed by fixed debt?

“Our role is to help people understand their costs better, understand their standard expenditure and drive consistency in understanding cost of production, balance sheets and profit and loss accounts.”

taking stock includes: ■■

Understanding and managing your budget

■■

Identifying cost-saving options

■■

Calculating pasture consumption

■■

Managing debt and your balance sheet

■■

Understanding additional support services that can be accessed, including counselling and health services

■■

Creating an action plan.

(Source: Dairy Australia)

The one-on-one sessions with experienced dairy advisors are being offered to dairy farmers as part of Dairy Australia’s Tactics for Tight Times campaign and is supported by the Gardiner Foundation, the Australian Government, Victorian, South Australian and Tasmanian governments, and major dairy processors.

The sessions are available at no additional cost to all dairy farmers in Victoria, South Australia, Tasmania and NSW. Dairy Australia’s group manager farm profit and capability, Chris Murphy, said the offer of free oneon-one assistance through the Taking Stock program was in response to farmer requests.

“The strength of Taking Stock is that it is based on a one-to-one conversation

with a trusted, skilled advisor,” Mr Murphy said.

“It gives the opportunity to take time out from the business for three or four hours and have a meaningful discussion about the current situation and plans for the future.”

Advisors work with key members of the farm team over the kitchen table to support financial and physical analysis of their operation and facilitate discussions regarding the current business position, future options and an action plan for the business.

If you are interested in taking up the opportunity to do Taking Stock program call your Regional Development Program. Click ‘contact us’ at www.tftt. dairyaustralia.com.au for details.

of the new committee to assess whether to make changes the dairy levy.

There were nine vacancies for levy payers on the newly-formed Levy Poll Advisory Committee – who will advise on the level of levy funding to support Dairy Australia’s research, development and extension programs.

Nominations for the committee closed on August 5.

Dairy Australia managing director Ian Halliday said any changes to the dairy levy was a decision that had to come from the membership; the Board was unable to make that decision.

Victorian farmers Trevor Henry and Brad Missen were among those farmers calling for a halt on paying the dairy levy or reimbursement of last year’s levy (Dairy News Australia, June 2016), following the dramatic drop in farmgate milk prices in April.

Six initial members of the Levy Poll Advisory Committee have already been

nominated by Australian Dairy Farmers, Dairy Australia and the Australian Dairy Products Federation (see breakout).

Some or all of these initial members will form a selection panel to choose up to nine milk producer levy payer representatives to join.

“Any suggestion of reimbursement or reduction in the levy would have to come through that committee,” Mr Halliday told Dairy News Australia.

“Then any suggested change would need to be supported by a change in legislation.

“The other tool is 15% of eligible farmers can request a change to the levy poll at an EGM or AGM. It’s an industry led process.”

Last year, dairy levy payers supported the removal of the compulsory requirement for Dairy Australia to convene a levy poll at least every five years. Legislation has now been passed to effect this change, and the committee established in its place. Visit www.dairylevypolladvisorycommittee.com. au for more information.

Initial Levy Poll Advisory Committee members: ■■

Mr John Lawrenson – chair, (Also current chairman of Apple and Pear Australia Limited, former director of Bonlac Supply Company and previously managing director of the Australian Wheat Board.

John was also chair of the Dairy Levy Poll Process Review. )

■■

Mr David Basham - acting president, Australian Dairy Farmers

■■

Dr Dedee Woodside - director, Australian Dairy Farmers

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Mr Ross Joblin - company secretary, Dairy Australia

■■

Mr Jeff Odgers - director, Dairy Australia

■■

Mr Robert Poole - president, Australian Dairy Products Federation

■■

Plus nine levy paying farmers yet to be announced.

DAIRY NEWS AUSTRALIA AUGUST 2016

WORLD NEWS // 13

Chico – the drought buster New bobby calf rules take affect in New Zealand PETER BURKE

NEW REGULATIONS governing

the treatment of bobby calves have come into affect in New Zealand this month.

The regulations require bobby calves to be four days old before trucking, truck journeys must not exceed 12 hours, young calves may not be shipped across Cook Strait, and ‘blunt force’ killing (blow to the head) is banned except in an emergency.

A major development in the country’s quest to improve the welfare of bobby calves has been the setting up of the Bobby Calf Action Group (BCAG), comprising DairyNZ, Dairy Companies Association of NZ, Meat Industry Association, Federated Farmers, NZ Petfood Manufacturers Association, Road Transport Forum, NZ Veterinary Association and the Ministry for Primary Industries.

All eight organisations have worked separately and collectively to educate their members about the new

rules and their implementation.

DairyNZ and NZVA have run 60 training workshops for dairy farmers nationwide, and DCANZ has reviewed farmers’ individual terms and conditions of supply in respect of animal welfare and worked with other organisations to keep farmers informed.

The Petfood Manufacturers Association has updated its code of practice for managing bobby calves, and the MIA and the Road Transport Forum have run education programmes for members and suppliers to ensure compliance.

MPI’s director-general Scott Gallacher says from what he sees dayto-day the vast majority of NZ farmers do the right thing in animal welfare and MPI is confident the message has got out to farmers.

“That’s why we are working with all players in the industry and have run a media campaign direct to consumers, the public and farmers to ensure all know that if they see anything giving cause for concern

they should contact MPI and we’ll get to the bottom of it.”

MPI’s campaign about the new regulations was to alert anyone with an interest in animal welfare to be empowered to call them.

“It might well be an education programme all round because we are aware that often people see something that concerns them. I don’t want them to be left in the dark and have no-one to talk to. It is quite powerful for us when we get back to them and say ‘we have investigated that and it wasn’t what you thought.

It was actually this situation and there was no breach of the animal welfare rules’. From our perspective it is part of an education process because we have had a conversation with them,” he says.

Mr Gallacher says this is all part of the process of reassuring the public that MPI will investigate any complaint and if there is a breach of the regulations it will prosecute. MPI is trying to sort out the minority who don’t look at the rules, or ignore them.

Check us out Online NEWS MANAGEMENT STORIES MACHINERY REVIEWS AND MUCH MORE...

GET SOCIAL WITH DAIRYNEWS Everything a Keep up with the dairy farmer latest stories from needs is also by following online atus at

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Chico won’t cause grass staggers or facial eczema, and is resistant to insect pests such as diamond back moth and white butterfly. Livestock adjust quickly to Chico.

“For a summer-safe, multi-graze summer crop, providing flexible grazing management, there is nothing better than Chico chicory.”

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DAIRY NEWS AUSTRALIA AUGUST 2016

14 // WORLD

Global cheese yield up, prices tumble SUDESH KISSUN

CHEESE PRICES are falling world-

wide and it’s all to do with the milk glut.

In New Zealand, retail cheese prices have fallen to the lowest level in nine years; in the US, at the end of April, a record 540 million tonnes of cheese was in storage, up 11% from last year.

Lower prices impact returns for major cheese exporters like Fonterra and Open Country Cheese, adding further downward pressure on payouts.

More milk, especially out of the US and the European Union, has seen prices drop; with lower input costs cheese makers are finding it cheaper to churn out more products.

On Global Dairy Trade (GDT), the cheddar price peaked on October 6 last year at US$3234/tonne; by March 15 this year it had tumbled to US$2441/ tonne. It has since risen slightly and at the August 2 auction the cheddar price reached $US2886/tonne.

But Rabobank dairy analyst Emma Higgins says while cheese prices appear to have dropped in the last GDT event, throughout this negative price cycle the dairy fat complex, including cheese, has largely been getting prices at a premium to powders. This reflects strong demand from consumers in the northern hemisphere, particularly the US, and in Asia for pizza.

Ms Higgins told Dairy News that cheese stocks are higher, and growing, in the US than in Europe. This comes down to US milk production running quite strong for the past two years.

“Also, US processors no longer have the easy option of just producing SMP/ butter and selling it to the government through an intervention system in times of weak markets so they need to make commercial production scheduling decisions,” Ms Higgins says.

“Exports of cheese have stalled for the US due to the higher US dollar and more EU cheese in markets such as Japan and Korea.

“Given the strength of US demand,

More cheese being produced around the world sends prices tumbling.

inventories at this stage are largely manageable and not a cause for significant concern at this time.”

Christchurch boutique cheese maker Barrys Bay Cheese says smaller producers are immune from the global price drop.

“The big exporters Fonterra and Open Country who are selling cheese on the global market will be affected by the falling cheese prices and this reduction in revenue will no doubt impact on the make-up of the payout to their suppliers,” Mike Carey, Barrys Bay Cheese

told Dairy News.

US dairy farmers are expected to produce 96 billion kg of milk this year, a record. Much of it is being sold to cheesemakers who are stocking away their output, waiting for demand and prices to rise. The US has so big a cheese glut that every citizen there would need to eat an extra 1.3kg this year to work it off.

According to the US Department of Agriculture, at least half this stockpiled cheese is American, 2% is Swiss and the rest is “other.”

The reason lies across the Atlan-

Dutch cows all at sea

tic Ocean. Dairy product exports from Europe have been increasing for two years and cheese prices have been steadily falling.

The result is a global oversupply in milk and dairy products.

That means the US has taken advantage of falling prices and the weakening euro to buy up more European-made cheese; imports of EU cheese rose 17% last year and combined with an overproduction of milk by America farmers to combat similarly low prices, has resulted in extra cheese.

Co-op steps into Pakistan

A FLOATING dairy

farm? Yes, you’ve heard correct. Developers in Rotterdam, Holland, are planning to build a floating dairy farm.

The $4 million project, by the company Beladon, will have 40 cows on a 1200 sq.m floating platform, producing 1000L of milk a day to be pasteurised and made into yogurt in a dairy on the floor below.

The building will be concrete, relatively light and buoyant, with galvanised steel frames and a membrane floor that lets bovine urine soak through.

A machine will collect dry dung, another will top up food stations.

The cows will wander in and out of stalls and the milking section, and may potter over a ramp to reallife pasture on the land.

Also on the ground floor, water from the cows’ urine will be purified and used to grow red clover, alfalfa and grass under artificial light.

Some dung will be despatched to a nearby farm.

Beladon muses on its

An artist’s impression of the floating farm.

website about world population growth and the resulting rise in demand for food.

“The big question is how and where shall we produce this food and how healthy will the food be?

“One billion people suffer from [malnutrition].

Food production for a growing world population is an immense challenge.

“The area of arable land is decreasing while cities are grow with the demand for housing. Citizens are further and further away from farmland.”

The floating farm will produce and handle fresh milk very close to the consumers in the city, it says.

“We reduce the transport and logistics and save the environment from

greenhouse gases.

“Besides our daily dairy production we emphasise education on healthy food for children and other visitors... on guided tours.

“Floating farm offers a transparent... view of the entire process of milk handling, animal welfare and robotics.”

The website says the floating farm will open in

January 2017.

One question Beladon faces is do cows get seasick?

“They won’t here,” says spokesman Minke van Wingerden. “In Friesland, where I come from, sometimes they bring cows from one place to another on a barge. [The floating farm] will be very stable. When you are on a cruise ship, you aren’t seasick.”

EUROPEAN DAIRY co-op FrieslandCampina is entering the Pakistan market, signing to buy a 51% stake in Engro Foods, the second-largest dairy company in Pakistan.

The World Bank Group’s International Finance Corporation (IFC) and the Dutch development bank FMO will also own a stake.

Pakistan is the third-largest milk producing country in the world -- 38 billion litres of milk annually.

FrieslandCampina says it expects to benefit from the conversion of the Pakistani milk market from loose to packaged dairy products that will drive the volume growth of the latter.

