dna 15 june 2011 by Rural News Group

Holstein heifer makes $49,000 at auction Page 15

Slashing mastitis levels Page 25

MF releases mid-range series Page 33

issue 15: june 2011

Same again Fonterra opens season with caution PAGE 3

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DAIRY NEWS AUSTRALIA // june 2011

NEWS This issue

Fonterra opens at $4.65/kg MS

Issue 15: june 2011 SA farmers Barry Clarke and Geoff Hutchinson’s decision to process their own product led to the Fleurieu Milk Company

WA farmer Dale Hanks has maintained milk production despite a severely reduced water allocation.

FONTERRA WILL pay its 1300 suppliers in Victoria and Tasmania an opening price of $4.65/ kilogram milksolids. It is the second successive year the New Zealand company has made the first announcement of the season, after surprising the industry last year when it made its opening bid of $4.36/kg MS in May. Fonterra will be implementing a further milk price increase to eligible suppliers for milk supplied in the current season of 8 cents/kg fat and 20c/kg protein. Milk Supply General Manager Heather Stacy says the company’s average annual price is now around $5.45/kg MS. “This milk price increase represents an additional $17 million for Fonterra’s Victorian and Tasmanian suppliers and will be paid on June 15,” Stacy says. “We’ll conduct our final price review after we’ve closed the 2010/11 season and the final elements of our trading year are locked down. “I am confident that with the extra milk pro-

duced this year, and the ongoing demand for high quality dairy products internationally, we will finish in a strong position.” Despite finishing in a strong position, the company opened the following season with a much lower price. “We are announcing early what we believe to be a sensible opening price, to give farmers ‘line of sight’ as they set their farm budgets for the coming season,” Stacy says. “Fonterra’s pricing for next season reflects our assessment of the current business conditions on global and domestic commodity markets, as well as the current position of the Australian dollar.” Dairy Australia has forecast an average price range of $5.10-$5.50/kg milk solids by season’s end in its 2011 Situation and Outlook report, released last month. Managing director Ian Halliday says the industry’s position has continued to improve with high international commodity prices, the global economic recovery, robust growth in Asia, and

Fonterra’s Heather Stacy

favourable seasonal conditions across most production areas. Production increased in 2010/11 by less than 1% over the previous financial year to deliver close to 9.1 billion litres. The production outlook for 2011/12 is for a gain of 1-2% based on herd growth intentions. DA says there may be some further increase in this forecast if seasonal conditions continue to be favourable in most regions.

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News ��3-15 Opinion ��16-17 Photo: Pip Robinson.

Agribusiness ��18-19 Management ��20-24 Animal Health ��25-29 Machinery & Products ��30-33 motoring ��34

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DAIRY NEWS AUSTRALIA // june 2011

news

Strong global demand expected STRONG RECOVERY in the interna-

tional dairy market this financial year has underpinned prices and will provide a solid foundation for 2011/12. The strong price bounce is due to a combination of good demand from the developing markets – led by China and Russia – and the general weakness of the US currency, according to Dairy Australia. These factors delivered higher farmgate prices to Australian farmers. It’s been a different story for exporters, as the benefits of higher commodity

prices were offset by the strong Australian dollar. These international developments were outlined in Dairy Australia’s Situation and Outlook report, released last month. The annual report analysed a range of factors impacting the dairy industry and pointed to high international commodity prices, the global economic recovery and robust growth in Asia as cause for optimism. However, the Australian dollar is a risk to this price outlook should it continue to strengthen ahead of the cur-

Expect far less price volatility than has been experienced in the past three years. rencies of both Australian competitors and customers. Dairy Australia managing director Ian Halliday says the industry’s position has improved with steady demand growth in key markets such as China and South East Asia. “Despite initial concerns about the effect of the Japanese disasters and Mid-

tries remains. Economic growth and dairy trade will instead be focused on developing countries. The report highlights limited substitution of lower priced vegetable oils and proteins, despite the sustained higher dairy products prices. Rising oil prices have contributed to increased volatility in vegetable oil markets, decreasing the attractiveness of these alternatives and consumers have shown a strong preference and willingness to pay for premium products using dairy-based ingredients.

dle East unrest on dairy consumption, demand for imported product in those regions appears to be increasing. “The international market now appears to be consolidating at relatively high levels, with far less price volatility than has been experienced in the past three years.” However, some economic uncertainty around the US economic recovery and the sovereign debt issues facing some European Union member coun-

Northern Victorian farmers to boost annual production FARMERS IN northern Victoria and the

Chinese demand for WA heifers

tings, but there has been a drop in the Riverina have battled drought for the number mentioning it as their main best part of a decade, but the best sea- challenge – from 39% last year to 29% son in the past 10 has not only restored this year, reflecting on the very strong water allocations and large amount of water storages but confidence as well. It also provides a confidence boost carryover supplies available to farmto the industry, with the region a milk ers.” The national survey also revealed powerhouse when at full strength. Dairy Australia’s recent National that the positive operating conditions Dairy Farmer Survey has revealed for the majority of the industry have not farmers in this region are most likely to translated into a significant increase produce more milk in three years time in confidence levels among Australian than their counterparts in the rest of farmers. Australia. Analyst Joanne Bills says the survey picked up a real sense of a turnaround Manufacturers are actively in the region, despite some major challenges with encouraging increased output flooding in pockets of to fill the region’s factories and northern Victoria. “Farmers are re-starting satisfy strong export demand. in the area and looking to build up their herd numbers with many culling “Cashflows have been slow to imless and retaining more heifers. “Manufacturers are also actively en- prove and the better returns currently couraging increased output to fill the being enjoyed are merely enabling region’s factories and satisfy strong ex- many producers to restore their financial positions following the poor port demand.” Of those farmers surveyed, 53% have returns of the previous two seasons,” increased their herd sizes, with the av- Bills says. “It seems farmers are seekerage herd size now 287 cows. In the ing a more sustained period of reliable coming year, 46% of northern Victori- returns before investing in herd growth an and Riverina farmers expect to milk or infrastructure.” A slight improvement in confidence more cows over the next year, Bills says. “Irrigation remains an ongoing chal- has not translated into stronger produclenge in terms of long term policy set- tion intentions for the next three years.

WA FARMERS have been taking full advantage of ongoing demand for export cattle. This season, in a drought-affected WA, the proportion of heifers sold for export jumped from 6% last year to 26% – with 57% of farms selling export heifers compared to 15% of farms nationally. These results are revealed in Dairy Australia’s 2011 National Dairy Farmer Survey. Dairy Australia analyst Joanne Bills says dairy farmers in the west are in a good position to continue to provide livestock to the Chinese market due to the genetics of their herds. “With China tightening up its pedi-

gree requirements for imported livestock, the large Holstein-Friesians commonly farmed in WA are likely to be in demand,” Bills says. The high numbers of heifers sold for export has helped farmers manage cash flow in the dry seasonal conditions. DA says dairy heifer export data available for the 12 months to February 2011 indicates the total number of animals exported increased by 21% over the previous 12 months. The 76,600 head of exported cattle were valued at $151 million. With the national herd at about 1.6 million cows, live export heifers now account for about 5% of milking cows – a record high level.

China was the largest market for heifers over the last 12 months with 66%, Russia with 15% and Middle Eastern countries with 6%. Indonesia’s share has fallen from 25% last year to 1% this year. Tightening Chinese government regulations are increasing the costs of and access to that country’s heifer business, which could reduce exports later this year. However, this trade is likely to be picked up by strong demand in other markets such as Mexico, Indonesia, Turkey and Korea and Taiwan. While Victoria is the largest source of export dairy heifers in absolute number, the proportion is traditionally highest in WA.

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DAIRY NEWS AUSTRALIA // june 2011

news

Growing divide in dairy states THERE IS a growing divide in the Australian dairy industry between south eastern Australia and Western Australia, northern NSW and Queensland. The larger southern industry-based in Victoria, the Riverina, South Australia and Tasmania – is enjoying arguably the best conditions for a decade with good export demand growth, competition for suppliers and favourable seasonal conditions. This situation is supported by improved milk prices combined with greater feed availability. Southern regions have enjoyed abundant rainfall that has filled water storages servicing irrigation regions, although in some areas this has created production difficulties due to waterlogged pastures and herd health problems. Nevertheless conditions heading into the 2011/12 season are highly favourable with a good home grown feed base, guaranteed access to irrigation water, cows in good condition and continuing export demand. However, in Queensland, northern NSW and WA – where the industry is geared towards fresh milk supply – uncertainty created by plant closures and private milk label discounting is undermining the confidence of farmers. Production in northern regions has also been constrained by flooding and cyclones early in 2011, while WA farmers have been struggling with drought conditions and some uncertainty in the processing sector. Dairy Australia analyst Joanne Bills describes the situation as “almost two industries operating” in DA’s 2011 Situation and Outlook. Given the challenging market and seasonal conditions in WA, only 47% of WA dairy farmers surveyed in the annual National Dairy Farmer Survey were positive about the future. Bill says, in line with most regions’ sentiments, milk price is expected to be the main

Global auction prices rise ANDREW SWALLOW DESPITE INCREASING milk supplies in the

Good conditions like these in south eastern Australia are in stark contrast to WA and flooddamaged Queensland.

future challenge for WA farms in the coming year with 73% of those surveyed nominating the issue. “Reliance on the domestic market in the face of the recent sharp discounting by retailers and the tough seasonal conditions are key contributors to the lower confidence levels,” she says. Towards the end of 2010, WA lost its only dairy cooperative when Challenge Dairy folded, and another processor has since changed hands. “There is likely to be pressure on WA farmgate prices due to retailer discounting, and the challenge of balancing fresh milk demand and supply in the region. “However, there will be a need to stabilise supply in the State following a tough year.” Average production per farm was up by around 7% indicating a strong management response to the dry conditions. Queensland and northern NSW dairy production is down by 7% for the year to March and

20% for the last three months, following the recent floods and Cyclone Yasi. The floods have resulted in 50% of Queensland and northern NSW respondents to the annual survey expecting lower production than would have been the case had flooding not occurred. “Herds have experienced significant animal health issues, but herd size has not been impacted significantly by the extreme weather events, which preserves the potential industry production capacity,” Bills says. “However, the severe financial impact of the floods, cyclones and their aftermath on individual farmers, as well as the deflating impact of the supermarket price cuts, will have many people questioning their ability to regroup and continue in the industry.” Only 9% of survey respondents in Queensland and northern NSW expect their herd sizes to be smaller this year than would have been the case if the flooding had not occurred.

Northern Hemisphere and a good finish to the Southern Hemisphere season, international dairy prices remain well supported by tight inventory levels and solid import demand, says Rabobank in its latest agribusiness review. Global dairy markets appear to have stabilised over the past few months, with most prices set well above last year levels, but below the 2007/08 peaks. Production has continued at strong levels in Australia, with strong import demand still absorbing production. It follows a 4.5% firming of prices overall on Fonterra’s Global Dairy Trade (GDT) platform at the start of the month – the first significant lift in the market since the beginning of March.

Drought in western Europe is limiting EU production and while US output is still growing, the rate of growth has dipped below 2% per month for the first time in more than a year. June 1 saw skim milkpowder surge 12.9% on GDT, reflecting the drought in the EU. Meanwhile whole milk powder slipped 3% overall, to $US 3780/t. The dip was mostly in the near positions, bringing deliveries for three months, and 4-6 months out, virtually back to the 7-9 month contract level of $US3723/t. Australian output this season is predicted to be on par with last year at 9.1 billion litres, though an increase for 2011/12 is predicted. In New Zealand, the 2010/11 season finished with a flourish following the remarkable recovery in milk flows during the second half.

Outlook for commodity exports bright: NAB THE IMPACT of the high Australian dollar on agricultural exports in 2010-11 has been more than trumped by high global prices and strong production, according to a recent National Australia Bank (NAB) report. In fact, NAB’s Agribusiness Report says export earnings for the farm sector have picked up significantly over the past year despite the strength of the Australian dollar. The report ‘Outlook for Agricultural Commodity Exports’ shows that the value of Australian exports in March was up 32.9% on

a year earlier. Similarly, overall export volumes were up, with Balance of Payments data suggesting year on year growth of 4.6% in rural exports for the March quarter. NAB Agribusiness general manager Khan Horne says one of the key concerns coming from the sector has been the impact of the dollar on export prospects. “In some regions and sectors, the impact of an appreciating Australian dollar will certainly hurt export earnings. However, on aggregate, we believe other factors are likely to maintain export margins

in the medium term, such as high commodity prices and lower input costs. Horne says if anything, the Aussie dollar has simply taken some of the icing off the cake. “Global production is ramping up in response to the high prices but stocks for some commodities take more than one season to rebuild, and this will help keep prices historically high.” Also supporting prices is the economic strength in Australia’s major agricultural export destinations. When weighted by exporter

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growth, Australia’s agricultural trading partner GDP growth is expected to expand by 4.2% in 2011, in line with global GDP growth. While prices should remain relatively high, the outlook for export volumes also looks strong. Volumes are closely tied to domestic production and the strong season in Australia has had the greater effect on volumes this year and will likely do so over the coming year NAB forecasts the value of agricultural exports in 2011-12 to reach $32.2 billion, an increase of 3.4% on 2010-11.

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DAIRY NEWS AUSTRALIA // june 2011

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Representing farmers, looking big picture ECHUCA FARMER Tony Marwood has no shortage of additional jobs in his role as Bonlac Supply Company chairman, but the last few months have been busier than most. Fonterra released its opening price for its 1300 Victorian and Tasmanian suppliers, represented by BSC, last month and Marwood was involved in negotiations with the company before this – as well as attending suppliers meetings across both states since. For the second successive year, New Zealandbased Fonterra is the first processor to reveal its opening price, coming out with $4.65/kg milk solids last month. “We’ve had a positive response from our suppliers this year,” Marwood says. “Fonterra communicate well and it gives suppliers a line of site on the season, something to put in their budgets as a starting point. “We received criticism last year for opening too low (at $4.36/kg MS), but this year suppliers have been a lot more understanding. “Last year we bought the price out 10 days too early and were below the Dairy Australia Outlook price, but we’ve opened in their opening bracket this year.” Marwood was elected to the BSC board in 2006, about three months after Fonterra took over, and was appointed chairman in late 2009 replacing Noel Campbell, who guided BSC through its takeover by Fonterra and served eight years as chairman. His first steps towards board membership started when a vacancy appeared in his area on the Bonlac

suppliers’ representative scheme. “I hadn’t thought about it, but someone asked if I wanted to do it. I feel there’s no point in criticising unless you are prepared to get in yourself and try and influence outcomes, so I put my hand up. “You never realise your ability to do something until you do it. I found I was just as capable as anyone else and I enjoy the role, having input into Bonlac and Fonterra.” Marwood has continued completing leadership programs, some run by Dairy Australia, through that time to improve his skill set. BSC does not collaborate with Fonterra on the opening price or subsequent rises, but Marwood says they influence pricing strategies – which lead to the final outcome. “Our role is to ensure the pricing mechanisms introduced are in the farmer and industry interest. We have input into any changes in pricing strategies.” He says it is no use having pricing mechanisms that suit the company but not the farmer. It must enhance farm profitability. “I’m dedicated to making sure our shareholders have good, sustainable businesses. We also provide feedback from our 1500 suppliers. We’re the second largest supplier of milk in the country with 1.3 billion litres.” Marwood also casts his mind to what’s best for the dairy industry as a whole and believes greater efficiencies need to be made to improve farmgate prices. This will require greater cooperation between proc-

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“Efficiencies like that go straight to the bottom line. Australia’s prices were below New Zealand last year and will be again this year.” Marwood strongly advocates transport rat iona l isat ion sees the abo“You never realise your and lition of company ability to do something milk fleets as a great cost cutting until you do it.” measure. However, he says competition for suppliers drier, which would save between processors makes costs, while their ware- the required cooperation house in Hamilton has a a difficult task, but would train line running through produce greater efficienthe guts. They just load it cies if achieved. “There is a competitive up and the product is delivmarket for milk suppliers. ered straight to port. essors, he says. “Every time I head to New Zealand I’m more impressed with what they do. Fonterra’s efficiencies include a 28 tonne an hour

Bonlac Supply Company Chairman Tony Marwood on his Echuca property.

People walk up the driveway offering a cent a litre to a farmer to change companies and people are doing it. “Our industry has been desperate for cooperation for some time. Opportunities are coming up with changes in leadership roles in the industry and we need someone making the best decisions for the industry – not just their company.”

Retired farmers the best solution TONY MARWOOD and his wife, Kris, took over his parents’ 160ha Echuca dairy farm about 10 years ago and now milk 220 cows. They have two daughters, Laura and Emily. Marwood’s parents raised four children on the farm, which was originally 40ha. “Dad always said he bought 30 mongrel Jerseys out of the Echuca saleyards, built a house and paid for it in 10 years. There’s not a hope in hell of doing that these days.” The farm has grown to 160ha with an additional 360ha runoff block. The herd comprises mainly Holsteins with some crossbreds. Marwood says his chairman role takes him away from the farm regularly and although he has always had the support of Kris and his daughters, he has also had to install processes so the farm runs in his absence. After initial teething problems he found the answer in employing retired dairy farmers. “I’ve used blokes who have been retired for a couple of years for three years now. I’m employing my second permanent, retired farm and also use a couple of casuals. “I don’t put an emphasis on five days a week. If they want a week off, or a Friday off for the footy, they just have to let me know. There is flexibility there and that’s why it works well. “If something goes wrong when I’m away, I don’t get 10 phone calls.” Marwood had been keen to employ trainees, believing it was the right thing for the industry, but the process wore him down. “They were always leaving after a while or just weren’t that keen. Some of my best workers were young women, but they would either get pregnant or married. “My current system is working well.”

