Dairy News Australia Issue 20 November 2011

versatile kubota tractors

Calls for further industry investment Page 6

Page 32

compost dead cows Page 21

november 2011 Issue 20 // www.dairynewsaustralia.com.au

Carbon tax bites

“Trust no-one, there will be a lot of sharks out there trying to make money out of it.”

PAGE 5

“we make farming ezy”

• S • H • S • A • Ne MIL

#1

ra

BA fo

nc

CK

rH

er

rin

IN

gb

G

on

e

BA

Sh

ed

R

e

s

&

PA S

ORD

CA

ST

TU

RE

Buy ER T O $85 now DAY f 0$15 rom 95*

GA

UG

B CA LO EZE ST OD RA LE TO SS R®

igh

t.

No r $1 mall 49 y 5

IR Y

RA TO R

S

E

TR TIR PT IB EX AN Eq Pl D u Un ipp us™ e i q Int ue d W ith Sy ellis ste en m! se

®

fre

DA

TE

SW

AT S

CA

PR

H

AY E

R

DD

PA C

IF

IE

R

Ne An wte Co im k® n a Un tro l it l

For These & More Dairy Farm Solutions... FREE Ph: 1800 124 034 www.technipharm.com.au

N

EW

Y

St 65 and Ex 0 H ard 65 ten x 5 : Sl 0/8 dab 00 71 imli 50 le: D x 70 - 1 0 H ne: H x 0m 60 33 x 0 0m 46 m D L m 0D x8 L x1 00 00 m m 5 L

“we make farming ezy”

TH1140au 4/4/11

to TO mi “Co u E h -a w m ch ve ll OF *Cond upe and elec uto w b KC lk, an s are re igh GA P T au & ca eas dow ry a Ho rfa y itio to lib ur n te t c HE d it’s rela cta lift g TE EC m ns st po cow mp k-l at rate es Ha ofc CA it di ck ap e H ea xed ng ic a C gi et s fo rat sc ply t al s R a ™ n sy a u e -s r t K u r r ly a . e M d E e re l iz Al l e d f n t a l E a o o n e ry lp er d ‘e r ca ke c r s R i o as ric p e y n ™ w m re s t y r p g es ™ y ar od ard ou a of pe to ith ex ate uc a of h kin r cl. se wr f th nsa br o g mo e m er e’ ist GS to ee ov re st ap r T, bs ore ze es r s y i a n ” ul ... p su t

HO

Dairy NewS AUSTRALIA november 2011

news // 3

MG revises forecast

Victorian farmer Barry Smith has already recouped the costs of yield and cell count in-line sensors bought in December.

PG.25

Victorian farmer Troy Stuart weighs all 600 cows every milking for a fertility trial.

PG.28

Gippsland farmer Michael Armstrong has bought a new Case Puma 140 to feed silage and top paddocks. PG.30

News ������������������������������������������������������3-15 Opinion ���������������������������������������������� 16-17 Agribusiness ������������������������������18-19 Management ������������������������������ 20-24 Animal Health �������������������������� 25-29 Machinery & Products ��������������������������������������30-33 motoring ��������������������������������������������� 34

Murray Goulburn announced the first step-up of its farmgate milk price this season but at the same time reduced its expected final price to $5.30 a kilogram of milk solids.

The current price has risen by 20c/kg protein and 8c/kg butterfat but new Managing Director Gary Helou has told suppliers the final price should be around $5.30kg/MS because of “current uncertainties in the market place”.

MG said in June its market forecast suggests a final price in the range of $5.30-$5.50/kg MS but that this would be updated on a regular basis throughout the year.

“The softening world market prices compounded by a strengthening Australian dollar remains a big concern as they significantly impact company profitability and ultimately the final milk price,” Helou told suppliers.

“We need to be very vigilant in marketing our products at the highest possible value-add point and importantly at the lowest cost base.

“This will be a key theme for Murray Goulburn as we chart our future roadmap in the face of increasing world market volatility.”

The announcement follows Dairy Australia’s revised forecast in its Situation & Outlook update released in September.

DA maintained its $5.10 - $5.50kg milk solids (MS) forecast range for southern full year prices but said its expectations were toward the lower end of that range.

New Zealand co-op Fonterra also revised its final season payout to its New Zealand suppliers last month, reducing the farmgate price of its payout from $6.75kg/MS to $6.30kg/MS. Warrnambool Cheese and Butter suppliers will also receive an increase of 8c/kg butterfat and 20c/kg protein. WCB is also reviewing its forecast price.

Rabobank analyst Hayley Moynihan says the gradual easing in markets is more or less as anticipated, with a strong start to the Southern Hemisphere’s season coinciding with continued growth in northern hemisphere exports.

“The [northern and southern hemisphere] milk flows have overlapped more than usual this year. That’s boosted supply availability. There would need to be some pretty exceptional buying to absorb all that.”

In the same period last year China was very active, as was Russia due to drought. This year

“Consumption has plateaued at best and in the US liquid milk consumption has actually declined.

That’s putting more milk onto the world market, and it’s hard to see that changing.

“But the emerging markets are still performing quite well, particularly the Middle East “Softening world market prices and Latin America. South East Asia is more Some markets are going quite well. and the strong Australian dollar patchy.

Others are feeling the pinch a bit.” remains a big concern.”

The first global Dairy Trade auction of the month saw the trade weighted all con“As it slows down that may impact consump- tracts average down 1.2%.

Milk protein concentrate and anhydrous tion a bit but from a dairy point of view there’s milk fat were the big fallers, down 10.7% and likely to be fairly minimal impact.

“Domestic feed costs, and consequently the 9.3% at $US5,608/t and $US3,309/t respeccost of domestic production, are still quite high.” tively, while wholemilk powder was back just Globally, demand for dairy is “still quite robust, 0.8% at $US3,487/t and skim powder up 0.2% at though perhaps a little more patchy particularly in $US3,292/t.

Rennet Casein leapt 35.3% to $US9,182/t. the US and EU,” she adds. that demand’s not there, though extra demand from China “may still come,” she notes.

Talks of a slowdown in the Asian giant’s economy are not of too great a concern for dairy markets, she believes.

An energy audit of a Fish Creek, Victoria, dairy conducted by Gabriel Hakim of AgVet Projects revealed substantial cost savings. See Page 23

Dairy News AUSTRALIA November 2011

4 // news: senate report

Griffin shocked by Farmers left supermarket report

exposed The Senate Econom-

Farmers at the Queensland Dairyfarmers' Organisation conference in September showed their frustration to Coles Merchandise Director John Durkan.

Australian Dairy

Farmers President Chris Griffin is extremely disappointed with the senate inquiry into the impacts of supermarket price decisions on the dairy industry.

“While dairy farmers are leaving the industry the Committee has recommended four reviews, one study and one consultation process. We need action,” Griffin said.

“This cut-throat discounting by Coles has now been going on for nine months and it is time the Government took action to stop it. This is the second inquiry in two years. The time for talking is over, we need action.

“We know what the issues are, we know this cutthroat discounting ultimately flows on to the farmers and their fami-

lies and we know the UK Competition Commission had to take legislative action to re-balance the market power of the supermarkets there.

“The Government must take action to balance the unfair market power of the two big supermarkets and provide

tive bargaining laws and arrangements for agricultural industries, with a view to strengthening that framework to create a more equitable balance of power between the negotiating parties.

■■ That processor’s contracts with dairy farmers “should offer a clear, “The committee has consistent recommended four formula for reviews, one study milk pricing and one consultation with unambiguous conprocess.” ditions”

- Chris Griffin and “not be dependent fairness and transparency on the final retail sales along the supply chain.” of branded versus priThe eagerly awaited vate label milk”. This report made seven recomwas to address the case mendations, including: of Parmalat suppli■■ That government ers in Queensland who received a smaller milk review the effeccheque when branded tiveness of collec-

■■

■■

■■

sales fell as a result of Coles discounting their house brand milk.

A Government study of the dairy industries in Queensland, NSW and Western Australia to focus on the sustainability of the industry and examine possible policy options.

An independent review of the competition provisions of the Competions and Consumer Act 2010. This was because the effectiveness of Australia’s competition laws has been raised in the context of various sectors and has been considered by this committee on numerous occasions.

A review of the effectiveness of the Produce and Grocery Code Ombudsman and to

consult on whether a new statutory office to address supply relationships in the grocery sector is needed.

Griffin said the Government had to take action to balance the unfair market power of the two big supermarkets and provide fairness and transparency along the supply chain.

Griffin said Coles and Woolworths have unparalleled market power that is not replicated anywhere else in the world.

The top five supermarket chains in the United Kingdom have about 80% of the market, the same as Coles and Woolworths here in Australia.

“This cannot be good for competition in the long term and is definitely not good for the supermarkets’ suppliers.

ics Committee’s report into the impact of supermarket pricing decisions on the dairy industry is a let-down for farmers and sends mixed messages about the urgent need for action on the retail milk war, according to the Queensland Dairyfarmers’ Organisation.

QDO president Brian Tessmann said the main recommendations of the report failed to make any notable recommendations that would alleviate the impacts of the retail milk price war of $1/litre.

However, parts of the report and the non-Labor Government committee members delivered scathing attacks on the major supermarkets and the impact that the price war would have and is having on farmers.

QDO supports the recommendations made by some members of the Senate Economics Committee.

“Instead of action, the bulk of the report has focused on suggestions of more studies and reviews.

We don’t need more studies and reviews; we need action,” Tessmann said.

Tessmann said it was extremely short-sighted for some of the Senators to be focusing on supposed “cheap milk” and the alleged benefits of the price war, when it had been made clear that milk was being used as a near or below cost marketing agent and the power of the supermarket duopoly was wreaking havoc on farmers, processors, and smaller milk vendors.

“The fact is that the supermarkets are focused first and foremost on their profits. We know that milk has been used as a marketing agent, while other products have increased in price. So this report, and seemingly the Government’s response, is a major disappointment for farmers and consumers.”

Tessmann said the report did contain sensible recommendations from

Senators Xenophon, Williams, Heffernan, Madigan and Milne.

“This Minority Report has made sensible and workable recommendations – we call on the Government to support it.”

Tessmann said that it had taken 266 days, five public hearings, and more than 200 submissions and additional information for the Senate to compile its report, and that it was the second such inquiry and report in two years.

“The Queensland industry supplies virtually all of its milk into the fresh drinking milk market, and therefore we are among the most exposed to the ruthless milk discounting war, along with other states including NSW and WA. “We have been relentless in providing the Inquiry with detailed information on the impacts of the milk war.

“At the end of the day, it is now clear to everyone that $1/litre milk is not sustainable, and that the huge amounts of power that is wielded by the major supermarkets needs to be reined in for the good of farmers, milk processors, and ultimately consumers.

“The dairy industry has put forward sensible and realistic recommendations to address the current problems. We now need the Federal Government to work with the dairy industry to have these recommendations put into action as soon as possible.”

The recommendations include: ■■ A mandatory whole of supply chain code of conduct, headed by an Ombudsman or Commissioner that can enforce the code, and ensure that contracts, prices and supply conditions are not unsustainable, ■■ Strengthening the Competition and Consumer Act 2010 to prevent predatory pricing and deceptive and misleading conduct.

Dairy NewS AUSTRALIA november 2011

news // 5

Approach CFI with caution Dairy farmers have been told to keep their focus on the main game of producing food as they come to grips with new carbon legislation.

Farmers were told at a Clearing the Carbon Confusion seminar in Warrnambool recently that they should become informed about carbon saving options but should not rush into any deals.

A panel of experts told the seminar that farmers should only pursue carbon offsets if they complement and enhance their core business of producing food.

Farmers were told many of the savings needed to reduce a farm’s carbon footprint made good business sense and would improve production and result in cost savings.

They would also not be forced to enter in the Carbon Farming Initiative.

The seminar featured presentations

by DPI Climate Extension Specialist Graeme Anderson, Glenelg Hopkins CMA Regional Landcare Facilitator Bruce Knee and DPI Policy Manager

“Trust no-one, there will be a lot of sharks out there trying to make money out of it.”

– Bruce Knee

David Griffin.

Griffin said the Federal Coalition was unlikely to repeal the Carbon Farming Initiative (CFI), but reserved the right to amend the legislation.

He said the CFI – designed by the Government to help farmers produce carbon credits - was ambitious but voluntary.

“Farmers should hasten slowly and adopt a watch and wait attitude. There will be costs and potential risks and if

farmers go into it they should have their eyes open,” Griffin said.

The pathways to achieving offsets were explained, including the need for offsets to be underpinned by scientific research and the option for aggregators to develop the methodology for projects on behalf of individual farmers.

Knee explained about the high levels of emissions from farms in the form of methane and nitrous oxide and said that while it was important for farm-

ers to know about the CFI they should approach it with caution.

“Trust no-one, there will be a lot of sharks out there trying to make money out if it,” Knee said.

He said farmers could be a project proponent but would need to adopt a methodology and be responsible for its development.

“The other option, which might be best for farmers, is to go with an aggregator but be sure you know and trust them.”

Farmers were warned that to claim offsets for tree planting they would have to lock up land for a century.

Anderson said farmers were anxious about carbon legislation.

“It has been brewing for a long time.

There will be uncertainties along the way but it is not going away and we have to deal with it.”

Anderson said farmers were already active in many of the areas that would lead to increased milk production per cow and emissions efficiency.

These include energy efficiency, farm forests, soil carbon, nitrogen efficiency and improving livestock and methane performance.

“The least profitable farms have the highest emissions intensity,” Anderson said.

“There are efficiency drivers that make good business sense for farmers and a lot of work is already being done in these areas,” he said.

“We are all on the same path of trying to find ways to reduce emissions.”

Anderson said farmers “can sleep easy tonight” because the CFI is voluntary.

“But you should stay tuned and stay informed, watch for implications on the supply chain and look closely before signing a contract for carbon storage.”

The seminar was presented by the Department of Primary Industries, Glenelg Hopkins CMA, Heytesbury District Landcare Network, Dairy Australia and the Australian Governments Climate Change Research Program.

Carbon tax will slug farmers $3000 Fonterra Managing Director John Doumani says the Federal Government’s carbon tax will increase electricity costs by about $3000 per farm.

Fonterra has asked the Government for greater assistance for farmers to help them transition to low carbon technologies.

“The reality is that dairy farmers engage in energy intensive processing, so they should be eligible for funding to help them adapt,” Doumani told a Rural Press Club of Victoria breakfast last month.

“We have been talking to Government about the special needs of dairy farming and so far, they are very receptive of the message.

“The biggest likely impact of carbon pricing for dairy farmers will be electricity price increases.

“We expect the Government’s

carbon pricing will have a direct impact of about $3000 per dairy farm per year on average in terms of increased electricity costs.”

Doumani said Fonterra will help its suppliers identify ways to reduce electricity use on-farm today in preparation for the carbon tax.

“We accept that a low carbon future is inevitable and a challenge that we have to face but it is also an opportunity to innovate, invest and drive for a more competitive future.

“We have initiated a series of programs to reduce our carbon emissions across our manufacturing operations, and now we are turning our attention to how we can help our farmer suppliers.”

Fonterra has launched a guide to provide dairy farmers with practical advice on how to manage the electricity cost increases of carbon pricing.

John Doumani

It covers the key areas of on-farm electricity usage and helps farmers complete a self-assessment of their operations.

Doumani said the guide is just the first piece in an overall program to help Fonterra’s suppliers prepare for a new low carbon economy.

“We have been engaging with our

farmer suppliers here in Australia in necessary to implement change.”

The guide includes a calculator conversations around sustainability.

“What they tell us is they want to to help farmers consider their operate a sustainable business and they likely electricity bill increases and want to reduce their carbon emissions, a self-assessment tool to help them especially in light of the additional costs understand how their operation rates that will be associated with the carbon against best practice electricity usage. pricing, but that they don’t know how to do “Carbon pricing will have a it or fund it.

