DNA Issue 18 2011 by Rural News Group

Murray Goulburn backs Tasmanian processing plant Page 3 New ADF president rolls up sleeves Page 7

John Deere upgrades 6R series Page 32

issue 18: september 2011

The Great Divide Demand for southeast milk, but problems elsewhere PAGEs 4-5

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DAIRY NEWS AUSTRALIA // september 2011

NEWS This issue Issue 18: september 2011 Tasmanian farmer Michael Palmer’s new effluent distribution system produces cheap fertiliser.

Northern Victorian farmer Ashley Galt has modified the family farm to prevent lameness.

Western Victorian farmer Oliver Carson’s new Kubota RTV500 powered over wet winter paddocks.

News ��3-15 Opinion ��16-17 Agribusiness ��18-19 Management ��20-24 Animal Health ��25-29 Machinery & Products ��30-33

Murray Goulburn will be the majority stakeholder of the proposed Tasmanian Dairy Products processing facility in Smithton, northwest Tasmania. Construction at the former Gunns Ltd site is set to begin soon, according to the companies, and when complete will process raw milk into dried milk products for export into Asia and the Middle East. The new plant based in Tasmania’s largest dairy region is expected to boost milk production across the state, making powdered dairy products from 150 million litres of milk a year. TDP plans to adopt elements of a co-operative structure, providing an investment offering for local farmer-suppliers. TDP CEO Greg Pollack said Murray Goulburn’s investment was vital for the long-term success of the Tasmanian dairy industry. “Not only does it provide the backing of a large Australian icon, but it also gives Tasmanian dairy farmers the confidence they need to invest in growing their milk production,” he said. Outgoing Murray Goulburn Chairman Grant Davies has told MG suppliers the investment provides access to a growing milk supply region, access to ingredients to meet growing demands from key customers, and operational benefits. “MG will market all the products from the new factory on behalf of TDP which means MG can meet growing customer demand and also reduce marketing costs for the venture,” Davies said. “While TDP will be operated independently, MG will hold a majority stake in the venture and will therefore have a strong say in the company’s strategy and operation. “Operating a facility like TDP is part of MG’s core skill and we will work very closely with our investment partners and importantly Tasmanian dairy farmers to ensure the new venture’s success.” MG has been investigation expansion opportunities in Tasmania since it bought the Classic Foods business at Edith Creek in 2007. Davies said MG had to be confident it could enter in a way that maximized opportunities for success. “We are confident that the TDP joint venture model can do this by attracting the support of

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Murray Goulburn backs new Tasmanian plant

Tasmanian Farmers and Graziers Association Dairy Council Chairman Andrew Lester says Tasmanian farmers are excited at the prospect of extra competition.

local dairy farmers and the support of local and international investors. “Tasmanian milk production has been growing solidly in recent years and this is forecast to

Murray Goulburn will market all the products from the new factory on behalf of Tasmanian Products. continue. Consequently new processing capacity is required in the state. “The new joint venture’s investment is a signal to Tasmanian dairy farmers that demand for dairy products is forecast to remain strong, that milk supply growth in Tasmania will have

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a place to be processed and will be sought after in the market.” The investment follows announcements in recent months by National Foods and Fonterra that they will also expand their Tasmanian operations and seek more milk. Tasmanian Farmers and Graziers Association Dairy Council Chairman Andrew Lester said Tasmanian farmers were excited at the prospect of extra competition in the market. “The State has so much scope for growth,” Lester said. “There is water available and land for conversion to dairying so the state has the ability to grow and meet demand. “It will give the industry more confidence moving forward.”

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DAIRY NEWS AUSTRALIA // september 2011

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Southern farmers to boost production National milk production is expected to improve this financial year on the back of good seasonal conditions and better opportunities for profitable production. Dairy Australia has forecast a 1.5% increase in 2011/12 national milk production to 9.25 billion litres on the back of a wet year in Gippsland and southern Victoria, good seasonal conditions and replenished water allocations in northern Victoria and renewed export demand. The September Situation and Outlook update says profitable production should see momentum build in coming months, particularly in the south. Dairy Australia Manager, Strategy and Knowledge, Jo Bills, says international demand for dairy products remains strong, supported by China, Asia and the Middle East. “China will continue to be an

important driver of dairy demand in the outlook period in two ways,” Bills says. “Directly, through imports of whole milk powder and other dairy ingredients, and indirectly, by supporting economic growth in the region and the wider global economy.” Dairy Australia’s forecast range for southern farmgate prices remains at $5.10-$5.50/kg milk solids, or an estimated 39 to 42 cents per litre. However, given the softening in commodity prices and the strengthening of the Australian dollar since the forecast was made in May, expectations are now at the lower end of the range. “While this price outlook is down on final 2010/11 payments, improved seasonal conditions and lowered feed costs should preserve profit margins, making the current season one of consolidation for most dairy farmers,” Bills said.

Dairy Australia’s forecast range for southern farmgate prices remains at $5.10-$5.50/kg milk solids. A Victorian Department of Primary Industries survey of dairy farm profitability has revealed a return to form after a sustained period of low milk prices and more than a decade of drought in northern Victoria. The 2010-11 Dairy Industry Farm Monitor Project found last financial year was the best for dairy farmers since 2007-2008. As part of the report, which was commissioned by the Victorian Government and Dairy Australia, DPI surveyed 74 farms across the state’s

three key dairy regions of northern Victoria, southwest Victoria and Gippsland. The survey found earnings before interest and tax across the three regions had surged from 65c/kg MS or $507/ hectare in 2009-10 to $1.73/kg MS or $1260/ha in 2010-11. Earnings before interest and tax (EBIT) in northern Victoria increased from 20c/kg MS or $153/ha to $1.52/kg MS or $1172/ha in northern Victoria; 80c/kg MS or $713/ha to $1.96/kg MS or $1582/ha in Gippsland; and 91c/kg MS or $622/ha to $1.71/kg MS or $1022/ha in southwest Victoria. Rabobank senior analyst Michael Harvey says Australian farmers must capitalise on current conditions to meet these rising export demands. Harvey said Australian milk production had fallen from a peak of 11.3 billion litres in 2000/01, reducing the amount available to export to four

billion litres. “Australia is facing pressure from its dairy export customers to grow and questions are being asked about its future dependability as a supplier,” Harvey said. “And with demand for dairy rising globally, the pressure on Australia to increase its supply to meet these export needs is only likely to grow.” Harvey said an increasing world population and improving incomes, together with the growing popularity of dairy products, particularly among developing economies, will fuel international demand. “The global dairy market has also undergone an important structural shift meaning global dairy commodity prices have moved to higher average trading ranges. “This will manifest along the supply chain into higher average farm gate prices.”

Good season fuels optimism The decline in national milk production over the past decade coincided with the drought that gripped Northern Victorian farmers. But now those farmers have full water allocations and good seasonal conditions following a wet summer and timely rain in August and are considering their options. Andrew Lostroh, with his wife Cathy and mother Helen, is currently running 280 milkers at Blighty in the NSW Riverina. He described the current season as the best in a long time, saved by the best August rain on the property in 10 years. “We had a dry spell mid-winter and I was thinking, here we go again,” Lostroh said. “I was a bit nervous but it game good just in time.” Some warmer weather will help the ryegrass respond and Lostroh believe he will be cutting

by the end of the month. “We will try and cut as much silage as we can and focus on quality. We all went for quantity last year but we can afford to concentrate on quality this year.” The good season has allowed northern Victorian farmers to consider their options this year – a rarity in the past – with some deciding to buy in heifers and others concentrating on putting quality feed away for summer to lift production within the existing herd. Farmers also have the option to retain heifers with better milk prices helping cash flow. Demand for export heifers last year proved tempting to those short of cash and feed. Kyabram-based dairy consultant Ian Gibb, Farmanco, said recent auction prices for replacement heifers suggest some farmers have been competing to rebuild.

However, he said more farmers prefer to build from within rather than buy. “There are significantly more reluctant to buy fresh stock. Most like to build with their own replacements, meaning herd growth will be slow.” In an update of the FebruaryMarch National Dairy Farmer Survey conducted in late August, 60% of farmers contacted described their season as “about where they would like it to be”. The survey results highlight significant regional differences, while 94% of Murray Dairy region farmers (northern Victoria/ Riverina) are happy with the season, just 34% of western Victorian farmers are enjoying favourable conditions. Although Gippsland and western Victorian farmers are currently sodden underfoot, dry days will bring on a prolific season.

Blighty, NSW, farmer Andrew Lostroh says timely autumn rain saved the season.

DAIRY NEWS AUSTRALIA // september 2011

news

Fresh milk states savaged by price cuts The supermarket milk price war continues to wreak havoc on farmgate returns in the fresh milk-reliant areas of WA, northern NSW and Queensland. The Australian Dairy Farmers and the Queensland Dairyfarmers’ Organisation have both tabled new evidence to the Senate Inquiry into milk prices. ADF president Chris Griffin said dairy farmers in Queensland, northern NSW and Western Australia are being hit hard by the discounted milk, which was slashed to $1/litre on January 26. “In Queensland alone over twenty farmers have left the industry since the price war started, with many citing the impacts and poor outlook due to the supermarket milk price war as a key contributing factor in deciding to exit the industry,” Griffin said. Griffin said one group of 185 Queensland farmers, who supply Parmalat, have lost $767,000

Parmalat, reveal farmers are being asked to take a drop in farmgate price of 3‐4 cents per litre for new contracts to supply milk to a major supermarket home brand contract won by this processor. Analysis of ABARES Farm Survey data indicates that average NSW farm profit per litre over the past 10 years has been just 1 cent per litre. Over 20 Queensland “A 3‐4 cents per litre farmers have left the cut in farmgate price render the vast industry since the price would majority of NSW farms war started. supplying the drinking milk market unprofitA second group of farmers able and be catastrophic for the suppling processor Lion (for- industry in NSW. “Nationally, it has been conmerly National) had a slight increase of 1-2% in farm gate price servatively estimated there is the potential for an annual loss in their new contracts. However, QDO president Bri- of at least $227 million from the an Tessmann said this followed value chain with consequent a farm gate price cut last year of impacts on farm gate prices.” Griffin said an analysis of the between 15-20%. Griffin said reports from the impact of the $1/litre pricing on early stages of current negotia- the Western Australian dairy tions between NSW farmers and industry value chain undertakin payments over seven months due to the increase in sales of home brand milk, which is directly related to Coles’ unsustainable price discounting. “If this impact continues the group could collectively lose more than $1.5 million this year.”

Queensland dairy farmers protest at the price cuts earlier this year.

en for the Western Australian Farmers Federation (WAFF) has estimated that the discounting will take $25.2 million per year out of the Western Australian milk value chain. “The price cuts are unsustainable and the plain fact is milk priced at $1 per litre does

NSW dairy industry under threat Dairy Farmers Milk Co-operative (DFMC) has raised concerns about the viability of the NSW dairy industry based on its rival Parmalat’s approach to securing milk to fulfil the Woolworths private label contract. Parmalat recently won the contract to supply Woolworths’ house brand drinking milk products in NSW. This contract was previously held by Lion (formerly National Foods), which sourced more than 100 million litres of milk from DFMC members in NSW to supply Woolworths. Parmalat has been accused of attempting

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to source milk directly from farmers, rather than through Lion and DMFC. It has rejected suggestions it will source milk from its Victorian suppliers. DMFC has 320 dairy farmer members in NSW who produce over 360 million litres of milk annually. DFMC Chairman Ian Zandstra said DFMC farmer suppliers in NSW are facing a 30% reduction in milk destined for supermarket shelves but the co-operative believes this situation could be significantly improved if Parmalat decided to secure the milk they need at a competitive price from the NSW milk pool.

All NSW DFMC suppliers are under contract to DFMC and have a guarantee of milk off-take for all the milk they produce from Lion. However, the amount paid under the Tier 1 price is likely to drop to 70% as a result of Lion losing the contract. Zandstra said DFMC estimates drinking milk has a fair market value of 47 cents/litre plus additional incentives of about 4 ½ cents/litre this season and that any payment offered by Parmalat less than this would be detrimental to the industry. “DFMC will be looking to offer all NSW suppliers new trading terms in the coming month once we

have a clearer understanding the situation in the NSW market,” Zandra said. “We recommend NSW milk suppliers consider all of their options, including the 2012 allocation and DDFMC contractual terms before deciding how to allocate their future milk supply.” NSW consultant Dr Neil Moss said farmers looking at moving milk processors needed to evaluate their options and closely scrutinise milk prices, including regional and volume incentives and take into account when DFMC’s tier-two milk pricing “kicked-in” for their business.

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not bring in enough money to support farmers, processors and retailers. The evidence shows it and Coles knows it,” Griffin said. Tessmann said the dairy industry has put forward sensible and realistic recommendations to address the current problems, including a mandatory whole of

supply code of conduct headed by an ombudsman, strengthening the Competition and Consumer Act and forcing the ACCC to use its price monitoring powers over five years. Submissions to the Senate Inquiry close at the end of the month.

Different markets fuelling division NSW and although levels Dairy farmers in south were a bit better in QueensEast Australia feel bullish land compared to the last about the industry while the survey they had just been hit confidence of those in WA, by floods and bad weather. northern NSW and Queens“The divide in people’s atland has fallen. titudes is noticeable – you’re These observations were global impact comparing those looking at made in Dairy Australia’s joanne bills a strong export market and August Farmer Survey, as those with a slow growing part of the Situation and domestic market with not much room to Outlook update released this month. Dairy Australia Manager, Strategy and move.” When asked what their major challenges Knowledge, Joanne Bills said the growing divide between the regions first detected in were for the next six months, southern farmers said seasonal conditions and the May S&O report remained. Bills said farmers in the drinking milk northern and WA farmers said the milk districts were less confident about the fu- price. “We are focused on (the milk price) as ture of the industry compared to southern an industry and that’s undermining confifarmers who supply milk for export. “Confidence has dropped noticeably in dence in people.”

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DAIRY NEWS AUSTRALIA // september 2011

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Norco finds strength in diversity Gordon Collie Norco is one of two dairy processing cooperatives remaining in Australia and its chairman, Greg McNamara, says the business structure will not change anytime soon. McNamara is unfazed that after a spate of multi-national investments in the Australian dairy sector, Norco, established in 1910, and Murray Goulburn remain the only businesses where farmer shareholders control their own destiny. There were dark days in the late 1990s when the northern New South Wales-based cooperative was vulnerable, but now McNamara is looking confidently ahead. “The co-operative is commercially focused and planning 5 to 10 years

ahead to drive our business into the future,” McNamara said. After 15 years on the board and 12 as chairman, he is confident that succession planning will result in a smooth transition of leadership. “We have actively invested in training and education for our directors and the next generation of talented young farmers who will be potential directors in the future.” McNamara said the litmus test that the co-operative had its business model right was the loyalty of its suppliers. “We haven’t had anyone leave for a couple of years and at the moment there are farmers wanting to join Norco. We’ve taken on four or five new suppliers this year.” The cooperative is looking for commitment from newcomers who meet selection criteria, with three year supply

contracts offered Norco draws its milk supply, which jumped to 143 million litres last year, from 165 farms spread from Kilcoy in Queensland to Dungog, north of Newcastle. The co-operative turned a profit of $4.1 million last year. About $3.5 million of this was reinvested in the business with the balance returning shareholders a 5.6% dividend. It has a diversified base with a chain of 24 rural stores and a wholesale merchandising arm now comprising about one third of the business. There is also an agribusiness group comprising stockfeed and pet food manufacturing. The core dairy business operates milk processing plants at Raleigh, near Coffs Harbour and at Labrador on the Queensland Gold Coast and ice cream manufacturing at Lismore. After many years of joint venture operation, most recently with Parmalat, the Queensland processing plant returned to full Norco control in 2007. McNamara said the ice cream business acted as a buffer to soak up surplus

we are enjoying. “If farmers have to start irrigating and buying in feed, you can easily add 5 to 7 cents a litre to production costs.” Norco enjoyed great brand loyalty and had been relatively unscathed by the supermarket discount price wars with less than 2% of sales affected in markets from the Sunshine Coast to Sydney. Given the co-operative’s close business relationship with Coles, he was circumspect in his comments on milk price discounting. “The thing I find disappointing with milk being treated as a cut price commodity is the lack of awareness that we are supplying a world class product. This is not reflected back in farmer returns,” McNamara said. He said Norco did business with all the supermarket chains, including newcomers such as Aldi, to ensure the widest possible customer base. The cooperative has a commercial arrangement with Fonterra to handle all fresh milk distribution and marketing as the cornerstone of its business. Sales through Fonterra, which won the Coles supply contract in Queensland, grew strongly last year by 5.3%. McNamara said he did not see any threats to the Norco cooperative model on the horizon. The number of young farmers coming into dairying in the region – including his two sons – was encouraging. “Young producers have a vested interest in maintaining a strong co-operative as the foundation to build their own dairy enterprises into the future,” McNamara said.

“We haven’t had anyone leave for a couple of years and there are farmers wanting to join Norco.” milk production. Most milk volume for ice cream was delivered in peak supply months from July to February. Norco would manufacture about 42 million litres of ice cream this year for sale throughout Australia. About 15% of product is exported to markets including Japan, Taiwan and the USA. While the high Australian dollar is not doing exporters any favours, McNamara believes ice cream sales have good growth potential. The cooperative paid suppliers an average of 53 cents a litre for their milk last year and the result would be similar or slightly better for the current year. “I’d like to see a price closer to 55 or 56 cents, but the benefit this year has been lower farm costs with the good season

Commercial focus applies to farm Greg McNamara applies the same commercial focus to his family at Goolmangar, north of Lismore, NSW, as he does at the helm of Norco. Cost efficient dairying under a pasture-based system is the aim, rather than going all out for production. The family is seeking opportunities to grow the business with Greg and his wife Sue joined by their sons Todd and Andrew. The milking herd has increased to 350 cows on a property which has grown to 320ha from the original bush block settled by family ancestors in the 1890s. They have added an income stream breeding about 250 cows to Wagyu bulls which are raised for an average 12 weeks before being consigned for backgrounding and feedlot finishing for the premium Japanese market. Breeding capacity has been freed up by using sexed Frie-

Norco chairman Greg McNamara, on his Goolmanger farm, is entering his 13th year at the helm of the co-op.

sian semen allowing them to produce herd replacements from 100 selected cows. McNamara said there was also a commercial advantage generated by keeping cows in the milking herd longer. However, having an older herd averaging seven or eight lactations did require close monitoring of herd health issues and somatic cell counts in their high rainfall farming environment. Despite receiving an average 1500 mm of rain a year, their pastures are irrigated if they get two or three dry months which has not happened in the past three years. Pasture is supplemented with some silage and feeding an average 1.5 tonnes of grain per cow each year. “Our herd numbers will probably continue to grow slowly, but our viability is built on achieving the most cost efficient milk production,” McNamara said.