DAIRY NEWS AUSTRALIA // june 2011

news

Cold winter fuels eastern hay sales A COLD start to winter,

with frosts and water logged paddocks, is fuelling hay sales in eastern states with ample oaten hay to service the demand. Hay producers have been pleased to move stock that has been hard to sell until now and Australian Crop Forecasters (ACF) managing director Ron Storey says prices should remain steady in the short term. “Many dairies are in an enviable position to be able to service their own cows’ fodder requirements with on-farm produced silage and dry cow pasture hay,” Storey says. While there has been rain in the west, he says consistent follow up will now be required and throughout winter to promote growth. Storey says many producers in the southern states believe feeding hay to livestock will continue through until spring, as cold winter temperatures

ple in conjunction with a regular fodder test. “Canola hay can be valuable as part of a ration, and advice from a nutritionist experienced in feeding canola hay should be sought before making purchasing decisions.” ACF says the northern Australian summer crop harvest is winding up with will inhibit pasture growth. ACF reports that sowing of vetch is well underway in the Victorian Wimmera and Mallee and plantings are expected to be similar to previous years while oaten hay sowings are expected to be up to 30% lower across the eastern states. “Canola hay is still available in Western Australia and some aspects need to be considered when feeding it to cows.” He says Nitrate/Nitrite levels in canola hay can be toxic to livestock if too high, but these levels can be tested from a core sam-

only a small percentage of grain crops and about 30% of the cotton crop still to be harvested. The dry period through late April and early May has aided harvest of the later sown summer crop. NSW Sorghum production is estimated at 643,475/t (389,564/t in ‘09/10). Yields are expected to average

3.99 t/ha, which is down on the previous season. Corn production is estimated at 171,088/t with an average yield of 7.4t/ha. Storey says most of the Australian wheat belt has ended up with more than 25mm of rain for May. “In some areas, where there is adequate subsoil moisture, it has been more

than enough, leaving some conditions too wet. “However, mostly it has allowed planting to make good progress with few rain delays and in many regions crops are in and up. “In WA, the Geraldton zone has had good rains early in the month, but inland in the southern zones rains have been light.”

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processor is back on the cards after a shareholding restriction was lifted last month. Warrnambool Cheese and Butter (WCB) has removed a constitutional clause restricting shareholding to 15%. Murray Goulburn already owns 11.43% of WCB shares and has had two takeover bids for the company rejected. Meanwhile, the soon-to-be-listed, Bega Cheese owns 15% of shares in the company after forming a strategic alliance with WCB last year. The lifting of the cap has been welcomed by investors, with WCB shares immediately trading up to $4.89 days after the announcement, just shy of its late 2007 high of $5. WCB chairman Frank Davis says the cap removal would have “absolutely no affect on anything”. He says no entity can acquire more than 20% of WCB’s shares without making an offer – due to corporation law – so “effectively” there is still a cap. The Allansford processor has been in the sights of many processors as a take-over target. Australian analysts believe global dairy giants including Canada’s Saputo could take an interest in the processor. Murray Goulburn and Saputo both bid as much as $4.50 a share for WCB last year, but the takeover bids from both companies were rejected. Instead, WCB sold shares at a discount of between $2.50 and $2.90 to Bega as part of a $37 million equity-raising deal. WCB then established a strategic management group with Bega Cheese to explore and evaluate opportunities to benefit both companies. Bega managing director Barry Irvin subsequently took a place on the WCB board. At the time, WCB said the $37m and other capital management initiatives to release $11.1m would reduce gearing to about 41%. Meanwhile, Victorian milk processor United Dairy Power has been linked to processing plants in Jervois and Murray Bridge, South Australia, is to be sold by National Foods as part of that company’s latest restructure. UDP launched radio advertisements in the state last month seeking milk supply. UDP currently has 130 suppliers in Victoria. No official announcement had been made by the time Dairy News Australia had gone to press.

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DAIRY NEWS AUSTRALIA // june 2011

News: Climate Change

Reducing carbon emissions saves money REDUCING CARBON emissions on-farm means saving money and a new project completed at the Macalister Demonstration Farm (MDF) in Gippsland reveals what savings can be made. The Carbon Ready Dairy Demonstration project identified the source and size of carbon emissions generated by normal operations at the MDF and used this information to develop a carbon emissions reduction plan. Project coordinator Neil Baker says the key is to gather and interpret information in a practical way so farmers can then make informed decisions about their investment in carbon emissions reduction or offset. “Whether you believe in global warming or not, the political momentum is at a point where action will be taken at a national and global scale,” Baker says. “Farmers who ignore this new reality run the risk of being left behind and their business viability threatened.” The calculation of emissions was monitored with the Dairy Greenhouse gas Abatement Strategy (DGAS) calculator available at www.dairyingfortomorrow.com When considering what approach to take for the MDF as part of this review, Baker says the first priority was to protect the immediate viability of the farm business in the face of potential input cost rises. The second priority was to find strategies that will generate the greatest reduction in emissions for the least cost. “Reduction in the use of energy, like electricity or fuel, makes good business sense— with or without a price on carbon emissions – so should always be front of mind,” Baker says. “If there can be savings or productivity gains as a result of any action to reduce emissions then these can be invested in further emission reduction activities and are an important motivator.” A review of electricity use at the farm shows there are three point sources – the dairy, the pump for fixed spray irrigation, and the pumps at the irrigation bore. While power costs at the dairy represent only a small proportion of total production costs, any increase in electricity costs will come directly from the farm profit so Baker says doing nothing is not really an option.

Macalister Demonstration Farm project coordinator Neil Baker has completed an extensive audit on the farm to reduce both carbon emissions and running costs.

vestment in other emission reduction/cost reduction technologies. Feeding and fertiliser strategies were also analysed to determine how to reduce emissions/save costs. For example, one way to deal with the high level of methane production in the rumen is to increase feed conversion efficiency by feeding high quality supplements with pasture. While this increases methane “Whether you believe in global production per cow it means fewer warming or not, political cows can be milked for the same production. momentum means action will The overall farm strategy be taken at a national scale.” achieved a total farm emission reduction of 8.45%, which is in excess of the national target. “Whilst all of these actions reduce emisin the plate cooler was too low. It suggested the dairy pressure pump should be replaced sions they also generate cost savings and with a dedicated pump matched to the task mean an investment in the next 18 months will all be paid for by the 2020 target date,” that delivers high flow under low pressure. All hot water pipes should be insulated Baker says. For a free copy of the report, contact Neil and hot water systems only run during offpeak hours to generate the savings for in- Baker at neilbaker@aapt.net.au AgVet Projects, from Warragul, conducted an energy audit for the dairy and highlighted that milk cooling and water heating are the biggest energy users and should be the focus of the energy saving plan. The audit also showed that the plate cooler was inefficient, as the water flow rate

Farmers should prepare for climate variability FARMERS SHOULD learn more

about ways to farm against a background of increasing climate variability in order to protect their livelihood. Rod Eldridge, from the Department of Primary Industries (DPI) Colac, Victoria, says ignoring climate variability and climate change and hoping it goes away is like putting your head in the sand. Eldridge says while there is inherent variability in seasonal and annual rainfall, as seen over the past few years, there is also evidence there are significant trends and changes in the rainfall patterns and temperatures over the longer term that effect farming. He told farmers at a recent workshop that there was a 90% certainty in scientific circles that temperatures were going up due to the impact of greenhouse gas pollution. “According to the Intergovernmental Panel on Climate Change the link between greenhouse gases and climate change is “very likely”, which implies a 90% certainty. “Perhaps the only significant uncertainty is how much the temperature change will be and how this will affect rainfall.” Eldridge says increased seasonal and annual variability of rainfall mixed with a warmer and potentially drier climate could affect the forage base, water resources, herd health and the spread of weeds and pests. The changing climate could also have significant impacts on farm feed base, including dry matter production, the length of growing seasons, pasture persistence and establishment. He says farmers should be prepared for more extreme weather events, higher humidity, changes to rainfall patterns, and heat stress, diseases and other

problems with their herds, he says. “In fact we have seen significant extremes recently in 2006 and 2010, and think about all the quite different problems associated with each of those years.” Eldridge says while predictions about the effects of greenhouse gases on temperature are reasonably good, the effect on rain was harder to predict as rainfall is the result of a number of factors, involving the atmosphere and the oceans and the relationship between them is quite complex. However, he says there has been a drying trend for more than 30 years and farmers are starting to recognise the risks and impacts of this and learn to farm with it. Eldridge showed the spikes and troughs in global temperatures over the past 400,000 years and how we are presently at, or near, the top of a spike. “Based on natural variability over the past 400,000 years, our temperature should be heading down at some stage, and we should be entering a cooling period. But we’re not and the projections are it’s going to get warmer with increased greenhouse gas concentrations. “Only the combination of both natural and human greenhouse gas contribution mirrors well with the observed temperature increases over the past 100 years.” Eldridge outlined the various drivers of weather and climate and provided statistics showing five-year rolling averages for rainfall in the Cobden area had declined markedly since the mid-1990s. “These trends are similar across much of south eastern Australia, with a significant reduction in autumn, winter, and recently, spring rainfall.”

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Consider agriculture in ETS by 2015 THE FEDERAL Government’s chief climate change advisor, Professor Ross Garnaut believes a review of whether agricultural emissions are included in a trading scheme should be conducted in 2015. Garnaut wrote in his Climate Change Review update, released last month, this would coincide with the proposed date for agriculture’s inclusion in New Zealand scheme. “The Independent Committee should undertake this review in 2015 and examine the barriers to full coverage of the land sectors in the emissions trading scheme,” Garnaut wrote. “The review should examine experience in measuring and administering offsets for land-based emissions within the Carbon Farming Initiative.” The agriculture industry’s inclusion in an ETS has not been canvassed until now because of the difficulty of measuring its carbon and methane output. However, Garnaut has previously said agriculture should be included

in an Australian carbon tax to avoid short-changing farmers. Garnaut says the rural sector holds tremendous opportunities to mitigate the emissions problem and improve the economic prospects for farmers. He believes a carbon-pricing scheme would have to eventually cover the Australian land sector, with the carbon price applying to biosequestration. Federal Nationals leader Warren Truss says farm leaders had been assured that agriculture would be permanently excluded from any future ETS and that voluntary offset trading measures would be available. “Farmers are now squarely in this government’s carbon tax sights,” Truss says. The National Farmers Federation says the release of Garnaut’s final climate change report has not eased its concerns about agriculture’s competitiveness under the Government’s proposed carbon tax. NFF President Jock Laurie says the Garnaut Review acknowledges that farmers are naturally anxious

NZ Labour wants ag in ETS sooner SUDESH KISSUN AND PETER BURKE Fonterra New Zealand has

told NZ’s opposition Labour party that hastening agriculture’s inclusion in the Emissions Trading Scheme is like “shooting ourselves in the foot”. The co-op met with Labour’s agriculture spokesman Damien O’Connor last week after the party stung the farming sector by announcing it will bring agriculture into the ETS two years early in 2013 and use the $800 million raised to fund five years worth of tax breaks on research and development. Fonterra chief executive Andrew Ferrier says Labour’s ETS policy is “all politics”. He says the co-op told Labour it disagreed with the policy. “We told Labour it will make your strongest industry less competitive in the global market,” he told Dairy News. “We should not even think of including agriculture in ETS, leave alone bringing it forward by two years, until there is global agreement with our trading partners. “Bringing agriculture into ETS unilaterally is shooting ourselves in the foot.” The co-op has also rejected Labour’s claim taxpayers are subsidising farmers through the current ETS. It points out that Fonterra farmers are be-

ing taxed on carbon emissions through its processing facilities. The co-op’s annual ETS bill is $40 million which equates to $3500/shareholder. Ferrier says the ETS bill comes directly out of the payout. Analysts say Labour, trailing badly in opinion polls before the November 26 election, is trying to attract urban votes. Ferrier agrees saying it’s an election year gimmick. “Its election year and everyone is trying to get sound bites on what might play out with voters in a popular way,” he says. “This is not driven by consumers, but by the political process.” The Government has also slammed Labour and has called it ETS policy the “politics of envy”. Agriculture Minister David Carter told Dairy News the policy won’t earn Labour any votes. He says most New Zealanders realise if the farmers are doing well that feeds back to the whole economy. “In other words, every New Zealander ultimately benefits,” he says. Carter also rubbished Labour’s claim that under the present ETS farmers are being subsidised by other taxpayers. “What the ETS attempts to do is to change the behaviour of any emitters. Over time, as we find solutions for farmers to address methane emissions, the ETS will give them signals to change,” he says.

about the costs they will bear as a consequence of the tax. “Garnaut says that farmers, more so than most other Australians, will face higher fuel and transport costs under the proposed tax,” Laurie says. “It is these costs that will add enormous expenses back into our farm businesses. Laurie says fuel, transport and processing costs are the major areas of concern for the agricultural sector, as costs incurred by other businesses in the supply chain will simply be passed on to farmers at the end of the line. “Professor Garnaut has challenged industry to embrace a carbon price as an economy-wide reform, as it has done in the past through issues such as the tariff reforms in the 1980s and 90s. “The NFF has never been shy of reforms that aim to bolster agricultural productivity and improve the position of Australian farmers in international markets, but we draw the line at reforms that threaten to add unsustainable costs directly onto Australian farms.”

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Curbing dairy emissions a question of diet FEEDING DAIRY cows oilseeds or feeds high in

fat substantially curbs emissions of a powerful greenhouse gas, according to new research by the Department of Primary Industries, Victoria. Scientists from DPI’s dairy facility at Ellinbank, Gippsland, have found that for every 1% increase in dietary fat, methane emissions are reduced by 3.5%. DPI Dairy Nutrition Scientist Dr Peter Moate says the research also found that adding the extra fats did not restrict feed intake, milk production or fat and protein yields. Moate says researchers fed dairy cows supplements of either: crushed wheat (which is low in fat), cold-pressed canola, hominy meal or a blend of hominy meal and cold-pressed canola (all high-fat). The cows were housed in Australia’s only respiration chambers for dairy cows at Ellinbank and their daily methane emissions measured. The choice of feeds was based on products already available to Australia’s dairy herds. “These are by-products from other food sources, such as beer-making or processing of edible oils. From a total greenhouse gas life-cycle perspective, they are particularly attractive.” A typical dairy cow produces 400-500 grams of methane a day. Scientists are concentrating on methane because it has global warming potential 21 times greater than carbon dioxide. “In a carbon-constrained world, if pricing structures change or emissions targets become mandatory, dairy farmers will be forearmed with information they can use to reduce methane emissions from their cattle,” Moate says. The nutrition research at DPI Ellinbank is part of a range of research programs funded by DPI to reduce greenhouse gas emissions and develop adaptation strategies for food and fibre producers.

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DAIRY NEWS AUSTRALIA // june 2011

news: murray-Darling Basin

Basin report wins rural praise ALL NON-strategic water buybacks in

tours have not canvassed the Basin residents the Murray Darling Basin should be put on to the same extent as the Windsor-led Senate hold, according to the Tony Windsor-led in- Inquiry. Its report has been much better received by quiry into the Murray-Darling Basin Plan. The Senate Regional Australia committee, irrigation groups, farm groups and residents chaired by independent MP Tony Windsor, of regional towns in the Basin dependent on tabled its 300-page report on the inquiry into agricultural income. This is in stark contrast to the reception the the impact of the Murray-Darling Basin Plan on regional Australia this month. It compris- Guide to the Proposed Basin Plan, released by es 21 recommendations, including establish- the MDBA last year received. It recommended ing a national water fund to invest in water water cutbacks of between 3000 and 4000 megalitres in the Murray Darling system to saving projects. The inquiry was set up after anger over ensure what it said would be a sustainable rivthe Guide to the Murray Darling Basin Plan er system and that prompted those protests. Windsor’s commitwas released last year. tee was set up to reThe inquiry’s Senate view that process and Committee members ensure more groups toured irrigation com- The government should were consulted. munities and received consider other options Knowles says the rewritten submissions. vised report will be Its final report before the “blunt released when he is recommends all measure” of cutting water satisfied and would non-strategic water not commit to a time, buybacks be put on entitlements. other than saying hold and no mining mid-year. projects be approved Once that plan is released there is a manin the basin if they have an adverse impact on water resources. The report also says priority datory 16-week period for it to gather more consultation from communities throughout should be given to water savings measures. It says that all the communities the com- the Basin. The Federal Government remains commitmittee visited across the Murray Darling Basin had ideas on how more water could be ted to its deadline of releasing the final Basin found and saved. It recommends that the Gov- plan legislation in Parliament early next year. Meanwhile, the Wentworth Group of Conernment and the authority should consider these options before the “blunt measure” of cerned Scientists has withdrawn from the cutting back water entitlements to producers. process, saying it cannot be part of a plan, The report also says the Government should which it says will fail to fix the river system establish a national water fund to invest in and waste billions of taxpayer dollars. The water saving projects and that a Government- group says no less than 4000 gigalitres must owned corporation – including state, territo- be returned to the Murray-Darling river system in order to fix it. However, it believes this ry and the Federal Government manage this. Murray Darling Basin Authority chair- will not happen under the draft plan. The group says the MDBA is now aiming to man Craig Knowles will meet with Windsor before the Authority’s revised Basin plan is return less than 3000 gigalitres to the system completed. Knowles has also been meeting following angry protests by irrigators when with farmers and local stakeholders in Ba- the initial figures and cuts to water entitlesin communities. However, his whistle stop ments were released last year.

