Dairy News Australia April 2013

AXE FALLS: Fonterra cuts Australian brands PAGE 5

AUSSIE DEBUT Arctic Cat turns heads PAGE 33

FEED FOCUS

Growing grain at Cowra PAGE 20 april, 2013 Issue 35 // www.dairynewsaustralia.com.au

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Dairy NewS AUSTRALIA april 2013

news // 3

MG signs 10-year deal with Coles The McGrath family of western Victoria started a new dairy from scratch on a green field site.PG.24

Shepparton vet Rob Bonnano says increased pregnancy testing can lead to 3 months more milk from your herd.

PG.26

Murray Goulburn has signed a 10-year agreement to supply fresh milk to Coles for its private label.

Murray Goulburn CEO Gary Helou said the price paid by Coles under this unique agreement locks in a premium that will deliver additional profits to Devondale dairy farmers over the life of the contract.

The premium will not be affected by price fluctuations in international dairy markets or movements in the Australian currency and the contract contains rise and fall provisions to protect the premium farmers receive, he said.

The deal will begin from July, 2014 and Mr Helou confirmed it was worth $2 billion over the 10 years.

He said 100% of the profits from this agreement will be returned to its 2500 suppliers through higher farmgate returns.

Devondale will invest about $120

million in the construction of two new milk processing facilities in Melbourne and Sydney.

Helou said Devondale will actively seek to grow its milk supply to meet the demands of the extra 200 million litres required annually and will take on new farmers across existing and new supply zones.

“This includes growing a local milk supply in the Sydney region to support the Sydney processing plant,” he said.

The deal includes the NSWbased cooperative Norco, on a fiveyear deal, which will supply milk from northern NSW and southern Queensland. Norco has 161 suppliers.

The two cooperatives replace current house-brand suppliers Parmalat and Lion in these states.

Helou said MG can pay premiums to its suppliers while supplying milk to Coles for its $1/litre private

Gippsland farmer Campbell Champman has invested in a trailer sprayer to save time. PG.30

News ������������������������������������������������������3-13 Opinion ���������������������������������������������� 14-15 Agribusiness ������������������������������ 16-17 breeding management ������18-19 Management ������������������������������ 20-24 Animal Health ���������������������������25-27 technology �������������������������������� 28-29 Machinery & Products ��������������������������������������30-34

Cowra, NSW, farmers Neville and Rick Schofield aim to lift dairy feed self-sufficiency to around 90%.

Read more on page 20

label by “cutting out the middle man”.

“The daily pasteurised milk segment is currently mainly supplied by foreign owned companies that repatriate their profits to overseas shareholders,” Mr Helou said.

“The entry of Australia’s farmer owned cooperative into this market segment cuts out the middle man and delivers profits directly to farmers.”

Norco chief executive, Brett Kelly said: “This contract not only benefits our dairy farmers but also means consumers can now have greater confidence that there is a direct link from the farm to the supermarket shelf.”

MG will also relaunch Devondale-branded fresh milk, initially through an exclusive agreement with Coles, while Devondale cheese will return to Coles’ shelves.

“We are also very pleased that

Coles has agreed to again range Devondale-branded cheese products. This new ranging is expected to add significantly to the sales of Devondale cheese and further increase farmgate returns to dairy farmers,” Mr Helou said.

Coles merchandise director John Durkan said the supermarket had been talking with MG and Norco for up to 18 months. He said the deal offered sustainability and security for dairy farmers.

Prices paid to farmers would be transparent as both MG and Norco publish farmgate prices, he said.

United Dairyfarmers of Victoria president Kerry Callow said “dealing direct locks in a premium for our milk that dairy farmers desperately need”.

“It’s also great to hear Coles has agreed to re-stock its shelves with Devondale-branded fresh milk and cheeses, after a nine-year absence.”

Dairy News AUSTRALIA april 2013

4 // news

Murray Goulburn sets sights on Woolworths ness,” he said. ‘‘Coles is the first customer. We’re managing director Gary hoping Woolworths and Helou believes the co-op others will join. will conduct “business as ‘‘It’s one customer usual” with Woolworths, despite striking a deal with today. Hopefully, we will have two or three or four its fierce rival, Coles. when we start.”

MG has signed a 10-year deal with Coles to supply milk for its priMurray Goulburn vate label in Victohas not ruled out ria and NSW. Coles will also stock the supplying Coles in new Devondale other states. range of fresh milk, and add Devondale When asked whether cheese to its shelves for the first time in nine years. Murray Goulburn would look to supply Coles in Woolworths stocks other states, the co-op Devondale cheese and said there were no current UHT milk and Mr Helou plans but it wouldn’t rule said he expected business out the option. as usual. He said WoolMr Helou said MG worths was “as happy as they could be” when hear- would be “actively” seeking new suppliers to help ing of the new Coles deal. meet demand.

Mr Helou said MG He said MG would would approach Woolworths with a similar offer. have to be more flexible in its payment options in “We’re open for busiMurray Goulburn

NSW, where farmers currently supply “flat’’ milk, a similar amount of milk each month of the year inline with domestic consumer requirements. This comes at a higher cost.

“Obviously the NSW dairy landscape is very different to what we have got here in the south,’’ he said.

“Obviously we have to be a bit more flexible in our payment options in NSW, this is something that is well understood by us and by the supermarkets and in this case Coles will be flexible to allow and fund some of these differentials.’’

MG has signed the private milk contract at the expense of Lion. The company released a statement saying it was disap-

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pointed to have lost private label, white milk contracts with Coles in Victoria, NSW and southeast Queensland, while

retaining Tasmania and far north Queensland.

“We will continue to manage our dairy and drinks business strate-

gically and work through the implications of this change,” the statement said.

The company warned that history showed changes in contracts could cause significant disruption for farmers, particularly in northern markets where supply exceeded demand, although it would work through the changes with its suppliers in the coming months.

Ian Zandstra, the chairman of the Dairy Farmers Milk Cooperative, which supplies Lion, told ABC radio farmers currently produce 700 million litres for Lion but that could change.

“(We have) a year to think it over, whether we supply MG. A year to think things over and bed things down.”

The Australian Dairy Farmers welcomed the announcement, including the relaunch of Devondale branded fresh milk and the investment of $120 million in two processing plants in Melbourne and Sydney.

“The most important thing here is the reassurance by Murray Goulburn that the farmers supplying these contracts will see an increased farm gate return from July 2014,” ADF president Noel Campbell said.

“We will continue to monitor farm gate returns for farmers supplying fresh milk contracts. It is sincerely hoped that this arrangement, and others like these, flow through as expected to farmers’ bottom line.”

Norco restructure paved way for Coles deal A decision last November to reacquire the Norco Milk sales, marketing and distribution business from Fonterra has enabled the northern NSW cooperative to sign a five-year supply deal with Coles.

The Lismore-based Norco Co-operative, which has 160 suppliers, will supply milk to Coles for its private label brand.

Before the deal to reacquire its rights from Fonterra, Norco chairman Greg

McNamara said it was contractually Coles customers and we believe that pleased to be working with a farmerbound not to deal directly with retailers. the contract will be beneficial for our owned cooperative, which reflects its streamlined channel to market “The securing of this contract dairy farmers. strategy of dealing directly to supply Coles brand “A deal with Fonterra last year with farmer-owned dairy milk is a reflection of businesses. the opportunities which enabled Norco to sign a 5-year The new contracts will are available to Norco contract with Coles.” see Norco invest significantly given that it is no longer “This contract further strengthens in existing and new processing restricted in dealing directly with the to create modern Norco and supports the ongoing facilities retail channel,” Mr McNamara said. and highly efficient production “We are delighted to be able sustainability of our farm base.”

Mr McNamara said Coles was plants. to provide this volume of milk to

Greg McNamara

Dairy NewS AUSTRALIA april 2013

news // 5

Fonterra slashes Australian brands Sudesh Kissun

Fonterra

is revamping its struggling Australian business, slashing the number of brands to rein in losses and hinting at more factory closures.

The number of brands will be cut from 21 to five.

For six months ending January 31, 2013, Fonterra’s ANZ business earned $98 million, 32% less than the previous year’s $145m. The ANZ business unit’s revenue was down 10%; earnings from the Australian business consumer down 31%. The ANZ business includes brands in Australia and New Zealand.

Fonterra chairman John Wilson said Fonterra shareholders (NZ farmers) would be concerned the Australian business is losing money, but is confident a management plan now under way

can return the Australian operations to profit.

Despite the poor performance, Mr Wilson said Australia was a “home market” and there were no plans to withdraw.

“We’re there to stay in Australia. The board is confident in the management’s plan to rationalise the business.”

Fonterra has eight processing plants in Australia; it is closing a 100-year-old plant in Cororooke, Victoria.

Fonterra chief executive Theo Spierings said at the end of the revamp the co-op’s assets in Australia would look different.

“We will continue to rationalise our Australian operations and there’s more to come.”

The co-op will also use milk collected in Australia for value-added products at the expense of commodity

products.

Mr Spierings said the Australian business was facing pressure on both ends of the supply chains.

Although a virtual monopoly at home, Fonterra is fighting Murray Goulburn and other processors for milk at the farmgate.

“We have a large number of brands and we’re rationalising [them]. We want less brands and more focus on advertising and promotion and innovation.”

Fonterra’s food service business is said to be performing well and a network of chefs is expected to grow operations.

“Our food service is strong business and we’re investing in that. We’re rationalising the underperforming businesses and stepping up pace in the business doing well.”

Fonterra chairman John Wilson and CEO Theo Spierings.

Direct contracts should Woolworths wants direct supply concern all farmers $1 milk but we think they also recognise seven farmers from the Manning Valley that farmer deserve a fair price for what in New South Wales are embarking on a we produce. We are looking forward to putting a great new product on Wooltrial of direct supply.

The farmers lodged a collective bar- worths’ shelves that is fresh, locally progaining notification with the Australian duced and tastes great.

“It is to Woolworths’ credit that they Competition and Consumer Commission (ACCC) last month to allow them have embraced this idea and are committo collectively bargain with Wool- ted to making it work in partnership with worths and are waiting for an answer. dairy farmers in the Manning Valley.”

Woolworths general manager of fresh It is expected to be approved.

The trial to supply milk directly food, Pat McEntee, said the trial could to the retailer would be an Australian be a model that would enhance the long supermarket first, Woolworths said. term sustainability of the dairy sector.

“This trial will not be the silver bullet Woolworths wants to stock milk sourced directly from the Manning to fix all the problems but we think it Valley farmers in stores in NSW by could herald a new way of delivering the middle of the year. Under the better returns to farmers and a more trial, the milk will be marketed under efficient supply chain,” Mr McEntee a new brand that will be jointly devel- said.

“Over the last couple of years, our oped by the farmers and Woolworths.

Manning Valley dairy farmer, Tim Bale, customers have expressed their concern believes the trial has the potential to about dairy farmers’ long term future provide a much better deal for farmers in this country. We have also taken on board the industry’s concerns about in the Manning Valley.

“Our aim is also to secure longer the negativity that has been attached to term contracts which will give us their commodity and we have looked for the confidence to invest in our busi- opportunities to improve this. nesses for a sustainable future. “Australia has one of the lowest “There’s no doubt that consumers like levels of dairy consumption among

Woolworths and a group of

Queensland Dairyfarmers Organisation president Brian

management conditions Tessmann has said the partnership that may be between Woolworths and seven Man- used to gain retailer ning Valley farmers to directly supply the milk should interest and concern an advantage in the market every dairy farmer in Australia.

“It has prompted many to ask place.

“These is this the way forward or a further descent into the mire,” Tessmann conditions Brian Tessmann may have the said.

Tessmann said the decision could consequence have ramifications across the whole of significantly raising the on farm production costs and may set supply chain. standards “I imagine that soon that to attract The decision could have after could be farmers to ramifications across the forced on all sign Wooldairy farmers worths would supply chain. for them and need to offer a milk price that was higher than the their processor to stay competitive in the market.” rest of the market,” he said.

Tessmann said the decision could “Even so, any farmers signing a contract would need to consider also have ramifications on the rest of what other supply conditions might the liquid milk market and the farm be imposed on this milk supply gate prices for other farmers who such as quality assurance or farm could not get a supermarket contract.

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Pat McEntee

developed economies and we see great opportunities to work with farmers and processors to grow demand, promote innovation and ensure the industry has a bright future.”

Immunity for collective bargaining through the ACCC notification process is required before commercial negotiations with the Manning Valley farmers can commence. This will cover aspects of pricing, supply arrangements and contract periods and terms.

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Dairy News AUSTRALIA april 2013

8 // news

Quality hay available at a price rick bayne

Dairy farmers across Australia are dipping into their hay and silage reserves and paying more to purchase top up supplies.

Prolonged dry conditions since last October have had significant impacts on yields, with increased demand for purchased hay and limited supplies now hitting farmers’ pockets.

While prices in some areas have increased by more than $100 per tonne on 2012 levels, the quality of hay generally remains high.

Industry development manager for the Australian Fodder Industry Association Ltd, Caitlin Scholfield, said while farmers were paying more, they were receiving higher quality hay.

An analysis of recent prices compared to 2012 shows “definite increases” in all key dairy areas, Scholfield said.

“Yields are down because it was so dry during the curing time but 2012 was still an excellent year for quality hay,” she added.

Dairy farmers are paying more across the country with lucerne prices topping $300 in the Darling Downs, Gippsland and north coast NSW. Fodder supplies are a concern for south east South Australia, south-west Victoria, Tasmania and particularly Gippsland.

“All key dairying areas are increasing demand for all fodder types which will lead to more pressure on prices,” Scholfield said.

“High quality stocks are being

Farmers are dipping into their hay and silage reserves. While farmers are paying more for replacement hay, they are receiving higher quality.

snapped up and farmers should source what they need as soon as possible.

Supply will become more restricted as we enter into winter.

“It will probably be into spring before prices come back.”

Lucerne supplies are holding but cereal supplies are low with demand remaining strong due to its high quality.

“We are urging farmers to ensure

they get feed tests on their hay to take advantage of the good quality out there,” Scholfield added. “It might be better to pay more for better quality further afield than look locally for lowergrade quality.”

Australian Crop Forecasters general manager Ron Storey said local wheat prices had dropped from about $300 to $250 in recent weeks after a USDA

grain stocks report revealed higher than expected corn stocks.

Predictions of average weather in the US spring leading to good growing conditions are likely to maintain pressures on prices, he said.

Australian grain supplies remain reasonably sound and Storey said that was expected to continue. About 90% of the 2012-13 crop has been sold.

Storey said Bureau of Meteorology forecasts predict below average chances of average rain for south-east Australia.

“We could well see the domestic market tightening. With the recent drop in prices, dairy farmers should make an assessment as to whether current levels are viable,” he said.

“If they wait and see there is risk involved.”

Cull cow prices continue to slide rick bayne

Cull cow prices continue to slide, with lighter cows suffering the biggest drop in value.

National Livestock Reporting Service figures show volumes have decreased slightly while average prices have fallen by as much as 24%.

Year to date sales

volume have fallen 6% to 45,260 to the end of March while the average price is down 15%. March prices were down 24% on last year at 293 c/kg.

Elders dairy specialist

Bernie Teasdale said heavy cull cows were continuing to attract decent prices but lighter cows were struggling.

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of cattle from northern bringing up to $1.25 per kilo. Lighter cows not car- Australia that had been previously intended for rying a lot of condition were getting 88c to $1.05,” Indonesia had put pressure on prices. he said.

He predicted prices “The lesser the weight, should pick up slightly the lower the price.”

Teasdale said that prices were not as Heavy cull cows strong as this time last continue to attract year. “It’s a supply and decent prices but demand thing.”

Tim Gibson from lighter cows are Charles Stewart in struggling.

Colac described the cull cow market as depending on demand and “very ordinary”. weather. “If we get good “It has picked up a bit in the past week but some rain things should pick up.” of the prices have been The Bureau of Meteterribly low,” Gibson said. orology is forecasting a Buyers in the region drier than normal season have been spending $1.12for southern Victoria, Tas$1.15 for top Friesians but mania and south-east this time last year they South Australia, with prewere paying $1.36-$1.40. dictions of average rainfall Light weight cows have been hardest hit with for northern Victoria and Western Australia. prices pegged at 65-85 The replacement cow cents, well below last market has rebounded year’s $1-$1.10. slightly but is restricted by Gibson said an influx

farmer buying power.