At present no more than 10% of tradable milk consumed in Pakistan is processed and offered in packages. The conversion is expected to accelerate as the middle-income class grows, plus a desire for higher quality milk and increasing urbanisation.

Roelof Joosten, chief executive of Royal FrieslandCampina, says the deal will accelerate the co-op’s route 2020 strategy.

“Through this organised and successful company we will obtain a significant presence in the Pakistani dairy market in which a growing middle class is switching to buying more processed and packaged milk.

“Engro Foods offers us a basis to build further, creating value for our member farmers. We will also contribute to Pakistan’s agricultural sector through knowledge transfer of dairy production.”

DAIRY NEWS AUSTRALIA AUGUST 2016

WORLD // 15

Struggling EU farmers score another handout EMBATTLED

EUROPEAN

dairy farmers are to get another $780 million to help them weather the downturn.

About $235m will be set aside for EU-wide incentives to persuade farmers to cut milk production.

EU’s commissioner for agriculture and rural development, Phil Hogan, says in light of budgetary pressures the money is a ‘robust response’, raising to at least $1.5 billion the EU has assigned to farmers.

“Our ultimate goal is to see the much needed recovery of prices paid to farmers, so they make a living from their work and continue to provide safe, high quality food, and contribute to rural areas and rural jobs and the provision

of public goods.”

The UK will get $46m, the thirdlargest share in the EU. NFU dairy board chairman Michael Oakes says the commission has once again shown support for the farmers.

However, UK farmers have already voluntarily reacted to market conditions by pulling back on production: daily deliveries for the last two weeks of June were 9% lower than the same period last year.

This is without financial incentive, he adds.

“While grateful to the commission, we all want to see a sector that is competitive and market-orientated.

“It’s also essential the commission as soon as possible tells the details of the conditions for the financial support. The UK government must be given flexibility to decide how this money is used and should consult with industry to utilise this money as soon as possible.”

Meanwhile members of the European Committee of the Regions (CoR) want urgent measures to limit milk production. A report to the CoR last year shows that regulation of milk production volumes would have a rapid and positive impact on the incomes of all producers.

The study shows that European regulation of production volumes

would have a rapid and positive impact on farmgate milk prices.

This conclusion calls into question the theory that a decrease in production volumes at the EU level alone might not have an impact on European prices.

Temporarily capping production volumes would boost the incomes of all European producers. The baseline scenario – a 6% cut in milk volumes over a year -would see an increase in producers’ gross margin of around $7.8b as a result of a 14.6% increase in the milk price and a 38% increase in the gross margin.

EU Agricultural Commissioner, Phil Hogan.

Indonesia a priority for Fonterra INDONESIA IS one of Fonterra’s prior-

ity markets where it sees huge potential for growth.

The co-op opened a $36 million plant at Cikarang last year; up to 87,000 packs of the co-op’s Anlene, Anmum and Anchor Boneeto dairy brands are packed there each day.

New Zealand Prime Minister John Key visited the plant last month during an official tour of Indonesia. With him were Indonesia’s Deputy Minister of National Development Planning, Gellwynn Daniel Hamzah Jusuf; New Zealand Minister of Trade, Todd McClay; Fonterra’s chief operating officer of farm source, Miles Hurrell; and the president director of Fonterra Brands Indonesia, Achyut Kasireddy.

Mr Kasireddy said NZ and Indonesia have shared a positive relationship for 65 years and Fonterra has flown the NZ flag in Indonesia for at least 30 years.

“Our investment in this site allows us to produce more high quality dairy nutrition to meet Indonesians’ increasing demand for dairy.

“At the same time, as a dairy cooperative owned by farmers, we are looking to help grow the Indonesian dairy industry by working with local dairying communities to help up-skill farmers through our Fonterra Dairy Scholarship programme, now in its fourth year,” he said.

Several farmer alumni from the Fonterra Dairy Scholarship programme told the delegation of their experiences during the 12 month courses, run with the Indonesian directorate-general of livestock farming.

They learn best-practice farming techniques during farm training in Indonesia and during a 12-week visit to NZ. The delegation toured the factory, tasted dishes created by a Fonterra chef and learned about the co-op’s consumer

New Zealand’s Prime Minister John Key meets Indonesian dairy farmers taking part in Fonterra’s scholarship programme.

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DAIRY NEWS AUSTRALIA AUGUST 2016

16 // AROUND THE REGIONS

Gippsland

Murray Dairy

Sue Webster moves on to national role

Free fun for dairy farmers

EXECUTIVE OFFICER of Agri-

JENNI CLARK at the Northern Victoria Farmer

business Gippsland, Sue Webster, has resigned take up a new role as communications manager of the new, national Farm Co-operatives and Collaboration Pilot Program.

The $13.7m initiative, detailed in the Agricultural White Paper, is being delivered by Southern Cross University in partnership with the Australian Government.

“Agribusiness Gippsland has risen to become the pre-eminent regional agribusiness group in Victoria, possibly nationally,” Sue said. “And as the group moves on to new challenges, it marks the moment when I should clear the way for a new executive officer.

“I especially want to thank all Gippsland’s agribusiness stakeholders, in particular the Gippsland local councils and members of the public who have lavished Agribusiness Gippsland with their generosity and goodwill.”

Chair of the Agribusiness Gippsland

Relief Drive continues to facilitate some great events for local dairy communities struggling through the current farmgate price crisis.

Last week it was a Dairy Men’s dinner and comedy show at Barooga Golf Club. On Sunday, August 28 it’s the ladies’ turn to enjoy High Tea at the Blue Brick Hotel at Kyabram.

Guest speakers include entrepreneur, photographer and business woman Kylie Biltris and blogger and business woman Kristen Macdonald.

Door prizes, live music and amazing food. The event is free for dairy farmers with some limited tickets available for the general public ($30) with part donated to Do It For Dairy. Bookings (03) 5852 1873.

Sunday, September 11 there will be free movie day for the family at Kyabram. Ice Age: Collision Course will screen

board Paul Ford said: “Sue’s enduring legacy is the extensive networks she has nurtured across Gippsland’s $7bn agribusiness value chain. We thank Sue for the important role she has played in developing the organisation.”

Her last day with Agribusiness Gippsland is August 26.

at 1pm at the Plaza Theatre with a BBQ in the park prior to the movie (from 11.30am) Bookings: 0427 641 287. Visit www.nvfrd.com for a full list of upcoming events.

Western Victoria Board positions available WESTVIC DAIRY is seeking to fill four board positions.

Applicants must be available for interview in early September. Position description and application forms are available at www.westvicdairy.com.au or contact Lindsay Ferguson on lindsay@westvicdairy.com.au WestVic Dairy AGM will be held in Camperdown on Wednesday, September 21 from 12-1pm.

The AGM will be held in conjunction with the ‘Milk is for More’ session that runs from 11am-3pm on the same day at the Camperdown Football Club.

NSW Is your farm future ready?

THE FUTURE Ready Dairy Farms Expo will be held at the Bega Showground, Upper St, Bega from 9.30am-4.30pm on August 24-25. The event will showcase new technology in dairy farming, in particular that which can help farmers to improve efficiency, sustainability and resilience of their business. Visit www.dairynsw.com.au for more details.

Sub-Tropical Farmers take the buy branded milk message to consumers at Ekka THE QUEENSLAND Dairyfarm-

ers’ Organisation (QDO) continues to fight against private label milk, this time bringing the message to visitors at the RNA Brisbane Show (or Ekka as it’s known) as well as the Rockhampton Show. “It’s time the national

dairy industry recognise that while it is important to enhance export markets, it must not devalue the domestic dairy market that accounts for almost 65% of national milk production,” QDO president Brian Tessmann said. ‘I buy branded milk’

fridge magnets are now available for the public to show their support for the industry. QDO also launched a social media group and campaign to promote branded milk. Visit www. dairypage.com.au/i-buy-branded-milk or www.facebook.com/Qlddairy/

South Australia Want to know how healthy you are?

DEVELOPED BY SA Health to support healthy living,

Beautiful Bega will host a new technology forum later this month.

The Brief Health Check – an online questionnaire - has been designed to provide you with advice on making healthier choices, identifies whether you need help, and where to get it.

The 10 minute check asks you about your diet, physical activity, alcohol consumption, smoking habits and

general health as well as a few questions about your workplace. It’s quick, easy and free – and it could save your life.

It has been developed by SA Health to support healthy living. If you have any questions contact the manager, Healthy Workers - Healthy Futures at healthyworkers@sa.gov.au.

DAIRY NEWS AUSTRALIA AUGUST 2016

AROUND THE REGIONS // 17

Western Dairy New dairy council president WAFARMERS HAS welcomed Bruns-

wick dairy farmer Michael Partridge to the position of WAFarmers Dairy Council president at the 2016 WAFarmers Dairy Conference.

Phil Depiazzi stepped down from the role of president following four years at the helm.

“I’ve really enjoyed working with such a dedicated dairy council, which is commit-

ted to achieving outcomes that are in the best interests of all WA dairy farmers,” Mr Depiazzi said.

“It’s a very challenging time, but Michael will have my full support as we work through the issues facing the dairy industry.” Ian Noakes nominated for the role of senior vice president, while Paul Ieraci was re-elected to the position of vice president.

Directors wanted NOMINATIONS ARE now open for

the two director positions on the Western Dairy board. Constitutionally, at least one of the two successful candidates must be a levy-paying dairy farmer.

Director and chair Vic Rodwell has completed his second term and is not eligible for re-election. Director Brian Piesse has finished his first term and will re-run for election.

Nominees must be available for interview in the week of September 5.

Successful candidates will be appointed for a three-year term, effective from the Western Dairy AGM on November 29 and will be eligible to stand for a second term.

Nominations are due by COB Friday August 26.

Selection criteria, nomination forms and the position description are available from the Western Dairy website or the executive officer.

Contact Esther Jones 0418 931 938, esther@westerndairy.com.au

WA Dairy and caption: WAFarmers Dairy Council senior vice president Ian Noakes, vice president Paul Ieraci and president Michael Partridge.

Tasmania Food clean-up grants THE TASMANIAN and Australian governments have announced cleanup grants for primary producers under the Natural Disaster Relief and Recovery Arrangements (NDRRA).

These grants are for primary producers who have suffered direct damage as a result of the June 2016 flooding in Tasmania and are located within the following six local government areas: ■ Break O’Day ■ Kentish

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Latrobe Meander Valley ■ Northern Midlands ■ Waratah-Wynyard.

The maximum value of grants is $10,000.

Please bear in mind that you may not be entitled to the full amount of $10,000. Grants will be assessed depending on your circumstances.

Phone AgriGrowth Tasmania on 03 6777 2233 or DairyTas on 6432 2233.

■ ■

DAIRY NEWS AUSTRALIA AUGUST 2016

18 // OPINION RUMINATING

EDITORIAL

The search for a fair share

MILKING IT...

Chill out with milk

WITHIN SECONDS of eating a hot chili pepper your tongue starts to tingle, your cheeks redden and beads of sweat form on your forehead.

Although this torturous experience is fleeting, researchers at New Mexico State University’s Chile Pepper Institute have discovered a fix that quickly extinguishes the fire – milk.

They found a protein in this dairy product which replaces the chemical compound that makes chili peppers taste hot and gives you instant relief.

Capsaicin is the chemical compound in chili peppers that makes them taste hot; milk has a protein in it that replaces the capsaicin on the receptors on your tongue.

It’s the quickest way to alleviate the burning sensation.

Calcium booster

WE DRINK milk for the calcium: the mineral makes your bones stronger, muscles healthier (including in your heart) and helps blood to clot.