Farmers protested at regional meetings held to discuss the original Guide to the Murray Darling Basin plan last year.

Stop water buybacks: Dairy industry THE AUSTRALIAN dairy industry has urged the Federal Government to suspend non-strategic water buybacks immediately, as recommended by the Windsor inquiry. It also called on Federal Water Minister Tony Burke to act on its recommendations to improve the performance of his department, with more funding of water-saving projects. Australian Dairy Council director Adrian Drury says the Basin Plan needs to promote regional economic development and growth instead of focussing on simply encouraging people to leave farming. Drury says the dairy industry supports the inquiry’s call to: • Focus greater investment in on and offfarm water saving projects. • Develop localised and targeted structural adjustment packages and localised economic development plans supported by workforce development and training packages. • Focus greater investment into R&D to improve irrigation efficiency. • Improve the data on groundwater availability, use and connectivity to

The Windsor inquiry has told Federal Water Minister Tony Burke to improve the performance of his department. surface water. • Apply greater rigour to the assumptions underpinning the proposed sustainable diversion limits. Drury says the Government’s move to smaller, rolling rounds of tenders for buybacks earlier this year was effectively just more of the same approach taken during the last few years. “The Government should limit itself to strategic purchases linked directly to watersaving infrastructure projects or community-led decommissioning of channels or districts.” The National Farmers’ Federation has also thrown its support behind the Windsor committee’s report. NFF President Jock Lau-

rie says he is pleased with recommendations that encourage investment in water saving projects, infrastructure and research to improve irrigation efficiencies. However, Laurie says the NFF is disappointed that the Committee didn’t include suggestions as to what a balanced Basin Plan should look like. “The Committee met with residents in the affected communities and heard their concerns, and is in an ideal position to advise the MDBA on what the balance should be. He says Basin communities, in particular, will be relieved the report recommends an open and transparent consultation process with affected communities, with opportunities for contributions by all, including those who have local knowledge and expertise. “The crucial element now is for the Government and the MDBA to deliver a balanced Murray-Darling Basin Plan and adopt the recommendations made by the Committee, to ensure a fair and equitable outcome for all. “We eagerly await responses from both the Federal Government and the MDBA.”

Water buybacks a must: Conservation Foundation TONY WINDSON’S recom-

mendation to stop non-strategic water buybacks has been opposed by the Australian Conservation Foundation. ACF spokesperson Dr Arlene Harriss-Buchan says it welcomes the Murray-Darling Basin report, but is concerned about the committee’s suggestion that voluntary water buybacks be re-assessed. “Tony Windsor’s inquiry has importantly reaffirmed bipartisan commitment to water reform and the implementation of a good Basin Plan,” Harriss-Buchan says. “But we are very concerned by the suggestion that the successful and effective program of voluntary water buybacks should be suspended. She claims that voluntary buybacks return real water to the environment and provide

real benefits for taxpayers’ investment. “The efficiency and effectiveness of the voluntary buyback program has been acknowledged by the National Audit Office. “The report and the comments by Mr Windsor and other members of the committee make it clear they understand that healthy communities depend on healthy rivers and that for rivers to return to health, the environment needs more water. Harriss-Buchan says the brakes should not be put on the voluntary buyback scheme. “ACF urges the Government to reject any moves to slow down or stop the successful and effective program of voluntary buybacks of water entitlements.”

DAIRY NEWS AUSTRALIA // june 2011

news

World demand to maintain prices INCREASING WORLD demand for dairy products and flat global supply mean historically high dairy prices are here to stay, according to National Australia Bank (NAB). The bank’s head of Agribusiness in southern Australia, Neil Findlay, told last month’s United Dairyfarmers of Victorian conference that the outlook for dairy is bright in terms of both production and price. “NAB is forecasting a slight fall in the

weighted-average dairy price in 2011-12, down from its recent peak,” Findlay says. “However, the predicted June 2012 price of $US4450/tonne is still almost 40% higher than the average over the past decade. He says a rapid correction appears unlikely, because much of the increased production in the northern hemisphere in response to the prices is being absorbed through rising consumption. “Emerging market economies, particu-

larly China, are going to continue to play a key role in keeping prices high – they are likely to contribute more than 60% of global growth in 2011-12.” Reflecting robust export demand, southern Australian farmgate prices are also expected to remain high in 2011-12. “Farmers in southern regions should expect improved prices through 201112, and this is evident as processors announce opening prices across Victoria and Tasmania,” Findlay says.

“In contrast, downward pressure is likely to be exerted on farmgate prices across the northern regions and Western Australia, where production still exceeds processor demand. He adds that the impact of the high Australian dollar is starting to be felt across the dairy export sector. “NAB expects the AUD to remain supported over the near term, although it is anticipated to weaken from around mid 2011-12.”

Findlay says while the outlook for dairy is bright in terms of price and production, confidence is still somewhat tentative as the industry emerges from a challenging period. “Rising input costs due to drought, plus declining farmgate prices saw average profits decline significantly in 2009-10. “While they have bounced back in 2010-11, at least another decent season is required before we see any significant ramping up of capacity and production.”

Weather presenter Jane Bunn gave Timboon farmer Nick Renyard and other farmers a crash course in how to decipher weather patterns.

Interpreting weather forecasts Rain is driven by continuous stratiform clouds, is consistent and covers a large area. Showers came from puffy cumuliform clouds and are “hit and miss” in any area, she says. Farmers were told to expect winds to travel anticlockwise around high pressure and clockwise around a low. “The terrain around your property will influence your conditions,” Bunn says. She says weather forecasts are generally useful for about seven days out. “Beyond that no one can tell you specifically what will happen on a day-today basis. It is not an exact science and probably never will be.” Bunn says there is a certain level of natural variability in the climate, which is chaotic and unpredictable. “We put all the relevant information into advanced computer system models, but the information is an approximation.” Thunderstorms are most difficult to predict, she added.

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EVER WONDERED what was the difference between “isolated” and “scattered” showers? Cobden district farmers now know after attending a ‘Milk from Moisture’ workshop last month. Meteorologist and WIN News weather presenter Jane Bunn helped farmers, and other community members, improve their understanding of weather conditions with her presentation about the different types of weather and how forecasts are devised. Bunn completed a Bachelor of Science at Monash University in 2005, majoring in mathematics and atmospheric science. In 2008, she joined The Weather Channel as a morning meteorologist before taking up her position with Win News. Bunn says farmers would benefit from knowing how to interpret weather forecasts. “For example, isolated showers generally means just one, maybe two showers, while scattered showers indicated there could be plenty,” she says.

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DAIRY NEWS AUSTRALIA // june 2011

news

Senate delays milk wars report - again AUSTRALIAN DAIRY Farmers is disappointed a Senate

committee has again deferred its report on how the supermarket milk price wars are affecting the dairy industry. The committee released a second interim report last month and won’t release its final report until October 1. ADF vice-president Adrian Drury says the committee should have made strong recommendations by now. “The problem we have is that it’s not and it’s never going to be an immediate impact on dairy farmers, it’s always the longer term, so the longer term aspect is where the problem is,” he says. “So the Senate inquiry, rather than just coming out with a strong recommendation that Coles has to worry about the sustainability of the industry, they’re just going to undertake a watching brief, which is a bit disappointing.” Drury says Coles needed to be watched “like hawks”. “It is important the Senate Committee will be keeping an eye on the duration of the Down Down campaign and

the outcome of renegotiated contracts with processors and the impacts on farmgate prices.” However, Drury says Coles has repeatedly refused to rule out dropping prices for processors and farmers in future contracts. “The Senate Committee’s report highlights numerous examples of Coles’ being disingenuous, Coles has repeatedly refused stretching the truth and showing a to rule out dropping prices distinct lack of transparency.” Queensland Dairyfarmers’ for processors and farmers in Organisation President Brian future contracts. Tessmann says the Senate’s call for more time to assess the full impact of the price cuts does not help farmers. “How hard do farm margins need to be squeezed, and how many farmers have to call it quits, before we get action to prevent more farmers from becoming casualties of this Coles’ lead milk price war?”

However, Tessmann acknowledges the effort of the Senate committee and the fact that it has poured through numerous submissions and hearings on a complex issue. “We also greatly appreciate the efforts of Senators Xenophon, Williams, Milne and Heffernan in calling for interim actions.” The four Senators added comments to the interim report, saying the benefits of the milk price war will inevitably be short-lived and could well result, not only in higher prices and less choice for consumers in the longer term, but also significant and irrevocable damage to Australia’s dairy industry. Senator Xenophon, who is on the committee, received support from the aforementioned Senators in calling for interim measures to protect farmers now, while the Senate constructs a solution for the longer term. The QDO has presented a series of recommendations to the Senate Inquiry, including the need for a mandatory Code of Conduct headed by a Ombudsman that can ensure that contracts, prices and supply conditions are sustainable; strengthening legislation to prevent future cases of predatory pricing and deceptive and misleading conduct; and requesting that the ACCC investigate Coles. Coles Managing Director Ian McLeod issued a statement saying the Senate’s second interim report into milk pricing acknowledges the customer benefit of lower milk prices – and that such benefits should not be dismissed lightly. “The Commonwealth Treasury and the ACCC have both subsequently said that Coles’ actions have done nothing to farm-gate prices in the short-term and will not damage the long-term sustainability of the dairy industry,” McLeod says.

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WESFARMERS HAS rejected a plea from a group of shareholders to put an end to Coles’ cut-price milk and dairy campaign. Wesfarmers blocked a move by the shareholders to force a special general meeting. Signatures of the shareholders to request the meeting were gathered by Australian Dairy Farmers. The letter sent to Wesfarmers chairman Bob Every sought an extraordinary general meeting of the company to explain Coles’ pricing strategy on milk and other dairy products and how this is consistent with the origins, values and corporate social responsibility of the company; and also asked it to stop the Coles milk and dairy price reductions. ADF vice-president Adrian Drury says Wesfarmers’ refusal showed no respect for its shareholders and total disregard for dairy farmers. “Instead of allowing its shareholders to ask questions and express their views, Wesfarmers called in its lawyers to block any

free discussion of Coles’ cutthroat campaign,” Drury says. “Wesfarmers responded to the shareholders’ call for a meeting by saying ‘the Directors have considered your request and decline to call the meeting’ on ‘the basis that the proposed resolution relates to management matters’. “Wesfarmers, a company whose origins lie with farmers, have missed an opportunity to be true to their roots and show leadership on this issue. “They have missed the chance to explain to farmers and their families why they are letting Coles get away with its tactics.” Drury says Coles has not been upfront with the public about its tactics and the impact of discount milk campaign on the Australian dairy industry. “Now its parent company, Wesfarmers, is joining the strategy to shut down discussion. It’s extreme arrogance to act as though they are not answerable to shareholders or anyone else.”

DAIRY NEWS AUSTRALIA // june 2011

news

Intervention won’t stop supermarkets THE HEAD of the UK’s largest dairy lobby group says political intervention is not going to solve supermarket discounting. Jim Begg, the directorgeneral of Dairy UK – which represents farmers, dairy co-operatives, dairy manufacturers, bottle milk buyers and milkmen – spoke to farmers in Queensland and NSW last month. He says that UK farmers are also facing an unsustainable cost price squeeze from the major supermarkets. Begg says political intervention is not going to solve the problem at least in the short term. “Legislative routes are more time consuming, there is not even unanimous support that they are the way forward,” Begg told ABC Radio. “In fact, in the UK and other parts of the EU, the industry has a preference for free market principles and is opposed to regulation.” Begg says the industry needs to get consumers on board and buying the branded products and modified milks. He says in the UK processors, retailers and farmers are working jointly together and the pricing arrangements have been generally accepted by dairy farmers. “They are never happy about the price, of course, but they generally accept the principle and they way it actually works in practice.” Queensland Dairyfarmers Organisation president Brian Tessmann says there are real messages for consumers that can be drawn from the shopping experience in Europe.

“If you’re buying milk in parts of Europe, you need a search party or the CIA to find fresh milk,” Tessmann says. “The average consumer is stranded if they’re looking for fresh milk for their cornflakes in countries like Spain and Belgium.” He says in parts of the UK, branded milk is almost as rare, and has been forced from prominence in supermarket fridges by retail giants such as Tesco. “Coles is using similar tactics here in Australia,” Tessmann says. “Australian consumers need to be aware that the current price war here is having the same genesis as the current problems confronting European dairy producers.” According to a Dairy UK White Paper, because of the sheer volume of milk purchased by Tesco, the farm gate price set by this retailer is seen by many as setting the benchmark for the industry. With Australia having even less supermarket competition than in the UK, Tessmann says there is cause for concern for both farmers and shoppers. “We are already seeing the impact of the price-war at the farm gate, right now, as processor milk brands sales have been attacked by unsustainably discounted supermarket store brands. “The dairy farmers that are here today have the evidence of the impact on their current milk cheques, which are lower in value. “For shoppers, it could mean reduced choice in the long run and rising prices for milk, which is exactly what has happened in the UK.”

Beaudesert farmer Wally Holcombe with Dairy UK Director-General Jim Begg and Queensland Dairyfarmers’ Organisation president Brian Tessmann.

The dairy industry needs to get consumers on board and buying branded milk.

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Jersey cow sells for $21,100 THE HIGHEST price paid

for a Jersey cow in 30 years was reached at the recent Kaarmona Silver Edition Sale at Kaarimba, in northern Victoria. Top price of $21,100 was paid for Kaarmona Parade Marie 67, a rising threeyear-old that had placed second in the two years in milk category at International Dairy Week in January. The cow had just classified VG 88 (max) and is due in August to T-Bone. The winning bidders were Roger, Helen and Melissa Perrett of Rye Val-

ley Jerseys, Kongwak in South Gippsland. In all, 49 lots averaged $4354, with 25 Jerseys averaging $4488 and 24 Holsteins averaging $4215. It was a grand result for Kaarmona principals Graeme and Rohan Sprunt, based at Wunghnu, north of Shepparton, Vic. The next high of $9000 was paid for the Holstein, Kaarmona Planet Carly 53 (ET), freshly calved and from a Shottle dam. She sold to Inverwood Holsteins, Inverloch, Vic. Following at $8500 was

Kaarmona Bullbar Carly 4th (ET) VG 86, purchased by John Raeside, Timboon, who also selected a Jersey, Kaarmona Action Marie 74, a yearling backed by three generations of EX92 dams, at $5800. Jamerri Holsteins, Benalla, paid $8000 for Kaarmona Ladino O’Rain 2 VG88. R.Zanders, Kialla, paid $7500 for Kaarmona B Browser Noni 2 (ET), a granddaughter of the well known Page House Shottle Noni. Agents were Dairy Livestock Services.

Buyers push Woodlawn Holsteins to $16,200 THE FLANAGAN family’s Woodlawn Holstein cows sold to $16,200 at their sale at Finley, NSW, last month. Top price was paid by K&S Whatman, Shevron Holsteins, Cobram, for Woodlawn Ladino Liberty VG (Imp ET Can). This five-year-old was close to calving to Steady and is a full sister to Rockymountain Talent Licorice VG89. The same buyers also bought Woodlawn Pat Mawsquaw, a VG88 Altapat at $8000. The first lot of the sale, Woodlawn Gold Delight 3901 (ET), a VG 88 4-year-old that had won the dry three-four-year-old class at this year’s International Dairy Week, sold for $9500 to GK Turner. Adam Wright of Bunyip paid third sale top of $9000 for Barkly Toystory Ashlyn (ET) VG 85, a member of the Tri Day Ashlyn EX 96 family. Western Point Partnership of Jancourt, selected the classy Red and White heifer Lothlorien Red Rose, a Rampage Red from a VG Durham out of a VG87 full sister to Talent, she sold at $8250. Local breeders M&P Flemming paid $8000 for Woodlawn Talent Wendy 3720, recently classified EX with a 94 point udder. Mackerdoo Pastoral, Finley, bought Woodlawn Talent Playgirl 179 VG 88 at $7000. In all, 80 Holsteins averaged $4397 – including 63 cows at $4480, four joined heifers at $4962, seven unjoined heifers at $4357 and six bulls at $3200. Buyers were from all parts of Victoria, Tas and NSW. Dairy Livestock Services were agents.

West Gippsland breeders D and E Louden of Arrowstar Holsteins, Modella, paid the sale top of $8000 for the imported ET heifer Kelbro Sanchez Robin at the Kelbro Holsteins sale. The yearling is from the VG 88 cow Lavender Talent Red Robin. Second top of $5250 was paid by P.Price, Leongatha, for Paravale Ladino Prue VG 89 – a maximum score five-year-old backed by seven generations of EX and VG dams. Northern Victorian buyers R&T Wishart selected several lots including Kelbro Roumare Ruby, backed by seven generations of VG dams, for $3750, and Barkly Roylane Jupitor VG 87 for $3400. In all, 65 registered cows averaged $1816 and 8 unjoined heifers averaged $1812. DLS were selling agents.

