Dairy News Australia May 2013

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Burra predicts higher farmgate prices Burra Foods has forecast an increase of up to

SA Dairyfarmers president Joe Basham has held talks with Australian Dairy Farmers. PG.09

Joe and Anna Lenssen built the world’s first rotary swing-over dairy on their Cobham farm. PG.22

Scott and Belinda McKillop have lifted herd numbers, production through maximising pasture in north east Victoria. PG.26

News ������������������������������������������������������3-13 Opinion ���������������������������������������������� 14-15 Agribusiness ������������������������������ 16-17 ABVs ����������������������������������������������������� 18-21 management �������������������������������22-26 Animal Health �������������������������� 27-30 Machinery & Products ��������������������������������������� 31-34

20% in next season’s opening farmgate milk price.

The South Gippsland processor opened last season at $4.55 a kilogram of milk solids and forecast a closing price of $4.80-$5/kg MS. Early this month the company announced its fourth step up for the season, with increases of 6c/ kg fat and 15c/kg protein lifting its price to $5.15/ kg MS. Burra chief executive Grant Crothers said the dairy market has experienced unprecedented price movements across the main dairy commodities as a direct result of weather events impacting supply.

Looking towards the full season price, Mr Crothers said the improved market conditions would remain for the short term at least, reflecting in an increase of up to 20% to next season’s opening price for Burra Foods’ milk supply partners However, he said the continued strength of the Australian dollar continues to be the limiting factor.

“While much has been said about the resilience of the Australian dollar against the US dollar and its impact on returns, Australia’s largest dairy customer, Japan, has seen a 20% devaluation of their

Andrew Schulz was recently named Employee of the Year at the Great South West Dairy Awards in recognition of his four years as farm manager on Bryan and Jo Dickson’s farm at Glenfyne in south-west Victoria.

In that time he has helped the farm to double production, improve its bulk milk cell count, reproduction rates and overall animal health. PG 27

currency over the last nine months which places significant pressure on affordability of imported foods,” Mr Crothers said.

“The joy of Asian markets are the growth opportunities as dairy is not a staple but that brings with it a question of affordability and at high local currency price points consumers will quickly turn to alternative sources of fat and protein.”

Global dairy prices have eased from recent highs and the recent rain in New Zealand is partly responsible. The first Global Dairy Trade (GDT) auction of the month saw the trade weighted index drop 7.3% as a direct result of the rain.

However, prices are still significantly higher than they were this time last year.

Bank of New Zealand economist Doug Steel said the rain has severely lessened the supply risk out of New Zealand, the largest exporter of dairy products.

Mr Steel is not surprised by the recent drop in the GDT and said the big factor in nine consecutive price rises was supply concerns out of New Zealand.

“While this won’t turn around quickly, the rain has certainly lessened the supply risk for longer

term contracts,” he said.

Despite the drop, global dairy prices remain high. Prices have risen 60% since December and a 7.3% drop is not a surprise, Mr Steel said. And they could drop further as Northern Hemisphere supply enters the market. But the drop will be small as strong demand from China and flat supply from Europe, the US and Australia keep a squeeze on supply.

Westpac economist Nathan Penny agreed prices would drop further. Prices for the new season’s product (contracts for delivery in four to six months time) now account for the majority of products on offer, he said.

“Accordingly, as the new season’s product continues to replace this season’s drought-hit offerings, prices should drop further.

“From here, we expect world dairy prices to descend further from their peak, but to remain at elevated levels by historical standards.”

Fonterra’s next GDT auction will be on May 15.

The GDT-TWI is now 1580 compared with 894 at the same time a year ago, and represents a 77% gain over that time, despite last week’s fall. The index peaked at 1704 on April 16.

Dairy News AUSTRALIA may 2013

4 // news

Fonterra: Take our milk but at the right price SUDESH KISSUN

AUSTRALLIAN FARMERS supplying

milk to Fonterra are reaffirming their commitment to the co-op – provided the price remains right.

Competition for farmgate milk is heating up in Australia as the country’s biggest processor Murray Goulburn this month announced a 10-year direct supply deal with supermarket chain Coles.

Bonlac Supply Company, whose 1200

farmers supply Fonterra factories in Victoria and Tasmania, is confident suppliers would not switch to Murray Goulburn. BSC‘s deal with Fonterra has a clause stipulating the co-op must pay its suppliers “equal to or greater than” the largest Australian dairy company.