Now, researchers at the University of Wisconsin-Madison have discovered they can boost calcium levels in milk by giving cows regular injections of the hormone serotonin, a chemical messenger that among other things is linked to feelings of happiness.

That could make fo some very content cows....

If you think the life of a modern milk cow is already pretty happy— lounging in green fields under clear blue skies— think again. With the rise of factory farming, most overseas cows don’t get to see a lot of green pastures.

Beware scammers wearing kilts

HAVE YOU received an email from Scotland offering a farm manager job? The too-good-to-betrue role also offers money upfront.

Chances are it’s a hoax.

Fonterra in NZ says it is seeing more scam/hoax activity. The co-op advises to beware of hoax emails from would-be employers or applicants, especially when they are asking for details of bank account, credit card or photo ID; often these are used for identity fraud and money laundering.

And if it asks you to send or receive funds directly from your account, hit the delete button.

Advertising Brett Matthews brettm@dairynewsaustralia.com.au

Dairy News Australia is published by RNG Publishing Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written

Keeping a watchful eye

COWS will keep watch on potential threats with their left eye, according to a new study by the University of Queensland.

In a finding that could help cattle breeders reduce stress and anxiety in livestock, the five-year study found dairy cows increased the use of their left eye when viewing threats.

UQ Centre for Animal Welfare and Ethics director Clive Phillips told the ABC cows that predominantly used their left eye in all types of interactions had a more fearful temperament.

“Dominant cows are less likely than their subordinates to use their left eyes to monitor confrontations with other cows.”

The research is based on lateralisation — a divide between the left and right side of the brain that control different processes.

0417.440.009

DAIRY FARMERS can be forgiven for rolling their eyes when told a stakeholder forum will be held in a bid to resolve the dairy crisis.

With anger, mistrust and hurt still rife in many dairy farmer circles, and a room full of the usual suspects gathered together again for a meeting of this kind, it’s easy to be cynical that real solutions will be found.

There is another element emerging, that is part of a wider trend, and it remains to be seen whether it will help or hinder industry progress.

Many people, particularly those termed “disenfranchised”, have used their vote in Australian and global elections to send a message to the majority leaders that they are being left behind in current decision making and want to put the brakes on an increasingly globalised, complex, and unequal world.

It has occurred in the Brexit vote, and in the recent Australian election, which saw Pauline Hanson’s One Nation party go from zero to four seats and Nick Xenophon’s team lift from one to three.

A recent report on the distribution of wealth in Australia by the Evatt Foundation shows the poorest 40% of households have virtually no share in the nation’s wealth.

The top 10% now own at least 50% of Australia’s total household wealth.

As noted in The Conversation analysis: it indicates that the broad Australian middle class is getting a shrinking share of the fruits of economic progress.”

Efforts by the farmer lobby group, Farmer Power, to ruffle the status quo, as well as some opinions expressed by countless other individuals on the growing number of social media sites dedicated to dairy, are a reflection of this widening gap.

The multimillion dollar salaries and packages ‘earned’ by the likes of Gary Helou and Theo Spierings are in a mind-boggling realm few of us will ever relate to.

They are justified by companies in terms of the complexity, time and importance of their roles and the potential value they deliver the shareholders – meanwhile, many dairy farmers are working long days, seven days a week, and going into more debt.

No-one is suggesting that solutions to these problems aren’t complex.

Or that an afternoon’s dairy industry symposium can find all the answers.

But the growing inequality in Australian society – and in Australian dairy – will be an elephant in the room for years to come unless policy solutions can be found to ensure no one gets left behind.

Editor Madeleine Brennan

0402.715.577

editor@dairynewsaustralia.com.au

Publisher Brian Hight

Production Dave Ferguson Becky Williams Sub Editor Pamela Tipa

Web Cameron Wilson Published by RNG Publishing Ltd

Printed by Newsprinters Pty Ltd

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.

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DAIRY NEWS AUSTRALIA AUGUST 2016

OPINION // 19

Fairer supply contracts? It’s something worth fighting for TIM BALE

A CONTRACT is a legal document

agreed to by two parties who willfully and keenly sign together to form a mutually beneficial relationship for both.

Does that sound like a milk supply agreement?

I don’t think so.

What happens when a farmer refuses to sign an agreement which is not in his best interest, someone else signs, or the

The lack of power in the Australian volume, he should be able to sell over milk is picked up anyway and the farmer dairy industry and the fragmentation contract milk to anyone he likes. deemed to have agreed.

The ACCC believes that collective of leadership is an ongoing problem but Contracts should not be exclusive.

Secondly, if a farmer elects to bargaining will help and it has sign a longer term contract, then in the past, but sadly only when The exclusivity of supply the price must be set for that companies are looking for milk. is not fair and reasonable. period.

At the moment large processors The right to negotiate should be are snubbing the collective ongoing by both parties. bargaining groups and co-op’s Perhaps major retailers should be don’t recognise them because their we need to start somewhere and I agree pressured to ensure the milk they buy members could be said to be a collective – farmer contracts are a start.

Firstly, the exclusivity of supply is from processors are from farmers with bargaining group, but if you are a co-op fair and reasonable agreements? member have you ever negotiated your not fair and reasonable.

The third most important part is If a farmer contracts a certain price?

LETTER TO THE EDITOR

price and recently the drops have seen processors in NSW drop their price when they are not affected by export and their retail contracts have not changed.

Fairer contracts will make it easier for farmers to choose, but all farmers have to help, support the leaders, come to meetings, out and remember DAIRY speak NEWS AUSTRALIA APRIL 2016 there is nothing wrong with expecting a fair go. OPINION // 19 • Tim Bale, Stewarts River NSW Chairman - Manning Valley Fresh Group.

for an independent review of A breathTime of New Toowoomba Dairy Australia’s value to farmers fresh air on milk powder plant FMDs a postive step WITH ALL eyes on the recent federal

election outcome, it is not surprising many may have missed the fact the new farm management deposit rules came into play last month.

To be perfectly honest, FMDs are not a headline-grabbing topic, but in terms of delivering a flexible option to help farmers manage income variations and tax liabilities, they are an effective vehicle.

The changes to the FMD scheme are result of that rarest of things – legislation from Canberra designed to improve the tax system.

It seems the pursuit of any Alex Malley holistic reform of our tax system is off the political agenda for yet another electoral cycle.

Indeed, the tax White Paper process instigated by the Abbott government failed to generate even a plan for reform.

So uncoupling the FMD changes from the broader tax reform process may in fact be the reason they got through the legislative process.

There are three elements to the changes – the most beneficial in my view is increasing the FMD deposit limit from $400,000 to $800,000.

The previous cap hadn’t been updated for many years and with the change it means, for example, that a husband and wife could put up to $1.6 million into FMDs. The second element is that restrictions preventing FMD accounts from being used

The current trend farmers to a single in which milk levels while the the Productivity financial interest in ON BEHALF of meeting! production has fallen profit margins of Commission for a for farmers to exit Farmer Power, which the outcome.

Since its formation, from 11 billion litres the manufacturers truly objective review the industry (by The last levy poll, represents dairy Dairy Australia has to just over 8 billion increase. of Dairy Australia and selling their farms which reportedly farmer members received around litres (while New This has led the value it delivers to to other producers cost Dairy Australia in the south-west $500 million from Zealand’s production to significant farmers as well as the or converting to around $750,000, of Victoria, we government. resulted in only applaud the stand more profitable beef as a farm taken business loan offset an have been 600 What farmers estimated

by Senator production) should “What farmers witness are their witness financial year. ing Queensland dair- are their for thisring removed. David Leyonhjelm in dairy farmers mation necessary forfunds the alarm bells for ROSS MCINNES (typically being spent on lavish events and workshops the changes This will increase presexposed Whileopposing this sounds positive,attending only time planning phase of theoffices, proj- ies completelyfunds the government, $5,000-$7,000 per to the five year poll of nationwide. annual forecasts consistently predicting the available to predatory market tac- spentsure on will tell if the there is alevy.* substantive benefit. ect. but instead Dairymilk farm) being Australian Dairy dairy improved milk production with no Australia the thespreads industry tics, it is obvious we need Ultimately, success of the measure There have been a THE ANNOUNCEon lavish events throughout Farmers, who Wethe are concerned strategies for achieving this, and a message that all is and offices, annual contacted all licensed that this is just the especially in the autumn will depend entirely on the banking sector of potential new of a new MENT failure to advise number the government about to take every opportunity well. forecasts consistently dairy farmers calling illustration of period. to increase demand in the providinglatest appropriate financial products players in the local dairy infantthe formula plant true state of the industry.”

As the number predicting improved for farmers to how Dairy Australia Queensland milk promarketplace and seek industry over the years, at the 550ha Wellmilktoproduction support these change, of farmers declines fails to represent rose by over 3% out new high value marwhile some have not campcompulsory Business Park with no strategiesduction for further, the interests of dairy did so with a limited Dairy levies on and has doubled over the disillusionment achieving this, andina MayAustralia budget of around in Toowoomba farmers and is an farmers in addition same period) and to date, amongstkets. the and while come to fruition willit is too has to the advise the $3,000-$5,000, which to around $300m attempt to eliminate the number of dairy to proremaining dairy presumably need to early to say our producThe sad factfailure is that QDO will continue been welcomed by the government about elicited a response farmer’s democratic in government farmers has shrunk farmers about how continually ramp tion has bottomed out,upthe longer that unsustainmote the Queensland Dairy-no the true state of the from only a small Queensland rights to have a say. funding (with from 23,000 to 6,500. their industry is run, the levy even more Wellcamp announcement priced milk stays on dairy farmers Organisation industry. minority of farmers.

The panel direct financial Theindustry board of to develas is wellably illustrated in order to secure its Australia’s We believe they (QDO). do contribution from that developed Dairy Australia by the fast holding of the milk thedeclining market, the tighter thedairyand the opment and create extra own survival. exports used to price by our processors not reflect the views the proposals dairy manufacturers demand appears tofor beour heavily membership of thewill be margins squeezed farmer’s The Toowoomba Chris Gleeson, account for about of the majority, and for changing the despite their presence influenced by dairy Australian Dairy certainly helpsVIC to put a Crossley supply Integrated Project milk. of milk produced the results are tainted levy process was on the Milk board). manufacturing Farmers along as wellthe as dairy50% On behalf of positive perchain.

Whileand thehas super- state bodies. is afrom jointadvancing venbut this has fallenlong overdue by a failed process.(TIMP)Far interests, dominated by Farmer Power to around 25%, and Farmer Power, which the interests of watched the farmgate We repeat our people who are not This is a pivotal time in spective into our industry. markets continue to ture between Au Lait *Ed note: The changes dairy farmers, price for milk callsAustralian made Australia could well independent of Dairy has no funding Australia • Ross McInnes is dairy indushold such a strangle- previousthe and Nature have since been passed Dairy Australia has being kept at well to the Minister for be a net importer of base, has been able Australia and who Queensland Dairyfarmers try and with forecast drops in time. the domesticAgriculture overseen an industry hold belowover sustainable milk in 10 years’ into law. to attract over 600One Dairy. therefore have a

It seems the pursuit of any holistic reform of our tax system is off the political agenda for yet another electoral cycle.

Stage 1 will include a $35 million powder plant with a capacity of 25-30,000 tonnes per year. for primary producers.

This will be the first I believe there has been movement by at of two stages which GOT SOMETHING on your mind about the latest issues affecting least one bankour in this areto paperwill include a nearby dairyregard, industry?but Putmore your pen or your fingers to your keyboard, and let our readers know whatfarm. you think. likely to need to come on board. dairy forget to put your name and address.