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DAIRY NEWS AUSTRALIA // september 2011

news

Griffin rolls sleeves up in national role New Australian Dairy Farmers president Chris Griffin hasn’t spent much time on his family’s Gippsland farm over the past six months. Griffin has spent most of his time fulfilling his duties as United Dairyfarmers of Victoria president and, with joint ADF vice-president Adrian Drury, standing in for former ADF president Wes Judd, who took a leave of absence to deal with the destruction of his farm by the Queensland floods. Now, Griffin has divested himself of his State role and is prepared for a busy 12 months of representing the national dairy industry. “There are many challenges that we need to tackle to ensure the dairy industry’s viability into the future, as well as that of the ADF,” Griffin says. “With important issues to address such as water, a carbon tax and retail milk price to name a few, I can say that ADF remains 100% committed to staying the course on these and other vital issues.” Griffin will be supported in his role by newly elected vice-presidents Noel Campbell, a dairy farmer from Warragul, Victoria and Peter Evans, a dairy farmer from Busselton, WA. The new leadership team, along with the ADF Board, acknowledged the contribution Wes and his family have made to the Australian dairy industry over many years and in many roles. Judd took six months’ leave from the role to help on his devastated family farm. At the end of that time, he realised his services were still needed full-time at home. “I was approached to put my hand up and after soul searching and discussion with industry colleagues, I decided to do it,” Griffin said. “I felt I had something to offer. “You need to have strong advocacy in this industry. You need to put your point across in a strong and effective way to make sure we’re heard.” Griffin says the role usually takes three days of his time each week, spending this in Melbourne or in Canberra, and his mobile phone is always on. He is also chairman of the Australian Dairy Industry Council – which represents the manufacturing side as well as farmers – so his role includes regular industry meetings in Melbourne, including current discussions on the dairy service levy poll. The ADF has been in regular contact of late with the Murray Darling Basin Authority, Climate Change Minister Greg Combet’s office and other politicians and opposition regarding the current Senate inquiry into supermarket milk pricing. “We are in constant contact with Ministers, advisors and industry representatives to ensure they understand our position on these issues.” Griffin says he will follow Judd’s approach of working behind the scenes in an amiable fashion. “You’re not able to bash heads all the time, at some point we may need to do that and there’s a place for that, but I’ll handled discussions in an amiable way. “At the recent Bega/Coles announcement, Senator Ludwig was there and said we need to meet and have a chat. We need to build good relationships to be effective.” The ADF has forwarded multiple submissions into the current senate inquiry in supermarket milk pricing and will continue to put pressure on the Government once the Senate Economics Committee releases its report, due September 30. They have also told Greg Combet’s office that the carbon tax will cost farmers between $5000 and $7000 a year and Griffin said they received a reasonable hearing. “It needs to be recognised that farmers need assistance. There are packages for industry and we need to see what’s available to us as farmers. It’s still not clear what’s available at this point.” Leaders who spend so much time away from home and their business need strong support and to this end Griffin says his wife, Jan, has been invaluable. They have built up their Moe farm from 80 cows in 1980

and are now seasonally milking 340 on their 112ha home block. They lease an additional 70ha to run young stock and cut silage. Their son Stuart, a vet, came home to work on the farm in 2009 when Griffin took on the UDV president’s role and has decided to stay. Despite the workload ahead of him, Griffin only has to look at his diary to be reminded of his roots. “I’m rostered onto milk every third weekend,” he said.

New Australian Dairy Farmers President Chris Griffin

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DAIRY NEWS AUSTRALIA // september 2011

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Milk cheques slashed under carbon tax The Victorian Government claims the Federal Government’s carbon tax will cut annual milk cheques by $5687 from July 1. The cost was part of a Department of Primary Industries analysis of the carbon tax’s impact released by Victorian Agriculture Minister Peter Walsh last month.

Walsh said the modelling shows some dairy farms would face a reduction of up to 25% in profit under the tax. “The stark reality is food producers and processors such as milk companies and abattoirs will wear the cost impacts of rising electricity bills under Labor’s carbon tax,” Walsh said. “It is estimated dairy proces-

Plague mice under scrutiny A national working group has been established to monitor and respond to mice plagues. A plague is likely to emerge in late spring and into the coming summer based on the latest reports from various state government authorities. The National Mouse Management Working Group (NMMWG) has been set up to coordinate actions to counter the imminent plague and to facilitate bait availability on ground when it’s needed. NMMWG chair Simon Humphrys says the working group is meeting on a regular basis to prepare for a plague situation and to arm those likely to be affectMice have eaten ed, particularly grain growers, with crucial on-farm grain information and re- supplies, chewed sources. Plagues of mice have through wiring and not only affected crop polluted calving plantings – with some farmers forced to re- sheds in dairies plant entire paddocks this year. – but caused havoc in the dairy industry earlier this year, eating on-farm grain supplies, chewing through wiring and take up residency in calving sheds. “Around three million hectares in the southern Australian cropping region was affected in autumn, which has already cost growers around $200 million in losses,” Dr Humphrys said. “Mouse numbers have retreated in recent months but in parts of Australia sufficiently high densities have persisted, despite baiting programs. “Although they may not be causing damage yet, the carryover populations have the potential to significantly increase crop losses as crops mature.” The NMMWG says monitoring for mouse damage over the next month will be critical and baiting is advised as soon as damage to crops is noticed to reduce the risk of substantial losses, particularly in areas that had high mouse densities in autumn.

sors’ costs will increase by at least half a cent per litre under the carbon tax. “With six billion litres of milk in Victoria, half a cent represents a $30 million tax on the industry or an average tax of $5687 on each Victorian dairy farm.” Walsh said processors would have no choice but to pass the

higher costs back to farmers, given they could not pass the cost on to export markets. “Food producers will also be hit with indirect energy costs from on-farm inputs such as the production of fertiliser, farm chemicals and transport. “Irrigated dairy farmers will also have to contend with the impact of rising electricity costs

$4879 for a small irrigated farm in northern Victorian to up to $27,689 for a large non-irrigated farm in the state’s south west producing $2 million of milk a year. This cost included extra on-farm costs, including higher electricity and fertiliser bills, and the processor cuts in milk price.

in pumping irrigation water.” As part of the analysis, the DPI conducted modelling based on five dairy farm scenarios with a mix of irrigation, non-irrigation factoring in these direct and indirect costs. Walsh said the modelling showed the impact of the carbon tax will range from

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DAIRY NEWS AUSTRALIA // september 2011

news

Bega Cheese needs more milk for Coles deal Bega Cheese will supply 19,000 tonnes of cheese to Coles under a new agreement to supply the supermarket with its entire range of Coles branded cheese products. The agreement will see Bega increase its milk demand by 70 million litres. This will be sourced from existing and new suppliers in NSW and Victoria. Bega Cheese chief executive Aidan Coleman said the contract would inject an extra $30 million directly into the Australian dairy industry. Bega will manufacture and package natural cheddar, processed cheddar and mozzarella cheese products for Coles under a five year contract. The cheese had previously been sourced from New Zealand. Bega already packs about 14,000 tonnes of Coles’ retail cheese products for a third party

Aidan Coleman

but the new arrangement will mean the processor will need an additional 7000 tonnes to fill the order. Coleman said with the more favorable seasonal conditions in Victoria the company was hoping for a total milk increase of 3-4% this

season across the existing supplier network. This Coles deal will represent about 10% of the Bega Cheese business and Bega plans to upgrade its Coburg plant, which it purchased in 2008, to meet the contract requirements. This could also generate another 30 new roles across the company. Coles and Bega Cheese must now formalise the proposed arrangements into a long term agreement. Subject to this formal agreement being signed, it is anticipated that Bega Cheese will commence its direct supply of cheese products to Coles next year. Coleman said a formal contract should be finalised within two months, at which time it will be in position to disclose further particulars of the financial impact of the proposed arrangement.

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Global auction falls again AVERAGE prices of dairy products fell for the sixth straight sale in Fonterra’s latest online auction at the start of the month, reaching the lowest level in 10 months. The GDT-TWI Price Index fell 1.4 per cent to $US3580 ($NZ4320) a metric tonne, according to results posted on the GlobalDairyTrade auction website. Whole milk powder fell to its lowest level since August last year. Milk powder prices have declined 16% from their peak in March, based on the ANZ Commodity Price Index and last month Fonterra confirmed its forecast for a decline in payments to farmers for the 2012 season, after what is expected to be a record payout for 2011. The company first

flagged the payment drop in May and chairman Henry van der Heyden said last week that it was sticking to the forecast even in the face of “volatile economic and market conditions.” In the latest sales whole milk powder fell an average 1.6 per cent to $US3314 a tonne; skim milk powder rose 0.3 per cent to $US3444 a tonne; anhydrous milk fat rose 2 per cent to $US4353 a tonne; milk protein concentrate rose 4.9 per cent to $US6,263 a tonne; rennet casein fell gained 0.9 per cent to $US9547 a tonne; and butter milk powder dropped 12 per cent to $US2988 a tonne. There were 128 winning bidders from 166 participants over 11 rounds. The platform has 387 qualified bidders, up from 355 at the last auction.

Drought pilot reviewed THE Western Australian Government has welcomed the release of a review into the State’s ‘Drought Pilot’, designed to move from a crisis management approach to risk management. Agriculture and Food Minister Terry Redman said the pilot was a joint initiative between the Federal and WA governments and aimed to better support farmers, their families and rural communities in preparing for future challenges, rather than waiting until they were in crisis to offer assistance. Redman said the Drought Pilot Review Panel examined outcomes and implementation of drought pilot measures trialled during the 2010-11 financial year, which marked its first phase. The independent panel considered the capacity of the pilot measures over the long-term to: improve farmers’ ability to adapt and manage farm risks; support farmers’ sustainable management of natural resources; and deliver more effective and equitable social support for farming families and rural communities. “I acknowledge the hard work of the panel in producing this report and I hope this review will help to invigorate and inform future discussion by industry and government around drought reform,” Redman said. “I am keen to discuss the findings of this review with my counterparts at a State, territory and national level, including with the Federal Minister for Agriculture, Senator Joe Ludwig.” Redman said the second phase of the pilot of drought reform measures was currently under way in WA. “This expanded program will allow an additional 800 farm businesses to access farm planning workshops targeting financial, managerial, natural resource management and life balance skills,” he said. “In addition, more than 670 Building Farm Businesses grants are available to help farmers better manage and prepare for future challenges.”

DAIRY NEWS AUSTRALIA // september 2011

news

Wet weather sees hay sales rise Lucerne hay sales have risen in south east Australia as dairy farmers seek to maintain their cows’ protein levels heading into spring. The wet conditions in Gippsland and western Victoria have reduced pasture consumption and forced farmers to look elsewhere. The Australian Fodder Industry Association says the rise in demand has not lifted prices as sellers are keen to move whatever stock they can to avoid carryover. Warm dry weather in southern dairy regions is slowly drying saturated soils, though not to the point where hay consumption is easing. It would not take much rain for paddocks to be at

risk of pugging again. The AFIA said some southern dairies would like to purchase cereal hay for springing cows but are having difficulty sourcing hay that has not had mice harbouring in it. Mice numbers are reducing but remain a threat for spring stocks of carry-over hay. Demand for hay has been flat in Tasmania as dairy farmers aim to consume their round baled silage produced last spring. Some fresh growth has resulted from the fine weather in the Bega Valley in NSW and cereal hay has been traded to herds looking to lift milk fat tests. Stocks of high quality vetch hay have been limited although some Mallee producers are holding out

A2 milk tastes profit FRESH FROM recording its maiden operating profit, A2 Milk Corporation (A2C) is eyeing the Asian infant formula market for growth. The company plans to export A2 infant formula sourced from Australia and New Zealand. A2C in February launched an international business plan to develop of A2 white milk and infant formula, part of a new agenda for growth, says managing director Geoffery Babidge. Good progress has been made in identifying and developing new growth initiatives. The maiden profit of $2.1 million for year ending June 30, 2011 is also a result of the new agenda. The company recorded a $2.2m loss the previous year. Babidge says the result is an excellent platform for the growth of A2 milk and confirms the board’s decision to take control of all aspects of the business. Last year the company sold 21.6m L of milk in Australia, a 32% increase over the previous year. Babidge estimates the market share of A2 milk in the grocery channel at 4.2%. This growth is pleasing and is consistent with awareness of the benefits of A2 milk and the loyalty of consumers, he says. The retail price of A2 milk has remained broadly unchanged for two years. A decision to lower the retail prices of house brand dairy milk by the major grocery chains from January harmed most competing milk brands, whereas A2 milk gained in sales over subsequent months, says Babidge. A2C is building a $A7.5m fresh milk processing facility to support growth. The will comprise a medium-sized processing facility in a purpose built factory in southwest Sydney.

A2 Corporation has recorded its maiden profit.

for $200 ex farm which AFIA says is above the market. Western Australian hay producers are relieved that they are now assured of a crop with promising yields. As pasture becomes available fodder consumption is significantly de-

creasing and consequently prices are receding from record levels. Silage harvesting has begun in the Goulburn Valley in Victoria. Crop yields are high on the back of a good season and many are taking advantage of the current fine conditions

to harvest. Lucerne production is also underway in Queensland’s Lockyer Valley. Some high quality cuts have been produced in this region since the beginning of August and with rain in the last week crops will be well positioned for a

productive second cut. In feed grain news, the AFIA says apart from a $20 decline in WA, feed wheat values have generally increased by $6/t across the country at the start of the month. Feed barley had increased $4 in southern

regions and $10 in northern NSW and southern Queensland. As the crops enters the critical grain filling stage of spring, extra focus will be on strong follow up rain and average temperatures to maintain seasonal averages for winter cereals.

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Chico chicory lifting milk production and lamb growth rates The use of Chico chicory as a summer crop is no longer an alternative to traditional options, but rather the first choice for many farmers.

just 82gms/hd/day. At Gore, the Chico mob made 371gms/head/day, followed by swedes at 364gms, Ultra enhanced ryegrass at 350gms and old pasture at 296gms.

With the high prices being paid for lambs and a high dairy payout, choosing the right summer feed is critical. It looks like Chico chicory might well be just that feed.

Chico chicory is a high yielding, high quality leafy chicory, with strong summer and autumn growth making it ideal as a specialist, high quality multi-graze summer crop for high livestock performance systems. Chico is an extremely valuable summer-safe grazing crop. It shows fast establishment, rapid re-growth, strong insect resistance and good drought tolerance. Its one metre long tap root enables Chico to keep growing through dry periods to provide high quality feed when grass and other forage crops struggle. Chicory contains high levels of metabolisable energy, digestibility, soluble sugars and protein. For dairy farmers, this means milk production can be maximized through summer and autumn. For sheep farmers, it means the ability to finish lambs faster, and to higher live weights.

Chico outperforms in Alliance lamb live weight gain trials The performance of Chico chicory was highlighted by two lamb live weight gain trials that were jointly conducted this autumn in New Zealand by local meat processor Alliance and Cropmark Seeds. From February to April lambs were ad-lib fed at two South Island trial sites (in Cust, Canterbury and Gore, Southland). Chico supported stocking rates up to six times higher than rape, old pasture and swedes, yet the Chico lambs at both sites still recorded the highest liveweight gains. At the harsh, dryland Cust site, the Chico lambs grew 154gms/head/day, while those on pasture averaged 141gms/head/day, and those on rape

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

For summer feed, there is nothing better than Chico chicory – the perfect summer feed. Chico’s metre long tap root is able to mine soil moisture and minerals from deep within the soil profile, providing insurance against summer drought. Its leaf is succulent, high in energy and minerals, and is very palatable to livestock. Chico is “rocket fuel” for livestock. Chico won’t cause grass staggers or facial eczema, and is resistant to insect pests such as diamond back moth and white butterfly. Livestock adjust quickly to Chico. For a summer-safe, multi-graze summer crop, providing flexible grazing management, there is nothing better than Chico chicory.

Chico – rocket fuel for livestock For further information contact Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037 For technical enquiries contact your local Cropmark agronomist. Western Districts, SA, Tasmania: Jason Hill – 0427 607 375 North & East Victoria, NSW: Adam Sheedy – 0428 132 096

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DAIRY NEWS AUSTRALIA // september 2011

news

Holstein Breeding Values delayed The latest Australian Breeding Values for the Holstein breed were released on September 12 – four weeks later than they should have been. ABVs for Jersey, Red Breed Group, Brown Swiss, Guernsey and other breeds were released, as scheduled on August 15. They are an estimate of the generic merit of an animal and are publicly released twice a year in Australia. The Australian Dairy Herd Improvement Scheme – the organisation collating the data for the breeding values – decided to delay the data after its quality assurance procedures revealed an unexpected range in the data utilised in genomic evaluations. “Our QA (quality assurance) controls

highlighted a greater range for yield traits in the genomic evaluation than expected, despite the ranking of genomic bulls remaining relatively consistent,” ADHIS said in a statement. “Initial investigation suggests the issue relates to the way data is added to the genomic evaluation of Holstein bulls, not the integrity of the genomic evaluation itself. “Because genomic data has been incorporated into proven Holstein bulls too, ADHIS delayed release of the ABVs and ABV(g)s for Holsteins until 12 September to allow for a comprehensive review of the Holstein evaluation.” ADHIS said these unusual results were confirmed too close to the sched-

uled release to complete its comprehensive review procedures. The issue was identified during data testing in the lead up to the release of the August ABVs. ADHIS said dairy farmers planning to choose Holstein bulls before September 12 might be impacted in terms of choice but should note that the review might result in a variation in the breeding value for bulls with genomic data. Until then, the April 2011 ABVs remain current. “Our advice to farmers is to select a range of bulls in their bull selections knowing that ABVs can change with the addition of data,” the ADHIS statement said.

