WA farmers lock horns with Harvey Milk Page 3 THE BIG CHEESE
TASMANIA WANTS YOU
Demand outstrips supply PAGES 8-9
Value-adding surplus milk Page 18
april, 2012 Issue 24 // www.dairynewsaustralia.com.au
LEVY SPLIT 4 in 10 farmers vote against levy PAGE 4
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Dairy NewS AUSTRALIA april, 2012
news // 3
WA farmers in contract battle with Harvey Milk Gordon Collie
The Marks family in northern NSW take pride in their pasture grown in a 3500mm rainfall area. PG.20
Dairy farmers in Western Australia have reconvened their collective bargaining group to negotiate with Harvey Milk over supply contracts they say are an unfair exercise of company power. New contracts effectively locked farmers into supplying for two years, said the bargaining group chairman Mike Norton. Harvey Fresh wanted to assure their milk supply and prevent farmers being cherry picked by rival processors. Norton said the contracts were one sided, offering farmers only an indicative price for six months at a time.
“They announce a summer and winter price, but they reserve the right to change it,” he said. “It’s a convoluted process to get out of these new contracts.” Their validity has been questioned in a legal opinion provided by the WA Farmers Federation. There had been no response yet from the company to a letter of concern written by the WA Farmers Dairy Section. Some farmers were noting when they signed the contracts, they were doing so under duress. Norton, a Harvey Milk supplier from Capel, said he had not signed one of the new contracts. The collective bargaining group was revived to comply with Federal Trade Practices legislation at a meet-
ing held in Boyanup on March 26. All farmers had been written to as part of a datebase update and about half of the Harvey Milk’s 72 suppliers were registered members. Norton said farmers had previously enjoyed a good relationship with Harvey Milk which had significantly increased its processing volumes in the last few years. “I am confident that common sense will prevail and we can work though this issue with the company and come up with a contract structure that is suitable to both parties. The quicker we can do this the better.” Norton said the new contracts were eroding confidence of producers which was already at a low ebb. “We can’t afford to lose any
more suppliers. WA production has dropped about 8% in the past 12 months and contracts like this just don’t help,” Norton said. WA was now down to about 160 dairy farmers and another processor was already trucking four road trains of milk a week across from South Australia. Norton said there had been ongoing talk in the west of Chinese involvement in the industry. A major dairy of about 1000 cows has been purchased by Chinese interests with others believed to be under negotiation to supply a new milk powder plant. But there was no excitement among farmers about the milk prices the Chinese would be prepared to pay.
Western Victorian farmers Jason and Abby Burleigh added toys to their calving shed with good results. PG.26
Northern Victorian farmer Rick Cross is pleased with his new Kubota tractor, having used Massey Fergusons all his life. PG.30
NEWS �����������������������������������������������������3-15 OPINION ��������������������������������������������� 16-17 AGRIBUSINESS ������������������������������18-19 MANAGEMENT ����������������������������� 20-25 ANIMAL HEALTH ������������������������� 26-29 Machinery & products ���30-33 MOTORING ��������������������������������������������34
Twenty photos have been shortlisted from 60 entries in the Best Dairy Farm Photo competition of the 2012 Great South West Dairy Awards. Organisers received a record 80 nominations across the five major categories, including employer and employee of the year. The awards night will be held at Glenormiston College on April 26. Photo: Brendan Eccles.
Dairy News AUSTRALIA april, 2012
WA farmers lock hor ns with Harvey Milk
4 // news
PaGE 3
TaSMaNIa WaNTS YOu
THE BIG CHEESE
Demand outstrips supply PaGES 8-9
Value-adding surplus milk PaGE 18
40% say no but levy to rise The dairy levy will increase by
10% over the next five years despite the opposition of 40% of voting dairy farmers. From July 1, dairy farmers will contribute .00352 cents a litre - a rise of $320 per one million litres of milk produced. The results of Dairy Poll 2012 were announced last month and show 60.13% of the total votes validly cast were in favour of an increase in the Dairy Service Levy. This comprised 54.05% of votes in favour of a 10% rise and 6.08% in favour of a 15% increase. The no levy option received 39.87% of the vote. The levy funds a range of industry services including on-farm research and development into pasture productivity,
cow productivity, management of grains and farm systems. Other services include industry protection and promotion, issues management, market analysis, health and nutrition research and initiatives to attract, retain and develop people across the supply chain. About 42% of farmers voted, with 30 million votes eligible. There was a valid return of 50.86% of the available number of votes. Dairy Australia chairman Max Roberts said this was an encouraging voter turnout that compared favourably to voter numbers in similar polls by other Rural Development Corporations. “Voting for a levy increase this time was a much harder ask for farmers than in 2007 when 32% voted against main-
taining the levy rate, which was the recommended option on that occasion,” Roberts said. “We are satisfied with these numbers.” It was a nervous wait for the results for the Australian Dairy Farmers and Dairy Australia boards, as farmers voiced their displeasure about not having a status quo option. Farmers believed an increase of 10% was too much in the current uncertain economic times, with some voting no when they would have voted for status quo if the option was available. Nullawarre farmer Michael Spitse and Noorat’s Edward Conheady gathered a petition of 126 signatures from Western Victoria late last year calling for a status quo option.
april, 2012 ISSuE
24 // www.dairyne wsaustralia.com.au
LEVY SPLIT 4 in 10 farmers vote
The petition was presented at the Dairy Australia AGM last year. Conheady, a prominent industry figure who operates major operations at Noorat and Garvoc, said farmers were still recovering from a 40% drop in the milk price 2.5 years ago. He said most farmers would fund DA but they couldn’t afford to pay more right now. Dairy Australia will forward the results of the ballot and its recommendation to increase the levy rate by 10%, in line with the result, to the Minister for Agriculture, Fisheries and Forestry Senator, Joe Ludwig. “A formal determination will then
against levy PAGE 4
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001.indd 1
be made as to the next levy rate.” Australian Dairy Farmers president, and chairman of the Dairy Poll Advisory Committee, Chris Griffin, said the increased levy revenue will allow Dairy Australia to continue the scale of investment and services required to guarantee the future success of the dairy industry. Voting was conducted between February 3 and March 16, while 51 Dairy Poll meetings were held around the country in January and February this year. 4/04/12 1:21 PM
Vote over, hard work begins: Halliday Dairy Australia will continue to
investigate new ways of engaging with its levy-paying farmers, says managing director Ian Halliday. DA has been accused of poor communication towards its farmers and State representative bodies both before and after the recent levy poll. Despite a wealth of information on the DA website, information sent by post, an extensive extension program and Regional Development Programs in each major dairying area, some farmers believed they weren’t getting value for their levy. This contributed to the 40% no vote in the recent poll. NSW Farmers Dairy Committee chair, Terry Toohey, while welcoming the successful vote, said the number of voters and those that voted against the increase should be noted by Dairy
Australia. “This reflects some of the sentiment we have heard through our membership within the NSW Farmers,” Toohey said. “Dairy Australia must improve its communication to grassroots members, it must develop the programs and provide for their needs on farm, or there may be some questions at the next vote.” The Queensland Dairyfarmers’ Organisation says the 10% increase is manageable, but Dairy Australia needed to improve its relationship with farmers. QDO president Brian Tessmann told ABC Radio there are problems. “There are probably some communication issues with Dairy Australia,” he said. “I think they would have to admit that communication with the farm gate, both two-way, getting information back
of hard copies sent out because people don’t have time to read them. We may alert people through smart phones to the information on our website.” Halliday said the best form of communication was “one on one” but that this was a two-way street. The DA board conducted 52 levy Halliday said the best form of communication presentations in the lead-up to the poll and less than 10% of farmers was “one on one” but attended. that this was a two-way “People came up to me after the presentation and said they street. were going to vote no but that the 60,000 documents downloaded – but presentation had changed their mind they would investigate new ways of and they would vote 10%.” Halliday said DA and the RDPs would promotion. “There will be opportunities with investigate how they could engage smart phones, greater use of emails better with farmers. “It’s not just about communication, and even the NBN to help promote our it’s about engagement,” he said. messages,” Halliday said. Halliday said the DA board was “We have been reducing the number from the farm gate and with people like the advocacy bodies like QDO, needs to be improved.” Halliday said the DA website was well regarded – the People in Dairy website had 100,000 hits and
satisfied with the result as it enables them to deliver their five-year plan and have reserves for unknown issues that will face the industry. Toohey said despite a full year since Coles initiated its $1 discount milk strategy, and the continuing pressure this campaign has placed on farmers, it was reassuring that farmers were willing to dip into their own pockets. “This increase will allow the industry’s research, development and marketing body to continue the investment and services function for the betterment of the industry,” Toohey said. With decreasing government funding, pressure from markets and increasing compliance costs, Toohey said it was important that dairy farmers had a strong, relevant industry body that could provide that support to industry.
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Dairy NewS AUSTRALIA april, 2012
news // 5
Northern farmers prepare for tier one milk reduction it tough as the value of dairy product brands had been hammered by the major chains. Zandstra said producers in Queensland and also NSW were also suffering from a steady move of milk product processing towards Victoria which was also putting pressure on prices. “And we can expect more product brand devaluing to come with the launch of a new mid-price cheese label by Coles,” Zandstra said. “In the past the industry has relied on the premium product brand returns to support prices. “Consumers might be enjoying cheaper home brand milk in the short term, but ultimately they will pay for the long term damage being done.” Selling milk for $1 a litre was not viable and the tactic was to use milk as a loss leader to attract supermarket customers, he said. “The low returns and bleak outlook is really affecting morale and confidence in the dairy industry. Farmers are having to hang on and do the same job with less revenue. It’s very tough.”
Gordon Collie
Northern dairy producers are
braced for further erosion in farm gate returns as the fallout from supermarket milk discounting continues to reverberate more than 12 months on. “There have already been cuts in farm contract prices this year and the pressure is really on,” NSW Farmers Dairy chairman Terry Toohey said. Milk processors were also being severely squeezed by the unsustainable supermarket tactics. Processor Lion, formerly National Foods, has made billion dollar writedowns in its asset values and, with the loss of home brand supply contracts, would be looking to reduce its milk intake. Toohey said it was likely in new contracts from July that farmers would be offered a reduced percentage of tier one milk – effectively a cut in earnings even if the price per litre remained the same. “I expect we will end up back in arbitration again,” said the Casino farmer who supplies Lion through the Dairy
Farmers Milk Cooperative (DFMC). “It has happened as we said it would. Farmers in NSW have had their returns cut by $15 million since the supermar-
kets dropped the price on home brand milk last year. “And it looks like continuing. With no action following the Senate inquiry
there is not much prospect of things improving in the short term.” DFMC chairman Ian Zandstra said farmers and processors were doing
Processors increase ADF funding Processors will contribute $1.125 million for the proposed restructured Australian Dairy Farmers, enabling a similar amount to be used at a State level. State farmer organisations will vote on the implementation of a new-look Australian Dairy Farmers at the end of the month. If passed, it would come into effect on May 1. Changes to the constitution, which would see two types of ADF members – state farmer organisations and individual farmers – would require 75% member support. Current members are the six State farm groups but support from all groups has not been guaranteed.
The West Australian Farmers Federation tendered its resignation of ADF, effective in 12 months, in December while the SA Dairy Farmers Association did the same late last month. South Australian Dairyfarmers Association president David Basham told ABC Radio the new structure for the national lobby group would give SA farmers, who produce 6% of the nation’s milk, limited representation. The restructure would reduce the number of ADF board members from 15 to five, of which four would be dairy farmers. “We just don’t think that fourman board is the appropriate representation,” Basham said.
“Farmers need to have the ability to know someone that is representing them.” Basham’s concerns centre on the change from 14 members on a national board to a national council with 14 members, which feeds information to a five-person national board, including one independent director. The first directors will be Chris Griffin and Noel Campbell from Victoria, Peter Evans from WA and Roger Swain from Tasmania. An independent director has been advertised. ADF CEO Natalie Collard said the smaller board would focus on strategy and oversight of ADF operations. The National Council would have
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Under the new proposal, the processors directly contribute to the Australian Dairy Industry Council for advocacy and policy work done on behalf of the whole industry. This work, including funding the fight against the supermarkets last year, would be funded by processors while the $1.125 million funded by State farmer organisations and investment dividends would be used for farmerrelated activities. Collard said this would include returning money to the State organisations to help them increase membership, as well as a project fund of $300,000 per annum, where each state can apply for funding from between $2000 and $40,000.
representatives from the State groups and would be tasked with providing input on strategic direction and policy matters. The proposed Policy Advisory Groups would be open to all farmers, who would be selected for expertise and interest. Collard said the cost of bringing the current 14-member board together meant it met only four times a year and rubber stamped decisions that had already been implemented. Under the original plan, farmer memberships of the national and state organisations would have been fully funded for the first two years by processors and partially funded for a further two years.
Dairy News AUSTRALIA april, 2012
6 // news
Emergency funding call as flood clean-up continues About 145 dairy farms
in northern Victoria and southern NSW were affected by the recent floods, with at least 60% of those underwater for at least 24 hours. Farmers are now dealing with mastitis and lameness and have started resowing pastures, fencing and repairing laneways.
Grants of $25,000 have been issued by the State and Federal Governments to farmers in the Moira and Shepparton Shires in northern Victoria. These can be used to re-sow permanent pastures, annual pastures and crops. However, floodaffected farmers in the
Towong, Indigo, Campaspe and East Gippsland shires have been left to fend for themselves as they struggle to re-sow drowned pastures, rebuild fences, farm tracks, bridges and other farm infrastructure. The Victorian Farmers Federation has asked both governments to extend the availability of the grants.
“It’s silly and frustrating that farmers miss out because of lines on maps,” VFF president Andrew Broad said. “Farmers have repeatedly told us these grants are the most valuable assistance governments can deliver, rather than offers of concessional loans.” Further information on
grants for flood affected farmers can be found at www.ruralfinance.com.au The flooding in northern Victoria, the Riverina and northern NSW is already having an impact on the hay market. The Australian Fodder Industry Association said the supply pressure in NSW for lucerne hay may
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With large acreages of lucerne suddenly taken out of production, supply will be affected, the AFIA said. Many growers affected had told the AFIA they still had two cuts to harvest for hay production. Some summer crops have also been lost to excessive rain in the north coast of NSW and around Gympie, Qld. The AFIA said the short term need for fodder following localised flooding in Queensland has started to settle but producers are struggling to make high quality lucerne hay this summer.
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auction rose for the first time in two months earlier this month. The first global Dairy Trade (gDT) auction of the month – and the first to include Arla and Murray Goulburn – saw the gDT Trade Weighted Index rise 1.5%, with an average selling price of $3277/tonne. The Trade Weighted Index covers a range of 30 products and contract periods on offer. It was the first rise in the index since mid-January. The largest rise in price were for cheese, anhydrous milk fat, and milk protein concentrate, with small falls for skim and whole milk powder. Dairy values overall at the twice-monthly auction rose 1.5%, only their second rise of the year, reflecting rebounds of more than 13% in prices of cheddar cheese, milk protein concentrate and rennet casein from the last session. However, skim milk powder prices fell 0.8% to their weakest since December 2010.