“What they direct impact of about $3000 want is indepen- per dairy farm per year in dent advice from increased electricity costs.” someone who really understands dairyFonterra will also run information ing to advise them on what technolosessions for farmers and provide gies to employ.

“Farmers are telling us that they are expertise to assist with on-farm wary of the snake oil salesmen knocking assessments.

“We have listened to our farmers’ on their doors offering a whole range of concerns and now we want to help dubious solutions.

“They are concerned about them make informed decisions for their unproven technologies and capital costs businesses,” Doumani said.

Dairy News AUSTRALIA November 2011

6 // news

Industry investment would boost returns, confidence Liz Cotton

Increased investment in processing and

marketing can lead to new opportunities and a better return for farmers as well as causing a “spiral effect” for confidence in the dairy industry.

However, a lack of investment can result in the opposite, according to Norco Chairman Greg McNamara.

The dairy industry has seen a number of significant changes in the past decade, particularly in the processing and manufacturing sector.

During the late 1980s to 1999, the manufacturing sector was rationalised through company mergers.

This has continued over the past decade, resulting in increased foreign ownership and a reduction in the market share of farmer owned cooperatives.

McNamara believes the manufacturing sector is “not looking to grow” through investing enough in new technologies or innovations, played into in part by declining milk production levels.

The impact on farmers is one of “uncertainty and a lack of confidence to grow their own businesses into the future.”

“It also has a downward spiral effect, but processors should be encouraging farmers to invest on-farm and grow their herds because more milk should then lead to more

“The inability by processors to handle excess milk is a huge problem for the industry.”

Norco Chairman Greg McNamara says the tier-pricing system penalises farmers who want to grow their herds.

investment by processors who should be chasing new markets and new products, rather than just filling their current market.”

“At Norco, we are investing in new technologies to improve our cost structure and to develop new products and markets. This is good for our

farmers who can see our commitment to the industry in real terms.”

In order to grow both the production and manufacturing sides of the dairy industry and achieve the best possible returns for both parties, McNamara believes a likeminded attitude towards investment needs to occur.

“In times gone by, if a processor wanted to develop or expand, the farmer was simultaneously expected to invest in the process – almost at a 1:1 ratio.

“Vice versa, this was also the case for farmgate investment. We need to get people thinking; what technology do we need to increase profitability.”

A case in point was the acquisition of Dairy Farmers by Lion (then National Foods) during 2008–09.

Lion has rationalised its cheese making facilities and last year introduced tier pricing to its suppliers, paying a higher price for the percentage of milk it requires, and a lower price for the milk it doesn’t.

McNamara believes the tier-pricing system penalises farmers who “want to grow their herd and production levels.”

“The inability by processors to handle excess

Western Victoria farmer Roma Britnell says government policies do not support growth or investment.

milk is a huge problem for the industry and when a processor loses a contract, this has big implications for farmers,” McNamara said.

“I also have a problem with manufacturers who chose not to invest and then push this back onto the farmers, who in the end may take home 20-30% less than the value of their milk.”

Climatic events, deregulation, existing and future government policy, including plans to implement a carbon pricing structure and policy surrounding water security, have also heavily impacted the sector and levels of investment within it.

In addition to the challenges faced in manufacturing, government policy is “limiting the con-

fidence to invest in the dairy industry”, according to Nuffield scholar and Western Victorian farmer, Roma Britnell, Woolsthorpe.

“As a nation we are particularly well placed to capture the opportunities that a growing world presents. Our own internal policies, however, are holding us up,” she said.

Britnell believes uncertainty lies on the farmer’s doorstep through government policies that do not support growth or investment, such as the unknowns of the Murray Darling Basin Plan, the Carbon Tax legislation with its flow-on costs to farmers, and reductions in funding to research and development.

“All of these aspects, coupled with global uncer-

tainty, really limit confidence in the dairy sector,” Britnell said.

“Despite the opportunities, our perception does not match the reality and confidence is lowered.

“It is not surprising therefore those other countries, which recognise issues of food security and have a plan for the future, can come in and capture the opportunities from underneath our nose.”

Britnell says she is also worried about a lack of understanding by some in the dairy sector surrounding the benefits of collective cooperative behaviour and research and development.

The supermarket war on milk pricing is a major factor impacting how farming investment decisions are made, the Amalgamated Milk Vendors Association told the Senate Inquiry investigating the effects of supermarket price decisions on the dairy industry.

“Uncertainties in the dairy industry related to future prices and profitability could affect investment decisions made by farmers,” the AMVA said.

“The current action instigated by Coles will further damage the confidence of the dairy industry and may have the added effect of reducing Australia’s total milk production.

“Already, there are indications by some dairy farmers that they are not prepared to invest further funds in their farms and will exit the industry.”

Dairy NewS AUSTRALIA november 2011

news // 7

MG Tas expansion lifts confidence Liz Cotton

Murray Goulburn’s investment

in Tasmanian processing through its Tasmanian Dairy Products joint venture has increased confidence in the state’s farmers, according to a prominent real estate agent.

Betty Kay, of Betty Kay Realty, Circular Head, said the Victorian-based co-op’s investment will provide another market, increasing competition not only for milk supply but for dairy properties.

She said Murray Goulburn’s show of faith in the industry could instil confidence in large-scale investors.

Kay believes economies

of scale can be achieved by large-scale investors through the amalgamation of Tasmanian dairy properties.

“We have the advantage of low cost production and with plenty of quality properties on the market I strongly believe it is an opportune time for superannuation companies and corporate investors to enter the market here.

“They could potentially buy 23-25 farms with the confidence of the manufacturing sector’s investment and commitment to dairy in Tasmania.”

Already this year, the Sustainable Agricultural Fund – an unlisted investment fund - expanded its investment in the Tasmanian dairy industry with the purchase of two dairies

Dairy property values fall LIZ COTTON

Victorian dairy

properties are struggling to hold their value due to high debt levels, an oversupply of farms and a high Australian dollar, impacting Australian and foreign buyer interest.

RuralCo’s Graham Meneilly, Tatura, said prices from the few recent sales are down more than 20% from peak levels.

“We are seeing more confidence in the industry, but after the drought, a lot of people who came out the other side are now looking to retire and we are seeing a lot of farms come on to the market,” Meneilly said.

A 140 hectare Warrnambool dairy, with a 300-megalitre irrigation license, recently sold at auction for $2.7 million.

It was valued at $24,896/ha last year, but realised just $19,150/ha at the auction.

In April, Singaporebased Duxton Asset Management spent $16.25m for Valad Property Group’s seven dairy farms in Victoria. The price was more than $5m less than expected.

Price corrections of up to 30% are apparent in

Mike Norton

other states but the market still remains largely stagnant, according to agents.

In South Australia’s South East, rumours of foreign interest, particularly from Chinese investors, persist.

A rumoured target is the 315ha Kurleah Dairy, milking 630 cows at Allendale East, which is on the market for $10.92m and includes 180ha of irrigation and a 60 stand rotary dairy with computerised neck tags.

However, in WA foreign investment is more than just Chinese whispers.

Chinese dairy giant Bright Food Group recently sealed a deal for 75% ownership of Manassen Foods, owner of the Margaret River Dairy and Lemnos cheese brands.

WA Farmers president Mike Norton says negotiations are continuing on the sale of a farm in Narrikup, while speculation is growing about Chinese investment in large-scale dairy farms in the Scott River region.

totalling 485 hectares.

The $10 million acquisition added to the previous year’s $16 million purchase of 640ha of dairy land, giving the company the potential to milk around 3000 cows.

Australia’s largest dairy farmer, Tasmania-based 185-year-old Van Diemen’s Land Company, is also looking to expand on its current portfolio, which includes 23 farms encompassing 19,000 hectares in Tasmania’s northwest

corner, including the historic Woolnorth properties. Van Diemen’s Land Company is owned by New Zealand’s Tasman Farms Ltd. Australian Farm Institute executive director Mick Keogh sums up the investment conundrum.

“Unfortunately, the need to demonstrate short-term performance to keep attracting superannuation funds generates a very short-term focus by Australian fund managers,

despite the fact that superannuation is a very longterm investment for most people in Australia.

“As a consequence, the main source of capital for Australian agriculture is debt finance, which has doubled from around $30 billion in 2002 to more than $65 billion in 2008.

“In the absence of overseas equity investment, this debt level will have to grow substantially over the coming years, if the sector is to continue to

grow.

“It is worth considering whether this would be a desirable outcome for the sector.”

While Kay believes there is a good future for the family farmer, she has also advocated for foreign investment in dairy, particularly by China. However, she says the country’s interest has not translated to sales.

“In terms of foreign investors, we are not seeing as many New Zea-

landers investing here at the moment due to the high Australian dollar.

“The Chinese have shown interest, but have not made any significant purchases as yet.

“Foreign investment would benefit farmers who are looking to retire from the industry, as some are still waiting to sell properties after a couple of years.

“It would also provide confidence to the manufacturing sector to have solid investment.”

Dairy News AUSTRALIA November 2011

8 // news

New formula requires more Murray Darling Basin water State Governments and irrigators

Emotions ran high when the original MDBA guide was released last year.

have accused the Federal Government of moving the goal posts on the Draft Murray Darling Basin Plan less than a fortnight before release.

A draft of the document is due to be published in the coming weeks.

However, a revision of

allocation values has upset irrigators, who say they will now face further cuts to their water entitlements under the Draft Basin Plan.

Speculation is rife that the Murray Darling Basin Authority will recommend the removal of 2800 gigalitres of water from irrigators to return to the environment. This has not

been confirmed.

However, the NSW Irrigators Council has commented on revelations that the Commonwealth Department in charge has used different conversion factors, which will increase the number of gigalitres removed from irrigators.

Council CEO Andrew Gregson said water is man-

aged on averages “but averages rarely occur”.

“In order to determine how much water an entitlement will yield, we use a conversion factor based on long term reliability.

“If a 100 megalitre entitlement has a reliability of 75%, you’d expect 75 megalitres to be delivered per year when averaged.

“What we’ve now found out is that the conversion factors used by the Commonwealth Department are lower than those used by everybody else.

“The effect of this is that the Commonwealth will aim to buy even more entitlement to reach the figures the Murray Darling Basin Authority will release in their Draft Plan.

“The finish line has moved – quite considerably in many valleys.”

Gregson said the new conversion factors applied by the Commonwealth don’t only affect how much they want to purchase, but materially affects what they already claim to have.

The MDBA reports that the Government has obtained through current and past programs around 959 gigalitres.

In the spreadsheet that detailed that number using traditional conversion factors, they noted they were “subject to revision.”

“They’ve been revised alright – considerably downward. The effect is that they now think their portfolio of water will deliver less than before.

“That is, the start line has moved – and quite considerably in many valleys.

“With a move in both the start and finish lines, the gap is now significantly wider than 2800 gigalitres.

We’re likely back above the Guide figures (of 30004000 megalitres).

“Just like the Guide, this was done entirely without consultation.

“Like the Guide, it will not be received well by the tens of thousands whose jobs rely on this, by the family farms that risk closure or by the fresh food buyer whose weekly shopping bill goes up.”

UDP buys SA cheese factories Victorian processor United Dairy Power

has bought the Murray Bridge and Jervois cheese factories in South Australia, formerly owned by Lion.

UDP will assume control from Lion in November and has plans to increase capacity at the Jervois site to six days a week.

The plants were formerly part of the Dairy Farmers and National Foods businesses respectively, now merged into the Lion dairy division of the Japanese-owned processor.

The plants have formally been on the market since Lion completed a

review of the future of its cheese business earlier this year.

As part of the sale of the two sites, UDP has acquired the Caboolture brand and will also contract pack a number of Lion products at the sites, including Le Rice, Pura Sour Cream and Mozzarella cheese.

It is UDP’s first foray into making cheese. It has traditionally processed milk on a wholesale basis.

SA Dairyfarmers’ Association president David Basham said the sale was a win for dairy farmers as it would increase competition in the South Australia dairy market.

Dairy NewS AUSTRALIA november 2011

news // 9

Activists target bobby calves Animal rights lobby group Animals Australia has called on its group of supporters to fund an advertising campaign criticising the dairy industry.

The focus will be the length of time bobby calves are off feed before slaughter.

The highly emotive ad says the dairy industry considers calves a “waste product”, they are trucked to slaughter at five days of age, spend their final hours at the abattoir “cold and hungry” and may be denied food for up to 30 hours before they are killed.

The ad includes the line: The questionable ethics behind milk production has been a longheld secret of the dairy industry.

The request for funding came days after Federal and state agriculture ministers met at the Primary Industries Ministerial Council last month.

They failed to reach a conclusion on how long bobby calves can go without food before slaughter.

Victorian Agriculture Minister Peter Walsh said ensuring calves were fed 24 hours before slaughter represented challenges for people transporting calves from South Australia and NSW to Victoria for processing.

Animals Australia first publicly campaigned against the time between last feed and slaughter

in February.

Dairy Australia responded by highlighting a fact sheet on bobby calves on their website.

Animals Australian campaign manager Lyn White said a public consultation into the length of time bobby calves can legally be denied milk was also swamped with over 6000 public submissions calling for better treatment of calves.

“Yet when agriculture ministers met last week to discuss the fate of bobby calves, the only options they considered were inhumane ones,” she told her followers.

“With industry and government both failing to protect these vulnerable animals, their fate now rests in the hands of informed shoppers.

“If we can fund this new ad in major newspapers we can alert hundreds of thousands of consumers to the truth.”

The RSPCA has also called for the 30 hour standard to be scrapped, saying it was too long for the calves to go without food and was “cruel”.

“800,000 dairy calves are trucked to slaughter every year and it is inexcusable that we still don’t have a legally enforceable standard to help ensure their welfare,” RSPCA scientific officer Melina Tensen said.

Farmers asked for 10% levy increase Dairy farmers have been

given the option of increasing the dairy levy deducted from each litre of milk by 10% or 15% or removing it altogether.

Australian Dairy Farmers (ADF) has released Dairy Poll 2012 and ADF President Chris Griffin said the 10% increase would achieve the results needed by the industry.

All dairy farmers will receive their voting entitlements in December, followed by a voting pack containing their ballot paper in February 2012.

Ballot papers must be returned by March 16, 2012.

Levy deductions are made from farmers’ milk cheques each month.

They contribute about $30.6 million each year. Further annual government funding of $17m provides the budget for Dairy Australia that is invested for the benefit of all levy payers.

Griffin said it was essential to continue this scale of invest-

ment to provide industry-good activity that will grow and provide future guaranteed success for the dairy industry.

The Federal Government requires Dairy Australia to go to its farmer shareholders up to every five years seeking their opinion on the levy rate.

Chris Griffin

The three options were decided upon by a Dairy Poll Advisory Committee chaired by Griffin.

Griffin said the members of the 20-strong committee were drawn from all industry sectors

and a wide cross section of dairy farmers representing a range of views.

“The committee provided a thorough review of industry needs and the activities of the levy spend by Dairy Australia,” he said.

“Few other industry decisions have been subject to such scrutiny.

“As chairman of the group, I believe that the 10% increase is necessary. I believe my fellow dairy farmers will also see the need to maintain services at their current level.”

Griffin said a 10% lift over five years is well below CPI and will be the first levy increase since 1997.

Dairy Australia’s Managing Director Ian Halliday said that he and the board fully supported the 10% increase although there will be a need to draw down reserves to support the activities of Dairy Australia over the next five years.

Dairy News AUSTRALIA November 2011

10 // news

Coles sources more WA milk for house brands Coles will source an additional Peter Evans said the announcement 7.5 million litres of milk from three was a positive step by Coles to repair Western Australian processors – a rise its relationship with Western Austraof 33% - for a range of its house brand lian dairy farmers.

“These new contracts will hopefully products.