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OPERATIONAL AND PRODUCTION FACTS MCINTOSH FARMING PARTNERSHIP Milking herd of 150 cows (Registered Holsteins) PASTURE BASED GRAZING Ryegrass and clover in winter. Kikuyu and clover in summer with some Lucerne. THREE GRAIN MIXES TO SUPPLEMENT THE PASTURES Dairy ration , Springer ration and Calf ration. All rations based on grain , dried distillers grain, macro-minerals and Performance Probiotics products for micro-minerals. What Performance products are you using and how are you using these products in your system? Healthy Herd – Dairy ration Healthy Calf Plus – Calf ration Fireup – Springer ration Microbial Paste – Initial calf treatment/strategic sickness and stress conditions/rumen disorders/show cattle stress and feed changes. Why did you choose Performance in the 1st place? Our first experience was with show cattle then further information via dairy magazines. What are the things you like most about Performance now that you have been using our product/s for a little while? What does it help you achieve? We have been using Performance Probiotics for over 10 years now in a range of circumstances, feed variations and animal health issues. We could not afford to be without it now we know what the various Performance Probiotics products can do for us with feed conversion and consistent herd health across the ages.

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‘We could not afford to be without it now we know what the various Performance Probiotics products can do for us with feed conversion and consistent herd health across the ages’. What would you say to a friend who was thinking of investing in Performance - but wasn’t sure? It’s natural. It is logical that it works the way it does. Our experience tells me to keep on using the comprehensive range of products to suit all our feed and herd health requirements. Has it saved you time/money/effort? How? Most definitely! The principle I like the most with Performance Products is that it is preventative strategy rather than reactive. The range of products give us choice to suit our budgets and all products are readily available through local suppliers and Vets. How easy is Performance to use in your system? Pellets, powdered products or paste make for safe and user-friendly handling. The packaging of the products in their various forms is a real strong point for convenience and accuracy. What is the ‘major benefit’ you see in using Performance? 1. Improved feed conversion in all seasons and feed variations. 2. Transition from pre-calving to full production. 3. Stress management in environment and feed extremes. THANKS TO ROBERT AND SUSAN MCINTOSH OF WOODSIDE PARK FOR THEIR ONGOING SUPPORT OF PERFORMANCE PROBIOTICS.

A NEW improved Austral- using ABVs is permanent ian Breeding Value (ABV) for and cumulative, so benefits fertility which incorporates made in one generation will a number of traits is likely be passed on to the next gento be available in the next 18 eration in the herd. “Fertility in dairy cows months to replace the curhas declined over recent rent fertility ABV. The new ABV will boost years and genetics is one of the reliability of first proof the tools breeders can use to bulls and increase the ability turn this around.” One of the challenges of dairy farmers to improve the fertility of their herd is that the current genetic evaluation of fertility in through genetic selection. The development of the Australia is based mainly on new ABV is the result of a calving interval. This creates problems as Dairy Future CRC project for the Australian Dairy cows with the worst fertilHerd Improvement Scheme ity are often culled and to(ADHIS), which is investigating the development of mul- The new ABV will tiple trait genetic help farmers improve evaluation models. Preliminary re- herd fertility through sults suggest that genetic selection. using a multi-trait model, instead of a single-trait model, could tally excluded from the ABV double the heritability of analysis, or only recognised the fertility ABV and lead to long after the information is higher reliability and more useful. The result can be an imstable genetic evaluations of perfect picture of fertility fertility. Improving the reliability and result in lower reliability of fertility proofs is impor- fertility ABVs for first proof tant as it will allow greater bulls, which can go up or rates of genetic gain in fer- down over time as more data tility and a better balance becomes available. “One way of overcomof breeding for fertility and ing this issue is to have a production. Department of Primary multi-trait ABV which uses Industry researcher, Jen- a number of predictors and nie Pryce, said the project is early indicators along with using data from a variety of the fertility data we already sources. Initially the project have; such as calving interfocused on data from the val, mating data or calving University of Melbourne to first service,” Dr Pryce said. from 4000 cows. “Traits such as days open, “Fertility has a low heritability, but there is a lot of pregnancy diagnosis, lactagenetic variation between tion length, survival, body the best and worst animals,” condition score and milk yield could all improve the Dr Pryce said. “Genetic improvement early prediction of fertility.”

DAIRY NEWS AUSTRALIA // september 2011

news – Fonterra fears

Fonterra co-op status concerns farmers ANDREW SWALLOW TRADING AMONG Farmers could prove the beginning of the end for supplier control of Fonterra. That’s the concern of a growing number of shareholders as the implications of what they see as a fundamental revision of the proposal sink in. “TAF has changed from that we were consulted and voted on, which was for 100% ownership and control to be retained,” says NZ farmer Eddie Glass. TAF was approved by NZ farmers last year. It would enable farmers to buy and sell Fonterra shares from one another in a market restricted to Fonterra farmer shareholders.

100% control not negotiable Fonterra Shareholders’

Council Chair Simon Couper has told its members and the Fonterra board it will only approve Trading Among Farmers with 100% shareholder ownership and control of the co-op. “When the Shareholders’ Council is reviewing the structure and implications of TAF, retaining 100% ownership and control is nonnegotiable,” Couper said. “If there is any real risk that 100% ownership and control is not retained by our co-op, Council will not vote to support moving to TAF.” Couper also sought to address the issues around the role of the custodian which has been the subject of much discussion. “While some of the detail around TAF may have evolved with respect to the role of the custodian, the intent of retaining 100% farmer ownership and control has not,” Couper said. The Shareholders’ fund, the size of which is unconfirmed at this point, was also part of the structure voted on yet has been cause for conjecture in some circles. “Ultimately the Fonterra Board has the obligation and responsibility to prove to the Council and shareholders that the controls and protections for 100% farmer ownership and control will be embedded in the proposed structure; this includes the role of the custodian and the fund.”

past month or so – first with Greg Gent, then John Wilson – on the revisions to TAF, haven’t allayed their concerns. Nor has legal advice on the ramifications of the share custodian and unit trust structure now proEddie Glass posed. Under the Companies Act the unit trust would have ‘leverage in certain circumstances’ and be able to intervene in the constitution of Fonterra and rights created under the constitution, Glass and Whitehead have been advised. What’s more, under the Unit Trusts

However, it was recently discovered that ownership of shares against which units would be sold to investors would now transfer to a custodian, instead of remaining with the farmer. Glass’s long history in dairy and other cooperatives here, and having studied them overseas, convinces him that retaining 100% supplier ownership and control is fundamental. “It’s the only way the cooperative can survive,” he says. Glass, and fellow Mid Canterbury Fonterra networker Charles Whitehead, are leading a call for a second vote on TAF, not by the Shareholders Council as per the original TAF proposal, but for all shareholders. Two meetings with directors in the

Couper said that while they wait for the board to release the final details the Shareholders’ Council has a comprehensive review process in place to evaluate TAF. “We have retained a lawyer with extensive senior corporate law and Government advisory experience who is constantly reviewing and questioning the provisions contained within the structure. “Also, DLA Phillips Fox who are specialist regulation and corporate lawyers and who have been involved in the TAF process on behalf of shareholders from the outset, will carry out a complete evaluation of the final TAF document and the controls within it before Council will look to vote on it.”

Act, unit holders – i.e. outside investors in Fonterra – would have rights to remove the trust manager and trustees, and alter the trust deed, if any of these were not acting in the interests of unit holders. Share issues create more potential loss of supplier control, as unit holders would have the same rights as suppliers to new shares, so shares without underlying supplier ownership would be created. Unit holders could also pressure Fonterra to improve its equity, requiring a rights issue which some farmer

shareholders couldn’t, or wouldn’t want, to fund. “The pressure on capital issues... to fund the growth of Fonterra may see the slow disintegration of the co-operative structure,” Glass and Whitehead have been warned. The widely accepted tension between investors wishing to see dividends maximised, and suppliers interested in maximising the milk price, is also highlighted. Glass stresses they’re not necessarily against Trading Among Farmers as a means to raise more capital in the cooperative. However, they remain to be convinced it can be achieved without jeopardising the interests of New Zealand’s dairy farmers.

‘PM needs crash course on co-ops’ SUDESH KISSUN PRIME MINISTER John Key is under fire for suggesting Fonterra should float its shares, his comment fuelling shareholder anxiety that TAF (trading among farmers) could signal the end of total control and ownership. Former Federated Farmers Dairy chairman Lachlan McKenzie says Key needs a crash course on cooperatives. “The comments show a lack of understanding of coop principles,” he told Dairy News. However Key says the Government has no intention of “imposing a capital structure on Fonterra”. “I have previously said publicly that I personally believe Fonterra could efficiently raise capital by floating as a listed company, and I repeated that view in [Parliament] recently,” he told Dairy News. “That does not mean the Government is about to impose a capital structure on Fonterra. The capital structure of Fonterra is a matter for them.” Key notes Fonterra is vital to the New Zea-

land economy. His comments in Parliament were seized by Labour which accused him of making “some sweet deal” to eventually list Fonterra. Labour’s agriculture spokesman Damien O’Connor claims farmers will eventually lose control of their co-op. “While Fonterra directors and executives maintain they have a mandate to proceed with TAF, farmers will undoubtedly want to further scrutinise the many details of the final proposal,” he says. Federated Farmers confirms it is examining TAF proposals after being approached by some members. Dairy chairman Willy Leferink says farmers are worried “some idiot lawyer will find a way to break the firewall between investors and farmer shareholders”. “If that happens, it’s not just dairy farmers who will suffer, but the whole economy. The profits from Fonterra will go overseas. “Other New Zealanders, including the Prime Minister, need to realise there’s a heck of a lot more money coming into New Zealand now [with Fonterra as a 100% farmer owned and controlled co-op] than if they list it.”

New Zealand Prime Minister John Key

Besides, such is Fonterra’s scale it would have to list in Hong Kong or the US to realise the best price for the shares, raising the likelihood most investors would come from overseas, Leferink says. “Fonterra overseas is sexy; it’s the sexiest dairy company in the world.” McKenzie predicts TAF will bring tension between the milk price and dividends. Co-op shareholders want maximum milk payout while investors will drive for maximum dividend. “There is no such tension in Fonterra right now,” says McKenzie He says cooperatives maximise returns to members and in Fonterra’s case the payout ends up in New Zealand. He points out that, apart from Tatua and Westland, other dairy processors maximise returns to shareholders including many which are overseasbased.

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European dairy prices stabilise DAIRY PRICES in Europe, as in the rest of the world, appear to have stablilised. UK industry body Dairy Co reports EU wholesale markets levelling off towards the end of August following a fall from “exceptionally high values” in June. “Butter prices are now down by €150250/t from June but they stabilised mid month with fewer discounted parcels around,” it said in a recent report. “Prices are back to April levels, still around 80% above the intervention price and €300-400/t above prices of a year ago.” Skim milk powder (SMP) values in the EU have been falling since February, losing €600-700/t for food grade and €700800/t for bulk feed grade, making for an “exceptionally large” gap between the two commodities. “Prices are close to levels of a year ago, but food grade SMP is still 30% above the intervention price.” Release of 94,000t of SMP from intervention [i.e. government] stocks has hit the feed-grade SMP market and remaining intervention stocks “should

prevent the market from overheating again,” says DairyCo. SMP exports from the EU have been exceptionally high and influential in EU pricing, hence prices have fallen in line with the world market, it notes. But by the end of August markets were more balanced with renewed demand for protein and some small increases in whey powder prices. “Whey powder prices have come down by €300/t since February but they are still above prices of a year ago.” Whole milk powder is also down some €600-700/t since February. Commodity Gouda prices peaked AprilMay and have since eased €200-300/t to prices close to those of a year ago. EU milk supply was 2-3% ahead of 2010 in the first quarter of 2011 but fell in the second quarter due to drought. DairyCo says preliminary reports suggest supply picked up again in July and is “probably still around 2% up on 2010. “Milk supplies are now falling seasonally towards the November trough.”

More UK farmers to quit The number of British dairy farmers planning to quit the industry in the next two years has risen to 13% from 9% a year ago. This equates to 1628 dairy farmers. Confidence is also down, with only 6% planning to invest more than 250,000 pounds (A$380,000) in the next five years, from 9% last year. “With 13% of farmers intending to leave the industry, there is a concern that Britain will stand to lose milk production capacity if there is not sufficient investment,” DairyCo senior analyst Matt Johnson said. The survey estimates British milk production

could fall by up to 4% within two years. However, results from previous surveys show actual effects on production are often less than predicted. Of 1200 farmers surveyed, 600 were in England and 200 each in Scotland, Wales and Northern Ireland. Only 32% of farms had more than 200 cows, 38% had 100-199 and 24% less than 60. The 2010/11 milk year in the UK was good, with favourable weather and prices pumping output up 3.2% on the previous year and 2.4% above the threeyear mean. When the survey was

carried out, UK dairy prices were at record levels and 36 of the 38 milk contracts monitored had seen price increases in the previous months. However, UK farmers are still receiving some of the lowest prices of all farmers in the EU. The UK average, at 26.6p/litre, was the lowest of any nation in the EU’s core 15 countries, with only Latvia, Lithuania and Romanian farmers receiving less in the now 27-nation trading block. The latest data from Europe’s DG-Agri shows the weighted average across the EU’s 27 states reaching 30.8p/litre at the end of June.

Fonterra joins UK co-op

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FONTERRA IS teaming up with the UK’s largest co-op to produce whey proteins. The joint venture with First Milk will provide whey proteins for Fonterra’s food ingredients business in Europe. The two co-ops will combine intellectual property and industry expertise to add value to the dairy protein streams at First Milk’s Lake District creamery in Cumbria, England. Fonterra says it is the first step in realising its goal of local European sourcing. For First Milk the deal adds value to the whey side stream of the cheese making process, which will enhance the returns it can pass back to farmers. First Milk is a farmer-owned food busi-

ness supplying and marketing 15% of the milk produced in the UK. It is a major supplier of liquid milk, dairy ingredients and cheese. Fonterra Europe managing director Koert Liekelema said the deal underpins Fonterra’s strategic focus on premium dairy ingredients. First Milk chief executive Kate Allum says the joint venture is its first step into added value whey markets. The premium whey proteins from First Milk Lake District creamery will be applied in Fonterra’s functional and cultured nutrition ingredients such as PowerProtein and ElevateProtein, based on Whey Protein 80% ingredients (WPC80).

DAIRY NEWS AUSTRALIA // september 2011

world

Milk dumped after shock NZ snowfall Unprecedented

snowfall

throughout New Zealand last month caused its farmers to dump 9.5 million litres of milk. Snow and gale force winds brought the country to a standstill during what forecasters are describing as a once-ina-lifetime event. Blizzards lashed the South Island before moving onto the more densely populated North Island. Fonterra’s tankers missed 2011 collections due to the snow with the south

island the worst affected. Fonterra said milk was fed to calves on farm, otherwise what couldn’t be held in vats was discharged to effluent holding ponds. WeatherWatch service forecaster Philip Duncan said: “I’ve been watching the weather closely for about 15 years and I’ve never seen a prediction like this.” He said the freezing conditions were due to a large high-pressure system reaching from Antarctica to the sub-

Milk was fed to calves on farm or discharged to effluent holding ponds.

tropics, which had merged with three neighbouring low-pressure systems. MetService forecaster Peter Kreft described the freezing conditions as “a once in many decades event” and suggested the country had not experienced anything like it for half a century. “We are probably looking at something like - in terms of extent and severity - maybe 50 years.” NZ Federated Farmers president Bruce Wills said conditions weren’t critical.

“It’s been challenging for some farmers on that warmer country south of Hastings. It was a rare and severe snowfall for those lower lying areas, but I’ve heard no accounts of any significant loss of life.” Federated Farmers’ dairy chairperson, Gray Beagley, said farmers took their normal winter precautions. “We fed out extra hay and made sure we picked up cows and calves twice, rather than once a day and moved them to sheltered paddocks.”

Early snow warning keeps stock losses down IT WAS tough, but stock losses were few as gales, sleet and snow swept up New Zealand last month. Farmers spoken to by Dairy News were thankful for early forecasting of the storm, and for generally good condition of stock. The most common complaint was lack of sleep, particularly on South Island dairy farms where the worst weather of the winter hit at the height of calving. “I haven’t really had any sleep for the last two days because last night I was still on the farm at 2am and I was back there at 4.30am,” Peter Schouten, north Canterbury, said. “I’m going to have a couple of hours sleep now and I’ll be back out in the paddock about 10.30pm tonight.” Calves were being picked up as soon as possible and the most chilled bathed in warm water back at the shed. “The heads came up, they just bucked up straight away. We gave them some colostrum and away they went.” Federated Farmers North Canterbury dairy chair, Kieran Stone says the storm was “probably as bad” as forecast but people were prepared, with feed and shelter organised as a result. In Southland, Feds Sharemilkers chair Donal Kidd reflected that up to the storm it had been one of the best winters anyone could remember, after a good autumn. “Probably pasture covers are as good as they’ve been for years at the start of calving and most people have plenty of supplement on hand.” Even so, Kidd says, it was tough going in the storm. “We’ve had about 5 cm of snow and it’s pretty much all gone now so it wasn’t too bad in terms of covering up the grass but it’s made it wet and the wind chill wasn’t pleasant; it was pretty cold.” Canterbury had more snow than most parts of Southland and farmers and staff were even shorter of sleep than normal at calving, many going round their calving mobs every few hours through the night. Mid Canterbury Federated Farmers dairy chairman Frank Peters says sleep is in short supply on most farms. “I know my son’s pretty bloody tired. I talked to him at seven o’clock at night and he was off to bed for three hours

Coming in from the cold: Central Southland farm manager Shane Hodges collects a newborn calf during a break in last month’s snow.