Whole milk powder prices dropped 2.8% to their lowest since August 2010, and down 30% from a peak in March 2011. The index has fallen around 30% since hitting a near four-year peak in March last year as global commodity prices have retreated. Murray Goulburn offered lactose, a new product for the platform. Murray Goulburn, offering lactose through the auction, sold product for June delivery at $1.930 a tonne. Arla, a Danish, Swedish and German dairy farmerowned co-op, has factories in 14 countries. GDT said with existing platform members Fonterra and Dairy America, it now offers product from all major dairy exporting regions: Europe, America, Australia and New Zealand, with three sellers of skim milk powder deepening liquidity. Fonterra holds two auctions a month, with the next one on April 17. Full details of the auction are at: www.globaldairytrade.info
Dairy NewS AUSTRALIA april, 2012
news // 7
Young vet brings US insights home Liz Cotton
HELPING assist dairy farmers to make economical and evidence-based treatment decisions for their herds could lead to valuable financial and herd health outcomes. Final year veterinary student Katherine Snell, Merrigum, the winner of this year’s $10,000 Greenham Dairy Scholarship, has recently returned from Michigan in the United States where she worked at one of the country’s largest dairies, Green Meadow Farms. One of the most interesting features of the 3000-head dairy – also the largest Holstein stud in the US – was the onsite comprehensive hospital and treatment facility for cows complete with 16 intensive-care pens, which “allowed for insights into effective and economical herd treatment options”. “During my visit, I was able to follow a cow through from initial presentation, take her response to treatment, see her return to the barn she came from and monitor her production,” Snell said. “This gave a valuable insight to response to treatment and also if the actions had been an economical decision for the producer, as it was still a family owned business.” Snell said the same thinking could be applied to Australian dairy herds. “Often the value of the cow and milk prices leads farmers to choose high end treatments, especially if there is a good chance of the cow returning to full production. “However, this is not always the case, there are some cows that will have a poor or no response to treatment and an economical decision for the producer would be to cull or sell the cow as soon as possible.” Dairy hospitals are becoming an increasingly prominent feature in a number of large-scale dairy farms in the US. Green Meadow Farms’ facility employs full-time veterinary staff to perform caesareans and treat metabolic diseases, lameness and mastitis. “Due to the nature and scale of the dairy, which was a high input/high output system completely reliant on
Katherine Snell, on her family farm at Merrigum, Victoria, recently won the $10,000 Greenham Dairy Scholarship.
good management techniques and fully operational feeding systems, any small change to the cow’s diet or environment could potentially cause a huge upset to the cow’s metabolism and she would go downhill very quickly,” Snell explained. “The cows were monitored a lot closer in the barn system, compared with more extensive pasture based systems, which allowed the workers to detect problems in the early stages. “Area managers were trained to watch for common diseases for each stage of lactation. “Along with the housing conditions, there were more toxic mastitis cases that required urgent medical attention. “It was a 50:50 success rate with these with cows on fluids, pain relief and often prolonged stays in the hospital.” The herd at Green Meadow Farms is dry lot-fed year-round and milking
Bachelor of Veterinary Biology and Bachelor of Veterinary Science at Charles Sturt University, Wagga Wagga, NSW, in July. She hopes to use part of the scholarship to return to North America to attend the The Michigan, US, dairy annual conference of the farm Snell worked American Association of Bovine Practitioners to be held in on had an on-site comprehensive hospital Montreal, Canada in September, also hopes to go to Europe and treatment facility for and for a study tour. cows complete with 16 ‘‘It’s good to be at the forefront of the industry, to see intensive-care pens. what other countries are doing calving, calf rearing, feeding, dry cow and look at how we may be able to integrate some aspects into Australia,” transition and young stock. Calving year round and using fixed- she said. She hopes to practice in rural time artificial insemination after a pre-synch Ovsych program, the herd Australia, particularly in large-scale produces 77,111kg of milk solids per day. dairy areas and said working as a Snell, 23, is due to complete her large animal veterinarian, specialising is 24 hours a day by two teams working in 12-hour shifts. The dairy employs up to 80 people including managers, each with a team of staff for mid-lactation, maternity,
in cattle and the dairy industry was “natural progression” from growing up on her family’s dairy farm near Merrigum. “Australian dairy farmers are very forward in their thinking and adopting of new technologies. “I find dairy farmers are always keen to have you on farm and discuss with you the workings of their enterprise, and often take great pride in doing so. “It gives a great sense of satisfaction to know that you have not just helped out with their business, but also with a part of their livelihood.” The Greenham Dairy scholarship is open to those between 17 to 45 years who are immediate family members and employees of anyone who has sold cattle to HW Greenham and Sons at Tongala, and who wish to undertake formal study relating to the dairy industry.
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Dairy News AUSTRALIA april, 2012
8 // News: Tasmanian Expansion
Archers expand through share farming Rick Bayne
Grant Archer is doing his bit on three different fronts to help the expansion of the dairy industry in Tasmania. Grant and his wife Kim are now involved in three separate share-farming agreements, including one arrangement near Cressy that earned them the 2011 Tasmanian Share Dairy Farmers award and the business as a whole recently was named the
Grant Archer, who with his wife Kim, is involved in three separate share-farming agreements.
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Tasmanian Dairy Business of the Year. The Archers own property at Smithton, which operates on a 50:50 agreement with a share farmer, and have recently entered into their third sharefarming agreement on a newly converted farm at Symons Plains. Share farming is an ideal way to expand a stake in the state’s growing dairy industry, says Grant. “It gives you a chance to grow your business without having to make a huge investment, and at the same time you can make a good return,” he said. The award-winning farm at Cressy had been cropped since 2002 before being recommissioned for dairying in 2008-09 as a 50:50 share farm. When they became involved, the Archers found a property with poor soil fertility but thanks to a regeneration project that included upgrades to lanes, the dairy, fencing and pastures, along with the introduction of centre pivot irrigation, their fortunes were quickly reversed. In 2011 they were able to achieve a 20% return on capital, thanks largely to a high stocking rate which has now grown to 3.7 cows per hectare with good seasonal conditions and improved milk prices. Over the past three seasons the farm has been able to increase production from 150,288kg of milk solids to 217,005kg/ MS. More than 90% of the farm has access to irrigation. Production per cow and per hectare has consistently increased over the past three years. Along with the high stocking rate, the farm now employs a 16-hour milking rotation. Archer said this has resulted in considerable savings in labour, maintenance and running costs but no drawbacks in production. “The cows are the main beneficiaries. They seem happier and have more energy,” he said. About 75% of the cows’
diet is pasture-based and Grant said growing and utilising good pastures was the key to the farm’s success. Grant sees the award as an important impetus to dairying in the northern midlands area. “It puts the area on the map as a potentially strong dairying area. It shows the strength of dairying and will hopefully bring more to the region. “The midlands water scheme will open up a lot of new opportunities,” he said. The Symons Plains farm has also been converted from cropping to dairying, thanks to help from four centre pivots. It is now milking 880 cows and progressing well and production is currently 7% ahead of budget. “The owner wasn’t happy with the long-term sustainability of cropping so decided to change to dairying, which is where we came in,” Archer said. “We’re providing the cattle, machinery and labour. We’ve got a manager and assistant manager on each of the farms. It is important to have people skills and have the right people in the right jobs. There is a bit of a shortage of quality people to run a large operation so there are a lot of opportunities at the moment.” About 1/8th of the farm will remain dedicated to cropping. The Archers’ own farm at Smithton continues to produce good results, and they enjoy being on the other side of the share farming ledger. Archer was previously involved in a share farming arrangement on his parents’ dairy farm, which he eventually purchased. He maintains a good share farming agreement is a good way for young farmers to progress towards ownership. “You have to have the principals of farming in place to be successful,” he said. “Being willing to compromise and have an understanding of each party’s wants and needs is the most important thing.”
Dairy NewS AUSTRALIA april, 2012
News: Tasmanian Expansion // 9
Tasmania needs 20 new farms annually Rick Bayne
Dairy processors are pouring millions of dollars into infrastructure in Tasmania and irrigation systems are opening up new dairying opportunities…now more farmers are needed to take advantage of this growth. Industry leaders say the state will need to supply 40% more milk within the next four years to meet processor demand, which means up to 20 new dairy farms per year will need to come on board. Already some cropping and beef operators are seeing the financial benefits of converting to dairy and the industry is encouraging others to follow suit. The northern Midlands and north-east areas of the state are seen as most likely to host future dairy opportunities. DairyTas CEO Mark Smith said growth needed to sustain the dairy processors’ expansion could not be achieved within current dairy areas. “We are achieving growth of 3-4% on an average dairy farm but we need 7-8% to keep the processing companies operating at sufficient capacity,” Smith said. The introduction of irrigation in northern Midlands and north-east regions has helped to turn non-traditional dairying areas into land suitable for dairy expansion, he said. “Without irrigation it wouldn’t be possible,” Smith said. “It is a bit drier and hotter and the soil isn’t as fertile as land further south but with irrigation it is quite viable. “Already we have examples of farms around Cressy that have been successfully converted from broad acre cropping and livestock to dairy. “This has been done in partnerships between owners and managers with dairy experience and they are showing what can be done with the land. The development of water resources has opened up some exciting opportunities.”
DairyTas Chairman Paul Bennett said the influx of new and expanded processors was a shot in the arm for the Tasmanian dairy industry and dairy farmers needed to respond to the challenge by supplying more milk. “It is the first time in my time in dairying where I can choose which supply company to go to, but there’s not really a push to get extra cows in here,” he said. Bennett said the investment by processors was good for the industry and needed to be matched on the land. “It’s good as it drives competition for prices but the processors need to see a return on their investment and need to be operating at 80-85% capacity,” he said. “They have elected to come here because they realise dairy is a natural fit in Tasmania. I’d certainly like to see another 40 or 50 dairy farms come in. “We’ve seen a few startups in traditional sheep territory in the Midlands, so we have the prototype there for others to follow. They see good opportunities in dairy.” However, Bennett warned that many older dairy farmers were looking to exit the industry. “We have probably 50 farms on the market at the moment, so we need to replace those farmers and at the same time encourage more into the industry.” Tasmanian Premier, Lara Giddings said a new AgriTas training college and $1.5 million to construct new power lines would allow for the creation of more dairy farms. She also opened a new $4 million Cape Barren dairy at Woolnorth, which was a prelude to the Van Diemen’s Land (VDL) company’s future expansion plans in the region. Last year VDL announced a $180 million investment to treble production at what is already Australia’s largest dairy farm.
Other dairy investments include: ■■ Fonterra’s $6.5 million gas conversion at Spreyton and $12 million upgrade of its
■■
Wynyard cheese plant National Foods investing $150 million expanding and modernising its Burnie and King Island specialty
■■
cheese plants Tasmanian Dairy Products plans to build a $60 million milk powder plant in Circular Head
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Dairy News AUSTRALIA april, 2012
10 // NEWS: MDBA
Calls for release of economic analysis The National
Irrigators’ Council (NIC) is calling on the Murray Darling Basin Authority (MDBA) to release the promised multiple benefit study being conducted by the CSIRO to provide
stakeholders time to analyse its findings. NIC CEO, Tom Chesson, said the MDBA had rightly recognised that more work needed to be done on valuing the benefits of the Basin
Plan and held the CSIRO project up as addressing the shortfall. “Last November the MDBA released a social and economic analysis that recognised ‘inherent’ limitations in existing work on the benefits of the Basin Plan but said the CSIRO project was underway to improve knowledge,” Chesson said. “Four months later and we are still waiting. “How will stakeholders have time to analyse the findings of this study before the close of the submission period? “More importantly, how will the MDBA have time to analyse the study and consider its findings in the preparation of the final Basin Plan. “The MDBA is continuing on its merry way, preparing the Basin Plan with incomplete socio-economic analysis based on the presumption that the benefits of the Basin Plan outweigh the costs. “But most of those
‘benefits’ are what is called ‘non-use’ values which, to put in laymen’s terms, is that nice feeling you get when you think of a free flowing Murray River and has absolutely nothing to do with economic productivity or community wellbeing.” Chesson said the NIC encouraged MDBA board member Diana Gibbs to make good on her promise that more economic studies would be released. “Ms Gibbs reportedly told ABC News in January that she had ordered more economic studies and more work that hadn’t been made public would be ‘coming on stream’ in February – which has now passed with no economic studies released. “It is time the MDBA was upfront and provided us all the information they have – even if it is in draft form – so we can judge for ourselves if there are benefits to be had from stripping productivity out of our regional communities.”
MDBA puts politics over community The Victorian Farm-
next issue: may2012
Stockfeed Continued strong global demand for dairy products is driving a trend to more intensive dairy systems, which usually means additional feed inputs. To ensure that bought-in stockfeed is adding to profitability, not just costs, requires a deeper understanding of feed costs and feed utilisation. In the May issue, Dairy News will report on this growing sector within the industry.
ers Federation has questioned the Murray Darling Basin Authority’s (MDBA) consultation process after it agreed to hold a public meeting in Adelaide. VFF president Andrew Broad said he was concerned that populist opinion was driving the MDBA’s decisions, with the Adelaide meeting requested by Australian Greens Senator, Sarah Hanson-Young. “The VFF repeatedly asked for more public meetings to be held in Victoria, particularly in Echuca, which is the heart of the Victorian part of the Basin,” Broad said. Broad said he had made a personal request to MDBA Chair Craig Knowles for a public meeting in Echuca, and that the VFF had also
provided formal written requests to the Authority. The Shire of Campaspe was also strongly pushing for a meeting. However, the MDBA only agreed to provide the Echuca community with “open house” consultation. “We have been ignored for the sake of votes,” Broad said. “Water-dependent communities like Echuca are facing an uncertain future due to the Basin Plan and shouldn’t be overlooked at the expense of an area surrounded by marginal seats in Parliament. “Why should we trust a consultation process where the opportunity for basin communities to meet with the MDBA Chair is traded off against public opinion?”
Dairy NewS AUSTRALIA april, 2012
news // 11
Gippsland cheese maker wins top award One-woman dairy
dynamo Ferial Zekiman claimed the country’s top cheese title, ‘Grand Champion’, for her iconic handmade Maffra Cloth Aged Cheddar at the Dairy Australia 2012 Australian Grand Dairy Awards (AGDA), held in Melbourne last month. Nineteen Champions and two Grand Champions were awarded in front of members and supporters of the dairy industry from around the country. Using the milk from her Holstein Friesian herd at Tinamba, in the heart of Gippsland’s dairy country, The Maffra Cheese Company creates the exceptional range of cheddars and other cheeses that have earned them an enviable reputation among artisan cheese-makers. The cheese is ripened under cloth to allow a thin rind to form and is then carefully matured for 18 to 24 months. Judges said it had a moist and crumbly profile with slightly sweet and slightly fruity upfront flavours, balanced by complex savoury after-tones. The 2012 AGDA saw 115 cheeses judged in nine classes with 218 other dairy products such as butter, cream, milk, icecreams and gelato, des-
serts and yogurts judged in another 11 classes. Bead Foods won the title for Grand Champion dairy product, for its Gippsland Dairy Pure Double Cream, which also won the same title in 2009. AGDA’s chief judge, Neil Willman, praised the scope of this year’s awards. “There are winners from all around Australia, from top-quality dairy produce to the very best cheeses available, produced by small family enterprises to large manufacturers,” Willman said. The 2012 AGDA judging panel included industry experts who underwent rigorous days of judging to decide which product in each class would be awarded one of 19 Champion gold medals and receive the highly regarded AGDA recognition of quality. From these 19 Champions, the highest scoring in each category was then chosen for the prestigious title of Grand Champion Cheese product and Grand Champion Dairy product. All winners now have the right to proudly display their AGDA medal for the next three years. The 2012 AGDA panel of judges was assisted by guest international judge Professor Eric Spinnler
Australian Dairy Farmers president Chris Griffin gets his chops around a champ.
from the Paris Institute of Technology for Life, Food and Environmental Sciences – who emphasised the quality of milk being produced by Australian
dairy farms while appraising all the entries. “Australia produces some of the finest dairy products in the world,” Professor Spinnler said.