Western Special Sale

Fowles Dispersal Sale

The Davis family, Western Point Partnership, Jancourt, Vic, and McNamara Dairying, Larpent, Vic, combined to offer a catalogue of exceptional freshly calved and close to calving heifers backed by decades of AI breeding. Western Point kicked the sale off with 34, March-April calved heifers – topping at $6000 for a Juror Ford daughter. Other top prices for the Davis entries included $5500 for a Final Cut registered heifer from the Rockridge Sharlene family, $5250 each for a registered Donante from the Clarissa family and a fancy Toystory from a Lheros dam,

Northern Victorian farmers Wayne and Nicole Fowles, Invergordon, staged their dispersal sale on property on June 1. The sale top of $3500 was paid for a fiveyear-old cow from an Integrity dam and equal second top of $3000 was paid for a five-year-old Donor Cow. Both purchased by Comidah partnership. Equal second top of $3000 was a fouryear-old Pegase cow to Tim Hore of Leitchville, who bought 40 cows. In all, 146 Grade Holstein cows averaged $2009 while 24 Holsteins and crossbred spring calving heifers averaged $1777.

$5200 for a correct Red heifer by Hooter and $5000 for an Alta Baxter 2-year-old. McNamara Dairying, who have an 1100 cow herd, sold 46 freshly-calved heifers, along with 47 joined heifers. J Raeside, Timboon, paid top price of $6500 for a twoyear-old Final Cut from a Lordpres dam and second top price of $5500 for a calved Grandprix from a Roy dam. A calved Shottle from an Alta Ice sold at $5000 and an Igniter sold at $5000. In all, Western Point averaged $4163 for 34 milking heifers, while McNamara Dairying averaged $3670 for 46 milking heifers and $3200 for 47 joined heifers. Selling agents were Charles Stewart & Co and DLS.

Kelbro Holsteins

DAIRY NEWS AUSTRALIA // june 2011

news

Australasian record set at Blue Ribbon sale AN AUSTRALIASIAN

Bluechip Dundee Betsyann 2-ET (a show heifer from record price of $49,000 a VG87 Shottle and EX92 was set for a 10-month-old Holstein at the Blue Ribbon grand dam that had won best udder of class at II sale in Victoria, last International Dairy Week) month. for $17,000. Buyers from throughout They also bought the Australia and New Zealand winning six-year-old from converged at Zeerust, IDW this year, Barkly north of Shepparton, Ladino Betsyann EX92, where Dean and Dianna for $15,000; a former Malcolm offered 100 head All-Australian winner in a sale, which averaged Bluechip Dundee Josie and $6408 and grossed Bluechip Goldwyn Noni (a $627,950. maternal sister to the now Buyers from the US and famous Page House Shottle New Zealand were among Noni). the new owners. The Long Lanes Holstein Lot 12, Bluechip Jasper herd from the Atherton Rae-RC (Imp-ET US) Tablelands, in North made the record price for Queensland, sold Long an unjoined heifer. The July 2010-born Jasper daughter is a red carrier, backed by seven The 100 head averaged generations EX, including her $6408 and grossed dam Scientific $627,950 with sales Sweetie Rae ET to NZ, the US and EX-92-2E-USA. Rae is a member throughout Australia. of the world famous Roxy family. She was Lanes Talent Butter at offered by Bluechip and $17,500 to the partnership WWS Australia and of Avonlea and Yarrunga she was bought by local Farms, Five Ways, Victoria breeder Keith Petersen, and Finley, NSW. Dundee Holsteins, Talent Butter is the Girgarre. Petersen says he has visited Bluechip several daughter of Fairvale Morty Butter 119 VG, which the times since Rae was born, Hartins bought at the watched her develop and inaugural Bluechip Sale in was excited to be taking 2009 for $8000. her home to his operation. Vendor Dean Malcolm The second top price was says the atmosphere was bought by a US and New exciting and to sell to the Zealand-led syndicate. US, New Zealand and every Bluechip Goldwyn dairy state in Australia Paradise (ET), a 13-monthhas been gratifying. He is old granddaughter of IDW considering making the Grand Champion Dryfield sale an annual event, with Dundee Paradise (imp ET), slightly lesser numbers and was sold for $27,000. multi-vendor inclusion. Cohuna breeder Corra “It wouldn’t be as many Lea Holsteins, owned by lots if we sold annually Leigh Prout, jumped early and we would invite our buying the first two lots. partners or people that Bluechip Finalcut Queen have bought from us before VG89 (max), a noted show to be involved if they’d like cow with eight generations to be. EX and VG cost him “We also like to keep $20,000. His second buy trying different things to was a cow he bred, Corra keep ahead of the game, Lea QS Fame July. She was so we’d run it slightly also the highest classified differently next time. Holstein ever to be sold We may even consider at auction in Australia at including an additional EX94. She made $16,000. breed. We haven’t The Woodside Park formalised our thinking stud of Bruce McIntosh yet, but we’re definitely and family, at Berry, NSW, turning concepts over.” bought four lots including

Top price of $49,000 was paid for 10-month-old Bluechip Jasper Rae-RC (Imp-ET US). Jasper Rae is a red carrier, backed by seven generations EX, including her dam Scientific Sweetie Rae ET EX-92-2E-USA .

Photo: Pip Robinson.

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DAIRY NEWS AUSTRALIA // june 2011

opinion Ruminating

editorial

Early season prices mask big picture

milking it...

too much. As long as he can shoot from the lip and retire to his far north Queensland seat of a night, he’ll be happy.

Cheers to that AUSTRALIAN BEER drinkers are selflessly

Katter to ride to the rescue, we think... SOME CALL him a man of the people, some a maverick, and some much, much worse. Federal independent MP Bob Katter has launched Katter’s Australian Party, which is looking for state and federal election candidates. Among other pet causes, like increasing the use of ethanol fuel, Katter says the party will push for more support for the dairy industry. Katter has been vocal about the devastating effects of the supermarket duopoly and Coles’ campaign of discounted milk. One of his biggest supporters so far is Queensland premier Anna Bligh, who has already said the launch of the new party shows the state’s rural constituents are unhappy with the Liberal National coalition. We think she’s right. Katter will only split the conservative vote and make it harder for the state coalition to wrest control back from Bligh. We also think this won’t bother Katter

helping scientists in their bid to cut the methane emissions of cows. Victorian research shows that modifying the diet of dairy cows with feed supplements such as brewers’ grains, a byproduct of beer-making, cut cows’ methane emissions. The research shows that for every 1% increase in fat in the diet of dairy cows, methane emissions are reduced by 3.5%. Unfortunately, dairy farmers across the country shouldn’t start stocking up on too many cartons of beer just yet. Researcher Peter Moate says although adding the fatty supplements did not affect the dairy cows’ appetites, milk production or the milk’s suitability for consumption, there is a practical limit to how much dietary fat can be added to feed before the cow’s appetite is affected.

Cream rises to the top WE ALMOST choked on our weeties when

we read National Foods was removing Coles brand and Dairy Farmers milk from shelves because its cream had risen to the top. National Foods were quick to reassure the media that there was “no health risk to consumers” and that the issue had arisen because of the homogenisation process. Seems to us it’s further confirmation of the growing gap between those who produce food and those unaware of how it appears in the supermarket.

This news follows a rising trend by city consumers saying they don’t want permeate in their milk – even though they have no idea of what it is. With companies searching for a marketing edge, watch the rise of “no added permeate” branding to come!

Pit stop THE FRAMPTON family of Gawler, Tasmania, won the safety award at the recent Tasmanian Dairy Business of the Year Awards. Judges were effusive in their praise of the family’s efforts to ensure all potential work risks were minimised. But the biggest seal of approval apparently comes from the local tanker drivers who hold on until they reach the Frampton dairy toilet, which is as clean as any you’ll find. “Dairy toilets can be quite notorious for all the wrong reasons and word quickly spread,” the judges said.

Three every day WE HAVE always been impressed with the

Australian Government’s 2&5 campaign, encouraging people to eat two serves of fruit and 5 serves of vegies every day. Everyone wins – growers, wholesalers, retailers and the public. So it’s good to see Dairy Australia launching a new campaign encouraging parents to ensure their kids get three serves of dairy a day. A logo has been developed to support the campaign and ads will be run this month in the Women’s Weekly and on commercial radio. You can see the campaign materials at www.dairyaustralia.com.au/kidsneed3

The new milk season looms as a period of consolidation for most Australian farmers but we are starting to see a concerning divergence of fortunes between those in south eastern Australia and those in Queensland, northern NSW and Western Australia. Fonterra has again bucked the traditional trend of keeping farmers waiting until June or July for an opening price with its announcement of $4.65/kg milk solids for its 1300 suppliers in Victoria and Tasmania. It’s a 9% increase on last season’s opener but the company will hope to average more than its current price of $5.45/kg MS by the end of next season. Murray Goulburn suppliers in south east Australia will be hoping the co-op repeats its form of last season, when it opened almost 40c/kg MS higher than Fonterra. Dairy Australia’s economic analysis leads it to believe the full year average price will range between $5.10 and $5.50/kg MS – similar to the current season. Dairy Australia also says farmers are not yet convinced about the opportunities for growth. Its annual national survey shows cash flow has been slow to improve, and the better returns currently being enjoyed are merely enabling many producers to restore their financial positions following the poor returns of the previous two seasons. Farmers are seeking a more sustained period of reliable returns before investing in herd growth or infrastructure. Policy settings around continued access to water and the impact of any carbon pricing schemes will also be important drivers of the Australian industry’s future competitiveness and growth prospects. Decisions on the emissions trading scheme and Murray Darling Basin will be crucial to the growth of the sector in the country. While operating conditions have improved dramatically for most in the industry, differences in price signals and demand highlight regional variations. South Eastern Australia farmers are enjoying arguably the best conditions for a decade with good export demand growth, competition for suppliers and favourable seasonal conditions. This situation is supported by improved milk prices combined with greater feed availability. However in Queensland, northern NSW and Western Australia – where the industry is geared towards fresh milk supply – uncertainty created by plant closures and private label milk discounting is undermining the confidence of farmers. Production in northern regions has also been constrained by flooding and cyclones early in 2011, while WA farmers have been struggling with drought conditions and some uncertainty in the processing sector. Australia needs a viable dairy industry in all states and a series of natural disasters and government and commercial decisions is making this more difficult. A new season will present another 12 months of challenges – strong industry leadership is more important than ever.

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DAIRY NEWS AUSTRALIA // june 2011

opinion

Low water prices scupper Govt buyback scheme Gary Sansom A NEW report on progress of the Commonwealth water buyback for the Murray Darling indicates that the two tender rounds that were held in Queensland’s Lower Balonne have been undersubscribed, leaving most of the budget of $140 million unspent. Water market specialist Waterfind prepared the report, but found that there has been insufficient progress with the implementation of the program in the northern basin to provide any useful analysis. It concludes that the low water price of around $1430 per megalitre – set by the Federal Government – is the reason both tender rounds in the Lower Balonne have been substantially undersubscribed. Clearly, with such a low subscription at this price, irrigators are sending a message to the Government that farmers place a higher value on their water than $1430/ML. Analysis conducted in the southern basin has found that the Commonwealth has increased its prices by up to 3%, reversing the trend up to the 200910 season. This upward trend is expected to continue for at least the next

The Budget papers note, however, 12 months, but the longer term outlook that the application of this additional is uncertain. Waterfind also concludes that Budget funding to continue buying back water allocations will be insufficient to meet entitlements is ‘subject to the availabilthe targets for water recovery proposed ity of water for purchase from willing in the Guide to the Basin Plan released sellers’. The total cost of this commitlast year. It estimates that an additional ment is to be confirmed when the Basin $1.6 billion will be required to achieve Plan is finalised. QFF welcomes this additional budget a 3000 gigalitre reduction and an additional $5 billion to meet the 4000 giga- allocation. However, there remains significant uncertainty about the progress litre target. Nonetheless, irrigators and commu- being made with the buyback program nities will be holding the Government for unsupplemented water in Queensto its promise of fully meeting sustain- land. Purchases in the Queensland able diversion limits (SDL) by purchas- catchments remain at just 6.8 gigalitres, whereas total purchases for the Basin ing water from willing sellers. Water recovery initiatives include are 967.7 gigalitres. Irrigators are the buyback proquestioning the gram and water Government’s inuse efficiency measures imple- Irrigators are questioning terest in setting mented on-farm the Government’s interest prices that will encourage willand in irrigation ing sellers. This schemes, which in setting prices that will shares water be- encourage willing sellers. is particularly the case if the prices tween irrigators the Federal Govand the environernment will acment. The Federal Government Budget, cept for water harvesting entitlements released last month, indicates that an in areas such as the Lower Balonne readditional $310 million will be made main around the $1430/ML level. The Lower Balonne is a nominated available each year from 2014-15 to bridge the gap between the level of wa- priority area for the buyback program, ter recovered under existing initiatives but as Waterfind concludes the prices and the level required under the final being offered are resulting in tenders being significantly undersubscribed. Basin Plan.

Public anger boiled over at meetings on the draft Guide for the Murray Darling Basin last year.

The absence of a functioning water market also makes it difficult to determine a value for water. The lack of feedback to entitlement holders, in regard to unsuccessful bids, is adding to the level of uncertainty and concern that Queensland irrigators are not being given an even chance with southern irrigators to soften the blow of future entitlement reductions. Irrigation communities in Queensland recognise the importance of the buyback program to achieve water recovery targets for the environment. They also recognise the need for water buyback to be successful in areas such as the Lower Balonne if the SDL targets

expected in the draft Basin Plan are to be met. They do not believe that other recovery measures can make up for any significant under-recovery from buybacks. However, if prices set by the Commonwealth are insufficient to encourage willing sellers will the Commonwealth reduce entitlements without any financial adjustment? That is exactly the type of concern that saw public anger boil over at public meetings on the draft Guide last year. This is a situation that must be avoided. Gary Sansom is president of the Queensland Farmers Federation.

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DAIRY NEWS AUSTRALIA // june 2011

agribusiness

Fleurieu Milk Company flourishing “There was a lot of shiny stainless steel, pumps and gauges and we thought if it didn’t work out we could on sell it,” Hutchinson says. Exasperation at years of low milk They spent $30,000 changing the wiring prices drove South Australian dairy farmers Barry Clarke and Geoff Hutchinson to from 110 to 240 volts and with little more than pouring some concrete they got the take charge of their own destiny. “When we considered the price we were business up and running on a farm outside receiving for our milk and the price being Myponga for less than $500,000. “I don’t know how we could have got charged in the shops, we decided we’d be better off processing our own product and started without this equipment. It would capturing some of that margin ourselves,” have cost us millions of dollars to build a conventional plant,” Hutchinson says. Clarke says. The two farmers became hands on milk After taking a closer look at the possibilities, and with the benefit of a couple of processors, often working late at night paslucky breaks along the way, Clarke, Hutch- teurizing and packaging milk transported inson, and another Myponga local, Chris from their farms in a 3000 litre vat mountRoyans, bankrolled their enterprise, Fleu- ed on the back of a trailer. An early decision was rieu Milk Company, in 2006. made to bring a couple of Looking back after five friends on board to organyears, they are both conise the distribution of Fleuvinced that had they not rieu Milk - named after the acted they would not be land peninsula that extends dairying today. They just south of Adelaide. have to look around at how “People liked the idea of few farmers are still operatbuying a quality, local proding in what was once a flouruct and we have always been ishing dairy region. Who: able to command a premium “We’re miles in front of Fleurieu Milk Company for our milk. It’s just freshly where we thought we would Where: pasteurized milk with nothbe. With a gross income Myponga ing added,” Clarke says. about double what it would What: The company now has a be otherwise, dairy farming Value adding fleet of six brightly painted is a viable business for us trucks on the road supplying now,” Hutchinson says. about 50,000 litres of milk “And we’ve created around 40 permanent and part time jobs in and cream a week to more than 600 independent outlets around South Australia our local community along the way.” Their first stroke of good fortune was and as far as Alice Springs. Their dairy herds are complimentary the entry of Warnambool Cheese as a third processor seeking milk from South Aus- with Barry milking about 215 Jerseys and Geoff 200 Friesians. tralian farmers. The Jersey milk is sold as a branded topUntil then, Clarke and Hutchinson had been selling their milk on contract to Dairy end, full cream product while the Friesian Farmers for processing into cheese and yo- milk is used in their popular low fat range and now a selection of flavoured milks. ghurt in Adelaide. “My wife’s family has been milking Jer“Warnambool were happy to take whatever volume of milk we could supply, which seys since the 1920s and we kept the herd gave us an outlet and cash flow while we going when we moved back to Myponga got Fleurieu Milk established,” Clarke says. from Mount Compass,” Clarke says. “Now that we have a viable future in Their second break came when a low cost entry to milk processing presented dairying. We have just brought the neighitself. They came across a containerised bour’s place and plan to take our herd up to plant which had been built for the US Army about 300 cows.” About 12 months ago they took an opto make ice cream on Guam. The containers held everything they portunity to diversify into flavoured yoneeded to process fresh milk at 1000 litres ghurt production with sales climbing steadily to about 1 ½ tonnes a week. an hour. Gordon Collie

Above: Geoff Hutchinson and Barry Clarke.