“Everybody’s doing it. We’re trying to save as many as we can. You’re always going to lose a few but in this sort of weather you lose a few more.”

and then do a 10 o’clock check and he gets a couple of hours in between and there’s another lot. “Everybody’s doing it. We’re trying to save as many as we can. You’re always going to lose a few but in this sort of weather you lose a few more. In those freezing conditions if the calf can’t get up in the first 20 minutes or so, they’re going to struggle to make it.” Peters agrees good pasture covers helped farmers cope but was concerned about the effect the snow could have on feed quality longer term.

“That long grass, if it gets too much moisture on it, goes a bit slimy at the base. So a lot of people will want to get a lot of that off as quick as they can so we can get some new spring growth. “Probably the worst thing that could happen now is if it was to turn warm quickly because some of that grass in the base will start rotting.” But for now, most dairy farmers, while sleep deprived, are coping well. “So far I can’t complain,” says Schouten. “We’ve got 48 hours of bad weather on our hands. We’ve had an entire winter of awesome weather. I’m not complaining, but it’s bloody hard work.”

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DAIRY NEWS AUSTRALIA // september 2011

opinion Ruminating

editorial

Processors must convince farmers to invest

milking it... Curious cows seal fleeting friendship A WARRNAMBOOL, Victoria, farmer on a Saturday morning walk was surprised to find a seal among his curious cows. After swimming up the Merri River, the female Australian fur seal crawled 1km across paddocks and a road to end up at the Warrnambool saleyards. The confused seal was reported to Department of Sustainability and Environment wildlife officers at 9am. They noticed a growth on her right eye and decided, due to her age and sickness, she should be put down. Wildlife officer Stan Williams said sickly and rundown seals often swam inland through fresh water rivers to kill parasites. “It’s amazing how far they can travel. The cows were very interested.”

Soaking up the sun Rodney and Ruth Algie of Dairy Design Holsteins near Singleton, NSW, are changing city families’ perceptions of farmers one by one. They have hosted a family

from the city every year since the inception of FarmDay five years ago. When Ruth says the family knew “absolutely nothing” about dairy, she wasn’t exaggerating. Larissa Byrnes, who visited the farm, said she thought dairy farmers milked cows in the morning and “soaked up the sun for the rest of the day”. “We didn’t realise dairy farmers had to grow the food or how much cows ate and how much work was involved.” Now, the Byrnes family have stopped buying house brand milk and insist on Dairy Farmers, which the Algies supply. No doubt they’re spreading the word amongst their friends too. It may be a small step in convincing city residents about the importance of farming but it’s an important one nonetheless.

Paying for cows’ pension Feeling guilty about hardworking cows that provide you milk? Well, some Londoners are. They can now sooth their collective conscience by drinking milk from cows that will only die of old age. The Hindu Ahimsa Founda-

tion guarantees no cows, bulls or claves will be slaughtered in the production of its milk. Already 50 London families have ordered the recently launched Ahimsa milk at $4.45/l plus delivery. The price includes $1.95 for production, processing and bottling and $1.30 towards a pension fund, hospice costs and vet costs. Cows at the foundation’s organic farm in Kent will be in calf only every two years and will be required to calve only five times. At age 13 each cow will be retired to a farm sanctuary in west Wales. Heifer calves will join the milking herd and bull calves will be reared and kept until their death at about 17-20. We’re not too sure they’ve thought this one through. Good luck buying enough land in the UK to maintain all those cows if the idea takes off.

Not again Ludwig! Agriculture

minister

Senator Joe Ludwig won few fans when he visited Kimberley cattle producers back in July, as evidenced by statements provided to the live export inquiry by Jack Burton of Kilto Station at Broome.

Burton said Ludwig displayed a fundamental lack of understanding about their industry. “Senator Ludwig came here two days after the ban had been lifted and after two hours of dealing with 30-40 odd producers, some pretty heated discussion, the minister then said, well I want the opportunity to put to the floor some questions. “And I kid you not, this is a quote: he said please explain it, how does it work, how do you get the order for cattle, and who pays. “This is just the basic fundamentals of our industry. He was asking ‘if a boat comes to town, how do you know you can put cattle on it, who owns them, who pays for them?’”. “Honestly we thought it was a trick question because we thought this far down the track, that a minister for agriculture, could ask a question of producers who he had just smashed to smithereens and fixed, apparently, according to him, and then come to us with a question about the absolute basic fundamentals of our industry.” Coming from the Minister who did not recognise a milk tanker when visiting a dairy farm, unfortunately we’re not surprised.

Farmers need greater long-term security from the processors crying out for more milk. They need to know the cost and long-term planning required to increase production will be rewarded. Southern Australian processors are doing whatever they can to secure the supply they need to take advantage of international demand. Rabobank analyst Michael Harvey (formerly with Dairy Australia) also came out last month calling for the Australian dairy sector to ‘unlock growth’ and ‘release a new wave of milk’. Many farmers would be prepared to do this if their investment was secured. Unfortunately, any sudden crash in demand would leave them vulnerable. They’ve been there before and the scars are still fresh. Australia’s dairy supply chain has the capacity to accommodate greater growth but several obstacles need to be confronted if the sector is to unlock its potential. Farmers are lacking confidence for capital investment needed to drive sustained growth. This lack of appetite is a by-product of a decade of very difficult seasonal conditions, including consecutive droughts, a global economic crisis eroding equity levels and undefined price signals beyond the immediate future. Production challenges

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will always remain a significant barrier to growth for Australia’s dairy sector with the sector at the mercy of the weather. There is also a low appetite for capital investment among farmers to grow herds, with business risk still weighing heavily on confidence of many dairy producers who are carrying heavier debt loads. Maintaining access to key export markets and opening up new ones is also a critical issue for the industry, while the sector also faces the challenge of rising labour costs and availability. However, international demand for dairy is currently very strong and Australian processors are seeking to make hay while the sun shines. Demand is there and they are running advertising campaigns or sending representatives through front gates in a bid to secure supply. This is just redirecting the current supply base to suit them. They’re not growing the pie; they’re just hoping to take a bigger slice. They need to convince farmers that re-investing in their business is a secure long-term investment, not just for a couple of years. How they do that is up to them. But if they want to see Australian production increase and therefore improve their own security of supply, they need to roll their sleeves up and work with their suppliers.

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DAIRY NEWS AUSTRALIA // september 2011

opinion

Astounding assertions on organic farming

Not the time to blaze new trails on ETS

DAIRY NEWS AUSTRALI A // AUGUST 2011

OPINION

Who’s greenwashing who? Dereck Broadmore Your columnist David Anderson has fallen hook, line and sinker for the marketing propaganda of the pharmaceutical industry. In a breathtaking display of naivety, Anderson relies on promotional material from Elanco, the animal health division of global drug researcher and manufacturer Eli Lilly and Company, to attack organic agriculture as “not all that environmentally friendly and/or economically sensible....” To support his own view on organics he relies on none other than Du Pont, one of the largest agrichemical suppliers in the world, to reach the conclusion that organic agriculture cannot feed the world. Did he really think international pharmaceutical companies would commit commercial suicide by supporting a system of agriculture that does not require their products? Sandwiched between these two examples of gullibility Anderson quotes completely unsubstantiated comment from a global trending company founded by an economist and an accountant, to make a number of quite astounding assertions: • Organics is anti- technology. • Organics increases the use of water and feed resources and can lead to higher greenhouse gas emissions. • Organic production imposes higher food costs felt mainly in the developing world. Nowhere does Anderson actually provide any research evidence to back up his claims. It is a myth widely propagated by those opposed to organic agriculture that organics is unscientific and /or anti technology. Soil biology, pasture management, genetics/breeding, biological controls, soil testing and fertility, animal health, seed development and selection, weather patterns are of intense interest and importance to organic farmers. Chemists are not so widely in demand. The organic sector would love to have even a tiny percentage of the scientific research funding that is devoted to conventional agriculture. The science that is available contradicts Anderson’s claims about water usage and greenhouse gas emissions. The Argos project (Agriculture Research Group on Sustainability) established in 2003 as a joint venture between the Agribusiness Group and Otago and Lincoln Universities is an ongoing comparative study of con-

EVER HEARD of greenwash?

It means misleading consumers about the environmental practice of a compa ny and/ or the benefit of its product or service. Accusations of greenwashing usually come from environment alists, criticising companies, organi sations and even countries for not living up to the expectations of these self-ap pointed green guardians’. Often, agriculture is the subject of such sanctimonious lectures from the Greens, Greenpeace – or some other ecological do-gooder group – accusing it of unleashing environment al damage on land, water system and/or animals. Regularly these groups call for wholesale conversion to organics, claimin g only this can save the country – enviro nmentally and economically. So to learn that certain types of agriculture, such as organics, are not all that environmentally friendl y and/or economically sensible, brings a sense of agricultural analysis schadenfreude. Tom Daschle, to examine company Global An Australian Farm Institute the best public policy AgriTrends, told the conference heard how relievin g world and business practices confer ence most consum hunger and ensuring food securit ers y are to tackle the global do not understand the social inextricably linked to adoptio n of new challenge to increase implications of perceived farming technology. United Nation s agriculture productivity in a “social ly-resp onsible ” figures show the world’s popula tion sustainable manner. purchasing. has been increasing by 78 million /year Its three key “Organic, locally grown, and is expected to reach 9 billion by recommendations were: free range DAVI and D other ANDE anti2050, requiring a 70% increas RSON e in food • Produce more food technology production production from today’s levels. and increase the nutritional methods typically increase the Roger Cady, Elanco’s sustainability use of value of food – unleashing innova water and feed tion resour ces, and can lead leader, says this will have to come and ensuring farmers have access from to higher greenhouse gas emissio to the new technology due to limitat ns.” He tools they need will be essenti ions in land says it is actually “socially irrespo al. and natural resource availab nsible” • Make food accessible and afforda ility. He says to impose choice restrictions ble consumers have been on producers for everyone – barriers to movin g food, which then lead to swayed into organics Intensive agric such as infrastructure and govern ulture ment higher food costs, by impressions and policies, must be removed. is significantly more felt mainly in the intuition without • Address the challenge in a continuously ‘developing world’. considering the sustainable than most more sustainable and compre hensive “Utilising technolscience, productive way – continuously improving people are aware. ogy effectively will efficiency and agricultural products and practic es to mean that while we environmental impact per unit addres s natural resource needs. of output. need to double agricultural produc “Intensive agriculture is actuall tion by With the world’s population growth y 2050, we will only occupy 13% significantly more sustainable more land showin g no than most signs of abating to do this than was used in 2008.” , the everpeople are aware,” says Cady. increasing demand for food makes Australian agriculture and science it even “Today’s technology-aided, intensi more important for farmers to ve author Julian Cribb says manki produce agriculture is far more enviro nd faces more from nmentally less. Those pushing organic its greatest challenge with world sustainable than historical agricul deman d barrow s won’t want to admit it, but the ture for food doubling in 40 years because fewer resources, less or so. This food production increase needed water and growing demand comes as the to feed less land are used with less greenh scarcity of the world’s growing population ouse gas land and water availab cannot, le for growing food produced per unit of food grown and will not, come from organic system than by intensifies. s. historical farming methods.” David Anderson is principal of In 2010, DuPont assembled an Write Meanwhile, Brett Stuart, of US external Here, Right Now and a former committee, chaired by former Rural News US Senator Editor.

andrew ferrier

Work on the its busiFonterra nessare ,and ntaking ot farmers action on climate just in it change. But they also

have concerns about New Zealand’s ETS. Outgoing Fonterra chief executive Andrew Ferrier told a recent Climate Change and Business Conference why When youconcerns take time farmer are away to look at things not diffeunfounded. rently you’ll often

DR PAULINE BRIGHTLING

ALL DAIRY managers can ben-

mind what they need from the position and the type of person who will fit the role. And having a written job description helps the new staff member know exactly what is expected of them. Job descriptions, procedures, policies, staff meetings – you can’t do any of these on the run, while you are busy with the day to day activities on the farm. They are best done by taking time out, away from the farm, to concentrate on the busine ss rather than the daily chores.

efit from taking time out to work on the business, rather than in it. It doesn’t matter how large or small a dairy operation is, there’s value in taking ourselv es away from the distractions of the daily farming activities and thinking about it from a different perspective. As a dairy business grows and employs more people it becom es increasingly important to do this. The concept may start with the introduction of regular ‘staff meetings’ where the people involved in the farm can discuss plans for the coming weeks and issues come up with ideas that that may need special at- save time and stres s tention. every day. It may also include taking the time to document the farm’s procedures and poliMany of these tasks can be cies. made easier by using the temIt sounds simple but the procplates and tools available on The ess of documenting these things People in Dairy website (www. helps the business owner or thepeopleindairy.org.au). manager think through pracDairy farming can be a hectic tices that have been commu ni- occupation. But when you take cated informally in the past. time away to look at things difIt is the first step for formal - ferently you’ll often come up ising farm systems and it helps with ideas that save time and both managers and employ ees stress every day. to have a clear understanding of Having these key documents what’s expected. – job descriptions, farm policie s, Another step is to write job deprocedures – also help presen t scriptions for staff. the operation as a professional Job descriptions are often prebusiness. pared when a position becom es And in the long run that will vacant on the farm. It’s a good help address the on-going issue opportunity to think about the of attracting, develop ing and tasks involved and the skills re- retaining people in the dairy inquired. dustry. The process of writing a job Dr Pauline Brightling manag description helps the owner or es The People in Dairy progra m manager clarify in their own for Dairy Australia

AMONG OUR dairy exporting competitors, only the European Union has an ETS and agricultural gases are not part of the EU scheme. Proposed schemes in the US have stalled and there are few prospects of schemes by emerging competitive producers such as Argentina and the Ukraine. Australia will now likely have an ETS, but keep in mind that agricultural gases will be included via an From last month’s Dairy News Australia offset scheme which deliv• Accurateand cow organic identification Programme publicly presented on ventional farming sys- • Auto ers cash to farmers rather matic drafting, pre-draft and • Automatic feeding • Herd managem 22 October 2008, found that organic tems ineNew Zealand. thanentrequire them to pay an post -dra ft • Voic and visual aler ting system • Easier herd testing y to use offers Africa, and other Progress results published last• Easfarming emissions fee. • Drafting only options similar developing nations, the best year show the soil on organic farms Other nations have not MONITOR MA ITIS, EV of breaking the cycle of povhas higher water-holding ST capacity chanceER implemented domestic cliY MILK IN G, EVERY DAY ONLY farms BUY AN malnutrition. That report than conventional andIDthereSYSTEMerty mate change policy at the THAand T CAN PROVIDE YOU WITH INDIVIDUAL CELLwaCOUNT echoed similar in TEI an earlier , VOLUM fore less demand for additional rate expected in 2009. The E, FATfindings AND PRO N ... for positive management andreport control. Excl from International ter. The soil on organic farms also UN Kyoto Protocol first comusivethe to the Jantec ID System has increased biological activity and Conference on Organic Agriculture mitment period concludes reduced need for fertilisers, greater and Food Security (Rome 3-5 May at the end of next year and sequestration of carbon and less ni- 2007). major emitters like Japan, The reason organic agriculture trate leaching to waterways. Canada, Russia and the US International research is in line has the best chance of feeding the have stated they will not with the New Zealand findings. In developing world (where the popusign up to a second commitparticular on greenhouse gasses, lation growth will largely occur) is ment period. research at Dalhousie University’s because it is a closed system readily As a result, the direction School for Resource and Environ- available to those already engaged in and ambition of internamental Studies, to take just one of food production. It does not require tional climate change polimany examples, (reported in a re- the use of expensive externally procy remains uncertain. Not lease from the school on 21 October cured inputs to achieve sharp and surprisingly, farmers feel 2008) found if all Canada’s corn, dramatic increases in yields. In short this is not the time to blaze wheat, soy and canola production it is the UN’s view that organic agnew trails by implementriculture will provide ing policies that will place more food at lower cost obligations on agriIf all Canada’s corn, wheat, soy in developing countries. costly cultural emissions while It seems implicit in and canola production was the only policies proposed what Anderson has competitors will be the converted to organic methods, written that he accepts by opposite. a 4.8 million tonne reduction the need for greater Emissions efficiency can sustainability in food be achieved without more of greenhouse gas emissions production while at the carbon costs being piled on would be achieved. same time increasing to our farmers and those global yields. That will costs are real. Dairying is was converted to organic methods, not happen if commentators have already paying its way. a 4.8 million tonne reduction of closed minds to alternative systems The ETS has already regreenhouse gas emissions would be of food production. If we are going sulted in higher on-farm to achieve these objectives it will be achieved. costs of some NZ$3600 a One thing Anderson did get right by working collaboratively towards a year compared to an urban is that the UN has projected a world convergence of the best of both syshousehold’s costs of around population of 9 billion by 2050. tems. NZ$133. With the removal Dereck Broadmore is chairman What he did not say, however, is that of transitional provisions, research by the UN Environment of Organics Aotearoa, NZ. the entry of agricultural

JANTEC ELECTRONIC HE

gases and a NZ$50 carbon price, those on-farm costs will rise to NZ$22,000. That’s 28% of the average dairy farm’s cash surplus. Piling more carbon costs on farmers will simply reduce profitability and reduce dairy growth in New Zealand. And to me, this makes no sense. New Zealand is one of the lowest carboncost dairy industries in the world. Applying an ETS on agriculture here, when it is not applied elsewhere in the world will ultimately lead to a shift of dairy production to far less emissions efficient countries. We all know the world must dramatically increase food production in the next 20–30 years. In fact, the UN says global food production has to double by 2050. How is this food going to be produced? With what

impact on global warming? We need to start by allowing the most efficient industries in the world, economically and environmentally, to grow to do their part in feeding the world. And this certainly doesn’t start by putting economic disincentives on the efficient dairy industries like New Zealand, while leaving inefficient ones to grow unfettered. In fact, organisations like the UN Food and Agriculture Organisation are emphasising the need for this higher production to come from emissions efficient countries. The World Economic Forum calculates that if 10% of agricultural production moved to more efficient locations, 178 million tonnes of carbon dioxide equivalent emissions could be reduced. That’s four times the total net emissions of New Zealand.