BSC chairman Tony Marwood said the Coles deal has caused a rebirth of MG. The co-op will aggressively call for new suppliers.

Marwood says it’s widely accepted that MG

is the milk price setter in Australia. “So, our agreement with Fonterra is itself protection of the milk supply base. As long as we get equal or greater than Murray Goulburn, the supply base is intact.”

But he admits competition for Australian milk at the farmgate will get tougher. “The milk supply base is not growing. Everybody wants more milk and it will be increasing your supply at the expense of the processors.”

Marwood says every year BCS “lose and gain

some suppliers”. But he’s confident there won’t be a drop in milk supply to Fonterra.

Marwood says it’s too early to know if MG’s deal with Coles will translate into a big lift in milk payout.

Marwood says most farmers are struggling to break even.

Under MG’s 10-year deal with Coles, it will process and supply the retailer’s house-branded milk from July 1, next year. As part of the deal MG will spend A$120 million on two factories in

Melbourne and Sydney to supply the supermarket giant’s stores.

MG has already notified its 2480 farmer supplier-shareholders that the Coles contract locks in a premium that will deliver additional profits from July 2014.

United Dairyfarmers of Victoria president Kerry Callow says it’s heartening to see that Coles had listened to the UDV and Australian dairy farmers, who have campaigned for two years to try to get farmers a better deal in the fresh milk market.

“We’ve heard lots of arguments from processors and Coles claiming they’re not paying farmers any less. Dealing direct means our nation’s largest dairy farmer cooperative finally gets a clear view of what Coles is paying – true transparency.”

Marwood says the deal augurs well for the industry. “It has been very difficult for any commodity to have a good relationship with the supermarkets. The deal

Tony Marwood

develops a relationship between Coles and the dairy industry.”

Critic says MG on the right track accounts,” he said.

“We lost a lot of the fresh milk market in Sydney and Canberra which nearly destroyed the company, so this deal should be good for us. But Coles are very smart operators so I hope the deal is not too much in their favour.”

The 58-year old farmer, who plans to boost his cow numbers at Koroit from 500 to 600 next year and maintains an interest in a dairy farm at Maffra, has strong opinions about where MG should be heading.

“They should take over Warrnambool Cheese and Butter and they should build a cheese plant at Mount Gambier. We’ve got the milk here and we should try to get into the Adelaide market.”

Paton hopes MG will offer a starting price of $6 this season and “if not we’ll be marching down the street”.

“Things are looking much better than they were a year ago so I’m fairly confident.”

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Murray Goulburn’s most outspoken critics, Koroit dairy farmer and former long-term MG site manager Tom Paton believes the cooperative is now making positive headway.

Paton, who managed most of MG’s sites over his 30-year career, said it was “definitely on the right track now” but warned “we can’t afford another hiccup”.

Paton said the cooperative had been plagued by “20 years of terrible decisions” but was turning the tide through a new 10-year deal with Coles and revival of Devondale-branded milk.

MG has signed a 10-year agreement to supply fresh milk to Coles for its private market.

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Dairy NewS AUSTRALIA may 2013

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Dairy Farmers considers options Lion has told its suppliers it will

fight “tooth and nail” to remain in the dairy industry.

The international processor has been seen as the biggest loser from Murray Goulburn’s 10-year agreement to supply fresh milk to Coles for its private label.

The deal will begin from July, 2014 and includes the NSW-based cooperative Norco, on a fiveyear deal, which will supply milk from northern NSW and southern Queensland.

The two cooperatives replace current house-brand suppliers Parmalat and Lion in those states. Lion has gone from supplying 100% of NSW milk and 75% of Victorian milk to Coles, to retaining its contract of supplying 78% of the Queensland market.

As non-Murray Goulburn suppliers consider how the move – and Murray Goulburn’s desire to recruit more suppliers in NSW – will affect them, Lion had a clear message to its own suppliers.

In a letter to farmers, Lion agricultural procurement boss, Murray Jeffrey, said: “We have always honoured all contracts with our suppliers and we expect the same from you.”

Contracted suppliers would be “held to their agreements” he said.