“There are still a lot looking and wanting to buy but cash is pretty tight,” Teasdale said.

Will Crozier from VicStock Global said that heifer exports to China were “pretty slow” but still happening.

He said he didn’t expect Australia’s new agreement for regular diplomatic meetings with China would impact on the current system.

“The market is still there and we’re looking at another couple of avenues into China and Indonesia. We have enjoyed good access into China for quite a while and can’t see that changing, though there might be more competition,” Crozier said.

“We expect more orders to come through soon but they won’t be at the extremely high rates of last year.”

Dairy NewS AUSTRALIA april 2013

news // 9

Flood recovery continues in northern NSW, Queensland An experienced

flood recovery facilitator is working with northern NSW dairy farmers to help re-establish their businesses.

Dairy Australia has appointed Neil Phillips to help flood-hit farmers with their immediate needs and to direct them to services and resources available to help with recovery.

“I will also try to identify ongoing requirements for recovery and share that information throughout the industry,” Mr Phillips said.

He undertook a similar task with the farmers of northern Victoria and the Riverina, helping them recover from floods in early 2012.

“Dairy Australia appointed me to a crossagency task force, and experience from those floods showed that joint

efforts best-served the flood-affected farmers of that region.

“Learning from that experience, I’ll be working with the NSW Department of Primary Industries, milk companies and other agencies to ensure farmers are supported in the most effective way.

“Part of my work will be collecting information on the extent of damage and loss from each property. I will be visiting as many flood-affected farmers as I can. Farmers can be assured of the confidentiality of any discussions.”

His appointment follows a flood recovery meeting organised and funded by Dairy Australia and NSW DPI at Wauchope last month.

The aftermath has been much more varied this time around. For some, it’s business as usual and the

rain broke a very dry start to the summer.

The Queensland Farmers Federation said the impact of the recent floods ranged from mod-

erate to very severe for Queensland farmers.

About half of Queensland’s dairy farmers were affected by the floods.

The impact has ranged from moderate to very severe – even worse than the major floods of two years ago.

There were cases

of farmers isolated for almost a week and that combined with power outages caused real challenges milking cows.

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One of the world’s biggest dairy companies has broken ground on a site for a factory in the Southern Hemisphere.

Inner Mongolia Yili Industrial Group has begun building a A$175m milk processing plant in South Canterbury, New Zealand.

Yili plans to construct a milk processing plant to produce base powder using various local suppliers.

The base powder will be exported to China and used in the production of infant milk formula.

Some farmers in the area have reservations about the competition for Fonterra.

“There are pluses and minuses,” Fonterra-supplier Robert Smith said.

He won’t be switching supply from his current 2000 cows to Yili, but if he were to develop another property to dairy he’d consider if for the new milk.

“You’d have to look at it very seriously because of the capital involved in supplying Fonterra.”

His reservation is whether New Zealand dairying as a whole should be diluting Fonterra’s strength, not to mention Fonterra’s obligation to supply start-up competitors with 50mL of raw milk/year for their first three years.

It is understood the plan is for a 10t/hour, 19m kgMS/ year dryer initially, with expansion to 30t/hour capacity if the milk becomes available.

Fonterra’s high share price will make supplying Yili an attractive option for conversions and/or farmers looking to release capital.

Paul Park, managing director of Oceania Dairy, said he understood Yili’s plan is for a slightly bigger factory than the one Oceania outlined in obtaining resource consents for the site, but as it will be capable of producing infant formula, with imported ingredients added to the milk, the intake and waste output will likely be similar.

out as the tankers could not get to some farms.

Mastitis and herd health has also been an ongoing issue, the QFF said.

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Dairy News AUSTRALIA april 2013

10 // news

Pasture key to profitable offpeak production

Drought in New Zealand has influenced the rise in global dairy prices. Photo: Trish Hart.

Dairy Australia commissioned the necessarily mean intensive feeding, says a report in response to significant interest from Victorian dairy farmers and key new study from Dairy Australia.

An analysis of Victorian dairy industry industry stakeholders around the impact trends from 2006 to 2012 shows there has of changes to milk supply patterns and been a clear shift towards off-peak milk their impact on farm profitability and risk.

The milk supply trends analysis focused production over the past six years.

Many Victorian farms have increased on participants in the Victorian Dairy off-peak production through adopting an Industry Farm Monitor Project from 2006 to 2012. The intensive feeding impacts on cost system, yet a sig- “There was no of production and nificant number significant correlation farm profit marhave increased offgins across a range peak production by between operating of milk supply patmaintaining higher cost and off-peak milk terns from seasonal than 50% grazed production.” to all year-round pasture. were analysed.

Dairy AustraOther key findings from the analysis lia’s farm business management program manager, Gavin McClay, said the analysis included: • In 2006/07, 50% of farms in the sample explored the relationships between operating costs and operating margin and the produced off-peak milk (more than 40% of their milk supply from February to July). level of off-peak milk produced.

“There was no significant correlation This increased to 76% of farms in 2009/10 between operating cost and off-peak milk and has remained stable since then.

•Increasing off-peak milk production production, nor was there correlation between operating margin and off-peak does not guarantee a flat milk supply curve, but there is a correlation between off-peak milk production,” he said.

“The key driver for profit across farms milk and increased plant utilisation •There has been a significant shift by with ranging milk supply patterns was the medium to large farms from a seasonal percentage of directly grazed pasture.”

The report highlighted that farm oper- supply pattern towards a flatter milk ating cost falls and operating margins supply curve • Farms producing less than increase as the proportion of grazed pas120,000kg/MS face potential challenges ture increases, Mr McClay said.

“Farms with more than 55% directly of higher cost of capital, higher labour and grazed pasture were more profitable and overhead costs and attract a lower milk resilient through the last six years, farms price • Milk pricing systems driving increased with high feed inputs, lower levels of direct grazed pasture and flat milk supply pat- off-peak percentage and higher plant utilterns have the greatest amount of risk. The isation but with a ‘stepped’ structure can study showed that a range of systems can reduce the flexibility of farmers to respond be profitable but farmers need to be aware appropriately to seasonal conditions Dairy Australia plans to undertake simthat these different systems have very different risk profiles which need to be con- ilar milk supply trends analyses in New South Wales and Queensland. sidered for their situation.”

Off-peak milk production doesn’t

Global dairy prices keep rising Global dairy prices continue

to rise, as the first Global Dairy Trade auction of the month saw the average product price increased 14.2% compared to the last sale on March 19.

This is the eighth consecutive increase in the auction’s average price.

The butter price did decline 2.7% from two weeks ago, butter milk powder increased 0.8%, rennet casein was 4.4% higher, cheddar cheese increased 6.6%, anhydrous milk fat was 6.7% higher, the whole milk powder price was up 7% and skim milk powder jumped 27.8% from the last auction.

The average winning price is now the highest ever for the platform which began in July of 2008.

Since the sale on January 16, the average product price has increased 45%. Whole milk powder is up 55%.

Volume on the sale has been

declining, 13,912 metric tonnes were sold in the latest sale - the smallest amount since May of 2011.

The drought has prompted Fonterra to reduce its New Zealand milk production estimate for the year to “even” with last year.

Production was running 6% ahead of year-ago levels for the first half of the year which ended in January. Estimates put the second half at 15-20% below last year.

In a recent letter to suppliers, Murray Goulburn managing director Gary Helou said for dairy products continues to strengthen, with a 5.7% increase in trade volume, particularly concentrated on Asian markets.

“Prices have been depressed due to a high Australian dollar and strong milk supply in FY12 from New Zealand and other key exporters,” Mr Helou said.

“This strong supply has taken

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“However all key exporters have seen slower milk supply growth and the very dry conditions in New Zealand, Australia and the USA have seen market sentiment shift and dairy prices begin to rise significantly during the last six months.”

Mr Helou said the recent GDT results provided further evidence of strong demand and tightening supply.

“It provides MG with another data point for optimism of improved pricing for 2013/14,” he said in the letter.

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Dairy NewS AUSTRALIA april 2013

news // 11

Finish Japan FTA first The National

Farmers Federation wants the free trade agreement between Australia and Japan finalised before Japan signs on to the Trans Pacific Partnership (TPP).

The TPP is a multilateral Free Trade Agreement currently under negotiation between countries including: Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam.

Jock Laurie, the outgoing president of the NFF, said the free trade agreement (FTA) should be finalised as it would provide security for Australian farmers.

“Japan is a very important market for Australian agriculture,” Mr Laurie said. “We

currently export 12% of our agricultural produce, including beef, sugar, dairy and grains to Japan, which is why the completion of the Japan-Australia free trade agreement (FTA) is so critical.

“Negotiations around this FTA have been ongoing since 2007, and with Japan now announcing its intention to join the TPP, our concern is that the FTA talks could be put on the backburner.

“Ultimately, what we would like to see is a completed Japan-Australia FTA that improves the current arrangements and increases commercial trade between the two countries, prior to Japan shifting its focus to the TPP.” Mr Laurie said Japan joining the TPP was a positive step, as long as

progress made to date was not lost.

“The TPP represents a great opportunity for Australian agricultural trade, but it is also complex, given it involves 11 countries trying to agree on outcomes,” he said.

Australian Dairy Industry Council (ADIC) chairman,

Noel Campbell, cautiously welcomed news that Japan would join ongoing TransPacific Partnership (TPP) trade talks, saying it could be a promising outcome for the Australian dairy industry.

As the third largest economy in the world and a major dairy importer,

Japan is an important market for the Australia dairy industry, Mr Campbell said.

“Japan is the single most important export market for Australia, accounting for 19% of dairy exports by value over $500 million, so its value is obvious,” he said.

The ADIC hopes the inclusion of Japan as part of the TPP will see it consider the advantages of liberalising its market access scheme and existing quota system.

Mr Campbell noted the dairy industry was interested in knowing more about Japanese

Prime Minister Shinzo Abe’s suggestions that the dairy industry would receive special consideration.

Mr Campbell said the Australian dairy industry’s priority remains its ongoing Free Trade Agreement negotiations with Japan, China, Korea and India.

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Weather extremes of floods and hot dry conditions have taken their toll on Australia’s milk season, with production taking a turn for the worse in recent months.

Rabobank senior dairy analyst Michael Harvey told the Tasmanian Dairy Industry Conference last month that national dairy production was down 5.5% year-on-year in January, 2013 as flooding impacted Australia’s northern dairy regions and hot dry conditions hampered output in the southern export regions.

And looking ahead as the season winds down, milk volumes are likely to come under further pressure unless weather conditions improve, with dairy farmers in need of a strong early autumn break.

“We expect Australian milk production to come in just 0.7% above prior-year levels for the first half 2013,” he said.

“And while production is down, export demand has been up – from July to December 2012, Australian dairy exports were running 9.5% higher than year-ago levels.

“With most export supply now sold, trading activity will be quiet until the new selling season.”

Mr Harvey said the global market tightened considerably in mid-March and looks set to remain tight through the next six months.

“As was anticipated, the back end of the southern hemisphere season has been poor, exacerbated by extreme weather in several regions, including Australia and particularly New Zealand, which has been impacted by drought.

“March saw the upward phase of global dairy prices enter its ninth month and finally gain momentum.” Rabobank expects ongoing contraction of dairy supply in key surplus regions and incremental demand for production in import regions should prove enough to keep the international market tight through the second quarter of 2013, despite the “lacklustre” global economic outlook.

Dairy News AUSTRALIA april 2013

12 // News: world

EU farmers rally for higher prices EUROPEAN DAIRY

farmers are taking to the streets demanding higher farmgate prices.

Farmers in convoy on tractors last week converged on Germany, protesting outside an Upper Bavarian hotel where German federal and regional agriculture ministers were meeting.

German dairy farmers are angered by the release, in January, of findings by a 2011 study by the European Milk Board (EMB) and the MEG Milch Board showing a stark divide between real production costs and the price paid for milk: the average cost is 76c/kg, they are paid 50c/kg.

The EMB says the report was long overdue.

“It’s a reliable ongoing calculation of production costs in the dairy sector; one that takes into account the working hours of the farm managers and their family members, differentiated by region, but at the same time produces figures comparable across the EU.” It says the report’s key findings should help achieve costcovering milk prices.

For the EMB it is essential that policy-makers use these figures and set

up an EU-wide monitoring agency. “The agency would take the calculated costs as the basis for working out a fair milk price.

And this can actually be achieved through flexible adjustments of volumes to the market.

“It is only with these basic conditions that the situation of producers in the value chain can really be improved.”

Milk producers say the German government is taking the lead in preventing flexible regulation of milk supply from being implemented at EU level, which EMB claims is “threatening the future of economically sustainable milk production”.

Across Europe, including in the UK, excess supply of milk has been contributing to falling milk prices in recent years.

EMB says flexible supply control is needed to stop dairy farmers going out of business. It will also ensure the market brings about a milk price that is fair for consumers and producers, the board adds.

The protesting farmers called on the German government to stop blocking negotiations on EU milk policy.

William Taylor, Fair-

ness for Farmers in Europe (FFE), says the German government, with its influence in Brussels in the EU Council is the main objector to EMB’s demands for flexible supply control after the removal of milk quotas.

“This protest is an opportunity for the EMB to pool all the main farm organisations together to make the point when German agricultural ministers convene at this meeting.”

The EMB represents 19 milk producers’ organisations from 14 European countries and about 100,000 dairy farmers.

About 75% of the milk volume in Europe is produced in its member states.

This milk protest in Brussels was held to highlight dissatisfaction with milk prices.

‘Buy more British products’ THE DAIRY Coalition, a UK farmer and consumer lobby set up to push for higher farmgate prices, is pushing for use of more British dairy products.

The group has told dairy buyers, processors, retailers and the food service sector they must commit to British farmers to deliver better market returns and to secure a sustainable supply of milk.

The coalition (NFU, NFU Cymru, NFU Scotland, FFA, TFA, WFU and the RABDF) met in Stoneleigh recently to discuss dairy market issues and strategy. Challenges of poor weather, infertility and feed short-

ages prevent farmers from responding to demands for more milk unless they are paid a proper price, it said.

NFU dairy board chairman, Mansel Raymond, says a recent Fonterra auction resulted in marked price rises in cheese, butter and milk powders; all products were up 14% on the last auction.

This clearly demonstrates that globally, demand is strong and supplies are tight, he says. “Yet we’re still hearing that crippling deals being done in the domestic cheese and liquid markets are putting milk prices under pressure.”

The average UK farmgate milk price for January was 53c/L. For UK dairy production to have a sustainable future, the only way these prices can possibly go is up, he says.

Farmers For Action chairman, David Handley, says he’s hugely frustrated by the apparent lack of traction in the UK market.

“We know our milk is valuable and in short supply; we know our consumer, the British public, want to support British dairy, so why are we still failing to realise a sustainable price? We need action by milk buyers now.”

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Dairy NewS AUSTRALIA april 2013

world // 13

US anti-NZ dairy stance AMERICAN DAIRY producers and processors will be harmed by giving “monopolistic” Fonterra and New Zealand access to the US through the proposed Trans-Pacific Partnership (TPP) free trade agreement.

That message was delivered to key members of the US Senate and Congress in a letter from a coalition of 11 farmer organisations.

At the same time, the powerful International Brotherhood of Teamsters union says New Zealand Prime Minister John Key’s comment that he will not accept any trade deal if it didn’t include agriculture is a threat to the U.S. Calling for supporters to sign a petition against allowing agriculture in the TPP, the union says that by agriculture Key means dairy farms, “which enjoy all sorts of government protection”.

“We’re taking Key’s comment as a signal that New Zealand’s dairy industry intends to dump milk, cheese and butter on the US market as soon as the

processed. ink is dry on USA dairy farmers want to keep NZ product out of their supermarkets.

“New the TPP.” market access The letter for New Zeafrom the 11 land’s monoprural organolistic dairy isations represector would senting dairy be especially farmers and damaging to dairy industry US dairy farmworkers says Fonterra’s market presence has the ers and those who produce and process potential to seriously damage American nonfat dry milk, butterfat or cheese,” livelihoods. The letter writers say “the the letter says. “It is critical that Confuture of the country’s 60,000 dairy gress provide clear direction and oversight regarding expectations for US farmers is at stake.”