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DAIRY NEWS AUSTRALIA // september 2011

agribusiness

Innovation fuels Richmond Dairies Bernie Reppel

the potential in mainland China, for instance.” Sharpe said Richmond Dairies has to be very clear about how it can make sure its farmers get the stability and returns they need to have viable long-term businesses. One way the company does this is by rewarding farmers for producing milk solids. Fat and protein have a value to the company whereas water doesn’t.

Drive along Dyraaba Street, in the northern NSW town of Casino, and from the road Richmond Dairies looks just like a traditional Australian cooperative dairy factory should. And that’s intentional. Richmond Dairies has put a lot of time, effort and respect into maintaining the classic exterior of a site with more than a century of dairy processing “We convert milk history. Inside it’s a differfrom the region into ent story altogether. Richmond Dairies innovative dairy believes respect for products which can tradition and desire to use the latest tech- be sold abroad into nologies are not in- markets which value compatible. According to di- our expertise.” rector Chris Sharpe, It can pass on the savings who runs the Casino plant, those technologies are the that come with high-solids key to this being the only milk as premiums to highproducers, milk-processing site of its composition type between Cape York which is why Richmond and the Victorian border. Dairies is so keen on Jersey So it draws milk from a very cattle. The Casino home of wide area. “While we process milk Richmond Dairies has been from our own direct supply the site of dairy processfarms, we also handle milk ing operations since 1907, on behalf of other proces- when the Casino Cooperative Dairy Society built its sors,” Sharpe said. “One of our main roles new butter factory alongis to remove surplus milk side the recently opened from the region and con- Casino-Mur w illumba h vert it to innovative dairy railway line. It ran as Casino Co-op products which can be sold abroad into markets which through to 1974 and then under the Norco banner up value our expertise. “Since deregulation, to 2005. The big change came Australia is firmly a part of the world market and our when R J (Jim) Dickinson farmers are exposed to the came to Australia in the volatility and competition late 1990s, looking for a southern hemisphere base that go with it. “The world is now a sin- for the Longley Farms dairy gle marketplace and we are export business he was particularly excited about running out of England.

no waste of feed

Clockwise from top: The well restored and maintained exterior of the Casino dairy processing site; The Fast Freeze technology gets a mention on an exterior wall; Chris Sharpe

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He liked the idea that the NSW Northern Rivers region area lay at the original heart of the Australian dairy industry and he struck up “an excellent rapport” with Norco CEO Alan Hoskins and Chairman Warren Noble. The original plan was to proceed as a joint-venture, which fired up in 1997. Operations proved difficult and in the end, the financial restructuring of Norco required the takeover of the Casino site. Richmond Dairies became a totally independent business in 2005. “Mr Dickinson’s original idea was to work with a cooperative, but this plan was wrecked by deregulation,” Sharpe said. “With hindsight, although it was never the intention, going solo was the best thing that could have happened. “It allowed us to widen our scope and set up as the residual site for the whole of the North Coast dairy industry.” Sharpe said a significant part of Richmond Dairies’

cream, but we consider our product superior to anything else available. “The focus of the business is bulk dairy ingredients. There is no retail packaging and so a small tight-knit group of around 50 staff can handle and market a lot of milk.” Sharpe said Richmond Dairies Richmond Dairies has is constantly striving to be the best established a dairy and is always lookfarm in Uruguay ing at ways of upstocked with dairy grading skills. It runs a small cattle. staff interchange program with in Victoria, which would Longley Farm in the UK not be such an attractive and with Campo Longley, the company’s developing operation. And the Casino location operation in Uruguay. Uruguay has a similar is good for transport – three hours from Brisbane climate to northern Vicby road with no flooding toria, and is a potentially problems, even though Ca- strong dairy area, with sino is in the Northern Riv- large reserves of underground water. ers region. Richmond Dairies has “The company’s great asset is the Fast Freeze established a dairy farm technology developed by there, stocked with Jersey Jim Dickinson for freezing cattle, and Sharpe said it might eventually set up a cream,” he said. “There are other people processing operation there in the world who freeze as well. value to other Queensland and NSW milk processors is its spray drier – admittedly “pretty small, compared to the big ones in Victoria”. If Richmond Dairies didn’t exist, those other processors would have to send excess milk to driers

DAIRY NEWS AUSTRALIA // september 2011

agribusiness

US sharpens its export focus 7.60 7.40 7.20 7.00 6.80 6.60 6.40 6.20 6.00 Jul-11

Jun-11

Apr-11

May-11

Mar-11

Jan-11

Feb-11

Dec-10

Nov-10

Oct-10

Sep-10

Jul-10

Aug-10

Jun-10

Apr-10

May-10

Feb-10

Mar-10

Jan-10

Dec-09

Oct-09

Nov-09

Sep-09

Jul-09

Aug-09

Jun-09

Apr-09

May-09

5.80 Mar-09

milk yields per cow are up because of selective breeding and beef prices are also high, allowing farmers to replace less productive cows with fresh stock. US milk prices at current high levels are also encouraging milk production growth. At August the ‘all-milk’ price was at a record high and helped offset high feed prices. However extreme weather in some states and high feed costs are beginning to affect milk yields and production. Extreme weather has reduced feed availability, and consequently prices have risen. Drought and floods have negatively impacted forage and grain supply and quality. The USDA is predicting dairy cow feed prices will remain high into 2012. The high feed prices are expected to constrain milk yields per cow. The USDA anticipates high feed prices will limit milk yields in 2011 to 9400 litres per cow. Extreme heat reduced milk production in the Midwest and Northeast in July. Output in the Great Lakes states (Wisconsin, Minnesota, Michigan, Ohio, Indiana, and Illinois) was down 3.9% from a year ago. Recent floods from Hurricane Irene occurred in upstate New York and Vermont. The impact on production was not significant as many producers shipped their product prior to the storms, and Vermont is one of the smaller dairying states. It’s also pertinent to look at cheese production, since around 47% of US milk is allocated to cheese production. US cheese production fell in July and was down 2% from a year ago. US domestic cheese sales dropped in July, and the June to July increase in cheese inventory levels was the biggest monthly increase in seven years.

US monthly milk production (bn litres)

7.80

Jan-09

global impact damian richardson

Cheese exporters have benefited with assistance from Co-operatives Working Together (CWT) by selling products overseas. CWT aims to use its Export Assistance program to positively influence milk prices by helping members gain and maintain market share, thus influencing the demand for US dairy products. Damian Richardson is industry analyst with Dairy Australia

Feb-09

Australian farm

gate milk prices are essentially determined by international dairy commodity prices. In turn, international prices are set by economic demand and supply for dairy products. In recent weeks buyers have appeared reluctant as they wait for the new season milk flow to ramp up in Australia and New Zealand. However another significant factor in international supply is milk production in the US. US dairy exporters continue to enjoy the benefit of the weak US dollar by being able to offer increasingly competitive quotes on global markets. In turn, more competitive US exports means potentially lower returns for Australian exporters. The US dairy industry is a sophisticated, capable dairy industry, becoming increasingly export focused. The recent updated ‘Bain Report’ (the Innovation Centre for U.S. Dairy and Bain & Co.) highlights that the US still has improvements to make, but its attitude of viewing the global market as an ‘overflow’ for domestic production is changing. Australian farmers need to keep an eye on US milk production and industry developments as it becomes increasingly competitive in the global dairy market. US milk production in the seven months to July 2011 was 50.8 billion litres - up 1.6% on 2010. The 2011 milk production forecast according to the United States Department of Agriculture (USDA) has recently been reduced to 86.1b litres. Nevertheless this still represents a 1.5% increase on the 2010 season production of 84.9b litres. While 1.5% growth may not sound like much, it equates to a 13% increase in Australia’s milk production or a 20% increase in Victoria’s milk production this season. US milk production is up for a number of reasons. At July 2011 there were 80,000 more cows being milked than a year ago. In July alone 7000 more cows were added to the total country herd. Based on historic levels,

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DAIRY NEWS AUSTRALIA // september 2011

management

Use poor quality silage with caution Farmers left with poor-quality silage can still use some of the fodder but must be careful. DPI Pasture and Fodder Conservation Specialist Frank Mickan said silage harvests were greatly affected by floods and rain in late 2010. “This caused delays in harvesting silage. The rain that fell on freshly cut or windrowed hay has resulted in poorerquality fodder being conserved,” he said. “Although some farmers were able to make some very early silage, resulting in a high-quality, milk-producing supplement, many farmers and contractors were caught out repeatedly by inclement conditions when in the peak silageharvesting period. “It was sometimes difficult to wilt to the correct dry matter content due to cooler, damper and shorter-than-desirable wilting periods. “This has resulted in over-wet silage in stacks and silage bales, all undergoing poor or extended fermentations or a clostridial-type secondary fermentation. Not only do these undesirable fermentations produce lower-quality silages but cause substantial losses in dry matter compared to normal silages.

silage, which is preceded by yeast activity.” Three major feeding issues will arise from these problem silages:

“They are often also mildly to severely unpalatable, depressing animal intakes. Some silages might not even be eaten.” He suggested that applying a suitable silage additive could reduce the likelihood of this problem, albeit at extra expense. Poor silage fermentation usually results in higher levels of butyric acid and protein-breakdown compounds such

as ammonia, amines and amides in the silage. Yeast populations in the forage will also grow substantially and produce unpleasant odours and tastes. “These are the major causes of low palatability and the common reasons for silage refusals, rather than the mycotoxins frequently blamed by farmers,” Mickan said. “There can also be mould growth in

Reduced nutritive value Mickan said even if the poorly fermented silage is eaten, its nutritive value will be much lower than well-preserved feed. “If animal performance is important, it might be necessary to supplement the diet with another source of energy such as grain, maize or palm kernel extract. “To balance the cow’s diet, these silages will probably also require extra protein such as good-quality silage, lucerne or vetch hay. “How much extra energy and protein will be needed is best determined by analysing the silage.” Low palatability If the silage is of low palatability, remove the next 12 to 24 hours ration and let it air out, allowing the foul-smelling volatile gases to evaporate, Mickan said. “This might mean feeding it out, spread as widely or as thin as is reasonable, a day ahead in the paddock. “A large area of spare, clean concrete

such as the bunker base or front apron would also be useful but involves double handling and probably contamination with mud this year. “Avoid leaving the next day’s feed in a total mixed ration (TMR) or feed-out wagon as this might not allow volatile gases to escape and could actually compound the problem. “Shandying small amounts of the poorer quality silage into the TMR diet or good-quality silage is another option. “Slowly increase the proportions over about two weeks but expect the animals to let you know that enough is enough.” Mouldy silage Silage that is obviously mouldy should be discarded. Research in the USA has shown that including only about five per cent (on a DM basis) of slimy silage into a ration significantly reduced animal intakes and lowered the integrity of the forage mat in the rumen. “Mouldy silage might not be quite as bad as slimy silage, but will reduce intake and will be of much lower quality. “It is especially not wise to feed mouldy fodder to pregnant animals.”

DAIRY NEWS AUSTRALIA // september 2011

management

Cheap fertiliser from effluent system Gordon Collie An effluent management system which allows full value to be extracted from dairy waste has been a good investment for the Palmer family at Sisters Creek in northwest Tasmania. Rhys and Cecily Palmer and their son Michael and his partner Eliza milk a high performance herd of about 750 cows on an effective area of about 260 hectares. The family has been dairying on the property for the past 27 years, starting with 135 milking cows when Michael was 16. Big jumps in production have been achieved along the way by adding a property next door and the installation of a 50 unit rotary dairy took the number of milkers to 500. They also have a diversified income stream growing potatoes. “The dairy generates a lot of waste which needs to be properly managed and we have the added benefit of recycling the nutrients back onto our pastures,” Michael said. They installed an Ultra Effluent Management System manufactured by RP

Rural Engineering based at Narooma on the NSW south coast. The dairy washdown is collected in an underground tank where it is agitated and then pumped through an elevated screen at a flow rate of 17 to 21 litres per second. The separator is kept clean with an automated washing system. “We were keen to pump our liquid waste onto the pastures and this system traps all the solid material so the sprinklers don’t block up,” Michael said. A layer of woodchips is applied regularly in the laneways around the dairy to protect the cows feet from soreness and any chips finding their way into the milking yard are effectively screened with the solid waste. The liquid component of the dairy waste is sprayed on pastures using a hard hose irrigator which travels 270 metres in a run. It is applied at a rate of about 12mm over an area of about 40 hectares of pasture. “It’s been a useful source of nutrients and we’ve been able to make savings on fertiliser since the system has been operating,” Michael said.

The separated solids dry out in a bin with a storage capacity of 120 cubic metres. Material is emptied every six months with a front end loader and the waste is stockpiled and spread over pastures in a fairly thick layer once a year. Michael said the family was considering installing a feed pad near the bales to make better use of pasture silage which is currently fed out in the paddock. Their effluent system would comfortably handle the extra volume of liquid waste generated. The feed pad would better fit with a change in production system from seasonal calving in the past year. While the main spring calving herd is still dried off for a period of about eight weeks, they now calve about 130 cows in March. Their supplier Fonterra pays an incentive for winter milk production and the system provides more flexibility for herd calving management, Michael said. Their herd is predominantly Friesian with a few crossbreds with an average milk solids production of about 500 kilograms. Feed base is predominantly ryegrass pasture with each cow fed up to two tonnes of grain in the bale during a lactation. “We’d like to think we can get our herd production up around 600 kilos with improving feed management,” Michael said.

Below: The dairy washdown is collected in an underground tank where it is agitated. Left: It is then pumped through this elevated screen at a flow rate of 17 to 21 litres/second.

Who:

Palmer family Where:

Sisters Creek What:

Effluent management

Michael Palmer in front of the dairy.

Colostrum tips for top calves Providing enough good-quality colostrum very soon after birth gets calves off to a great start. If selling colostrum, make sure you keep sufficient high-quality colostrum from the first milking for herd replacements and sale calves. The cow produces no colostrum post-calving. It is important not to confuse this vital substance with the “colostrum” defined by the milk factory, which is usually the milk from the cow’s first eight milkings that must be withheld from human consumption. Healthy calf development depends on goodquality colostrum fed as soon as possible after birth. Antibodies are not transferred from the cow to the calf before birth and so the calf is born without antibodies to fight disease. Successful colostrum management depends on the three Q’s – quality, quantity and quickly. 1. Quality: Colostrum quality might be reduced if harvested from: • cows that have a dry period less than five weeks • cows that calve early (induced or naturally) • cows with a high volumes of colostrum at first milking (i.e. more than 8.5 litres) • heifers (due to their lower exposure to disease) • Holsteins versus Jerseys • cows that leak prior to calving • cows unmilked for a long period post-calving A Brix refractometer is inexpensive and gives a good indication of antibody content. Good-quality colostrum contains at least 50mg/ml of the major antibody type (IgG). Laboratory testing is the most accurate method. You can also use a glass colostrometer.

Stringy, flaky or bloody colostrum should not be used, although mastitis does not appear to alter colostrum quality. Pooling colostrum is not recommended unless it is all of high-quality. If you collect colostrum straight after birth, it maintains its protective capacity so long as it is stored correctly in the fridge or freezer. Without refrigeration, colostrum lasts about 24 hours before quality starts to deteriorate and bacteria counts start to increase. It can be stored in the fridge for three to four days, but make sure containers are labeled with the date. Give newborns the freshest colostrum and reserve older or poorer-quality colostrum for calves more than 24 hours old. Only freeze good-quality colostrum. Place it in sealed freezer bags on flat trays. Frozen colostrum can be held for 12 months. Thaw slowly. Use warm water (not greater than 60°C) to avoid damaging the antibodies. 2. Quantity: The best way to work out how much colostrum to give to a calf is to measure the antibody concentration. All calves should be given 10-12% of their bodyweight in good-quality colostrum (around 2 litres for the average sized calf) in their first 12 hours and a similar amount in the next 12 hours. You may get better results by giving larger amounts, earlier in the calf’s life. 3. Quickly: The calf’s intestine gradually loses the ability to absorb antibodies — it decreases by 30–50 % within six hours of birth and stops completely between 24 to 36 hours after birth. Providing calves with a known quantity of colostrum is far more reliable than suckling from their dam. Calves left to suckle are 2.5 times likely to receive immunity transfer. Feed via bottle or stomach tube.

This 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 // september 2011

management

Do the maths on cropping this season Dairy farmers will need to carefully examine the economics of growing spring crops this season, according to experts from the Victorian Department of Primary Industries (DPI). DPI Ellinbank-based Dairy Extension Officer Greg O’Brien said the importance of cropping this spring was likely to be different this year compared to recent years. “Normally there is a focus on filling feed deficits due to dry seasonal conditions,” O’Brien said. “However this year, being wetter and hopefully with a reliable spring harvest, there is likely to be less pressure to grow crops to fill feed gaps. “There could be plenty of fodder available for purchase and grain has been tracking at a favourable price. “Farmers need to consider if these options are cheaper than taking pasture out of action to grow a crop.”

Costing a crop When costing a home-grown crop, include all the costs such as the pasture foregone, wastage, risk of a failed crop/low yield, feed-out costs, conservation and transport. A brassica crop might cost around $750 per hectare to sow. Pasture resowing costs need to be considered. If resowing costs $850 per hectare, the total crop cash costs are now $1600 or $266 per tonne, if six tonne per hectare is utilised. This might compare favourably with grain.

Ball-park feed supplied by rain-fed crop Crop

Days per ha of crop * (low yield t DM/ha)

Days per ha of crop * (good yield t DM/ha)

Regrowth Brassica

8 (3)

17 (7)

Turnips

12 (5)

25 (10)

Millet

10 (4)

15 (6)

Sorghum

10 (4)

On the return side, include the benefit from extra yield from the improved pasture. For example, if the new pasture added three tonne more available pasture to the crop yield, nine tonne of feed would be consumed for the $1600 spent, or $178 per tonne.