Ferial Zekiman with her award
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Dairy NewS AUSTRALIA april, 2012
news // 13
China slowdown not all bad CHINA’S economy
is losing momentum but it’s not bad news for dairy exports. Rabobank head of financial markets research Asia Pacific, Adrian Foster, expects China’s economy to grow 8% over the next two years after peaking at 12% in 2010. He says 11.7 million people are still moving annually to cities in China, opening new markets for dairy products. “Just keep in mind 650 million Chinese people are yet to move,” he
told the Dairy Business Conference in New Zealand last month. He spoke on ‘State of Play- a global perspective.’ Foster says the Chinese economy faces two big problems: over-supply of property and indebted local government. “But we should keep these risks in perspective and think about the outlook,” he says. “My view is the combination of the global backdrop, the cyclical risks confronting China’s economy and the underlying factors
Dairy CRC to analyse Jersey genetics more than 700 semen will partner with the Dairy samples and 4000 plus cow tail hair samples for Futures Cooperative analysis.” Research Centre (CRC) Dairy Futures CRC in a bid to fast-track CEO Dr David Nation said improvement of the the project was already on breed. track to deliver genotypes The move will include of more than 3500 Jersey a number of initiatives cows and 700 Jersey bulls. including the Jer-nomics “Genotyping will start project — a large-scale during March–April with analysis of genotypes preliminary breeding from Jersey bulls and values (PDVs) available cows across Australia. through ADHIS in May,” Jersey Australia CEO Nation said. Scott Joynson and his members are excited about The project is on the potential track to deliver of genomic genotypes of more technology to deliver cuttingthan 3500 Jersey edge breeding cows and 700 tools that Jersey bulls. will fast track improvement of Joynson said ABVgs the breed. were just the beginning “We have been of the industry gaining involved with the CRC some exceptionally useful from the sidelines for the breeding tools that will past few years,” Joynson allow development of an said. ideal cow for inclusion in “But becoming a a mixed herd. supporting participant “Through genomic provides us with the technology we will be able ability to ramp up our to deliver exactly the right involvement and work type of animals to the directly with the Dairy mix,” he said. Futures CRC team to Dairy Futures CRC improve the attributes of invests in large-scale the Jersey breed through research bioscience genomic technology. projects to deliver “Our members are improved pasture and voting with their feet and animal options. to date have supplied
“The Chinese economy faces two big problems: over-supply of property and indebted local government.”
supporting their trend growth momentum will resolve themselves with growth of circa 8% yearon-year in their economy this year and next.” He also brushed aside concerns on the US and EU economies. “The
headlines are overstating the negatives.” Since Greece’s bailout, attention is turning to Italy, the EU’s third largest economy. But Foster believes there’s nothing to worry about. “Recently the
European Central Bank has provided effectively unlimited liquidity to the eurozone’s financial system and this has seen risks subside noticeably, and will over time support growth in the broader economy. I don’t think a financial crisis is brewing in the EU.” On the US economy, Foster sees signs the economy is picking up. But until the labour market shows marked improvement, interest rates are likely to remain low for two years.
Adrian Foster, Rabobank.
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Mirrabong Farm Denman, New South Wales Farm Manager Andrew Farr Herd 400 cows
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Dairy News AUSTRALIA april, 2012
14 // NEWS: WORLD
Outlook strong but volatile GORDON COLLIE
DAIRY FARMERS
around the globe will ride a wave of strong but volatile prices for the next five years with markets driven by steady annual growth in demand around 2.5%. Despite apparent sustained high prices, farm margins are set to remain under pressure with most farmers earning only a modest
return on assets at best. This was the big picture presented at one of the major dairy farm shows in the US last month at the World Ag Expo in Tulare, California. The massive dairy trade show drew farmers from across North America and around the world to assess the latest and greatest in technology and attend a range of specialist seminars. A senior agribusiness
analyst with Rabobank, James De Jong, says strong demand growth had seen a convergence of prices with US farmer returns now effectively permanently above support levels and closely aligned with markets in Oceania. Demand growth for milk powders in Asia was now the key dairy market driver and would continue to be the dominant influence in the medium
turn as populations and incomes grew. The sinking US dollar was making American dairy farmers more competitive, with the result that US dairy exports had risen sharply, to above 8% of production. While US milk powders had traditionally traded at a discount, farmers were exporting more to cash in on unfilled demand. The
major export products, whey and milk powder, were now both now running above 450,000 tonnes a year. De Jong was more pessimistic about the global cheese market, still dominated by Western culture. “Markets for cheese in the West are mature and consumption is declining. The cheese market will underperform with uneven prices and only
modest demand growth in Asia,” he says. In the US, farmer returns were under pressure, particularly in high-cost intensive dairy regions such as California. Farmers were also facing increasing regulatory and environmental compliance costs. Corn prices were at historic highs and there was no prospect of the cost of milk production coming down.
“The price of milk will have to stay at a relatively high level if production is to match growing global demand,” De Jong says. China will continue to be a major driver of world demand, even though there has been a slowing in demand. Attempts to ramp up domestic production in China, including the construction of large intensive dairies, have met with mixed success.
Hoof-Tec’s Rosemary Smithyman at the World Ag Expo.
Innovation on show at expo GORDON COLLIE
A RANGE of innovative dairy products from the large multinationals to small specialist players caught the attention of judges at the 2012 World Ag Expo in California. When it came to selecting the top 10 from the hundreds of new releases across the agricultural market, recognition went to three dairy products – the DeLaval automatic milking rotary, the HoofTec complete footbath solution and Micro Dairy Logic’s electronic rumination tracking technology. De Laval introduced its new high capacity automatic milking system developed in an international collaborative research effort in Australia. The company has been a key player in the Future Dairy project at the University of Sydney Camden campus and the robotic system has won numerous international accolades since being launched. Commercial systems are already operating in Australia, Sweden
and Germany, but it is expected to be two years before the first system is installed in the USA. Louisiana company Hoof-Tec was recognised for its integrated footbath system which features a pre-mixed liquid blend of anti-microbial copper, acids and hoof conditioning salts and minerals. Company director Rosemary Smithyman is a passionate advocate of dairy foot health and offers a complete treatment service with a water-driven micro injection pump ensuring accurate footbath formulation. A fresh footbath of around 200 litres will treat 350 to 500 cows with a typical regime of one milking three days a week. Hoof-Tec markets across North America with the company keen to gain international penetration, including Australia and New Zealand. Texan company Micro Dairy Logic received an Ag Expo award for its ai24 SCR HR-Tag. The electronic neck tag monitors cow rumination patterns – a key indicator of animal health.
Specialist livestock agency servicing Australia’s dairy industry Vicstock, with its head office located in Geelong Victoria covers the dairying districts of Gippsland, Western and Northern Victoria, the Riverina in NSW, Tasmania and the South East of South Australia.
Theo Spierings flanked by Barbara Kuriger and Michelle Wilson at a recent conference in New Zealand.
‘Greedy’ tag disturbs Fonterra pam tipa
CHANGING NEW Zea-
landers’ perception of Fonterra is a key strategy of chief executive Theo Spierings. He told the Dairy Womens Network conference last week in Rotorua, NZ, that the co-op was seen as greedy and opportunistic. “We have great strength and great opportunity but media [portrayal of] Fonterra is kind of disturbing... Fonterra is not feeding the nation, we are ruining the environment, polluting, and we are seen as being greedy and taking the wealth off the country and not sharing it. “We have to change that [perception of us being an occupier] to a kind of stewardship,” grabbing opportunities for the future and also “changing our attitudes and how we are perceived.” After outlining his global and marketing strategy, Spierings later said his problem with Fonterra was that it may be doing well, “but there’s kinda no pride.” Milk for Schools, which last week started with a Northland, NZ, trial, was intended to build pride and “maintain the right to grow.” “We need to be seen as a co-op that cares – to change that [perception] from occupiers of New
Zealand to being stewards. We have to connect back to our people.” It started with Milk in Schools because children were turning away from milk and turning to Coke. Different initiatives are being put forward on water and hygiene to “bring pride back to our country.” Fonterra is “almost too big for the country,” Spierings says. “What the All Blacks do well we want to improve on. “With the All Blacks
Fonterra is seen as greedy and opportunistic in New Zealand. there was a sense of ownership by the whole country; the country did not have a financial stake in the All Blacks but it did have an emotional one. “The general public looks at dairy farming as a lot of money going to a few.” He does not believe in sharing Fonterra’s capital base with the country, but an emotional base. “There are lot of ways of sharing wealth without touching equity.” A member of the audience asked how he proposed to take the shareholder base with the company under this strategy. “How will you get the
people here energised to get that emotional ownership?” she asked. Spierings said Fonterra needed to connect with central and local government and the community. But the co-op first needed to clearly work out where it wanted to make a difference in the community – rather than ad hoc involvement – then get the shareholders onside. He said a Sky broadcast that week would be part of a phased communication plan. Every month or two another deeper level would be released, phased so shareholders can digest it, with lots of examples. There will be discussion about what to do in nutrition, water and hygiene. Another audience member said although farmers accepted they needed to do Milk in Schools for social responsibility, they still thought the public should accept it was coming out of their profit. Spierings said Fonterra found while setting up the Milk in Schools pilot scheme in Northland they connected with a lot of farmers. “It’s not charity; our farmers are part of the country. We have to be important players in the country. “We were losing consumption over the whole country... we are losing our children, we have to do something.”
Our core business of supplying various domestic and export abattoirs with dairy cows and calves is continuing to expand, as does the export heifer market and the private sale market which enables us to supply a complete service for the dairy/beef industry. Our newly appointed Tasmanian team has also expanded, with 7 agents now servicing the whole of Tasmania, specialising in dairy, but also servicing the beef and sheep grower sector. We offer a personalised agency service through our one to one on farm dealings, benefitting both the vendor and the purchaser. We have a good market for cull cows, bull and bullocks, as well as some exclusive export heifer markets into China and South East Asia that are being cemented through our Vicstock International team consisting of Mr Will Crozier (Managing Director), Mr Harold Sim and Mr Bruce Tang.
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Your team of Dairy Specialists Bernard Atkins
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Ph. 0417 593 158
Peter Collins
South / Southern Co-ordinator Dairy, Beef, Sheep
Ph. 0427 547 145
Haydn Bean North
Dairy, Beef
Ph. 0438 678 206 Joanne Groenewold North / North West Dairy
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Ph. 0438 502 188 Also find us on Facebook Head Office Will Crozier ( Director) Richard Kerr (Director) Bernard Atkins
Geelong Geelong Western Victoria Tasmania
(03) 5222 5688 0429 672 372 0437 577 363 0417 593 158
www.vicstock.com.au
Dairy News AUSTRALIA april, 2012
16 // OPINION Ruminating
EDITORIAL
Levy increase needs to fund better communication milking it... Got Milk, Can-Do Campbell? The Queensland Dairyfarmers’ Organisation was quick to congratulate the Liberal National Party for its unprecedented win in the recent Queensland election. QDO President Brian Tessmann said the win had raised hopes in many sectors for a government more in tune with the needs of rural industries and regional communities. Tessmann and the QDO had a bucket list of requests it would like the new Campbell Newman-led Government to tackle but, when it comes to the crunch, the farm group wants to ensure the security of Queensland milk for the local population. There are a lot of groups currently waiting to see the new Premier and his ministers so the QDO need to do something to grab their attention. Perhaps a crate of milk with an “imported from NSW” logo would do the trick? Surely nothing would make a proud Queenslander like Can-Do
Campbell more irate than that.
Cage fight Top marks to the Victorian Farmers Federation for organising a panel discussion on animal welfare standards featuring chief protagonist Glenys Oogjes from Animals Australia. Oogjes, the RSPCA’s Maria Mercurio and VFF Livestock President Chris Nixon will discuss how consumers’ welfare expectations could affect food production over the next decade. Animals Australia was behind the footage from Indonesia that caused a halt in the live export industry. It is also behind the national advertisements calling for changes to the process of transporting and
This was the preferred mode of transport during the recent northern Victorian floods.
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 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.
killing bobby calves. VFF President Andrew Broad wasn’t gilding the lily when he said there will “obviously be a number of differing viewpoints in the room”. “No one will be tip-toeing around the issue. For both sides, it’s a highly emotive topic.” If you want to get something off your chest, register for the VFF conference in Bendigo on April 19-20. Don’t hold back, we’re sure Oogjes won’t.
Careful what you wish for Many in rural and regional Victoria could not wait for the day when the State Labor Government, which in the eyes of many did not care for those outside Melbourne’s outer suburbs, was turfed out. It happened, but it looks like the alternative may not be the saviour for regional and rural Victoria after all. The Victorian Coalition will slash the Department of Primary Industries workforce by 20%. Its claims that frontline staff won’t be cut mean little when you think they are supported by co-workers stationed
behind desks – the impact will still be felt.
Careful what you wish for (2) The NSW State Labor Government was toxic. There was no other word for it. However, the new Coalition Government also has farmers offside, bowing to mining interests as quickly as its predecessors did. Last month the O’Farrell Government broke one of its key election promises to protect parts of NSW from mining and coal seam gas exploration and extraction. NSW Farmers President Fiona Simson said regional NSW was stunned, saying a new draft policy could allow invasive activities such as fracking and test pilot production of coal seam gas to continue on strategic agricultural land without the need for an aquifer interference approval. Simson says this could damage the state’s aquifers. “They appear to be continuing a proud tradition of selling out the long term interests of NSW in the hope of a quick buck.” As we say, be careful what you wish for.
The amount of money deducted from every farmer’s monthly milk cheque to fund Dairy Australia will now increase by 10%. The results of Dairy Poll 2012 were released last month and a fraction over 60% of votes cast was in favour of the 10% increase. What should concern Australian Dairy Farmers and the Dairy Australia board is that 40% voted for the “no levy” option. That’s 4 out of 10 farmers that are unhappy with having to pay more for what they receive. Senior industry figures were concerned during the poll period that the “no levy” vote would be in the majority. They had been out on the hustings to sell their message and had been told they weren’t happy with no “status quo” option. The Dairy Poll Advisory Committee knew a “status quo” option would most probably be favoured so did not add one to the ballot paper, effectively rolling the dice. They received the outcome they wanted but ADF and the DA board must now ensure communication between DA and farmers is improved. Queensland Dairyfarmers’ Organisation president Brian Tessmann has said there are communication issues between farmers and also advocacy groups like QDO. NSW Farmers Dairy Committee chair Terry Toohey said both the number of voters and those that voted against the increase should be noted. Toohey said it reflected some of the sentiment from his organisation’s members – communication on what programs should be implemented, and overall communication should be improved. Dairy Australia can’t be called a closed shop. There is an enormous amount of information for farmers on its website and most of this information is also posted to farmers. It funds extensive research and development programs as well as extension programs such as InCalf and Cool Cows. During the levy poll, board members and managing director Ian Halliday crossed the country selling what a farmers’ levy provides. They explained the programs that have been implemented; the behindthe-scenes work DA provides to Australian Dairy Farmers when they lobby for the dairy industry. And yet, there is a communication issue. So something has to change. More than one farmer has said they receive so much information in the mail box these days – from mail houses, AI companies, supply companies – that most go straight in the bin. Some farmers enjoy spending time on the internet while some don’t. DA needs to improve its communication with its members or the next vote is likely to be even closer. It’s hard to know what the new strategy should be but they now have a 10% increase to help them find it.