They got the business up and running on a farm outside Myponga for less than $500,000.

Right: Fleurieu Milk Company’s Barry Clarke with some of its flavoured milk.

A joint-venture, launched with the Queensland Yoghurt Company, gave the farmers access to quality recipes and manufacturing technology. “They had been making inquiries about buying cream from us and were building markets for their yoghurt in Melbourne so it has been a good business fit,” Clarke says. Hutchinson says they have been fortunate that after an early growth spurt, sales have built steadily, allowing them to expand production without having to make further major capital investment.

While the original containerized processing plant is still at the heart of their business, they are now planning an upgrade, including a new shed and additional cold storage capacity. When this is completed they will seek accreditation to allow them to explore the export market. “We’ve had a number of inquiries from Asia and believe there could be potential to ship bulk milk in 1000 litre bladders for packaging overseas,” Clarke says. They will continue to develop their local sales potential, which includes a valuable marketing presence at farmers’ markets in Adelaide and nearby Willunga. “We have a good future as dairy farmers selling our milk to parochial South Australian consumers,” Clarke says.

National Foods becomes Lion

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National Foods will now be known as Lion after a decision by its parent company to change the name of all its business units. National Foods was one section of the multinational Lion Nathan National Foods, owned by Japanese company Kirin Holdings. The company said although no formal business names will be used other than Lion, category and geography will be employed

informally to distinguish between business units. National Foods will therefore now be known as Lion Dairy and Drinks. Lion Nathan Australia will now be referred to as Lion Beer, Spirits and Wines, Australia, while Lion Nathan New Zealand will be known as Lion Beer, Spirits and Wines, New Zealand. Lion CEO Rob Murray described the change to the corporate brand as “the next stage in the evolution of the company”.

“We became Lion Nathan National Foods in October 2009 when Kirin Holdings purchased the remaining shares in Lion Nathan, and merged the company with its foods business, National Foods. “Since then we have come a long way in integrating our business, and our new name reflects our shared purpose and identity.” The formal rollout will occur in August and continue through to November.

DAIRY NEWS AUSTRALIA // june 2011

agribusiness

New Zealand farmers in box seat released their estimated payAS ANOTHER season draws out for the current season to a close; milk prices come and their opening price for ‘top of mind’ as farmers asnext season – which started sess how they’ve ended the on June 1. year and put together operatExcluding any profit retening plans and budgets for next tion and dividend payments, season. Fonterra’s estimated full-year Where will milk prices end milk payout for the2010/11 this current season? What production season is NZ$7will next season’s opening 50 per kg MS; while their price be? global impact peter wilson opening price for the 2011/12 Dairy Australia has recentseason is NZ$6-75 per kg MS ly published its annual Dairy 2011: Situation & Outlook report and esti- – reflecting an outlook for a higher exchange mates milk prices in southern regions will rate and potentially moderating commodity finish the 2010/11 season close to an average prices. Nevertheless, this figure still represents of $5-50 per kg milk solids. It went on to say that opening prices Fonterra’s highest ever opening price foreannounced by manufacturers should be cast to date. So how do these two sets of milk prices stronger than last year, when there was less certainty about the strength of recovery in compare? Of course there are many reasons why world prices. Consequently, the outlook for indicative milk prices will vary from year-to-year southern farmgate milk prices, based on between the two countries. These include current commodity price and exchange rate the different product mix across the major expectations, is for an opening price range of commodity products; the market mix $4-60 to $4-90 per kg MS – up from $4-40 to between domestic and the various export markets; individual company’s business $4-60 per kg MS in 2010. This implies a full year, average price models and management of currency range between $5-10 and $5-50 per kg MS – exposure; and the level of competition for milk in each market. similar to the current season. For example, the following pie charts Meanwhile, Fonterra NZ has also recently

Is debt reduction a genuine option? Tim Kemp CASHFLOW IS the key to survival of any business. Even the most profitable business on paper can be susceptible to bankruptcy if there is no cash flow. Environmental and economic conditions over the past few years have put farmers in a very peculiar position this year, with many catching up on financial reserves which have been recently depleted. Most farmers have experienced some form of financial stress in recent times and are only now beginning to see some light of day. The grass is becoming greener with the future showing good prospects; however the banks too are hoping to see some of the accumulated debt repaid to realign their risk profiles. However, even for those who don’t have high debt, now might not be the best time to erode cashflow by reducing debt. This year is really more likely to be the consolidation year to get back on track and build up the cash reserves - a “buffer”, if you like. In order to reduce debt, there needs to be cashflow available. This cashflow might be needed for a myriad of things, such as tax payments and pre-June

30 tax planning. In order to generate this cashflow, we must generate profits to fund it. This year it looks likely that farmers will have higher profits overall and with that comes tax. The concern is that if cashflow is used to make debt reductions, after all outstanding creditors are paid off (previous year expenses in most cases), there might not be the funds available to allow for preJune 30 planning strategies like pre-payments, farm management deposits (FMDs), superannuation and other legitimate tax planning strategies. Having the funds to pay the tax could also be an issue. The important thing to consider in all of the above, before paying off some debt, is to review your budgets and cashflow. Also talk to your farm consultant or accountant and determine if paying off debt will have a detrimental effect on your farm’s cashflow. It might be best in some circumstances to hold off paying down debt to ensure you aren’t left short at a time when you can make your cashflow work for you. Tim Kemp is a Certified Practising Accountant with Morrison, Jefferis & Associates, Leongatha, Victoria.

show how the export product mix differed between the two counties in 2010. These charts show how New Zealand is highly reliant on WMP and butter/butter oil; while Australia’s export product mix is skewed more toward cheese and SMP. In the year just gone, international commodity prices for butter/butter oil increased at around twice the rate of increase in milk powder prices. Cheese prices also increased, but at a significantly lesser rate than the other key commodity exports – and cheese is Australia’s most important export commodity. Consequently, there is potential for quite significant variations in export returns between Australia and New Zealand and these variations will flow through to milk prices. Another factor contributing to different milk prices is that there has been significant competition for milk supplies in southern Australia in recent years, while Fonterra NZ dominates its market. After considering all these factors, there is every reason to expect milk prices to be quite different on each side of the Tasman. Nevertheless, both sets of milk prices – once converted to nominal $A – broadly track the dairy commodity price cycles. Peter Wilson is industry analyst for Dairy Australia and can be reached at pwilson@ dairyaustralia.com.au

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DAIRY NEWS AUSTRALIA // june 2011

management

Production steady despite water cut was a labour intensive exercise,” Pastures, an intensive project that aims to help farmers make he says. “Following deregulation we profitable and sustainable use needed to increase pasture of nitrogen in dairy pasture Third generation dairy systems. farmers Dale and Leanne Hanks yields and milk production. “As part of Greener Pastures, “Using pivot irrigation we have maintained their average milk production despite a failed have managed to grow more we soil tested the entire farm for spring and a severe reduction in grass using less water and it has three years running. “It enabled us to build a picture cost us much less.” their water allocation. During the dry The poor spring conditions and reduced water led the couple months, the 35ha to implement fundamental under the pivot The Hanks’ have lifted changes to the way they run allowed the herd their cows through the summer a grazing at night. their cow herd average on their Harvey dairy property, With much of the from 7000 litres/cow to irrigation water Taylynn Farms. In years gone by, Dale would being saved for 9500 litres in the past be in the enviable position early germination, a four years. of having access to enough feedlot system was irrigation water to allow his herd implemented for the to graze both morning and night herd during the day. “We had the option to buy of the nutrient status, and as a from October through to April. The 2010/11 irrigation season more water at $300/ML so it result we have minimised the saw farmers from the Harvey was a more cost effective option amount of phosphorous we area have their water allocation to buy pellets at $295/t for the apply and improved pH without young cattle, and good quality jeopardising pasture growth or cut to 34%. “In 2010 we experienced a oaten hay $240/t for the milking milk yield,” he says. The entire farm will continue failed spring which meant that herd,” Hanks says. He established to be tested annually, in we only made a low cost, conjunction with tissue testing half of our usual f e e d l o t - s t y l e three times throughout the hay and silage system for growing season, with the aim to program,” Dale feeding the cows use nutrients more profitably. says. Despite the challenging after the morning “When we conditions Hanks has continued milking. only received “We fed the to lift his 290 cow herd average 34% of our water herd oaten hay from 7000l/cow to 9500l in the allocation we from November last four years. knew that it was Much of this is attributed to to March, and going to be a Who: paying close attention to herd then switched to challenge to keep Dale and Leanne Hanks health and nutrition. The shift a ration of maize our production Where: was made from processing the silage and straw,” consistent Harvey grain ration on farm, to buying he says. without a massive What: A Keenan in commercially prepared increase in cost.” Reduced water wagon was hired pellets. H a n k s “The pellets have definitely for processing implemented several strategies that allowed maize silage and straw and it helped to lift production. The him to maintain his 9500 litre was fed out along conveyor belt cows receive a consistent ration average and fat and protein matting. This feedlot system in the dairy and we know levels of 3.6% and 3.1% also gave the herd access to they are receiving the correct necessary shade with day time quantity of minerals,” he says. respectively. Taylynn Farms is on very low In 2007, Hanks was the first temperatures close to 40°C. Hanks says his primary lying country with virtually no in the district to install a centre pivot irrigator in a landscape passion is pasture management. elevation. In a normal year they This passion led to Taylynn would receive 800-900mm dominated by the Harvey Water Farms being one of four partner of rainfall and paddocks and irrigation scheme. “I felt that flood irrigation was farms the joint industry/ laneways can get very boggy. To combat the potential not ideal for grass growth and it government project Greener Emma Reynolds

Dale Hanks has maintained milk production levels despite a change in farming practice.

footrot problems this environment poses, Hanks has installed mats containing a copper sulphate solution which the cows walk over after leaving the dairy. The laneways are also covered in wood chips to alleviate the waterlogging. There is also a considerable amount of emphasis placed on calf rearing, although he has

several employees, Hanks tends to do a large amount of the calf rearing himself. “I like to use buckets and open troughs that can be easily sanitised rather than teats,” he says. “We are also vigilant about the importance of colostrum, and keep a fresh supply on hand throughout calving for animals that appear to have missed out.”

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DAIRY NEWS AUSTRALIA // june 2011

management

Industry must unite to capitalize on world price How do we as an industry

grow our national milk supply and capture some of the strong international pricing and demand? I was left to ponder this after the recent United Dairyfarmers of Victoria conference in Sale, Victoria. As with any strategy moving forward it is important to understand our current position and what that means for our ability to grow. It is clear that the environmental challenges seen over the past 10 years, the impacts of the GFC on milk prices and the steady and significant increase in farm input costs have done much to hold back the industry, reduce farmer confidence and increase

industry, it also the level of short provides cause and long-term for concern if our debt that farm locally-owned businesses and resourced carry. manufacturers Over and cannot keep pace above what has with their global been happening farming focus competitors. at farm level, gavin mcclay Our industry there have been is characterized significant by large climate changes to the challenges, an increased cost manufacturing ownership of production and business structure. We now have many overheads and a larger reliance large international companies on the requirements of controlling much of the international companies and milk that is produced across their markets and margins. Australia. This position means the While this provides opportunity for growth lies competition and has directly at our feet as farmers, provided capital to develop if we want to see our milk the infrastructure required production grow it is up to each for the modern global dairy

research and projects. individual farm business to We need to see more develop this growth. farmers, young and old, Many would suggest this engaged in continued has always been the case, but professional development I suggest now is more crucial and steadily raising the bar on than ever before. understanding what a complex To achieve this growth I believe we need a renewed culture of unity across the dairy Many large international industry as we companies control much have become very disjointed. of the milk produced in We need Australia. farmers encouraging other farmers to keep developing physical and financial business their businesses and their model we operate, so our own professional skills, to be decisions are based on profit, involved in discussion groups, not pop culture or sales pitch. to keep up with industry

If we can achieve this unity and an increased focus on understanding our own business, then I believe we’ll see growth in “our” industry. If we see continued separation and lack of life-long professional development then we will leave the opportunities open for others to control where we are going. So who is the catalyst that can wake this sleeping giant? The clear leader is Dairy Australia, and with the pending vote on the continued level of industry levy to go centre stage in the coming months, it provides the perfect opportunity to call the industry together and start this process to put us on the road to growth and strength.

Sludge application to pasture pays off quickly Farmers can recoup the costs of

applying dairy-first pond sludge to pastures in less than six months. An economic evaluation of the cost benefits of applying first pond sludge directly to established pasture was conducted by Warrnambool-based Department of Primary Industries Senior Research Scientist Graeme Ward. Ward says the study, funded by WestVic Dairy and the Victorian DPI, proved that use of sludge as a nutrient source for growing pasture to feed dairy herds was a good business decision for farmers as well as a good environmental move. “It pays for itself pretty quickly, generally within the first three to six months,” Ward says. The study was based on two trials at Terang and at Naringal. Ward says the cost of using contractors and specialised equipment to apply first pond effluent was a deterrent to many farmers. “However, our study has shown that despite the relatively high cost of spreading the material, farmers can quickly recoup the application costs through increased milk returns.” At Terang, the late-March sludge application costs were recouped for the 5mm rate after the second grazing in late June. While the 10, 20 and 30mm rate application costs were recouped after the third grazing in mid-August. At the Naringal site where there was a faster pasture response, the 5, 10 and 20mm sludge application costs were recouped after the first grazing in midMay and the costs for the 30 and 40mm rates were recouped after the second grazing in mid June. Ward says the relatively fast payback periods were in part due to good milk prices at the time the trials were conducted. However, he says that even in years of lower milk prices the costs of sludge application would usually be repaid within six months. “It is also important to note that these returns do not include other benefits such as correcting potassium (K) deficiencies and the liming effect of raising soil pH

Applying first pond effluent to pasture pays for itself within 3-6 months. resulting from sludge applications,” he says. The study was conducted with the cooperation of Kerry Stott, an agricultural economist with DPI Victoria at Bendigo. It used pasture herbage yield responses and herbage feed value data collected as part of the Terang (DemoDAIRY) and Naringal pasture trials; together with milk composition and milk price data from the two farms. Ward says the cost of extracting sludge from the first pond, transporting it to and spreading it on pastures by vacuum tanker could be variable and was influenced by the time to fill the tanker, the distance from the pond to the paddock, the rate or depth that the sludge was applied, and the hire rate of the tanker. He says some contractors are now investing in systems for piping the sludge rather than carting it which could further cut costs. In the trial, application costs for applying the sludge directly to established pastures ranged from $170/ha for the 5mm rate up to $1330/ha for the 40mm rate. The researchers estimated the additional milk returns based on the duration of pasture yield responses, the amount of pasture consumed, the estimated metabolisable energy content of the herbage on each treatment, the fat and protein composition of the milk produced by the herd on each farm, the farmgate price per litre of milk, and an interest rate of 8%. The Net Present Value of the increased milk returns from the additional pasture grown ranged from $1010/ha for the 5mm rate to $4410/ha for the 30mm rate at the DemoDAIRY site, and from $704/ha for the 5mm rate to $4847 for the 40mm rate at the Naringal site.

Use your nous for nutrients More efficient use of nitrogen means more goes back into production; so there is more grass and more milk as well as more environmental benefit.

ensures feed nutrients are more evenly distributed, rather than accumulating in sacrifice paddocks.

The Accounting 4 Nutrients (A4N) study supported by Dairy Australia found whole-farm nitrogen use efficiency ranged from 14 to 50 per cent, meaning for every 100 units of nitrogen coming on-farm, as little as 14 leaves in incomeearning milk and meat.

• Soil test and target fertiliser applications each year. As fodder conservation can remove substantial amounts of nutrients, soil testing needs to target paddocks with different uses. The price of soil testing is low when measured against the benefits. Do soil tests across their property, not just on one or two paddocks. Reductions in phosphorus, potassium and sulphur application could then be targeted to parts of the farm that showed they had excess nutrient levels.

Additionally, leaching and volatilisation nitrogen losses can substantially reduce the expected benefits to pasture production. More than three-quarters of the 2200 dairy paddocks sampled in the A4N study had surplus phosphorus, potassium and sulphur levels. At these levels, most pastures and crops are unlikely to produce additional dry matter from fertiliser inputs.

• When considering nutrients coming on to dairy farms, it is particularly important to consider what makes up the diet fed to cows, particularly given the increase in dairy supplements over the past 30 years.

Nutrient levels were particularly high in paddocks close to the dairy shed, and where animals are held for extended periods. Here are some of the tips and techniques the study revealed: • Regular rotation of cows through paddocks, even during the drier periods,

• For the greatest benefit from nitrogen fertiliser, apply when pastures are growing and soils are not too wet and cold. The A4N study identified 75 different types of feed and found mineral composition and metabolisable energy varied significant between and, at times, within types of feeds, as shown below.