The three-year contracts will give farmers a reasonable price for their see Brownes, Mundella Foods and product,” Evans said.

“Coles’ $1 per litre milk strategy Harvey Fresh supply milk from January for Coles brand cream, sour cream, is still a major issue, however if these new contracts yoghurt and cusresult in additard sold in WA. It will be a positive product Brownes result if these contacts tional sales rather than will use an estia shift away from mated four result in additional branded product million litres product sales rather to private label, annually to pro- than a shift away from then it will be a duce cream and branded product to positive result yoghurt, Munfor farmers. della 1.8m litres private label.

“Since Coles’ to produce sour cream and Harvey Fresh 1.5m litres to decision earlier in the year to reduce the price of their private label milk to produce custard.

Coles had already awarded its WA $1 per litre, effectively removing $25.2 private label milk contract to Harvey million from the Western Australian dairy supply chain, producers have Fresh in July.

The Western Australian Farmers been under pressure.

“While Western Australian farmers Federation (WAFarmers) cautiously have not accepted Coles’ claims that welcomed the announcement.

WAFarmers Dairy Section President they are absorbing the costs of their

WAFarmers Dairy Section President Peter Evans has welcomed the Coles announcement with caution.

heavy milk discounting, this announcement may help to lift Coles’ standing amongst farmers.”

Evans said WAFarmers would continue to monitor the price of Coles’

private label dairy products to ensure money remains in the Western Australian dairy supply chain.

Mundella Foods CEO David Day said the decision was a positive step

for his company and Coles.

“As fierce supporters of local industry ourselves, the flow on benefits will extend well beyond increased farmgate revenue and employment,” Day said.

Farmer’s future bright after recent Challenge Liz Cotton

When Western Aus-

tralian co-operative Challenge Dairy went into voluntary administration on October 29 last year, it owed more than $4 million

to its 47 dairy farmer suppliers for unpaid milk.

Challenge’s assets were sold to Harvey Fresh in February this year but many farmers are still waiting to see their money.

Witchcliffe farmer, Miles Mottershead, is one

farmer left out of pocket from Challenge’s collapse.

Mottershead is owed more than $400,000 but says despite the hardship endured, the company’s demise is “one of the best things that could have happened to the dairy industry

in the West”.

“Last year we averaged 26.3 cents/litre, which was 17 cents behind the other companies and the year before we were 10 cents behind.

“This year, with about a 16 cent a litre price rise,

we will increase our earnings by around $650,000 milking roughly four million litres.”

At the time of the collapse however, Mottershead says the family “didn’t know how we’d get through”.

“Apart from the Challenge situation, we had come off the back of 2009’s terrible season where it was far too wet and then just stopped raining, coupled with fertiliser costs soaring to $1000 a tonne and grain at $350t and in 2010, Challenge was still trying to recover and was withholding 5c/l throughout summer – which never came through.”

The family received no payment in September, October and November last year, with their first milk cheque finally arriving at the start of this year.

“We got through and by the end of this year, we should come out square because every decision we’ve made on-farm this year has been the right one.”

This year, dairy farmers in the South West are liter-

ally reaping the rewards of one of the best seasons on record.

“This is a bumper season for silage. We were hoping for around 4000 rolls but we should bring in over 6500. It’s a huge boost to our confidence, especially from where we were at the start of the year when we sat down to make decisions, hoping like anything we could get a decent season.”

Mottershead is a second generation dairy farmer in WA, taking over from his father in the 1980s. Along with his wife and children, the family milk 520 Holsteins, dropping back from 620 “but making more money”.

“One thing we learnt during the hardships of the Challenge collapse was how to produce more milk from less.

“When you are forced to make decisions to survive, you make decisions that can benefit you for the rest of your life.”

Mottershead also says he “learnt a thing or two about cooperatives”.

“Another thing we learnt was that when

the chips are down, it’s every man for himself – we learnt that our biggest competitor was the farmer down the road.”

Despite the hardships endured from the Challenge collapse, Mottershead says he is optimistic about the future of dairy in WA. Late last year, WA’s largest dairy business, Brownes, came back to Australian hands after New Zealand dairy giant Fonterra sold the milk and fruit juice business to DairyWest, a consortium headed by Sydney-based Archer Capital.

“Archers look to be building Brownes back up again, which is a good sign and with the rationalisation, milk is now being processed through four sites as opposed to the former six sites.”

“There are 167 dairy farmers in the South West and there is really not enough room for three processors, let alone four, but things are looking up - it’s just unfortunate that we had to go through all the pain to get to where we are now.”

Dairy News AUSTRALIA November 2011

12 // news

Taking steps to relieve loneliness later helped to ease the burden.

Jack spent a couple of periods in psychiatric care but got through thanks to The Roy Orbison song Only the Lonely support from his family and friends.

“When I was first in hospital, to see strikes a particular chord with southwest Victorian dairy farmer Jack Kenna. tears flowing down dad’s face was the Jack suffers from bipolar disorder best medicine for me. People rallied and depression but has managed to behind me and I realised they cared,” balance his illness and continue to he said.

During his down times Jack also took run his dairy farm at The Sisters, near inspiration from his favourite singer Terang.

Jack agreed to speak about his who had endured the loss of his wife and health issues as part of a ‘More Milk, children in separate accidents.

“You come to realise Less Stress’ field day organised by Farmgate “The worst thing that you’ve got to cope with the good and the Stockfeeds at Ecklin you can do is bad in life. Adversity is last month. bottle it up.” a great teacher.”

The Roy Orbison Jack is now marfan said he could assoried with two children ciate with the lyrics of and enjoying his life as some of The Big O’s most famous songs, including Running a dairy farmer. “You have to put life in perspective, find time to go home and Scared and Only the Lonely.

One of 10 children from a farming have a kick of the football with my son,” family, Jack had the first inklings of his he said.

“The worst thing you can do is bottle illness when he started school but it manifested again in 1989 when all his it up. Farming and life is not all beer and siblings were married and he was left skittles but don’t let the stress build up.”

South West Healthcare clinical psyalone on the family farm.

“I was lonely and felt like the wheels chologist Kate Schlicht told the field day that dairy farmers were among the were coming off for me,” he said.

The responsibility of working on the hardest working people but needed to farm seven days per week was adding get balance into their lives.

“Stress is different for everyone and to Jack’s stress, although relief milkers Rick Bayne

Support from family and friends helped south-west Victorian dairy farmer Jack Kenna through tough periods of his life.

farmers need to be aware of what stress means to them, what triggers it and how to manage it,” Schlicht said.

“You can’t walk away from farming but you need to get a balance of doing things out of work and you need to find time to relax,” she said.

“Farmers might say they don’t have

time but you need to look after yourself to look after your farm.”

Schlicht said farmers needed to have an outlet and take breaks away from the farm.

“If you are having problems you should talk to someone and be aware of the services that are available to help,”

she said.

Farmgate Stockfeeds director Mathew Logan said the field day was designed to provide farmers with advice on animal health and production, as well as on how to identify and deal with signs of stress, which may lead to more serious consequences if ignored.

Dairy NewS AUSTRALIA november 2011

news // 13

IDW unveils fresh program International Dairy Week’s pro-

gram of events has been expanded to include a machinery and trade show focused on commercial dairy needs and a series of workshops focused on the needs of farmers.

IDW will be held for the 21st time on January 16-19 in Tatura.

The new events complement the traditional format of trade exhibits, the six breed shows showcasing registered Australian cattle, farm tours, the National Herd Improvement dinner and cattle sales.

The machinery and trade show will be held on January 18-19 and event manager Robyn Barber said more than 40 companies will take part.

The one-hour information workshops will be held on January 17-19 and cover fertility, genomics, nutrition and pastures.

Two leading dairy farmers from the US will speak about their dairy farms and the challenges they face.

Dairy Australia Managing Director Ian Halliday said the new initiatives would provide many benefits to dairy farmers.

“The opportunity to access and learn valuable information on breeding, genetics, fertility, herd improvement and general farm improvement, see first-hand machinery and technological advancements and improvements and view high quality dairy cattle is of great value to dairy farmers,” Halliday said.

“I would encourage anyone with an interest in the Australian dairy industry to mark the event on their calendar for January.”

Semex Australia manager Jim Conroy said the new look format

Unearthing hidden gems on-farm Australia’s biggest dairy livestock

competition, involving roughly 2500 cows and 500 farms, is in gear.

The Semex/Holstein Australia On-Farm Competition is in its 11th year and the nationwide spectacle has a number of unique points of difference.

All the cows are judged (for conformation) onfarm by a judge in a collective logistical marathon involving thousands of kilometres and an army of people.

Cows that may not have enjoyed a profile because of the work and time needed to be able to show cattle have the chance to shine in this format, where there is no additional work or preparation involved for the farmer.

Semex initiated the competition model to acknowledge quality, functional dairy cows.

Semex general manager Jim Conroy described victory in the event as the second most recognised

award dairy cows can win outside a first place at International Dairy Week.

There are 29 Holstein Australia sub-branches currently running a competition, with entries peaking at more than 250 head in some sub-branches.

First and second placegetters in each class then move forward to the state finals this month where they will be re-assessed by a fresh over-judge to find the state champions.

“There are hundreds of cows and people involved now, including a New Zealand event that is also functioning very well,” Conroy said.

“It gives our non-showing customers the opportunity to compete and to be recognised.”

This year’s Semex-Jersey Australia Great Southern Challenge is also underway.

The competition includes about 1400 cows from 11 different subbranches across four states.

would give farmers a similar experience to that provided at World Dairy Expo.

“It’s all about making sure that they have the latest products and services that the dairy industry has to offer. That’s what people want to see at IDW,” Conroy said.

Entry to all events is free. Further information about the event can be found at www.internationaldairyweek.com.au

Ringside at this year's IDW.

Enda Crowley with son Shane

Irish farmers ready to lift production PETER BURKE

IRISH DAIRY farmers have been held in a production ‘vice’ by the EU. For 30 years the amount of milk a farmer can produce has been capped by the EU but this is about to change.

During a recent visit to Ireland this reporter stayed on two quite different dairy farms.

Tom Garvey, in his early 60s, has farmed all his life. He farms near a small town called Ventry on the Dingle Peninsular in the southwest, arguably one of the most beautiful parts of Ireland. Here the coastline is rugged, the Atlantic Ocean swirling and breaking on steep sea cliffs.

Garvey’s fields are divided mainly by dry stone walls characteristic of the west of Ireland. The nearest town of any significance is Tralee, famous for the annual Rose of Tralee Festival and a song of that title.

Garvey runs 50 cows and some sheep on his 40ha overlooking Dingle Bay. He has some flat land on which he runs his cows; his sheep graze high up on Eagle Mountain at the back of his farm. His sixaside herringbone dairy shed is made of stone, as are his barns. Garvey is your typical Irish dairy farmer and by Australia standards runs a basic operation.

His wife Joan runs a successful bed-and-breakfast to supplement their income. B&B’s are popular in Ireland, especially here on the ‘tourist trail’.

The lifting of the cap on dairying won’t mean

much to Garvey and he’s not looking to take advantage of the change. By 2015 he’ll retire from farming, eligible for the pension.

“My son is an engineer and there is no way he’s going to come back and manage this farm. I’ll be happy to retire and not have the daily routine of milking cows.”

But though an Australian used to large-scale dairy farms may see Garvey’s operation as small, there is nothing primitive about the way he farms.

The dairy shed is clean and he has a good animal health program to mitigate against mastitis. His pastures look good and are high producing.

Contrast the Garvey situation with that of Enda Crowley on the shores of Bantry Bay in nearby County Cork. Aged mid30s, he has taken over running the farm from his father Johnny.

Johnny’s wife Dympna runs a B&B in the original farm house – stunning views and visitors thronging to the sights of this beautiful region.

The towns of Bantry and nearby Glengarriff are tourist meccas.

Crowley, his wife Joan and three young children, represent the new breed of Irish dairy farmers: people with a mission who can’t wait to see the milk cap lifted and take advantage of increasing production.

His dairy shed is similar in size and design to Garvey’s and it’s hard to say which has the best view.

Crowley has 40ha but leases a further 12ha where he runs 45 cows plus replacements, feeds calves

and grows silage. His cows are an interesting breed – mainly Jersey with some Norwegian Red and Holstein. The Norwegian Red is common in the genetics used in Irish herds.

For Crowley 2015 can’t come soon enough. “I will increase my cow numbers to at least 60 and possibly 70 so I can increase production and make this farm more profitable.”

Meanwhile he’s busy building his farming knowledge at discussion groups organised by Teagasc: an Irish government-sponsored research and advisory service (similar to Dairy Australia) and he gets one-on-one advice from a Teagasc farm advisor.

“The advice from Teagasc is invaluable in helping me look at ways of improving production. It’s about looking at fertiliser use, getting soil samples and making sure the land is grazed so that production is maximized.”

While 45 cows – or even 70 – may not seem many, they generate a fair income for the family. The milk is taken to a nearby plant for processing into cheese and whole milk powder.

And some goes to make Ireland’s popular Bailey’s Irish Cream.

With Ireland now back to the reality of investing in agriculture, young farmers such as Crowley are key to the success of the industry. He and others like him will play a huge role in reviving the Celtic tiger that’s now on life support. As in New Zealand, the Irish dairy industry is seen as the economic saviour.

Dairy NewS AUSTRALIA november 2011

world: news // 15

Dutch co-op seeks grass-fed milk DUTCH DAIRY co-op FrieslandCampina will spend $79 million annually to encourage outdoor grazing for its dairy herds.

Under the new scheme, to run from 2012-14, co-op farmers using outdoor grazing will qualify for a supplementary pasture milk payout.

FrieslandCampina says it plans to market more dairy products based on Dutch milk from pasturegrazed cows. The initiative will form part of the dairy company’s sustainability agenda.

Under the plan, dairy farmers who graze their herds outdoors for at least six hours a day, 120 days a year, will qualify for a supplement of 87c/100kg of milk.

Currently, member dairy farmers who pasture-graze their herds receive 8c/100kg of milk.

For a dairy farm producing 600,000kg of milk a year, this will increase the annual supplement for milk from pasture-fed cows from $525 to $5250.

The increased supplement is chiefly intended to compensate farmers for the time and extra work they have to invest in grazing their cows outdoors, it says.

FrieslandCampina chief executive Cees ’t Hart says the scheme will form part of its broad sustainability agenda.

“It is our response to the considerable demand among Dutch consumers to preserve our typical Dutch landscape with cows grazing on green pastures. Supermarkets are also showing a growing interest in maintaining

outdoor grazing. It’s now up to us, our members, our customers and ultimately the consumer, to turn this initiative into a success.”

In addition to outdoor grazing, the other themes in FrieslandCampina’s programme for sustainable dairy farming are: energy and climate, reuse of minerals, maintaining nature and biodiversity, animal health and welfare. The sustainability programme for the dairy sector forms part of FrieslandCampina’s route2020 strategy.

The co-op is also expanding its range of Dutch dairy products with a pasture milk guarantee.

This will enable customers and consumers to make a well-informed choice which fits in well with their demand for more sustainably produced food. FrieslandCampina has been marketing pasture-fed milk since 2007.

This includes daily fresh dairy products under the Campina and Campina Boerenland (organic dairy) labels. However, the co-op will be charging more for a pasture-fed milk guarantee.

“The increase in the outdoor grazing supplement and the extra costs involved in the separate collection and processing of pasture-fed milk means FrieslandCampina will be charging a higher price for products with a pasture-fed milk guarantee,” it says.

“By choosing these products, consumers will help to keep dairy herds in the Dutch landscape, a classic image of Holland which is highly valued by

IN BRIEF UK milk price war THE BIGGEST UK supermarket, Tesco, has launched a price campaign which puts fresh milk on the shelf for the equivalent of $1.15/litre, only a whisker more than Coles’ controversial $A1/litre loss leader in Australia.