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Dairy NewS AUSTRALIA april, 2012
opinion // 17
Food security more than a buzz phrase Jan Davis
“Food security” is the current buzz phrase for what should be the world’s number one priority. The trouble is that “food security” means different things to different people – and, as a result, more time seems to be spent arguing about what the term means than on actually addressing the issue. To the United Nations Food and Agriculture Organisation, food security exists when “all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life”. The Tasmanian government has a slightly different view of this. Last month it released, amidst some fanfare, the Tasmanian Food Security Strategy. The strategy is the work of the Tasmanian Food Security Council, a government body appointed (as best I can tell) by the Premier. According to the Premier’s press release, its key objective is “giving Tasmanian communities the skills and resources to produce healthy and nutritious food …The strategy focuses on local solutions to increase access to affordable and nutritious food for all Tasmanians, but in particular to those most at risk … Organisations such as FoodBank, Second Bite and Produce to the People also play a vital role in collecting food that would otherwise go to waste and distributing it to those most in need.” You might find it surprising that the little I know about the Tasmanian Food Security Council has been gleaned from Google. You might also find it surprising that I learnt about this strategy only when the press release was distributed.
You might even find it surprising that pretty much the only mention of farmers in the document is in reference to farmers’ markets; and that the only substantive reference to agriculture is a statement that says agriculture and food policy ‘intersect’ in some areas. Unfortunately, I’ve given up being surprised by the widespread naivety amongst people about where their food comes from. I am a simple girl at heart, and this all a bit aspirational and academic for me. I would have thought that in order to have “food security”, you would first need to establish a secure supply of food – and, unless you are one of the people who think food comes from the supermarket, this by definition involves farmers. Clearly, this is not a generally held view. A recent survey showed that Australian student and teacher knowledge of food and fibre production has declined to worrying levels. Seventy five percent of students thought cotton socks were an animal product; and 45% could not identify that everyday lunchbox items such as a bananas, bread and cheese originated from farms. The TFGA accepts that the state government recognises the pivotal role that
More time seems to be spent arguing bout what the term “food security” means than on actually addressing the issue. agriculture is playing and will continue to play in terms of economic development in this state. However, it needs to focus more clearly on ensuring there is a clear rec-
There's no guarantee Australian farmers will always export more food than we use domestically.
ognition in the policy sense of the inextricable link between agriculture (and farmers) and food. Without this, not only will we not be able to capitalise on the many opportunities to grow our industry, but we’ll struggle to even maintain what we have. In fact, we have advocated the establishment of an Office of Food Policy within a restructured Department of Food and Agriculture as a means of trying to address these issues. The World Health Organisation has a “three pillars” approach to food security: ■■ food availability (ensuring there is a reliable and adequate food supply) ■■ food access (being able to obtain appropriate foods for a nutritious diet)
food use (using it properly in terms of storage, preparation and optimum nutrition) These are big questions that we must all address. We do have to think globally and act locally. Australian farmers are efficient producers of food and fibre; and in many areas we export more than we use domestically. However, there’s no guarantee that will always be the case. Australians have never been hungry – and we take our food for granted. We expect to have the world’s best quality food available 24/7 at prices often below the realistic cost of production. That’s not a given in today’s tough ■■
business climate, where our farmers are burdened with more and more costs and lower and lower returns. Food security is much broader than ‘encouraging people to grown their own vegetables, keep chooks, go to farmers’ markets, or get involved in urban foraging’. The bottom line is that, if you don’t have food, it is not much good formulating policies centred on how people can afford it. If it’s not there, you can’t eat it. Who produces food? Farmers. There used to be a bumper sticker around some time back that said ‘If you’ve had a meal today, thank a farmer’. And we should. Jan Davis is the CEO of the Tasmanian Farmers and Graziers Association.
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Dairy News AUSTRALIA april, 2012
18 // agribusiness
Milk marketing pioneer takes on fresh challenge Gordon Collie
When the Queensland dairy industry was in the throes of de-regulation in the late 1990s, Dick Schroder was labeled a rebel for seeking to sell his own milk direct to local consumers. One of the first movers to chart his own destiny, the founder of Cooloola Milk measures his success by the fact that he is still in business more than a decade later. In the past year he has taken on a new challenge to diversify his product range. The industry veteran has joined Dick Schroder forces with an up and coming young cheese maker Erin Jones to launch the he could prevail selling a fresh, wholeMary Valley Cheese Company. While the initial focus of the new some product to a loyal local customer venture has been on a range of artisan base, he said the early years establishing soft cheeses, the longer term goal is to a toehold in the market were the hardexpand into volume hard cheese pro- est in his career. He takes some pride in the fact that duction to soak up seasonal milk surplus from his own 300 Jerseys and the he is still in business and now sellthree other family herds supplying ing Cooloola Milk as an established brand in the population growth corriCooloola Milk. Schroder said he could see the writ- dor extending from Harvey Bay to the ing on the wall long before the legis- northern suburbs of Brisbane. Cooloola milk and short shelf life lative cocoon which controlled milk marketing in the north began to unravel. products are retailed through a wide The third generation dairy farmer range of independent outlets and a and milk cartage contractor said he had supermarket chain keen to position spent years planning before the advent itself as a supporter of local business. “After our early years developing of partial de-regulation in 1999. He had an on-farm processing plant and a period of consolidation we are in mind when he built a new dairy on the ready for another growth phase,” Schfamily property at Dagun, just south of roder said. He is about to enter the yoghurt Gympie. “I thought that deregulation could market in addition to making a range be managed, but it proved to be so of soft cheeses in the new manufacturmuch more devastating for the State legislation imposed industry than I thought it would a levy on his fledgling be,” he said. Plenty of obstacles were put in business of 27 cents a his way as he set about marketing litre for 18 months after his own milk, including the passderegulation. ing of special State legislation to impose a levy on his fledging business ing facility attached to the modern milk processing plant just down the road of 27cents a litre. “I was saddled with this for 18 from the dairy. “We are doing trials with a new gourmonths before the Queensland Dairy Authority was finally disbanded,” he met yoghurt which still needs a bit of work to get it just right,” he said. said. Schroder said his father Ted, who is While Schroder was confident that
Erin Jones
Schroder's Jerseys enter the dairy for milking.
now 90, had been a lifelong Jersey cattle enthusiast. The original family dairy in the Nambour district started in the 1920s and developed some of the best Jersey bloodlines in Australia. Looking for some new breeding options in the 1970s, the family began sourcing genetics from a herd in the United States which had related bloodlines to their own original Jersey Island stock. The herd has essentially operated a closed breeding program since the late 1980s and while Schroder no longer has a registered stud, he said the range of cow families established over generations was a real asset when it came to quality milk production. The herd was relocated to the Dagun district, just south of Gympie in
1973 and their land area has since been expanded to 400 hectares, improving production security. “Dad always wanted a place where he could grow lucerne. Our previous range country property was too dry,” Schroder said. While the feed bulk comes from 40 hectares of irrigated ryegrass, having access to extra backup pasture has taken the pressure off and the venture is not reliant on silage. “It costs money to operate a bigger land area, but the benefit is you have more control,” he said. Cows are batch calved with the majority coming onto fresh ryegrass in March-April, in an effort to closer align milk production to the demand curve – milk consumption is highest in the winter months.
“We are able to achieve fairly high milk production without flogging our country out. But the focus is on composition with good protein levels important for flavour and taste.” Protein levels range from 3.8-4% with 9.3-9.4% solids and 4.4-4.7% butterfat. “We’ve been consolidating the business for the past few years and are now ready for another expansion phase. “There is plenty of potential to sell more Cooloola Milk in this region, in reality our sales are just a drop in the ocean. “Cheese making will continue to be important, particularly making cheddar in the longer term, because we just can’t seem to match production to sales without generating surplus milk which needs to find a home.”
Mary Valley Cheese finds niche in Qld Gordon Collie
Mary Valley Cheese is carving out a niche market for quality product in less than a year on Queensland retail shelves. Young cheese maker Erin Jones is relishing the opportunity to showcase her flair for making soft cheeses,
a skill which she described as more art than science. The product range from the factory which now employs five staff includes triple brie, camembert, washed rind, crème fraiche, fromage blanc and an Italian black truffle brie. Food miles are a foreign concept for Mary Valley Cheese as Erin can watch the Jersey herd through the
factory window as they make their way up the laneway to the dairy. While the range of cheeses is aimed at the boutique market, the business has not even begun to touch its potential. “There are endless possibilities for mould ripened cheeses. Consumers are looking out for a quality local product,” she said.
However a shift in focus to hard cheese will be required to fulfill the objective of soaking up seasonal surplus milk. Erin was originally from South Australia and had made a career start in the wine industry when the chance came up to join the newly formed Barossa Valley Cheese Company at Angaston.
She was prompted to move to Queensland to take on the challenge as head cheese maker at Kingaroy Cheese in the South Burnett. Dick Schroder was already supplying Kingaroy with Cooloola Milk and after seven years, the opportunity came to bring the Kingaroy cheese range to the coast and incorporate it into the new Mary Valley venture.
Dairy NewS AUSTRALIA april, 2012
agribusiness // 19
Demand could offset rise Despite a persistently high Aus-
tralian dollar, the global milk supply environment is heavily influencing the direction of global markets at the moment. Today we’ll look at the latest global developments and potential downside impact on farmgate prices in the next few months. To put some perspective around global dairy production, this season Australia will produce about 9.5 billion litres, but the EU will produce around 125b litres (13 times Australian milk production), the US around 87b litres (9 times Aus) and New Zealand around 19b litres (twice Aus). The key factor in global supply relating to market prices is export availability – or what proportion of milk production actually is sold on the global market. The EU and US export around 10% of milk production, New Zealand around 95% and Australia 45% so domestic market consumption in the EU and US is critical to preventing a supply glut, while production growth in NZ goes straight to the global market. Australian milk production started the 2011/12 season slowly with very wet conditions in parts of Victoria. For the majority of the season, production conditions have been the best they’ve been in a number of years
so $5.20-$5.30/kg milk although heavy rains and solids remains a fair flooding in late Feb/early target farmgate price for March has disrupted the current season. growth in some areas. However, the biggest Nevertheless, most threat to the new season cows in flood-affected pricing environment is a areas were still milked jump in dairy commodity and positive conditions supplies from the Northin many parts of Austraern Hemisphere. lia are supporting proThe two ways this duction growth of 3-4% global impact norman could occur are via sharp this season. repacholi milk production growth Across the Tasman, or a sharp reduction in NZ milk production has streaked ahead on good production local consumption increasing export availability. conditions in many regions. Despite economic woes, EU and For much of the season, pasture growth conditions have been ideal US dairy consumption has continued and milk flows this year could increase largely unaffected. In fact, US food service sales have 8-10%. Given the significant investment in been quite strong, evidenced by Domdrying plants in NZ (see story below) ino’s pizza chain store sales for Q4 most of the additional milk is expected 2011 up almost 7% for the USA and in a to flow into WMP and SMP production survey by the National Restaurant Assowith some overflow into cheese and ciation, 56% of US food service stores reported January 2012 sales were higher butter. The increased production outlook than the same time last year. In the EU, cheese consumption in is also reflected in growing supply volumes on globalDairyTrade (gDT), but France, Germany and the UK has also is also negatively affecting prices as increased modestly (between 0.4%buyers hold out for potentially lower 2.0%) which helps offset the 3.2% increase in EU milk production during prices later in the year. Markets have generally factored in December. US milk production for the first two production growth in Australia and NZ, and manufacturers will have locked in months this year is up 5% to 14.6b litres, a significant proportion of their sales, a large proportion of which was pro-
Indicative International Commodity Spot Prices
cessed into butter and milk powders. Non-fat dried milk (NFDM) production during January increased more than 30% compared to the same time last year. US butter sales have received a small boost from retail promotion activity (prior to Easter and Passover) and strong exports contributed to a 7% decrease in total US NFDM stocks during January. Global markets have largely accepted that there will be increased production from Australia and New Zealand this season. Generally, strong milk production from Oceania (Australia and NZ) pushes market prices lower, but robust
demand despite the weak economic environment has moderated price falls across a range of products. The question is whether Northern Hemisphere farmgate prices have eased early enough to discourage strong growth this season. At the moment the risks to farmgate prices are weighted to the downside, but it’s too early to quantify price forecasts for the 2012/13 season. Dairy Australia plans to release its 2012/13 milk price forecast in the Situation and Outlook report due in midMay. Norman Repacholi is the senior international industry analyst for Dairy Australia.
Fonterra fast-tracks second dryer SUDESH KISSUN
FONTERRA IS set to triple capacity at its new Darfield, central Canterbury, processing site within a year of it opening. The cooperative last week confirmed work on a second dryer will start next month, taking daily capacity from the 2.2 million litre/day scheduled to come on stream in August this
year, to 6.6 million litres/day in 2013. “Once completed Darfield 2 will be one of the largest, if not the largest plant in the world,” Fonterra trade and operations manager Gary Romano said. The $300 million project will be Fonterra’s single largest investment for a plant. Romano says it will be similar in size to Edendale’s dryer 4, built for $212m and commissioned in February 2010.
Fonterra’s board gave the green light to the Darfield 2 project last week, including warehousing and rail access. “Since we first announced plans for Darfield in 2009 we’ve seen even more increases [in milk production] in the region than anticipated,” adds Romano. “At this rate the first dryer will be full within a few years so we need to act now to help meet the existing
demand and further growth.” Darfield is Fonterra’s first greenfield processing development for 14 years. The cooperative’s next nearest large-scale plant is just over 100km to the southwest at Clandeboye, South Canterbury. That’s been at capacity for several seasons forcing some peak milk from Canterbury to be tankered hundreds of kilometres to Edendale, Southland. “The location of Darfield means
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our tankers don’t have to travel as far for collections.” In its consent application to Selwyn District Council and Canterbury Regional Council, Fonterra said the second dryer would reduce tanker travel by about 10,000km/day at peak, over and above the 20,000 km/day saved by the first dryer’s construction. There would also be substantial savings in outward goods road travel as product would be railed to Lyttelton.
Dairy News AUSTRALIA april, 2012
20 // management
Meeting the high rainfall challenge They suffered a heavy loss of some of the top production cows in Australia in a freak of nature five years ago. A herd of Warwick Marks and his wife 170 cows in one paddock were shelterKaylene and son Andrew take pride in ing under a tree when lightening stuck, the pastures which are at the heart of killing 70 animals. “It’s taken a long time to recover their dairy enterprise at Fernbrook on the western edge of the Dorrigo Plateau. from that setback,” Marks said. Their best cows with prize genetics While high country farming with annual rainfall up to 3 1/2 metres has its can be productive for 8 to 10 years and challenges, the red volcanic soil grows with about 60 heifers raised each season the sort of grass which high perfor- they maintain strong selection pressure. Sound feet is an important selecmance dairying demands. “The pasture is as good as you will tion criteria with foot health and genfind anywhere. It has to be managed eral herd health a constant challenge right. When it comes to feeding dairy due to the high rainfall. They have extensive concrete lanecows, they must have the best of everyways and bitumen roads to keep the thing,” Marks said. cows out of the mud as The family has been much as possible. farming in the region Their somatic cell since 1906 and has built count averages around up a herd of quality 130,000 and they need Jersey cattle over more to keep it under 200,000 than 70 years. to maximise milk payNow Andrew has ments. come back home to con“We get high rainfall tinue the tradition after events and while the soil qualifying as a diesel Who: is free draining and dries mechanic and gaining a Warwick, Kaylene and Andrew Marks out fairly quickly, lameDiploma in Agriculture. Where: ness can be a problem Their fully developed Fernbrook and cell counts can go 240ha property carries What: through the roof if they the 200 head Winvarl High rainfall dairy are not watched closely,” pedigree milking herd Marks said. and a few beef cattle. The The Jersey milkers have been proJerseys have rich cow family pedigrees with detailed breeding records going ducing better than 5% butterfat and 3.9% protein and average about 6500 back generations. Their herd is a mix of international litres of milk each lactation. “You could push milk production bloodlines with the original breeding nucleus from Victoria and extensive use higher, but the components would made of Canadian and American genet- drop. They are an important part of our income with bonus payments from ics over the years. He believes there are still some our processor Norco worth about 9 or potential gains on the genetics side and 10 cents a litre,” Marks said. The property has a history of reguis planning to begin an embryo transfer lar lime use going back at least 50 years program using elite females. Gordon Collie
Warwick Marks with some of his herd of 200 high pedigree Jerseys.