Murray Goulburn is already seeking out potential new members in

milk that was above Lion’s needs,” Lion’s traditional territory in NSW, DFMC chairman Ian Zandstra said. including the Southern Highlands, “Every effort must be made to South Coast and Hunter Valley to avoid a repeat of that economic dissupply the factory. location upon farmers.”

Eighteen months ago Lion lost Mr Zandstra said the DFMC the Woolworths private label botand its suppliers have “many, many tling contract in NSW to Parmalat months to decide how to adjust”. forcing it to dramatically cut milk “Milk supplies have tightened intake needs from farm suppliers in these northern states, demand and pay just 16 cents a litre for suris strong and southern commodplus milk. ity prices are In a predicted to be statement, “We have always stronger next Lion CEO Stuart Irvine honoured all contracts year so there said: “Previous with our suppliers and are positive trends for our experience we expect the same farmers. demonstrates “The board that changes in from you.” – Lion of DFMC met these contracts recently to discuss the implication can cause significant disruption of the Coles decision on both the for farmers, and we are still in the cooperative’s business objectives process of assessing the impact and on our 1000 plus members. on our business and the most “Our philosophies and goals are appropriate way forward”. strong; DFMC is chartered to act The Dairy Farmers Milk Coin the best interests of our memoperative, which supplies Lion, has bers and their aggregated milk. We said the situation is reminiscent of are not a profit making entity and the change of Woolworths’ conreceive no margin on the sale of our tract from Lion and Parmalat in members’ milk.

Queensland and NSW in 2010/11.

“DFMC will seek to engage and “It resulted in major disruptalk openly to all key stakeholders in tion for farmers, with some farmthe industry, to ensure our suppliers having no home for their milk, the switching of other farmers, a dis- ers have a home for their milk either as a national collective or in regional tressed market with a fall in milk hubs to meet the needs of the changprice, milk contract cuts and the introduction of T2 (tier 2) pricing on ing dairy landscape.”

Queensland farmers John and Chris Kunde

Farmers voting with their feet Darling Downs producer Chris Kunde knows of eight farmers in his region planning to quit the industry over the next few months.

“Everyone is looking around to see who is next to go. There is just no confidence in the future,” Mr Kunde said.

A lot of farmers are very nervous not knowing what their future supply arrangements are going to be from next year,” said the Lion supplier from Cambooya.

After being threatened with tier one cuts and a tier two price of just 15 cents a litre last year, the loss of Lion supply contracts to Murray Goulburn and Norco next July is looming as another heavy blow.

With tightening milk supplies, the cuts have been put on hold in the short term, but Mr Kunde said the uncertainty was taking a heavy toll.

“Lion never tells us much. We just

don’t know what is going to happen,” said Mr Kunde.

Queensland is already short of milk and it’s going to get shorter, but how much milk is Lion going to need once the Coles contract goes?”

He worries that the new marketing arrangement is dragging prices down with Murray Goulburn and Norco getting the offset of increased market for their manufactured products.

“Norco has quite a few suppliers on the Darling Downs. They will be taking on more, but they’ll be able to choose from a long list of people wanting to join them,” said Mr Kunde who is one of more than 1000 suppliers to Lion through Dairy Farmers Milk Cooperative.

In a letter to members, DFMC chairman Ian Zandstra said the co-op was already in negotiations with Lion to roll over contracts which are in place until 2019.

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6 // news

Woolworths boosts order from direct supply group The group of seven NSW dairy

farmers contracted to supply Woolworths direct has already been asked to supply additional milk.

The group of farmers from Taree in northern NSW has been asked to increase its initial requirement of 54 million litres by 10 million litres.

The request was made after Coles announced its 10-year deal with Murray Goulburn.

The farmers will supply milk for a new Woolworths brand called Farmers Own and the Australian Competition and Consumer Commission has granted permission for price talks.

Farmers Own is expected to be sold between the $1-a-litre house-brand milk and the price of branded milk.

The move by the small Taree group of suppliers has been quite controversial throughout the industry.

Dairy Farmers Milk Cooperative chairman Ian Zandstra said speaking as farmers, it is hard to criticise a model that potentially will give farmers a better milk price.

“But as with $1 milk it is what it does to the whole industry and supply chain that farmers should be concerned about and speak up about,” he told suppliers in a letter.