The TPP has the potential to become negotiators in order to avoid serious the biggest trade deal in history, involv- disruptions to agricultural sector liveing Brunei, Chile, New Zealand, Sin- lihoods.

“The surest and simplest way for gapore, Australia, Canada, Malaysia, Mexico, Peru, the United States and Congress to achieve this outcome, the Vietnam. Also interested are Japan, the letter says, is by writing safeguards directly into whatever trade policyPhilippines and Thailand.

The letter says the trade deal could making authority it decides to grant have tremendous impact on where and the executive.”

Teamster’s president James Hoffa how dairy products are produced and

says it is especially imporCitizens Trade Cam tant that Congress reviews paign • Family F arm Defenders • F Federation of Sout ood & Water Watch hern Cooperative

the impact of the TPP s/Land Assistance International Brot Fund herhood of Teamst Institute for Agric ers

ulture and Trade P National Dairy Pro olicy • League of R on the US dairy industry ducers Organizati ural Voters on • National Fam National Farmers ily Farm Coalitio Union • Rural Co n

because the deal has been alition/Coalición Rural

The Honorable M ax Baucus negotiated in complete Committee on Fin ance United States Senate

secrecy.

219 Dirksen Sena te Office Building Washington, DC 205 10

To make sure the US March 4, 2013

dairy industry won’t be Dear Chairman B aucus:

“decimated” by the TPP, As the Administra tion continues negot iating new standa the Asia‐Pacific reg rd‐setting trade p ion and beyond, w acts for e ask that any trad granted to the ex the letter urges Congress e policymaking au ecutive branch inc thority lude measures sp the interests of A ecifically designe merica’s dairy far d to advance mers, farm worke

rs, processors an to adopt new trade polid consumers.

The pending Trans‐P acific Partnership (T tremendous impact PP) Free Trade A s on where and ho greement could ha cymaking procedures. w dairy products a ve We are concerned re produced and about market acc proc ess offers, sanitary and other provisio and phytosanitary st essed. ns of the TPP — a andards nd their relation to u Farm Bill. New m “Congress must arket access for N ncertainty regard ew Zealand’s mon ing the especially damag opolistic dairy se ing to U.S. dairy fa ctor would be rmers and those nonfat dry milk, b who produce and utterfat or cheese make sure this trade process .

The U.S. dairy ind ustry generates $ deal doesn’t open the 140 billion in eco estimated 900,000 nomic activity an wor d employs an nation simply canno kers, while providing nourishmen t to millions more. T t afford to compe te with dairy imp he conditions. It is cr door to unfair competiorts itical that Congre ss provide clear dire produced under unfair regarding expect ations for U.S. neg ction and oversigh otiators in order to a t agricultural secto void serious disrupti r livelihoods. tion,” said Rome Aloise, ons to

The surest and sim plest way for Con international vice presgress to achieve this safeguards direct ly into whatever t outcome is by wr iting rade policymakin the executive. Ra g authority it dec ther than reinstati ides to g ng the Nixon‐era “ recent iterations of “ ident for the TeamFast Track,” or its mo rant Trade Promotion re‐ Authority,” Congres policymaking proced s should create ne ures that: w trade sters and head of the • Require that, pri or to continuing n egotiations, the O Representative p ffice of the U.S. Tra ublish all negotiatin de g texts, consult wi jurisdiction and in union’s dairy conferth all committees o terested stakehol f ders and provide a thorough and p ublic ence, which represents 30,000 dairy workers through- The letter outlining the anti-NZ stance. out the supply chain.

Indian growth benefits NZ sudesh kissun

BANKER SUBHAS

DeGamia has seen dairy shelves in Indian supermarkets undergoing big change.

Mr DeGamia, who five years ago moved to Mumbai as ANZ’s chief executive, says the range of flavoured yoghurts, speciality cheeses and processed milk is rapidly expanding. And India’s increasing middle class wants more speciality dairy products.

Mr DeGamia, in Auckland last week for a NZTE and India-New Zealand Business Council seminar, says Fonterra is well placed to take advantage.

“My observations from a demand perspective are that there are opportunities for a high quality processor like Fonterra,” he says.

While New Zealand may be a small country facing the “tyranny of distance” from India, there are traditional linkages and the clean green reputation that works in our favour, he says.

Most Indians know about New Zealand through cricketing and Commonwealth ties.

“Their perception of New Zealand is clean, green and pristine. Dairy prod-

ucts from New Zealand are considered high quality and safe. So, the demand… is there and people are willing to pay a premium for high quality and safe products.”

Indian consumers’ appetites for quality New Zealand food is not confined to dairy. NZ kiwifruit is sold in many parts of India and wine exports are growing. Lamb exports to India are also on the agenda.

Mr DeGamia sees three opportunities in India for New Zealand businesses: First, India is tipped to become the world’s most populous nation by 2030 and to become a net importer of most farm commodities.

Second, demand for value-added products will remain strong. Mr DeGamia points out in the past 50 years about 200 million people moved into urban areas of India.

About 250m more will move into cities over the next 20 years. “We have the same number of people moving into urban areas in half the time.

This urbanisation creates opportunities. As disposable incomes move up, so does demand.”

Third, the supply of food will need to be backed by better technology and infrastructure

Subhas DeGamia

between the farmgate and consumers.

The Indian and New Zealand governments are working on a free trade

in a number of areas, but within years. deal. While Mr DeGamia progress overall remains But even after eight opts not to comment on mixed”. the status of “My observations from a demand High tariff FTA talks, he perspective are that there are and regulatory says any bilatbarriers and eral agreement opportunities for a high quality concerns by will benefit processor like Fonterra.”

Indian farmers both countries. about opening the dairy rounds of negotiations a Two-way trade six sector to big producers trade deal remains eluyears ago was $200 milremain stumbling blocks. sive. MFAT said after the lion; this grew to $1.2 bilFonterra, developlion last year. Mr DeGamia eighth round of talks in ing milk pools outside New Delhi last year that believes an FTA will “useful progress was made New Zealand to meet a enable trade to double

growing global demand for dairy, has India in its sights. Last November it announced the appointment of its first India staff and the opening of the Delhi office.

It says India has a complex dairy market and “must have dedicated leadership on the ground to further strengthen relationships and develop opportunities”.

Dairy News AUSTRALIA april 2013

14 // opinion OPINION Ruminating

EDITORIAL

Dairy giant on the march

milking it...

No more red tape!

The most powerful player in Australian dairy, Murray Goulburn chief Gary Helou, and the Australian Dairy Farmers president, Noel Campbell, are at odds on a proposed mandatory code of conduct for supermarkets.

The ADF and the National Farmers Federation have both called for the Federal Government to introduce a mandatory code of conduct for the supermarket industry aimed at preventing misuse of market power.

Campbell came out last month and called for the Government to finalise a mandatory code for the major retailers. He said he wanted a regulatory framework that balances out the “excessive” market power of the supermarkets.

However, when quizzed on Murray Goulburn’s support for a code of conduct this month, Helou said he was an advocate for less regulation and less bureaucracy.

When pressed again on whether MG would sign up to a proposed code of conduct, he responded with a smile and: “Wait and see.”

Spotlight fades

Poor old Woolworths held the spotlight for exactly two weeks there before Coles pushed them to the side of the stage again.

Woolworths chose the Sydney Royal Easter Show to announce a trial to give dairy farmers a better deal and customers a range of new milk products.

Direct from the dairy sheds, Woolworths said it would offer a group of seven farmers from the Manning Valley in New South Wales a direct commercial agreement.

The supermarket soaked up the publicity for two weeks, until its bitter rival Coles stole the headlines with its audacious 10year deal with two farmer co-ops, Murray Goulburn and Norco.

Under the arrangement, the suppliers of Murray Goulburn and Norco will be paid a premium to supply Coles’ own-brand milk in Victoria, New South Wales and south-east Queensland.

That’s the sort of news that puts a seven-farmer deal in the shade. Back to the drawing board, Woolies.

Take two

There was plenty of fallout after Murray Goulburn’s Dev n’ Dale ads, featuring every stereotype of a farmer you could pack into a 30 second commercial.

So it was interesting to see ads launched last month for the company’s new Fast Start breakfast drink.

No farmers this time, but humour has again been deployed, focussing on the aftermath of drinking soy products by mistake.

Murray Goulburn has deliberately targeted its opponents in the liquid breakfast market that use soy, highlighting that dairy products taste better. This advertising strategy is also in favour in the US, with the “got milk” campaign highlighting milk is as natural as you can get, whereas soy drink contains many additives.

The “humour” in the Fast Start ad was lost on this correspondent but ad agencies say it has been well received.

Are you ‘aving me on?

Americans love their ice cream. It’s a competitive market and customers wait with baited breath each spring for the summer collection.

Food companies need to stand out in a crowded market place, which is what we imagine Ramar Foods was trying to do with its new avocado flavour under its Magnolia brand.

Ramar Foods has form, it has already released mango, coconut and lychee flavoured ice cream, it even pushed the boundaries a little more with its Thai tea and purple yam, but avocado is one out of the box.

The avocado ice cream will be sold in mainstream retail stores. Ramar Foods is also highlighting the ice cream contains milk from California pasture-raised dairy, while purees are grown on “small family farms” in Southeast Asia.

It’s a tough market, far removed from the days when bulk containers of vanilla virtually sold themselves.

Advertising Hyde Media Pty Ltd PO Box 237, Seymour, VIC 3661 Phone 03.5792 1314

Dairy News Australia is published by RNG Publishing Limited. All editorial copy and photographs are subject to copyright and

Advertising Manager Max Hyde max@hydemedia.com.au

When Murray Goulburn managing director Gary Helou spoke at the Dairy Innovators Forum in February, he implored his customers not to blame the supermarkets for poor farmgate returns.

Processors must take the blame; they are guilty of failing to effectively market milk, he said.

Nobody in the room knew that a 10-year deal to supply milk to Coles for their private label was nearing completion. The announcement this month took the industry by surprise.

Helou has stated on numerous occasions there are too many processors servicing the Australian dairy industry. It’s a fair assumption that Murray Goulburn’s freshly signed 10-year deal with Coles will lead to further rationalisation.

Helou is adamant the price premium signed into the deal will see better returns for Murray Goulburn suppliers from July, 2014, when it starts to supply milk to Coles in Victoria and NSW. The co-op will actively source suppliers from NSW to help fill its new Sydney plant.

On paper, it would seem this leaves Lion, and to a lesser extent, Parmalat, in a precarious position. Lion currently supplies Coles with all its milk from NSW (except northern NSW, which is supplied by Norco) and 75% of its milk from Victoria. Parmalat supplies 25% of Victorian milk to Coles.

Those contracts will expire at the end of June, 2014. Murray Goulburn also told Dairy News it would not rule out supplying Coles in other states, including Tasmania, where it has invested heavily in new processing facilities. It is also keen to strike up a similar supply deal with Woolworths.

This leaves Lion with Coles supply deals in Tasmania and central and northern Queensland. Parmalat maintains supply deals in SA and the NT. Revenues in Lion’s Dairy and Drinks business declined 10% to $2,535.6 million in the 2012 financial year, driven by white milk private label contract losses and reduced branded milk sales in the grocery channel.

Lion’s total white milk volume across branded and private label was down 14.5% on the prior year.

Murray Goulburn’s move will make business conditions much tougher for all processors.

Its renewal under Helou’s leadership is in stark contrast with Fonterra, which is revamping its struggling Australian business, slashing the number of brands to rein in losses and hinting at more factory closures. The number of brands will be cut from 21 to five.

For six months ending January 31, 2013, Fonterra’s ANZ business earned $98 million, 32% less than the previous year’s $145m.

The ANZ business includes brands in Australia and New Zealand.

A tough market just got tougher.

Editor Stephen Cooke 03.9478 9779 or 0427.124 437 editor@dairynewsaustralia.com.au Publisher Brian Hight 0408.558 938

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

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.

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Head Office Top Floor, 29 Northcroft Street, Auckland 0622, New Zealand Phone +64.9.307 0399 Fax +64.9.307 0122 Postal address PO Box 3855, Shortland Street, Auckland 1140, New Zealand

Dairy NewS AUSTRALIA april 2013

opinion // 15

Serious food for thought Julian Cribb is up there in the run-

ning to claim the title of ‘Conscience of the Nation’. For decades, he has been raising the profile of science in the national psyche through his articles in The Australian; and he has asked the hard questions about how we do what we do and where it is all leading.

Professor Cribb, who was a keynote speaker at the TFGA’s 2011 annual conference, has long been warning about our sense of priorities, the theme of his book The Coming Famine: the global food crisis and what we can do to avoid it.

He says that the central issue for human destiny in the next 50 years is not climate change or another global financial crisis; it is whether the world can feed itself.

Australian politicians, he says, are like their counterparts everywhere else, they will not address this fundamental problem we face, “a looming scarcity of just about everything necessary to produce high yields of food – water, land, nutrients, oil, technology, skills and stable climates”.

At the same time, governments are deluding themselves about the quality of the food they are allowing to dominate our diets. Cheap, fast food is exactly what it says. Because we can afford to waste it, we do. For the same reason, farmers don’t get paid enough for the food they produce.

He says that our generation is the first in world history to lose respect completely for food. “Every other generation for the last 10,000 years or so did all it could to store, save and protect its food.

“Societies that do not respect food, do not respect the people or landscapes that produce it. They don’t care if the soil washes away or the water is polluted, or the farmer is pushed off their land by profit-hungry supermarket chains, as is now happening to tens of millions of farmers worldwide…”

At fault is the industrialisation of food. The TFGA has long been advocating the need to think globally and act locally, particularly in the area of agricultural research and development. It is too easy for govern-

“Societies that do not respect food, do not respect the people or landscapes that produce it.”

opinion jan davis ments, state and federal, to adopt the razor gang approach of slash and burn to research funding. The attitude is that it is intangible; it has no direct impact on voters (especially in western Sydney) so prune it. That is so short-sighted.

Cribb asserts that there is a growing consensus among scientists and global institutions that a reduction of up to

50% in food production is a real possibility by 2100 unless we can adapt food and farming systems to highly unstable weather conditions. That takes research and forward planning.

Now comes the scary bit.

It is said there are only seven meals between civilisation and anarchy. If people become alarmed about where their next meal is coming from, they will do anything to secure it.

A recent report by Sydney Univer-

sity’s Centre for International Security Studies paints a dire scenario as Asia faces a long term scarcity of the vital ingredients of agriculture - land, water, fertiliser and energy.

“How governments and other actors in Asia respond to emerging food security challenges at home has far-reaching consequences for human security and peace and stability of communities and states in Asia and in other parts of the world,” it says.

This is what our politicians fail to grasp.

“We may have plenty of food, but if parts of Asia starve, we will face security problems of an entirely different order: floods of refugees and collapsing nations in our region, and the conflicts that erupt as a consequence. Also, regardless of its sufficiency, our own

food will double or triple in price,” Cribb concludes.

In actual fact, we’re already facing challenges with respect to food security. There has been a huge increase in imported vegetables over recent years; so much so that there is a real risk of us no longer being self-sufficient in some crops. The logical end game of the current relentless downward pressure on food prices is that our supplies will end up coming from the least cost supplier - and that won’t be a local farmer.

Once we lose farmers because they can no longer produce food competitive in price with imports, that capacity is likely to be lost for good.

This is scary stuff, and certainly food for thought.

• Jan Davis is the CEO of the Tasmanian Farmers and Graziers Association.

This dairy in Sri Lanka milks 15 cows. It is one of Fonterra’s largest suppliers in the country. Asia faces a long term scarcity of land, water, fertiliser and energy which will have dire effects on Australia.

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Dairy News AUSTRALIA april 2013

16 // agribusiness

Murray Goulburn invests $19m in Leongatha plant Murray Goulburn

has announced a $19.1m upgrade of its Leongatha processing plant, which will lift the site’s annual UHT manufacturing capacity by about 70 million litres.