Warwick and Andrew Marks inspect their pasture on their Fernbrook property.
which helps maintain their soil pH between 5.6 and 5.7 for optimum pasture production. His father Neville carried out extensive liming trials with the Department of Agriculture at rates ranging from 1 hundred weight to 20 hundredweight an acre. “He settled on the half tonne annual application which worked well and we have continued on with it.” Applying more regularly at a lower rate gave the best result as the steep country was prone to leaching after
Andrew Marks renovating pasture.
heavy rain. The lime helps to get value from fertiliser applications, mostly superphosphate and potash with some nitrogen when required. They use their own five tonne spreader which gives them flexibility during annual pasture renovation. Paddocks are mulched and over sown with a 20kg mix of rye and clover from February onwards to build a good bulk of feed ahead of the cold JulyAugust period when there is no growth. They have an irrigation plant which
has strategic benefits during the September-November period which can be dry. But they have not needed to use it for the past three years. Surplus pasture is used to make about 700 round plastic wrap bales of silage each year. The silage is chopped and fed through a mixer wagon which Warwick said minimised wastage. They are looking to construct a permanent pad to feed near the dairy. “We maintain a top production herd on two foundations – good feeding and breeding,” Marks said.
Dairy NewS AUSTRALIA april, 2012
management // 21
Calf care starts well before birth Lisa and Eddie Dwyer have always taken a holistic approach to calf rearing. The couple, who milk about 250 cows between Hawkesdale and Macarthur in southwest Victoria, rear about 120 calves each year. “It starts right back before calving for us,” Lisa said. “You have to work hard at it beforehand. The precalving stage is the important first step in rearing healthy calves.” Transition feeding precalving is a big part of the Dwyer’s system and they also use sexed semen on heifers to avoid big bull calves. Lisa was involved in putting together Rearing Healthy Calves – how to raise calves that thrive and believes most farmers would be practising the nine essential steps without realising it. “The new manual helps explain how each step is important and how they link together. Even though we already have a similar system in place, we picked up a number of tips,” she said. “But it’s understanding calf rearing goes well beyond the farm. What is done on the farm has the potential to impact the whole industry. The health and welfare of our calves is paramount. “It is incumbent on farmers to keep up-to-date with new information and
practices because the great thing about our industry is we are always improving what we do.” The Dwyers, who milk an autumn-calving herd, are members of the bovine Johnes Disease Calf Accreditation Program (JD-CAP). They run a tight ship and all employees comply with the JD-CAP procedures. “We prepare our calf shed early in summer and ensure it is very clean well in advance,” she said. Colostrum management is also important to the couple. Colostrum from a selection of their most suitable mature cows is frozen, calves are separated from the cows straight away and are fed colostrum in first 4-6 hours of life, with a second dose soon after. Each stage of the rearing process is closely monitored and dependent on the health and welfare of the calf and the weather. Usually calves are moved from the shed to an open yard at three weeks of age and are weaned to the paddock at 12 weeks, with ad-lib grain available from day one. “We also grow summer crops like chicory, rape and plantain for our heifers to graze so they reach their target weight,” she said. She believes antibiotic residues in sale calves is an important issue for the industry and is strict when
Slash power bills by $10,000 Farmers could
reduce their electricity bill by up to $10,000 each year by identifying their operation’s energy inefficiencies. DairySA’s Future Ready Dairy Systems Project hosted workshops last month that showed farmers how to reduce climbing power bills. The workshops were run by agri-business energy audit specialists, Nick Bullock and Chris Harding, who have helped over 350 dairy farmers in NSW through their popular energy auditing service. Bullock said once dairy farmers are able identify their operation’s energy
inefficiencies, they are in a good position to start reducing rising electricity costs. “Our benchmarking on dairy shed electricity costs across Australia has found there is a large range of energy costs—between $4 per 1000 litres of milk to over $14 per 1000 litres of milk,” Bullock said. “This means at a production level of one million litres, some farmers are paying up to $10,000 more each year than others. “The first step for farmers is to know exactly where they sit within this range, and the potential savings achievable.”
it comes to the matter on her farm. “Many people across the industry have been working together to ensure farmers are aware of the implications of antibiotic residues in sale calves. “Farmers need to ensure they understand the causes of antibiotic residues and how to avoid being responsible for a positive test result.” Calves are tagged as soon as they are collected from birth. Heifers and sale calves are separated and sick calves are kept in different pens. Disbudding occurs at two weeks of age. “We are also proud of
our sale calves; they are always fed just prior to the truck arriving, which is paramount,” she said. Rearing Healthy Calves – how to raise calves that thrive covers all aspects of caring for calves from pre-calving right through to weaning. Dairy Australia’s Healthy Calves program leader, veterinarian Jamie McNeil, said the guide would help farmers keep abreast of industry best practices and recent changes in livestock standards. It is available online at www.dairyaustralia.com. au or telephone (03) 9694 3723.
Victorian farmers Lisa and Eddie Dwyer have an extensive pre-calving approach to calving.
Going with the grain Water-affected grain poses opportunities but also risks for dairy farmers. Dairy Australia Feed2Milk program leader Dr Steve Little said summer rains would see some shot and sprouted feed grain in the marketplace. Farmers should be aware weather-damaged grain is not a major issue for dairy cow nutrition. Most studies in cattle indicate the nutritional value of shot and early sprouted grain equals or even surpasses that of sound grain. “It does not significantly affect animal performance or feed conversion efficiency,” Dr Little said. Shot and sprouted grain is more rapidly fermented by the bugs in the cow’s rumen, so this may increase the risk of ruminal acidosis in more digestible types of grain such as wheat. Buffers and other measures might therefore be needed to manage this risk. The test weight of a given type of grain is not a direct indicator of its nutritional value. Expect shot and early sprouted grain to have a slightly lower test weight than sound grain. Farmers are advised to be wary of grain more than 5kg/hectolitre below the relevant 2010/11 Grain Trading Australia (GTA) feed grain standard, as its starch reserves might be depleted and energy value reduced. Check grain for weed seeds such as heliotrope (Potato weed) which produce toxins. These should be below the maximum number of seeds stipulated in the GTA standards for all grades of wheat (maximum eight seeds/half-litre) and for feed barley (maximum four seeds/100g).
Check weather-damaged grain for moulds. Various types of moulds produce toxins which can be harmful to cow productivity and health. Any mouldy grain (or fodder) should be treated with caution. Be wary of grain higher than the maximum GTA standard for moisture of 12.5 per cent. “While it may look okay, it is more likely mould will grow during storage, and it will also be more prone to insect infestation,” Dr Little said. “You can be confident grain drawn from a bulk handling facility or stockfeed company will be below the maximum moisture limit of 12.5 per cent. But if grain has been stored on-farm, buyers will need to check moisture levels.” Store grain in dry and well-aerated conditions to avoid the growth of moulds. When feeding weather-damaged grain, it should be introduced into the ration slowly over several days while monitoring for any feed rejection, drop in milk production, milk composition or changes in cow health. “Ideally, limit weather-damaged grain to 5kg/cow/day until you are confident it is okay.” Dr Little said. “Continue to monitor for decreases in production and any changes to the health of the animals. As test weights of different grains vary, ensure your grain feeding rates per cow are always calculated by weight, not volume.”
Feed2Milk is one of the many examples of the dairy service levy at work locally. For more information on this and other levy investments visit www.dairyaustralia.com.au
Dairy News AUSTRALIA april, 2012
22 // management
Genomic ABVs now more reliable Results from the 10,000 cow project run by the Dairy CRC and Holstein Australia will influence this month’s release of the Australian Breeding Values. Dairy farmers can now have greater confidence in genomic breeding values when selecting young bulls. ADHIS extension manager Michelle Axford said the release of information from the extensive project would influence the results for the Holstein ABV(g)s. Axford said it would
improve the reliability of genomic-based breeding values and provide more confidence. The Dairy Futures CRC-funded 10,000 cows project has seen more than 70 of Australia’s top dairy farmers work with researchers to boost the reliability of genomic breeding values. The project has shed light on which bits of DNA are associated with good or poor performance for key selection traits like fertility and production. Project leader Dr Ben Hayes said farmers
can now have more confidence using young bulls with genomic breeding values. Genetic gain will be faster for critical traits, he said. “The other key impact is that information for hard-to-measure traits, such as fertility, will be more reliable, so producers can now select for more balanced genetic gain.” Genomic breeding values were released last year by the Australian Dairy Herd Improvement Scheme (ADHIS). “These values were
developed for bulls that are 2-3 years of age and they are three to four years ahead of a progeny test bull,” Hayes explained. “However, before the completion of the 10,000 cows project, the reliability of genomic breeding values was significantly less than standard ABVs.” Results from the 10,000 cow project remove some of that risk. “What we have been able to do with the 10,000 cow project is gain a better picture of the DNA
that underlies the wide range of performance of Holstein cows,” Hayes said. “We have a much broader picture of cows across the industry than ever before and by sheer numbers a more accurate picture of how the genes in the Holstein gene pool perform for production, fertility and cow longevity (number of lactations).” The April ABVs will be released on April 11. Go to www.dairynewsaustralia. com.au for the latest rankings.
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Colostrum critical for calves “The number one priCalf rearing and management doesn’t need ority is to get colostrum into the calves as early as to be complicated, having a simple system is the key, possible. Two days total on colostrum is worth gold. according to southwest Victorian dairy farmers Ed You can always pick those who haven’t had enough and Geraldine Conheady. six weeks down the track. “We have been doing You can usually tell by what we do for many their condition and their years,” he said. “What we coats.” do is certainly not fancy, Moving calves into a but it seems to work out paddock as soon as possinot too badly. ble helps keep bug build“The time of year for our calf rearing is not ideal “You can always pick – the days are those who haven’t short and it had enough can be tiring, so it is impor- colostrum six weeks down the track.” tant not to lose sight of up to a minimum, he said. the basics. “I have found at the end “If you don’t get the of six months we have a basics right you make better calf when they are more work for yourself in out of the sheds earlier. As the long run.” long as they are drinking And simplicity makes well, we put them out in sense for the couple who the paddocks which have run a 1700-cow business shelter,” he said. in the Garvoc and Noorat “When they are on pasareas. This year they ended ture they have access to up with 500 heifer calves ad-lib pellets and oaten and 200 bull calves. The value of colostrum hay, which is sweet and encourages them to eat is of the utmost more. It’s also good for importance for the their rumen.” Conheadys, who store In the end, while it colostrum from a few of comes down to what suits the more mature cows the individual, Conheady all the time to ensure a believes it is what you get good cross-section of back in the dairy which antibodies. matters. “If the calves haven’t “There’s no right or had enough when they come in after birth we give wrong way. The right way is what works and suits the them one or two bottles,” individual,” he said. he said.
Dairy NewS AUSTRALIA april, 2012
management // 23
Ryegrass boosts profits Perennial ryegrass still provides
many Australian dairy farmers further opportunities to lift productivity and profitability on their dairy operations, a Project 3030 trial has revealed. The six-year trial in South West Victoria and on partner farms in North East Victoria, Gippsland and South Australia found understanding the fundamentals of perennial ryegrass management was the most reliable path to increased on-farm profits. An example of the project results was the economic performance of the Project 3030 farmlets at Terang, Victoria, that averaged a 12% return on assets. This performance put the operations in the top 2% in the region. The project also found milk solids production per cow was up to 618kg on a diet consisting of 75% forages. In response, a series of eight factsheets on perennial ryegrass management have been released by
Tyran Jones
Project 3030 for the benefit of farmers, consultants and advisors including: ■■ Grazing management to maximise growth and nutritive value ■■ Practical application of grazing principles ■■ Closing paddocks for conservation ■■ Grazing management specific practices ■■ Use of N fertiliser ■■ Management of P, K and S ■■ Pasture renovation ■■ Management of weeds, pests and diseases Project3030 chairman and Yarra Valley farmer, Tyran Jones, said farmers would be interested in the new data the trial generated, particularly on crops. How the crops could be included in the forage
system and the gains to be made from perennial ryegrass would also help farmers, he said. “In the commercial sector there is demonstrated potential to improve the performance and profitability of the existing perennial ryegrass system,” Jones said. The trial found alternate forage species have specific roles in perennial ryegrass-based production systems, by complement-
ing the seasonal pattern of ryegrass production. There are opportunities to complement the existing feed base at key periods when home grown forage may be in short supply. One example was in the perennial ryegrass pasture renovation phase or on areas of land not best suited to perennial ryegrass. Jones said Project 3030 also enhanced the “body
of knowledge” about alternate forages, including DM yield potential, seasonal pattern of production, forage nutritive characteristics and management guidelines. This information is critical for selecting the best forage option to use. Seven factsheets have also been produced on chicory, tall fescue, winter cereals, millet and sorghum, turnips, regrowth brassicas and perennial
legumes. Intelact consultant Neil Lane, who was also involved in Project 3030, said the understandings from the trial about the whole feed system had been a great leap forward. “The potential with ryegrass is there to be realised,” he said. “There is now a much greater understanding of the system and alternate forages. The knowledge generated is about the
whole system and doesn’t exist anywhere else.” The factsheets are available at www.dairyaustralia.com.au/project3030 or www.project3030.com. au Project 3030 was a collaboration by Dairy Australia, University of Melbourne, Department of Primary Industries, WestVic Dairy, GippsDairy, Murray Dairy, Dairy SA and the Gardiner Foundation.
Feeding can return $200/head Help is at hand for dairy farmers and their staff preparing springer cows for the coming lactation and joining period. Dairy Australia’s InCalf program has produced the booklet Springers: repro ready to help farmers improve herd fertility. Management in the three weeks leading up to calving has a major impact on the herd’s production and fertility and on dairy business profit. Costing about $20$60/cow, a transition feeding program can return up to $200/cow. Dr Barry Zimmermann, who manages Dairy Australia’s InCalf program, said transition from a dry, heavily pregnant cow to early lactation involves major metabolic changes, and feeding a transition diet
for three weeks before calving can make a big difference. The transition diet may include a commercially prepared lead feed. Springers: repro ready outlines the important management steps to ensure you make the most of the effort and money invested in a transition program. “A transition program pays for itself in saved treatment costs, increased milk production and improved herd fertility. But many farmers tell us that the benefit they value the most is reduced stress levels by not having to treat sick and downer cows during the busy period of early lactation,” he said. The booklet is available from service providers or at www.dairyaustralia. com.au/Farm/Fertility
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Dairy News AUSTRALIA april, 2012
24 // management
Leigh Schuuring on his north-west Tasmanian dairy farm.