Murray Goulburn increases WCB stake Murray Goulburn bought an additional 1.2 million

shares in Warrnambool Cheese and Butter Factory (WCB) last month, increasing its investment in the company to 14.5% MG managing director Gary Helou said the purchase was “a strategic investment”.

“There is no current intention to make a takeover offer for WCB, nor do we currently intend to seek board representation,” he said.

“The acquisition of these additional shares and the increase in our stake to 14.5% is a reconfirmation of Murray Goulburn’s commitment to its long-term investment in WCB.” Murray Goulburn also announces it is willing, for a limited period, to acquire additional shares in WCB at the same price as paid for the stake acquired last week - $4.60 per share.

The maximum MG can acquire under the Corporations Act consistent without making a takeover offer is 19.9% of WCB. Mr Helou said there was no assurance MG would acquire any further shares in WCB. He said the co-op was satisfied with its 14.5% stake.

The price represents a premium of 18% to WCB’s 30 day Volume Weighted Average Price (VWAP), a 23% premium to WCB’s 6 month VWAP and a 25% premium to WCB’s 12 month VWAP. It is a 16% premium to WCB’s last closing price of $3.98.

“DFMC has a genuine concern about this theme of blaming the middleman, the processors, increasing pressure on the supply chain.

“It implies farmer problems are from excessive processor margins.

“For a more balanced view it comes back to the fact it is the big processors that look after lots of farmers with lots of milk to get to lots of consumers (50% outside of retailers) and that is where a sustainable market should focus, rather than a special deal for some.”

Mr Zandstra said the Woolworths deal might mean some increased milk prices for some farmers, but does not

address the value degradation of retailer’s behaviour.

“It is brand value that sustains the industry. Woolworths is not the leader on $1 milk, but $1 milk has changed the whole value mix of the industry, less money to go around. A better way would be to lift all milk prices.”

Mr Zandstra said the DMFC was not an apologist for processors, but it is partners with Lion in a supply chain “that is getting another bruising”.

“Deals have to be done for the betterment of all in dairy. It is in this market that Lion has no return on capital (as maybe with others) in the milk divi-

sion, low EBIT margins and has written off approximately two billion dollars.”

DFMC has registered the brand, “Farmers First”, with the by-line “we treat our farmers better”.

Mr Zandstra said DMFC had no immediate plans for the brand but said it gave them options and flexibility in the future and that space of farmer provenance is very readily being taken up by retailers.

“The most powerful farmer milk brand is still ‘Dairy Farmers’. Should we need to be more aggressive to protect our members, we will consider all options,” he said.

Lion could reduce Vic milk requirements Western

Victorian

dairy farmers supplying Lion have been notified the company could drop its current requirement of milk from the area by 21%.

In a letter to suppliers, Dairy Farmers Milk Cooperative chairman Ian Zandstra said there could be a decrease due to further rationalisation of Lion’s mainland cheese business, but despite earlier signals, this was not certain.

There is also uncertainty for Lion’s northern Victorian and Riverina suppliers, according to Mr Zandstra.

Lion’s Woolworths contract is up for tender, the outcome of which will be known before June.

“Clearly there are new factors in the Woolworths contract arrangements now they

are talking of direct farmer deals,” Mr Zandstra said. “We are in close talks with Lion as to the outcomes of this Woolworths strategy.”

Mr Zandstra told suppliers it is anticipated that tier 1 pricing will be stable in the northern regions. He said southern pricing would reflect the competitive landscape which would mean an anticipation of what MG might pay on an annual 2013/14 basis. MG has come out with positive messages for next year, he said.

Next year’s Tier 2 (T2) pricing will be announced shortly but Mr Zandstra said there should be no T2 in the south while the T2 price will be considerably higher in south east Queensland and NSW. “There will be fewer T2 months, perhaps only spring

Ian Zandstra

months,” he told suppliers.

“There will be less excess milk because some farmers have exited and some farmers who had excess milk have now traded contracts.”

That still means that if there is regional excess milk, all farmers with milk above contract will have T2 (after allowing for the 10%), he said.

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Mr Zandstra said the rises in the Global Dairy Trade Price Index was positive for farmers.

“These sales are virtually spot prices at a time of low volume, not a lot of product being offered,” he said.