The Leongatha upgrade is part of the co-op’s planned $200 million investment in “leadingedge” dairy food manufacturing facilities for UHT milk, butter/spreads and cheese announced by managing director Gary Helou in August.

MG is making the sig-

nificant investment in its Leongatha plant to help meet immediate increased demand for UHT milk, according to Mr Helou.

“The demand for Australian dairy products is growing rapidly. To meet the demand for UHT milk, we realised we had to make the upgrade at Leongatha now,” Mr Helou said.

Mr Helou said the expansion and upgrade of MG’s UHT manufacturing footprint had been prioritised as the business was currently operating at capacity.

“The Leongatha upgrade will help MG meet immediate demand for UHT milk from world markets, particularly Asia, while the long term strategy is confirmed,” he said.

“It will also help us to lift our supplier shareholder returns.”

The Leongatha investment involves the installation of two new leading-edge production lines.

“It will increase our ability to supply growth markets and improve our

Kraft, Sungold sign cream cheese deal Kraft Foods will produce cream

proving to be a key ingredient for business cheese under Warrnambool Cheese and success.

“Together, Kraft Foods and WCB have Butter’s Sungold brand following a new combined their expertise and resources to long-term supply agreement.

The product will be exported to WCB deliver two new exciting innovations,” Mr customers in Japan, China, Singapore, O’Brien said.

“Australian food companies are strong Malaysia and the Middle East. in food innovation and The agreement our products are trusted will provide a staged “Australian food around the world, so it’s increase of up to 5000 companies are strong great that we’re making metric tonnes of prod- in food innovation and the most of our local uct per annum for our products are trusted manufacturing capaWCB exclusively. bilities, supporting our The cream cheese around the world.” farmers by sourcing agreement follows a recent announcement of a further collab- locally and capitalising on this brilliant oration with Kraft Foods, with WCB devel- export opportunity.”

WCB chief executive and managing oping premium low fat cheese for Kraft Foods marketed under the Livefree brand. director David Lord said both agreements This product contains 80% less fat and were consistent with WCB’s strategy to build a portfolio of higher margin prodhalf the energy of regular tasty cheese.

Kraft Foods’ managing director of foods ucts and deliver more customer specific Darren O’Brien said that collaboration was applications.

productivity,” Mr Helou said. “The upgrade will also mean new opportunities for employees.”

Work on the Leongatha upgrade has begun and is expected to be completed

by December.

The Leongatha upgrade is being implemented in parallel to MG developing its longer term investment manufacturing strategy to meet future domestic and international demand, and to increase MG’s returns to its supplier-shareholders, Mr Helou said.

Murray Goulburn’s Leongatha plant.

Virbac Australia acquires Multimin Animal health company Virbac will start manufacturing trace mineral supplement Multimin for Australia and New Zealand following its purchase of Multimin ANZ. The company said this would ensure quicker response to customer demand for the product.

Virbac was previously the local distributor for Multimin, which is a trace mineral supplement for sheep and cattle that plays an important role in immune function, reproduction, growth and development.

Virbac has distributed Multimin in Australia since 2006.

Virbac Australia’s general manager, Bruce Bell, said it was a natural progression for the company to acquire the product.

“As producers become more aware of the economic and productivity gains that can be achieved

Bruce Bell

with Multimin, we anticipate that the demand for this unique product will increase significantly,” Mr Bell said.

“By manufacturing Multimin closer to local demand we can ensure supply for Australian producers.”

At this stage Virbac is working on production options in Virbac facilities in both Australia and New Zealand in order to ensure maximum flexibility.

“We have planned a seamless transition to regional manufacture so we don’t anticipate any disruption to supply,” Mr Bell said.

“The manufacturing process and ingredients will remain the same so our customers won’t notice anything different about their Multimin supply.

“Producers tend to see Multimin as an investment rather than a cost, because studies have shown that using Multimin can have a significant impact on the bottom line, increasing conception rates and productivity.

“Now that Virbac will be the manufacturer rather than just the distributor, producers who have made Multimin a key part of their animal health regime can relax in the knowledge that their supply of the product is secure.”

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agribusiness // 17 Dairy NewS aUSTraLia june, 2012

agribusiness // 17

Power prices expected to settle Export demand remains strong estimates suggest the average increase at 72% over the past five years.

The most publicised driver of price rises has been the carbon tax, although this only came into force at the beginning of the current financial year. The $23/tonne levy on the biggest emitters of greenhouse gases (naturally including many power generators) has increased the wholesale price of electricity, with the ultimate consequence of adding 8-10% to the average power bill. Given the magnitude of the total increase in electricity costs however, other factors are clearly at work.

Amongst these are the schemes designed to meet the ‘Renewable Energy Target’ – designed to ensure Australia meets its government-mandated goal of sourcing 20% of electricity from renewable sources by 2020. The cost of paying feed-in-tariffs for electricity supplied by household solar installations (divided amongst all electricity users) and the requirement for power companies to purchase ‘Renewable Energy Certificates’ from larger scale generators of renewable energy are together estimated to add between 4-7% to electricity prices.

Some state governments have their own schemes in addition to the federal target, potentially contributing to ‘acronym overload’ when each scheme is itemised separately (as LREC, SREC, VEET etc) on power bills.

Perhaps the biggest driver of increased electricity costs however – depending on location around 50% of recent increases – has been the rise in network costs incurred in transmitting and delivering electricity to end users. This includes increases in the day-to-day costs of distribution such as labour and maintenance materials but also investment in upgrading older infrastructure – be it ‘catchup’ investment to counter past neglect, or the alleged ‘gold plating’ over-investment. Additional investment to mitigate bushfire risk is a further impost on regional customers in Victoria, whilst the roll-out of smart meters has also

growing energy demand The current outadded cost. cents/litre in March (AUD 41c/L) to 28 With season 2011/12 only a few incremental change in milk production (year-on-year) willEuro eventually see36c/L) costs look assumes no further The good news is that cents/litre (AUD in April. weeks from ending, attention is now Profit margins are under pressure in the on 2012/13 milk prices as farmtrack upwards again.

Techgoverment intervention after the 2012/13focused increases US, and in NZ Fonterra has announced ers consider strategies for the coming niques and technology to (inflationary or deflatake effect, electricity the final payout for the 2011/12 season year. In some domestically-focused has been from NZ$6.75-$6.85/kg regions, renegotiated contracts incoraudit andcutreduce energy MS tionary) however, and in price rises are expected gLobaL impacT to NZ$6.45-$6.55/kg MS (AUD$4.96porating lower prices and reduced ‘tier JohN DropperT use, and options to generthe long term electricto moderate over the next $5.04). one’ access are undermining farmer Effectively, global dairy markets are confidence and supply stability. For global impact ate renewable energy onity will remain an input to few years – particularly in rebalancing. Lower prices will both private label Droppert contracts and promany farmers in export-oriented Shifts inJohn slowwill production and stimulate a lower price outlook relative to cessor rationalisation have seen milk farm only growth increase in keep an eye on - albeit a Victoria, whereregions, the smart demand, and as this occurs we will ultithe current season not only adds to the companies adjust their intake requirerelevance. minor one in cost terms. meter programchallenges is edging mately see a price recovery. Key factors of doing business, but seems ments and pricing to meet the changto watch on the global will be the ing demands retail to contradict medium term users • John Droppert is scene industry Macro pressures such as additional investment in electricity haveof a highly pressured closer to completion andthe positive rate at which milk production overseas outlook of Asia-driven dairy demand marketplace. Lower contract prices and analyst with Dairy the drive to reduce greengeneration and distribuhelped contain demand, cost reductionsgrowth. are possislows in response to lower prices, the a lack of alternative supply opportuniimpact of the current financial worries south-east Asiaand and the Middle flows. 2012 milk production in the US those present challenges in a market Dairy Australia’s outlook Australia. house gas inemissions tion with infrastructure. reducing theties required ble. High prices across all indicative for southern farm gate milk prices – published in the recent Dairy 2012: Situation and Outlook report, is for an opening price range of $4.05-$4.40/kg MS and a full year average price range between $4.50 and $4.90/kg MS. The report considers the wider market picture and summarises the many factors at play; the key theme of the current situation being that of re-balancing in the dairy supply chain.

In regions of Australia focused on producing drinking milk, many farmers face a re-balancing market in the form of renegotiation of supply contracts and reduced access to ‘tier one’ supply.

limited manufacturing capacity. Despite these challenges, the underlying domestic market is stable, with steady per-capita dairy consumption and a growing population providing a degree of certainty beyond the current adjustments.

In the seasons following the 2008 financial crisis and subsequent commodity price recovery, farmers in export-oriented regions have seen solid global supply growth (see chart) - with higher-cost competitors in the Northern Hemisphere amongst those expanding output as their margins increased.

This season, favourable weather conditions have further enhanced milk

is up around 4% on 2011 for the year to April (leap year adjusted), whilst early data suggests EU-27 milk production finished the March 2012 quota year up 2.3% on the previous year. New Zealand production is widely expected to finish this season up 10% on last year - a huge market influence given 95% of NZ milk is exported. Argentina is also enjoying solid production growth, but a significant supply gap in Brazil prevents much of this additional milk from leaving South America.

Despite wider economic uncertainty, demand has remained resilient as importing countries like China and

East maintain consistently higher economic growth rates that support increased dairy consumption. However, the surge in supply has outpaced demand growth in the market.

This situation has seen the scales tip in favour of buyers in dairy markets, with commodity prices retreating steadily over recent months. Butter prices are down some 30% from their 2011 peaks, whilst powder prices have lost more than 20%. Farm gate prices have subsequently been reduced in most exporting regions. The average basic farm gate price for milk in France for example, dropped 12% from 32 Euro

on consumer confidence, the path of China’s economic growth, and the value of the Australian dollar.

Demand for exported dairy products remains a positive and will continue to grow with the middle class in large emerging markets such as China, with changes in diet and with increasing urbanisation - and also in conjunction with global population growth. Locally, the domestic market is supported by a growing population and stable percapita consumption. Whilst the dairy market is currently a challenging place to be a seller, all signs indicate that balance will ultimately return.

Keeping the nitrogen tied down has never Malaysia FTA benefits dairy Freedom Foods plant been easier. targets Asia austraLian DairY,

rice and wine exporters to Malaysia are the biggest winners in a free trade agreement (FTA) signed between the two countries last month.

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

It guarantees Australian wine exporters the best tariff treatment Malaysia gives any country. It also allows open access arrangements from 2023 for Australian rice with all tariffs eliminated by 2026.

The National Farmers’ Federation says the trade deal will improve international market access for Australian agricultural goods.

“After seven years of negotiation, the NFF is under no illusion of how challenging it has been to complete this FTA with Malaysia,” NFF vice president Duncan Fraser says.

The FTA will fill a number of gaps within the

ASEAN-Australia-New Zealand FTA (AANZFTA).

“Protectionist sentiment over agricultural goods is rife and growing across the globe, so in this context it is pleasing Australia has managed to forge an agreement with Malaysia that has dealt with some sensitive agricultural issues not effectively covered by AANZFTA,” says Fraser.

“While under the AANZFTA agreement most of Australian agriculture’s key interests had tariffs bound at zero, dairy and rice are two sectors where incremental market access improvements have been negotiated under the Malaysian FTA. “This trade deal was also particularly important for sectors such as dairy that have been facing a competitive disadvantage in Malaysia compared with New Zealand which already has a completed FTA with Malaysia in place.”

The FTA also signals some administrative benefits for Australian agricultural export-

austraLian FooD

Sealing the deal: Malaysian trade minister Mustapha Mohamed with Australian counterpart Craig Emerson after signing the deal.

ers through streamlining of rules-of-origin declaration processes and improved marketing arrangements for certain commodities.

The Malaysian market is worth about A$1 billion in Australia agricultural exports – including being its fourth-largest sugar export market and fifth-largest wheat export market.

With an annual economic growth at about 5%, Malaysia forms an important part of the ‘Asian Century’ story and the opportunity this presents for Australian agricultural producers, says Fraser.

Despite the completion of this agreement, much remains to be done for Australia’s farmers to tap into the full potential of the Asian region and beyond.

He says the NFF will now throw its attention towards ensuring agriculture remains front and centre in completed FTAs with South Korea, Japan, China and Indonesia as immediate priorities.

“These are all markets with enormous growth opportunities and where significant barriers to trade in agriculture still exist, not only through tariffs that restrict trade

but also through technical or so called ‘behind the border’ restrictions.”

The FTA was signed on May 22 in Kuala Lumpur

by Australia’s Trade and Competiveness Minister Craig Emerson and his Malaysian counterpart Mustapa Mohamed.

Emerson says Australia will be as well-positioned in the Malaysian market as Malaysia’s closest trading partners in ASEAN, and in some cases better.

The FTA will guarantee tariff-free entry for 97.6% of current goods exports from Australia once it enters into force. This will rise to 99% by 2017.

company Freedom Foods Group Ltd is to build a new milk processing plant to cash in on growing demand in Asia.

The plant, to be built in southeast Australia, will be the first Australian greenfields expansion in UHT in 10 years.

Freedom’s wholly owned subsidiary Pactum Australia will run the plant. Some of its products will be sold in Australia.

The company says given Asian consumers’ rising incomes and improving diets, demand there will grow for quality dairy products from low-cost production bases such as Australia, whose milk is well regarded.

The new plant will allow Pactum to meet growing demand for UHT dairy milk, and add to capacity for valueadded beverages at its Sydney factory. Pactum is expanding its capabilities at the Sydney plant

to provide portion pack (200-330ml) configuration for beverage products.

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

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

Pactum makes UHT products for private label and proprietary customers.

016-017.indd 17

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The cost of farm inputs and the seemingly relentless manner in which they rise from year to year are all too familiar to dairy farmers – particularly in seasons where margins are tight and farmers must revise budgets to carve out a profit, or at least minimise a loss.

Despite not traditionally being the centre of focus in these efforts, electricity has been the subject of an unusual degree of attention this season.

Electricity costs as a proportion of total operating costs vary somewhat depending on the nature of the farm system. For example, farms that irrigate using electric pumps will use substantially more power than rain-fed farms, and farms with limited mains connections that rely on diesel generators for power will use much less.

On average, electricity costs represent about 2-3% of farm cash costs (excluding non-cash items like depreciation and imputed labour). This works out around $0.10/kg MS, which isn’t much – but can be the difference between a small loss and a breakeven result.

Electricity costs may receive undue attention in terms of their overall contribution to production costs, but the rate at which they have increased in recent years warrants a closer look. According to the Australian Bureau of Statistics’ electricity index series published as part of its quarterly Consumer Price Index releases, in December 2004, the index of electricity costs for Melbourne was virtually the same as for the previous year – as was the case again in December 2005 and 2006.

But from late 2007 some 15 years of stable electricity prices came to an end. Electricity costs steadily increased, and by December 2012 the index was up by 114% on the 2006 level – with a 23% rise during 2012. Admittedly, this is consumer price data; however the available evidence suggests that farmers too have experienced sharp price rises over several years.

Farm level information with a deep time series is difficult to come by, but

Dairy News AUSTRALIA april 2013

18 // breeding management

Synch program helps ensure daily milk flow Michelle Caccianiga performs injection administration and compliance for pre-synch ovsynch.

More than 80% of the milk sourced

by Albury’s Riverina Dairy factory comes from Riverina Milk, which runs 1500 cows at Corowa.

To guarantee a constant supply throughout the year the dairy operation has streamlined every aspect of its year-round breeding program.

Eighteen months ago the entire Fixed Time AI program was contracted out to breeding specialists, Nu-Genes, who now manage and implement the program, which involves joining up to 100 cows each week.

For farm manager, Jim Simpson, the benefit of this change in responsibilities is measured through better conception rates.

“It certainly costs us to have NuGenes out here every week, but with their skills we get higher conception rates,” he said. “We’re able to deploy our own staff into other areas of farm management.”

Adam Quarrell from Nu-Genes manages the program and is on farm three mornings a week. Using Bayer fertility regulators to synchronise cow ovulation, the breeding program starts with a PG (prostaglandin) injection when the fresh cows are 37-43 days in milk.

This stimulates cycling in the cow and is followed by a second injection 14 days later to catch any cows that didn’t start cycling first time round.