The move is part of Tesco’s ‘Big Price Drop’ on 3000 essential items such as milk, pasta, fresh fruit and vegetables. It simplifies promotions with fewer multi-buys, particularly in fresh foods, as these encourage waste.

the public.”

Research by the market research agency TNS NIPO has found 75% of Dutch consumers feel outdoor grazing is a vital part of sustainable dairy

farming.

When asked why they thought cows should be fed outdoors during the pasture-grazing season, 93% responded that it was healthier for them.

FrieslandCampina says there is demand for more grass-fed milk products

Dairy News AUSTRALIA November 2011

16 // OPINION Ruminating

EDITORIAL

Beware snake oil salesmen in the new carbon world

milking it...

Warning – the following will enrage you It’s hard to get a response from Agriculture Minister Joe Ludwig - literally.

Requests for interviews are rejected and responses to emailed questions usually avoid the question.

So we took our chance at the Victorian Rural Press Club to ask Ludwig whether he thought $1/litre for milk hurts the industry.

“Milk is a commodity that I couldn’t imagine not being on anybody’s tables as a fresh, wholesome product.

Consumers love it, I like it and, of course, what we’ve got to continue to do is work with Dairy Australia and work with the producers,” Ludwig said.

We weren’t the only one in the room stunned by this response.

Another reporter jumped up and asked the same question.

“What I think is that it is important for consumers to enjoy milk. It’s important that we get milk on our tables.

These are decisions for retailers to make around the pricing of their prod-

ucts and how they grow their markets, but I think it’s important to also look at the broader issue to ensure that we’ve got, and continue to have, a sustainable farm industry,” he said.

He may well have just said “I’m not answering that question”. It would have saved time.

Late scratching We were initially surprised back in September when the Senate Economics Committee pushed back the release date of its inquiry into the impact of supermarket price decisions on the dairy industry to November 1.

Even then we realised that was the day of the Melbourne Cup – the race that stops a nation. Our cynicism quickly kicked in – politicians usually release information they don’t want reported in the papers on days like this when most people are distracted.

So we were even more surprised on November 1 to see the release date was pushed back two days to the 3rd, when Cup euphoria had diminished.

Does the committee actually want the public to take notice?

Farmers only hope the report is worth the wait and convinces the Government of what they’ve been saying all year.

Walking out the door New market research reveals cheese is the most stolen food in the world.

UK research from 250,000 stores in 43 countries has found 4% of all cheese is stolen each year. Much of the cheese stolen will be resold into other markets or to restaurants.

Australian dairy farmers know all about being ripped off. Many feel they have been cheated out of decent farmgate prices for years.

Best of cyberspace Some great one-liners from one of our favourite tweeters, @GrassCow. “Calves take well to bottle feeding because one nipple is as good as an udder.”

“The butcher backed up into the meat grinder and got a little behind in his work.”

“Lightning sometimes shocks people because it just doesn’t know how to conduct itself.”

NZ farmers pick up the pace No, this is not the most recent machinery New Zealand farmers can get their hands on – it’s a scene from the recent ploughing qualifying contest held across the ditch last month.

Winners from the day will head to the annual New Zealand National Ploughing Championships.

The event remains very popular but makes us tired just looking at it.

Dairy News Australia is published by RNG Publishing Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of RNG Publishing Limited.

The debate surrounding the newly legislated carbon tax has been highly politicised and highly divisive.

With different agendas come highly charged claims and counter claims – it will either be the end of the world as we know it, or the fuse to become even more efficient.

The fact is, the carbon tax will be applied to dairy processors and energy suppliers from July 1, meaning dairy farmers will receive higher power bills and, according to Murray Goulburn, reduced farm gate prices as processors offset their increased costs.

The best thing farmers can do is look for ways to reduce their power bills and we have several examples this issue on how to do it.

Farmers don’t need to rush out and buy the latest in solar power generators - we’re guessing they will be inundated with proposals to do so – a dairy audit will show simple and cost-effective ways to reduce power and save money.

The best thing farmers can do is concentrate on what they do best – produce high quality milk – and be wary of snake oil salesmen that will try and bewitch with how to make money on the Carbon Farming Initiative (CFI) and other “sure fire” proposals.

The Government introduced the CFI as a way for farmers to offset their increased costs by generating carbon credits to be sold in a global carbon trading scheme.

The CFI is a donkey, especially for dairy farmers.

Those who have land to plant to forestry can gain credits under the scheme but the reality does not look like meeting the Government’s best intentions.

The cost of locking up farmland and planting trees will not be adequately rewarded.

So be wary of those who try and convince you otherwise. Remember, if it sounds too good to be true, it probably is.

Farmers at a recent seminar were told to “trust no-one”.

“There will be a lot of sharks out there trying to make money out of the CFI.” The advice was, if farmers want to explore their options under the CFI, to work with someone they know and trust.

Carbon legislation is not going away. The Opposition said they would repeal it if they win office but this would be unpopular with business which wants certainty.

Many are still concerned about what carbon legislation means for them and nobody knows exactly. It will be at least 18 months before the impact is fully known.

Australian farmers are the most efficient in the world – they have had to be to compete against subsidised competitors. Under the carbon tax, they will have to become even more efficient to keep pace.

There is help available, but make sure it’s from people you can trust.

Advertising Hyde Media Pty Ltd Suite 1, 11 Unsworth Road, Ringwood North, VIC 3134 Phone 03.9870 4161 Fax 03.9870 4163

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

Head Office op Floor, 29 Northcroft Street, T Auckland 0622, New Zealand

Advertising Manager Trish Millington trish@hydemedia.com.au

Phone +64.9.307 0399 Fax +64.9.307 0122

03 9870 4161

Managing Editor Adam Fricker

Agency sales Max Hyde max@hydemedia.com.au

03.9870 4161 or 0408.558 938

Publisher Brian Hight

Production Lewis Hurst Dave Ferguson Becky Williams Published by RNG Publishing Ltd Printed by PMP Print

www.dairynewsaustralia.com.au

Postal address PO Box 3855, Shortland Street, Auckland 1140, New Zealand

Dairy NewS AUSTRALIA november 2011

opinion // 17

Dairying in a low-carbon world mark wootten

Do farmers want to

be part of the solution or continue to be seen as part of the problem with our carbon footprint? What are the risks of being left behind?

These are the sorts of questions we should be asking ourselves as, after an almost endless game of political football, Australia finally puts a price on pollution. We need the whole carbon price discussion to be seen as a risk management exercise. This is not a moral question. As farmers we need to recognise that it is in our self-interest to move to a low carbon world.

Now that there is a scheme to cut pollution in heavy industries, the portion of Australia’s emissions coming from agriculture will grow and pressure on farmers to reduce their emissions will mount.

Compared to other industries, farmers have a period of grace, free of any direct liability for their emissions. At the same time, the Carbon Farming Initiative (CFI) will give producers the choice to take part in the emerging carbon market. Linked to a carbon price, the CFI will potentially see hundreds of companies buying climate change solutions from agriculture.

Don’t expect farmers to leap at the chance to be involved. It will take time to develop new technologies, management practices and confidence in handling an entirely new commodity – carbon.

Practically, many farmers won’t be interested until the carbon price becomes truly competitive. Realistic estimates suggest farming and forestry could offset a modest 3% of Australia’s total emissions by 2020. This represents around 10% of the sector’s own emissions – a pollution reduction of up to 15 million tonnes in 2020.

Those millions of

tonnes represent new investment that will help farmers, including dairy farmers, manage future risks and ensure they are recognised for doing their fair share.

And those who make a serious effort to explore the opportunities are more likely to be in a position of strength as the world shifts into low-carbon gear.

And shifting it is.

Europe, Japan, Korea, New Zealand, some American states and China all have targets for cutting or, at least, limiting pollution.

On the Government’s conditions China’s target would be equivalent to a 25% cut in Australia’s 2000 emissions by 2020.

Around the world, the low carbon revolution is underway. Unless farmers are a part of it, we will be left behind. Carbon sense will make economic sense.

Australian agriculture boasts a strong tradition of ingenuity. Farmers’ capacity to innovate and adopt new technologies should not be underestimated.

A failure to put a price on carbon pollution would hold Australian agriculture back when we urgently need to unlock investment in cleaner energy, production and fuels As a matter of priority, pollution pricing revenue should be used to help farmers, suppliers and processors adjust; to invest in research, development and extension. Thanks to community and industry lobbying, the federal government has committed revenue generated by the carbon price scheme for this purpose.

Dairy will face extra annual costs, especially given its heavy reliance on fossil-fuelled electricity.

Dairy is obviously a tradeexposed sector that has had to grapple with variable prices and is still on the mend after the country’s hottest drought on record, not to mention the downpour and pest plagues that followed.

But the history of dairying in Australia is one of long-term growth, and international demand is surging. According to Dairy Australia, exports in the first half of 2011 were

Dairy is obviously a trade-exposed sector that has had to grapple with variable prices and is still on the mend after the country’s hottest drought on record, not to mention the downpour and pest plagues that followed.

up nearly one-fifth from the previous year, despite a weakened global economy.

Australian dairy farmers have such a strong comparative advantage that the industry’s future is hardly at risk, least of all from a carbon price. In fact, for produc-

ers and consumers alike, any impact of the scheme would almost certainly be dwarfed by the costs of more hostile weather linked to changes in our climate.

Furthermore, even with a price on pollution, dairy farm cash incomes will

continue to grow strongly into the long term, according to economic modelling by the Australian Farm Institute.

A key element of Australian dairy’s strong competitiveness is its world-class quality management, from paddock

to plate. The task now, for all farmers, is to make sure our competitiveness is shored up by high-quality environmental performance.

I agree with Fonterra, carbon pricing is a chance to lift dairy producers’ and processors’ energy effi-

ciency, cut unnecessary costs and maintain competitiveness.

This isn’t to gild the lily—a carbon price does pose a challenge for some producers, but there are far bigger risks to the whole industry: lingering uncertainty and political flip-flopping that would hold up investment, not to mention the risk that our natural advantage will be eroded if climate change is left unchecked.

It’s critical that farmers are given the option of tapping into the carbon market, given a leg up, and given the opportunity to show they can come up with the tools and techniques to cut emissions without cutting productivity.

Mark Wootton is Principal and Manager of Jigsaw Farms and Chair of The Climate Institute.

We welcome your response.

Send letters to editor@ dairynewsaustralia.com.au

Dairy News AUSTRALIA November 2011

18 // agribusiness

Fonterra exports record volumes Fonterra Australia has announced record year on year growth in export volumes of nutritional milk powder products from its Victoria manufacturing sites.

Since 2009, Fonterra has shipped more than 100,000 tonnes of nutritional powder products from Victoria manufacturing sites, achieving 37% growth in this export category over that time.

Fonterra Ingredients Australia Managing Director Simon Bromell said the results had solidified the company’s position as the dairy exporter of choice to consumers in Asia.

“This is exceptional growth and

we’re pleased with these results,” Bro- that our milk powders deliver to consumers in the Middle East, South East mell said.

“It’s fantastic to see the strength Asia and China.

“The nutritional of Fonterra’s global powder category network creating Fonterra has is very important value from Austra- shipped more than our business lian milk and con100,000t of powder to and during 2010/11 tributing to success played a key role in for our Australian from Victoria manufacturing enabling us to deliver farmers.” our second highest Bromell said the sites since 2009. closing price ever at volume increase reflects growing demand for high qual- the season’s close.

“The growth we have achieved is a ity dairy nutrition in export markets.

“We are experiencing very strong direct credit to our suppliers who work demand for the nutritional benefits extremely hard to deliver the high qual-

ity milk we need to make these products.”

Bromell said the strength of Fonterra’s sales network and international customer partnerships was a key contributor to the export growth the Australian operation has achieved over recent years.

“Fonterra is a leading global dairy nutrition business and we expect the strong demand for our nutritional powders to continue through the 2011/12 season.

“We look forward to continuing to build on the success achieved to date in this important product category.”

Simon Bromell

Longwarry named best Vic exporter Gippsland processor Longwarry Food Park has been named 2011 Victorian Exporter of the Year at the recent Governor of Victoria Awards.

It also won the Agribusiness Award and was commended in the Large Advanced Manufacturer Award category, which highlighted companies that had made their mark in the global economy.

Longwarry produces UHT milk for export and milk powders and fresh milk for the domestic market.

Managing Director Rakesh Aggarwal said the company’s exports almost doubled in 2010-11 from the previous year.

“Winning these awards means a lot to us, especially because we have done so well during a very difficult year for exporters,” Aggarwal said.

“We have had to endure commodity price fluctuations, a strong Australian dollar and a lack of confidence in the purchasing behaviour of our customers because of the uncertain times.

“In spite of that, what we have done has been a great achievement for all concerned.”

Aggarwal said the company’s success was underpinned by the use of the latest available technology when restoring their processing plant, formerly owned

by Bonlac, in 2001.

“This boosted production by 40% in 2010-11.

“We have improved customer service, marketing strategies, quality of staff and risk management but the key to our export success has been flexibility in shipping, customised products and small business agility,” Aggarwal said.

Blackwood commended Longwarry Food Park for its efforts as a deserving winner of the award.

Longwarry could now be further recognised at the 49th Australian Export Awards in Brisbane on December 8.

India farm plan still on – Fonterra FONTERRA IS still looking at the feasibility of large-scale dairy farming in India despite authorities rejecting a joint venture partner’s proposal. It says fertiliser co-op Iffco is still in discussions with regulators.

“Fonterra, Iffco and Global Dairy Health are still working on the feasibility of large-scale dairy farming in India,” the co-op told Dairy News Australia.

However, Iffco’s proposal to set up an integrated dairy project in its Kisan special economic zone in Nellore District, Andhra Pradesh, has been rejected by authorities.

According to Press Trust of India, Iffco will be knocking on the doors of the Ministry of Commerce to reconsider the decision.The news agency says the decision could hamper the $267 million project Iffco’s Kisan SEZ entails an investment of about $1.3billion and will be spread over 1000ha. The SEZ will undertake activities related to producing agricultural and milk products.

According to PTI, authorities rejected the proposal as it “was not in conformity with the SEZ Act and Rules”.

An unnamed official quoted in PTI says Iffco had conveyed to authorities

Milk supply is strong throughout the New Zealand

New Zealand milk wave surprises processor PETER BURKE

THE ‘MILK wave’ sweeping New Zealand comes as something of a surprise to Fonterra, says the director New Zealand operations, Brent Taylor. The result is adjustments to collection and processing.

“Particularly unusual this season is that the increase is consistent across the country. There have been years when we’ve had regions which have had good springs, but typically there have been falls in other parts of the country which have evened this out. What’s been a bit different this year is a consistent improvement from Northland to Southland, with nearly with doubledigit growth,” Taylor said.

Taylor said Fonterra has never before had this level of peak of milk, and this has taken place at time of natural

Particularly unusual this season is that the increase is consistent across the country.

Dairy deal: Global Dairy Health director Paresh Chaudhry (left), former Fonterra chief executive Andrew Ferrier and IFFCO managing director Rakesh Kapur sign the deal on a feasibility study in 2010

that it may not avail of SEZ benefits until the project reaches milk volume of 500,000L/day. Iffco has already sought government permission to import 3000 cows from New Zealand in the first phase.

With the import of cows, the

milk yield is projected to be around 100,000L/day, which is insufficient to set up milk plant. Iffco wants to sell milk and other products like butter and cheese under the Iffco brand. The company plans to sell its dairy products in domestic and foreign markets.

growth in the sector of 1-3%. “What’s characterised this year is a much faster rise to the peak – much higher in percentage terms.”

The peak of the season has just been reached in the North Island; it’ll be three weeks before the peak is reached in Southland, Taylor said.

Fonterra has had to make minor changes to its product mix to enable it to cope with the record milk flow. Milk

is moved between regions occasionally so that all plants are operating at an even capacity to cope with the peaks.