The third and finalDon’t change relates to The Business Park Note: Letters may be edited. early access to FMDs for primary was seen as logisti(Names can be producers witheld from publication on request.) in severe drought. cally ideal considerThis is unambiguously positive. It ing its proximity to recognises the increasing risk of drought the Wellcamp Airport and the need for farmers to access FMDs in and the opportunities circumstances such as financing their next arising from the comcrop or replace stock. pletion of the second I’m often critical of what governments Toowoomba range of all political colours do or don’t do on crossing. policy.

QDO has been So it’s pleasing to warmly welcome the working with the FMD changes – they’re good for farmers, founders of this project good for business and good for Australia. by providing essential • Alex Malley is chief executive of LETTER CPA industry intelligence TO THE EDITOR Australia. Reprinted with permission. and background inforEDITOR@DAIRYNEWSAUSTRALIA.COM.AU

GOT SOMETHING ON YOUR MIND?

fresh milk market, leav-

production of about 5-7%

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DAIRY NEWS AUSTRALIA AUGUST 2016

20 // MARKETS

A whiff of optimism in otherwise tightstrong times Export demand remains Dairy NewS aUSTraLia june, 2012

agribusiness // 17

The mud that everyone interest rates. current squeeze. suggestions that the cents/litre in March (AUD 41c/L) to 28 Euro (AUD 36c/L) in April.

Irrigators are seeing in southern Australia is Butcents/litre if realised, it would industry could rapidly Profit margins are under pressure in the focused on 2012/13 milk prices as farmbeUS, the largest year- currently slogging around water prices tumble as contract to the extent beginning to show andsecond in NZ Fonterra has announced ers consider strategies for the coming the final payout 2011/12 season inflows surge. in follows a healthy on-year dropfor inthe the past of no longer producing the early signs year. of a In some domestically-focused has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incorgLobaL impacT None of this should be autumn break and good 15 toyears; surpassed an exportable surplus turnaround. porating lower prices and reduced ‘tier NZ$6.45-$6.55/kg MS only (AUD$4.96JohN DropperT $5.04). one’ access are undermining farmer taken as suggesting that all follow-up rains. by the horror season of (implying a fall of around There has been a Effectively, global dairy markets are confidence and supply stability. For GLOBAL IMPACT rebalancing.

Lower 8%) prices and will both private label DROPPERT contracts and prois well. many in farmers in export-oriented Shifts inJOHN Whilst there’s now 2002/03 (down 33% to around 6 billion whiff of optimism slow production growth and stimulate regions, a lower price outlook relative to cessor rationalisation have seen milk Financially, 2016/17 a risk of damage from equal to 2006/07 (down litres). recent weeks, as demand, and as this occurs we will ultithe the current season not only adds to the companies adjust their intake requiremately see a price recovery. Key factors mentsin and2015/16 pricing to meet the challenges of doing business, but seems flooding and waterlogging, will be a tough season for 5%).

Within that range, forchangmanufacturing a tough season fundamentals of supply to watch on the global scene will be the to contradict the positive medium term ing demands of a highly pressured retail most farmers, and hard Things be overseas a full soil profile will help there’s about 400 litres and our was capped off by and demand slowly rate at whichcould milk production marketplace.

Lower contractinvestment, prices and outlook of Asia-driventhat dairy demand slows in response to lower as prices, the lack of alternative supply opportunidrive pasture growth when decisions will be made out that bad and worse; for every Australian industry’s place in the late-seasonastep-downs respond to thegrowth. prolonged Dairy Australia’s indicative outlook ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries of necessity. consumer. world, national half downturn. on consumer confidence, the path of is up around 4% on milk 2011 for the year to East maintain consistently higher eco-mentioned limited manufacturing capacity.

Despite total for southern farm gatecovering milk prices –around realised, 5% would be the China’s economic growth,If and the value published in the recent Dairy 2012: Sit- these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that supportmilk With no prices and There is always going production isn’t of huge Australia’s milk.

This is ultimately good uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. second largest year-on-year margins and toupbe ever, a wide range of has outpacedconfidence in the The situation Demand for exported dairy prodnews for farmgate prices, the surge in supply the short March 2012 quota year ita dairyin consumption and relevance a growing finished opening price range of $4.05-$4.40/kg and will conand a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. few profits, atremains rock a positivedrop numbers and commentary areucts term at the individual Western Australia, where but we’re still aMS long way class inin the past 15 years.

This situation has seen the scales tinue to grow with the middle between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish large emerging markets such as China, tip in favour of buyers in dairy marthis season up 10% on last year a huge In the seasons following the 2008 report considers the wider market pic-production nobody is bottom in many on the subject, and most farm level (especially for booming from seeing a decent boost ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing expecting growth. the weather heats up. viewsingfall wellover within the Butterregions. thoseinin isexport-focused given to some to farm incomes. urbanisation - and also in conjunction steadily recent months. exported. Argentina is also enjoymodity price recovery, farmers at play; the key theme ofhas the current sit-way global population growth. a sig- prices are down some 30% from their with regions haveregions). seen solid ing solid production growth, but extremes. uation being that of re-balancing in the But while the financial In addition, winter Cull cow prices areLocally, farmers notexport-oriented having supply In short, there’s global supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a dairy supply chain. situation is on a scale grain crops are looking which and could forFarm gate pricesbooming, But it’s seen manymilk from leav-The contracts hasn’t in the Northmounting evidence thatof Australia growing population stable perlostforecast more than 20%. much of thisby additional higher-cost competitors In regions focused on renewed, capita consumption.

Whilst dairy haveadopted subsequently reduced inencourage ing South America. many farmers ern Hemisphere amongst those between manageable, bad good in many regions, farmers tothe cull bybeen Dairy asexpandan indicator of industry 2016/17 the commodityproducing price drinking milk,helped.

Despite wider economic uncer- most exporting regions. The average market is currently a challenging place face a re-balancing market in the form ing output as their margins increased. and ugly, good weather and fodder production is (small operating Australia’s board isfor milk in Franceharder ‘health’, and the current many cycle will deliver some of supply With to be a seller, all signs indicate that balbasic farm gate price demand has remained resilient This farmers season, favourable weather con- tainty, of renegotiation contracts reduced access to ‘tier one’ supply. ditions have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. and some cost relief expected to be strong. margins and good currently based around squeeze is prompting under the pump (and fed dividends veryand late this present a wider set of Quality will, of realisation of capital) or a 5% drop in the national up with losing money), the vigorous debate. season or into 2017/18, strategies to handle it. potentially cull less (fewer course, depend on curing total, implying around 9.1 A few years ago when question regularly asked but 2016/17 is going to The bottom line is conditions at harvest. cows need to be sold to billion litres for the full markets peaked, some in by those both within and stay brutally tight in the that the outcomes for Pricing for grain plug the cash flow gap). season. the industry suggested external to the industry is interim.

ASEAN-Australia-New austraLian milk production are less has already begun to To date, it looks like As a number, 5% growth to 16 billion litres ‘What does this mean for Not surprisingly, this DairY, rice and wine exporters to Zealand FTA (AANZFTA). than assured, and Dairy reflect this (as well as the former, but in many doesn’t sound like much, (up around 66%) was season’s low farmgate “Protectionist sentiMalaysia are the biggestmilk production?’ ment over agricultural winners in a free trade Australia will be regularly respects 2016/17 is looking international market and for many farmers it possible in the medium Although it has prices have severely goods is rife and growagreement (FTA) signed pressure). Fertiliser prices updating the outlook with increasingly like aportion ‘mixed doesn’t seem to reflect term. and longer undermined farmer ing across the globe, so to provide pack between the two coun- medium austraLian FooD in this context it is pleas(200-330ml) configuratries last month.

Foods this in mind. remain subdued, as do bag’. the full magnitude ofcompany the Freedom Right now, there are term implications confidence, coming after ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a

INTERNATIONAL With season 2011/12 only a few weeks from ending, attention is now are DAIRY markets

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

Malaysia FTA benefits dairy Freedom

Foods plant targets Asia

seven years of negotiations, allows a liberalised licensing arrangement for Australian liquid milk exporters and allows access for higher value retail products.

It guarantees Australian wine exporters the best tariff treatment Malaysia gives any counJune-15 Month try. It also allows open access arrangements from June-16 2023 for Australian rice %eliminated change with all tariffs by 2026.

The National Farmers’ Federation says the trade Region Share June-15 deal will improve international market access June-16 for Australian agricultural goods.

“After seven years of negotiation, the NFF is Year To Date 2014/2015 under no illusion of how challenging it has been to 2015/2016 complete this FTA with Malaysia,” NFF vice presi% change dent Duncan Fraser says.

The FTA will fill a number of gaps within the

to forge an agreement new milk processing plant with Malaysia that has to cash in on growing dealt with some sensidemand in Asia. tive agricultural issues The plant, to be built in not effectively covered by southeast Australia, will be AANZFTA,” says Fraser. the first Australian greenSealing the deal: Malaysian trade minister Mustapha Mohamed “While under the fields expansion in UHT in with Australian counterpart Craig Emerson after signing the deal.

AANZFTA agreement 10 years. most of Australian agriFreedom’s wholly NSW VIC QLD SA WA TAS Australia but also through technical Despite the compleers through streamlining culture’s key interests owned subsidiary Pactum or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, Australia will run the 90,156 438,399 32,102 40,488 31,149 47,701 679,995 much remains to be done border’ restrictions.” dairy and rice are two sec- laration processes and plant. Some of its products The FTA was signed on39,009 farmers to improved marketing tors where incremental 398,703 will be sold in 619,899 Australia.

82,593 32,040for Australia’s 35,797 31,758 May 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improveThe company says by Australia’s Trade and of the Asian region and commodities. ments-8.4% have been negoti- -9.1% given Asian consum-0.2% -11.6% 2.0% -18.2% -8.8% Competiveness MinisThe Malaysian market beyond. ated under the Malaysian ers’ rising incomes and ter Craig Emerson and his He says the NFF will is worth about A$1 bilFTA. improving diets, demand Malaysian counterpart now throw its attention lion in Australia agricul“This trade deal was there will grow for qual13.3% impor- 64.5% 4.7% towards ensuring 6.0% 4.6% 7.0% 100.0% Mohamed. agricul- Mustapa tural exports – including also particularly ity dairy products from Emerson says Australia ture remains front and being its fourth-largest tant for sectors such low-cost production bases 13.3% 64.3% 5.8%FTAs will be5.1% 100.0% as well-positioned 6.3% centre in completed sugar export market 5.2% and as dairy that have been such as Australia, whose in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive dismilk is well regarded. as Malaysia’s closest tradmarket. advantage in Malaysia will NSW VIC QLD China and Indonesia SA as WA TAS The new plant Australia ing partners in ASEAN, With an annual economic immediate priorities. compared with New Zeaallow Pactum to meet in some cases better.891,353 are all markets and363,522 growth at about 5%, 1,159,725 410,554 “These 516,489 9,731,679 land which already has 6,390,036 growing demand for The FTA will guarantee Malaysia forms an impor- with enormous growth a completed FTA with UHT dairy milk, and add 1,164,545 6,186,157 404,975opportunities 513,680 387,058 9,539,384 tariff-free entry for 97.6%882,969 and where tant part of the ‘Asian Malaysia in place.” to capacity for valueof current goods exports significant barriers to Century’ story and the The FTA also sigadded beverages at 0.4% -1.4% trade in agriculture -0.5%still -0.9% -2.0% from 6.5% Australia once it opportunity this presents nals some administrative -3.2% its Sydney factory. Pactum enters into force. This will for Australian agricultural exist, not only through benefits for Austrais expanding its capabilirise to 99% by 2017. tariffs that restrict trade producers, says Fraser. lian agricultural exportties at the Sydney plant