About 40 fresh cows between 73 and 79 days in milk are inseminated every Thursday of the year. To minimise disruption to the herd’s feeding routine and other farm work, all the AI work is undertaken at milking time on the rotary platform.

“The Fixed Time AI program enables us to predict everything on particular days,” Mr Quarrell said. “We are at the dairy three mornings a week and achieve the same or better results than a more labour intensive heat detection program.”

Who:

Riverina Milk Where:

Corowa What:

Fixed time AI

A heat detection program would require an experienced person to be present seven hours a day. This person can be better utilised in another area of the business.

With a FTAI program, every treatment stage is predicted for a particular day. All joining activity is concentrated into a six week period in which cows get up to three chances to conceive to AI. “After that we really only have three choices,” he said. “We can put them out with the bull, AI them one more time or put them in the DNB (Do Not Breed) group and milk them until they are not cycling again and that we give her the right drug, in the right volume, with the paying their way.”

The program is driven almost right equipment.

“It can’t be yesterday or tomorentirely by pregnancies and there is a row because if meticulous focus on we missed five system compliance. All AI work is of 100 we “The key to sucundertaken at milking out would be down cess is being absoto 95% comlutely on top of time on the rotary pliance. When compliance,” said platform. you work that Mr Quarrell. “That means making sure it’s the right cow, out over a herd of 1500 we would have the right injection and the right time.” missed 75 submissions.”

Achieving as close to 100% compliAttention to detail is paramount as ance as possible ensures conception is rigorous record keeping.

“We need to make sure it’s the right rates are generally around 40%.

A good understanding of the dollar cow and not one that’s already pregnant; that she’s had enough days in value of what they are doing with the milk after calving to be ready to start breeding program is important. Fertil-

ity regulators can be costly so volumes must be measured and targeted to each animal to get 100% effectiveness and a satisfactory return on investment.

Mr Quarrell said their success is based on good management of what they can control. This is achieved by making sure all records are up to date and by having good communication with the farm management team so they know where each cow is up to when they come on to the farm.

“By working together they can do what they do best and we do what we do best,” Mr Quarrell said. “These programs require precision. Managing irrigation, cow health, hay contractors, feeding and the 101 other jobs on the farm interrupt the synchronisation

program. To get it right you can’t afford distractions.”

Achieving satisfactory breeding results requires constant attention.

There is always room for improvement.

For instance, during the recent summer there was a drop in conception rates due entirely to the heat affecting the cows.

Mr Simpson thinks this kind of situation may need to be managed differently.

“While we are seeing good results from the fixed time AI program, we may need to build greater flexibility into the system to cope with factors outside our control,” he said. Good communication between breeding contractors and farm management is needed to address these and similar issues as they arise. Success is always a work in progress.

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Dairy NewS AUSTRALIA april 2013

breeding management // 19

Boost conception rates by 50% because more calves are conceived. rate of non-cycling cows A program including a can improve 50% by combining a progesterone CIDR was found to deliver a first service conception implant with a cycling rate that was equivalent program. to the remainder of the The research carried herd that cycled naturally, out by Warrnambool while the Ovsynch treated Veterinary Clinic and animals did not perform sponsored by Zoetis as well. (formerly Pfizer Animal Treatment cost, includHealth), involved 19 ing products and vet western Victorian dairy herds and was undertaken expenses for the CIDR based program, was in 2011/2012. around $41. However, the The research involved gain of additional AI calves 1751 head of cattle and with superior genetics and compared multiple therefore more replaceprotocols for the ment heifers to choose treatment of non-cycling from, represents a sig(anoestrus) dairy cows. nificant opportunity and The objectives of the sound investment. trial were to generate “CIDR programs are Australian specific data helping to mitigate the on the treatment of financial non-cycling “Our losses that can dairy cows burden local and review research producers the benefits has when their of using a confirmed cattle are not controlled that the cycling, and internal drug pregnancies release (CIDR) addition of being device in these a CIDR into are gained by cows.

CIDR Cattle an OvSynch back up bulls, program not quality AI Devices are bulls,” Dr Kelly administered improves said. vaginally the first “Although and contain conception there are the natural rate by initial costs for hormone producers that progesterone. almost implement Dr Jon Kelly, 50% over a CIDR lead researcher program, the from Warrnam- Ovsynch profits that bool Veterinary alone.” farmers will Clinic, implesee in the higher number mented the six-month of quality heifers born research project to gencertainly make up for the erate specific advice for farmers when dealing with early investment.

“Knowing how and their non-cycling cows. when to tackle these “Our research has problem cows and getting confirmed that the them pregnant early addition of a CIDR into should be a real focus for an OvSynch program farmers. improves the first “The cow’s conception rate by almost 50% over Ovsynch alone,” reproductive tract also needs to be checked, as said Dr Kelly. “These well as body condition and results were particularly general health. apparent in younger “We recommend cattle.” that producers speak Even with the to their veterinarian for addition of CIDR into more information on an the program, the cost per appropriate breeding CIDR pregnancy versus program for their dairy an Ovsynch pregnancy herd.” is reduced by over $30,

THE first conception

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Dairy News AUSTRALIA april 2013

20 // management

Lifting grain production to reduce input costs Gordon Collie

Committed dairy farmers Neville and Margaret Schofield would like a fair price for their milk, but are planning to cope with a different reality.

Their income beyond the middle of this year is uncertain with processor Dairy Farmers having put a tier two price of just 12 cents a litre on hold until the end of June.

With about 45% of production falling into the tier two category, their cost-efficient enterprise in the Forbes district of inland NSW faces being squeezed like never before.

“We are getting less for our milk than we did 24 years ago and our faith in the industry is certainly being challenged,” said Mr Schofield who is a fourth generation dairy farmer.

His father had a dairy at Mittagong and Neville and Margaret relocated

Neville and Rick Schofield aim to lift dairy feed selfsufficiency to around 90%.

at school.

“There were only a handful of dairy farms when we moved here, attracted by access to irrigation, a local grain supply and a bit more land,” Mr Schofield said.

They had nothing but bare paddocks, building a new herringbone and setting up the property for dairying Who: before transferring their milking herd Neville and Margaret Schofield of 120 cows.

Where: With 800ha on the Lachlan River Cowra they have been able to diversify their What: income with beef production on one Mixed ration part of the property and dairying about 440ha.

They have built up to about 200 their enterprise further west from the Friesian-Hereford cross breeders from Southern Highlands region for fresh the dairy herd and use an Angus bull, opportunity in 1989. selling calves at about 400kg, with Their two oldest sons Brian and most going to feedlots.

Luke have a hay, silage and truck conMr Schofield said the family was tracting business and help out on the property. Third son Rick is full time on now focusing on further containing costs by lifting dairy feed self-suffithe farm and youngest son Ben is still ciency to around 90%.

Springing heifers at Cowra.

After buying in all their grain for a number of years, they are planning to grow a 120ha wheat crop this winter, reducing their off-farm reliance to just barley.

In a region which normally has about 550mm annual rainfall, the family has welcomed a return to more favourable seasons after long periods of drought.

Rick and Neville Schofield.

This has allowed them to build their silage and hay reserves with pit storage capacity of about 5000 tonnes.

It was during a drought about 12 years ago that they first turned to trough feeding a mixed ration including silage and milled grain.

The practice has continued ever since as an efficient way of achieving stable daily milk production of 23 to 25 litres from a herd which is calved year round.

Animal health was an important consideration with the herd having free access between the concrete feed troughs on a gravel pad and loafing paddocks with shade and water.

The milking cows get their complete ration fed twice daily.

The ration comprises a mix of lucerne hay, oat cereal hay, fine chopped oat and pea silage, cotton seed meal and a small amount of mineral additives. The grain ration is a 50-50 mix of wheat and barley which is milled before being added to the mixing wagon.

At one stage grain intake was pushed as high as 14kg a day, but is now stabilised around 8kg in the ration fed twice daily. No grain is fed in the dairy during milking.

“We work on feeding grain at the most efficient level, based on the input costs of the grain and the returns we get for the milk produced,” Mr Schofield said.

About 30ha is devoted to growing summer active lucerne for hay production with flood irrigation and reticulation of run-off water on the laser leveled paddocks.

Crops of oats and field peas are grown for grazing and making high protein silage with ryegrass, lucerne and clover pastures rotated with crops to provide grazing for dry cows and young stock.

Springing heifers are introduced to a hay and silage mix in paddock troughs before coming into the milking herd.

Mr Schofield said the farm was geared for economical milk production with an average lactation above 7000 litres.

“Trough feeding allows us to accurately control the herd intake and provide a stable milk supply. It’s a production system that works for us,” Mr Schofield said.

The family has lifted cow numbers to about 250 milkers and is committed to a future in dairying despite the milk price uncertainties.

“We are fortunate to have an income from beef, but we’re dairy farmers. We love what we do,” Mr Schofield said.

Dairy NewS AUSTRALIA april 2013

management // 21

Watch for nitrogen loss with the dew, we feel Farmers are being satisfied that the job is advised to consider ways to minimise volatilisation done,” he said.

“But what we can’t losses from applied see is the ammonia gas nitrogen this season. starting to leave the soil Lee Menhenett, surface a day or two later, Incitec Pivot Fertilisers’ technical agronomist, said robbing the pasture of valuable volatilisation nitrogen.” was the Research process conducted where

by The gaseous University of ammonia Melbourne was lost in Western from urea as Victoria in it attracted April 2010 moisture has shown on the soil Agronomist Lee volatilisation surface.

Menhenett losses of “We up to 30% broadcast urea and when we inspect of applied nitrogen from urea. the paddock the next day Mr Menhenett said and see that the urea has there were a number of disappeared or dissolved

Free business health checks Dairy farmers looking to improve their

profitability are signing up for free one-on-one sessions with experienced dairy advisors offered through Dairy Australia’s new Taking Stock campaign.

Dairy Australia’s farm business management program manager, Gavin McClay, said Taking Stock sessions are still available and enable farmers to evaluate their business and prepare for next season.

“It’s a great opportunity for farming families to sit down and evaluate their current situation with a senior industry advisor for a few hours and start building a plan towards next season,” Mr McClay said.

The Taking Stock sessions are confidential and delivered by trained industry advisors to help farm families work through key management decisions and identify support available to manage their businesses through challenging times.

Interested farmers should contact their local Regional Development Program (RDP) to register for a Taking Stock session.

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

The financial and physical analysis Taking Stock offers includes: ■■ Understanding and managing your budget ■■ Identifying cost saving options ■■ Calculating pasture consumption ■■ Managing debt and your balance sheet ■■ Understanding additional support services that can be accessed, including counsel and health services ■■ Creating an action plan The Taking Stock sessions will be available through to June 2013. If you are interested call your local RDP to register.

All sessions are strictly confidential between the advisor and the farmer.

factors which contributed to volatilisation losses.

He said these included high pH soils, warmer conditions (although losses have been reported at OoC), high urease activity, windy conditions, little vegetative cover and drying soils.

He said soils drying after overnight dews or light showers were the worst case scenario for volatilisation losses.

to move urea into the soil increased potential for “Nitrogen loss losses due to the higher and the longer the delay generally starts within levels of urease in the between application and a day of application and soil,” he said. continues for Urease another couple are naturally of weeks,” he Nitrogen loss starts within occurring said. “Peak a day of application. enzymes in losses occur the soil that around four accelerate the to six days reaction of urea significant rainfall, the following application.” greater the losses may be. with water, making it He said significant “Old pasture paddocks unstable. rainfall events (for light While applying urea high in organic matter soils 8mm, or for heavy post-grazing is the most soils 15mm) were required also tend to have an

efficient time for nitrogen recovery, Mr Menhenett said there was not a lot of vegetative cover at that time, so losses due to air movement could be high.

He said volatilisation losses could be minimised by timing urea applications within a couple of days of rainfall or irrigation, or by using a fertiliser with a urease inhibitor.

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Dairy News AUSTRALIA april 2013

22 // management

Russell Cumming with his new dairy which allows all 350 cows to be milked by one operator in an hour.

The 44-unit Milfos Inernational model has a unique sunken centre platform.

Like a sunken treasure Rick Bayne

Russell Cumming’s new dairy at

Toolong near Koroit in south-west Victoria is like a sunken treasure.

After deciding to move from an old herringbone

to a new rotary system, Russell and his brother Colin opted for a 44-unit Milfos International model which features a unique sunken centre platform design.

“It was a very competitive price and simple to operate but what I really

liked was the idea of the sunken interior,” Mr Cumming said.

“It makes it much easier to access for servicing. The milk lines, pulsators and the rollers for the platform are easily accessible and out of the way of moisture which means

they should last longer.”

The new dairy is the first of its type to be installed in the region.

It was built and installed by the Terang & District Co-Op which is contracted as the sole agent for Milfos dairies in south-west Victoria.

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existing dairy was effecAfter viewing four or tively at the end of the five different dairies, Rusproperty so we wanted sell also visited New Zeato centralise it and have land to inspect the Milfos the capacity to milk more system in action before cows,” he added. making the decision.

“Mark was share farmThe Milfos iDURO ing on the other property Rotary Platform with Who: and he came over and was a single beam and Russell and Colin keen to milk more so we nylon roller system was Cumming needed a new dairy.” installed along with a Where: The combined farm Milfos iCONVEYER MilkToolong, via Koroit What: now covers 211ha and they ing Machine. Milfos iCR Sunken dairy hope to increase the 350Intelligent Cup Removers strong herd to 400 over and the new cow restraint the next few years. system went in also in “Production is going conjunction with the clus- vacuum pump. This will okay but the season has achieve substantial savter drop down that allows been against us. We need ings in running costs in the cups to pass under the milk price to go up, the dairy. the bridge and raise again the season to improve and It has been an almost at cups-on position. The feed costs to go down.” seamless transition from cluster drop down also The Cumming family the old system to the new. alleviates any problem The Cummings’ share- has been farming in the with cows getting caught area for nearly 50 years. up in the clusters and milk farmers Mark and Kristin Harwood and the 350 cows The new dairy was built tube when entering or on the site of the original they currently milk have exiting the platform. farm’s 15-a-side Russell and herringbone and Colin wanted a new shed a teat spray The sunken interior makes while was built, some of system that it much easier to access for the existing infrawould allow servicing. structure was it to operate redesigned into as a ‘one-man the new complex. shed’, so the Mr Cumming said the quickly adjusted to the Milfos iPUD On Platform decision to buy the adjoinnew system.

Teat Spray system was “Within a week at least ing farm was paying off as used. This allows cows they increase equity in the 90% of the cows had setto be automatically teat property and turn it into a tled down and are fine sprayed 10 seconds after “good functional dairy”. with it,” Mr Cumming the cups are removed, “It’s a bit different to said. using only 15ml of teat other dairies but it suits us “We’d never had any spray. nicely.”

While it can be used by experience with a rotary The building and condairy but it is easy to operup to four operators, the creting was completed by speed of the system allows ate and easy to get into.”

The Cumming brothers the Terang Co-Op and the all 350 cows to be milked decided to install the dairy yards were linked into the by one operator in about existing setup with ease, after purchasing a neighan hour. “It’s a lot quicker showing savings could be than what we had so there bouring farm two years made by utilising existing ago and consolidating the has been a labour saving,” infrastructure. two properties.

Mr Cumming said.

The Terang Co-op is “We wanted it to be big Because of rising power nearing completion of its enough to be viable,” Mr costs, they fitted variable Cumming said. “When we second Milfos dairy near speed drives on the milk Panmure. pump and also the blower merged the two farms the

Dairy NewS AUSTRALIA april 2013

management // 23

More soil tests boost yield rick bayne

Dairy farmers are being advised to take separate soil tests at the front and at the rear of their paddocks and to intensify their soil testing strategies.

Reducing Soil Acidification through Nutrient Management project field days at Grassmere and Macarthur in western Victoria have been told that farmers should change the way they look at testing their soil nutrient levels to ensure they are getting best value from their inputs and to maximise productivity.

Event organiser and project manager for WestVic Dairy, Jeff Lawes, said a key message from the field days was

that farmers need to re-think how they undertook two or three soil tests every few years. Some took six to eight soil monitor nutrient levels.