“This may involve shipping milk from Northland to Waikato, or from Waikato to Taranaki, and Canterbury to Southland. We’re using rail to do this and also contract tanker operators. We normally use some contractors, but this year we’re using more than we normally do.”

Causing this peak is a good autumn, benign winter and great spring, plus good cow condition and calving. “Farmers also had a reasonable amount of supplementary feed they didn’t need to use during the winter. This element of additional feeding through the spring has obviously had an effect on production.”

But though it’s all good news now, farmers must be aware of the variability of the New Zealand climate. Taylor notes the possibility of a La Nina weather pattern during summer which could bring drying winds to eastern parts of the country. There’s no guarantee good weather will continue, he said.

“With weather the test comes not when everything is working for you, but when everything’s working against you, and how you handle the curved balls from the climate. The industry is at the mercy of the weather. Last year we had tropical storms, earthquakes, snow and drought. So people say in the news media that the climate is more variable and more extreme.”

The present situation is akin to a surfer riding a wave. “Get on a big one and its happy days. But remember you can always get dumped by the wave and get the reverse.”

Dairy NewS AUSTRALIA november 2011

agribusiness // 19

There’s more to profitability than milk price This column has

spent the past year specifically focused on discussing farm gate milk prices and the influences on this all important variable.

However, milk price is not the sole determinant of a financially sustainable dairy farm business; just one side of an increasingly complex equation.

This month’s chart shows how farm cash income has been significantly more variable than farmgate milk price over the last decade.

Statistical measures actually suggest very little relationship between these two measures.

The two sets of data comes from ABARES annual farm performance surveys and Dairy Australia’s annual farmgate price surveys of the local dairy companies over the last two decades.

The extremely variable seasonal conditions of the last decade have meant that factors other than milk price have been equally important in determining the level of farm cash income and therefore farm profitability.

There have been big shifts in the availability and, therefore, the price of key production inputs such as water, feed, fertiliser, fuel and finance costs.

The impact of the droughts in 2002/03 and 2006/07 can be clearly seen in the chart as farm cash incomes plunged to their lowest levels in the two decades shown as input volumes and costs soared.

Droughts graphically demonstrate this point, as the impact on dairy farming income is threefold.

Firstly, receipts are reduced because milk production is lower due to lower milk yields and often the reduction in milking cows and young stock.

At the same time, the amount of bought-in feed generally increases, because less water and home grown pasture is available, requiring increased supplementary feeding to maintain the core herd.

global impact Peter wilson

This lift in input requirements is then compounded when the increased demand meets lower available supply – again, due to drought conditions - and prices of the purchased inputs rise.

Both the volume requirements and the increased unit price result in the rapid escalation in production costs in these conditions and, when combined with lower production, severely impact incomes – regardless of the milk price received.

The situation during the commodity [price] boom of 2007/08 was quite different.

Although the prices of all commodities rose to very high levels and the input costs of grains, fuel and fertilisers all rose significantly, local seasonal conditions were much better than they had been for years.

Consequently, the need for additional inputs was lower and farm cash incomes did see the beneficial impact of the corresponding boom in milk prices.

Returns to Australian dairy farmers are fully aligned to market forces, and so risk management is the key to dealing with both market and climate volatility to ensure ongoing viability of the farm business.

While the individual farmer’s ability to change their milk price is limited, they will generally have much more control over how they build resilience into their individual farming system and control costs.

Consequently, controlling input costs and risk management skills are increasingly important

to dairy farm profitability and long term financial sustainability.

Access to good market intelligence and significant management skills are required to deal with an increasingly complex farm business environment as the focus becomes one of margin manage-

ment under the multitude of conditions that develop in any given season.

Peter Wilson is Dairy Australia’s national industry analyst and can be contacted at pwilson@dairyaustralia. com.au Definition of ABARES’ farm cash income: The difference between total cash receipts and total cash costs.

Dairy News AUSTRALIA November 2011

20 // management

Recycling water cut costs better drainage into the effluent pond.

So far Alex and Brenda have installed hydrants in the cow yard, which Alex While enjoying their best run of hopes will reduce the amount of time seasons in many years, young Gippsland it takes for yard washing.

The hydrant washers will also be farmers Alex and Brenda Spencer are mindful of a dry past decade as they using effluent from the effluent system position themselves for a future in to wash the yard.

This will save 5000 litres of fresh dairying.

Making better use of water is a goal water each day – that’s 1.8 megalitres as they work through a list of planned over the course of a year. The water dairy upgrades to improve the overall saved will help to reduce the farm’s efficiency of their 200 cow enterprise dependence on the spring-fed dam supplying the property. at Leongatha North.

The property is set up to capture as The property spring fed dam has proved to be reliable, but water savings much rainfall from shed roofs as posin the dairy are being achieved through sible.

The dairy shed has a roof area of opportunities for recycling.

They are confidently looking for- almost 500 sq m and has well mainward to a second good summer after the tained guttering collecting water into wettest winter in the district since 1996. a plastic tank.

It can capture 443,156 Most months have litres per year (annual had above average rainrainfall of 952mm – this fall and at times it has assumes 95 per cent been extremely chalof the rainfall enters lenging to manage wet the tank). This allows paddocks on the fully them to use clean, soft stocked property. rain water for plant While pasture growth and vat washing. River has been slowed by a cool Who: water used in the dairy spring, the soil moisture Alex and Brenda may require filtration reserves hold promise Spencer to remove sediments once the weather warms Where: which can build up in the up.

Leongatha North What: hot water service. River But Alex said they Recycling water in dairy water can also contain based their planning on organic matter that can being able to cope with dry seasons which had been more the bind up chemicals and detergents.

Bore water may be high in mineral norm over the last few years.

After working on the farm for the last salts such as iron oxide and may be hard.

10 years, Alex has now taken over man- Detergents do not perform well in water agement of the property from his par- that contains high levels of minerals or salts which are common in bore water. ents Russell and Joan.

Consequently, higher concentraPlans to upgrade their effluent management system are progressing tions of detergent may be required or with their effluent pond cleaned and specially formulated detergents may be needed. enlarged.

Poor quality bore water can also Extensions have also been made to the cow yard and laneways re-located, corrode metal work in the dairy. This improving cow flow and comfort and underscores the importance of regu-

Plastic drums are used to recycle water for plant wash.

Alex Spencer with his hydrant wash system which he hopes to use for yard washing with recycled effluent.

larly monitoring and testing bore water.

The plate cooler in the Spencer’s dairy shed recycles rainwater and the hot water rinse from the plant wash is recycled and used for the first flush the follow milking, achieving further water

Dairy shed roof capturing rainwater and stored in a rainwater tank.

All photos courtesy of Department Primary Industries Victoria

Gordon Collie

savings. This saves around 300 litres per plus pasture and have already begun to make some silage this season. day, or 109,500 litres per year.

The conserved feed is sometimes The rainwater doesn’t build up mineral salts or cause corrosion issues in needed before Christmas in dry seathe milking system and makes optimal sons, but with their current good soil moisture reserves, Alex is hoping it use of detergent.

Alex said they were happy to main- will be well into the New Year before tain production from their good qual- the pastures need supplementing.

They also will make some hay later ity Friesian herd with the property well stocked carrying 200 milking cows in the season. It is usually at least the end of November plus dry cows and springers.

Hydrant washers will before conditions suitable for hay They supply to use effluent from the are making.

Murray Goulburn Planting some on a seasonal basis, effluent system to which suits their wash the yard, saving more trees on the property is also on property manage- 5000 litres of fresh agenda for Alex ment. With seawater each day or 1.8 the and Brenda. sonal variation Shelter belts in calvings, their megalitres each year. can enhance herd downtime can vary from as little as two to three weeks to comfort year round with protection during cold, wet spells in the winter and more than a month.

With milk prices likely to be about shade during hot summer days.

This can have the added benefit of the same as last season, Alex said the big benefit of dairying was regular cash reducing the stock drinking water conflow which enabled them to budget sumption. A lactating dairy cow can on progressively improving their drink as much as 200 litres per day in the peak of summer. The volume of enterprise.

Rye and clover pastures make up the water consumed will depend upon bulk of their feed production with some many factors including the condition of bale feeding of grain according to sea- the animal, its diet and level of activity, quality of the water and environmental sonal conditions.

They have a program of making conditions such as humidity and temsilage in plastic wrap bales from sur- perature.

Dairy NewS AUSTRALIA november 2011

management // 21

Compost your dead cows rick bayne

Dairy farmers are being encouraged to consider composting their dead cows as a simple and productive way of dealing with deceased stock.

A soil compost workshop at Terang’s DemoDAIRY last month was told that using dead stock as part of a compost system would solve problems faced by more and more dairy farms; how to dispose of deceased animals.

The workshop, attended by 66 farmers and service providers, was hosted by the Future Ready Dairy Systems and Glenelg Hopkins CMA as part of the reducing soil acidification project.

Guest speaker Kevin Wilkinson from the Department of Primary Industries’ Future Farm Systems Research Division said a reduction in knackery and rendering services and stringent EPA guidelines reduced options for dairy farmers.

“You just can’t dump dead stock in a back corner of the farm; it is an environmental risk and illegal,” Dr Wilkinson said.

“Deceased stock can be composted very successfully and simply,” he said.

Dr Wilkinson said ‘mortality composting’ was a natural biological process and could apply to any farm animal.

The resulting compost can provide organic matter and nutrients to improve soils.

The system involves placing

50-60cm of absorbent carbon material (such as sawdust) under the animal and then covering it with 60-90cm of the same type of material.

“The animal is encased above ground with clean organic material which acts as a barrier to prevent odours escaping and keep scavengers away,” Dr Wilkinson said.

A cow compost pile should be turned after about four months to expedite decomposition and water can be added as needed to promote the breakdown of the body.

The entire process takes six to eight months, including a curing phase to complete the composting.

Dr Wilkinson said the breakdown was thorough.

“You will be left with some larger bones that won’t decompose but that

Compost helps prevent disease Rick Bayne

More dairy farmers

are turning to compost in an effort to improve their soil conditions.

DPI Productive Soils Specialist Declan McDonald told a farm compost seminar at Terang last month that there was growing interest in on-farm composting and that farm soils were benefitting from the move.

“If we had a field day like this 10 or 20 years ago no-one would have turned up,” McDonald said. The field day at DemoDAIRY at Terang attracted 66 farmers and service providers.

“Once upon a time most farmers used compost but that went by the wayside with access to affordable fertilisers,” McDonald said.

“Now farmers are realising fertiliser is not the whole deal. Fertiliser contributes to increased production but not always improved soil condition,” he said.

“Farmers should think of compost as a soil conditioner. There is some additional work involved but farmers are finding the additional benefits are worth it and it is very manageable.”

The interest in onfarm composting has escalated as farmers

seek alternative uses for hay and silage spoiled in last summer’s floods.

McDonald said compost set the stage for productive soil. “It will lead to some improvement in production but good compost can increase the size of the nutrient bucket and create conditions for good productive agricultural land,” he said.

“It maximises carbon storage capacity and when farmers add fertiliser they might find they get a better and quicker response. In the long term it may lead to a savings on your fertiliser bill.”

McDonald said compost could help in pest and disease prevention.

Glenelg Hopkins CMA Land Health Co-ordinator Richard Murphy told the workshop that on-farm composting turned an organic waste into a resource and could help to reduce the risk of soil acidification.

“Compost applications to soil can increase soil organic matter and biological activity. The organic material will help soil resist becoming acidic and a balance of fungi and bacteria will promote a soil pH that best supports plant growth,” Murphy said.

The composting process was explained and

demonstrated during the field day, including use of a windrow turner for larger compost piles.

Kevin Wilkinson from the Department of Primary Industries’ Future Farm Systems Research said composting was essentially a natural process driven by microbes.

Wilkinson said farmers needed to “get the basics right” to ensure their compost provided value for their soil.

“You need to provide an aerobic environment and get the moisture content and the temperature right. It is quite challenging but with experience it can be very rewarding.”

Wilkinson said the compost should not be too moist that it “drips through your fingers when you pick it up” or “too dry that it falls apart when you grab it.”

Farmers were also warned not to apply compost to their paddocks before it had cooled to near ambient temperature.

The field day was hosted by the Future Ready Dairy Systems and Glenelg Hopkins CMA and funded by the Australian Government’s Caring for our Country, Dairy Australia and the Australian Government’s Climate Change Research Program.

is a lot easier than having to dispose of the whole animal,” he said.

Dead animals can also be added to existing compost heaps but with the same requirements of being encased in carbon material.

Dr Wilkinson said farmers should follow health and safety precautions such as wearing gloves and protective masks when handling dead stock or compost materials.

The session was funded by Dairy Australia, Australian Government Climate Change Research Program and the Australian Government’s Caring for our Country.

Kevin Wilkinson says composting cows can provide organic matter and nutrients to improve soils.

Dairy News AUSTRALIA November 2011

22 // management

Effluent test can reduce fertiliser bill Jess Horton

Now winter has passed and soils are no longer water logged, it is time to start emptying effluent ponds and use their valuable nutrients to boost the growth of crops and pastures.

Get the contents of your effluent pond tested before you apply it so you can quantify the amount of nutrient applied from ponds. Then you will be able to reduce the amount of bought in fertiliser (this is called nutrient budgeting). The potential reduction in fertiliser cost is large for most farms.

Sludge sitting on the bottom of dairy effluent first ponds is also high in nutrients such as phosphorus and nitrogen. Some are readily available to plants and some is in slow release forms.

An excavator or slurry tanker is needed to distribute the sludge.

Alternatively stirring the pond prior to and when pumping the effluent onto the paddock can help distribute the sludge as well as the liquid component of your effluent pond.

When pumping effluent, ensure your pump and irrigation equipment suits the consistency of the effluent.

Avoid pumping effluent onto pastures in the middle of the day during hot weather because this may scald the plants.

Do not apply effluent to young seedlings. Wait until at least six weeks after sowing.

It is also important to soil test to monitor nutrient and sodium levels on effluent application areas. Also do not graze your paddocks until 21 days after the effluent application to minimise the chance of animal health issues.

And do not graze young stock, springers or freshly calved cows on any dairy effluent treated area.

Apply effluent when no rainfall events are predicted for three days following the application.

Always leave a buffer area between where the effluent is applied and any waterways. Thinner application of effluent will also minimise the risk of runoff and ensure all the valuable nutrients are reused for production purposes.

Emptying your ponds this spring through to autumn will ensure that they have a greater storage capacity for the winter months in 2012.

This will reduce the likelihood of dairy effluent leaving the farm boundary from overflowing ponds, which can have a negative impact on river, animal and human health.

Dairy effluent has the potential to pollute surface and ground water, and cause blue-green algal blooms.

The Environmental Protection Act passed in 1970 states that dairy effluent must remain ‘on-farm’ and the Environmental Protection Authority (EPA) can administer penalties if effluent is found to be leaving the farm boundaries.

For further information or to find an effluent system design and management consultant in your area you can refer to the ‘effluent system design service provider contact list’ on the DPI website at www.dpi.vic. gov.au/agriculture/dairy Jess Horton is a dairy extension officer with the Victorian Department of Primary Industries, based at Ellinbank.

Rearing heifers without drenching ALAN THATCHER

IT’S POSSIBLE to rear good

quality, young stock without resorting to drenching.

Success depends heavily on avoiding early exposure to the autumn larval peak, and grazing strategies must revolve around that.

This requires an understanding of the biology of the parasites involved (especially Ostertagia) and tailoring that to an individual farm situation.

Creating a bank of clean, good quality feed for autumn is essential.

Once calves have a significant worm burden, it is difficult to correct without the use of Ivermectin.

Organic remedies may help prevent this but they appear to perform poorly once the burden is sufficient to stop or reverse weight gains.

Worm eggs passed in the dung hatch into larvae and go through three development phases on pasture until they become infectious.