Milk Production Report (Litres '000s)

Region Share 016-017.indd 17

Total

2014/2015

11.9%

65.7%

4.2%

5.3%

3.7%

9.2%

100.0%

2015/2016

12.2%

64.8%

4.2%

5.4%

4.1%

9.3%

100.0%

2014/2015

1,159,725

6,390,036

410,554

516,489

363,522

891,353

9,731,679

11.9%

65.7%

4.2%

5.3%

3.7%

9.2%

100.0%

Region Share

NSW

VIC

QLD

SA

Average Milkfat & Protein (%)

Milkfat

WA

TAS

Australia

NSW

VIC

QLD

SA

WA

TAS

Australia

June-14

3.99%

4.23%

4.09%

3.92%

3.99%

4.56%

4.19%

June-15

4.05%

4.27%

4.17%

3.79%

3.94%

4.72%

4.22%

June-16

4.10%

4.24%

4.19%

3.98%

3.96%

4.59%

4.21%

1.2%

-0.6%

0.4%

5.1%

0.5%

-2.8%

-0.2%

% change 15/16

Protein

National

NSW

VIC

QLD

SA

WA

TAS

Australia

June-14

3.33%

3.43%

3.35%

3.29%

3.28%

3.58%

3.41%

June-15

3.36%

3.45%

3.40%

3.33%

3.32%

3.61%

3.44%

June-16

3.36%

3.44%

3.36%

3.31%

3.30%

3.61%

3.42%

% change 15/16

-0.3%

-0.3%

-1.3%

-0.8%

-0.5%

-0.1%

-0.5%

New data series from 1/7/2006. Produced by Trade and Strategy, Dairy Australia Limited.

Source: Dairy manufacturers

ucts.

The NSW location will provide access to the most sustainable and economic source of milk. Pactum has strong links to the Australian dairy industry and will expand its arrangements with dairy farmers for supply of milk. The new plant will increase scope for Australian milk supply – value-added, sustainable and export focused.

Initially the plant will produce 250ml and 1L UHT packs from a process line capable of 100 million L. The processing and packaging plant will emit less carbon, use less water, and be more energy-efficient than equivalent UHT facilities in Australia and SE Asia. Pactum expects site preparation to begin in October 2012 and start-up by mid-2013.

Pactum makes UHT products for private label and proprietary customers.

6/06/12 1:41 PM

Dairy NewS AUSTRALIA august 2016

markets // 21

Europe, New Zealand hold key to price recovery IT might get a bit

boring reading these stories from the rest of the dairy world.

But right now, the most important things that will lift milk prices are happening in Europe and New Zealand.

Changes in total milk supply are tipping the market balance towards a net demand situation.

If that trend stays in place, your milk prices will go up.

There has been some mild excitement amongst dairy analysts working on the supply side of the global industry based on last month’s European data.

Milk output in total across the EU actually fell (compared to the same time in the prior year) for the first time since March 2015.

That comparative is a bit artificial as, in early 2015, EU dairy farmers realised their surge in

fresh agenda steve spencer output in 2014 was going to incur a quota fine for over-production, and therefore they went into damage control to curb output for the first quarter of the year.

If you look further into the past, the EU had effectively been lifting output since mid-2012.

The decline won’t be short-lived.

The fall in total milk output across major European producers will keep sliding.

The volume of milk in regions that are now shrinking – France, Germany – outweigh the

impact of expansive Dutch and Irish producers.

The declines will deepen.

Cow culling has picked up as producers face unsustainable milk prices.

The European Commission is going to make it more interesting for farmers.

In the last quarter of 2016, producers will get paid €0.14/litre to reduce output.

While that won’t work for everyone, it will make sense for some to either send a few more cows to the chopper, or to hold back on the grain lever.

The good old days?

Isn’t it ironic?

The strategy of the Commission has been to take their farmers further into the land of market reality through the removal of quotas, removal of export subsidies and increasing the hurdles to access CAP payments, but within

Reduced output expected for the season ahead in New Zealand will hasten the global slowdown.

15 months of removing controls on production it has resorted to a notorious old European favourite - paying farmers to cut production, just like the

Figure 2 shows a more output by major exporters good old days. compared to dairy product complete story of the Hang on, isn’t that drivers of product and prices. why the EU has such a It shows the experience therefore milk prices. problem, keeping more This shows the change in 2012 and 2013, when farms in production in the overall market it took an extended than would otherwise balance – import demand survive without a taxpayer flattening and then fall in versus available supply of total supply to help spur injection? product from exporters. dairy prices – helped by But while this latest That takes account of some panic buying from measure might be late Chinese buyers fearing an the fact that households in (with the brakes already the EU, US and Australia on milk) and short-lived, it extended global shortage.

In 2016, the global milk consume most of the milk could make a difference. output in each of If the full €150m those countries, is paid out, it would leaving a portion for mean 1.07bn litres While Europe’s milk export. had been removed will keep falling by Product prices from milk supply, are sensitive to our reckoning, a that is close to 3% changes in that of total production global slowdown overall balance. for the final three will be hastened if A shrinkage months of the year. of milk output A global slowdown? NZ milk shrinks as expected by Fonterra becomes more More importantly, with and other processors pronounced when domestic demand Europe now in across the ditch. keeps growing. decline, total milk So the demand output by major side of the market exporters (EU, US, supply worm has only just has to do its bit, and part NZ, Australia, Argentina) of the problem in 2016 steadied. has also dipped into has been sluggish demand The season ahead in decline. from a few key customer New Zealand plays a big This may have been regions, as can be seen part from here. enough to bring more in the chart with the size While Europe’s milk buyers forward to the of the surpluses in global will keep falling by our latest Global Dairy Trade supply. event, which pushed WMP reckoning, a global We expect buying will slowdown will be hastened prices up nearly 10%. recover and normalise in if NZ milk shrinks as But while the 2017 and help support a slowdown is encouraging, expected by Fonterra and firmer market. other processors across it has to go on for much How that translates the ditch. longer to make a material into prices on farm will Demand matters too difference to the payslips The supply side story is of course be affected by of Australian dairy currency, but there is the beginning of the fix. farmers.

Demand has to reignite certainly reason to expect Figure 1 shows the a better outlook in 2017. as well. rolling 12-month total

Dairy News AUSTRALIA august 2016

22 // management

Healthy soil focus boosts self-sufficiency prospects Gordon Collie

CONSERVATION farming principles

adopted by a dryland dairy and mixed farming enterprise on the Darling Downs have resulted in visible improvements in just two years.

Third generation farmer Brenden Ballon and his wife Kate decided they had to try something different if they wanted to be sustainable for the long term in a challenging environment.

They introduced a holistic farming system based on ultra-high density cell grazing which has led to a dramatic improvement in natural cooch-based pasture production.

Now they hope to replicate the farming system success with crops grown for grazing and silage production.

The couple have a succession plan to take over the 880ha family aggregation from his

Who:

Brenden and Kate Ballon Where:

Darling Downs What:

Ultra-high density cell grazing

parents Jenny and Jeff who have farmed in the Maclagan district since 1977.

The farm originally supplied the Kraft factory at nearby Quinalow and they were with Dairy Farmers for many years before switching to Norco.

Milking about 140 Friesian cows provides their major source of income, complemented by breeding about 250 beef cattle and finishing progeny, a 60 sow piggery and 400ha of crops.

They aim to grow at

least 75% of their dairy grain consumption plus cash crops of mung beans and millet.

“We try to be as selfsufficient as possible which is a challenge in our variable rainfall environment,” Brenden said.

The district is nominally in a 685mm annual rainfall zone, but falls have recently averaged around 450mm and last year they received just 330mm.

“We hardly ever miss planting a crop, but yields can vary greatly and we just have to work with the seasonal conditions.”

Brenden is changing the farming system now he is fully engaged in the family enterprise, after spending two years working in the US and working as an outside contractor for a number of years.

A member of Conservation Farmers and a Landcare facilitator, he has adopted principles advocated by international Cows with silage pit.

holistic farming pioneer Allan Savory, attending a course in the dry tropics at Bowen.

“The principle is to have no bare soil and no cultivation to protect against erosion and minimise evaporation losses,” he said.

“There is a focus on improving soil health and boosting soil-carbon levels.

“Our sandy loams are acidic and we’ve been applying lime and compost.

“Leaving as much as 50% residue to break down after grazing also helps restore a natural, healthy soil.”

Brenden said improving carbon levels from a low 0.5 to 3% could boost soil water holding capacity by more than 1.5 megalitres a hectare.

“This would make a huge difference to crop and pasture performance, particularly in dry seasons,” he said.

In successful ultra-high grazing trials, strips of pasture have been fed for two days followed by a sixmonth recovery period.

Two electric fences are used when feeding to keep the cattle bunched up and avoid trampling the justgrazed area.

They grow principally barley and wheat for stock feeding with cash crops of mungbeans and millet, with the cows fed a 3kg grain ration in the bails each morning and afternoon.

Sugar Drip and Sudan forage sorghum is grown

Kate Ballon is pictured, left, holding Brooke, 19 months, with Josephine, 5, Emily, 4, Brenden and his mother Jenny.

Pictures: Gordon Collie

to provide a single cut of silage for night feeding.

“If we get rain at the right time, the sorghum regrows for a cheap grazing option.”

They have begun to trial multi-species summer and winter plantings to provide a good bulk of feed for the milking herd through the year.

The first crop planted last September comprised forage sorghum, millets, sunflower, dolichols, guar and radish.

A winter blend has now been established, including oats and barley, forage rape, radish, field peas, faba beans, vetch and canary.

“We are applying the same ultra-high density grazing principles, leaving plenty of residue to break down and help improve

the soil,” Brenden said.

“We are aiming to produce a milk yield of 18 to 20 litres without having

to push our cows too hard with a farming system that’s sustainable in our environment.”

Kate Ballon with calf.

1300 767 596

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DAIRY NEWS AUSTRALIA AUGUST 2016

MANAGEMENT // 23

Dryland chicory extends green feed supply A FLATTER pattern of forage production and improved management of key insect and weed pests are two of the benefits arising from chicory pastures for one Fleurieu Peninsula dairy farm.

Rod, Jean and Stephanie Walker have been growing dryland chicory on their Mount Jagged dairy farm since 2012 and have been willing to share their insights about integrating chicory into their dryland pasture system.

Rod began by growing chicory on paddocks where African black beetle had been destroying the existing ryegrass pastures.

all moisture in the soil profile.

“Nevertheless the chicory pastures are our first paddocks to start growing each autumn and the last to stop growing each year,” he said.

Rod noted how his cows seemed to take a couple of days to adjust to grazing chicory and reckons sufficient chicory should be planted so cows can be offered chicory for at least 14 consecutive days in each rotation to make its inclusion worthwhile.

Conversely, Rod cautions against planting too much chicory on the milking area.

“Our dryland grass-based pastures usually grow between May and November, but the chicory extended green feed supply through December.”

The chicory proved resistant to the beetles and has persisted better than Rod originally expected. However it has impressed Rod in even more ways.

“Certainly its biggest benefit in our operation has been to significantly extend the pattern of forage growth,” Rod explains.

“Our dryland grassbased pastures usually grow between May and November, but the chicory extended green feed supply through December and again in early-mid autumn,” he adds.

Rod found that chicory is less winter-active than ryegrass but is more drought tolerant and summer active.