“However futures markets are stronger as well so next year could see a considerable increase in southern pricing.”

Dairy NewS AUSTRALIA may 2013

news // 7

Fodder shortage looms with winter on horizon A dry summer, no autumn break and cooling conditions across south-east Australia has placed pressure on farmers and put fodder in high demand.

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

In its latest drought statement, the bureau said the seven months to April 30 were the driest on record for parts of western Victoria, South Gippsland and South Australia’s south east.

The autumn break has arrived in isolated pockets although in most areas it remains elusive with no significant falls to prompt pasture growth or reduce feeding.

Temperatures have also dropped significantly in the last week, reducing the

chance of pasture growth even if there is rain.

Dairy farmers in south-west Victoria are starting to feel the pinch of the prolonged dry spell.

Heytesbury District Landcare facilitator Geoff Rollinson said farmers were commenting on the lack of subsoil moisture.

“It’s really unusual for this time of year. We’ve gone without much rain since October and a number of farmers have had to change their fertiliser regime because of it,” Mr Rollinson said.

Deteriorating weather conditions across South Australian dairying regions are starting to seriously impact on the State’s milk production.

South Australian Dairy Farmers

president David Basham said the season had been shocking.

“There was about an inch of rain three weeks ago and before that you had to go back to last October,” he said.

“We badly need follow-up for crops and pastures which are really suffering.”

Mr Basham said hay supplies were running extremely low.

“It’s not so much a question of what price, there just isn’t any fodder available. The situation is becoming quite desperate,” he said.

The key dairy areas in southern Australia are now starting to increase demand for all fodder types and prices are expected to follow suit in the next month to six weeks as temperatures continue to drop, according to the Aus-

tralian Fodder Industry Association.

Dairy farmers across Australia have already been dipping into their hay and silage reserves and are being forced to pay much more for replacements.

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

Australian Fodder Industry Association industry development manager, Caitlin Scholfield, said that 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, Ms Scholfield said.

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,” Ms Scholfield said.

“High quality stocks are being 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.

Standing in a green drought It looks green at first glance as you drive around Gippsland but on closer inspection there isn’t much pasture in the paddocks.

“We’re in a green drought,” Kongwak farmer Brian Anderson says. “It looks alright but there’s not enough there.

“It’s not growing quick enough after the cows eat it.

Mr Anderson said his southern Gippsland property experienced an extremely wet winter, followed by a short spring before a hot summer.

“We had a reasonable amount of wind during summer and autumn too. We had a warm wind from the north west at one stage that blew for too long and dried out and burnt what we had.

“We haven’t had one big rain to set us up.”

Mr Anderson said rain in Gippsland in the last few years has been more patchy and varied than in the past.

“You either get it or seem to miss out. We don’t seem to get the amount others close by get.

“Inverloch could get rain but 10km away they would not get anything.

Twenty years ago, showers would come across one after the other.”

Mr Anderson said wet winters and short springs bring their own pain as there is not enough recovery time.

“We’ve been cutting into our winter feed, and it’s going to be harder to find it later on because everyone is using more.

“It’ll also be more costly.”

Coles deal sours relationships The new Coles milk deal has divided the dairy industry and set back relations between producers and processors, farmer leader Brian Tessmann said this week.

The Queensland Dairyfarmers Organisation president said initiatives for the sectors to work together had now been soured as a result of Lion being dumped in favour of Murray Goulburn and Norco.

“There is a lot of suspicion and division now. With no detail on the new arrangements coming out, we can only speculate,” Mr Tessmann said.

“It’s been a great propaganda exercise for Coles which has created the illusion that farmers are going to get a

premium while it has no intention of changing its $1 a litre Brian Tessman policy.

“There is plenty of uncertainty and sleepless nights with farmers who are continuing to leave the industry.

“What is the future for Lion which is being driven into the ground and its supplier groups?

“In the north we need some clarity on how Lion’s excess milk will transition to Norco. This needs to be worked through before the new arrangements come into effect next year,” Mr Tessmann said.

Brian Anderson on his South Gippsland property.

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8 // news

GA targets US farmers Genetics Australia admits

it’s like selling “coals to Newcastle” but says the decision to export Australian genetics to the US will help both diversify and contribute to the co-op’s income stream.