When eaten, they go through one

more stage to become egg-producing adults: that’s when they start doing damage.

Under ideal conditions this whole cycle can take as little as four weeks.

The survival of larvae and their speed of development on pasture depend much on moisture and temperature.

Summer dry and winter cold slow them right down. Larval survival is reduced too, but eggs are much more resistant and can hang around until conditions are more suitable.

What tends to happen is a minor rise in the numbers of larvae in spring, then a drop-off in summer, followed by a rapid build-up in early autumn once the rains arrive and the weather cools off.

This is the major danger period for spring-born calves.

There are several species of worms that can affect calves but the two most important ones are Ostertagia, which lives in the stomach (abomasum) and Cooperia which lives in the small intestine.

Ostertagia in particular can make

calves quite sick and substantially inhibits appetite.

A serious infestation of a combination of these two species results in a scouring animal, losing weight with a suppressed immune system.

It is now wide open to any other infections that happen to be around such as pneumonia, BVD or Yersinia and in a weakened calf these infections can be lethal.

It is virtually impossible – and indeed not desirable – to rear calves in a larvae-free environment. The objective is to keep larval intake low enough so weight gain is not affected while allowing just sufficient exposure for resistance to develop.

The key to achieving this is to minimise exposure to the autumn larval peak. If significant larval intake happens early in the autumn, the consequent cycle of suppressed appetite and poor immune response is difficult to break without resorting to a conventional drench.

Alan Thatcher is senior veterinarian, Massey University, New Zealand.

South Gippsland farmer Vicki Greig

Low-cost two pond system pays off used in the two dam effluent systems seen on many ers Vicki and Tony Greig larger dairy farms. manage the effluent from The effluent and wash their 110 cow herd using down water flows from the what is literally a two pond dairy and yards into a drop effluent system. pit, then passes through a Comprising of a 500 two metre length of 100mm gallon concrete water Who: PVC pipe into the first pond. trough and a 200 gallon Vicki and Tony Greig The solids component concrete water trough, the Where: settles to the bottom of the small scale effluent system Buffalo pond, allowing the liquid to was designed and built by What: flow through a short length Tony for less than $8000.

Two pond effluent system of PVC piping into the Although it is relatively second pond, which is sited labour intensive, as the top directly below. pond must be shovelled out The liquid is then pumped, via 100 four times a year, the system meets Environmental Protection Authority require- metres of 50mm poly piping and flexi hose, to a relatively flat 4ha paddock nearby, ments.

However, more importantly its where it is irrigated using a manure sprinextremely low cost has enabled Vicki and kler.

The remaining solids are spread out Tony to continue milking, something they wouldn’t have done if they’d been obliged over other paddocks.

Advantages of the system are its cost to build a larger system.

The Greigs milk 110 cows on 65ha at – the three horsepower mains powered pumped used for irrigation, which was Buffalo in South Gippsland.

“We only plan on milking for another $5500, was the most expensive component four or five years, and we don’t have kids of the system – and ease of construction – it took Tony just two days to build. to pass the farm onto,” Vicki said.

A main disadvantage of the system is “We probably would have gotten out early rather than make that type of invest- the lack of capacity for storing the nutrient-rich liquid. This means that Vicki and ment.”

Previously, the couple applied their Tony must irate after each milking, regardeffluent and washdown water directly less of weather conditions or fertiliser onto a sloping paddock beneath the dairy, requirements.

Further, they are not able to recycle the but there were concerns that run-off could water for wash down, for which they curmake its way into a nearby creek.

The system applies the same principles rently use fresh water.

Buffalo dairy farm-

Dairy NewS AUSTRALIA november 2011

management // 23

Dairy the best area to cut power costs WHEN dairy farmers ties,” he said.

“It’s not just about open their power bills, they can be assured that most of making changes, it’s about the cost emanates from the continually monitoring your usage.” milking shed.

For the Collins’, the With soaring power biggest energy user in the bills, a looming carbon shed is heating hot water tax and concerns about while cooling the milk greenhouse emissions, costs the most. Peter was many farmers are looking surprised how little energy at ways to slash their bills is used in lighting the shed. and reduce their carbon Darold Klindworth footprint. from the Department A public energy audit of Primary Industries at of Kerrie and Peter ColEllinbank told the group lins’ Fish Creek dairy last month saw a large turnout the dollar figures and posof curious farmers looking sibilities in energy and cost for tips on how to cut their savings change from farm to farm. own power usage.

Every farm has a unique Gabriel Hakim from set of conditions, includAgVet Projects, who coning different pumps, coolducted the audit, said being smaller than an average dairy, the Collins operation had smaller than average electricity inputs.

With power bills being only 3-4% of farm running costs, Hakim said some farmers could be tempted to forget about the savings that can Gabriel Hakim be made.

“It’s a small percentage, but “It’s better to reduce it’s one of the bills through easiest areas in reducing usage.” which to make savings,” he said.

“When you are looking ing systems and hot water services, so it is best to to reduce energy use, the dairy shed is the best place understand your system well and monitor all to do it.”

Hakim said some farm- devices, he said.

The group was told ers concentrated on getcareful research was ting better deals from required before installing electricity providers, rather than making signifi- renewable energy options such as solar and wind to cant and long lasting savensure a cost effective outings through changes to come was obtained. farming practices.

Often mistakes are “People are focusing on reducing their energy bills made in the positioning and planning of these through discounts, but projects that result in it’s better to reduce bills poor outcomes. Recent through reducing usage.” reductions in governChanging to a cooler ment rebates for solar syswater source, using varitems have also made these able speed drives on pumps and installing dedi- options less cost effective.

Young Dairy Developcated pumps were two of ment Program Gippsland the ways Hakim said the Collins’ could make imme- co-ordinator Kylie Barry said the level of interest in diate savings. the day showed that dairy “There are constraints farmers were commitbecause they don’t own ted to cutting their carbon the farm, but at the same footprint. time it’s about opportuni-

“At YDDP we want to give farmers the opportunity to look at different ways of doing things – we want to challenge them to see if there is a better way to run their operations.”

A public energy audit of Kerrie and Peter Collins’ Fish Creek dairy last month saw a large turnout of curious farmers looking for tips on how to cut their own power usage.

Dairy News AUSTRALIA November 2011

24 // management

EBL free status looms THE AUSTRALIAN

dairy industry will next year be declared free of cattle viral disease enzootic bovine leucosis (EBL). This follows a 15 year campaign.

However, Australian dairy farmers are being urged to maintain farm biosecurity as Australia prepares to claim freedom from the disease. It urges effective on-farm biosecurity to protect dairy herds from the introduction of infectious diseases and to

validate the EBL diseasefree claim.

Dairy Australia’s manager risk analysis, Robin Condron, refers to a 10-page publication (‘Dairy Biosecurity: Healthy Farms’) being mailed to farmers, together with animal welfare guides, help reduce the risks to farm business.

The guide is also available on the Dairy Australia website www.dairyaustralia.com.au Condron says biosecu-

rity arrangements for EBL are important following the eradication of the disease from the Australian dairy herd.

“Not all beef herds are free of EBL, so before introducing beef cattle onto their properties dairy farmers should test each individual animal.

“Alternatively, they should only source beef animals from herds that have tested negative for EBL.” The booklet covers

stock movement, contact with wildlife and vermin, fencing, waste treatment and dealing with dead stock.

“It helps explain biosecurity and the role it plays in protecting your farm and the whole Australian dairy industry from the introduction of exotic diseases such as foot and mouth disease,” says Condron.

“On-farm security assesses and manages risks from animal diseases, pests and weeds.

It should form part of normal farm business risk management.”

Pasture research under spotlight The focus of Australian pasture research for the next decade will be decided at a symposium in Melbourne next February.

The newly formed Australian Grassland Association, which combines the resources of the Grassland Society of Southern Australia and Grassland Society of NSW, is hosting the symposium which will focus on investment in legume research, development and extension.

It is the first of five annual national symposiums which will be pivotal in determining pasture innovations research across Australia.

The symposium will be held at the William Angliss Institute of TAFE conference centre on February 8-9 and will attract leading national and international

scientists and agronomy experts.

Association Executive Officer Clare de Kok said the symposium would discuss current legume research to address gaps in cropping and permanent pasture zones.

“By bringing together the major players in pasture research in Australia, we hope to develop a collective view to put to government and other funders that will provide a focus for future research.”

Association Chairman Jim Virgona said 20 abstracts were already submitted for the symposium and experts from Australia and overseas would make presentations.

Virgona said it was the first time a coordinated national approach was being taken into pastures research.

Funding for national soil care project Dairy farmers

across Australia will benefit from a natural resource management project conducted by Dairy Australia with federal government funding.

Nutrient use efficiency and managing soil acidity will be the target of the project awarded to Dairy Australia under the $325,000 funding provided by the federal government’s Caring for our Country scheme.

A national two-year project will see about 130 dairy farmers and 50 service providers developing guidelines on nutrient management. The guidelines will be showcased on at least 30 dairy farms nationally.

Dairy Australia’s Natural Resource Management Program Manager, Cathy Phelps, said there are three parts to the project.

“The first step is to

develop national nutrient management guidelines in partnership with farmers, advisors, fertiliser sellers and technical experts.

“The guidelines will then be piloted in at least three dairy regions to ensure they meet the needs of farmers and farm advisors.

“The third component involves on-farm demonstration of best practice nutrient management.”

Outputs from the project will be made available through a web-based dairy nutrient management toolkit.

Phelps said the industry had long sought a set of national guidelines for nutrient management and how to integrate them into farmers’ decision making.

“We need industry-endorsed national guidelines giving clear, consistent messages about best-practice soil and nutrient management.”

Dairy NewS AUSTRALIA november 2011

animal health // 25

In-line sensors lift milk production Rick Bayne

South-west Victorian dairy farmers that adopted new technology to overcome a cell count problem have found it has significantly improved their milk production.

Mepunga dairy farmers Barry and Andrea Smith invested in yield and cell count in-line sensors in December last year and have already recouped their outlay.

The equipment has helped the farm to sustain regular premium milk status and improve its feeding for production regime.

The herd is now producing up to two litres of extra milk per cow every day.

A daily flow of information has helped the Smiths to amend their feeding program to focus on developing better producing cows.

Barry Smith said that installing Jantec Systems’ CellSense in-line cell count sensors had been a big investment but one that was proving worthwhile.

“It was a way of improving our knowledge of farming through the use of technology,” he said.

The 46-year veteran of dairy farming is not shy about introducing new technology to his farming operation. They use a new computer monitoring system and a second CellSense system will be installed soon on their share farm.

“You’ve got to keep up with the times and make sure you’re getting the best out of your herd,” he said.

After starting out milking cows on his parents’ farm, Smith now has two farms covering 640 hectares in the fertile Mepunga region. Combined they are milking 1400 cows.

His sons Stephen and Paul, nephew Craig Smith and assistant Hamish Milne work full time and sharefarmers Brett Nutting and Jodie Probert run the second farm.

Since introducing the sensors last December, the farm hasn’t received any downgrades for high SCC on its milk.

“We were in and out of premium and standard ratings and having trou-

Who:

Barry and Andrea Smith Where:

Mepunga What:

Reducing cell count

Barry Smith invested in yield and cell count in-line sensors in December last year and has already recouped his outlay.

bles with our cell counts prior to introducing CellSense,” Smith said.

“Since then our cell counts have been down and we have been in the premium level every time which means we get much better income,” he said.

“Because we’ve got four different milkers it was hard to keep a consistent check on everything so this has made monitoring much easier.”

The system uses CMT chemistry to provide a cell count measure, and is combined with a YieldSense+ sensor that measures volume, fat, protein, temperature, lactose and conductivity.

The regular flow of information allows the Smiths to improve their system of feeding for production.

“When you’re feeding for production you need to know how many litres of milk a cow is producing each day,” Smith said.

“We’ve been able to better direct our feeding. We haven’t been spending any more on feed, just making better use of what we have.

The herd is now producing up to two litres of extra milk per cow per day.

“If you’re herd testing every six weeks you’re not getting enough information. If you feed daily for production you should test daily.”

He says his herd testing days are now over.

“It was a real hassle and pretty costly so it will be a big help to not have to do them anymore.”

The improved results have prompted

the Smiths to adjust their feeding pattern to give high milk producers more grain and to reduce the intake for lesser producing cows.

“It’s about ensuring we get better production,” Smith said. “Having these figures will help us to eventually cull the lesser producing cows out of the herd which will help to improve profits.”

Smith said he had waited 18 months to see if the technology was working on other farms before making his investment.

“It’s not cheap,” he said.

“It cost us about $50,000 all up to put it in but we thought that we could pay it off within two years.

“With the savings on herd testing, the extra milk production and being able to stay in premium rankings we’ve been able to recoup the cost within 12 months.”

Smith confidently describes the technology as one of the best innovations he has adopted in his long farming career.

“To be able to get measures from every cow at every milking helps us to establish a production system to get the best out of our herd,” he said.

The Smiths hosted a Victorian Department of Primary Industries (DPI) field day last month.

DPI Livestock Industry Development Officer Sam Ellis said the field day, held in conjunction with a walk-over weighing promotion at another farm at Framlingham, discussed technologies which could be used to address major problems on dairy farms.

He said veterinarian staff and software specialists were working with local dairy farmers to assist them into the future.

Avoiding lameness prevents milk loss With lameness being identified as causing an 18% drop in cow production, south-west Victorian veterinarians have been learning ways treat the problem and help farmers avoid it developing.

The Future Ready Dairy Systems project hosted a workshop at Terang’s DemoDAIRY last month where methods of dealing with lameness were explained to a group of 20 local veterinarians.

Presenter Dr David Colson from The Vet Group also outlined resources available from Dairy Australia to help farmers deal with the problem.

The workshop developed the capacity of veterinarians to conduct on-farm sessions for farmers and followed a ‘train the trainer’ theory session held earlier in the year.

The sessions were funded

by Dairy Australia to disseminate information about managing lameness in wet conditions, equipment for treating lameness, selecting a crush for treating lameness and building blocks for good laneways.

Dr Colson said lameness was a big issue on dairy farms and was being treated as a high-risk priority by Dairy Australia.

“A lame cow loses 18% of production but it is also an animal

welfare issue,” he said.

Colson said farmers should have a lameness strategy in place and aim for early detection of the problem.

“That is best for the animal’s welfare and for the farm itself.”

Co-presenter Peter Best, from Innovative Farm Imports, said farmers could take preventative measures to avoid lameness and vets could play a role in advocating safe conditions.

These could include maintaining laneways, avoiding abrasive concrete, using rubber matting where concrete is worn, promoting smooth flow of cows, and avoiding letting cows slip.

“There’s no point trimming cow’s hooves unless you’ve got everything else right,” he said.

“We hope vets will take up the challenge to run sessions on lameness for their farmers. The sessions are really well received by the farmers and an excellent extension activity,” Dr Colson added.

“If we can help farmers to avoid the problem it is better for the industry and for vets,” he said.

The workshop was funded by Dairy Australia and supported by Future Ready Dairy Systems Project which is funded through the Australian Government Climate Change Research Program.

Dr Dave Colson

Use antibiotics wisely FRED HOEKSTRA

ARE YOU a druggy? I mean are you using too many antibiotics on your cows. It is not a good idea to reach out for drugs as soon as you see a lame cow.

I know that some of you do that. Lame cows hardly ever need antibiotics. Even when you trim a cow and you see some pus coming out of the wound you often don’t need penicillin. On the other hand there are cases that only antibiotics can fix. So what is the difference?

Let’s have another look at the autonomy of the foot. Around all the live tissue outside a body grows the skin. The function of the skin is to be a barrier between the out-

side world and the live tissue inside the body.

Most of the skin grows hair but at the bottom of the feet this skin grows the horny tissue that we call “claw”.