His chicory stands grew around 30kg dry matter (DM) per hectare per day for much of summer and has allowed them to allocate 4kg green chicory DM per cow per day during each of the last two summers.

The chicory stopped growing for only a six week period in each of those summers, when it seemed to have exhausted

“Our cows only ever get access to chicory for 12 hours each day, to limit the proportion of chicory in the cows’ diet and avoid milk tainting problems,” he said.

“Chicory is also less palatable to cows than ryegrass during the cold winter months so excessive plantings could compromise winter grazing and milk production.”

As a consequence of these issues, Rod believes 25 to 30% is the ideal proportion of milker paddocks to plant to chicory on his farm.

Three or four of his worst degraded pasture paddocks are sprayed out and resown to chicory each August, and he intends to return the same number of his oldest, thinning chicory stands back to ryegrass pastures each autumn.

However Rod has learnt not to bother spring sowing chicory in areas adjacent to dams or creeks, because feral ducks will quickly migrate into these areas and love to continually nip off any new chicory growth.

Neither does Rod

bother planting chicory in paddocks badly infested with thistles or capeweed, because it is difficult to

selectively control these daisy-type weeds in chicory pasture.

(Source: DairySA)

L A I C E P S T R O REP ISSUE: SEPTEMBER SPRING PASTURES 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 September 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: August 31 MATERIAL DEADLINE: September 6 | PUBLISHED: September 13 CONTACT: BRETT MATTHEWS T: 0417.440.009 E: brettm@dairynewsaustralia.com.au

Dairy News AUSTRALIA august 2016

24 // breeding management

Dairy cow fertility genes are improving GENETIC selection

ABS boosts breeding choices with Norwegian Reds top range of Norwegian Red bulls to Australia in August through a new partnership with Geno, the world leader in Norwegian Red bovine genetics.

Through the partnership with Geno, ABS will offer dairy farmers more choices for effective cross breeding and straight breeding using Red genetics.

“ABS has secured an exclusive distribution agreement with Geno globally,” said ABS Australia’s national sales manager, Paul Quinlan.

“We will now be able to supply Australian dairy farmers with the unique genetics of the Norwegian Red breed combined with the very best Holstein and Jersey genetics from ABS.” Many Australian farmers have used the Norwegian Red breed exclusively as a straight-breed for

the past nine years.

“Those dairy farmers who have used the Norwegian Reds have already identified that the breed has extensive Norwegian farmer, veterinarian and industry input and support,” Paul said.

“There is over 40 years of data collection available and comprehensive health trait information for breeding selection.

“The breed is ideal for the profit focused farmer whether they want to straight breed or cross-breed.”

ABS continues to pursue a strategy of providing the market with alternative solutions to maximise their profit from genetic progress.

“ABS’s collaboration with Geno will allow us to distribute Norwegian Red’s world leading genetics and provide even greater value to our customers,” Paul said. “The unique cross-breeding solution will have a strong appeal to our operational

and profit partners.

“It will complement our recent investment in IVB, sexed semen and genetic services such as Genetic Audits that specifically focus on maintaining profit from genetic progress.”

Geno adds a unique genetic solution to ABS’s global supply chain that will benefit dairy farmers seeking the special qualities of Red breed genetics.

“The Red genetics offer our customers greater choice and the potential to improve hybrid vigour in their herds,” Paul said.

A new brand that demonstrates the benefits of the combined resources of Geno and ABS will be launched in the first half of FY17.

The new concept will be rolled out in North America, Great Britain, Italy, France, Germany, Australia and New Zealand. www.absglobal.com/aus

Hirds Colton Dream, VG 86

performance.

His analysis, found that the daughters of sires with higher ABVs for daughter fertility have markedly better reproductive performance than daughters of sires with lower Daughter Fertility ABVs (see graph).

He concluded that continual selection of sires with a high Balanced Performance Index (BPI) would result in small but

to 478 in 2016 in the Good Bulls guide/App,” she said.

As well as this, the reliability of the Daughter Fertility ABV has improved. In 2003 only 10 of the top 50 Holstein bulls and eight of the top 20 Jersey Bulls had a Daughter Fertility ABV. Today, with improvements to the genetic evaluation model and increased reliability, every Holstein and Jersey Bull listed in

Daughters of sires with higher ABVs for daughter fertility have markedly better 6-week in calf rates than daughters of sires with lower Daughter Fertility ABVs. Jersey (upper line green) and Holstein (lower line)

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

ABS Australia will bring the

has played an important role in halting the downward trend in Australian dairy herd reproductive performance.

A recent analysis by Dr John Morton confirmed that the Daughter Fertility Australian Breeding Value (ABV) has given dairy farmers an effective tool to breed for improved herd reproductive

ongoing improvements in herd reproductive performance.

“This is significant because genetic improvement is both permanent and cumulative. Some farmers may choose to use the Health Weighted Index (HWI) which puts more emphasis on daughter fertility than the BPI,” John said.

“However, to maximise genetic gain for herd fertility, select high BPI/ HWI sires from the Good Bulls Guide that have high ABVs for daughter fertility.”

Michelle Axford from the Australian Dairy Herd Improvement Scheme (ADHIS) said farmers could expect continued improvements in herd fertility, as more cows with better genes for fertility enter the milking herd.

“Farmers have more choice than in the past, with the number of high BPI bulls with a Daughter Fertility ABV of at least 105 increasing from 16 in 2011

the Good Bulls Guide has a Daughter Fertility ABV. Similar improvements have been achieved in other dairy breeds. This improvement provides dairy farmers with even more power to breed for better reproduction.

“Of course, genetics complements other management strategies used by dairy farmers to improve herd fertility, including nutrition, heat detection, AI practices and bull management,” she said.

The study drew upon data from 74 seasonal and split calving commercial herds with high quality reproductive data, covering more than 60,000 lactations from Holstein cows and almost 3,000 Jersey cow lactations.

ADHIS is an initiative of Australian Dairy Farmers’ Ltd, that receives the majority of its funding from Dairy Australia through the Dairy Services Levy.

DAIRY NEWS AUSTRALIA AUGUST 2016

ANIMAL HEALTH // 25

Taking a proactive approach to reducing calf sickness and death THIS ARTICLE reviews

the long term effects of calf hood morbidity and describes how preliminary performance targets have been established and used in a research field with the potential for future use in the broader dairy industry.

The lasting effects of calf hood morbidity CALF hood morbidity (“sickness”) appears to have lasting effects on growth, age at first calving, milk production and longevity.

Research has shown that calves have the highest risk of scours in the first and second weeks of life and this risk declines to a low level by four to six weeks of age.

The risk of respiratory disease does not decline as rapidly as that of scours and remains at a reasonably consistent level until 12 weeks of age.

The presence of respiratory disease at two to four months of age negatively affects average daily gain (ADG), body weight and height.

Research suggests that the presence of septicaemia and/or pneumonia during the first six months of life reduced growth by 13-15 days.

This means it took affected calves 13-15 days longer to achieve the same weight as healthy calves.

The effects of calf hood morbidity on age at first calving (AFC) have also been described. One study demonstrated that heifers which were treated for scours in the first three months of life were nearly three times more likely

APIUM ANIMAL HEALTH GEMMA CHUCK

dimensional.

Every effort should be made to reduce morbidity rates by provision of proactive, holistic veterinary advice.

Key performance targets and benchmarks play a role in setting defined goals in an outbreak situation along with routine monitoring of dairy calf rearing performance.

Why do we need benchmarks?

Contrary to the resources available in the dairy reproduction and milk quality fields, performance benchmarks for dairy calf rearing have not been established in Australia.

The Fertility Focus Report (InCalf) and Mastitis Focus Report (Countdown Downunder) have enabled advisors and farmers to identify key areas within their system, allowing strategic advice for improvement.

Key performance

Health outcomes for calves could be improved with performance benchmarking of morbidity and mortality rates.

to calve after 30 months than those not treated for scours.

Additionally, the negative effect of calf hood morbidity on lactation performance indicators such as 305-day milk, fat and protein production suggests that health status early in life can affect production up to two years later. could earlier veterinary However, high levels Research from the intervention prevented of mortality (death) are United States suggests less well tolerated and it is the outbreak?” that calf hood morbidity This proactive usually at this point that impacts long term herd approach is synonymous veterinary intervention is survival. with that of Countdown sought.

Calves treated for Downunder and InCalf, An outbreak situation pneumonia in the first yet it seems to have three months been omitted from the of life were two Contrary to the resources available dairy calf rearing field. and a half times in the dairy reproduction and milk Development of more likely to quality fields, performance benchmarks performance targets die between Data from three months for dairy calf rearing have not been Australian research and two and a established in Australia. has allowed half years, when development of compared to preliminary benchmarks indicators such a six-week is likely to be fairly calves that had not been in calf rate, not-in calf rate, dramatic, requiring strong, for passive transfer of treated for pneumonia. A similar effect was seen for total clinical case rate and yet not always sustainable immunity from colostrum, morbidity rate and recommendations in an new infection rate allow calves treated for scours mortality rate. attempt to reduce the proactive decisions to be less than three months Based on this research, made and clear goals to be inevitable high morbidity of age, in that they were the performance targets and mortality rates. two and a half times more defined. within a given calf rearing This raises the In some cases there is likely to be sold compared period are: question: “If the farmer a general acceptance of to those not treated for ■ Failure of passive had been aware that high morbidity (sickness) scours. they were achieving a in dairy calves, with such Thus, the long term transfer: Less than 20% suboptimal level of care farms relying heavily on effects of calf hood of calves in a group in their calf rearing, mass antibiotic usage. morbidity are multi(minimum of 12) with

serum protein <5.0g/dL Pre-weaning morbidity rate: Less than 10% of calves should be treated with antibiotics and/or electrolytes ■ Pre-weaning mortality rate: Less than 3% of calves should die during this period, regardless of the cause of death.

Your vet can discuss with you the requirements for passive transfer testing.

Passive transfer of immunity allows an early indicator of whether calves are receiving sufficient colostrum to combat disease.

Calculation of morbidity and mortality rates rely on accurate records of any sick or treated calves and any deaths that occur during the calf rearing period.

■

The main thing to remember when referring to these benchmarks is that they are achievable.

Scope for the future Australian dairy calf rearing systems are very different to those in the United States.

These preliminary performance targets have been developed from data collected on commercial dairy farms in south west Victoria, Australia.

They require further validation in the broader industry in order to become absolute.

However, in the author’s opinion they are a useful objective guide for farmers and veterinarians, providing early indication for improvement.

• Dr Gemma Chuck is a veterinary operations -dairy advisor at Apiam Animal Health.

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The various Lely Calm Control versions can be connected with a new online management system.

This management system makes

it easier to monitor calf performance and identify health disorders at an early stage. Various apps can display data such as: ■ Drinking behaviour yesterday and today ■ Milk consumption per day ■ Drinking rate per day ■ Total milk (powder) consumption In combination with a scale, it is

also possible to show current weight and weight gain per calf.

All data can be presented in a clear manner on a PC, laptop, tablet or smart phone.

Intuitive operation makes this system quite suitable for daily monitoring of calves.

The management system can also give a warning when the drinking rate is too low, the drinking process

is frequently interrupted or the milk consumption is insufficient. These can all be indicators of impaired calf health.

The company says the automated feeder has been improved in a number of ways. The processor is faster with higher storage capacity.

The automated feeder also recognises which calf wants to drink.

Alongside the temperature sensor

there is a button for young calves to learn to drink from the automated feeder, which is directly integrated into the identification process.

Furthermore, an integrated LED light indicates the status of the drinking process.