“Farmers have to become more pre- samples each year while some had done cision oriented and question how accu- no soil testing for many years before rate soil test are if a standard 25-30 cores joining the program.

“Most of those are taken to make up a who have been soil sample in a tranIndividual through the program sect from the front of a now see the value in paddock to the rear of paddocks are increasing nutrient a paddock,” Mr Lawes more variable monitoring across said. than most their farms,” he said.

About 180 farmfarmers realise.

Mr Lawes said ers are involved in the farmers had tradiReducing Soil Acidification through Nutrient Management tionally used two or three farm manproject in the Glenelg Hopkins and Cor- agement zones for soil tests.

“We are encouraging dairy farms to angamite CMA regions.

Mr Lawes said that on average, farm- have at least six zones and to recognise ers surveyed at the start of the project the rapid shift of nutrients within indi-

vidual paddocks,” he said.

“Individual paddocks are more variable than most farmers realise. One transect across a paddock may not give a true indicator of the nutrient balance.”

Mr Lawes said having more accurate results would allow farmers to better target their nutrient management.

Up to 12 separate soil tests were taken on paddocks on two trial farms as part of the program.

“There were some amazing results with significant shifts in nutrients from the back to the front of paddocks,” he said.

“On the multiple soil tested paddocks, we found potassium levels at the rear of the paddocks to be quite deficient yet the front 1/3 closest to the lane-

way and water trough area well in excess of dairy industry best practice levels.”

While Mr Lawes said funding had been received to allow this many tests to be carried out, farmers would need to ensure the number of soil tests was practical for their needs.

The field days were hosted by WestVic Dairy at Andrew and Anna Wortley’s farm at Macarthur and Des, Belinda and Simon Roche’s farm at Grassmere.

Both farms have been involved in the Reducing Soil Acidification through Nutrient Management project which was funded by the Australian Government’s Caring for our Country and managed by Glenelg Hopkins Catchment Management Authority and WestVic Dairy.

Blanket approach to fertiliser fails rick bayne

There can be huge variations in nutri-

ent levels from the front to the back of paddocks on dairy farms, according to Andrew Speirs from Mike Stephens & Associates in Casterton, Victoria.

Tests at four trial dairy farms across south-west Victoria under the Reducing Soil Acidification through Nutrient Management project revealed the level of variation on some paddocks.

A paddock which was split soil sampled at 0-10cm depth found phosphorus levels of 51mg/kg (Olsen P) at the front of the paddock and 41mg/kg at the back, potassium levels were 311 mg/kg (Colwell K) at the front and 89 mg/kg at the back, sulphur levels were 21.7 mg/kg (KCL40 test) at the front and 10.4 mg/kg at the back.

Sampling at 10-20cm continued to reveal variations.

Mr Speirs said as a solution, the back two-thirds of the paddock received potassium and sulphur in regular small amounts while the front received nitrogen only in a strategy aiming to get a more even distribution of nutrients across the paddock.

“The end result was we grew at least four tonnes more pasture per hectare on the back part and the pasture persisted much better,” Mr Speirs said.

Mr Speirs said the position of troughs and gateways, the shape of paddocks and changes in soil type could influence nutrient variation, as could the habits of cows and how and where silage and hay is fed across a paddock.

In one test the soil pH varied from 4.9 to 5.6 depending on the location of the gate and trough.

Mr Speirs said a blanket approach to fertiliser does not work.

A monitor paddock which was mul-

tiple soil tested from Andrew and Anna Wortley’s farm at Macarthur, Vic, showed a similar trend with potassium levels with Colwell K levels at the back of the paddock being as low as 118mg/kg, the middle of the paddock 235mg/kg and the front of the paddock up to 390mg/kg. This highlighted the nutrient transfer from the back of the paddock to the front and the need to do something other than a blanket approach for nutrient management. Refer to figure 1.

“Regularly monitoring appropriate paddocks on transects allows the correct fertiliser decisions to be made on an area basis, not on a blanket basis.”

He said it was easy to set up farms in zones and farmers should target nutrient applications to achieve optimum production and profitability, maintain adequate nutrient levels and minimise any side effects.

He also urged farmers to take preventative action if aluminium cation levels start to rise and to apply lime as soon as aluminium is noticed in the system.

“Getting lime is cheap and easy in this region because it is available on your doorstep…you should be making use of it. If you get out of the habit of liming, it can get away from you.”

In a dairy pasture system, early intervention to prevent soil pH falling below 5.0 in CaCl2 is a good approach. Maintaining a pH greater than 5 ensures there is no or little available aluminium to restrict pasture growth.

Liming highly productive dairy pastures when the pH falls between 4.8 and 5 in CaCl2 also ensures that the 10-20cm zone also does not start to become acidic as getting lime into the subsoil is quite difficult.

He said liming was essential if pH levels were less than 4.4 in CaCl2 as it is starting to do damage to the clay lattice in the soil.

“The more active root system you have, the better off you will be.”

Andrew Speirs says regularly monitoring means decisions can be made on an area basis, not on a blanket basis.

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Dairy News AUSTRALIA april 2013

24 // management

McGrath family starts from scratch on green field site When the McGrath family of

Orford, in Victoria’s Western District, decided to set up a new dairy on what was previously a sheep farm there was a lot of preparation and work to be done to get it all going.

The McGraths are a well-known family in the area in dairying and horseracing. Andrew farms in partnership with his brother Eddie and sisterin-law Anne and their original dairy farm is just down the road from the new site.

They decided in 2010 to start the new operation on the 256ha property called Wootanga Park.

The McGrath family settled here 150 years ago and Andrew tells the story that his great, great grandfather used to take make butter and send it to Port Fairy by bullock wagon, to put on the steamer to England.

There was a lot to do on what was basically a ‘green field’ site for dairying, starting with pasture renovation on the non-irrigated land to make it suitable for dairy cows. They sowed 160ha

Who:

McGrath family Where:

Orford What:

New dairy

last year and will do about the same this year.

Of course, planning of the new milking shed was a major project.

“We first looked at a herringbone shed and then decided on the 40 unit Yarroweyah rotary platform,” said Andrew.

“We always had Westfalia milking machines at the other farm, so that was the way we wanted to go.

“We’ve had a good run with West-

Rachael McGrath says milk meters identify potential mastitis issues through measuring the conductivity of the milk.

Andrew McGrath with a new 18,000 litre vat.

Andrew McGrath and his niece, Rachael, in front of the new 40-unit rotary dairy on their Orford farm.

faliaSurge. There’s nothing wrong with their equipment.”

Plans were drawn up and submitted and the family got the go-ahead around Christmas 2010. Mt Gambier-based dealership, Dairy Tech South East was involved right from the start as they had been servicing the old shed, and the complete rotary was up and running in June 2011.

Eddie and Anne’s daughter, Rachael, works with Andrew on the dairy and her younger brother, Leo, who is nine, helps out at times. They are milking 315 cows this year and they say that they may creep up a bit more as time goes by.

The milking system is centred on WestfaliaSurge’s DemaTron 70 milking control unit with automatic cluster removal as well as precisely measuring

each cow’s milk yield and rate of flow.

The milk meters also identify any mastitis issues through measuring the conductivity of the milk.

“Conductivity checks mastitis based on the last two milkings and gives an audio alarm as the cow comes in for the next milking, if her level is above average, so we can put her on the bucket,” said Rachael. “We have a triple-headed automatic teat sprayer, plus we use a hand spray, to make sure.

“This year we have been in premium milk right through,” added Andrew.

“Last year when we were building up the herd, we were buying in other people’s problems. With this system we now don’t need to herd test.”

The stalls feature retention bars and automatic kick-off detection. If the milk produced hasn’t reached pre-set levels the cow is retained on the platform for checking.

The DemaTron 70 milking control unit controls two milking stalls with pulsator, operating unit and Metatron MB metering box.

The cows have automatic ID through ear tags to link to the herd management software, DairyPlan C21, which provides a complete overview of the performance of each animal: milk yield, health and feed consumption.

Behaviour and activity of the cows could also be measured if collars were fitted to them, under DairyPlan C21.

“Dairy Plan runs the whole show,” explained Andrew, “including automatic drafting and feeding of the cows.”

They also fitted a variable speed vacuum pump and Andrew says it is already saving energy.

The installation included a new 18,000 litre TCool vat which GEA Farm

Technologies claims incorporates the latest technology in cooling, rinsing, controlling and measuring. The vat’s control unit cools, agitates, cleans and monitors every function to ensure the lowest energy usage and as Andrew said, it has its own checks, but can hook into the Dairy Plan monitoring if required.

They also have a pre-heat ‘Superheater’ which takes the hot gases from the compressor to start the cleaning water at 50-60 degrees. Superheater heat recovery units utilise the heat extracted during the milk cooling process to heat water.

The morning milking was taking an hour with 190 cows that were in milk at the time and the evening milking was taking 50 minutes.

“We are 100% happy with the service from Dairy Tech South East, and we haven’t had any breakdown calls since we got the shed going, except for one power surge. They came straight over so that we could milk at 7.30pm.”

The McGrath’s cows are currently doing 6000 litres per year; “When it all gets going we’ll production feed,” said Andrew. At the moment they are feeding 5.75kg/cow/day of wheat and 1.5kgs of protein mix with vitamins and additives.

Rachael and her mother, Anne, look after the artificial insemination and the pregnancy testing. They have 52 heifers coming in this year. Eddie looks after the fertiliser, fodder conservation and fencing.

“In the future we will build up to 350 cows, but we want to look at increasing individual cow production first,” said Andrew McGrath. “We have the possibility of irrigating from bores for summer crops.”

Dairy NewS AUSTRALIA april 2013

animal health // 25

Know your cow’s motivators pam tipa

WHAT’S A cow’s field of vision? How well do they smell? What is their sense of taste? Do they feel pain like us?

Many seasoned dairy farmers at the Dairy Women’s Network conference in New Zealand thought they had a good grasp of such things but Chris Leach, DairyNZ developer, animal husbandry and welfare, surprised many with the answers.

Understanding why and how cows react to us is the basis of good stockmanship and unwittingly stressing cows can cut production up to 10%, he warns.

Surprising fact number one, Mr Leach revealed, is that a cow’s field of vision is 330 degrees. Many workshop participants thought it was much narrower, but cows evolved as preyed-upon animals so a wide field of vision was an advantage.

With such a wide field of vision, they are wary of anything that disappears into their blindspot behind them: if you do, you risk being kicked or making the cow turn round.

To the front cows have a limited area of binocular vision so cannot judge distances or depth well: they need time to check out steps or changes in layout.

Vertical vision is limited to about 60 degrees.

“Cows are designed to look down - if they have to look up they can’t see where they are placing their feet.”

A project where Mr Leach and colleagues had to use a cherry picker around a herd brought home that limited vertical vision: once the cherry picker was above a certain height the cows were completely unconcerned because they couldn’t see them.

Cows’ colour vision is also limited. They see a spectrum of blues and yellows, about 100,000 different colours compared to humans’ ability to see about a million. If you take red tones out of vision, contrast increases markedly and shadows look extreme, explains Mr Leach. Consequently a block of shadow can look like a hole to a cow. They

get used to shadows they see daily, but something different will throw them.

Smells are another driver of behaviour and cows can smell things up to 8km away. It’s a very important sense for the animal, notes Mr Leach.

“It can have a devastating effect on cow flow if you are not aware of it: for instance, homekill or someone spreading blood and bone.”

Herd hierarchy is strongly linked to smell, as shown by experiments that found social order among cows unaltered by blindfolding.

Cows can smell fear in the form of pheromones in urine, sweat and dung of other cows. A fearful cow in the milking shed sends a sensory message to others through her pheromones in urine or dung.

“Think about creating the dairy as a safe zone for cows and they will be far more ready to come onto the platform... Try to keep painful procedures out of there if you can.”

Given what cows eat, many workshop participants thought their sense of taste must be dull, but it’s better than humans’.

Cows have two to three times as many taste buds as humans, using them to identify good, bad or toxic food, hence the need for sweeteners to mask bitter flavours such as zinc in water, but also the danger in loss of bitterness where toxic plants have been sprayed off or conserved.

High pitched noises, such as whistling, are unpleasant to cows and studies show shouting and whistling can be more stressful for the animal than being slapped or hit, not that the latter is acceptable either. As for what to have on the radio in the shed: research has shown country and western is the best.

Cows are sensitive to touch and feel pain as we do. However they are prey animals and try to hide pain. Do stroke, scratch and lightly pat cows, says Mr Leach.

Fellow DWN conference speaker and dairying specialist Mel Eden says spending a lot of time in dairy design and management brought him to the conclusion we needed to

understand cows better.

“The attitude of the person will affect the cow.

With good attitude you get the benefit of calmer cows and better production.”

An excellent exercise is to measure how quiet cows are: with low fear you should be able to walk within 2.3m without a reaction; with average fear 5.3m; high fear 12m. Eden suggests using the reaction distance as a tool to measure the impact of management changes.

Mr Leach says it will

Chris Leach surprised many with answers on cow behaviour.

take about three to six weeks for better handling of the herd to be translated into cow behaviour.

One farmer said they had top staff but they could be impatient. They carried out an experiment timing staff doing a rushed milking and then a calmer, less stressed one. It was timed from the start of milking to wash up - because stressed cows excrete more. The ‘rushed’ job was actually no faster. The experiment had given staff more buy in to calmer milking.

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Dairy News AUSTRALIA april 2013

26 // animal health

Increased pregnancy testing can lead to more milk April in the Goulburn Valley is the time of year when we are pregnancy testing the spring -joined herds.

Pregnancy testing is such an important tool on a dairy farm, I have written about it before, but I will write about it again (and again!).

The pregnancy status of a cow is a key determinant in many decisions relating to her current and future lactation, treatments required and actions like vaccinations.

I never cease to be amazed that some farmers do not seem to see the value in pregnancy testing at all, with some using failure to return to heat, or slackening off of milk production as their criteria to determine pregnancy status.

technology Unforhas revotunately, lutionised many pregnancy cows will testing, with not cycle skilled operdespite not ators able being preganimal health to detect nant (phanrob bonanno pregnancy tom cows, very early, cystic cows) and some can even sex the and many continue to fetus at around 70 days. cycle regularly or irreguBut like all things, it does larly despite being preghave its limitations. nant.

Once a cow is more More importantly than five months pregthough is the number of farms that I work with that nant, the calf is frequently deep down inside the cow, only perform one pregand there is very little to nancy test per year. There see on ultrasound. It is is great merit, and huge quite easy to falsely call economic returns to be these cows empty. This is had by pregnancy testing early, mid and late in preg- why the Australian Cattle Veterinarians (ACV) recnancy. ommends that all cows This month’s Dairy diagnosed empty by ultraNews Australia theme is sound should be manually Technology. There is no checked by rectal examidoubt that ultrasound

nation to prevent grave errors from occurring.

The only exception to this would be when herds are being routinely checked early in pregnancy.

Early pregnancy detection can be done from around 30 days by ultrasound and 35 days manually. I personally prefer testing cows around 42 days after the round(s) of AI are finished.

By testing at this time, it is possible to be quite accurate in staging the pregnancies and the farmer can be sure that the cows detected pregnant at this stage are most likely going to calve early, and to their last recorded AI date.

Having an accurate calving date greatly helps in the future management decisions regarding vacci-

IN UDDER WORDS...

It’s time to vaccinate against Leptospirosis Dry-off is the ideal time to ensure your milking herd is vaccinated against Leptospirosis – an important disease for farmers to prevent.

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The source of Leptospirosis on farms is usually an infected animal which contaminates pasture, drinking water or feed with its urine. Leptospirosis infection can result in abortions and stillbirths in beef and dairy cattle, and is associated with low calving rates and infertility.

People working closely with infected animals – dairy farmers and graziers, their families and employees – are at a major risk of being infected, with infection passing from animal to human.

Vaccination of cattle against Leptospirosis is vital to assist with prevention of the infection in people. Vaccination of cattle provides protection against Leptospiral infection and ensures that cattle don’t have the chance to excrete Leptospires in their urine (urinary shedding).

Urinary shedding only occurs if an animal has, or has had Leptospirosis, and provides the opportunity for the disease to spread from animal to animal or, more importantly, from animal to human.