Fixed time AI tightens calving pattern, boosts fertility Leigh Schuuring believes it is critical to expand his herd without compromising the quality of his cows. Apart from choosing reliable bulls, the major initiative he has taken to improve the quality of the herd as it grows, has been to introduce better reproductive technology and increase the focus on reproductive management. Get that right and other things seem to fall into place. Leigh and Kelly Schuuring currently sharefarm on 293ha at Mella, just “five minutes out of Smithton” on Tasmania’s north-west coast. They own the herd, which currently numbers around 900 Holstein-cross milking cows; their aim is to level out at around 1000 high production cows. Last year, working with local veterinarian Dr Craig Dwyer, they introduced Bayer’s reproductive fertility regulators to synchronise all the cows in the herd making them ready for AI on the same day. Fixed Time AI removes the need for heat detection and, using Bayer’s fertility regulators, they got more cows in-calf earlier, enabling them to deliver more calves in a tighter calving pattern. “One advantage of this program is that we get three shots at AI in the sixweek mating period, rather than just two in the previous program Leigh used,” Dwyer said.
While the basic mechanics of an Ovsynch program are much the same across dairy herds, Dwyer is quick to point out that each herd is different. To be fully effective, the technology, professional advice and day-to-day management must go hand in hand. Dwyer sets up the structure of the Schuuring’s breeding program a month or so in advance. This involves ensuring the heifers have reached a target mating weight (which will vary somewhat for individual animals); feed transition management into early lactation; and endometritis checks and checks for other potential reproductive problems. Dwyer advises on the program and administers the Bayer reproductive regulators, while the farm staff of four does the bulk of the day-to-day reproductive management tasks. In their first year on Ovsynch, the Schuurings achieved an 81%, six-week in-calf rate (ICR), which was well up on the 73% ICR with their previous AI program. This year their six-week ICR has improved again – to 84%. “This year’s better in-calf rate is really a result of last year’s work,” Dwyer said. “Once we had achieved a tighter calving pattern through the Ovsynch program, it gave more of the cows a
“The Ovsynch program has allowed Who: us to get a high Leigh and Kelly Schuuring percentage of the Where: herd calving early,” Mella Dwyer said. What: Ovsynch program “This gives them extra time to grow; they are heavier at their first mating. longer break after calving. “They came into mating in just that So we’ve seen a positive effect on the pregnancy rate the second time we’ve bit better condition,” Leigh added. The improved ICR is in stark contrast used the Ovsynch program.” At an estimated growth rate of 0.7kg to the fertility trend in dairy cattle that has seen the ICR in the nation’s dairy per day, an extra week gives a better herds falling by around 1% a year for chance of reaching the ideal weight the past decade, according to Dairy of 350-370kg for first mating Holstein heifers. Australia. They are also more robust and survive better in the herd. This year the sixBy achieving a higher percentage week in calf rate of cows in calf, the Schuurings are in a has improved again - stronger position when making culling decisions; they can cull quite hard in to 84%. order to keep the best quality and most Heifer weight is a critical factor productive animals and still meet their in achieving successful pregnancies. heifer replacement target. “It’s a real benefit to be able to keep According to Dairy Australia’s InCalf program, many heifers are underweight these heifers as they come into the herd at first mating; they are not reaching and increase milk production,” Leigh their full potential for milk production Schuuring said. With the earlier calving, peak milk nor do they get in calf as successfully. Smaller heifers tend to also calve production is also reached earlier. The later and don’t repay their rearing costs synchronisation programs like Ovsynch until they are in their second lactation. and ProSynch enable them to pre-plan
calving in spring to match the peak pasture curve. “We’re calving when the best pasture feed is around, which means we’re getting the milk in the vat and also saving on extra feed costs,” Schuuring said. “This year milk production is 11% ahead of the previous year at the same time.” Schuuring estimates there has been an extra $30,000 in milk production alone from the program. “There could be more,” he said. “It’s definitely paid for itself in the first calving.” An additional benefit of a calving pattern in which the majority of calves are born in the first three weeks is that it provides an intense management focus. Of the 850 cows calved last spring, 80% were born in the first three weeks. “When you have a longer, drawn out calving period, you get tired, you lose focus and you lose calves,” Schuuring said. “With a tight calving pattern we’re very focused and we lose very few.” In recognition of the all-round professionalism demonstrated by Leigh and Kelly Schuuring they were named runners up in the ANZ Tasmanian Dairy Farmer of the Year Awards and were the winners of the Pasture Management Award.
Dairy NewS AUSTRALIA april, 2012
management // 25
Split herd may lift milk yield As the season draws to a close half the heiffrom New Zealand trials ers have been moved out involving splitting dairy herds suggest the practice of the small mob, and more low condition score appears to help improve (below 4) mixed aged cows body condition and promoved in to maintain the duction. The Lincoln University mob at about 200 cows. “So already we’re Dairy Farm herd, now just thinking of next season,” 642 cows where up to 700 Hancox said. have been milked in the DairyNZ body condipast, has been split roughly tion scores the herd fortone-third, two-thirds. nightly, rounding down All 140 heifers went rather than up. into the small mob from “We call it as we see it. calving, topped up to 230 Sometimes the managewith low-condition score, ment team aren’t particumixed-age cows. Where there’s been a The policy appears choice of padto be closing the docks ready for grazing, the gap between heifer small mob gets production and the the best and herd average. closest to the shed. larly happy with that but Farm manager Peter Peter is able to use the Hancox said milking took information to flick lighter about one hour for them from paddock to paddock. cows into the smaller mob and vice versa,” DairyNZ’s “They’re at the cowDawn Dalley said. shed for just 40 minutes. Dalley said in genThat’s huge for their well eral farms should aim to being,” Hancox said. condition score at four If they struggle to get key times: late February; to target residual, they’re drying off; calving; premoved on and the larger mating. mob comes in on clean up “That [pre-mating] is a duties. busy time but it’s an absoThe policy appears to be closing the gap between lutely critical one... For the investment of two people heifer production and the for one afternoon you herd average and while can get all that informaheifers started the season tion. It’s a little bit more with higher body condidifficult in a herringbone tion scores than last year, [shed] but we’ve got some they’ve held onto that ways of doing it.” advantage. If one condition score There’s a hint reprotiming has to fall by the ductive performance will wayside, then the calving be improved, with 10.8% not pregnant versus 13.8% one is probably the one to let slip, she adds. The last year, however the six others are crucial to adjust week in-calf rate is back management to help cows from 84% to 80%. Early results
reach the target BCS for calving of 5 or preferably 5.5 Hancox said the success of splitting the herd this year meant the same would be done next year, and even earlier. “This year we didn’t split the herd until September. Next year we’re
looking at August 20. It will be a hassle with all the colostrums cows and reds, but we think it’s worth it.” For all the tweaks to Lincoln’s system – mowing, split herd, more nitrogen, slightly higher residuals – Hancox stresses the farm’s main focus is unchanged.
Any cow below condition score 4.0 goes into the small herd for preferential feeding.
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26 // animal health
The ball’s in their court The next addition will be a soft piece of hose suitable for sucking. The Burleighs hope their playpen When Nullawarre farmers idea will inspire other farmers to install Jason and Abby Burleigh built a new calf similar items for their calves. “It isn’t something we had seen shed with an automatic feeder, nutrition and comfort weren’t the only things on before. A vet who saw it mentioned it to someone in the U.K. and now they’ve their minds. They also wanted to keep their calves put in something similar. It’s good for the calves so it’s good for entertained. the farm,” Burleigh said. A stand-up swingThe shed was puring ball system has done pose-built in 2009 to just that on their farm house the calves and in south-west Victoria, accommodate the autointroducing a new play matic feeding system. option for the 70 calves While the feedthey rear each year. ing system was partly Children enjoy playinstalled as a manageing with toys – so why Who: ment tool and to save not calves? That was the Jason and Abby labour, the main priorquestion answered by Burleigh ity for Jason and Abby Jason’s invention and Where: Nullaware was the health and wellhis contented calves are What: being of their calves. testimony to its success. Swinging balls It has kept both calves “They play with it all and farmers out of the the time,” Jason said. “We wanted something to address bore- elements and the stock are quick to dom and to stop them sucking other adjust to the routine. “After about the third feed they know calves and this works really well. “They run into it, butt their heads what to do and go alone. But we haven’t against it, suck on the chains, push it really saved time. We probably spend as around and generally have a good time,” much time monitoring the results and cleaning the shed as we used to do feedhe said. The Burleighs initially added a beach ing them in the paddock,” he said. “But it’s a lot better for us and the ball on the floor of the calves’ shed but while the calves enjoyed it they found calves in this environment. We can be it became too dirty. The home-made here on a wet and cold day and still have swinging apparatus has overcome that the same shaded environment.” The Burleighs have been able to problem and proven equally popular increase their calf numbers from about with the calves. Rick Bayne
Abby and Jason Burleigh installed swinging balls to address boredom and stop calves sucking each other.
50 to 70 thanks to the system, which replaced the traditional ‘feed trail behind the motorbike’ method. “We often say on a wet day ‘do you want to jump on the bike and go out and feed the calves’,” Burleigh joked. The results have been overwhelmingly positive. “The calves are a lot quieter and more content. Some people said because we weren’t handling them as much they might become a bit feral, but
it’s exactly the opposite. The contact we have with them is all positive. We never hear them bellow,” he said. Burleigh said the calves are more friendly and approachable, which they prove as they quietly mill around anyone who enters the shed. The regular feeding has also resulted in healthier calves and a close to zero mortality rate. “Studies say you should feed them colostrum twice a day at the start so we do that at the start,” he said. “With the automatic system they eat when they need it and we can monitor it and make sure they are getting enough. We automatically know if we’ve got a sick calf,” he said. The computer system gives the Burleighs piece of mind that all calves are being properly fed. Set amounts of milk and grain are fed to each calf. They average 3 1/2 litres of milk up to seven days and up to a peak of five litres from seven to 40 days. Far left: After the third feed the calves know what to do and go alone. Left: The shed was purpose-built in 2009 to house the calves and accommodate the automatic feeding system.
They are weaned off around 12 weeks. “We always feed whole milk, never powdered,” Burleigh said. “We find that is more consistent.” The farm raises mostly Friesians and normally uses artificial insemination. While most calf-rearing sheds are converted from other previous uses, the Burleighs designed their shed from scratch with calf comfort and convenience in mind. One of the automatic feeders holds milk, the other grain. The shed is divided into mirrored halves, and is hosed down twice a day. The floor features scoria underneath with drain pipes with railway lines over the top. This allows the Burleighs to bring in a front-end loader for cleaning without having to remove the scoria. Burleigh said the $50,000 investment had been worth it. Calf season for the Burleighs usually runs from mid-March. Burleigh is a fourth-generation dairy farmer on the land. He and Abby took over the property from his parents Noel and Gail last year. Abby started full-time on the farm last year after working for a Warrnambool car dealer.
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Dairy NewS AUSTRALIA april, 2012
animal health // 27
Low antibodies still a major problem Rick Bayne
will improve calf antibody levels even further. “The ability of a calf to absorb colostrum antibodies across the intestine decreases pretty quickly once they’re born. “They’ll be able to get the most from the colostrum you give them if you give it earlier,” she added. The amount of antibodies that a calf needs in its blood is about equal to its body weight in grams. The survey found that calf breed was related to antibody levels.
Some 40% cent of calves born on dairy farms in Western Victoria have a lack of antibodies to fight disease and almost 10% have no antibodies at all, a study has found. The problem could be substantially eased if farmers started feeding their calves colostrum twice a day, the study has also found. The study conducted by The Vet Group with funding from WestVic Dairy tested blood protein levels from more than 1000 calves on 100 farms to determine their level of antibodies. With an estimate of almost 45,000 replacement heifers expected to have low antibody levels in the Western District, reducing the probZoe Vogels lem could save the dairy industry $15Compared to Holstein $20 million annually. Friesian calves, Jersey The Vet Group vetericalves and Jersey crosses narian Zoe Vogels, who were half as likely to have conducted the study, said the results show that farm- low antibody levels, and dairy-beef crossbreds were ers should “assume none three times as likely to from mum” and always have no antibodies at all. give extra colostrum. Compared to heifer Dr Vogels said calves calves, bull calves were were born without antibodies to fight disease and twice as likely to have no antibodies at all. need to absorb the anti“People purchasing bodies present in firstand rearing dairy-beef milking colostrum. Those with low antibodies face an crossbreds and bull calves should be aware of their increased risk of dying. increased risk of disease “A lot of calves left to drink colostrum from their and death and need to take dams will have no antibod- action to minimise the risk of disease through besties at all,” Vogels said. practice housing, nutrition “For whatever reason, and treatment protocols,” poor mothering, poor Vogels said. calf vitality, they do not “During the course of drink enough or indeed the survey, we found that any colostrum. All calves should be hand fed an extra low antibody levels on a feed or two of first-milking farm did not necessarily colostrum in their first day mean sick or dead calves. “Some of the herds with of life.” poorer antibody transWhile most calves in fer did not report a probthe district are hand fed extra colostrum, the survey lem and, conversely, some herds with the better has shown that collectresults had quite signifiing calves from the calving area at least twice a day cant calf disease. “This illustrates the fact to give them colostrum
that calf health is a fine balance: colostrum management, housing, nutrition and treatment protocols all play a vital role,” Vogels said. As part of the survey, an economic spreadsheet is being developed to help
assess the cost of inadequate antibody transfer in dairy calves in the cost of disease, death and lost production. The study was partly funded through WestVic Dairy’s Small Grants Program.
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Dairy News AUSTRALIA april, 2012
28 // animal health
Botulism risk after floods It never rains, it pours!
Once again in 2012, La Nina has caused large areas of Australia to be flooded. It comes as a cruel blow after so many years of drought, and with the exception of the west, most states have been inundated where the dairy cattle are found. There are many problems associated with flooding, the most immediate ones like lameness and mastitis are quite obvious for all to see, and so the level of response is generally quite good. But there are some potentially very serious problems which are less immediate and potentially more devastating. Problems with parasites, (worms, coccidia and fluke) are much more likely to occur after wet conditions, so it is essential that farmers anticipate this and prepare a plan to deal for strategic
animal health rob bonanno drenching. In many areas, April is the ideal time to drench cattle to reduce the numbers of worms and hence pasture contamination. At the recent Australian Cattle Vets conference, a paper was presented that showed that quite significant losses of production can be occurring even with quite low levels of worm eggs in the faeces. Dairy producers also need to be aware of the potential for very significant losses from another disease that is barely on the radar for most dairy herds. That disease is botulism.
There is no specific treatment for botulism, and most animals that go down will either die or need to be humanely destroyed. Botulism vaccination, in my experience, is very infrequently used in most southern Australian dairy herds, yet the potential for huge losses is very real, and significantly higher after flooding. I think this is because, to a large extent, the sale of vaccines is controlled by rural stores who sell vaccines close to cost price, relying on sales volume, discounts, manufacturer rebates and “trinkets” (eskys, porch heaters etc) to decide which vaccine is best for your farm meaning there has been less and less involvement of veterinarians in advising what vaccine is actually best for your herd. There are a number of reasons why botulism is more likely after flooding.
Botulism is caused by a toxin produced from the vegetative state of the organism, Clostridium botulinum. Clostridium species, often better known for diseases like Blackleg or Enterotoxaemia, are what are known as spore-forming bacteria. This means that they can produce a dormant spore which can survive for very long times in the environment. Clostridium botulinum can be found in soils, sediments and the gut contents of fish or animals. The bacteria themselves are not really dangerous - it is the toxin that they produce under the right conditions that can be fatal. Botulinum toxin causes paralysis of muscles and is the active ingredient in botox. The muscle paralysis is what causes the smoothing of crow’s feet when used in tiny doses in the
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“There are many forms of supplementation to address trace element deficiencies. Short term supplementation with fortified vaccines, injectable formulations and drenches do not deliver long term supplementation, often only lasting a few weeks. Reliance on short term products often leads to seasonal deficiencies; as these products require regular re-administration and are easily forgotten on busy dairy properties.” he said. “Only products that supply year round trace element supplementation ensure cattle receive adequate trace elements throughout the year to help optimise growth, health and milk performance.” said Dr. O’Brien. Coopers® PERMATRACE® – a single annual treatment provides a constant supply of trace elements over an extended period. The Permatrace range can supply the three major trace elements, Copper, Cobalt and Selenium in pelletised format for simple administration. Coopers Permatrace is available from your local stockist or speak to your local Coopers representative for more information.