How much crop? Once a decision is made to crop, consider having the right amount of crop to be sure it can be fully utilised. “It is much cheaper to direct graze than to conserve and feed back,” O’Brien said. “So look for suitable grazing options first. Plan for the crop to come on tap at a time when extra feed is required by the herd. “Work backwards and use planting time and maturity date of the crop to work up a plan. “For example, in mid-September, sow a regrowth brassica that takes eight weeks to mature for grazing in mid-December to early January. “For grazing in the second half of January to early February, maybe

20 (8) * per 100 cows fed 4kgs DM per day

sow an area at the same time with a species that matures in 12 to 14 weeks, like turnips for example. “This can be followed by grazing of regrowth from the first crop, taking you to autumn.” The next question is how much area to sow. Yield is a big variable. Check seasonal outlooks for the spring/ summer rainfall odds. If the odds favour below average rainfall, plan on a lower yield or higher yields if odds favour above average rainfall. Paddock conditions and management are also key factors affecting yield. Later-sown crops are generally more likely to have lower yields due to temperature and moisture being less favourable for establishment. Wet spring conditions may make it difficult to sow a crop early, requiring a different plan. The table above provides an indication of how the resultant yield can influence the number of days grazing per hectare.

Greg O’Brien says farmers need to consider whether buying fodder and grain is cheaper than taking pasture out of action to grow a crop.

Afternoon shift brings 8% more milk ANDREW SWALLOW GIVE COWS fresh pasture in the afternoon, rather than morning, and next autumn you could be harvesting 8% more milk. New research from New Zealand found that was the mean milksolids gain in two mobs of 20 cows given a fresh break after afternoon milking, compared to two matching mobs given their daily shift in the morning. “We observed a strong trend,” lead researcher on the project, AgResearch senior scientist David Pacheco, told Dairy News Australia. While pasture allocation, as measured by platemeter, was the same, as was total dry matter intake per day, higher intake when pasture quality was higher saw the afternoon-shift mobs average 1.23kgMS/cow/day compared to 1.13kgMS/cow/day in the morning-shift mob. While more nitrogen was secreted in milk, excretion with urine was unchanged, says AgResearch’s David Pacheco.

was greater in the afternoon (22.7%) than in the morning (19.9%). The lower crude protein consumption is a reason to be careful about using the afternoon shift strategy in mid-summer if drought is restricting feed availability, says Pacheco. However, he sees no reason why it shouldn’t be deployed in spring, provided the strategy doesn’t stretch labour unduly, making already long days unreasonable. “You may get 1-2% [more The highest spot-grazing milk] that in a scientific paper wouldn’t be significant, rates were observed in the but if it’s there for the farmer afternoon-shift mobs. every day, over time it starts to accumulate.” Improved nitrogen efIn this latest work, the highest spot- ficiency – i.e. more secreted in milk grazing rates were observed in the per unit intake – is also likely. In the April trial, afternoon shifts increased afternoon-shift mobs. Tests during the trial showed the nitrogen use efficiency 18%, though afternoon pasture to be 10.9% water excretion in urine wasn’t significantly soluble carbohydrate, compared to altered. Pacheco says the work, done over 7.6% in the morning, while dry matter contents were 22.7% and 19.9% 12 days following a 14-day adaptarespectively. Crude protein was lower tion period, didn’t stretch to assessin the afternoon (20.5% v 22.2%) as ing if there was any negative effect was neutral detergent fibre (48.8% v on pasture regrowth given the different composition of the herbage con50.4%). Notably, DM content of the grass sumed. The findings are contrary to conventional wisdom that cows will eat less after the afternoon grazing because they stop eating at dusk, which –given the trial was conducted in April – was about 6.30pm, Pacheco says. Previous work has shown most grazing is done in daylight, however the highest intensity grazing often occurs at dusk.

DAIRY NEWS AUSTRALIA // september 2011

management

Farmers can conduct own scientific trials Farmers should conduct their own scientific trials to obtain credible data for soil maintenance. Agricultural consultant Cam Nicholson discussed how farmers can set up their own tests for alternative fertilisers and biological products and validate the results at a Grassland Society Pasture Update at Casterton in western Victoria this month. Nicholson said suppliers often offer anecdotal case studies about their products but the rigour used in analysis often wasn’t strong and the testing not necessarily applicable to local farmers.

“There are emerging opportunities for farmers to conduct their own scientific trials in conjunction with consultants,” he said. “Farmers need results that are applicable to their soil types and their conditions. Some case study from New South Wales doesn’t mean anything to a farmer in south-west Victoria.” For the past three years he has been involved with a Woady Yaloak Catchment Group project funded by Caring for our Country where the impact of different fertilisers has been assessed. Trials on eight sites between Ballarat

Suppliers often offer anecdoted case studies about their products but the rigour used in analysis often isn’t strong.

and Cressy have focused on alternative fertilisers that farmers were interested in using, including pig and chook manure, biosolids, compost tea and seaweed extract. The trials compared use of these alternative fertilisers to traditional products and a `do nothing’ control site. “We found that manures work well with the biggest response in the first year,” Nicholson said. “After three years there has been a decline, which is to be expected, so it is probably time for another application.” Some sites using standard fertilisers

haven’t seen the expected results and more testing will be done to determine why. Nicholson said the trials were designed to help farmers get credible local results to compare additives. “We look at the composition, quality and quantity of growth and make comparisons. “Farmers can do the set-up themselves and then just get a little bit of help from consultants in statistical analysis. “For farmers to have credible research from their own pastures is incredibly powerful.”

Your leading source of top rated bulls! Synchronising needs labour Synchronised breeding programs can help con-

dense calving patterns in dairy herds but they involve more farm labour at joining and calving. The approach may involve fixed time AI programs, where all or most of the herd is inseminated on the same day. It saves the time and hassle of heat detection in the first cycle, but requires extra labour at joining and calving. Dairy Australia’s InCalf project leader, Dr Barry Zimmermann, said synchronised breeding programs resulted in concentrated calving patterns with large numbers of AIbred calves born in the first two weeks. “This concentrated calving can put pressure on farm staff with a surge of cows coming into the dairy and calves to be reared,” Dr Zimmermann said. “In large herds there can be benefits of employing extra people over the calving period. “Some large herds using synchronised breeding programs also use contract calf rearers to take the pressure off the people working on the farm.” Dr Zimmermann said preparation was a key to successful synchronisation programs. “Synchronisation involves handling large numbers of synchronised cows at joining and calving,” he said. Achieving good results required forward planning, especially working out how to have the right people doing the right jobs at the right time, Dr Zimmermann said. For example, large herds may need to be split into smaller groups for joining to minimise the time the cows spend in the yards rather than grazing. “You may need someone on hand to move cattle to and from the yards. And you’ll need more inseminators than usual,” he said. Attention to detail is important to ensure good records are kept at joining and calving. “Make sure someone has the responsibility of recording which cows are joined to which bulls,” he said. With a synchrony program, cows that don’t get in calf to the first round of AI return to heat three weeks later. Be prepared for another round of AI or make sure you have enough bulls to deal with the expected number of returns.

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Red Breeds ABV

Update

August 2011

SIRES

OBAL

2011 GL

ate ABV Upd JerseyAugust 2011

Freecall

Fax 03

047 1800 039

5367 5100

s Gene Code

Pedigree

7H932

Bull Name

-0.40

958

-0.15

784

-0.27

Gene Code

x Amel Taboo TD m x Durha TR TV TL O Man all PLANET Taboo x BW Marsh TV TL O Man Ensenada DOTSON x Amery TV TL Oman Emerson Tomlu JAKE TD Oman all x Patron TR TV TL BW Marsh Lot-O-Rok ROLEX stars Hero x Black Emerson TR TV TL Durham Terrick BINKY x Tugolo TR TV TL Marsh Inquirer Jafral ROSS m Durha TR TV TM Plain-O FINAL X7H7653 Inquirer Melarry X7H7629

Nasis

Bull Name

X7H8081 X14H4956

X14H4916 X7H7173

42/71

103/61 77/54

175/54

443

110

1054

104 105

104

109

106

132/63

166/53 132/61 104/65 96/68 -24/58

119/62 69/69 63/80 12/79 -40/67

103 105 103 100 101

109

$110.00 $55.00

99 104

110 108

for a copy of the latest catalogues and information.

)

(+GST

110

105 61

RRP

ABV[i]

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104 58

$16.00 $18.00

110

106 64

$20.00 $18.00

107

108

105

Freecall 1800 039 047

$24.00 $35.00

106

112

103

120/67

180/57

1269

ABV[i]l

REL %

Calving Ease

% Rel

-0.21

Overal Type

ASI[i]

APR[i]

-0.33

21/66

45/57

-0.57

2011 & ABV(i)s April -0.34 ABVs-0.02 22

48/67

-0.31

105

1438

-0.56

-0.10

69/69

132/61

ree enGIAN RED • NORMA Pedig NDE

Sem Sexed

119/62

166/53

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109

112

1361

-0.42

-0.08

Sire Catalogue 2011 175/54

$32.00 $32.00

109

102

839

-0.36

-0.15

132/63

-0.18

120/67

180/57

0.00

105/63

186/62

-0.06

155/76

188/67

)

$38.00 $110.00

108

112

1287

RRP

(+GST

107

108

683

-0.01

-0.05

97/64

189/54

0.11

189/63

PTY LTD

SIRES

106

110

963

-0.15

GLOBAL G AS

106

1018

-0.11

Mammary System

Overall Type

Milk (Litres)

Fat (%)

0.03

173/65

229/55

Ralma

14H49

AUSSIE RED • ul photo

% Rel

Fat (Kg)

Prot %

Prot (Kg)

ASI[i]

263/56

x O Man GOLDWYN x Aaron TR TV O Man N x Mtoto Gold CROW TV TL Mr Sam Oman G Oman x Mattie JOCKO Long-Langs N one Mr ARDE x Arpag TV Addison Las Farm x Amel TV TL Taboo JOBERT TD m on RAY x Durha TR TV TL O Man Zial Addis ET all PLAN Taboo SZRAY x BW Marsh TV TL O Man Ensenada 1 DOTSON x Amery 7H808 TV TL Oman on Emers Tomlu JAKE TD 56 ed Oman 14H49 x Manfr TR TV TL JOCKO Lot-O-Rok ROLEX 16 son TL 14H49 Emer Tugolo TV Step x Terrick MAYA 3 TV Jocko 7H717 Outside TM TL Morty x Bernardis X FIBRA o S. MAYA TV RD San Fioran ONWA X Morty MONTBFIBRA Andacres ELIARDE 11 • NORWE 14H45

Nasis

TRADIN

om.au

ust.c www.gena

% Rel

ARDEN JOBERT

New Gainf

m.au

APR[i]

1 ABV[i]

201 AUGUST

SIRES WIDE WORLD

IN TEAM

HOLSTE

enaust.co ustralia@g

genetics.a

105 106 111 108

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DAIRY NEWS AUSTRALIA // september 2011

management

Chicory, plantain could extend season Research into the use of alternate forages could extend the grazing season by up to eight weeks and boost farmers’ profits. Department of Primary Industries (DPI) Scientists in South West Victoria have been examining the potential to boost productivity in the dairy industry by lengthening the grazing season through the use of alternate forages. Through trials undertaken at Terang in South West Victoria, the researchers have shown that the use of chicory and plantain can complement the feed supply of perennial ryegrass by extending the grazing season by up to eight weeks.

Using chicory and plantain can complement the feed supply of perennial ryegrass and extend the grazing season by up to eight weeks.

Principal Scientist Dr Joe Jacobs said DPI researchers had been investigating a range of forage options that could fill the feed gaps that occur during the growing season. “One of our first priorities was to identify which high quality forage species can grow from late spring through summer in order to fill a key feed gap created with the current perennial ryegrass based system,” Jacobs said. He said chicory and plantain were specifically considered as they could be established in spring and still produce significant amounts of valuable herbage through the first summer.

Jacobs said the studies to date had provided a very strong indication that chicory and plantain could be effectively utilised by dairy farmers to extend the grazing season. “Both chicory and plantain had slower growth than other species during winter and early spring however, in late

January,” he said. Jacobs also said that the energy and protein levels remained high during this extended growth period. He said extending the growing season could help to boost dairy farmers’ profitability by reducing the need to buy in feed.

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“If we get these species to grow very well into January and February, we are able to get up to an extra two months of high quality grazeable feed which in turn can reduce the reliance on supplementary feeds,” he said. “Perennial ryegrass pastures are a very robust system and when they grow the energy and protein contents are ideal. Our research is about how we can use species that complement perennial ryegrass at key times.” Work is continuing to evaluate the fit of both chicory and plantain into grazing systems with feeding studies planned in the coming years.

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spring when the grasses are starting to slow in growth and lose quality, chicory and plantain fired up and extended the spring growth into late

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Tassie research reveals new dairy fodder hope Tasmanian research

has identified a dairy fodder that offers good potential during droughts. Award-winning young researcher Keith Pembleton was supported by Dairy Australia as he studied lucerne and found it made good use of limited water. It was the first study into the use of irrigated perennial forage legumes as part of the dairy feedbase in the state. “The water use-efficiency potential is quite high for lucerne, which will be helpful for farmers who have a limited supply of irrigation water,” Dr Pembleton said. “Possible strategies might include strategic forage conservation as hay or silage, or growing lucerne in rotation with annual forage crops. “However, there is a bit of year-to-year variability which the farming system will need to be designed to handle.” Deep drainage presented a problem for the crop, as it does for ryegrass, he added. Dr Pembleton is a research fellow at the Tasmanian Institute of Agricultural Research (TIAR) at the University of Tasmania. He said this work on water use efficiency had

confirmed the research findings from last year, which identified the key environmental influences on yield for contrasting lucerne genotypes. “Recently there has been interest from producers, scientists and policy makers in expanding and increasing the utilisation of lucerne within the agricultural and livestock industries across southern Australia and its popularity is increasing among Tasmanian dairy farmers,” Dr Pembleton said. The research involved four lucerne cultivars chosen to give a wide representation of locally available winter activity types and these were irrigated at six sites across Tasmania between July 2007 and July 2008. The greatest response came from a highly winteractive genotype in an irrigated field experiment. A computer based modelling approach was used to extend the field data across the six dairy regions in Tasmania. Dairy Australia supported the research through TIAR’S Beyond 2012 project. His findings were published in the July edition of CSIRO’s publication Crop and Pasture Science.

DAIRY NEWS AUSTRALIA // september 2011

Animalhealth Lameness prevention cheaper than cure The expense of modifying their farm to prevent lameness in their herd will prove cheaper than lost production from lame cows, according to northern Victorian farmer Ashley Galt. Galt runs Galt Bros dairy with his brother, Darren, their father, Dennis, and their respective families. The operation milks 400 Holstein cows for an average of 7500 litres per year on their 150 hectare Shepparton property. The Galts made major changes to their farm after their herd suffered significant lameness issues caused by the wet conditions through summer. “Following the wet conditions through summer, our cows’ hooves were soft and moist plus they had long toenails that were making them walk back on their heels,” Galt said. “We had a lot of lame cows and some were so badly affected we had to dry them off. “We lost production but, luckily, we haven’t lost a cow yet through lameness. “We trimmed the cows’ hooves and put rubber matting everywhere in the dairy so the cows weren’t walking on the abrasive concrete. “We also re-gravelled and re-graded the laneways, which was a big investment but worth it. “We’ll do anything possible to prevent lameness now that we’ve experienced it. “This year it got away from us and we were treating a lot of lame cows with antibiotics before we realised what a big problem it was. We notice lame cows much more quickly now.” The average cost of lameness, including treating the animal, loss of milk production, reduced fertility and weight loss, works out to $556 in a 450-cow herd, according to Innovative Farm Imports owner Peter Best. “In my experience around 25 to 30% of cows go lame throughout the year and this reduces milk production by around 18% per year, so it’s a serious problem,” Best said. “You need to identify lameness early. Don’t wait until it’s severe because the impact on fertility and production increases as the lameness progresses. Catch it early and the cost of treatment is minimal, too.”

Northern Victorian farmer Ashley Galt has modified his family’s farm to prevent another outbreak of lameness.

Who:

The Galt family Where:

Shepparton What:

Lameness

Best said the causes of lameness are varied. The greatest risk to cows comes when they are moving. “Poorly maintained laneways, too much time spent on concrete and impatience when moving the herd can all increase the chance of lameness significantly. “The risk is considerably higher again if the cows’ hooves are not well maintained or if they are very soft.” While it is difficult to eliminate the

NEW

risk of lameness altogether, it is possible to reduce it substantially by reducing the amount of stress on the cows’ hooves and by ensuring the cows are fed a nutritionally appropriate diet that helps to strengthen

their hooves. Animal nutrition expert Tony Edwards of ACE Consulting says laminitis is the main type of lameness associated with nutrition. “The theory is that a drop in ruminal pH levels causes a die-off of microbes resulting in the production of histamines and endotoxins that interfere with blood flow in the hoof with associated inflammation, swelling, haemorrhages and necrosis,” Edwards said.

“This makes for very painful hooves ically effective NDF reduce chew time restricting the movement of the cows and rumination, leading to a reduction in the amount of saliva produced by the and compromising performance.” The Galt family uses Rivalea Opti- animal. “Saliva is rich in sodium, potassium, milk pellets to ensure their herd gets bicarbonates and phosphates and helps the best nutrition all year round. to buffer ruminal Rivalea TerpH. ritory Manager “Nutritionally, Lyndal Hackett, “We had a lot of lame the best way to based in Shep- cows and some were so prevent laminitis parton, says the is to feed a balAustralian pas- badly affected we had to anced ration. ture-based dairy dry them off.” “This begins system pre-disduring transition poses cattle to a period from calving to lactation. The reduction in ruminal pH (acidosis). “Rations that are higher in starches management of these cows is critical to and sugars tend to be lower in neutral the adaption of the rumen microflora to detergent fibre (NDF). Generally, this a higher NFC (non-fibre carbohydrates) is the ideal diet when you’re aiming for and lower NDF ration, thus reducing higher production levels,” Hackett said. the incidence of acidosis after calving “Rations lower in chemical and phys- and consuming the milking ration.”