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By knowing which cows are in calf to AI, and drying them off first, the later cows can be milked for 2 1/2 to 3 months longer.

nations, parasite control and dry off timing.

The cows not detectibly pregnant, but still running with the bull at the time of this first pregnancy test, should be tested again at around 6-8 weeks after the bulls have been removed.

This will allow us to determine quite accurately the pregnancy status of the bull bred cows, and also determine how many cows have missed out this time around (ie the empties).

This “middle” pregnancy test will allow us to determine how many bull bred pregnancies we have, begin to make accurate plans for drying off strategies for these late cows, and even consider creating an induction list should that be your wish.

The empties can be carried over, culled or rejoined as another management group.

I advocate a “late” pregnancy recheck. A proportion of cows previously confirmed pregnant will not carry their calf to term.

The reason is the earlier that a cow is confirmed pregnant, the higher the percentage of cows that may reabsorb the pregnancy without any obvious signs.

Also, detecting a higher-than-expected pregnancy loss during gestation at this test may indicate a problem that needs investigating. Due to the limitations of pregnancy ultrasound, this late pregnancy reconfirmation should be done by manual palpation.

In non seasonal herds, the only difference to this plan would be that pregnancy testing would be done in smaller groups monthly, with cows at all stages of pregnancy being tested, confirmed or reconfirmed at each monthly visit.

With cash flows on dairy farms under considerable stress, why would you want to add an extra job (and expense) to your calendar?

Let’s just assume that an average pregnancy test costs around $5 (vet costs, travel and your labor).

An additional cost of under $10 per cow can be expected by increasing the number and frequency of pregnancy testing.

Because the staging of pregnancy becomes very inaccurate, once a cow is greater than 4-5 months in calf (pregnancy diagnosis is accurate but estimating how far pregnant becomes inaccurate), determining

the ideal time to vaccinate, drench and dry off a cow becomes fraught with danger.

By knowing which cows are in calf to AI, and drying them off first, to their expected due dates, the later cows can be milked for 2 1/2 - 3 months longer than they may have been if all the herd was dried off according to the first possible calving date in the mob.

This can translate into a lot of additional income, will prevent cows having prolonged dry periods which can affect their ability to transition into lactation in a smooth and profitable manner, and means that key vaccinations for things like Rotavirus, E.coli and Salmonella can be more accurately timed to maximise colostral antibody levels.

Like always, I would strongly advise that you discuss your pregnancy testing plan with your herd veterinarian to find that lost income that may be disappearing before your eyes without you even knowing.

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

Dairy NewS AUSTRALIA april 2013

animal health // 27

Transition feeding for lifetime performance Trish Lewis

During the last few weeks before calving, both dry matter intake (DMI) and immunity dip at the point of calving and take time to build back up in the following weeks.

One of the key aims of good transition management before and after calving is to reduce the depth of these declines and achieve a fast recovery after calving. The transition period is generally considered to be the period from three weeks prior to three weeks after calving.

The drop in DMI as cows approach calving creates an energy shortfall, which cows fill by mobilising body fat. The more fat is mobilised, the greater the risk that cows will get clinical or sub-clinical ketosis. This condition further reduces appetite, leaving a greater energy gap and putting cows on a downward spiral.

Over conditioned (fat) cows are more susceptible to ketosis and other metabolic diseases, so it is important to prepare cows to have a tight spread of body condition score at calving, not being too thin or too fat.

To encourage feed intake and minimise fat mobilisation, the springer cow diet (for cows in the last three weeks before calving) should have good energy density and be balanced for protein. When DMI drops, the risk of rumen acidosis increases so it is important to have sufficient effective fibre (physical pieces of forage >15mm) in the diet. Feeding a live yeast supplement has been shown to increase DMI, reduce the risk of acidosis and improve feed efficiency.

The springer diet should contain similar feed types to the fresh cow diet so there is no sudden change for rumen microbes to adapt to at calving.

As appetite drops, it becomes particularly important that the diet is palatable with good

quality feed ingredients.

All efforts should be made to ensure feed is free from contamination, but if there is any risk of mycotoxins (microscopic toxins produced by moulds) then a proven mycotoxin binder should be considered.

Mycotoxins are hard to detect and produce a wide range of symptoms but these almost always include a drop in DMI and immunity. The transition period is the time when cows are most vulnerable to mycotoxins, so some farmers add a mycotoxin binder to the feed as a matter of course.

Metabolic issues such as milk fever and magnesium staggers can result in a slower increase in appetite after calving, so ensuring the diet is well balanced for the appropriate minerals before and after calving will pay dividends. For those with herds prone to milk fever it is worth checking the dietary cation anion balance (DCAB) of the diet, and seeking professional advice where needed.

Another factor that will reduce DMI is heat stress.

All the strategies for minimising the effects of heat stress for high yielding cows are equally important for cows during the transition period.

Immunity in cows can now be measured by taking a blood sample, extracting the neutrophils (white blood cells) and measuring how effective they are at killing pathogens such as E.coli.

Immunity can drop by half during the transition period and takes time to recover after calving. This is a key reason why cows are more vulnerable to infectious diseases such as mastitis in the first few weeks after calving.

Trace minerals such as selenium, copper and zinc, and vitamin E, play key roles in immune function.

Traditionally, cows did not get much in the way of trace mineral supplementation until they joined the milking herd and this is too late to help reduce the drop in immunity. Main-

taining a good trace mineral supplementation programme from the start of the transition period can be very beneficial.

During this period, spending extra money on a high quality organic mineral supplement can make a lot of sense. Just one less case of clinical

mastitis post calving will go a long way towards covering any extra cost.

However, it is important to ensure any product considered is well supported by independent, peer reviewed trial work to show that it will help improve immunity and reduce the incidence of

infectious diseases.

• Trish Lewis is an independent dairy consultant based in New Zealand and the secretary of the New Zealand Association of Ruminant Nutritionists (NZARN).

She recently presented on behalf of Alltech at the Australian Dairy Conference in Queensland.

Trish Lewis

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6/08/12 1:14 PM

Dairy News AUSTRALIA april 2013

28 // technology

Electric fence products energise farm sector Farmers will have enhanced control and protection of their livestock and crops following Massey industrial designer Tony Parker’s latest collaboration with technology company Gallagher, on a top-line series of new products that alert farm workers to potential faults in their electric fencing system.

The system includes the fence energiser with a separate, remotely mounted control panel for convenient access, a portable hand-held fault-finder remote and permanently installed fence monitors that continuously check a zone of paddocks for fence performance. The new system not only powers the electric fence on the farm but also monitors its performance of the fences and, in the event of a fault, reports information back to the user via text messaging.

The innovative system is the result of extensive international research completed by a cross disciplinary team of design, marketing and engineering specialists.

Professor Parker led the industrial design and worked as part of the Gallagher’s project develop-

ment team to bring the products to market.

“All of the fence energiser products exemplify the critical role design plays in creating desirable and internationally competitive manufactured products and services,” Professor Parker said.

Electric fences can occasionally be affected by faults reducing effectiveness due to factors such as rough weather, but Gallagher’s marketing manager Mark Harris says this latest range of products allow “the fence to speak to the farmer” represents the next leap forward in practical electric fence technology.

He describes the innovations for the farming sector as a “game changer” that will allow the farmer to know that electric fences are effective even when they are not around.

A drop in fence performance triggers an alarm, which is displayed on the energiser controller and simultaneously sent to the farmer’s phone via text message. Power to the fence can be turned off remotely to enable repairs and restored using the same devices.

“The consequences for the farmer is that they

know whether the fence is functioning or not,” Mr Harris says.

That was important as scenarios could otherwise develop where bulls got into the same paddock as heifers or livestock invaded maize or other crops.

“Farmers have always had a problem from time to time with fences not working and they usually only know after an animal escapes, but with this technology we can let them know in advance if there is a fault.”

Professor Parker says the project involved many challenges and opportunities.

“Transforming customer requirements and technological possibilities into a desirable system of products is a wicked problem. You cannot calculate the right answer, you have to design the best solution possible using a combination of research, creativity, visualisation, prototyping, critique and testing.”

He stressed the finished products are the result of a multi-disciplinary team approach at Gallagher.

“It’s like being in a really good orchestra but with everyone playing their different part. Sometimes

you’re the composer or conductor, sometimes the lead violinist or the person who has to strike the triangle perfectly at just the right time.”

Professor Parker has previously worked with Gallagher on numerous other world-leading energiser and livestock weighing and electronic identification products.

Professor Tony Parker (below) with designs of the handheld fault finder remote; the fault finder remote on the farm (above).

New range of solar pumps Gippsland Company NRG Innovators Gippsland has released its new WaterBoy Solar Pump range.

The new WaterBoy Solar Pump is a 316 Marine Grade Stainless submersible pump which has very high performance at a realistic price.

“In the past Solar Pumps have been out of reach of most hobby farmers and commercial farmers due to their expensive costs,” director Shane Clayton said.

“Now we have the WaterBoy range we have opened the doors for most of our customers.”

NRG Innovators Gippsland has over 45 years’ combined experience in the industry servicing all of Victoria, and specialises in Off Grid and On Grid Solar Power System, Wind Turbines, Solatube Daylighting Systems, LED lighting and Bamboo Flooring and Solar Streetlights.

Tel. (03) 5655 2887

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

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Dairy NewS AUSTRALIA april 2013

technology // 29

Inside help on herd health Sudesh Kissun

THE DAYS of observing and physically examining each cow to discern abnormal rumen function will soon be a thing of the past, says the developer of the world’s first wireless device to track the health and fertility of cows.

Kahne Animal Health, founded in 2002 by a New Zealand drystock farmer, hopes data collected from trials on different farming systems will quantify benefits of its Sentinel electronic rumen monitor.

Trials begin in June on five farms, each using 300-400 Sentinels.

The device is a sensor in a cigarshaped cylinder inserted into the rumen of a cow. During milking it transmits to the farmer all data collected at five-minute intervals since the previous milking.

The company is also developing a fertility monitoring system called Catalyst.

Kahne general manager Susanne Clay said by the time milking ends, the

Sentinel would have sent the farmer grant from Callaghan Innovation is pivalerts on cows “functioning outside otal to enabling the company to do its large on-farm trials and develop applinormal parameters”.

“The farmer can draft the animal cations, Ms Clay said.

Researchers worldwide have so far aside and start work on early treatbought 500 prototype units. ment,” she said.

Each Sentinel will cost about Ms Clay said farmers wanted an indicator of potential health problems in NZ$100 (A$81) and is expected to last three to four years. cows. “With Different farmers larger herds will see the value of visible obserFarmers will be made the Sentinel differvations are aware of potential ently, Ms Clay said. becoming “For some farmmore diffi- health problems. ers the ability to get cult. We have an indicator of potena lot of things we’re currently measuring on farm: we tial health problems before they manmeasure the inputs and the outputs. ifest themselves and impact animal This is the first time we’re actually mea- health and productivity will drive incresuring where that feed is converted to mental production; for others the focus energy and being able to manage to will be more on improved nutrition management to optimise performance. that.”

“If your animals are in better condiKahne in 2011 assigned engineers and telemetry specialists to develop tion through the year, this should also the Sentinel and Catalyst for commer- provide you with better in-calf rates.

“You can also optimise your supplecialisation.

The recently awarded $1 million mentary feed. Some farmers spend a

lot of money on supplementary feed. If you’re able to optimise that… use that supplementary feed more efficiently, you can increase your production.

“Whether it’s lower input cost or higher productivity, being able to manage that fermentation component should drive value from a number of different areas.

“There is also the potential for decreased use of antibiotics because you are able to identify the animal ear-

lier and minimise the non-production days, and the ability to reduce involuntary culls.

“Those are all key performance indicators that we will be assessing.”

Susanne Clay Inset: the rumen bolus.

Computers withstand toughest conditions Specialist computers for agriculture processing deliver tougher solutions for rural and industrial environments, protecting against liquid, dust, vibration, shock, and heat.

Designed and manufactured to protection standard IP66, FT units from APC Technology are fully sealed, rated to 100°C and available with sealed connectors eliminating all gaps and surface collection points.

This prevents the build-up of debris, making them the ideal solution for hot wash applications and environments where dust and liquid are present, according to the company.

Interface options include: touch screens, wireless options, keyboards and pointing devices.

APC Technology manufactures both a hardware and software solution for specific processing environments.

Process control options offer automated process and humanmachine interface (HMI).

The FT series range of touchscreen Displays & Panel PCs are specifically designed for monitoring and control applications and can be fully customised to meet specific requirements.

As part of APC Technology’s standard build methodology, all FT series units are manufactured using stainless steel and fully sealed to IP66 preventing the ingress of dust and liquids.

The FT unit’s streamline design eliminates collection points preventing the build-up of waste products, reducing cross contamination issues and ensuring increased food safety levels.

A shatterproof, toughened fascia

provides the highest levels of durability plus environmental vibration and shock resilience.

If the display was broken then contaminants would be fully isolated from production. The FT series of display and panel PCs are also designed for high pressure hot wash, chemical sterilisation and supplied with a plus 60°C operating temperature.

APC Technology has an extensive FT series user base worldwide that is supported by our in-house highly qualified technicians.

APC Technology can provide a fully qualified, turnkey solution to meet requirements for a dedicated stand-along workstation and fully integrated production systems.

For more information, visit www. apctechnologycom.au or tel. (08) 8363 0400.

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Servicing ia r o t c i V f o l al

The FT Panel PC in use on site.

Dairy News AUSTRALIA april 2013

30 // machinery & products

Gippsland farmer Campbell Chapman puchased a GoldAcres 2000 litre trailer sprayer.

Trailer sprayer saves time tor. “It handles it well, It’s a little unusual it doesn’t take much to to come across a trailer run it at all,” Mr Chapsprayer on the average man said. “We have a 110 dairy farm; most farmhp Case Maxxum 110 for ers choose to use a threeother jobs.” point linkage set-up. But Mr Chapman and wife Campbell Chapman from Karen are milking 170 Caldermeade, just off the cows in an 18 unit swingSouth Gippsland Highover shed, with automatic way in Victoria’s West cluster removers and Gippsland, has very defistall gates. They have a nite reasons for purchasing a GoldAcres 2000 litre 12-week-old son, Lachlan.

About 18 years ago the trailer sprayer.

24ha beef “We cattle farm had a three was conpoint linkverted to a age sprayer, dairy and which was now covers all right 145ha, with a for spray40ha, leased ing small property, ‘up acreages working clothes the road’. but with chris dingle It’s a onethe smaller man operacapacity you are losing a lot of time tion on this farm, although Mr Chapman’s father, Bob, going back and forth,” Mr helps occasionally.

Chapman said.

Karen helps out when “The main reasons we she can, particularly with went to a trailed unit are that it is easier and quicker feeding the calves, but the last three months have to hook on, the water been harder with Lachlan capacity is much greater and because the load is not coming along.

The Chapmans are curas great you can work it rently putting in a feed pad with a smaller tractor.” that will hold 270 cows.

The sprayer is pow“It’s not easy to milk off ered by a Case CX90 trac-

Who:

Campbell Chapman Where:

Caldermeade What:

GoldAcres trailer sprayer

all the farm, so tracks are being put in to give greater access to paddocks and the feed pad,” Mr Chapman said.

The GoldAcres sprayer has a 12m manual fold boom, with breakaway wings and foam markers.

The sprayer pump delivers 130 litres per minute. A chemical induction system avoids climbing up onto the tank to pour chemical in from drums, and a 60 litre fresh water tank at the front provides automatic flushing out of the lines as Mr Chapman is driving back to the shed.

He specified the tandem axle because of the number of drains on

The sprayer is powered by a Case CX90 tractor.

Campbell and Karen Chapman and their son, Lachlan.

the place. “It rides over a lot better.”

Mr Chapman says that the sprayer is very accurate and easy to clean.

“And the chassis is very strong. The floating boom doesn’t bounce on the drains and it’s very quick to manually fold.”

All the operations and adjustments are done from the cab, except for turning on the foam marker, which Mr Chapman says is not a major issue. “The marker saves a lot of money in chemical, as a pretty basic system – if you can’t follow the blobs, you’ve got a problem.