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Botulism can be a major problem after floods like these seen in northern Victoria.
faces of actors and models. It also causes severe disease and frequently devastating losses in cattle which consume large amounts of toxin. Botulism is considered to be typically a northern Australian disease, seen in the vast cattle properties where phosphorous deficiency is quite common, and cattle get botulism from chewing on bones contaminated with the toxin. However, as dairy farms become more intensive, and large amounts of silage is fed, the risk of botulism increases markedly. The use of mixer wagons exponentially increases the risk of a botulism disaster because contaminated feed is evenly mixed through the
ration and lots of animals can be exposed. On dairy farms, botulism is usually caused by silage that has been contaminated with the carcasses of dead animals like snakes, rats or turtles. After flooding the problem is much worse. Rotting vegetable matter can contaminate sources of drinking water; sediments are likely to have contaminated stored feed, which due to flooding may become significantly spoiled; and there is a much higher likelihood of dead animals and fish being left behind by floodwater in paddocks which will be made into silage. I have seen paddocks of maize with hundreds of dead carp, lots of rotting vegetation and heavy sedi-
ment spoilage after floodwater has been through the paddocks. These types of feed represent a huge risk of botulism if cut for silage. I would encourage all dairy farmers to speak to their experienced local dairy veterinarian about all the risks that flooding represents to the herd. Your vet is your most trusted source of independent science-based information when it comes to animal health questions. Discuss with them whether vaccinating for botulism should be part of the annual health protocols on your farm. Rob Bonanno is president of the Australian Cattle Veterinarians Association and a director of the Shepparton Veterinary Clinic.
Act now to prevent milk fever in cows Farmers should
act now to prevent milk fever in cows due to calve in the coming months. Dr Barry Zimmermann, who manages Dairy Australia’s InCalf program, said every dairy farmer’s dream is to eliminate milk fever from the herd. “Milk fever is a nutritional disease so it can be prevented, but the trick is in the timing,” Zimmermann said. “It’s too late once the cows have calved. The key to preventing milk fever is suitable nutrition in the three weeks leading up to calving.” During this time cows need to receive a diet with the right amount of energy, protein, fibre, calcium, magnesium, phosphorus and trace elements; and the correct DCAD level.
(DCAD is the Difference between Cations (sodium and potassium) and Anions (chloride and sulphur) in the Diet.) “It’s quite a fine balance,” Zimmermann said. “To achieve the correct balance you need to have all components of the pre-calving diet tested for calcium, magnesium, phosphorus and DCAD levels. “Even if you use a commercially prepared transition ration, you’ll need to consider the impact of other components of the springer diet, such as pasture and hay.” Feeds which carry a high risk for milk fever include pasture treated with effluent, high potassium molasses, legume pastures and concentrates or grain with added sodium bicarbonate.
“The benefits of preventing milk fever are far reaching so it may be worth working with a nutritionist to achieve the correct balance in the springer diet.” The most obvious benefit is not having the stress and cost of dealing with downer cows but the less visible benefits affect the bottom line and animal welfare. “For every clinical case of milk fever you see, up to eight other cows may be affected in some way. “Preventing milk fever also improves milk production, herd fertility, herd health and animal welfare.” InCalf transition feeding workshops will be held around Australia. Email enquiries@incalf.com.au or telephone (03) 9620 7283
Dairy NewS AUSTRALIA april, 2012
animal health // 29
There’s money in mastitis control MASTITIS IS a management disease rather than a contagious one, says animal health consultant Adrian Joe. Speaking last week at the New Zealand Large Herds Dairy Business Conference in Palmerston North, he said reduction in somatic cell count of 100,000cells/ml was achievable in herds irrespective of size.
Cure could be all in the genes ALAN HARMAN
A NEW molecule discovered by chemists at the University of Illinois is a potential breakthrough antibiotic treatment for bovine mastitis. Lead researcher Wilfred van der Donk, a chemistry professor at the university, found genes that make a molecule with a similar structure and function to the antibiotic nisin. Nisin occurs naturally in milk and is a product of bacteria in the cow’s udder. It helps keep milk from spoiling and kills a broad spectrum of bacteria that cause food-borne illness, most notably listeria and clostridium. Van der Donk says nisin also shows promise as a treatment for bovine mastitis. As it is already present in low levels in milk, farmers using it to treat mastitis may not need to discard milk or meat from recently treated animals. But it has drawbacks. Nisin is produced in an acidic environment, but becomes unstable at the neutral pH levels needed for many foods or pharmaceuticals. It also becomes unstable at higher temperatures, limiting its uses. Van der Donk and his team isolated the newly discovered genes and inserted them into E.coli to produce the new antibiotic – now named geobacillin – in large enough
When treating mastitis, little things count. Choose antibiotics that give results, says Joe. Staff must also be properly trained in teat spraying and handling cows with mastitis. Traditionally mastitis has been blamed on bacteria and cows. But Joe points out the disease was inevitable as bacteria are universal and “whenever you milk cows, mastitis is a consequence”. “The reality is mastitis
Joe, a PureMilk mastitis consultant, says awareness, attitude and attention to detail will help farmers reduce SCC in their herds. “There’s money in reducing your herd cell count. The larger your herd, the more money you lose through mastitis. In a 1000-cow herd with average SCC of 300,000cells/ml, a 30% reduction saves $139,000. That’s the equivalent of one new Mercedes for you.”
quantities to study its structure and function. He says the new antibiotic, an analog of nisin, also has potential for treating bovine mastitis. Nisin, and presumably geobacillin, work by binding to a molecule the pathogen needs to build its cell wall and then poking holes in the bacterial cell’s membrane, a one-two punch that quickly kills the invader. The researchers tested geobacillin against several food-borne and diseasecausing bacteria and found it similarly effective or more effective than nisin, depending on the bacteria. Most significantly, it was three times more active against the main contagious bacteria responsible for bovine mastitis. Also, since mastitis could be caused by a number of different infections, geobacillin’s broadspectrum activity makes it an attractive option. The researchers now plan to test geobacillin against a wider spectrum of disease-causing bacteria. Many tests of safety, efficacy and economic production lie ahead, but geobacillin has shown great promise. The researchers hope its greater stability will allow medicinal applications for geobacillin that nisin could not realise, for bovine mastitis and possibly for human disease.
is a controllable disease. The two key risk areas are staff and poor implementation of the well researched and proven control measures.” Joe says each farm will
have key issues in mastitis management. “The key is to go for the huge payoff areas. The emphasis is on attention to detail with less emphasis on speed at which cows are milked.”
Joe's five-point plan • Treat clinical cases. • Treat subclinical mastitis and prevent new infections with dry cow therapy. • Cull non-responders. • Regular milking machine testing and maintenance. • Teat spray.
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Time will be on your side when treating mastitis. We know that getting milk into the vat quickly after treating mastitis is really important. That’s why Pfizer Animal Health has released a new mastitis treatment with great benefits. • Shortest milk withholding period available – 48 hours • Successfully treats the most common causes of mastitis, including E.coli • Short 7 day meat withholding period • Trusted worldwide This makes it the perfect first choice mastitis treatment for your dairy. Talk to your vet and ask them about the latest in clinical mastitis treatment and put time on your side.
Dairy Health. Performance. Growth. www.pfizeranimalhealth.com.au 1800 335 374 Pfizer Australia Pty Ltd 38–42 Wharf Road, West Ryde NSW 2114 ® Registered trademark of Pfizer. PAL0609/DN
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Dairy News AUSTRALIA april, 2012
30 // machinery & products
Kubota ticks all boxes In 2002 they built a brand new 20-a-side doufarmer Rick Cross is ble-up milking shed, with taking it a bit easy around rapid exits, and bought the farm at the moment the business in 2004 as he recuperates from a from his parents, Alan recent hip replacement. and Beryl. Cross, from Toolamba, During spring last year just south of Shepparton, surmises, obviously cor- working clothes he purchased a 95 PTO chris dingle hp Kubota M110XDC rectly, that his fascination through Bertoli Farm with running ultra-marMachinery in Shepparathons may have had ton. something to do with the “I’ve always had hip problem. Massey-Fergusons,” Rick took up runCross said. ning as a diversion when “At the time my things were hitting hard MF4245 had been underin the drought. going a major overhaul Starting off with the in at Bertoli’s, which relatively short ‘Run for Who: proved to be fairly termithe Kids’ event in 2007 to Rick Cross nal. We looked at orderhelp raise money for the Where: ing another Massey but Royal Children’s HospiToolamba they couldn’t deliver for tal Good Friday Appeal, What: six months. So Jack Colthe passion hit hard and Kubota M110XDC lins said why don’t you he started serious runlook at a Kubota? ning “for the sheer plea“We already had a Kubota on loan sure of it”. His last big run was the 2010 Coast to while the Massey was being repaired Kosci, a 240km foot race from Eden on and it was a basic, no-frills tractor that the NSW south coast to Charlotte Pass, was doing a reasonable job. “Jack took me out to show me a neighvia the summit of Mt Kosciusko. Rick, Judy and the family milk a bour’s Kubota M110 and I was impressed, mixed herd of 320 cows on the 200ha so they delivered a new one in 10 days.” Cross said that they bought the home farm which was originally part of upmarket model, with a few extras a large sheep station. The Cross’ home was the bound- fitted. “I find it very stable with a good front ary rider’s house. They lease a further adjoining 120ha as a run-off block and end loader. We can easily unload two large square bales, it works beautifully. for fodder production. Cross’s grandparents farmed on a I’ve been more than impressed.” The M110XDC is fitted with Kuboproperty next door and his father, Alan, took over this place when it was 64ha to ta’s Intelli-Shift transmission with 16 forward and 16 reverse gears. start milking. An interesting feature for dairy farmCross obtained an Ag Science degree at Latrobe and worked as a CSIRO biol- ers is that it comes with Kubota’s ‘Biogist in Queensland before the draw of Speed Turn’ system. This means that when the front the dairy brought him back home – as he wheels exceed a turn angle of 35 degrees says “long before the drought”. Goulburn Valley
Goulburn Valley farmer Rick Cross switched to a Kubota tractor when his Massey Ferguson broke down and hasn’t looked back.
they rotate at nearly twice that of the rear to allow a smoother tighter turn for getting in and around livestock yards and narrow laneways. “The main thing about the Kubota is that it is a hard-working, basic tractor that is easy to use and uncomplicated,” Cross said. “Access to the cab is not brilliant, but once you’re in it’s fine. I could see how a big bloke might struggle. Plus the headlights at night are not all that brilliant.” He added that Bertoli’s are excellent
to deal with, especially for back-up service. They have a Massey Ferguson 5460 without a bucket to do the heavy work of discing and seeding, so the new Kubota is the general ‘run-around’ unit, feeding out silage and hay and doing all the bucket work. Other equipment includes an Econofeeder round bale feed-out unit, a Hardi boom spray, a slasher and a Roterra power harrow. They grow all their own hay and silage and Cross said the deregulation money they received was all about increasing their efficiency in growing fodder – lasering and improving the paddocks and the water supply. The pasture is ryegrass and clover and they will put in oats and lucerne this year. They use contractors for the round and square bales. Cross said they have grown maize in the past, but not this year, as there is a surfeit of feed. Rick and Judy have three boys,
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Michael, the oldest at 18 has just finished VCE, Shaun is 16 and Joel, 14. They employ a full-time worker, Hayley Jennings, from next door, who has been doing jobs around the dairy since she was 12 years old. A couple of casuals look after the milking and Michael has been indispensable in helping out while his father has been indisposed. As a director of Bega Cheese, Cross said he is absolutely confident in the future of the industry. “Out of any ag activity, dairy is the one to be involved in. We plan to expand to 350 cows. It can be difficult at times; you live by risk and learn from it.” He may have another four months to go in recuperation but is busting to get back into long distance running as soon as he can. Working Clothes will focus on the performance of a new machine each month. Send suggestions to Chris Dingle on 0417 735 001 or email chris@springbankfarm. com.au
Dairy NewS AUSTRALIA april, 2012
machinery & products // 31
Beaudesert robots save labour, boost production The Dennis family at Tamrookum installed three Lely Astronaut A3 milking robots on their farm south of Beaudesert, Qld, 18 months ago, adding a fourth more recently. The family held a field day last month, attended by 20 local farmers. The Dennis family reentered the dairy industry in 2007 after an absence of five years due to the on-going drought. “When we re-entered the industry we did it on a very tight budget rebuilding our original 40-year-old herringbone dairy,” Greg Dennis said. “The shed and yard system began to hinder productive and reproductive efficiencies as the herd swelled towards 200, forcing us to review our alternatives. “I started researching milking robots, and was confident it was the way of the future. “It is the productive efficiency and the technological information that the robot gives that really impresses me. “The computer also records a health check, weighs the cows, and gives a heat detection reading. “In particular the heat detection through its activity monitoring impressed me, and this inturn shortens our calving interval. “Another aspect is it cuts down the time I spend in the dairy allowing me more time to manage other aspects of the farm. “The labour issue is also an attraction and it makes my farm time more flexible.” The cows are milked 2.4 times on average over a 24-hour period and the hygiene is also automatically managed. The teats are washed down after every milking and the lines are rinsed after every 10 cows. The cow’s daily production is also captured on computer via a neck collar worn by each cow. Dennis undertook a level one service techni-
cian course through the Lely Center which took 10 days to complete. “This gave me a good background and understanding of how to connect all the dots of the system,” he said. “As well, it allows me to do all the routine maintenance to the robots and I can fix 90% of the problems before I ring the Lely technician.
Greg Dennis shares his experience of installing the Lely Astronaut A3 with invited visitors to the on-farm seminar.
“I have been able to pass a lot of this knowledge onto our full-time farm employee, Greg Ward, who is also capable of trouble shooting and is very capable and hands-on with the robots. “If you do the routine maintenance regularly everything in the shed works well. “Our cows have adjusted to the robots very well and once they are in the shed they go through to get milked, and we have been averaging 2.4 milkings daily since last spring, from a herd that calves all year round,” Dennis said. Over the 18 months the herd has grown from milking 140 Holsteins Friesians. Since then, through the natural rearing of their own heifers, the family has increased their numbers to 180, with plans to rear and milk a total of 240 cows. “In December last year, we installed our fourth unit, to give us a faster and more efficient operation, and this will speed up the cow flow throughput,” Dennis said. “We really have confidence in the industry, and believe the demand for
milk will hold.” As a result of the installation of the Lely Astronaut A3 on the Dennis family farm, Lely has opened its first Lely
Centre at Jimboomba, Qld, with Derek Acheson on-hand to install and service the operational needs of the robots. Tel. (03) 5484 4000
The Lely Astronaut A3 milking robots in operation.