Genetics Australia (GA) has joined forces

with the largest independently owned and operated US-based AI genetics company, Taurus Service Inc, to distribute Australian dairy genetics in North America.

The alliance gives US and Canadian dairy farmers access to leading Australian dairy sires and

reverses the long trend of Australia importing dairy genetics from North America.

GA export marketing manager, Rob Derksen, said Australian genetics would suit US and Canadian dairy farmers interested in grazing, cross breeding and

outcross sires.

“The flow of genetics has been a one way street for many years and it is long overdue that some of the top genetics developed by Genetics Australia go back to the Northern Hemisphere,” Mr Derksen said.

Mr Derksen said the

Australian dairy industry was ideally placed to satisfy the growing global demand for dairy genetics capable of producing a medium size, functional cow suitable for long term, efficient milk production.

“Genetics Australia has been progeny testing for over 50 years under

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Rob Derksen

the diverse and often harsh dairy conditions in Australia and it is not surprising that Australian proven bulls dominate the top local bull lists,” he said.

Taurus president and CEO Dick Witter said Taurus was keen to include the best Australian genetics in their product range. Genetics Australia bulls will be included in a new Taurus “New Age Sires” program soon to be released. GA hopes semen will be available in the US next month.

Mr Witter predicted Holsteins, Jerseys and red cattle would all be of interest to North American farmers.

“The Aussie Red was developed over 30 years ago by blending the strengths of Scandinavian genetics over the Australian Illawarra Shorthorn,” he said.

“This breed is an ideal option for those farmers interested in cross breeding or following a three way cross breeding strategy.”

Mr Derksen said the North American alliance followed recent announcements of alliances with Sterling Sires in the UK, and with Xseed in South Africa.

“South Africa has been our most successful market for many years for Genetics Australia,” Mr Derksen said. “More than 100,000 straws of Austra-

lian Jersey bull BADGER have been exported to South Africa in the past so we are very pleased to see that a recent agreement between DAFF and South African authorities will allow the entry of Australian genetics.”

GA has significantly bolstered its international export program over the past 18 months, including appointing Fred Bowman as Latin American business manager late last year.

Mr Derksen said having someone fluent in Spanish in Latin America has helped enormously and they hope to export to Argentina and Brazil – both pasture-based dairy systems like Australia soon.

It has also recently exported dairy genetics to Uruguay, Thailand, Costa Rica, Brazil and Sudan.

Mr Derksen has been charged with identifying countries with export potential and opening dialogue and establishing export protocols, which Mr Derksen said was a time-consuming and often frustrating task.

“You may think if you’re EU-qualified, which is the gold standard of export protocols, then you would be qualified to export anywhere,” Mr Derksen said. “That’s not the case unfortunately.”

GA is also planning to export live bulls to China in the future.

Dairy NewS AUSTRALIA may 2013

news // 9

Qld, SA in talks on ADF future before Christmas.

“This first meeting was very much a fact finding exercise and it’s Talks in Queensland still very early days yet. If and South Australia early it happens (re-joining) it this month have raised happens,” he said. hopes that Australian “We believe in Dairy Farmers (ADF) having a strong national could again be a national organisation and we representative body. are trying to find a way South Australian forward while at the Dairy Farmers (SADA) same time protecting the was expelled from the interests ADF last of South year and the Australian Queensland Dairyfarmers State-based farmers.”

Mr Organisation groups are Basham said (QDO) in the best financial has given issues were a notice of position consideration resignation, to deal for SADA effective next with their with fears February. respective that there The recent ADF governments could be rises in restructure to get the membership has been at best overall fees under the heart of outcome for a proposed the unrest constitutional from the two the industry. state bodies – David Basham change.

“We with South believe Australia it is our signalling democratic its intention right to ask questions and to resign before it was we still don’t believe we expelled. have done anything to Since the restructure, warrant expulsion.