Nutrient characteristics of 3 common supplementary feeds and ryegrass pasture Nitrogen (N) %

Phosphorus (P) %

Potassium (K) %

Sulphur (S) %

Calcium %

Magnesium %

Metabolisable energy (MJ ME/kg DM)

Wheat grain

2.2 (1.5 – 3.1)

0.3 (0.2 – 0.4)

0.4 (0.3 - 0.5)

0.16 (0.1 – 0.2)

0.05 (0.01 – 0.08)

0.13 (0.10 – 0.15)

12.9 (12.4 - 13.3)

Cereal hay

1.6 (0.3 – 2.5)

0.2 (0.05 – 0.4)

1.7 (0.6 - 3)

0.16 (0.1 – 0.3)

0.2 (0.1 – 0.5)

0.14 (0.08 – 0.2)

8.5 (5.3 – 9.7)

Lucerne hay

3.4 (2.3 – 4.8)

0.4 (0.15 – 0.7)

2.0 (0.8 - 3.2)

0.3 (0.1 – 0.4)

1.2 (0.2 – 2.2)

0.4 (0.1 – 0.7)

9.6 (7.8 - 11.2)

Ryegrass pasture

3.7 (1 – 5.6)

0.4 (0.1 – 0.8)

2.8 (0.5 - 4.9)

0.3 (0.1 – 0.6)

0.6 (0.1 – 1.1)

0.3 (0.1 – 0.5)

10.5 (6.7 – 12.4)

The values in brackets represent the range.

Accounting 4 Nutrients is one of the many examples of the dairy service levy at work. Farmers receive a benefit of $3 for each $1 invested by Dairy Australia on their behalf. For more information on this and other levy investments visit www.dairyaustralia.com.au

DAIRY NEWS AUSTRALIA // june 2011

management

Two pond system cuts labour costs WHEN DON and Jeannie

Who:

Don and Jeannie Harris Where:

Poowong What:

Two Pond Effluent System

of a number of new tracks, took between four and five days to complete and cost around $5000. Additional piping, four hand pieces for washdown, labour and fittings brought the total cost to around $20,000. Harris says it was money well spent. As well as being more than adequate for managing the amount of effluent being produced by the herd, the system delivers real savings in terms of time, labour, water and fertilisers. Washdown time has also been slashed from around 40 minutes per milking, to just five minutes and re-uses water from the second pond – rather than fresh water from another dam. Harris is pleased that he spent the extra money installing four hand pieces rather than the more

Washdown time has been slashed from 40 minutes per milking to five minutes, re-using water from the second pond.

Photos: Jillian Staton

Harris purchased their 162ha Nyora property in 2006, improving the effluent system was high on their list of priorities. “There was only one small pond and it was totally inadequate for our set-up,” Don says. “We wanted a two pond system like we had on our previous farm. It was a fairly simple system, but it worked well.” The Harris’s run 230 cows on a milking area of 138ha on the hilly, dryland country of Poowong in West Gippsland. The two pond system allows for more flexibility. The second pond water can be recycled to wash the yard and stored to use to extend pasture or crop production when it is drier. Ultimately, they decided to construct a second, larger pond next to the existing pond – even though site restrictions meant they had to dig into the side of a hill. “By building it there, we could use the existing (30HP) pump and a lot of the wiring and piping was already in place,” Harris explains. “All we really had to do was buy the spray arms for the yard wash system and connect it all up.” Construction of the 40m by 20m dam, was linked in with the construction

commonly used fire hose. “Anyone can use the hand pieces,” Harris says. “You just point them wherever you need them. They’re much easier and safer than a fire hose.” The hand pieces use less water than a fire hose, but the mist they create can be problematic on a windy day. “It’s fine if you have a head wind, but a bit of a nuisance if you’ve got a tail wind!” Harris says. “But given the amount of time

we save, it’s worth putting up with.” An advantage of the two pond system is that Harris can use water from the second pond to extend their summer growing season. “It grows beautiful feed.” Harris has irrigated three hectares for the past two summers, but has capacity to apply the effluent water over another six hectares. “In fact, it’s probably worth buying more pipe

Don Harris (above) and wife Jeannie built a two pond system (below right) on their new farm. Four hand pieces (below left) were installed rather than a fire hose.

to cover a greater area and target some of the poorer paddocks.” He currently pumps the effluent water over the paddocks using two inch pipe and a stationary sprinkler, but is planning to buy a travelling irrigator to save him time, and allow him to irrigate more evenly. “You just set it and leave it to move slowly along the paddock,” he says. “I’d irrigate more frequently then because I wouldn’t

have the hassle of moving everything around.” Soil tests have revealed the property has low to moderate fertility so Harris is not yet concerned about over-fertilising. As time goes on, the Harris’s intend to carry out further soil tests to ensure they are not creating any imbalances and to identify the potential for using the effluent water to boost fertility in other paddocks. “Fertiliser is our main cost,” Harris says.

DAIRY NEWS AUSTRALIA // june 2011

management

Extended lactation overcomes seasonal problems A RECENT study of 11 Victorian

farms has shown that extended lactations and split calving defy industry claims about these systems leading to lower milk production. Dry conditions and difficulties with poor in-calf rates over many years led to a major shift in the approach to managing the reproduction of these farmers’ herds. The study – conducted by Victoria’s Department of Primary Industries – shows the farmers who have made successful transformations will not go back to their old methods. Reproduction specialist Jock MacMillan says Australia seems to be stuck between American and New

Zealand production systems. “The Holstein clearly isn’t ideally suited to a seasonally concentrated calving pattern,” MacMillan says. “Cross-breeding helps reproductive performance, but the improvement often isn’t good enough to comfortably maintain a seasonal calving herd.” He believes a better approach to managing the modern dairy cow involves the use of extended lactations and split calving. “Research in Australia, New Zealand and Ireland has shown that longer lactations are easily achieved by Holsteins of high genetic merit. “A Victorian economic analysis

Balance high production with profitability

showed that systems using splitcalving and extended lactations were as profitable and involved less risk associated with seasonal growing conditions, milk price and purchase feed price than seasonal calving systems.” MacMillan says the 11 farmers involved in the study have taken advantage of the strengths of the modern dairy cow and reaped the benefits. Although all the farms apply extended lactation, they are not all utilising exactly the same methods. DPI Dairy Extension Officer Greg O’Brien says what stands out the most from the survey results is the

flexibility EL allows. “Some farmers are using it to change their calving patterns, while others are using it to tighten the calving pattern without wasting valuable cows. Meanwhile, others are doing it to better manage labour.” MacMillan says the dairy industry has been concerned that using EL will result in lower reproductive performance, less milk production and unprofitable farms. “However, the farmers involved in this DPI study have been able to demonstrate this is certainly not the case. For the 11 study farmers, the use of extended lactation ticks all the boxes.”

Some farmers use extended lactation to change their calving patterns.

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DAIRY NEWS AUSTRALIA // june 2011

management

Tackle wet soils with on-off grazing FARMERS FACING wet soil damage

should consider using on-off grazing. Pasture and Fodder Conservation Specialist Frank Mickan, who works at the Victorian DPI’s Ellinbank facility, says many soils around the country are now saturated with water and are susceptible to severe pugging damage. In Gippsland alone, pasture growth during the following two to three months might be reduced by 20-40%, Mickan says. “These are sizeable reductions in pasture in-take, which could result in a drastic loss of milk production or increased cost of supplementary feeding.” Mickan says on-off grazing usually involves the cows grazing pastures for two to four hours and then removing them before severe pugging damage starts to occur. “On well-fertilised pastures near the two to three-leaf stage of growth, cows are expected to consume about 70% of their expected intake over a 12 hour period with two hours on pasture, and 7788% if left on there for four hours. “After four hours, pugging is drastically increased for very little increase in intake,” he says. “It’s best to remove the cows and save the pastures for another rotation. However, the animals

will need to be topped up with a high quality supplement to avoid loss of milk production.” Some farmers already have a suitable ‘stand off’ area or can be very innovative in setting up a site. Such places might be old quarries, unused silage pits, sawdust pads, laneways, unused roads, sand banks, hard standing areas, concrete feeding areas or cow yards. Tree lots can be used, but Mickan says farmers should watch ringbarking and avoid conifers. “Dry cows can be successfully held in cow yards for up to 20 hours, but they do need some exercise after about 8 to12 hours to minimise foot problems.” Although not ideal, milkers can also be held in yards for long periods. Some farmers allow milkers access to pastures for three to four hours throughout the day, and again that night, then lock them in the yards overnight. “The yards should be washed clean of stones and sand each day to minimise lameness,” he adds. “Close off the pit and milking areas securely. Cows should have enough area to stand comfortably but not be packed in. Most cows won’t sit down for long, if at all.” He says while effluent will increase it will be discharged into the system al-

Pasture growth during the next three months could be reduced by 20-40%. ready set up at the dairy. However, the cows will be warm, content and at the shed for the next milking. Mickan says laneways should have a hard surface if they are to be used as a stand off area. Laneway fences should preferably be on the edge of the hard crown, not on the outer side of the drains, which are usually pasture and easily pugged. The herd should be fenced into sev-

eral small (30 - 50 cows) groups over sections of the laneway to stop them walking back and forth. If possible, the areas of laneway used each time standing-off is required should be changed. Temporary or semi-permanent feed troughs for fodder could be built along the laneway. Mickan says sawdust/rice hull feeding pads and hard stand-off areas are very popular, but supplies should be

purchased early. The depth of topping should be deep (greater than 50cm) and the soil underneath must be wellcrowned or installed with drainage pipes to ensure good drainage. To increase the life of the topping, Mickan says farmers should consider locking the cows into the cow yard for one to two hours to empty them out. “Regularly grade off the fouled top to an area where it will not contaminate waterways, or top up with fresh material.” Mickan says a sacrifice paddock should be used as a last resort because of damage to pastures, soil structure and danger of soil and nutrient run off into waterways. “If possible choose a paddock which will not pug easily or one due for renovation next year after a summer crop. Paddocks containing paspalum or bent grass are ideal. “Consider strip or block grazing the cows so that each day, they will have some fresh pasture along with their supplement. “If possible and suitable machinery is available, feed any supplement just under the fence on the new break to avoid trampling into the mud. Do this before allowing access to the animals.”

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DAIRY NEWS AUSTRALIA // june 2011

Animal Health

Simple changes slash mastitis levels danny butler

Who:

Mick and Paula Hughes Where:

Willowgrove

Mick Hughes has drastically reduced the levels of mastitis in his Gippsland herd through simple changes to his management.

What:

Mastitis prevention

the Willgrove Focus Farm. “Because Strep uberis is an environmental bacterium which can also spread in the dairy during milking, it has been necessary to look at the risk of mastitis in both the outside environment and in the dairy when creating a plan for Mick and Paula,” he explained at the recent Focus Farm Field Day. “The Dairy Focus Mastitis Risk Assessment has given us a clear understanding of where the risks of mastitis spread are, in the Hughes dairy, and what needs to be addressed.” At their first Mastitis Risk Assessment in December 2008, the Hughes’ had a risk score of 29 points out of 60. This had them at the high end of ‘Medium Risk’, almost into the ‘High Risk’ category for mastitis spread. Key issues were teat end condition and cup slip. By steadily addressing these risk issues, the Hughes have reduced their Mastitis Risk Score to 16 points out of 60 by March 2009. This put them on the verge of becoming ‘Low

Risk’ for mastitis (a score under 15 is considered ‘Low Risk’). Dyer says the challenge for the Hughes’ now is to continue progress towards getting a risk score below 15 points. He tells all farmers that properly spraying the teats by taking the time to do it well is the best investment they can make in the dairy. “It involves 100% cover of 100% of the teats in the herd. No cow has ever died from teat spray poisoning.” Dyer says Strep Uberis, which lives in the bowel of the cow, is now the most commonly found bacteria when milk cultures are done. Willowgrove Focus Farm facilitator, Jeff Urie, says the Hughes’ mastitis program has been an example of how the Focus Farm formula can help improve farm performance. “The support group has kept them focused on it and has driven them to do the hard yards and go further with various things than they may have done otherwise.”

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MASTITIS WAS driving Gippsland farmers Mick and Paula Hughes up the dairy shed wall. The Willowgrove farmers were getting nowhere in their efforts to control the disease in their cows and were spending a small fortune on treatments. However, with the help of on-farm consultants and a handful of neighbours, they have almost eliminated the problem. The Hughes’ leased farm is the epicentre of the Willowgrove Focus Farm. The Focus Farm project revolves around a single farm, with the farm family helped by a local consultant who facilitates a monthly support group. The support group is made up of local farmers and service providers. The Focus Farmers set goals around finance, production and lifestyle issues. Sponsorship for the project has come from the Gardiner Foundation, Dairy Australia and GippsDairy. For the Hughes family, mastitis was having the biggest negative impact on all three key issues – finance, production and lifestyle. “I hate mastitis,” Mick says. “My frustration was that I kept getting clinical cases all the time. I had exhausted the knowledge of my local vet, so I contacted (consultants) Rob Moyle and Rod Dyson.” At about the same time, the Hughes’ became the focus of the Willowgrove Focus Farm project, bringing in a wealth of knowledge from farmers around the district. “When we came here we didn’t have a teat spray system, we had bottles, so we made a conscious decision to update that,” Hughes says. “The biggest thing we did was increase our coverage to cover the whole teat with an ample amount of teat spray and we moved to a ready-to-use (RTU).” “The reason behind us going to the RTU was because, according to statistics, 95% of farmers don’t mix their teat spray properly and I would presume I was in that 95%. I know that I cut corners thinking I’m saving a dollar here or a few cents there.”

Along with small, but important measures like more accurate liners on milkers and improved hygiene around the dairy, the Hughes’ have seen a remarkable turnaround in their mastitis situation. “One of the major goals was to get our mastitis down,” Hughes says. We have gone from spending $1000 a month to spending $200 on antibiotics to treat mastitis. “We would usually have four or five cows with mastitis in a herd of 250 to virtually having none now.” Dyson – a vet based in the Goulburn Valley says the key to mastitis control is to understand which bacteria are causing mastitis on a particular farm. Milk cultures showed Strep uberis is the main mastitis bacteria on

IN UDDER WORDS...

Calf scours keeps on costing With spring calving approaching, the last problem you want is calf scours. Calf scours affects animal welfare and farm budgets, often affecting 15-30% of calves with death rates up to 5% or more, even on well managed dairy farms. The cost continues, with many calves recovering from diarrhoea only to experience depressed growth rates from intestinal damage. Coopers® Animal Health Technical Services Vet Damian O’Brien said that while calf scours can occur at any time, calves are most susceptible in the first few weeks of life. “Many factors can contribute – poor hygiene, inadequate colostrum management and persistent high levels of infectious agents in the environment,” he said. “Many producers don’t realise just how much calf scours costs – when reduced growth, calf deaths, diagnosis and treatment costs, preventative programs are all added up, it can really pack a punch. “On investigation, we found that a typical herd of 200 with 18% incidence of calf scours was losing $5200 a year,” he said. Coopers developed an online calculator to help producers assess the impact on their own operation. The true cost of scours: a typical scenario Herd size

200

Average calves per annum

180

Average number with calf scours (18% incidence)

Cost of treatment, including labour, electrolytes and antibiotics

32 x $25 = $800

Average mortality from calf scours

8 Assume: 4 male, 4 female

Lost bobby calf sales

4 x $50 = $200

Replacement heifer cost

SOUTH GIPPSLAND dairy farmers Stuart and Jacqui Tracy have been using a commercial lead feed for more than a decade, considering the cost a profitable investment, even in seasons of lower milk prices. “It pays for itself in extra milk, both increasing the peak and total production. Plus there’s the added benefits of less weight loss in early lactation and fewer metabolic disorders,” Stuart says. Dairy Australia’s InCalf program recommends a transition feeding program for all dairy farms where milkers receive concentrates (grain or pellets). A transition feeding program has several aims. Firstly, it reduces weight loss in late pregnancy by providing the additional energy and protein needed by the developing calf in the final few weeks of pregnancy. Secondly, it prevents grain poisoning in early lactation (and associated weight loss) by offering some of the diet in the form of a concentrate to prepare the rumen bacteria for digesting grain or pellets fed after calving. Thirdly, it achieves the right balance of magnesium, calcium and anionic salts to prevent metabolic disorders such as milk fever, displaced abomasum and retained foetal membranes (RFM). Using a lead feed set up, the Tracy’s aim for higher milk production and better fertility by minimising weight loss in early lactation and metabolic disorders in their 470-cow, autumn calving herd. Their dry cows receive lead feed for two to three weeks prior to calving. They mix the lead feed pellet with a blend of silage, oat hay, bread and almond hulls. About half is fed at the feed pad and the rest in the paddock, where access to pasture is limited to about 3kg DM/day. Some simple changes to the nutritional balance of their transition diet last season resulted in a major reduction in milk fever, which had been a persistent problem on the farm for many years. “Back when I was a kid I think there were seasons when Dad had up to 10% of the herd with milk fever,” Tracy says. “It’s been down to about 4% in the last 10 years with lead feeding, but we wanted to get it below about 2%,” Tracy says. In 2009, the Tracy’s nutritionist and vet, Dr

Stuart Tracy has been using a commercial lead feed system for over a decade.