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DAIRY NEWS AUSTRALIA // september 2011

animal health

Ensure high quality feed for more milk Zita Ritchie THINKING about nutrition once a cow has calved is similar to starting to dig a well once you are thirsty. To avoid this situation you need a series of planned actions to ensure your cows can maintain their optimal condition score and milk production during early lactation. Early lactation usually refers to the first 100 days of lactation. During this phase cows will achieve peak milk production. However their appetite is limited, particularly during the first month of lactation, and cows usually lose

condition in early lactation for about 12 weeks after calving. During this period milk yield increases more rapidly than dry matter intake. Feed intake is the key factor for achieving high milk production and maintaining cow condition. Cows should be encouraged to maximise their intake during early lactation. At calving, appetite is about 75% of maximum and it is not until 10-12 weeks that it reaches its full potential. Feed intake is influenced by a number of factors including level of production, forage quantity and quality, feed digestibility and feeding frequency.

Protein content of 1719% is recommended in early lactation. A feed analysis is recommended.

Tips for feeding cows in early lactation are: • Feed high quality forages. It is important to maximise energy density as appetite is reduced.

• Carry out a feed analysis to ensure you are feeding a high quality diet. Maintaining good rumination is essential in early lactation by feeding enough effective fibre in the diet. A good indicator is that at least half the herd is ruminating while they are resting in the paddock. Protein in early lactation is critical as the amount of body protein that can be mobilised is limited compared with fat. Protein content of 17-19% is recommended. Avoid any abrupt changes to the diet. Transition feeding is important either side of calving, and changes to the diet should be made gradually over a period of a couple of weeks to allow

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time for rumen adaptation (such as with concentrate feeding). If feeding rumen modifiers to the milking herd (such as rumensin), they should be included in the transition diet to allow rumen adjustment. If cows are underfed in early lactation, they partition less energy to milk and more to body condition over the whole lactation. Therefore it is crucial to avoid underfeeding and maximise dry matter intake to ensure high milk production for the whole lactation and to optimise fertility. Zita Ritchie is a member of the Department of Primary Industries’ dairy services team in Warrnambool.

Think future fertility at calving Cows in ideal body condition at calving have better fertility than cows in lower body condition, according to Dairy Australia’s InCalf project leader Dr Barry Zimmermann. Zimmermann says maintaining body condition through calving can be managed through nutrition. “Cows in ideal body condition at calving are more likely to be cycling, submitted for insemination and conceive at the next mating. “Ideal body condition at calving is between condition score of 4.5 and 5.5. “The body condition of Australian dairy cows is scored on a 1-8 system, as outlined in the Condition Magician booklet, available on the web. “We all know that cows lose some body condition in early lactation but those that lose more than one body condition score between mating and calving have reduced fertility. “Most herds have some cows that are too thin at calving and others that lose too much body condition in early lactation, usually after being too fat at calving.” Zimmermann said excessive losses are common when cows calve in body condition score above 5.5 and extended lactation cows are especially prone to be over conditioned if not

Dr Barry Zimmermann

managed well. “Managing body condition is all about managing your herd’s nutrition program. “Improving nutrition from late lactation to early calving pays off in the coming season through improved fertility and milk production.” Some options for improving body condition include: • Improving nutrition for the whole herd during late lactation. • Early drying off for cows below condition score 4.5 at late lactation. • Preferentially feeding cows below condition score 4.5. • Lead feeding in the last few weeks of the dry period. • To minimise body condition loss in early lactation, consider: • Feeding the highest possible quality pasture to cows in early lactation. • Feeding supplements to balance nutrient intake. • Preferentially feeding cows in early lactation if the option is available with your bail feeding system.

DAIRY NEWS AUSTRALIA // september 2011

animal health

Don’t be an ass with sick cows Recently I went on a two day conference to remind me of the importance of emerging and exotic diseases. We discussed diseases like Hendra Virus and the dreaded FMD and how animal health to be prepared for such rob bonanno events. The key message was reasonably common, I will knowing how to identify often ask a few questions, the “zebra” in the herd of take them at their word horses. What I mean by this and dispense an antibiotic is, how do we recognise treatment with the advice something that we may not that if it is not improved within 72 hours, or the have ever seen before? How do I know what is an problem gets worse, to ring important deviation from and I will visit. Everyone is happy then, what I have previously experienced or successfully right? When the call is finally managed? Dairy farmers, in my ex- made several days to weeks, perience, are pretty good at and a few dead calves, later, identifying diseases they it becomes obvious that assuming we knew what was have seen before. While most dairy farm- going on has really made an ers I know secretly think Ass out of both You and Me. Calf scours and illness is they are really just vets who never had the opportunity a complex and often interto attend vet school, there twined series of events. It can involve issues reis a real danger in assuming that you can always fit lating to management of every set of symptoms to prepartum cows, the calva disease that you already ing process, the immune know and understand. Let’s break down Farmers commonly the word “assume”. It misdiagnose makes an ASS out of U and ME, which is pretty different illnesses true when you think as calf scours. about what can happen when we work with only status of the herd, contamhalf of the information re- ination of the calving area quired to actually make the or milk fed to the calves. It also involves issues like correct diagnosis. The area that I most colostrum management, commonly see this mis- calf housing and nutrition, take made is in the diag- management and treatnosis and treatment of calf ment of sick or debilitated calves and even farm strucscours. Over my career, I have tural issues like what assets seen the emergence of dis- you have at your disposal eases like Cryptosporidium for the process of rearing and BVD causing extensive calves. At this busy time of year, calf losses. We add this to the well it is all too easy to assume established culprits like the pattern that we recogRotavirus, Coronavirus, nise from previous experiE.coli, coccidia and Sal- ences is the answer to our monella, and it becomes a problem. However, it is critical, very messy tangle of bugs and the drugs used to treat if we are to be successful them on many dairy farms. in the challenge of rearAt this time of year, I ing good calves or treating often get dairy producers calves for illness, for farmon the phone saying to me: ers to see there is actually “I’ve got Salmonella again. great value in getting their Can I get some antibiotics vet to check affected calves, maybe do a few post morfrom you?” The farmer recognises tems or take some lab samthe symptoms of diarrhoea, ples for diagnostic speciand had previously had a mens. The vet can also look at diagnosis of Salmonella, so he or she ASSUMES that it ways to improve the calf protocols to maximise the is the same problem again. If he or she doesn’t want timely intake of an adeto pay for a visit “just to quate volume of quality cocheck calves”, which is lostrum and address issues

relating to the underlying causes of the immune suppression that has led to the disease outbreak. There are various subsidies and incentives to assist in investigations of serious disease outbreaks. Recognising when something doesn’t quite fit with your previous experiences, or

realising when you are trying just a little too hard to fit the symptoms with a disease you already know about, is a real message that it is time to call in your local dairy vet to help. Rob Bonnano is president of the Australian Cattle Veterinarians Association and a director of the Shepparton Veterinary Clinic.

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DAIRY NEWS AUSTRALIA // september 2011

animal health/calving

Observe feeding time for calf disease Feeding time is the best time to inspect young calves for scours and navelill/joint-ill, the most common diseases of young calves, according to DairyNZ senior scientist Gwyneth Verkerk. Dr Verkerk said calves are rapidly affected by sickness and should be checked twice a day for signs of illhealth. “Feeding time is best as lost appetite is an early sign of illness,” Verkerk said. “Calves with navel-ill and joint-ill usually have a fever, are listless and won’t drink well. “The infected areas are swollen, hot and painful.” Navel and joint-ill often go together and calves born in very muddy pad-

docks or on dirty calving pads are at greatest risk. Infection can also occur if bedding is not clean and dry. “If bacteria spread from the infected navel into the bloodstream, they lodge in joints (usually knees and hocks) which become hot, swollen and painful. The calf will become lame.” Verkerk says these conditions need antibiotic treatment and if not treated early, arthritis develops and the calf may have to be euthanased. Verkerk recommends using your eyes, ears and nose to look for scours. “Watch calves from behind as they feed, often while drinking, they let go. Tails should also be dry and the backs of hocks should be clean. Identify any

Pre-ruminant calves calf you are suspicious have a groove in the of, and check it again gut-wall that connext time.” stricts into a tube diMilk scours are ofverting milk directly ten caused by overto the fourth stomfeeding or poor quality ach. “Sucking triggers milk replacer. groove closure. Calves Verkerk suggests should have to work a establishing regular little to get their milk feeding routines at a as when they have to consistent time each suck hard, the groove day. Dr. Gwyneth Verkerk closes properly. “If a large number “Spill overs can ocof calves are affected suddenly, the problem is most likely cur if teats are old and worn, if calves are tubed incorrectly, or with forcefeeding-related.” Nutritional scours can also occur if feeding by bottle. “The milk sits in the developing rumilk spills into the developing rumen.

men where it turns sour, resulting in bloat and digestive upsets.” Verkerk recommends stimulating the calf to suck on your fingers first, when tubing or bottle-feeding, to help the groove to close. Severe scours cause rapid dehydration and scouring calves need frequent feeding with electrolyte solution. Dehydration is debilitating and can lead to bacteria leaking from the gut into the bloodstream, resulting in blood poisoning and severe disease. “If you suspect an outbreak of scours is due to infection, isolate the affected calves and seek urgent advice from your veterinarian, because these diseases can spread rapidly.”

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farmers can access a new calf rearing guide developed by Dairy Australia and Australian Dairy Farmers online. Rearing Healthy Calves – how to raise calves that thrive, covers all aspects of caring for calves from pre-calving right through to weaning. It is available online at: www.dairyaustralia.com. au/rearing-healthy-calves Dairy Australia’s Healthy Calves program leader, veterinarian Jamie McNeil, said the guide would help farmers keep abreast of industry best practices and recent changes in livestock standards. “The guide is the result of many hours hard work and contribution from leading dairy farmers, animal scientists and vets,” McNeil said. “It includes clear and concise explanations, together with practical examples to help farmers see the concepts in action.” Mc Neil said dairy farmers had asked for a practical guide on all aspects of calf management in order to keep up with new research and regulatory changes. “Producing healthy calves is not simply a matter of following a single recipe for success, and this guide outlines a range of

approaches,” he said. “This guide provides ideas on how dairy farmers can enhance the way they manage calves on your farm. Good calf rearing techniques are key to a profitable herd and help protect the dairy industry’s access to world markets.” Calf rearing comprises nine essential components which the manual covers in detail. These are: • Pre-calving care: heifer target weights, preparing calving environment. • Clean and comfortable environment: ventilation, drainage, bedding. • Identification and traceability: identifying treated and sale calves, NLIS tags. • Colostrum management: absorption and immunity, assessing quality, timing, quantity. • Good nutrition: role of fibre, milk replacers, grain/concentrates. • Residue risk management: residue testing, contamination scenarios. • Health management: prevention, managing sick calves, vaccination, scours. • Weaning management: nutrition, managing disease, weaning age. • Care before transport and sale: new national standards, and care prior to pick up.

IN UDDER WORDS...

Colostrum vital for calves easier to feed, is not a solution, it is too late then for absorption. Tube feeding calves with ‘gold colostrum’ soon after pick-up is the best way to ensure they get enough. Though labour-intensive, this practice will greatly improve many calves’ start in life. New Zealand studies show 33-50% of calves are not well protected, either they do not get enough colostrum or they get it too late. Leaving newborn calves on cows is not insurance against problems; in one study, 33% of calves left with their dams had not suckled after 6 hours, and 20% had not suckled after 18 hours While this may seem surprising, many dairy cows have poor mothering ability. Calves become separated within a herd or by walking under electric tapes, and cold, wet weather causes hypothermia, making calves slow to find a drink after birth. Even with good practice, some calves do not manage to absorb sufficient antibodies. This may be due to poor curd formation in the calf’s stomach which reduces antibody absorption. Adding rennet to colostrum (2 tsp of rennet to 1 L of colostrum) will assist clot formation, but add it just before feeding or the milk will clot in the calf feeder. A dairy cow produces 16-20 L of colostrum, but only 4-6 L are needed to supply the calf with antibodies. Provided ‘gold colostrum’ is saved for newborn calves, the rest can be sold; however, colostrum is still a valuable feed even after. Colostrum stores well, though any containing blood should be fed fresh. It will keep for a week in cold weather or stored in a refrigerator. Gwyneth Verkerk is a senior scientist with DairyNZ

GWYNETH VERKERK UNLIKE HUMAN babies, young ruminants (calves, lambs and kids) are born without any antibodies. They rely on colostrum for their early immunity, and have a brief but critical window for colostrum feeding to give effective disease protection. Calves with insufficient colostrum are more likely to be unthrifty, more prone to infection when disease outbreaks occur, and more likely to develop secondary problems such as pneumonia. Antibodies are proteins too large to cross from gut to bloodstream in adults; but newborn ruminants have microscopic holes in the gut wall that antibodies can pass through. Their ability to absorb antibodies decreases as these pores close; 90% have closed by 12 hours old. By then the calf’s stomach is secreting acid and digestive enzymes which denature antibodies and also limit their absorption So if calves don’t get enough colostrum in the first 12 hours of life, they miss out on essential disease protection. Instead they must activate their own immune system early, and that takes 3-4 weeks to become fully functional. Best quality colostrum (“gold colostrum”) comes from a cow’s first milking after calving. Gold colostrum has 21% total solids – more than double that in normal milk – and the solids content of day 3 colostrum is 13%. Protein accounts for more than half of total solids. ‘Gold colostrum’ has 11% protein, of which nearly half is antibodies. Antibody concentrations fall rapidly, they are almost gone by the second day

after calving. So save the ‘gold co- cific diseases can be boosted by immunising the cow. This is the basis lostrum’ for newborns. Colostrum quality varies be- of vaccines to manage rotavirus; tween cows. Older cows produce giving the vaccine several weeks more antibodies than heifers. In- before calving boosts the amount duced cows and cows in poor body of specific antibodies against the virus in coloscondition produce less coNew research says a trum. Ex per imenlostrums; their tal work in the first milk is 30kg calf should get not ‘gold colos- 3.6litres of colostrum United States has shown that distrum’. While it ease protection is has to be with- by 12 hours of age. maximised when held from supply, it is not good enough to feed to calves receive 6% of their bodynewborns and should be used for weight as colostrum within the older calves. Previous treatment first 6 hours, and a total amount of with dry cow antibiotics will not 12% of their bodyweight within the affect colostrum quality provided first 12 hours of life. This means a the withholding period has been 30 kg calf should get at least 1.5 L at met; but mastitis colostrum and its first feed, and an overall total of milk, and milk from cows being 3.6 L by 12 hours of age. Some calves will not drink this treated with antibiotics within the milk-withholding period, should amount voluntarily. Leaving them until the day after pick-up, in the not be fed to calves. The amount of antibody for spe- hope that hunger will make them

It’s a great season for – PINKEYE Dairy farmers in many regions expect a great start to the season, but anticipate a high fly challenge when the season warms up. And with flies, comes pinkeye. Pinkeye hits dairy farm productivity by reducing the growth and fertility of heifers and creating extra work and cost to treat. Coopers® Animal Health vet Dr Damian O’Brien said pinkeye outbreaks were hard to treat – yet easy to prevent. “Once pinkeye hits, life becomes a daily grind of identifying and treating affected calves, which takes a lot of time. Ointment and eye patch applications can be good treatments, although very labour intensive“ he said. “To add to the hassle, bringing animals in to treat can even help to spread the disease further.” Dr O’Brien said that affected animals could also be rejected for the export dairy heifer market and were not attractive to stud operators. “The worst of pinkeye is that it hits your future, as animals under two years are most susceptible. Pinkeye can reduce growth rates by 3-5%, reduce heifer fertility, cause blindness and reduce sale opportunities. It can also reduce milk production in mature cattle,” he said. Dr O’Brien said that preventing pinkeye used to focus on fly, thistle and dust control, but was now easier than ever with PILIGUARD®, a single dose vaccine to help prevent pinkeye before it starts.” Dr O’Brien said that PILIGUARD works by blocking bacteria from attaching to the cornea and establishing an infection. PILIGUARD performance can be enhanced when used in conjunction with fly control in dairy cattle. “Farmers have told us they find it easy to administer, by treating at least three to six weeks before the pinkeye season, and choosing convenient management times such as when doing clostridial vaccinations.” “Your youngest stock are your farm’s future – why let pinkeye hold them back?”

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DAIRY NEWS AUSTRALIA // september 2011

machinery&products Kubota RTV500 proves worth in winter

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Oliver Carson with the family’s new Kubota RTV500. More durable than an ATV and more flexible than a ute.

They do their own mowing, tedding, raking and the only contractor they use for the whole operation is on a forage harvester. Oliver says that they have had a really good season around Irrewillipe. They had an early start and had grass right through. The average rainfall in this area is 810mm. “It’s been raining here since March, 18 months ago. In summer we had two 0988-GAM-PRESSENRU-FR

nothing to go wrong.” The rear tray tilts up to make unloading easier. The unit has a rollover protection structure integral with the frame which makes for an interesting consideration in the light of the current controversy over ATV working clothes safety and protection. chris dingle Since they bought the unit, the Carsons have brae stud, and runs studs made some modifications for the other two breeds un- to make work easier around the dairy. der the Glenbrae name. “We mounted a spotlight So the decision was made to purchase a Kubota on the roof, which is very RTV500, which Kubota de- good for checking cows at scribes as their ‘two-person night and put in a perspex utility vehicle’, and after rear window pane, so you six weeks the Carsons had don’t get hay down the back of your neck. “We use it for feed“We mounted a ing the calves with spotlight on the grain, which we used to roof, which is very do with the ute. This is quicker and easier, and good for checking at the end of the day you’re not getting wet. cows at night.” “It will take two small square bales of oats or ludone a total of 120 hours. The RTV500 is powered cerne. “We often tow the calf by a 456cc liquid-cooled 15.8hp (11.8kW) two cylin- milk feeder behind the der motor with electronic Kubota and it is good for up calves1 that you fuel injection and utilises Kuhn Ag & Arable Frm Combi picking - Half Page_Layout 02/03/2011 a hydrostatic transmission need to bring back to the shed. system called VHT Plus. “In the middle of a wet Kubota claims this arCOMBILINER rangement means there is winter you can’t get the ute no belt to wear or slip so it into the paddock.” The family is keen on eliminates the need to adFendt tractors and have just belts. It has 4WD and diff lock four models around the which Oliver says is very farm; a 305, a 308, and two 714s with Vario transmisuseful. “It’s a simple unit. There’s sion. For hay and silage they have a Taarup mower/conWho: ditioner, a Lely tedder, KroOliver Carson ne rake and a Kverneland/ Where: Taarup round baler. Irrewillipe As far as growing their own feed goes, this year What: Utility Vehicles they made 4500 tonnes of pit silage and 1500 round Disc coulter innovation bales of hay. SEEDFLEX

weeks of dry, we set up the irrigation, but didn’t need to use it.” Jim explains that they put in a run-off dam 25 years ago and there’s only been two years that it didn’t fill. In those 25 years they’ve irrigated every summer, from December to April, except this year. Right at the moment, Oliver tells us, the herd is averaging 8000 litres per day at 4.9% fat, and 3.7% protein.