ADF has a smaller “We put our national board (without a resignation notice on the representative from each table and the ADF decided state), a national board we should go.” sitting beneath it and He said the ADF policy advisory councils. needed to recognise the SADA was originally importance of having removed from the every state represented national body last July as so many dairy issues when ADF members were the subject of state decided at a board legislation. meeting that it had State-based groups engaged in conduct were in the best position prejudicial to ADF. to deal with their SADA was removed respective governments from ADF immediately. to get the best overall At the time, ADF said outcome for the industry, concerns of prejudicial Mr Basham said. contact were raised with QDO president Brian SADA the previous May. Tessmann said the At the time, SADA meeting with the ADF denied it acted in a manner ‘prejudicial’ to the team in Brisbane was a step forward. interests of ADF. “We do have some An independent mediator held preliminary issues with the structural changes to the ADF, but talks with SADA this month (May 8) while ADF I don’t think these are insurmountable.” president Noel Campbell The QDO was also led a delegation which unhappy with the met with the QDO in expulsion of South Brisbane the day before.

Australia.

SADA president David “We definitely believe Basham said mediation it was not the right thing has been planned since Gordon Collie

to do and that South Australia needs to be engaged in finding a way forward. The delay in getting mediation started has been frustrating.”

“At this stage, we are hopeful that the ADF can again become a national

representative body. The fact that people are now talking is positive, but we are not there yet,” Mr Tessmann said.

SA Dairy Farmers Association president David Basham.

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Dairy News AUSTRALIA may 2013

10 // news

Dragon too much for New Katter introduces Zealand to handle alone fair milk bill Bob Chinese demand for New Zealand dairy products has well and truly “kicked”, however there is not enough Kiwi supply to satisfy “the dragon’s” increasing consumption needs, providing opportunities for Australian dairy exports, according to a Rabobank dairy expert touring regional Victoria earlier this month.

Visiting from Christchurch, Rabobank director of Dairy Research New Zealand and Asia, Hayley Moynihan presented to local farmers on the Sino-NZ dairy trade relationship, highlighting where the Australian industry can gain increased international market share.

Ms Moynihan said Chinese demand for dairy products had sharply increased with prices skyrocketing by more than 50% over the past two months.

“This price spike has been

driven in large part by the New market forces have prevailed.

Zealand drought limiting pro- Regarding the free trade agreeduction potential for export, ment (FTA) between New Zeahowever this event shows how land and China, Ms Moynihan tight global markets are right said while the arrangement allowed a specified volume now,” she said.

“When there is no buffer of New Zealand product into China tarfor a supply iff-free, tarshock, mariffs still apply kets respond “The FTA isn’t on exports with high dictating overall above this prices. This level. is a ‘here and competitiveness for New Zealand.”

“In reality, now’ story.” the FTA isn’t Although dictating dairy commodity prices have eased overall competiveness for slightly since the peak in New Zealand, as the tariffthe recent spike, Ms Moyni- free volumes only represent han expects the market will around one fifth of the volume remain at elevated levels that China is importing – until more product is deliv- Australia is in a great position ered around spring this year. to make up some of that extra Ms Moynihan said while cur- supply, even without a tariffrency remained strong in both free provision,” she said.

Chinese dairy Australia and New Zealand, “The partially eroding returns on market has grown so much Rabobank expects dairy commodities exported, and

that consumption will continue to expand.”

Rabobank regional manager for Gippsland, Scott Price, is accompanying Ms Moynihan on the tour across parts of Victoria.

Mr Price said it’s been a tough few years for the local dairy industry experiencing unfavourable seasonal conditions and tight margins, however looking to the long-term, prospects of what has been taking place on the global stage looked positive.

“We need to keep an eye on these global signals so we can try to gauge what’s coming, particularly with the nature of how dairy commodities work with regard to forward selling,” Mr Price said.

“Overall, it’s great that our clients are able to hear Hayley Moynihan’s global perspectives and her local views from New Zealand.”

Katter’s Australia Party will introduce the Fair Milk Mark Bill to the Queensland State Parliament, which aims to introduce a fair milk mark on a milk bottle that identifies the farmer was paid a price above the cost of production.

Member for Dalrymple, Shane Knuth, who will introduce the bill, said the marketing tool would be non-compulsory and hoped it would “address the market failures resulting from the supermarket duopoly”.

Queensland Dairyfarmers Organisation president Brian Tessmann said the majority of Queensland dairy farmers are currently receiving prices less than the true cost of production.

Mr Tessmann said the QDO welcomed the attention to the issue of the supermarket duopoly.

“Industry remains committed to working with gov-

ernments to establish an industry ombudsman and a national mandatory code of conduct, and this remains the primary focus of our negotiations with both major parties,” Mr Tessmann said “But we welcome this recognition of the crisis from Mr Knuth.