When we trim a cow’s foot and we see some pus coming out it is more likely that it comes from the outside of the skin (corium). In this case it is still a superficial infection and the corium is still doing that part of its job properly. It just isn’t growing horn.

However, if the bacteria manage to get through the corium then you have an issue that requires antibiotics.

In these cases the foot would be swollen up and warm. Your veterinarian can advise you which antibiotics to use. There is

a big difference between an infection in the interdigital space (foot rot) and an infection in just one claw, which often enters into the claw at the white line in the heel area. Different types of antibiotics should be used.

Cows that have only a superficial infection just need a proper trim. The idea is to remove as much weight as possible from that claw so as to allow the air to dry the wound out; if it is not possible to

create enough height difference naturally then you can glue a claw block to the healthy claw to remove all the weight off the sore one. In these cases Penicillin won’t help, potentially making things worse and even put you at risk.

Let me explain. If penicillin is used a lot then the bacteria begin to build up a resistance to it, especially when the course isn’t finished and cows are getting only half the doses that they need. With these new

immune bacteria we now have a super bug. People can get infected by these bacteria and if that happens what are the doctors going to use to get rid of it?

The usual antibiotics don’t work anymore.

You may think that this is a bit far-fetched. Well it is already happening. You would have heard of the super bug in the hospitals. Scientists believe that the MRSA (staphylococcal aureus) bacterium is being spread by farm staff as well as in hospitals.

This just shows that we need to be much more careful with the use of antibiotics and we do have a huge responsibility to the public. Only use it when you really need it.

Fred Hoekstra is managing director Veehof Dairy Services, NZ.

Dairy NewS AUSTRALIA november 2011

animal health // 27

Toxins cause cranky cows Rick Bayne

“Cranky cow” syndrome is a growing problem but is often overlooked by Australian dairy farmers, a field day in south-west Victoria has been told.

The syndrome makes cows become temperamental, reduces their production and leaves them suffering from various ailments, including heat stress and staggers.

It is caused by toxins produced by the rye grass endophyte in pastures.

The syndrome was discussed as part of the `More Milk, Less Stress’ field day at Ecklin, near Terang. The field day, held last month, was organised by Farmgate Stockfeeds and aimed to help dairy farmers improve their milk output and cope better when times are tough.

Along with milk production and herd health tips, the field day also heard from health professionals about dealing with stress as a farmer.

Ruminant nutritionist Damian Moore, director of

Parasites detected In Victoria CATTLEMEN in northeast Victoria and Gippsland are seeing increased cases of theileriosis (T. buffeli).

Victorian Department of Primary Industries (DPI) district veterinary officer Lee Manning says while theileria was common in northern NSW and Queensland, and that cattle had developed immunity and didn’t show any illness, it had been rarely seen in Victoria.

“Theileria is a blood parasite which typically infects cattle through a tick bite,” says Manning.

Victorian beef and dairy herds have been infected when cattle from the northern states, carrying ticks infested with theileria, are introduced into a herd or on to adjoining properties. The parasite can cause illness and even death to cattle not previously exposed to theileria.

Theileria is transmitted by blood-sucking ticks, including the common bush tick, which is widespread in Victoria. It can be carried by all mammals, including wildlife, dogs and cats, as well as birds, says Manning.

Other instances where blood may be transmitted between cattle – including blood sucking insects, needles, ear notching and castration – could also transmit theileria.

Manning says there is no specific treatment for

theileriosis; only symptomatic treatment could be provided, including good nursing, but cattle with severe anaemia may not recover.

“The disease causes mild to severe anaemia due to destruction of red blood cells and this can be seen as lethargy, weakness, pale mucous membranes, a drop in milk production, going off feed, difficulty breathing, abortions, jaundice and sudden death,” she said.

“Cattle are more likely to show signs when stressed, especially at the point of calving but most infected cattle will have benign theileriosis and show no signs of illness. Bush ticks are almost impossible to eradicate from a property because they are on and off the host in a week and live in pasture for many months, as well as surviving on wildlife.

“This parasite is not T. parva, which is an exotic parasite causing East Coast Fever in Africa.”

It is endemic in northern Australia, although rarely diagnosed in Victoria. He urges farmers to contact their local vet for advice if cattle are showing multiple abortions, signs of anaemia or any other unusual signs.

The disease can be confirmed by laboratory testing.

feed safety with Meriden Animal Health, told the field day that “cranky cow” syndrome was more of a problem than most farmers realised.

“They often blame the weather, dogs and all sorts of things for when cows are playing up but the problem is actually caused by these toxins produced by the endophytes in their pastures,” Moore said.

“Most farmers don’t realise the cause because the toxins have been in the pastures for so long and so have the effects.”

Damian Moore

The toxins produced by the endophytes can cause a variety of effects, such as giving the cows `staggers’, heat stress, a reduction in feed intake, reduced milk

production and general irritability.

“Affected cows will be quite temperament and tend to strike out, kick the cups off and be frightened very easily,” Moore said.

Endophytes are particularly prevalent in perennial ryegrass and tall fescue and most frequently found in older pastures.

Moore said Australia’s meat industry lost about $60 million a year in stock and production loss due to endophyte toxins.

Extreme cases in hot

summers could result in multiple animal deaths, he added.

Moore said there was no silver bullet cure for the problem but Fusion, a new generation microtoxin binder, was working well in reducing the direct effects of perennial ryegrass toxicity.

Also at the field day Performance Probiotics area manager Tom Newton outlined natural ways to improve herd health and performance, dairy farmer Jack Kenna told his story of running

a dairy farm and business while coping with a mental illness, and local health workers organised

by Aspire, A Pathway to Mental Health provided advice about recognising and handling stressful times.

Farmgate Stockfeeds director Mathew Logan said the field day was designed to provide farmers with relevant advice on animal health and production, as well as informing them about how to identify and deal with signs of stress.

Dairy News AUSTRALIA November 2011

28 // animal health

Fertile cows a weighty issue Rick Bayne

A research project in south-west

This study could help farmers adjust their management programs to address fertility issues.

Victoria is aiming to improve dairy fertility rates through daily weight monitoring.

More than 600 cows on Troy Stuart’s matically records individual cow profarm at Framlingham are being weighed duction and weight data and transfers to determine if weight loss after calving the measurements to the dairy comis impacting negatively on their ability puter.

In-line milk meters at every bail on to return to calf the following year.

The study is using daily weight and the platform give access to individual milk production data to analyse the bi-daily measures of total milk volume, impact of weight change and produc- fat, protein and lactose percentage, and tion levels on reproductive perfor- conductivity.

The study is expected to be commance.

While there are no conclusive results pleted at the end of 2012 and data colas yet, some preliminary findings are lection is continuing.

Stuart introduced the interesting researchers. weighing system about Early data has shown three years ago to enable that cows conceiving early detection and interfrom their first artificial vention for sick/poor insemination service doing animals. lose less body weight He hoped this would than those that didn’t improve conception conceive the first time – rates, decrease masti5% in the first six weeks tis, increase milk procompared to 8%.

Who: duction and streamline The herd in 2011 lost Troy Stuart Where: individual feeding based on average 5% body Framlingham on animal performance. weight in the first four What: “We hoped it would weeks after calving and Monitoring weight loss pick up rapid weight then gradually increased loss but it varies a lot and weight.

In 2010 there was a 7% weight loss they can lose up to 20kg between milkings,” he said. over the first six weeks post calving.

“The DPI (Department of Primary Not all cows followed the traditional pattern of losing weight post calv- Industries) was keen to be involved ing for six weeks followed by a steady and when Becky came on board we have incline, with some two-year-olds grad- been trialing the cycling of cows.”

The scales are a low-maintenance ually increasing in weight, some losing weight over a longer time frame and addition to the farm.

“The cows walk straight over some showing very little change.

The research is being carried out by the scales so there’s no more labour Dr Becky Dickinson, a dairy cattle res- involved,” Stuart added.

The farm previously used regular ident veterinarian employed by Melbourne University and working with herd testing for production information but this proved frustrating with Warrnambool Veterinary Clinic.

Tru-test Walkover scales have been identification irregularities and quesinstalled at the exit of the Stuart dairy tions about reliability of data.

DPI Livestock Industry Developto measure the average weight of each ment Officer Sam Ellis said it was hoped cow as she leaves.

A Jantec identification system auto- the data from the study could be used

Dairy farmer Troy Stuart, Dr Becky Dickinson and DPI Livestock Industry Development Officer Sam Ellis.

Dr Becky Dickinson with the Tru-Test Walkover scales at Troy Stuart's Framlingham dairy farm.

by farmers to adjust their management programs to address fertility issues.

“Troy is trialing ideas such as reducing feed for animals producing large volumes of milk around drying off, and he hopes that this, in combination with products such as Teatseal, will help decrease herd mastitis,” Ellis said.

“Fertility is an issue for many farmers and this is one of the different ways of looking at finding answers.

“Hopefully after the data is analysed, farmers will be able to identify what animals are having trouble and use that information to change their management. There are no conclusive results at this stage.”

Dickinson said it was suspected that weight loss post calving was contributing to the inability of cows to become pregnant but there were no studies in Australia to confirm this.

“Overseas studies have supported this theory but there is very little live weight work in Australia.

“A large number of herds in Victoria have a seasonal calving pattern which is different to the year-round calving seen overseas, so it will be useful to see if we can detect any link here.”

Most of the work so far has concentrated on managing and assessing weight data and weight change patterns.

“We need the data to be accurate before it can be combined with reproduction and production data,” Dickinson added.

Dickinson said that if the study showed a link between weight loss after calving and a cow’s ability to become pregnant the following season, farmers may be able to adjust their feed management systems to reduce weight loss in the post-calving period.

“We are hoping to find ways in which scales can act as a useful tool in dairy management, such as assisting in reproductive decision making, e.g. to serve or not, what semen to use, and to assist in nutrition management. Much research is still needed in this area.”

The Department of Primary Industries hosted a dairy technology field day at the Stuart farm last month.

Dairy NewS AUSTRALIA november 2011

animal health // 29

Dairy farmers deserve their time in the spotlight Well, the Melbourne Cup is run and won for another year, and Australians get back to their day to day business of largely ignoring what is going on in the horse world.

Unfortunately, those of us who have dedicated our lives to the dairy industry really don’t even have one day in the sun, one day of the year when the nation stops to recognise the value of our industry and the importance of milk.

Milk products that help feed our nation; provide a source of safe, quality food to the world; and add more than a billion dollars to our economy.

Instead, consumers are led down the supermarket aisles by cheap milk, our hard work and toil leveraged to increase the sales of convenience foods and other junk which contribute nothing to our wellbeing, but plenty to the supermarket coffers.

As a veterinarian, I am regularly told of how tight the margins are on dairy farms, and I can see every day the hidden costs of underinvestment made on dairy farms in maintenance, staff training and preventative animal health.

The dairy industry pays millions in producer levies, and generates millions more in revenues and supports thousands of Australian jobs. Maybe we deserve a “dairy day” that stops the nation for three minutes just to acknowledge the great work that we do.

Your vet has an important role to play in advising on all aspects of preventative animal health programs.

Because of our training, and the fact that we are generally able to provide independent advice, your vet is well positioned to do more than just provide a fire engine service, hosing down the occasional disasters that occur.

Last month, I talked about the importance of making a diagnosis, and I would again like to reiterate that comment.

The failure to look for a problem will always mean

animal health rob bonanno that you do not find the solution.

Animal disease in production medicine is all about some breakdown in the system. You must ask yourself: What has occurred to change the balance in this particular animal or herd that has caused the disease to occur?

There is a balance between the animal, its environment, its management and the pathogens present that is somehow out of whack.

Knowing what the actual disease is will be the first and most important step in treating and preventing disease or production loss.

Lameness is the most significant welfare concern.

Lameness is a classic example of a common problem with literally dozens of possible causes and hence treatment and prevention strategies.

Lameness is, in my opinion, one of the most significant welfare and production concerns in dairy practice.

It can be caused by a number of factors, including primary infection, mechanical damage, wear and tear and trauma.

Understanding what the exact lesion is will allow us to not only treat it correctly, but also to put in place strategies to prevent the disease.

I know that I personally am pretty hopeless at recording these things, but I would suggest that all farmers keep accurate records of not only the treatments given, but also the exact diagnosis made

for lameness cases and all other problems on the farm.

It is a case of do as I say, not as I do!

This will allow you to collect, over time, a good picture of what is happening, what it is being treated with and whether those treatments are actually working.

By examining that data, you can determine

whether there are management changes that can or should be made to prevent future problems.

For advice on what information to collect, contact your local dairy vet for independent, unbiased advice.

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

Dairy News AUSTRALIA November 2011

30 // machinery & Products

Puma has “brute strength” Murray Tuck, the principal of Traf Tractors at Trafalgar, in Gippsland, reckons that Michael Armstrong is the typical ‘old head on young shoulders’.

“He is a well-respected operator that other farmers in the area take notice of,” Tuck said.

“He’s passionate about dairying, so he does a good job.”

Michael and Brianna milk 500 Holsteins on a 160 hectare property just south of Korumburra in a 50% sharefarming arrangement with owners Ian and Joanne Cash. They have been there for six years.

Michael, who is now 27, grew up on the family dairy farm near Smithton in Tasmania and came over to the mainland in 2004.

When they first arrived, they bought a second-hand Case MX100C from Traf Tractors which Michael describes as “a real good tractor”.

It was traded in on a new Case MXU110 which did about 2500 hours but was not big enough for the job and Michael was looking around for a replacement.

In the meantime they had acquired a second-hand MXU125.

It was then that they departed from

new products chris dingle their usual practice of buying Case gear from Traf Tractors.

“It was a big mistake,” Michael said.

They have now ordered a new Case Puma 140 and at the time of our visit in mid-October were awaiting delivery.

The Puma will be used mainly for feeding silage and topping the paddocks which is done twice a year. The MXU125 will be staying on to do everything else.

“I find that the Case tractors we’ve had are comfortable and simple”, explained Michael. “We’ve had no problems, except for clutch springs because of the front-end loader.

“The only criticism I have is that the red colour fades, probably because of the UV in this part of Australia.

“What I also like about Case tractors is the 600 hour service intervals

and the extended ‘Red Cover’ warranty with Case IH. “Most of the tractor hours we do are for feeding. The new Puma is 140 horsepower, bigger than we’ve had before, with front suspension and cab suspension.”

The tractor will come with 18 forward/6 reverse full power shift, and the 6.75 litre Tier 3 turbocharged engine utilises a Power Boost™ management feature to help tackle tough crop conditions or steep grades.

The optional suspended front axle system is designed to provide improved traction in the paddock and better stability at high transport speeds.

Tuck said he recommended this unit because of “the brute strength in the driveline.”

“The transmission has been around for a long time and has proved itself in reliability and the cost of ownership.

Plus cabin visibility is second to none.

“This unit is bigger and heavier.

Michael was looking for more weight, particularly with operating the silage wagon. He needs something with a bit of grunt.”

Michael is fervent in his praise for the dealership; “They are great blokes at

above-ground covered pits.

They did 320ha of pasture silage this year and Who: Michael Armstrong 800 rolls of hay, using conWhere: tractors for that part of the Korumburra business.

What: The cows are averagCase Puma 140 ing 38-39 litres/day, 10,000 litres per year with 700kg of solids.

The Puma will be used for They are big grain feedfeeding silage and topping ers at 3000kg per year; that’s 10kg/day in the bail. the paddocks.

This is because of their relatively heavy stocking Traf Tractors, particularly Murray Tuck.

They helped us out when we started rate with 500 cows on the 160 hectare here, and we buy all our equipment property. They utilise 100ha of their from them. It’s a good dealership and house block as a run-off.

For the future, Armstrong said that I’d rather deal with Murray than anybody else. He’s a good machine person, they are stable and happy where they are. but also a good ‘people person’ ”.