Who:

Stuart and Jacqui Tracy Where:

Waratah Bay What:

Lactation preparation

Peter DeGaris of the Tarwin Veterinary Group, suggested changing the balance of calcium, magnesium and anionic salts. Milk fever dropped back to about 1% of the herd. “We were delighted,” Tracy says. “It cost practically nothing but saved us heaps in terms of

milk fever treatments, production losses and complications. “The key was working with a nutritionist who was up to date with the latest research.” DeGaris says the Tracy’s experience confirmed the right balance depends on the individual farm situation, and the value of taking samples of the forages that will be fed at the same time as the lead

feed. “In the Tracy’s case their farm is located on the coast so their home-grown feeds are always very high in sodium, and that increases the risk of milk fever,” DeGaris says. “Once we accounted for that in their lead feed formulation, milk fever dropped back to an acceptable level.”

4 x $2000 = $8000

Minus the cost of rearing calves to 2 years old

4 x $950 = $3800

Cost of calf scours per year

$5200 per herd or $26 per cow

Dr O’Brien said that calf scours could be prevented, and its impact reduced by vaccinating cows late in pregnancy to boost specific antibodies in colostrum. “Bovilis® E helps to prevent E.coli scours, whilst Bovilis S aids in the prevention of scours caused by Salmonella,” he said. “Don’t let the cost of calf scours affect your property, there are simple diagnostic options to identify specific pathogens that cause calf scours, allowing better management and long term prevention strategies.” To get advice on diagnosis, prevention and treatment of calf scours, visit www.coopersanimalhealth.com.au or contact Coopers on 1800 885 576 ® Registered Trademark

Commercial lead feed pays for itself

New diseases threaten Australian cattle FOUR EMERGING cattle diseases

are threatening Australian dairy herds according to Australian Cattle Veterinarians Association president (and Dairy News columnist) Dr Rob Bonanno. These are: a fatal cattle liver disease thought to be caused by an annual grass and a plant fungus; lameness caused by hairy heel warts; Haemorrhagic Bowel Syndrome and the growing issue of zinc toxicity. Bonanno says many of these new cattle diseases have become increasingly common due to the extremely wet weather conditions experienced throughout Australia in recent months. “A trend towards larger herd sizes is also correlated with many emerging diseases of importance,” he says. Acute Bovine Liver Disease (ABLD) The cause of ABLD, which has been recorded in WA, SA, Tasmania and

Victoria, is not clear. However, it is associated with warm humid conditions and the presence of an annual grass called Rough Dog’s Tail, which has a specific fungal growth. Bonanno says symptoms of ABLD can include sudden death, severe milk drop, acute abdominal pain and sensitivity to sunlight with marked photosensitisation (sunburn). He says removal of animals from affected paddocks when the first signs appear is critical to prevent new cases and limit the toxic damage to mildly affected animals and aggressive early treatment can save many cows. Digital Dermatitis (Hairy Heel Warts) “This disease has become one of the leading causes of lameness in confinement dairy herds in North America and Europe and is being diagnosed increasingly in Australia,” Bonanno says. The disease is especially preva-

lent on farms that have adopted intensive systems of production. It is caused by exposing feet to a slurry of manure from poor drainage or poor hygiene protocols. Damage to the feet caused by rough flooring or poor pathways wear damage due to sand or poor tracks and maceration of the skin due to wet muddy conditions. “With the particularly wet weather in recent months and a move away from drought conditions, the presence of muddy laneways, loafing areas or feed pads, Digital Dermatitis has become a more frequent issue,” Bonanno adds. “Other risk factors also include large herd sizes especially over 500 head, newly introduced cattle, and larger breeds of cattle such as Holsteins.” Haemorrhagic Bowel Syndrome (HBS) Bonanno says this is being reported with increasing frequency in lactating dairy cattle

in recent years. This sometimes presents as a cause of sudden death, but also sudden milk drop, abdominal pain and loss of appetite. “The exact cause of HBS is not known but risk factors may include rumen and post rumen acidosis, fungal infections such as aspergillus or clostridial bacterial infections.” Zinc toxicity Although rarely seen in Australia, Bonanno says zinc toxicity can be a symptom of use of excessive supplementation in the diet to prevent Facial Eczema or zinc sulphate contamination of feed. “Signs can include anorexia, diarrhoea, chronic constipation, and reduced milk yields.” More severe signs are heart problems and seizures, ill thrift and death. “Young stock often get a relatively higher dose and may be the group that is worst affected,” he adds.

DAIRY NEWS AUSTRALIA // june 2011

animal health

Avoid the animal welfare spotlight I cannot get the im-

ages of those cattle being slaughtered in Indonesia seen on 4 Corners out of my head. The treatment of those cattle by our first world welfare standards is inhumane without question. However, I struggle to accept the argument that simply banning the live export of Australian cattle will achieve anything to improve the welfare of the animals to be slaughtered in Indonesia. The same barbaric treatment will continue. It just won’t be Aussie cattle thrashing around on the slaughter room floor. The footage shown, and the general reaction to the deplorable treatment of the cattle shown on 4 Corners, has reminded me of how far we have come in Australia in regard to our animal welfare standards. However, it has also challenged me when I consider how far we still have to go. The Australian dairy industry via Dairy Australia has invested heavily in programs to improve welfare standards for Australian cattle, but I still question whether we should be even more proactive in implementing standards of best practice. We must all continue to evolve in our thinking to stay ahead of public opinion. Organisations like Animals Australia and Voiceless have animal agriculture in their sights. They are well resourced and take the moral high ground. While I do not agree with their agenda to “liberate” animals, I believe they have a valuable role to play with regard to “pricking the conscience” of the community. Many advancements in the welfare of farmed livestock in the developed world have been initiated by groups like this getting issues into the public arena. They develop changes in both public opinion and awareness, creating the political pressure that results in forced change. As a vet, one of the most important roles that I play is to promote the health and wellbeing of the animals which I treat. For as long as I can remember, economic factors have been used as an argument to justify practices which can impact on the animals in our care. My challenge to you all is that if the harsh glare of the spotlight of an organisa-

tion like Animals Australia was shone on you, could you defend all the practices that you do? I have been told so many times in my career that “the vet is too expensive to call out for this or that”, so things like castration, dehorning and difficult obstetrical assistance is performed without any analgesia or pain relief. We know that lameness and mastitis are painful things for a cow, yet I struggle to convince farmers to make pain relief part of their treatment protocol if I cannot show an “economic return”. Well I would suggest that there is a moral obligation to provide pain relief when painful procedures or problems occur whether there is an economic return or not. If as an industry we do not embrace these treatments we may find that public opinion will turn against us and forced changes will result. Again, I think about the squeeze being applied to the dairy industry by the big supermarkets and worry that they are forcing farmers into a situation where they cannot afford to set the highest standards of animal care as they struggle to simply remain viable. Wouldn’t it be the utopian ideal if the supermarkets actually paid a premium for products produced to a best standard of animal care ideology rather than screwing producers into the welfare corner? When looking at the controversial issue of live export, I cannot help but smile at the irony that it is actually the live export market for dairy heifers that has been the largest contributor to the demise of calving induction in my area. The value of heifer calves has skyrocketed resulting in a change in the economics of late calvers. Calving Induction is one practice that as an industry we must move towards phasing out with the ultimate aim of stopping it (except when there is a therapeutic need.) If we can accept that making pain management and use of appropriate anaesthetics part of our protocols for all management issues that may cause pain for the cows in our care, and stop management practices like calving induction that are difficult to justify to the average consumer on anything but economic grounds, then as an indus-

try we will never need feel the shame that those in the beef industry must surely be feeling at this time. For assistance with developing protocols to deal with pain management in your herd, and to stay ahead of public opinion, contact your local dairy vet for advice.

animal health rob bonanno

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

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DAIRY NEWS AUSTRALIA // june 2011

animal health

Correct living conditions can improve conception rates Genus-ABS European technical director, John Cook, offers common sense solutions for improving pregnancy.

HOW MANY CALVES WILL SCOURS COST YOU THIS YEAR? CTED

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A UK-BASED cattle health and reproduction specialist has told Australian farmers that cows have an amazing ability to fix themselves if given the right environment. Genus-ABS European technical director, John Cook recently visited Australia speaking to 169 dairy farmers from Victoria, NSW and SA, who run a combined total of 62,470 cows. Cook met farmers both on-farm and at off-farm workshops in order to cater for the strong interest in improving pregnancy production. “If we don’t get their (cows) living conditions right, we can be looking at costly disease treatment and emergency nutrition management,” Cook says. “Recent work that has been done globally on fertility in the modern dairy cow is focused on transition health management.” The transition period is considered to be the 21 days before and the 21 days after calving. “The quality of the follicle in the uterus is critical to conception.” Cook says the key to developing a healthy follicle is to get cows, which are undergoing momentous physiological changes during this time, into an eating routine with sufficient dry matter to ensure a positive energy balance. He says the development of the follicle begins 60 days prior to ovulation and timing is everything. Cook’s presentation emphasised the importance of managing the many physiological changes a cow undergoes during this transition period – the lead up to calving, calving itself and post-calving (early lactation). “While she is undergoing critical developmental processes through this period, a pregnant cow quickly becomes a problem eater. She is susceptible to metabolic problems and has low immunity as she experiences too much change in too short a time.”

Cook says in this stressed state, it is little wonder that many cows don’t take in enough feed. Not only can this affect their pregnancy, but it can also lead to playing catch-up with cow condition throughout the following lactation. He says a few simple steps can be introduced to give cows the best chance of maximising their feed intake and getting through the transition period in good condition. The three key ‘living conditions’ for transition cows are: • Stocking density and feed management • Social change • Cow comfort “These three steps apply to all dairy farming – from free-stall barns to grazing systems because a cow is still a cow,” Cook says. “These steps can be done by farmers themselves; they cost very little and they make the biggest difference.” He says the key to stocking density and feed management is to ensure there is enough trough or feed pad space for each cow. Because cows are herd animals they develop a pecking order whether they are in an open paddock, on a grazing block or in a barn. Cook says keep springing cows in the same group and don’t introduce a new group of later calvers. This allows them to settle in with one another; develop their group order and feed with little disturbance. “Cow comfort affects cows’ well-being and temperament and their willingness to feed. A boggy, windswept paddock or one where there is no shade will decrease comfort, increase stress, waste energy and reduce feed intake. “The transition period is as important for reproduction as it is for milk production,” Cook explains. “Break downs in any of the physiological goals can lead to metabolic problems and these can lead to reproductive problems.”

DAIRY NEWS AUSTRALIA // june 2011

animal health

Low induction rates help cow condition MARY WITSEY REDUCING INDUCTION

cycling at the planned start of mating have a 16% lower six-week in calf rate and a 6% higher empty rate. This was confirmed at the demonstration farm last season, when there was a 23% difference in six week in-calf rates, with cows cycling at mating having an early pregnancy rate of 78%, compared to 55% for non-cycling cows. A more condensed calving pattern can also be achieved by selling cows due to calve after 12-weeks. In Southland, this involves many of the older cows in the herd. Those remaining cows that calve later than week nine will be induced, not exceeding the allowable 8% rate for this season, so by calving these cows early it increases their chances of conceiving early and calving early next season, he explains. De Klerk points out that in future it will be

rates is all about maintaining cow condition, mating management and condensing the calving period. That’s the message DairyNZ developer Howard de Klerk delivered at a Southland, NZ Demonstration Farm recently. The body condition score (BCS) of cows at calving and the amount of condition they lose between calving and mating impacts significantly on reproduction rates, he stresses. This in turn affects the calving duration, with late cycling cows often falling outside the target period and forcing inductions. This has been the key strategy for reducing inductions on the Southland Demonstration Farm. Condition lost De Klerk says between calving cow condition and mating impacts must be actively managed significantly on to improve reproduction rates. reproductive performance and reduce necessary to reduce inductions, with the goal the mating period to of calving cows at a BCS between 10 and 12 weeks 5, limiting condition loss to eliminate inductions. in early lactation to BCS Removing the bull from the 1 and having cows at a herd earlier will also assist BCS 4 at the planned start with this. of mating. He says New While synchronising Zealand data shows cows heifers and mating them calving at a BCS 4, instead a week to ten days earlier of 5, are 7% less likely to be than the main mob, to cycling at mating time. give them some extra time Observations on the to start cycling by the demonstration farm planned start of mating, indicate that 34% of cows can also help condense calving at BCS 5 were not subsequent calving observed cycling at the patterns and reduce planned start of mating, inductions. compared with 54% at BCS “This effectively gives 4. Milking frequency can heifers 10-12 days longer be adjusted and silage fed to get back into shape and in late autumn to achieve start cycling.” BCS5 by calving. Maintaining the herd “Otherwise it just goes age structure also has from bad to worse - if she’s implications, with cows late this year, she’ll start around ten years-plus cycling later next season often slower to get into and it becomes a horrible calf. cycle.” “Inductions have been Research from Lincoln a convenient tool, but it’s University’s dairy farm been like the ambulance supports this and shows at the bottom of the cliff. that early calving cows By being more pro-active and heifers have a greater around managing BCS and chance of conceiving early mating management, we and calving earlier next can reduce the need for year. De Klerk also says inductions.” cows that have not started

Key Points • • • • • •

Improve body Condition score of the herd Condense calving period Reduce mating period to 10-12 weeks Synchronise heifers and mate them earlier Utilise 8% inductions allowed this year Maintain herd age structure

DairyNZ developer Howard de Klerk offers strategies for tackling inductions.

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DAIRY NEWS AUSTRALIA // june 2011

machinery & products NSW contractor banks on Welger balers The right choice of

round baler at the right time and the support of an enthusiastic local machinery dealer have paid real dividends for Finley, NSW, hay and silage contractor, Russell Anderson. Anderson’s dad, Len, was born in 1937 on their 100 hectare property on the outskirts of Finley and started contracting in his own right in 1956. Anderson and his brother, Don, who now share the property, still have their father’s original grey Fergie, the 281 New Holland engine-function small square baler and a New Holland number 56 hay rake on the place. Anderson left school at 16 in 1986 to come home and work on the farm where, at that time, they were running beef cattle, sheep and some cropping. In 1996, they sold a nearby 800ha family partnership property and Anderson took the decision to concentrate on his own haymaking and silage contracting business with round bales, while Don focused on large square baling. The McHale silage wrapper that Anderson bought for the business back then is still going strong after 15 years. After a couple of different makes and models Anderson purchased his first Welger RP535 round baler in 2006. “We went into pretty bad conditions with the drought that continued here until 2010,” Anderson says. “But I was really happy with the baler. I chose it because of its heavier duty capability and I still think nothing compares with it.” The Welger RP535 will make round bales from 0.9 metres to 2 metres, said to be currently the largest in

working clothes chris dingle the world. Australian distributor, Lely, claims the round bales ensure a substantial improvement of fodder quality because the compaction process starts right away. Their ‘Constant Pressure System’ ensures consistent density and the different intake systems are renowned for their large capacity. The free running pickup of Lely Welger RP balers has been designed as a result of the increased output from these machines. Improved crop throughput to the bale chamber has eliminated the need for the specific movement of a conventional pick-up. With no cam track the pick-up consists of fewer moving parts to give good reliability and reduced wear. Anderson bears testimony to this. “In 2009 we had a farmer near here with a crop that had been cut for two months and was lying down, weather-damaged. Other balers they had tried couldn’t even start in the crop conditions. “We went in to do 100 bales as a demo, and ended up making 1000. The Welger performed where the others couldn’t.” In 2010 it was time for a new baler and Anderson had no hesitation in going for another Welger RP535, through local dealer, John Shannon at Cobram Farm Equipment.

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The quality you expect at a price that may surprise you Purchase a John Deere tractor from the above range before June 30, 2011 to take advantage of these great discounts. Applicable for new orders from May 1, 2011 until June 30, 2011. Visit www.JohnDeere.com.au/utility or phone 1800 800 981 to contact your local dealer.

lucerne we’d average 15 to 17km/hour. “We would make about 10,000 round bales in an average year, if we could ever get one. This year so far, with the good rains, the Welger has done

some ryegrass hay. “What I like about the Welger is that you basically hook it up and go”, he says. “Turn it on, hit the PTO switch and it’ll start in any conditions.” The baler is set up for net wrap only, no twine, and Ander“What I like about son says he likes consistency of the Welger is that you the the solid bales that basically hook it up he gets all the time. Anderson’s conand go.” tracting business, R F & T L Anderson 16,090 in 303 hours of Hay and Silage Contractoperation.” ing, operates within a That equates to 53 bales radius of 50km from his an hour which Anderson home base – mainly silage says is pretty good going. It for dairy farmers, plus has mainly been in heavier some beef producers and cereal crops for silage, plus haymaking.