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DAIRY NEWS AUSTRALIA AUGUST 2016

ANIMAL HEALTH // 27

Don’t skimp on the details at milking ROD DYSON, DAIRY FOCUS

“WE WORK really hard to get the cell count down, and then it just takes off on us, and we don’t seem to be able to stop it.”

The frustration was clearly obvious at a meeting with the farm team on this 300 cow farm.

“How can it spread so quickly?”

We had already established that the bacteria causing most of both the clinical and sub-

for the spread of infection, and also the risk of each opportunity creating an infection. However, not all infected cows are equal.

Consider a cow with a clinical case of mastitis - it is likely that she will leave a far higher number of bacteria on the liner that was applied to that quarter than a sub-clinically affected quarter would.

This is why highly effective disinfection of cups after they have been on a cow with a clinical case of mastitis is so important.

Naturally, when multiple quarters are infected, as is commonly the case, the risks become substantially greater.

What this all means is that if you combine a high risk of infection with a high number of opportuni-

High quality teat disinfection, milking infected cows last, plus changing liners frequently will minimise the spread of mastitis.

ties for spread, spread will indeed be rapid.

But if you can control both, life is likely to be a lot easier - it is all in the power of the numbers.

• Rod Dyson is a veterinary surgeon and mastitis advisor at www.dairyfocus.com.au

“Highly effective disinfection of cups after they have been on a cow with a clinical case of mastitis is so important.” clinical mastitis on this farm were cow associated bacteria which means that most of the spread of mastitis on this farm was occurring in the dairy during milking.

Countdown tells us that for every 100,000 cells/ml in a herd’s Bulk Milk Cell Count (BMCC), there is likely to be about 10% of the herd affected.

So in this herd with a BMCC of around 300,000 it is likely that about 30% of the herd, or about 90 cows, will have a mastitis infection.

Generally, the most common method for bacteria to spread from one cow to another during milking is via a liner that has been contaminated by an infected cow.

We also know that when cups are removed from an infected cow, each liner that was on an infected quarter can potentially infect up to the next 5-6 cows that it is applied to.

Without making things too complicated, this means that the 300 cow farm we were talking to will have about 540 opportunities for spread of infection just via this method during each milking.

Now this does not mean that there will be 540 new infections at every milking, but it does mean that there is a huge opportunity for this farm to reduce both the number of opportunities

Take into consideration that on this farm, 40% of teats were found to have some level of teat end damage (a not uncommon finding) and you can see that at each milking there is a regular occurrence of a high risk contaminated liner being applied to a high risk teat.

Obviously that means there is a very high risk of spread of infection.

For this farm, it means a change in some milking routines - high quality teat disinfection with good spray coverage, milking infected cows last, rigorous attention to disinfecting cups that have been on a clinical case, and a change of liner to reduce teat end damage are a few of the main items, plus a number of less important changes.

Now consider a farm of the same size with a BMCC of 60,000 cells/ml.

Without any extra action, the number of opportunities for spread of infection via a contaminated liner is only about 108 each milking.

If this herd has a relatively low level of teat end damage with only 15% of teat ends having some level of damage, the chance of a high risk contaminated liner being applied to a high risk teat is vastly lower, meaning a much lower risk of spread.

For this discussion we have assumed that for each infected cow, only one quarter was infected.

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28 // HAY & SILAGE

Maize silage ideal for dairy farmers in northern Victoria MAIZE FOR silage has become

increasingly popular as a cheap source of energy and bulk feed for dairy farmers in the Goulburn Valley region of northern Victoria.

Agronomist Tim Anderson, of Advanced Ag in Shepparton, said even with high water prices, maize was providing excellent returns per megalitre and per hectare.

“Nothing else comes near it,” he said.

“We would have averaged in the vicinity of three tonne a ML this year, over all the corn. You’ve got water over $200 and we are getting corn in the stacks for roughly the same money.

Nothing else is going to get near it for the amount of feed you can produce.”

He said that corn is utilised in the dairy as part of a mixed ration and can provide up to 50% of feed supplied to the animals.

It mixes well with high protein feed such as lucerne, and allows farmers to cut back on the amount of grain used.

Tim said that the mid-season

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Agronomist Tim Anderson, of Advanced Ag, Shepparton, uses corn silage in dairies as a cheap source of energy and bulk feed.

maturity hybrids were preferred in the area because of the climate.

In some cases, the hybrids would even complete a quick rotation with winter and spring grown crops.

He said Pioneer hybrid P1467 and Pioneer hybrid P0021 were grown by many farmers in the district.

“P1467 is the standout at the moment, yield wise and quality wise.

That has been a consistent performer now for three or four years for us so it is the variety of choice. From a grain point of view, the P0021 is the variety of choice there. It’s been exceptional again this year.”

There has also been a look at some of the herbicide resistant hybrids, with Pioneer hybrid P1813-IT the preferred option in that space.

“We’re getting more continuous cropping on corn so we need more chemical options in there,” he said.

Lightning herbicide is a postemergent option to control a range of broadleaf and grassy weeds in the

CHECK OUT THE LATEST NEWS AND INFORMATION AT www.dairynewsaustralia.com.au

and they budgeted on achieving 8000 many growers in the district that were corn crop. growing corn as a grain option.

Tim said they grew and tonnes of silage in the pits.

“We aim for 15 tonne and that is A 200ha area of the crop averaged 25 recommended the range of Pioneer quite achievable,” he said.

DMt/ha in a very good result. corn hybrids.

“A lot of guys would have “They yield more. The achieved around that amount genetics are there. We know this year, especially P0021, we get the yield, we know we “We’re getting more which is a good result. If we walk get the quality, we know we continuous cropping on corn away with over 12 or 13 and grain get the back-up support from is around $300 a tonne, we know the Pioneer guys. So we’ve got so we need more chemical we’ve made money.” the latest genetics and the best options in there.”

He said many growers have yields.” achieved excellent yields on He said the yield target for Tim said farmers liked to grow around six ML/ha and have been able to dairy farmers in the region was around corn because of the speed in which it harvest in April and get a winter crop in 20 dry matter tonnes per hectare.

“Any year that we can average establishes and reaches its full height. the ground.

“Generally corn is planted from mid“It grows so quickly,” he said. “I over 20 tonnes, we’ve done well. We certainly get years where we can average get pleasure, farmers get pleasure and October when soil temperatures are on 22 or 23 on farms but realistically when we’re walking in a crop that is 12 feet the rise. We generally want to have that you’re doing a budget, you are doing it high. It makes you feel good, it makes mid-October to mid-November as our the farmers feel good and we’re happy good window but some of our silage will on 18 to 20.” push through until December.”

On one large dairy farm in the about it.”

He said as well as silage there were www.pioneer.com/web/site/australia region, 480ha of corn was planted

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HAY & SILAGE // 29

Reslient corn variety a solid silage performer at Innisplain AS PROFIT margins

continue to tighten in the dairy industry, farmers like Steve and Sharon Jervis at Innisplain in the Scenic Rim are becoming smarter with their investments.

Steve said the key to running their lean but successful 700-cow operation was to gradually add improvements based on industry best practice.

“While there’s nothing wrong with jumping in early, we like to see what trends are working in the industry and slowly incorporate things when needed, because we can’t afford to make mistakes,” he said.

Threats to the bottom line, which vary year to year, include milk price, labour overheads, feed costs, weed burdens, unnecessary capital expenditure and drought.

One of their most successful recent ventures was to introduce imidazolinone-tolerant (IT) corn, which addressed feed cost and security as well as the weed burden.

The system is based on varieties bred with imidazolinone tolerance.

This allows use of Lightning, the registered BASF product for use in the Clearfield system.

It allows for treatment of both broadleaf and grass weeds in-crop.

The Clearfield package includes an herbicide tolerant variety, the herbicide itself and a product stew-

ardship program.

“We’ve always been on TMR [total mixed rations] on this property and have been growing corn for 18 years, but recently due to the nutgrass issues, we needed IT. The technology gives us the same, if not better yields as the non-Clearfield crops, and allows us to tackle weeds,” Steve Jervis said.

They feed out 4000 tonnes of corn silage per year, peaking at 5000t, with the number of hectares under the pivoting lateral irrigation system changing each season depending on their needs.

Last season they planted PAC 606IT and PAC 727IT in October and harvested in May. “The 606 was naturally more mature, but you can’t always rely on CRM (comparative relative maturity) because variables like temperature and rainfall change this.

“Yields here max out at 70t/ha in ideal seasons and we were happy to get 55t/ha in a good year like 2015-16.

“We get the best result when we utilise the correct amount of fertiliser, have decent falls and prepare the ground. Due to good rain last year, we didn’t have to irrigate as much as usual.”

Another upgrade at the farm, this time to reduce labour overheads, was to buy their own harvester a Claas 890 Jaguar forage

Innisplain farmers Sharon and Steve Jervis.

harvester with a Kemper Champion 445 front.

“The initial outlay for the machine is big but we can harvest whenever we want now – there’s no wait time. The processor chops the cob into easily digestible portions and is ensiled until we need to feed it out.”

Future upgrades include adding automated elements to the rotary milking setup and adding to the silage pits. “I’d like to add more automation including auto teat sprays and milk diagnostics. Pinpoint accuracy with the iodine on teats and measuring milk quality would save time and money.” www.pacificseeds.com.au

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DAIRY NEWS AUSTRALIA AUGUST 2016

30 // HAY & SILAGE

Forage trial reveals merits of cutting corn higher HIGH-CHOP CORN is emerging as a

prime choice to improve milk production with new research showing it’s possible to make better corn silage by chopping it higher.

The Queensland Government’s C4Milk project team, in partnership with Dairy Australia and the University of Queensland, recently completed the High Milk from Forage Developmental Trial with extremely promising results.

The trial has shown farmers could increase milk income by $14,000 by cutting corn silage at 40cm.

Team leader (dairy) from Agri-Science Queensland with the Department of Agriculture and Fisheries, Craig Findsen, said the trial found high-chop corn is superior silage as it allows the cow to consume greater amounts of feed, potentially leading to more milk production.

“This highlights the key message

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that forage quality is the key driver of profitable milk production,” Craig said.

The trial generated strong interest and data on increasing margins over feed costs by using high quality forages.

It showed that with a total mixed ration (TMR) or partial mixed ration

Cows enjoy some turnips as part of the forage trial.

IMAGES: UNIVERSITY OF QUEENSLAND.

(PMR) diet, if the silages and pastures are high quality, cows could consume 90% forage in a diet with little grain or protein meal with intakes recorded between 18 – 24 kg/DM per cow per day.

Craig said high-chop corn was a significant proportion of the diets in phase one of the developmental trial, both within the TMR and PMR rations.

“The improved forage quality of high-chop corn relative to normal corn silage, which was seen as a reduction in fibre and an increase in starch content, gave each diet the ability for grain to be removed completely without compromising production.”

High-chop corn requires the plant to be harvested slightly higher at 40cm compared to the normal 10cm above ground level, leaving behind more of the woody fibrous stem.

Cutting the corn higher reduced the yield by 1.5tDM/ha, but the starch increased by 8% compared to the same crop harvested as normal corn silage.

The Neutral Detergent Fibre (NDF)

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was also lower, meaning the cow can consume more feed and potentially produce more milk.

Craig said the first step in producing high-chop corn is to reduce the seeding rate from 100,000 seeds/ha to 80,000 seeds/ha.

Research conducted by Pacific Seeds and the Queensland Department of Agriculture and Fisheries on three common corn varieties demonstrated that the best yield with higher starch levels were achieved at 80,000 seeds/ha.