“We’re close to the bay here and get a fair bit of wind. The GoldAcres sprayer means that we can do more spraying when the conditions are right. I can spray 20ha (50 acres)

with one tank load at 100 litres per hectare.”

The sprayer was purchased through Traf Tractors at nearby Trafalgar, “I’ve bought a lot of stuff from them”, Mr Chapman said. “There have been no hassles with maintenance on the sprayer; we haven’t needed their back-up service at all.”

The installation of the feed pad has slowed things up a bit this season, but perennial ryegrass is about to go in with a Duncan drill, and in some paddocks he will do a preemergent spray.

“Post-emergent spraying is done ‘on demand’ if the amount of weeds calls for it, that will be in autumn and early spring when we lock the paddocks up for silage.”

Other machinery includes two Kuhn mowers, Kuhn power harrows with a Duncan seeder on top and a Duncan Mk1 direct drill.

They also purchased a Shuitemaker feed out wagon through Traf Tractors. They do all the preparation work for their hay and silage, and then get a contractor in for the baling.

“Every year we oversow 200 acres, we’ve had no summer crop for the last

seven years, there’s not enough value in this type of country.”

Mr Chapman said he is hoping to step up to 220 cows over the next 12 to 24 months when his feed pad is completed. The herd is predominantly Holsteins with some cross-breds and the occasional Jersey. “We used to be all Jerseys.”

He said they are in dairying for the long term.

“We’re not worried about the future; there’s been tight times before.”

Dairy NewS AUSTRALIA april 2013

machinery & products // 31

Versatile spreader saves costs The Metalform Tow and Fert

liquid fertiliser mixer/spreader is good for much more than spreading fertiliser.

The Tow and Fert takes liquids and solids, mixes them together with a patented system and then sprays them out with a 14-20m spread via a recirculating boom system.

Metalform says the Tow and Fert is able to mix fine ground lime flour to a mix ratio of 60% lime flour, 40% water and has an application rate of 50 L/ha at 25km/h with TF15 nozzles to 650 L/ha at 5km/h with TF50 nozzles. This means you can mix one tonne of lime flour with 650L of water in one load.

Liquid inputs are pumped in and measured with on-board scales, the dry material is added into the pre-mixer chute at the rear of the machine where the product is then kept mixed by the in-tank agitation system until it comes time to spray on to the pastures.

Functionality comes partly from its easily adjustable design.

All piping and components are held on by a simple Camlock fittings, allowing for easy removal and spray-nozzles are kept in a holder at the front of the sprayer.

New Zealand dairy farmer James Brady, who milks 250 cows off 130ha, spreads magnesium on pastures ahead of the herd to supplement his cows’ diet.

Mr Brady initially purchased the mixer/sprayer to spread magnesium and fertilisers like urea on to pastures and is impressed with how much he can save on fertiliser.

“I can get the same response out of 50kg of urea that I would from 80-90kg spread in the hopper. Because it’s liquefied, the grass leaf takes it up that much better and there’s no leaching or run off.”

Getting the Tow and Fert made it possible to spread supplements on the pasture faster than the quad and hopper he previously used, Mr Brady said.

Tim Henman, Metalform, Melbourne, and Campbell Easton, Metalform, NZ, with the Metalform Tow and Fert liquid fertiliser mixer/ spreader at FarmWorld.

“If you compare a small quad-bike hopper to an 8m boom with an even 18m spread then it’s really a no-brainer.

Spreading magnesium is much faster, which is important given the fairly low

labour pool I have on this farm.”

He has since discovered the implement has many more uses. So far Mr Brady has used it to put urea and 24D onto crops in the spring, spray out efflu-

ent, hose down the cowshed and oversow clover seed in the spring. “I use it for all sorts and it’s surprising what you can do with it.”

Tel. 1300 630 279.

Massey Ferguson adds four new models Massey Ferguson has expanded its current MF7600 series tractors by adding four new models ranging from 140–175hp. Features include awardwinning technology and the latest fuelefficient engines, the company says.

The range of tractors was on display at the FarmWorld field days at Warragul last month.

Phil Ronalds of the machine’s Australian distributor, AGCO, said the 140hp model, which would suit a dairy operation, retailed for $100,000.

The MF7600 range can be specified with either the Dyna-4 and Dyna-6 Eco semi-powershift transmission or the Dyna-VT continuously variable transmission.

All are equipped with the latest AGCO Power e3 engines with Generation 2 selective catalytic reduction (SCR).

Across the range, the cab is said to provide great visibility, more interior

space and greater comfort. Users can choose from three specification levels and new control options to match their requirements.

The four new models expand the range to eight models from 140—235hp, offering lightweight and versatile tractors ideal, typically, for cultivation, crop establishment, top work and haulage.

The company said latest technology AGCO Power e3 engines with Generation 2 selective catalytic reduction reduce fuel consumption and exhaust gas emissions.

Power management on Dyna-6 models boosts engine power by up to 25hp for field and road operations.

There is enhanced cab comfort and visibility from new windscreen, slim bonnet and compact cooling package, while multi-function command control armrests and options of new Multi-pad joystick and Multi-function Joystick.

Phil Ronalds, AGCO area sales manager, with the new Massey Ferguson 7616.

New feature – now with rodent stop

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Contact your local Reese Agri Aitchison dealer for details, or free phone 1800 140 196 Brendan Prentice 0400 540 300 www.reeseagri.com.au

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Dairy News AUSTRALIA april 2013

32 // machinery & products

Total solutions for dairying GEA Farm Technologies

Farmers can slash fertiliser costs by 75% Wayne Bowden,

GEA Farm Technology’s MIone Multibox automated milking system enables you to create a true milking centre, with all features and equipment concentrated in one spot.

A modular system that is economical and animal-friendly, and expands along with your herd.

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from Yarram in Southeast Gippsland, has been contracting for about 24 years with 100 customers on the books and had been thinking about ways to keep his full-time employees going in the quiet season.

“We do the whole lot in contracting: hay and silage, cropping and carting – anything we can make a dollar out of,” Mr Bowden said.

When he was on a silage tour in Wisconsin in 2008 he saw a system of spreading effluent from ponds and decided that it was the direction to expand his business. The umbilical system replaces a tanker and cart arrangement by taking effluent from the pond and leaking it onto pastures with a dribble bar fitted onto a tractor through a long umbilical hose.

“I was ready to order an umbilical system, but wasn’t sure about what pump and agitator to buy,” Mr Bowden said, and then he talked to the team at GEA at Farm World Field Days in 2011.

Based on what he saw, in September 2011 Mr Bowden purchased a 24’ Houle 3-Point Hitch Articulated Agi-Pompe, for stirring up the effluent ponds and transferring the liquid to the main irrigation pump. The irrigation pump is a trailer-mounted Houle high pressure PTO booster pump. This pump transfers the effluent through a 1.6km hose to a toolbar which distributes the effluent.

This configuration is known as “force feed-

GEA Farm Technologies See the future

Wayne Bowden with a 24’ Houle 3-Point Hitch Articulated Agi-Pompe.

Who:

Wayne Bowden Where:

Yarram What:

effluent spreader

ing”. The big benefit is that the main high pressure pump does not need to be primed. Priming issues with high pressure Contractor Wayne Bowden spreads the load from effluent pumps in systems like this ponds onto pasture. are common, especially in deep ponds with thick only time the tractor is zon. In that time they had manure. The force feed really working is when we system ensures that down- spread the manure over are stirring up the ponds.

50ha of paddocks. time related to priming of “The agitator ability The Agi-Pompe is run pumps is kept to a miniis unbemum.

Mr Bowden “Some of his customers tell him lievable,” he said. said the Houle “We can sealing system they are saving 60-75% of their nutrient input costs.” blast water impressed at 15,000 him. “The litres per minute when by a Massey Ferguson greased sealing system is 6490, the booster pump is agitating or to transfer really good – some others from one pond to another, are ceramic seals and they powered by the PTO on a Massey Ferguson 3635, and thicker one to dilute the don’t last. The booster effluent. When we are a Massey Ferguson 7485 pump doesn’t need primforce feeding, it’s easy to with front linkage was ing because of the feed pump at about 2,000 to operating the dribble bar, from the agitator.

2,750 litres per minute to with lay flat hoses.

“Efficiency of the feed the booster pump and Mr Bowden said the pumps is as good as I whole arrangement is very send the effluent to the expected.” spreading toolbar.” fuel efficient; “When all Mr Bowden and his When spreading three tractors are workteam were working for a manure onto the pading we only use about customer on an 800-cow docks, they have devel400 litres to pump out dairy farm at the time oped a system of starting one megalitre of effluent of our visit in late Januat the far side of the padand spread it onto 10ha ary. They had been there dock, reeling the hose in four days and had cleaned of paddock. All the tracwith a reel mounted on the tors are just ticking over out 4.5 megalitres from front linkage to keep the – 1700rpm on the booster the effluent pond, includhose straight. The dribble pump, 1200rpm on the ing a lot of stirring, and bar technique, as Wayne Agi-Pompe and 1200rpm with short days because explained, allows the on the dribble bar. The of bushfires on the hori-

manure to leak through the pasture canopy to where it is utilised more quickly.

They tow an Atlas Copco XAS90 portable compressor to the farm to blow out the umbilical hose when they’ve finished.

“On one farm we pumped up to a 110m elevation through the 1.6kms of hose – and at 90,000 litres per hour.”

So far they have looked after the effluent removal for 20 to 30 farmers with the Houle equipment and Mr Bowden explained farmers are starting to realise the value of what’s in their pond, because they can see instant results.

He believes there is huge nutrient value in putting the effluent onto paddocks and farmers are reducing the need for fertiliser.

Some of his customers tell him they are saving 60-75% of their nutrient input costs.

“For one customer we emptied nine megalitres of effluent ponds in six days’ work and while we were still there you could see a difference in the paddocks. Most blokes wait about a week before putting the cows on the paddocks where we’ve spread the manure.”

“Every farmer that we have done this effluent removal for, we’ve been invited back. This may just become a bigger part of our business than hay and silage!”

Dairy NewS AUSTRALIA april 2013

machinery & products // 33

Direct fertilisation sets ideal conditions The Pöttinger

series of Terrasem mulch seed drills now has the capacity to directly fertilise.

The company says direct fertilisation technology enables micro and macro nutrients to be placed at the same time as the seed grain.

Optimum growth conditions are created during the early phase of seed growth as a result, increasing the potential performance of the crop.

Fertiliser can be applied on the Terrasem through a row of DualDisc Exakt coulters. This method involves placing fertiliser between each double seed row using the coulters mounted behind the compact harrow unit integrated into the Ter-

rasem seed drill.

The fertiliser placement depth (up to 10 cm) can be adjusted independently of cultivating and sowing depths. The surface is then consolidated across the whole working width before the seed is drilled.

The Dual-Disc Exakt coulter thus places a deposit of fertiliser in a perfect position to nourish the roots of the seed. Not only does this save fertiliser and minimise unproductive losses, it also promotes faster development of the root mass and contributes long-term to optimum yield.

The company says an additional advantage of direct fertilisation is that in difficult ground conditions only one pass is

necessary, providing maximum protection of the soil.

Plus, there is the advantage of being able to complete the full drilling and start fertilising process quickly and effectively in a single pass as soon as an opportunity presents itself.

The decision whether direct fertilisation should be applied depends mainly

on the structure of the soil, the crop and the precipitation patterns in each region.

Pöttinger fully supports the trend in direct fertilisation: in the face of increasing fertiliser prices, new types of fertiliser, new fertiliser regulations and environmental legislation, it pays to employ precision fertiliser management in future.

Greg Quick of Poettinger Australia with the Pottinger Terrasem C4 mulch seed drill.

Red Hot deals on Mid-sized tRactoRs

Now’s the time to get a special price on mid-sized tractors from Case IH. And, with our 3.9% p.a. finance offer,* talking to your local Case IH dealer about a tractor to suit your needs could really pay off. Visit www.caseih.com for more information.

check out some of these special retail prices available before 31st May 2013:

Arctic Cat turns heads It was Arctic Cat’s first official release to the public at the recent Farmworld Field Days held in Gippsland last month. The American manufacturer showed 16 of the 20 models that will complete the Australian line-up of ATVs and Side by Side vehicles.

“There was great interest shown in the build quality of the ATV range and the unique features of our twin seat, TRV, models and our utility tilt tray 700TBX,” said brand manager Simon Gloyne.

“Customers were impressed to see digital displays featuring fuel gauges on the full line up and were most impressed with the $7990 price on our entry level 4WD model, the Arctic Cat 450 ATV.” The Arctic Cat 550XT featuring 2WD/4WD, starts selling at $15,490. It has 2” tow bar hitches on the front and rear with a tow rating of 680kg, 14inch alloy rims and a 272kg rated hydraulic tilt tray.

“The Arctic Cat 700 HDX side by side was probably the show stopper, with all the standard Arctic Cat features, the 700 HDX Side by side sets itself apart with a large 465kg load rated tilt tray, a three seater bench seat, extra storage and longer wheel base for stability,” Mr Gloyne said.

Arctic Cat Australia has invested heavily in the brand and is now concentrating on building a strong dealer network across Australia.

Visit www.arcticcataustralia.com.au

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*Terms and conditions apply. Special retail prices at participating dealers on selected models until 31st May 2013 or while stocks last. Advertised prices do not include GST. Photographs are for illustrative purposes only and may show features or accessories not included in the advertised price. Tractor prices vary by model and specifications.

Finance is provided by CNH Capital to approved business applicants only. Advertised finance rate based on 30% deposit, 36 months, annual or monthly repayments. Special prices and finance rate may be available on tractor models not specified in this advertisement. For more information talk to your local Case IH dealer.

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Dairy News AUSTRALIA april 2013

34 // machinery & products

Silage block cutter keeps stack fresher, eliminates wastage gareth gillatt

A SILAGE block cutter is helping a New Zealand farmer keep his silage stack fresher and has eliminated wastage, says machine importer Webbline.

Nelson Pyper runs a dairy grazing property in Southland running 450 heifer calves and 450 cows on 160ha.

Last season Mr Pyper set up a wintering barn, in which he now also houses his heifers during the summer months.

While it isn’t common for dairy grazers to feed heifers in this way, Mr Pyper says feeding supplements to the young stock is a useful way to maintain pasture quality, especially in early summer when the region is prone

to wet conditions. “Heifers tend to walk up and down a bit when eating, that’s why feeding out supplement in the barn is so much more important.

The animals seem to do better as well.”

Mr Pyper grows 130ha of silage, cut three times a year, and until four months ago was worried about how much of the nutritional value of the stack was

wasted by forks. “Forks loosen the stack and let the quality of the silage deteriorate; that’s the biggest problem with silage in the stack.”

“It’s stupid going to the trouble of making good silage then letting it deteriorate because the forks you’re using lets air into the stack because its loose.”

Mr Pyper bought a BvL

The silage stack face is still as hard as a rock.

The rhythm of life

Top Star silage block cutter method, there is no levering action on the loader, to combat this and says the difference in the silage resulting in almost zero stack has been remarkable. wastage on the stack face.

Pyper’s stock manager “It takes a slab out of the Alan Pyper says stack and the face is still as “It takes a it is a lot easier the loader and hard as a rock. slab out of on he easily cuts out It’s effectively the stack 1000kg of silage cutting out all and the each time, meanthat waste.”

In contrast face is still ing less trips fill his mixer to standard as hard as to wagon. shear grabs and A 1.65m3 silage silage grabs that a rock. It’s dig in and drag effectively block cutter feed away from cutting needs very little the stack, the flow which out all that oil BvL Top Star can easily be supwaste.” slices a clean plied by most block downwards from tractor and loader hydrauthe top of the stack, using lic systems. a double blade-scissor Mr Pyper says the action, preventing air from farm’s 90hp Merlo loader getting to the rest of the barely breaks a sweat when stack. loading silage.

Webbline says with this Tel. 1800 125 500

YOUR OWN RHYTHM With the Lely Astronaut milking robot every cow has its own rhythm. They can decide whether they would like to eat, rest, or be milked. That gives you the flexibility to manage your own time without fixed routines.

Difference in silage stack has been remarkable, says Nelson Pyper.

For more information, visit www.lely.com

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