He looks after the whole process; cutting, raking, baling and wrapping, and manages most of the advisory side of hay and silage-making, deciding the best time in consultation with his clients. “I’d rather do the whole procedure for my customers, that way there is noone else to blame. “I don’t particularly like wrapping some other contractors’ bales. Having said that, occasionally farmers will cut and rake their crop themselves, and we come in to do the baling and wrapping.” This year he has just purchased a new MF1372 mower/conditioner – “I had one before and I

12% off RRP^

5E Limited & 5M Augusta Series Tractors – 83 to 105 engine hp* (60 - 78 kW) – Economy PTO setting saves fuel & wear * The engine horsepower information is provided by the engine manufacturer to be used for comparison purposes only. Actual operating horsepower may be less. ^ At participating dealerships. Pre-delivery and freight charges are additional. Images are for illustration purposes only; not all implements or attachments shown are available with the advertised discount. This discount offer is not available with any other offer.

couldn’t fault it” - and he has a locally-built Berrima hydraulic roller bar V-rake. He also does some contract sowing for dairy farmers from mid-February to June. For that he has a Duncan 19 run seeder, a 3 metre Great Plains triple disc seeder and a 4.5m John Deere 1590 single disc seeder. “Around here they put in ryegrass and clover, then lucerne, then cereals.” Working clothes will focus on the performance of a new machine in the paddock each month. Send suggestions to Chris Dingle on 0417 735 001 or email chris@springbankfarm. com.au

8% off RRP^

5R, 6030 & 6030 Premium Series Tractors – 80 to 155 engine hp* (59 - 114 kW) – 4 & 6 cylinder models

DAIRY NEWS AUSTRALIA // june 2011

machinery & products

New John Deere utility tractors John Deere has released a new line of

utility tractors ranging from 45-105 horsepower (33-78 kW) to enable farmers to match the right horsepower and configuration for the task at hand. The 5D and 5E Series range in horsepower from 45–75 (33-56 kW) - the 5D Series is only offered with a two-wheel-drive (2WD) axle compared to the 5E which offers 2WD or mechanical-front-wheel-drive (MFWD) configurations. These open station tractors feature synchronised transmissions designed for smooth shifting and easy-to-reach, colourcoded controls for simple operation.

The more powerful 5E Limited Series Tractors range in horsepower from 83–101 hp (61-75 kW) and have more deluxe features including a cab, PowerReverser transmission, wet traction clutch, and MFWD axle. The 5M Series Tractors range in horsepower from 65–105 engine hp (48-78 kW). These higher-end machines feature new transmissions, increased lift capabilities, more stability for larger implements, and a new operator environment for increased comfort and productivity. 13280_Astronaut DN_Layout 1 16/02/11 9:53 AM Page 1 To mark the launch, John Deere will offer discounts on all new purchases until June 30. Tel. 1800 800 981

JCB to release new 8000 Series Fastrac JCB will soon release its spreading applications. Michael says the new new generation 8000 Series Fastrac tractors to the 8000 Series Fastrac will be more fuel efficient and quiAustralian market. The new tractor will eter despite higher horseinclude a new engine, im- power engines. Roach says the success of proved fuel economy and a JCB comes down to the allhost of other new features. The announcement was round suspension, braking made by JCB’s UK-based and related safety at high worldwide Agriculture speed, as well as the ride Product and Marketing comfort. “These are all compoManager, Ed Roach, on a recent visit to Australia, nents that you don’t get in where he met dealers and standard front wheel assist tractors.” customers. He says JCB introduced “The new generation 8000 Series Fastrac will offer improved functionality and The 8000 Series user-friendliness,’’ Fastrac will be more Roach says. Roach says the fuel efficient and Australian agriculquieter despite higher tural market is vital for JCB’s Fastrac horse-power engines. tractors and materials handling products and the meetings with the outboard brakes, full dealers and farmers help suspension, high speed and improve the understanding excellent comfort and tracof where the tractors have tion in the tractor market been particularly success- with the release of the Fasful and their suitability for tracs 20 years ago. “Other major manufacfuture applications. Brad Michael, of JCB turers have now almost fuldealer Michaels of Moama, ly endorsed those features, Victoria, says the high focusing on improved susspeed and suspension sys- pension and cab suspentem of JCB tractors appeal sion, as well as better braking.’’ to their clients. Roach says JCB recognis“What comes with the nicer suspension system es there are strong opporis better braking, comfort tunities for future growth and safety, particularly in the Australian agriculthe safety at high speed,’’ ture market, not only continuing in the spraying and Michael says. He says his dairy clients spreading sectors, but also hitch Fastracs to mixer in more mainstream farming applications, as well as wagons. Further south, modified in forage crops, baling and “stretched’’ JCB Fastrac other high speed operatractors kitted up with bins tions. Tel. 1300 JCB CEA. are proving popular for

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DAIRY NEWS AUSTRALIA // june 2011

machinery & products

PFG Australia releases new mowers, conditioners PFG Australia has launched new equipment to their dealers in preparation for this year’s hay and silage season, according to the company’s grass equipment sales manager, Tim Lawrence. The new Taarup 4300 series mower/conditioners range have revised suspension, a stronger driveline and new styling. They will be available in 3.2m or 3.6m working width with centre or side pull. Their new Vicon Extra mowers have a fully-weld-

ed cutter-bar and 2.8m and 3.2m working widths. It’s a little early yet for their demo program but to find out about your nearest dealer contact them at 03 9368 8888.

Astronaut reduces milk cell counts Tasmanian farmer

John van Adrichem attributes part of his success in reaching the top 5% in the Dairy Australia milk quality awards to his Lely Astronaut automated milker.

new products chris dingle The milk quality awards recognize the lowest bulk milk cell count figures in the country and van Adrichem gives credit to his advanced computer

records since installing two Lely Astronaut A4 robotic milking units in October 2009, at the time making provision for a third, which has since been installed. “Overall the Astronaut is a cow friendly milking and hygienic milking process, which in turn gives more milkings per cow,” he says.

John Deere, Kuhn combine John Deere and the

Kuhn Group have announced a strategic co-

Kuhn will produce large square balers under the John Deere brand.

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division. Jason Lummis will be based near Echuca and will look after Victoria, Tasmania and parts of NSW. His main focus will be on the Great Plains and Simba models and we hear that demos are being organized at the moment. Contact PFG Australia on 03 9368 8888

Think equipment needs now Talking to John Shannon of Cobram Farm Equipment on the border of Victoria and NSW, he reinforces our message in last month’s column about getting in machinery orders, from the dealers’ point of view. “The hay and silage job has turned around overseas and I believe that the gear will not be freely available out here for this season. Farmers need to be actively thinking now about what they need,” Shannon says.

Machinery sales quiet Alan Kirsten from

PFG expands southern team

the tractor and machinery reporting service, Agriview, says that the industry has been fairly quiet over the last month. “There has been plenty of tyre-kicking, but not much in the way of orders. We haven’t seen much change from last month and don’t expect to see a lot of deliveries in June.” Kirsten says prices haven’t changed and good deals are being done, but the distributors report that a lot of purchases are destined for 2012 delivery. He also says we are feeling the impact of the Japanese tsunami right now through wholegoods and parts shortages for some brands. The temporary cessation of parts production means that the situation will continue through July.

PFG Australia has welcomed on board a new sales representative in their Grass & Cultivation

Contact Chris on 0417 735 001 or email chris@ springbankfarm.com.au

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operation on large square balers. The agreement calls for Kuhn to manufacture John Deere-branded balers for John Deere customers in Europe, CIS, Northern Africa and the Near and Middle East. John Deere will acquire an intellectual property license from Kuhn, so John Deere can use the large square baler design worldwide and adapt it to customer requirements in other markets. A John Deere spokesman says the agreement allows the company to expand its hay and forage product portfolio to better serve its dairy and livestock customers as well as the contractor and commercial segments. A Kuhn spokesman says the agreement will enable Kuhn to increase its manufacturing capacity and efficiency, and continue to develop reliable large square baling solutions meeting the requirements of satisfied Kuhn customers worldwide.

It’s good to see an agri-

cultural company among the winners at the annual Innovation Australia Showcase awards, held at the MCG. Ballarat-based ag spraying manufacturer, GoldAcres was recognized for their innovation in industry.

Kymco offers winter bonus As winter takes hold, it’s a good time to rug up when you’re outside and ATV distributor Kymco is offering a $500 Driza-Bone gift pack to purchasers of their MXU or ATV models. But you only have until the end of June to get in on the deal.

DAIRY NEWS AUSTRALIA // june 2011

machinery & products

Specific to mid-range MASSEY FERGUSON has added four new tractors (82-107hp) to its big-selling MF 5400 series. These “completely new tractors with innovative design features, are specifically to provide the power, performance and economy needed by operators in the mid-range sector,” says Agco general marketing manager Shane Snijders.

“They are not simply updates to existing models. They are truly new… in our most popular sector where we have unrivalled experience. “We’ve consulted extensively with customers. Now we’ve introduced four new, agile tractors… with superb powerto-weight ratios, excellent visibility and novel features ideal for loader work.” Snijders says the company has taken successful features, such as the Dyna-4 t r a n s m i ssion, and re-engineered them to suit

precisely the customer requirements for this size and type of tractor. “This means the MF 5400 series models offer the best combination of manoeuvrability, stability, visibility and access, with lively performance in yards, on roads and fields.” Power ranges 82-107hp from a Perkins 4.4L, 4-cyl. 1104D-44T mechanical injection engine with high visibility bonnet. Maximum power is at 2000rpm and “impressive torque” at 1400rpm – lower engine speeds, and less fuel consumption and noise. A new transaxle developed for these tractors has “optimised and flexible” Dyna-4 transmission ideal for sub110hp tractors; novel front axle support housing; optional 1.8t integrated front linkage system; new rear axle exclusive to these tractors; rear linkage optimised for tractor size with electronic linkage control; electro-hydraulic PTO speed selection with 540/540E/1,000 speeds; high-comfort spacious cab with suspension option. Tel. 03 9313 0313

ProGibb SG can fill winter feed gap THE SUPPLIERS of ProGibb SG cations indicate an increase of pasture Smartgrass claim it solves the problem dry matter ranging from 324Kg DM/ha to 1250Kg DM/ha when pastures have of filling the winter feed gap. Sumitomo Chemical says ProGibb enough nutrition and soil moisture to SG prevents farmers from having to in- sustain rapid growth over a short pecrease supplementary feeding over the riod. Spokesman Brett Ryan says sales of cooler months, when filling the winter ProGibb SG have grown as more dairy feed gap is a traditional problem. farmers make it a ProGibb SG is a standard part of plant growth regutheir pasture manlator (PGR) for pasagement program. Sumitomo Chemical tures. “Given that By augmentsays a single dairy farmers are ing the natural the undisputed level of gibberel- application can lins contained in generate 30-60% more leaders of intensive pasture proplant tissue, Sumiduction, it isn’t tomo says it makes dry matter within surprising that leaves grow longer three weeks. they have seized and faster, thus on the advantages creating signifiof ProGibb SG on cant gains in dry both sides of the matter yield. The company says a single, low-cost Tasman,” Ryan says. “Now that the product is being application can generate 30-60% more dry matter within three weeks of ap- commercialized in Europe, North and South America, those with interplication. “ProGibb SG increases the dry mat- national connections may also start ter yield without lowering the nutri- to receive phone calls from overseas tional value of this extra feed,” the dairy farmers wanting to know more about this innovation from down uncompany says. Sumitomo claim that commercial der.” Tel. 1800 060 671 demonstrations of ProGibb SG appli-

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DAIRY NEWS AUSTRALIA // june 2011

motoring Aussie Muscle Cars Shine A 1971 Falcon XY GT owned by the same

Jeep Patriot makes its Australian debut The new 2011 Jeep Patriot compact sport-utility vehicle (SUV) is now available in Australia. Jeep Patriot’s classic exterior styling and capability have been enhanced for 2011 with new front and rear fascias, lower bodyside accent cladding, a revised grill and an increased ride height. The Patriot offers customers outstanding capability with features such as brake traction control, Hilldescent Control, 4x4 Lock shift-onthe-fly which sends 50% of torque to front and rear wheels, and a maximum tow rating of 1500kg. The Jeep Patriot also boasts an upgraded suspension for 2011, including increased diameter of the rear sway bar. Despite these numerous capability features, the 2011 Jeep Patriot boasts impressive 4x4 fuel economy in its segment. Freedom Drive is Patriot’s stand-

The 2011 model Patriot will sell in Australia from $30,000. ard full-time, active four-wheeldrive system with lock mode designed to give drivers year-round assurance with the ability to handle rough weather and low-traction conditions. This active four-wheel-drive system is recommended for daily use, including slick conditions that come with gravel or rain. Freedom Drive also features a lockable centre coupling, giving drivers the ability to put the Jeep Patriot in four-wheel-drive lock mode to handle sand, deep snow and other low-traction surfaces. Patriot features a standard 2.4-li-

tre engine that produces 125kW and 220 N.m of torque. This engine has dual variable valve timing (VVT) on both intake and exhaust camshafts, which helps optimise the torque curve at all speeds and produces more power, better fuel economy and a smoother, quieter operation than engines without dual VVT. When paired with the five-speed manual, Patriot’s economy records 8.4L/100km combined cycle, with economy of 6.7L/100km on the highway. Patriot’s CVT also improves vehicle performance compared with a traditional automatic transaxle because of optimised gear ratios, especially in the 60–100 km/h range during passing manoeuvres. The new Jeep will sell in Australia from $30,000 for the 2.4l five-speed manual, excluding government charges and dealer delivery.

Truline Postdrivers

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family since almost new was the top-selling vehicle in Shannons Melbourne Winter Auction on Monday May 23, bringing $90,000 after being offered with no reserve. The very original and largely untouched Bronze Wine Metallic GT with an indicated 38,138 miles on its odometer saw frenetic phone and floor bidding from the large crowd that braved wintry weather to attend the Cheltenham, Melbourne sale. Meanwhile in another great result for Aussie Muscle Cars, a very rare and striking March 17 Green 1972 HQ GTS 350 fourspeed manual coupe sold for $77,000 after equally keen bidding, a white 1973 HQ GTS 308 automatic sedan sold for $29,000 and a Mint Julip Green 1976 four-speed manual Holden LX Torana SL/R 5000 sedan sold with no reserve for $24,000. American Muscle Cars also performed well, with a left hand drive 1969 Ford Mustang Mach I Fastback bringing $45,500, a 1971 Pontiac Formula ‘Replica’ Coupe selling for $24,000 and an original, red left hand drive 1966 Ford Mustang ‘A Code’ Coupe going with no reserve for $19,000. Classic British luxury marques also did very well, with a fully restored 1966 Jaguar Mk 2, 4.2-litre saloon and extensivelymodified to ‘Coombs standard’ selling for $51,000, a 1991 7-seater Daimler DS420 Limousine that was recently refurbished

This very original and largely untouched 1971 XY GT Falcon was the top-performing lot of Shannons May 23 Melbourne Auction, when it sold with no reserve for $90,000.

after being in long-term storage selling with no reserve for $34,000 and a beautiful, restored 1950 Bentley Mk VI saloon that was originally delivered to Norman Robertson of MacRobertson’s Chocolates offered with no reserve fetching $27,000. Amongst the sporting classics, a very desirable three-owner, Australian-delivered 1969 Porsche 911T 2.2 Coupe fitted with a factory sunroof and sought-after Fuchs forged wheels sold for $50,000. Stepping back in time, a recently-restored 1929 Packard 626 ‘Standard 8’ Rumble Seat Coupe sold for $65,000, a lovely and genuine 1928 Studebaker Erskine Coupe sold for $18,000, a recently-recommissioned right hand drive 1933 Chrysler CO Sedan that was formerly used as a wedding car made $17,000 and a 1957 International AS130 Flat Bed Truck made $14,000. Amongst the classic motorcycles on offer, a unique 1950s Norvin 500 custom that combined the engine of a 500cc Vincent Single with a Norton gearbox in a Norton Featherbed frame sold for $30,000, a very original 1972 T150 Trident 750 with stunning purple and white paintwork brought $13,500 and a rare 1964 Gilera ‘Sei Giori’ Speciale 124cc racing bike with matching numbers sold for $5500. Shannons National Auction Manager Christophe Boribon attributed the strong results of the auction to the quality of the classics and the wide range of no reserve vehicles on offer.

Hyundai Santa Fe named best SUV Australian specialist magazine, OzRoamer

4WD & SUV Guide 2011, has awarded the Hyundai Santa Fe R-series Car of the Year 2010 Best Medium AWD SUV in its Car of the Year Awards. The Santa Fe scored maximum points in the areas of performance, practicality, fit for purpose and value for money. Up against larger 4WDs and AWDs, the Santa Fe excelled in tackling rugged terrain and a breadth of towing assignments, and achieved the all-important family stamp of approval with its spacious sevenseat interior, versatility and raft of practical features. OzRoamer 4WD & SUV Guide editor, Rob Frazer, says the Santa Fe’s off road capabilities were surprising. “We’ve taken it away

with a Prado and a Discovery and the Santa Fe absolutely held its own. “In short it’s pretty good. We have towed trailers, filled it with teenagers, driven on beaches, forest trails and off-road and it came up trumps each time with no fuss.” Santa Fe R-series is fitted with a powerful yet economical 2.2-litre Rseries diesel engine mated to a six-speed automatic transmission featuring Selectronic gear selection. Producing 145kW of peak power and a maximum torque of 436Nm between 1800rpm and 2500rpm, the overall result is a smooth ride with ample power to tackle any task. “With the awesome turbo diesel engine and

6-speed transmission combination, it should be at the top of buyers’ lists for an honest and practical family AWD SUV,” Fraser says. All Santa Fe models come complete with a full suite of safety features, both active and passive, earning it the maximum 5-star safety rating in the ANCAP assessment program. Standard on all model variants are Electronic Stability Control (ESC), which includes Hyundai’s Traction Control System (TCS), driver and front passenger airbags, dual side front (thorax) airbags and front and rear passenger side curtain airbags (which extend to the third row); and rollover sensors.

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