The second step in achieving highchop corn is to harvest at the right time; when the starch line is half way down the corn kernel.

This should result in the most effective processing of the corn kernel, and ensure the best availability of starch and the ideal dry matter of 32–33% for silage.

Craig said at the point of harvest, farmers need to “have the fortitude” to direct the silage contractor to harvest at 40cm.

“The contractor will clearly want to

harvest lower as the more they harvest per hectare the greater the benefit to them,” he said.

However, the results demonstrate the benefit by harvesting at 40cm.

Yield was reduced by 1.5tDM/ha, the starch was 3 percentage units higher, meaning more energy for milk, the NDF was 5 percentage units lower, meaning if corn is 30 to 50% of the cow’s daily intake it has a substantial effect on the cow’s ability to consume a lot more feed in a 24 hour period.

There was no difference seen in crude protein percentage and the energy was higher in high-chop corn by 0.5 MJ ME/kg DM, so if a cow is eating 10kg DM/ day (~30kg as-fed) of highchop corn, it would equate to an extra 1.0 litre of milk per cow per day.

The cost of high-chop corn is comparable to normal chop, but either corn silage is an alternative to purchased grain with a potential saving of up to 16 cents/kg starch.

TO PAGE 31

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HAY & SILAGE // 31

Demand strong High yielding for quality hay A LEADING Australian

listings to meet demand.

“Some are talking the market down but we have an alternative view – right now there is a shortage and we have buyers.

There has been strong demand all winter and we need product now,” Tim said.

He said the cold and wet winter across Australia had been good for trade but could lead

want product.”

Tim said many growers had been unable to apply fertiliser due to the wet weather and waterlogging could also affect future yields.

However, demand remains strong. “The beef market is very strong with an increased demand for hay and at some point the dairy industry will recover.”

feed trader has debunked claims that the hay market is in decline.

Feed Central managing director Tim Ford said demand for hay remains strong and good quality product will continue to fetch good prices.

“Everyone’s talking about there being a big hay crop and talking the market down, but right now there is strong demand for hay and shortage of quality “Every hayshed in the country product,” Tim said. is empty and there’s no “We’re now in the carry-over of stock but market looking for customers still want product.” product to meet that demand.”

Mr Ford said He said that to access and quality last year’s drought, low predictions of lower problems. stockpiles in hay sheds, prices reflected an “It has been a good difficulties in accessing uneducated view of the growing season but there some supplies due to market. have been problems with wet weather, and strong “I think the price will cattle getting on the demand from the beef come back in the new paddocks and bogging sector and exports had season,” he said. paddocks, which leads to combined to keep the “The fundamental strong demand for hay,” market strong. requirements for newhe said.

Feed Central season product remain “Every hayshed in the has waived its usual the same; easy allcountry is empty and inspection fees and weather access to a good there’s no carry-over of charges for August with quality product with stock but customers still a view of getting more

minimal weather damage in a heavy large square bale and shedded over multiple months.”

Tim said there was a risk of a lot of poor quality hay because of the wet conditions but good growers would get good returns.

“The professional grower who makes good quality hay should and will be rewarded for their efforts and get very good returns,” he said.

The export market remains strong and the significant price setter, particularly in Victoria.

He said that if the export hay market sets the price above $200 a tonne, domestic growers would be happy with a discount off that while maintaining good prices.

“There’s no need to give it away,” he added.

“Good quality hay will sell first and sell for good money and there’s orders right now for immediate delivery.”

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Contractors may be reluctant to cut at 40cm as it will reduce the dry matter yield.

Forage trial reveals merits of cutting corn higher FROM PAGE 30

However, high-chop corn has one very important advantage over the normal chop corn silage – it is lower in NDF percentage, thus allowing a cow to eat more forage.

The C4Milk project is investigating ways of increasing the amount of quality forage a cow can eat to reduce the reliance on purchased concentrates.

Craig said high-chop corn is an excellent example of how tweak-

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DAIRY NEWS AUSTRALIA AUGUST 2016

32 // MACHINERY & PRODUCTS The Big Roy, named after Versatile’s larger than life president and general manager Roy Robinson was a 600 horsepower, eight wheeled monster.

IMAGE: AG-MUSEUM.COM

The good ol’ days when big was bigger LAST MONTH’S article considered

the Fendt 1000 series, masterpieces of modern tractor building that most of us will never need, let alone afford.

High-horsepower tractors have always been a bit like that, catering for the tractive requirements of the few, but preoccupying the dreams of the many.

In true Grunt fashion, pondering this got me thinking about some other examples of horsepower-based niche marketing over the years.

Fortunately, there are many.

Given the thought that’s gone into the 1000 series, I’m sure the good German folks over at Fendt are probably far too sensible to get caught up in some kind of diesel powered, um, ‘golden arch

iDAIRY®

Technology was competition’. advancing rapidly, and However, by some a bevy of companies – accounts there were a big and small – were few company executives pushing advances in on the other side of the all directions.

Atlantic some years ago, A bit like app develwho were. opers today I guess, Their legacies are but with more tangisome pretty impresble results you could sive machines whose JOHN DROPPERT stand back and look at. production runs were Versatile was (and short-lived, but whose YouTube fame will probably out-live via a purchase by Ford and eventual sale

by CNH Global still is) an independent Google itself.

I wasn’t paying much attention back Canadian manufacturer of high horsethen, but from what I understand the power tractors.

The story goes that in the late 1970s, 1970s and early 80s were good years for a battle was raging between US compatractor production.

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forward visibility but requiring a video camera installation for the operator to see the drawbar.

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Although a few versions were manufactured through the development phase, only one example remains of the Versatile Model 1080: ‘Big Roy’.

Unfortunately, whilst efficient at putting all that power to the ground, the four axle design produced serious compaction issues in the wheel track, which were its downfall.

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At the time, the cultivation of big acreages in Australia and parts of the US and Canada were creating demand for ever-bigger machines, so there was at least some business case to be made.

Whatever the ultimate motivation, Versatile’s larger than life president and general manager Roy Robinson commissioned a model to carry the company’s flag in this space.

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MACHINERY & PRODUCTS // 33

Pocket rocket does the trick MARK DANIEL

THE TERM ‘pocket

rocket’ might instantly bring to mind songstress Kylie Minogue.

But wait… more productive and needing much less maintenance – though deserving the same nickname– is the JCB 516-40 telehandler.

It’s compact – only 1.56m wide and 1.8m tall – but big of heart, lifting 1.6 tonnes to 4m and 1000kg at 2m forward reach. Especially this will suit farming applications where access is limited and massive lift capacities are not required.

It has a one-piece fully

work routed through the boom section for protection and superior load visibility.

Control is by single lever joystick for all functions, including forward and reverse, as well as flow rates for the auxiliary circuit, which has a maximum output of 56L/ min. An adaptive load control system also prevents overloading, and check valves ensure all main hydraulic cylinders are locked out in the event of catastrophic hose failure.

The cabin is mounted low and access is easy through a ‘stable door’ leading to an air suspended seat in an area

accessed from ground level, and radiator cleaning is by an optional hydraulically driven reversible cooling fan.

A wide range of options

JCB’s small but powerful telehandler.

can be specified, including road and work lights, front screen guards and sun blinds, safety beacons, battery isolation and fire extinguisher.

It’s compact – only 1.56m wide and 1.8m tall – but big of heart, lifting 1.6 tonnes to 4m and 1000kg at 2m forward reach. welded chassis for durability and reliability; this and other key components such as the boom and cabin are dipped in an electrophoretic alloy solution for superior protection against corrosion, then are powder coated for chip resistance and long life.

Motive power is delivered by a 2.2L Tier 3 emission-spec Kohler engine developing 47hp at 800rpm and 130Nm torque at 1600rpm.

A two-stage hydrostatic transmission allows a maximum speed of 26km/h; its transmission dump system on the brake pedal allows multi-functioning during loading and rehandling without sapping engine power.

The main boom is heavy duty: a minimum of 0.5m overlap between sections and hydraulic pipe-

0.9m wide. The upper door can be pinned back for ventilation or the machine can be specified with air conditioning.

Ergonomically laid out controls make for easy working during long hours, and the back-lit instruments are good for late nights or early winter mornings.

A large forward windscreen and side windows, and an oversize roof screen, promote visibility during loading, and the cabin is fully certified for ROPS and FOPS, protecting the operator at all times; bystanders are protected by a reversing alarm In maintenance, the 500-hour service interval for engine oils and boom wear pads is double that of competitors, the maker says, all daily checks and grease points can be

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Dairy News AUSTRALIA august 2016

34 // machinery & products

Clear-roofed shelter proves its worth in the wet AUSTRALIA’S first

clear-roofed deep-litter cow shelter has proven its worth during its first year of operation, helping a south-west Victorian dairy farm to better pasture, production and cow health outcomes.

The 48.6x81m shelter built on Simon and Pep Rea’s Panmure farm by Dairy Shelters Australia, has eased pressure on pastures during a wet winter, improved feeding efficiency and led to reduced mastitis and lameness in the herd.

Simon said the shelter had proved its worth in the wet conditions.

“Since the start of May we’ve had cattle in there the whole time; it’s been under more pressure than anticipated but it’s holding up very well,” he said.

“There were 500 in there last night when the weather was really bad, it’s much better for cow comfort.”

The shelter allowed the Reas to develop a good wedge of home-grown feed and improve feeding

efficiency with use of a feedpad.

“We’ve been reducing our stocking rates on paddocks, particularly on wet days,” Simon said.

“That has meant improved pasture cover and reduced pugging in the paddocks.”

The shelter has led to positive health outcomes for the cows.

Simon has seen fewer cows with lameness and the farm’s mastitis levels have improved significantly, with an average BMCC reading of 83,000 for July compared to 97,000 for the same time last year.

The June BMCC differential was even more pronounced, reducing from 132,000 in 2015 to 91,000 this year, and there was a similar drop from 135,000 to 105,000 in the May comparison.

“That’s the best we’ve achieved,” he added.

The farm’s production was up 5% for 2015-16, a good result considering the difficult seasonal conditions, and so far this it’s up a further 10%

in July.

“I made a decision in late autumn not to push ahead with extra cow

numbers this season because of the seasonal and industry outlook,” Simon said.

“The system allowed us to be flexible and still keep up production, but when things turn around we’ll

be able to increase our stocking rate.”

The shelter has been used by dry cows and milkers and also for calf rearing.

“We’re doing a cost and nutrient benefit analysis for using the bedding to fertilise the farm,” he said.

“There are a lot of nutrients tied up in the

“It’s become a multipurpose venue for us and we’re finding new ways to use it all the time.”

Simon and Pep joined with local vet David Colson and his wife SueEllen to launch Dairy Shelters Australia which is customising New Zealandmade Redpath clearroofed, deep-litter shelters for the Australian dairy

“It’s heating up and seems to be sterilising itself; we’re more than happy with the way it’s going.” bedding and when it comes time to replace it we hope it will fertilise the farm on a costneutral basis with the new woodchips replacing paid fertiliser.”

A demonstration at a recent open day showed the release of heat when the bedding is turned.

“It’s heating up and seems to be sterilising itself; we’re more than happy with the way it’s going.”

Simon said the shelter would be invaluable for farmers struggling with wet conditions across southern Australia.

industry.

They are made from a flexible polythene membrane and the deep woodchip floor can be easily cleaned using a simple scarifying process.

The shelters can be built at any size to meet farmer needs.

They also feature vents and retractable sun shades to protect cows during heatwaves.

Cows can move freely and feeding can be arranged under the cover or nearby. www. dairysheltersaustralia. com.au

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