“The Cases are good to work with.

Traf Tractors are Lely dealers and the Armstrongs also have a Lely spreader, We own the tractors and machinery and 50% of the cows. We might creep mower and tedder.

The mower is their third Lely unit up slowly to 600 cows. But I won’t be and came on board when they took the doing anything else but dairying.”

Massey Ferguson mower back to the Working Clothes will focus on the performance of a new machine in the dealer.

A 21 cubic metre Giltrap silage paddock each month. Send suggestions wagon with remote scales looks after to Chris Dingle on 0417 735 001 or email that side of the silage which is kept in chris@springbankfarm.com.au

Dairy NewS AUSTRALIA november 2011

machinery & products // 31

New Houle pump runs on single-phase power Peter Maguire,

managing director of GEA Farm Technologies, which was formerly known as Westfalia Surge, is enthusiastic about the new Houle dairy effluent pump that they are bringing in from Europe. The twin-piston self-priming pump was apparently specifically designed with Australian dairy farms in mind and is able to pump long distances at high pressure. The critical thing about it, though, is that it uses single-phase power. They say that it will give farmers more options about where on the farm they want to pump effluent to, and will reduce electricity consumption as it does so.

More information at geafarmtechnologies.com

Tractors up, hay equipment down On the machinery sales front, the first quarter of the current financial year saw a good result in the tractor sector most relevant to the dairy industry – 40 to 100 PTO horsepower. Overall sales were up 17% on the same period for last year, with Victoria up a massive 30%.

Alan Kirsten of Agriview says that the good result reflects “a bit of a catch-up in the supply chain, but also owes a lot to better milk pricing and a favourable dairy outlook”.

Kirsten said the hay equipment market is subdued, with mowers and rakes particularly quiet.

“Baler sales are down 25% on last year, but the seasons are late and we could expect a kick along soon.

“The orders are slow, but agriculture is still a good place to be, compared with the rest of the economy.”

John Shannon, at Cobram Farm Equipment on the Murray River would agree with the hay situation.

“The crops are looking fantastic”, he told us, but he’s mystified that there

is little activity on hay machinery.

“Contractors aren’t out doing much and generally there’s not much activity at all. We are currently in between demos of general machinery that will start early next year.”

New JD baler coming Keep eyes and ears out for a new John Deere round baler to be released in the next few weeks, including, we believe, a new netwrap product, exclusive to John Deere.

Dairy Conference coming soon An event to mark in your calendar is the tenth anniversary of the Australian Dairy Conference.

It will be staged at Lardner Park, near Warragul, on February 22-24.

The organisers are hoping for 500 delegates and say their motto is “design a great program – and they will come!”

Big results with robots Rob Ciavatta at Dairy Tech South East, Mt Gambier, SA, is happy to report he is flat out with business at the moment, they have seven staff on the payroll in the dealership and are about to install their fifteenth robotic milking machine.

His patch is probably at the centre of robotic milking in Australia and he told us that one of his customers is said to have “the most efficient dairy in the world”, where one operator milks 500 cows.

Some of them produce 60 – 70 litres a day and the milking machine gives an immediate display of fat and protein levels.

Automatic feeders all the go Murray Tuck at Traf Tractors at Trafalgar in Gippsland says automatic feeding systems for calves and heifers are all the go down his way.

He told us he has a customer at Poowong

with a four station Lely calf feeder set-up and two Cosmic grain feeders.

The result is the farmer has two-year-old heifers producing 30 litres a day.

new products chris dingle

Ex-dairy farmer joins Tapex team A former dairy farmer

has taken up the role of territory manager for Tapex, looking after the Western District and most of the west of Victoria, including Bendigo, Cohuna and across to Horsham.

Anthony Watts was born on a dairy farm at

Deans Marsh and worked on the family farm for 24 years straight from school.

He operated as a hay and silage contractor and was introduced to Tapex products in that role.

“We cut all our own hay and silage and I found the

Tapex products absolutely wonderful. It solved all my problems”, Watts said.

He is based at Inverleigh, near Geelong, and can be contacted on 0408 497 611.

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

Dairy News AUSTRALIA November 2011

32 // machinery & products

Kubota utility tractor handles all occasions Hydrostatic transmission and

power steering makes Kubota’s 33 horsepower B3300SU suitable for all types of applications.

Kubota says high capacity power steering offers higher torque, giving operators responsive

control and a vibration dampening mechanism helps reduce fatigue and increases comfort during long days on the job. It also means manoeuvrability in soft ground is made much easier, especially during front end loader applications.

The B3300SU features a Kubota 33 horsepower, 4 cylinder, liquid-cooled diesel engine with Kubota’s E-TVCS (three-vortex combustion system) for increased power, high torque and cleaner emissions.

This engine is matched

to the proven three range hydrostatic transmission operating via a wet multidisc clutch for smooth power delivery to rear mounted implements attached to the power take off shaft.

The three point linkage is designed to handle

a variety of implements with fast and easy hook ups. The lift capacity of the three point hitch is strong enough to handle implements such as slashers, rear blades and rotary hoes.

The three point linkage lever guide allows for smaller adjustments, often required when attaching/ detaching implements

or when more sensitive operations are being performed.

The company says the B3300SU package includes all of the features customers expect in Kubota compact tractors, including a large operator’s platform.

“Widely spaced fenders provide extra room and a high back seat is fitted so the operator can work in comfort.”

Large, easy to identify angled lever guides and colour coded levers are well positioned on the mudguards within easy reach for the operator.

The now standard black

on white dash panel keeps the operator informed of vital tractor functions.

The B3300SU with its slanted hood offering a clear forward view is an ideal tractor for front end loader work.

A 4-position hydraulic valve with a joy-stick control located adjacent to the operator’s right hand is integrated into the B3300SU. This valve is ideal for operating the quick attach/ detach level lift front end loader available for the B3300SU. This loader is available with either standard or 4:1 bucket options.

Tel. 1800 334 653

Placed to dry, wilt fast

A GOOD grass mower

leaves any grass in a position to dry and wilt quickly to the correct dry matter (DM), retaining the maximum metabolic energy (ME), says Maxam.

The Maxam mower, with the Wilter spreader, leaves a carpet of conditioned grass right across the paddock, lightly fluffed up for maximum exposure to the sun and warm breeze. These elements suck excess moisture from the grass and secure valuable nutrients on which stock thrive.

The tossing action of the Wilter spreader throws the heavier grasses further than the shorter lengths so they land on top, getting more exposure to the elements. This ensures an even wilt, right through the sward.

From the Wilter the crop is tossed sideways so

it does not roll and knot, which also aids the wilting and drying process.

Maxam mowers are designed and manufactured to suit New Zealand farms, and grass harvesting techniques.

Ideal for mowing grass for forage crops, the Maxam has an edge when it comes to pre-cutting or topping grass for cows to eat directly, the company says.

The low, clean-cut and tidy row ensures no wastage and can prevent bloat, and the cows increase their milk production eating the wilted grass, which has increased sugar levels over uncut grass. The topped grass is then in an ideal state for re-growing.

Four models are available; 3300 (3.3m), 2500 (2.5m), 2130 (2.1m) and the MXL250 (2.5m).

Tel. (02) 6364 2339

Dairy NewS AUSTRALIA november 2011

machinery & products // 33

Better farm data access Businesses often

do not have systems in place to properly store, organise, protect and share their information because it is not a simple problem to solve.

Even with the best IT system in the world in your office, there can still be problems with disparate tools which don’t synchronise properly.

Perth-based company Agworld has released a suite of tools to take care of document management, customer relationship management, data capture, centralised business processes and tracking and more.

For farmers, their cloud-based system can manage all documents important to their farming business in one central location.

Information can be filed by property, paddock and custom tags so they can always find it when they need it.

Because Agworld uses a cloud-based platform, farmers can have total control over how to share farm information without

“My agronomist is an Agworld user. Once he writes something down, it’s automatically transferred to my computer.” the hassle of emailing, uploading or downloading files.

Agworld CEO Doug Fitch said documents are safe from fire, theft and viruses as they are replicated across multiple secure physical environments and backed up against accidental deletion.

“Store all of your farm information centrally so you can access it in the field on any mobile device, even offline using the new Agworld iPad app, or from your PC.” Ease of information transfer and sharing is central to Agworld’s popularity with farmers and consultants.

WA broadacre farmer Murray Dixon has been an Agworld user since the program’s launch.

“My weed agronomist is an Agworld user too.

Once he writes something

No unwanted power shocks ANY FARMER who’s

ever had a belt off a farm gate inadvertently connected to an electric fence will appreciate a Tru-Test product designed to stop such shocking experiences. Tru-Test Group has designed an adjustable hinge with a non-conductive nylon insert that insulates the gate, preventing current from an adjacent electric fence electrifying the gate.

The company says the insert also gives a perfect fit and a better bearing sur-

face to reduce wear, while the two-bolt one-piece design increases clamping and limits unwanted gate movements.

The new hinge prevents gates from coming off the gudgeon, saving farmers from having to lift and drag them open – as well as from getting an unwelcome shock.

The hinge is being rolled out to new Hayes and Cyclone farm gates and is also sold separately.

Tel. 0800 878 837 www.tru-test.com

down, it’s automatically transferred to my computer,” Dixon said.

“And if he makes a recommendation, I can read up on that product in the Agworld reference

library if I want to.”

The Agworld reference library is a vast store of information that’s targeted, relevant and timely.

Farmers can access the right information at the right time, exact match their search criteria, build their own reference library, all of which all save time.

Consultants can have

all the latest industry and product information at hand to communicate to their clients as quickly as possible, and build their business’s intellectual property with information relevant to their particular client base.

And suppliers can market their information in a targeted way while also receiving valuable interaction and feedback.

The Agworld software allows a farmer to have instant access to their own records, their agronomist or consultant, their reseller, and also provide an independent and extensive library of industry information.

Dairy News AUSTRALIA November 2011

34 // motoring

Triton range expanded Mitsubishi has unveiled its 2012 model year Triton utility line-up with the introduction of two new models; the 4x2 GLX-R Double Cab and the 4x4 GL-R Club Cab. The 2012 Triton offers a high powered turbo-diesel engine with class leading power, a range of safety features and the addition of numerous specification and styling upgrades to offer the most versatile and featurepacked Triton line-up yet.

The 4x2 GLX-R Double Cab is based on its 4x4 counterpart. With three-tonne towing capacity, auto airconditioning and USB port, the new model is perfect for customers who need a hardworking vehicle without four-wheel drive capabilities.

The second new model to join the Triton 2012 line-up, 4x4 GL-R Club Cab, is based on the model year 2012 GLX. The cabin features a leather steering wheel and gear shifter and the inclusion

of floor carpet to give a comfortable feel.

The Triton’s functionality and lines have been enhanced with the addition of a rear step bumper, side steps, stylish

front bumper, 16-inch alloys and a sports bar.

ABS with EBD is now standard on the GL model while the GLX now comes

with Active Stability and Traction Control.

Safety has been improved on the 4x2 GLX Double Cab Diesel with the

addition of Active Stability and Traction Control as standard. This model, along with the 4x2 GL-R Double Cab, gain a rear centre three point seat belt and head restraint plus centre arm rest with cup holder. The GL-R also gets an updated front bumper and grille to refresh the exterior.

The entry-level 4x4 Triton GLX Single Cab’s cabin has been upgraded to include sport seats with vinyl flooring, floor console with lid and driver’s seat height adjustment. Externally, the GLX gets 16-inch steel wheels and front fender flares while safety is improved through the inclusion of Active Stability and Traction Control as standard.

The next model up, the hard-working 4x4 GLX Club Cab, is now tougher than ever with towing capacity increased to three tonnes and the inclusion of ASTC as standard. The exterior also receives an update thanks to wider 16-inch steel wheels and tyres as well as front and rear fender flares.

Versatile Volkswagen Tiguan an agile performer

BMW cuts price tag on new models The all new BMW 1 Series is set to

shake-up the luxury compact market when it hits Australian shores this month, priced below the outgoing model yet boasting new features and a significant increase in standard specification.

Pricing for the new, secondgeneration 1 Series will start from $36,900 (excluding dealer charges, stamp duty, statutory charges and on-road charges) for the 116i model, offering Australian customers a 5% reduction in the entry price-point to the BMW badge.

The 116i, featuring an entirely new 1.6 litre four-cylinder turbocharged petrol engine, boasts the same power output of the previous entry model, the 118i, despite using 24% less fuel (5.7 litres/100km) than the comparable outgoing model.

The second petrol variant in the range, the new 118i, which also features a 1.6 litre four-cylinder turbo charged

petrol engine, is priced from $42,800 (excluding charges).

Completing the all new 1 Series lineup is the four-cylinder diesel 118d, priced from $43,500 (excluding charges).

Wide-ranging design modifications have enabled the punchy four-cylinder two-litre turbo-diesel engine in the new BMW 118d to build on its competitive advantage in the areas of output and fuel efficiency.

These enhancements represent the latest evolution of the BMW fourcylinder diesel engine, which earned the predecessor of the new BMW 118d the title of 2008 World Green Car of the Year.

The new BMW 1 Series is also the only car in its segment to offer an optional eight-speed automatic transmission with the Automatic Start/Stop function.

The engine is automatically shut down during stops and restarted when the brake is released.

The new Volkswagen Tiguan is here featuring new safety, comfort, design and state-of-the-art technology first seen on the second generation Touareg.

Four engines are available across the Tiguan range; three petrol engines and one diesel engine. Petrol engines include a twin charged 1.4-litre TSI with 118 kW, a 2.0-litre TSI with 132 kW and a 2.0-litre TSI with 155 kW. Despite the high power output, CO2 emissions have remained surprisingly low.

The diesel variant is impressive.

The 2.0-litre TDI engine provides 103 kW of power and achieves - for an SUV - the remarkably low combined fuel consumption figure of just 6.0 litres per 100 km for the manual model.

The Tiguan’s 1.4-litre TSI engine, powered by 118 kW will be available in two-wheel drive, attracting custom- with two-wheel drive incorporate Blueers who are looking for a stylish yet Motion Technology making them both economical city SUV in an affordable environmentally friendly and economical. package.

BlueMotion Technologies includes For customers wanting the added versatility and the option to venture Volkswagen’s impressive Start/Stop off the beaten track, the rest of the range (103TDI, Four engines are available 132TSI, 155TSI) feature across the Tiguan range; Volkswagen’s innovative 4MOTION all-wheel drive three petrol and one diesel. as standard.

The Tiguan 118TSI is matched with system, Brake Energy Recuperation a 6-speed manual transmission, while and the revolutionary Coasting Functhe 103TDI can be equipped with either tion (on 103TDI DSG only) offering a 6-speed manual or 7-speed DSG even further fuel saving technology and thus lowering emissions. transmission.

The Tiguan provides high passenThe Tiguan 132TSI is paired with both 6-speed manual and 7-speed DSG ger safety with daytime driving lights, transmissions, while the 155TSI Tiguan six airbags (front, front side and curis available with a 7-speed DSG trans- tain airbags), and safety optimised front head restraints as standard. The mission only.

Both the 103TDI and the 118TSI new Tiguan also features Volkswa-

gen’s advance technologies including Anti-lock Braking System (ABS), Auto Hold function, Brake Assist and Electronic Brake-pressure Distribution (EBD). Safe driving in the Tiguan is also accounted for with features such as Anti-Slip Regulation (ASR), Electronic Differential Lock (EDL), Electronic Stabilisation Program (ESP) and Engine Braking Control (EBC) as standard.

Naturally the latest Tiguan retains all the versatility and practicality for which the previous model was renowned, being a five-door, fiveseater. The rear seat is a 60:40 split bench that can be adjusted forwards and backwards by up to 16 cm and also reclined, while cargo capacity ranges from 395 to 1510 litres.

Prices range from $28,990 to $42,990, excluding dealer delivery and statutory charges.