GOOD NEWS FOR FARMERS! “Save big $ on Aitchison 3000 & 3100 Disc or Tine & Coulter Seed Drills during our 3000 series model run out sale”
PRACTICAL OPTIONS TO HANDLE EVERY SEEDING REQUIREMENT AITCHISON 3000 / 3100 SERIES TINE AND DISC DRILLS • 2.4m (8ft) sowing width, 16 run, or 3.0m (10ft) sowing width 20 run • 150mm row spacing • Seed and fertiliser box or seed box only • Linkage mount or trailed • Tine with disc coulter or 355mm concave disc • Seed bin dividers and agitator • Aitchison hectaremeter and rear tread board standard CONTACT YOUR LOCAL REESE AGRI AITCHISON DEALER FOR DETAILS FREEPHONE 1800 140 196 BRENDAN PRENTICE 0400 540 300 REESE ENGINEERING LTD GEELONG, VICTORIA EMAIL reeseagri@bigpond.com WEBSITE www.reeseagri.com.au
Dairy News AUSTRALIA april, 2012
32 // machinery & products
Healthier pastures from waste A new Australian-designed and
engineered machine will help contractors and farmers turn manure and other waste products into pasture-improving compost. The Seymour Composter 4000 TravelA won the Tractor & Machinery Association’s Machine of the Year Award at last October’s Elmore Field Days and was demonstrated at the Farm World Field Days in Warragul, Gippsland, last month. One contractor who has already seen the potential is Jim Vaughan, Trafalgar, Vic. He runs Gippsland Compost Pty Ltd and it was his machine that was used for the demonstrations. The Seymour Composter is used in a system for making rows of compost from various types of manure and other material that is instrumental in retaining nutrients. Materials used can include pig, poultry, dairy or feedlot manure, damaged hay or straw and green waste. The farmer or contractor may include additives such as trace elements or lime to the mix, depending on soil tests. The Seymour 4000 can process 700 tonnes of material an hour, turning what on most farms has
traditionally been waste material into organically rich compost to help get organic matter back into the soil. Farmers are discovering that pastures treated with a composted mixture provide major benefits in soil structure and beneficial organisms, resulting in balanced and healthy soil. The machine passes through the row mixing, aerating and conditioning the product. It is processed into a uniform blend by adding moisture, and then turned again when the compost heats up to around 60C. Up to five turns is usual before it is ready to be applied to pasture or worked ground. The Seymour Composter speeds up composting from an average of 12 weeks to eight weeks by breaking up lumps so that there are no anaerobic pockets. Vaughan has only been operating Gippsland Compost since the start of this year, so he is just learning the business, although he has worked with farm contractors up until now. He has just bought a second-hand 115 horsepower Fendt 712 to power the Composter. The Seymour Composter 4000 TravelA suits a windrow of 1500mm high and 3000mm wide with an
The Seymour Composter 4000 TravelA in action at Farm World in Warragul last month.
operating speed of 500 to 800 metres per hour. Working width is 7.4 metres. Seymour Rural Equipment says that an innovative drum and tine design expels the maximum amount of CO2. The tines are positioned on the
drum so that they pull product from the outside of the windrow to the inside with a fluffing action that lifts and aerates the hot material at the core of the heap. The machine comes with provision for a water manifold to inject water
into the compost rows to avoid them drying out too quickly. The Seymour Composter 4000 TravelA can fold for transport and be within the width of a tractor in under a minute, ready to travel at 50km/k. Tel. (03) 5792 1100
Larger JCB lifts spreading efficiency by 30% Western Victorian fertiliser
retailing and spreading business, Grass Growers Vic, has improved urea spreading efficiency by around 30% since adding a JCB 8250 Series II Fastrac machine to their fleet. Grass Growers Lead Operator Michael Smith uses the 8250 Fastrac predominantly for urea spreading with a linkage mounted 4.5-tonne Amazone spreader, broadcasting urea at 36 m and superphosphate at 55m. “It is a far more efficient machine to operate,” Smith said.
Having operated JCB tractors for many years, he said it was a logical decision for the business to buy the JCB 8250 when shopping around for a bigger tractor in early 2011. “A big factor with the JCB 8250 was that, although it is a 10t machine, it handles like a 7-8t tractor in manoeuvrability. “That is very important to our business because we work on dairy farms where we need to get around a lot of gateways.” The company’s fleet of four tractor
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spreaders cover a 100km radius from their Terang base and Smith said road speed was important when working over such a big area. With 710-millimetre tyres on the back and 540mm tyres on the front, the Grass Growers’ JCB 8250 Fastrac was capable of travelling at up to 71km/ hour. “Road speed was another factor in the decision to buy this tractor because our drivers can now get around to four or five different farms in a day, despite them being 15-20km
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apart,” he said. The JCB 8250 Series II Fastrac is powered by a Cummins 8.3 litre, QSC turbocharged and intercooled engine and produces a gross 194 kilowatts (260 horsepower) with a power burst of 20hp as engine revs drop to 2000rpm. Maximum torque is 1179Nm at 1400rpm. Smith said the V-TRONIC continuously variable transmission in the 8250 was brilliant, with a mode for every possible task and a simple design that made staff training easy.
He said the drivers at Grass Growers mostly operated in ‘Flex’ mode when spreading fertiliser and this was highly fuel efficient, using 8-9 litres of fuel per hour depending on ground conditions. The 8250 Fastrac tractor has a category three rear linkage system with full electronic control and provides lift capacity up to 10,000kg. The optional two category front linkage has capacity for lifting up to 3500kg. Tel. 1300 JCB CEA.
Pride Delta provides fast progesterone release Agri-Gene is now distributing Prid Delta, a new intra-vaginal progesterone device developed by Ceva Animal Health. Ceva is a leader in research and development and sales of veterinarian equipment with a turnover of 1.2 billion euros and over 2500 staff worldwide. Agri-Gene said Prid Delta is the result of over 10 years development to ensure flexibility and
retention of the progesterone device. The design and shape gives it an increase of surface area on the vaginal tract of 34% over conventional devices. This provides a faster release of progesterone on insertion and a faster decrease on removal. Agri-Gene said this has been proven in trials in Europe. Ceva is also currently conducting large trials on five farms in New Zealand comparing
Prid Delta to Cidrs in the Southern Hemisphere. Results are due by June and Agri-Gene said early results have been encouraging. Agri-Gene said Prid Delta has shown in European trials over the past three years that by running shorter programs and using PG and ECG, pregnancy rates can be lifted by up to 15%. Ceva Australia will offer technical advice to Agri-Gene.
Dairy NewS AUSTRALIA april, 2012
machinery & products // 33
Bender160 covers odd-shaped fields Valley Irrigation has released the
Bender160, which can be easily fitted for centre pivots. The USA-based company said for an economical cost, the Bender160 can increase the number of irrigated hectares in a field. With the Bender160, a grower can easily avoid a tree, building, or other obstacle in the field, allowing for maximum irrigated land, the company said. The Valley Bender160 easily retrofits to existing centre pivots, though minor structural changes
to the centre pivot are required. Equipment product manager, Wade Sikkink, said the Bender160 is designed to provide growers flexibility to maximise their irrigated hectares in oddly shaped fields with obstacles. “The innovative design of the Bender160 allows for continual monitoring of the machine angle while bending, which enables growers to control auxiliary functions and end guns. “This exclusive feature from Valley Irrigation gives growers more options to make sure they
Help cows with Fertility Plus Agri-Gene has
released a new supplement combining minerals and vitamins to boost animal health and production. Fertility Plus is processed using a process of weatherisation and is available as a free choice ad-lib product or fed through dispensers with feed rations. The company said the combination of selenium (30 PPM), magnesium (10.5%), zinc (3500 PPM), calcium (15%), vitamins A, D3, E and B, and cobalt, maximise performance and fertility. Trials were held on 40 donors in a 12 month period prior to release, with 20 donors receiving Fertility Plus and 20 donors not. This was then reversed in the following flush. The donors were flushed at regular intervals by Dom and Jo Bayard, Global Reproduction Solutions, Goorambat, Victoria, who now use Fertility Plus in their export centre, as well as with domestic clients, due to the positive results. Agri-Gene said there had also been reports of stronger heat cycles, fewer non cycling cows, improved conception rates, change in coat colour
and smoothness, while cattle also stopped licking the ground, bark or other objects. The cattle take more than the recommended 60-80 grams per head per day in the first 7-10 days but in every case they then take the correct level, AgriGene said. The cost of Fertility Plus is between 12-19 cents per animal per day depending on size and deficiencies. Fertility Plus does not replace feed or rations and, as the animal’s general health improves it will generally require more feed due to better feed conversion and performance. Other benefits include higher milk yield, better cell counts and foot health. It also assists in metabolic diseases as well as improving health and weight gain, Agri-Gene said. If used in conjunction with dairy pellets or rations, Fertility Plus should not be used with high selenium products. However, Agri-Gene said most mixes only have 2-5 PPM selenium and, even if levels are twice this, it will be within acceptable limits in most cases. Tel. Agri-Gene on (03) 5722 2666
are getting the most out of their land and investment in centre pivot irrigation. “The Bender160 will allow growers to irrigate areas that were not always
reachable with a standard centre pivot.” Valley Irrigation also offers an exclusive speedup timer function, which comes standard with
both the Bender30 and Bender160. This feature improves a centre pivot’s water application while bending. Tel. (07) 3879 4159
Dairy News AUSTRALIA april, 2012
34 // motoring
New Mule has more kick adam fricker
The trick to driving a Kawasaki
Mule down a near vertical slope is to hold your nerve and keep one foot tickling the brake pedal, while the other foot keeps enough throttle on to engage the CVT transmission. Actually, the 45 degree slope just felt like it was vertical from the passenger seat as Pukekohe, NZ, dealer Craig Brown turned the wheel and sent us over the edge. Unlike its passenger, the Mule didn’t flinch, it just crawled calmly down to the bottom, never breaking traction or feeling like it was going to run away. Then we turned around and went straight up again, effortlessly, the torque pouring on from just above idle. In a dry paddock such as we were in, this exercise was perfectly safe, the Mule demonstrating its stability and neutral balance. On a wet day, no vehicle would tackle the same slope without drama. The 2012 Mule 610 4 x 4 XC (pictured) is the latest evolution of the well-proven Kawasaki Mule range, which still includes the larger 4010. We first drove these vehicles when they launched a few years ago and at the
time was impressed with their ability to go anywhere. Our test Mule this time was the looker of range, in black with 26” Maxxis Bighorn II radial tyres and wider 12” wheels that contribute to the mountain goat ability but also enhance the sportier look of the XC. A comfortable ride is delivered by independent MacPherson strut front suspension with 78mm of travel, and a unit swing axle at the rear with 78.7mm of travel. The 610’s relatively small size, plus rack and pinion steering, make it manoeuvrable and nimble in tight spaces. The engine is a 401cc, air cooled, 4-stroke, OHV, single cylinder thumper set high enough in the chassis to provide good ground clearance and in front of the rear axle for stability. Top speed is governed to 40km/h – a great safety feature if the vehicle is to be used by younger staff or family, and on the farm, 40km/h is plenty. This is not a racing machine, it’s a work vehicle. The transmission is a belt-driven automatic with a Hi-Lo dual-range transfer case, with a lo-range suitable for steep terrain and heavy loads. The 2WD/4WD is easy to use; you’ll only need 2WD for much of the time. Once
The new Kawasaki Mule handles the hills easily and provides stability and balance.
you’re in 4WD and headed into the muck and mire, you’ll have the limitedslip front differential aiding your progress with minimal steering effort, and still have the rear differential lock to call on if you get stuck. The tipping deck, which lifts to reveal the engine, is a useful 1044 x
900mm and has cargo bed capacity of 181kg. The overall load capacity is 420kg. Towing capacity, including trailer, is 420kg. It also has a decent storage bin under the front ‘bonnet’. Capping it off is the roll-over protective structure, which meets all official safety standards and gives nervous pas-
sengers something to hold onto when going over 45 degree drops. We needn’t have worried; the Mule 610 XC is very stable with most of its 458kg weight kept low, and good balance side-to-side and front-to-back. You’d have to try pretty hard to tip it over. Visit www.kawasaki.com.au
Simpson celebrations for Patrol owners Nissan 4WD owners from around
Australia are being invited to a unique Outback Party in Birdsville in July to celebrate the 50th anniversary of the first crossing of the Simpson Desert by a motor vehicle. More than 200 Nissan vehicles, dating from the 1960s to the soon-tobe released V8-engined next-generation Patrol and around 600 Nissan enthusiasts, will converge on the central Australian township over the weekend of July 21-22 for the party, which will be the highlight of a week-long reenactment of the pioneering event of half a century ago. Geologist Reg Sprigg, his wife Griselda and their two young children Marg (then 10) and Doug (aged 7) made their historic Simpson crossing in their short-wheelbase Nissan Patrol G60 in 1962 as part of Spriggs’ search for oil. His successful crossing of the remote desert that contains the world’s longest parallel sand dunes took place just 26 years after Captain Ted Colson with a team of camels became the first non-indigenous person to cross the wilderness. The success of the trip and Sprigg’s later north-to-south crossing opened up the Simpson to legions of Outback adventurers. The 50th Anniversary Simpson Desert Crossing in July this year will
First look at Holden’s new Colorado 7 see Marg and Doug Sprigg retrace their childhood wheeltracks from west to east driving a similar first-generation Nissan Patrol G60 in company with other current Patrol models. Well-known Outback adventurer Pat Callinan is making a film of the historic event, while a next-generation V8-engined Nissan Patrol Y62 model will be amongst the vehicles in the welcoming party in Birdsville. For the Nissan enthusiasts present, the arrival of the Spriggs will be the culmination of a weeklong party. Convoys of Nissan owners will depart from numerous locations around Australia in the week leading up to the culmination of the crossing, arriving and camping in Birdsville by Saturday, July 21. The arrival in Birdsville of the Spriggs and their small vehicle entourage on the Saturday evening will
be the trigger for the main celebrations, with nationally-famous entertainers performing a memorable Outback concert staged at the Birdsville Racecourse. The 50th Anniversary Simpson Desert Crossing is a not-for-profit event that is being heavily subsidised by Nissan, with net proceeds donated to Frontier Services, an organisation established by Royal Flying Doctor Service founder John Flynn 100 years ago to support people living in remote areas of Australia. Because of limited resources in Birdsville, the Simpson Anniversary event is being limited to the first 200 Nissan vehicles. Those interested in being part of this celebration should pre-register their interest at www.patrol50.com.au ahead of the formal opening of registrations in April.
The first images of Holden’s tough new off-roader – the Colorado 7 4WD SUV – in its Chevrolet guise have been released ahead of the global reveal of the production vehicle at the Bangkok International Motor Show in Thailand. The all-new seven-seater Holden Colorado 7, based on the Chevrolet Trailblazer, will be the first heavy-duty 4WD SUV to wear a Holden badge in almost a decade. The Holden Colorado 7 shares its architecture and underpinnings with the new-generation Colorado Light Commercial Vehicle, which arrives in Australia mid-year. Holden executive director sales, John Elsworth, said the growing popularity of SUVs in Australia would ensure the new Colorado 7 had a ready-made fan base when it is launched at the end of 2012.
“Australians are buying more SUVs than ever before, and we’ve seen this demand reflected in the growing popularity of our Series II Captiva range,” Elsworth said. “The Colorado 7 will be a perfect fit for customers looking for the increased packaging flexibility and lifestyle benefits of clever interior storage, seven seats and rugged off-road performance. “Developed to deliver everything Australians could want from a tough 4WD, with coil-sprung five-link rear suspension and a competitive 3-tonne towing capacity, the Colorado 7 will be an impressive addition to our SUV lineup.” The Trailblazer will feature on the Chevrolet stand at the Bangkok International Motor Show from March 28. Holden will release official Colorado 7 product information, specification and pricing details closer to launch.
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