Jim checks the figures in his records and confirms that the average annual litres for the Jerseys is 6582, the Ayrshires do 7174 and the Illawarras average 8000. Oliver, Jim and Glenda all share the work around the place and employ two brothers, Paul and Sean Ackerly, who work full time and both did their dairy apprenticeships here. As for the future, Oliver

tells us that they don’t have plans to increase the size of the herd. “There comes a point when you have enough, so we are steady at the moment at this number of cows.” Working Clothes will focus on the performance of a new machine in the paddock each month. Send suggestions to Chris Pringle on 0417 735 001 or email chris@springbankfarm. com.au

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The Carson family at Irrewillipe, just out of Colac in Victoria’s Western District, have always had a couple of ATVs on the place and Oliver Carson says they clock up their fair share of kilometres. “If we followed the manufacturer’s recommendations, we would have had to change over about every ten months,” Oliver said. When the time came to replace one of them they had a good look at what alternatives were on offer at Rhys Evans dealership at Colac, and Oliver said the Kubota RTV concept looked attractive. “It’s a two-seater, you can stay dry and it has a tub at the back, which is extremely handy.” Oliver farms with his parents, Jim and Glenda, who have been on this property for 35 years. They now have a total of 580 hectares, including some leased land, and as of last month they were milking 450 cows, out of a total of about 600, on a 40 unit rotary. Jim’s family has been dairying in this area for over 100 years; Oliver grew up on the place and came home to milk straight from school. The herd is a mixture of Jerseys, Ayrshires and Illawarra Shorthorn. Jim is a renowned Ayrshire breeder with his Glen-

3 Parallelogram design for controlled seeding depth at high speeds. 4 Depth control and press wheel to ensure sound seed-soil contact.

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DAIRY NEWS AUSTRALIA // september 2011

machinery&products

Silotite’s stretch saves money, time Josh East runs his contracting business from the home farm at Marshall Mount, just south of Wollongong. He started contracting seven years ago but his business expanded last year when he bought the customer base and machinery of another contractor he was working for. The machinery that came with the deal was a new Vicon RV2160 baler/ wrapper combo, a John Deere 6630 tractor to run it, a Vicon KMT3201 tine mower/conditioner , with a the tine option that Josh says suits their local grasses better than rollers. There is also a Tonutti Raptor V12 rake, and a Krone ‘Hay bob’ 5 metre tedder rake which does up to 5ha/hour. “The Vicon baler has been good to

me,” East said. “It’s a computerised operation, and having the silage film roll up front makes it great to put in.” East has stuck with Silotite film and buys ten pallets at a time. “Silotite is great. It doesn’t seem to tear, the stretch is unbelievable and it has good storage in the paddock.” The Silotite range has evolved as the extrusion technology incorporated in it has progressed from three layers to five layers. A real benefit of five layer technology is film consistency in terms of uniform thickness. It is this much more consistent film which allows it to be stretched up to 70% from its original length. This extra stretch means operators can wrap more bales per roll saving time, money and waste.

For net-wrapping bales, East uses Rondotex Evolution net, which he says runs ‘clean’ all the time. “I never have problems with it jamming up. The 3150 metre length rolls is a bonus. It means less changing when you’re out on the job.” The Rondotex Evolution net wrap in 3150mm length rolls give excellent bale coverage, with high net breaking strength. The manufacturer provides a core identiﬁcation code for tracking in the event of production issues, and it has a red colour end warning, as well as lifting handles for easier handling. Like all products distributed by Tapex in Australia, they are UV protected for our conditions.

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Kuhn keeps up pace KUHN’S NEW trailed SW 4004 square and round bale wrapper offers many features to contractors, the company reports. The SW 4004 is Kuhn’s first ISOBUS compatible wrapper. Its IntelliWrap system uses electronics and hydraulics to monitor the wrapping process and continuously control film overlap. The operator can easily adjust the number of film layers from the terminal, while the overall capacity of the machine means it can keep up with the output of today’s balers. Kuhn technical service spokesman Chris Bruce says ISOBUS compatibility means the SW 4004 is an easy machine to operate during long days in the paddock. “A key feature is easy change between bale sizes and shapes. It is ideal for a contractor doing wrapping for a variety of operators. Everything is programmed into the system from the start.” With its advanced hydraulics and electronics, the SW 4004 provides smooth operation. The multi-purpose

wrapper features Kuhn’s patented roller design that enables it to wrap the bale horizontally without the risk of contamination. The rollers also allow it to place more film accurately over the entire bale to prevent wrinkling and create a maximum oxygen barrier for excellent silage quality. The innovations on the SW 4004 bale wrapper make a difference when it comes to wrapping and storing high-quality fodder. For example, the wrapper automatically adjusts the wrapping process to match the oil flow from the tractor and the bale shape. Bruce says the SW 4004 also puts in a consistent performance. The Kuhn SW 4004 can wrap bales weighing up to 1500kg. It can handle large square bales of 1.2m x (0.6m-1.0m) x 2.0m, including double bales of 1.2m x 0.7m x 2.0m. It wraps medium square bales of 0.8m x (0.6m– 0.9m) x 2.0m and round bales up to 1.5m in diameter without any additional equipment. Strength and robustness are notable, so is its narrow 2.5m travelling width. Tel. Andrew Snape 0447 352 208

Josh East uses Silotite silage film because it doesn’t seem to tear, the stretch is unbelievable and it has good storage in the paddock.

DAIRY NEWS AUSTRALIA // september 2011

machinery & products

Tongala milking robots prove their worth Peter Costello’s DeLaval voluntary milking system robots have been in operation at his Tongala dairy for about ten months now, and GV Dairy Supplies’ Paul McGrath says that, as expected, the first four months were extremenew products ly hard work. chris dingle “Training the cows to use the sorting gates and breaking them out of their herd mentality was always going to be difficult,” McGrath said. “And the operator had to totally change his dairy management. We did lots of research, but nothing can replace on-the-spot learning.” Paul said the technology has “settled down” now and talking to Peter this month he is really starting to recoup the benefits. “Things are more time-friendly. He can choose when to be in the milking shed, not at precise times morning and night. “Peter has a young family and can now join in outings and, for example, he’s never been able to sit down at breakfast time with them before. “He’s gone from 7 hours a day on milking tasks to 1½ - and that leaves more time for other important jobs to boost on-farm production.” Currently the Costellos are milking 145 cows with others calving down. By the end of the month they should be up to 190. McGrath said you can actually see reduced stress on both the cows and the operator. “This is a true grasslands operation and other farmers are taking notice of the progress. Once people see that it’s not just a gimmick, and that there are real benefits, this market will grow.”

ry for the first time on 6R Series tractors, while maximum lift capacity of the rear hitch is 9550kg on the 6210R.

John Deere 6R tractors upgraded Hot on the heels of last month’s news that John Deere’s new 7R Series tractors are imminent comes the release of their upgraded and restyled 6R Series models. Three large frame models are initially available, the 6170R, 6190R and 6210R, equipped with a Stage IIIB 6.8-litre six-cylinder PowerTech PVX engine rated from 125 to 154 kW (170 to 210 hp), or a maximum of 147 to 176 kW (200 to 240 hp) with Intelligent Power Management (according to 97/68EC). This makes the 6210R the biggest tractor ever built at JD’s Mannheim facility. John Deere says the new 6R Series models offer new levels of power, performance and operator comfort, including improved suspension, unprecedented cab visibility, more powerful hydraulics and increased lift capacities. An optional front PTO and an integrated front hitch with a lift capacity of 4000kg are also available ex-facto-

Baler sales slow Machinery sales in the agricultural industry right now are virtually identical to last year, according to the industry statistician, Agriview’s Alan Kirsten. “Things are going pretty well at the moment. There is a lot of enquiry and pre-ordering of tillage and seeding equipment for next year,” he said. “In fact, a lot of companies are struggling to keep up with orders. “Field days have been well-attended with a high level of farmer confidence, and that indicates a good outlook across most sectors, despite the high exchange rate. “However the main concentration has been on broadacre machinery. Baler sales are slow, which suggests that the dairy sector is quiet. “I would expect a big year next year in the hay and

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John Deere says the new 6R Series models offer new levels of power, performance and operator comfort.

silage sector as farmers set to re-equipping their enterprises.” Over at PFG, grass machinery harvesting sales manager, Tim Lawrence, said generally things are ticking along well with an encouraging level of enquiry at retail outlets, while they are waiting their latest Vicon balers to arrive in the country.

Better welding warranty There is always a welding job to be done around the milking shed or out on the farm, and a bit of good news is that Welding Industries of Australia (WIA) has extended the warranty period on their Weldmatic range of MIG welders. They have increased it by an extra 12 months, to four years. The Weldmatic range includes both single- and three phase machines. But be quick, the extended warranty only applies to MIG welding machines invoiced between July 1 and December 31. More information is available at www.welding.com.au

New rep passionate about dairy The new territory manager for fodder packaging specialist, Tapex Pty Ltd, looking after North Central Victoria and Gippsland, has a fervent passion for the dairy industry. Renata Cumming has taken up the new role in August after workTillage and seeding equipment ing for Tapex as a Plasback Advoon their silage wrap recycling sales are strong but baler sales cate program. are slow, which suggests that Renata studied at Dookie Ag College and then worked for the Geofthe dairy sector is quiet. frey Gardiner Dairy Foundation, learning about the corporate side of the dairy industry. She has since worked for three years on dairy farms near Maffra, in Victoria’s Gippsland region. Renata is also enthusiastic about being a positive advocate for young farming professionals, particularly females, and is on the committee for the Young Dairy Development Program (YDDP) in Gippsland. Contact Chris on 0417 735 001 or email chris@springbankfarm.com.au

DAIRY NEWS AUSTRALIA // september 2011

machinery&products

JCB proves versatility bar and 6-metre Lely multidisc FOR Pyramid Hill farmer with front-mounted box. Daniel O’Toole, a new machine “During harvest it is on the is only as good as the service chaser bin and in between it is behind it and this is principally on the spreader. We spread cow why he has a special liking for manure over the dryland counJCB equipment and his local try, loading it on at 4-5 metres dealer, Michaels of Moama. per acre over 500 acres every Daniel, together with his year.” wife, Hayley, and their sons, A heavy-duty, category three Blake, Brodie and Riley, operrear linkage system provides ate broadacre cropping and lift capacity to 10,000 kilodairy enterprises over the JCB Pacific Regional Manager John Smith, grams, with electronic control family’s 1820 hectare property, Pyramid Hill producer Daniel O’Toole and Brad of all functions. Maloga Downs. Michael, of JCB dealer Michaels of Moama in The category two front linkThey grow canola, wheat, north-central Victoria, with Daniel’s 7230 age has a lift capacity of 3500kg barley and lupins and since Fastrac tractor. and is available as an option. purchasing a neighbouring The O’Toole’s JCB 434S dairy on a 200ha property in wheeled loader performs all their 2000 as part of a focus to value-add Krone loader wagon,” O’Toole said. “To keep the weeds down on the silage work, including making up to their grain production, they have increased their milking cow numbers broadacre country, I go around the seven to eight feeds a day with their paddocks with the front mower and mixer wagon. from 120 to 1100. The 171kW (230hp) JCB 434S The range of JCB equipment they the wagon on the back, which chops wheeled loader combines a high outhave purchased from Michaels of it up for green feed for the dairy. “I also have a 25-foot MacDon win- put engine and driveline within a Moama has included an 8250 Series II Fastrac tractor, a 434S ‘Agri’ drower that goes on the front with low weight machine to provide maxiwheeled loader and a Robot 170 skid the linkage. If I am cutting cereals for mum pushing power. The high power to weight ratio alsilage, I use the windrower because it steer loader. lows the machine to climb the silage “The JCB has front linkage and gets over the country quicker. “For seeding we use the clip-on clamp faster and with a bigger payPTO, so I can use a front mower and a back mower, and I have also got a duals and it pulls the 36-foot Gason load.

Lely wrappers suit all types Lely Australia has released two round bale wrappers in time for the 2011 hay and silage season – the smaller Lely Attis PT130 and the larger Lely Attis PS160. Lely managing director Clive Edwards says the Lely Attis PS160 is the ideal machine for large farmers and contractors due to the short time required for loading, wrapping and discharging, as well as the outstanding ease of use of the fully automatic E-Link controls. Edwards says the Lely Attis PS160 is very easy to operate while the twin satellite inline wrapper offers outstanding output for busy farms and contractors wrapping bales between 0.9m to 1.6m in diameter and up to 1500kg. The wrapper can be easily adjusted to different bale diameters making it a very versatile wrapper. “The unique design of the draw bar and offset axle

The Lely Attis PT130 can wrap bales up to 1000kg.

positions on the Lely Attis PS160 give outstanding ease of operation and high output in all types of conditions with large heavy bales,” Edwards says. Edwards describes the Lely Attis PT130 as a simple wrapper with a low position wrapping table and loading arm. This gives a maximum bale diameter of 1.5m and is suitable for wrapping bales up to 1000kg. The right-hand wheel can be extended for extra stability. The wrapper is semi-automatic and is

controlled from the tractor cabin by means of an electronic monitor. Other features included on all Lely Attis wrappers are end tipping for placing the round bale on its end and storage holders for spare rolls of film. All Attis wrapper controllers are electronic for ease of operation from the tractor platform or cabin. Edwards says he is excited by the company’s decision to manufacture silage equipment with the Australian conditions in mind. Tel. (03) 5484 4000

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DAIRY NEWS AUSTRALIA // september 2011

motoring

Defender powers on A NEW 2.2L diesel engine in Land Rover’s Defender will raise performance and refinement, the New Zealand distributor says. The 2012 model will be here by Christmas. The smaller capacity motor has power, torque and economy equal to the 2.4 L motor it replaces. This will be the cleanest Land Rover Defender yet, sold here in six different models priced from $61,500. The Defender’s specification was upgraded in 2007, including a new facia and six-speed manual transmission. “With the new 2.2 L diesel, the Defender for 2012 offers greater customer choice than ever,” says John Edwards, Land Rover global brand director. The 2.2 L diesel engine has a new, full acoustic cover, instead of the former splash cover. This reduces radiated engine noise. Though smaller, the new engine produces the same power as its predecessor: 95 kW@3500rpm and torque, 360Nm@2000rpm. CO2 emissions on the combined cycle are consistent at 266g/km for the 90 and 295g/km for the 110 and 130. The six-speed gearbox has been retained for 2012, with a high top

EarthCruiser makes Australian debut The 2012 Defender is the cleanest Land Rover yet.

gear for cruising, and enhanced lowspeed crawl capability in first gear. New Zealand defenders are available in an SE trim level inclusive of part leather seats and a leather covered steering wheel. Standard features include air conditioning, CD player with auxiliary input, carpeted floors, low-line cubby and rear stowage net in station wagon models. The exterior includes a Brunel grille and headlamp surrounds, body coloured roof, wheel arches and side runners, ABS brakes, heavy duty wheel rims and MTR tyres, tow ball and under-ride protection bar (90SW & 110CC).

A plain black hood will now be available as an option while a plain beige hood will be introduced for the 110 double cab pick-up. All models have tinted glass. The facia is based on a single, large moulding on a steel rail to help eliminate squeaks and rattles. The instruments are clear and concise. Details such as all-LED illumination help ensure reliability. Powerful heating and ventilation copes with extreme climates. Aluminium plate-and-fin heat exchangers perform impressively. Tall front seats give lots of back support and head restraint. Second row seats are also supportive.

EarthCruiser, the unique go-anywhere Australian all-wheel-drive motor home, will make its Victorian debut at the National 4x4 Outdoors Show and Fishing and Boating Expo at the Melbourne Showgrounds September 2 – 4. Designed and built in Queensland, the EarthCruiser is designed to travel the world while providing a totally independent lifestyle. The EarthCruiser design is a complete module with a powered elevating roof that contains sleeping and accommodation for two or four travellers with heating, cooking and water heating systems powered by diesel fuel and electricity generation by solar panels. The EarthCruiser is mounted on a Mitsubishi Fuso all-wheel-drive Canter and is perfectly sized for transportation anywhere in the world in a standard shipping container. Lance Gillies of EarthCruiser says the company is already exporting to the Unit-

ed States, Spain, Egypt and the UK. “Many of our customers are travelling to Australia to collect their EarthCruiser personally and then enjoy a trip around our country before shipping it overseas for further adventures. “It’s a totally unique concept and offers total independence and an unmatched off road ability. “By teaming the EarthCruiser with a Mitsubishi Fuso Canter it is supported globally for total peace of mind.” With its specially designed soft ride/ hard road suspension kit and super-single 36 inch Michelin XZL tyres, the EarthCruiser is capable of negotiating long distance desert crossings and endless kilometres of corrugated and rough outback roads in comfort. At the end of the travelling day EarthCruiser can provide a hot shower, a cold drink from the fridge, and a comfortable bed for the night. www.earthcruiser.com.au

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