“It is clear that measures must be urgently taken to stem the losses being inflicted on the industry. Without government action, the implications for the Queensland industry are dire.”

Mr Tesmman said it was time for the Federal Government and the opposition to spell out what their policy intentions are and where they stand in terms of supporting the Queensland industry and other dairy farmers being impacted right around Australia.

“So far, they’ve been frustratingly silent, even though their own ACCC admits stronger rules are required.”

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Fixed Time AI helps to 'simplify' reproduction Ten years ago Jock O’Keefe had to decide whether to reduce cow numbers or build a new dairy at his Winslow farm near Warrnambool in south-west Victoria.

Mr O’Keefe went with the latter option and has since expanded the herd from about 400 to nearly 1000 cows.

“We were milking about 420 on a 20-a-side dairy and couldn’t cope, so we had to decide whether to build a bigger dairy or milk less,” he said.

The farm built a new 60-unit Waikato rotary dairy, which has been further developed in recent years to include cow identification, auto drafting, retention bars, somatic cell and yield meters and automatic teat sprays.

The property has also expanded with new leased and purchased land bringing it to a total of about 2000 acres.

Mr O’Keefe has no regrets about the massive expansion, but along with the bigger herd came a bigger problem…how to simplify his reproduction systems.

To help him achieve his goals, the fifthgeneration dairy farmer has introduced a Fixed Time Artificial Insemination (FTAI) program.

“In larger herds you need to have fixed time programs because it’s too big a job without it. Because there are more cows, heat detection is more difficult and you’re more likely to miss cows on heat,” Mr O’Keefe said.

The farm hit a peak of nearly 1000 cows last season but has gone back to 900 this year.

“We had gone from 850 the year before but had to come back a bit because there were too many for the acreage,” Jock said.

The business requires three full-time and one part-time staff member.

The farm has been a keen participant in reproduction trials to test new products.

One trial conducted by the Warrnambool Veterinary Clinic used the Bayer CueMate® in a Bayer Prosynch FTAI program.

Cue-Mate progesterone releasing devices prevent the development of follicles and ovulation. Following removal of a Cue-Mate device, follicle development resumes, with mature follicles ovulating at a similar time. This allows for timed insemination, minimising time and labour.

Dr Jon Kelly from Warrnambool Veterinary Clinic said the results showed a significant difference in the first service conception rate in the cows not cycling prior to the mating start date.

“These cows were nearly twice as likely to conceive to the first service using CueMates,” Dr Kelly said. “The conception rate went from 17 to 31 per cent which is getting back to what we like to see.”

cent of the milking herd.

We had nine technicians here and did approximately 600 cows. There were costs involved but it paid off.”

To help with his heifer program, Jock has adopted a three-tiered system for AI. His biggest heifers use fixed-time AI with Holstein sexed semen; mid-range heifers are joined to Jerseys through AI over 2-3 days and lighter cows are run with Jersey bulls.

“I think our overall conception rates are fairly good…we do pretty well with total cows in calf.”

need not only the willingness to take it on but also suitable infrastructure.

If you have a rotary platform it will be a lot easier. We are lucky and have the right facilities and can run them through on the platform.”

“Fixed timed AI using Cue-Mate has certainly helped us tighten up our calving pattern and helps us get more calves earlier.”

He suggested farmers to get advice from their vets and ask about ProSynch Plus programs.

“It’s easier with heifers to synchronise them if you can.You can work your plan around the insertion and removal of the Cue-Mates because you know she ovulates when you pull it out,” Jock said.

Mr O’Keefe, one of the driving forces behind the dairy industry representative group ‘Farmer Power’, said an increase in the milk price would encourage more farmers to use Cue-Mates and fixed time AI programs.

“One day last year we used AI on 90 per

“If you want to join a lot on one day you

“It comes back to how much we get paid for our milk. In tough times people want to spend money wisely. If you can afford it, fixed time AI is worthwhile and if we were paid more for our milk it would be more common and benefit more farmers.”

Dairy NewS AUSTRALIA may 2013

news // 11

Finance package welcomed Farmer groups

have applauded the Federal Government’s Farm Finance package unveiled last month.

The Farm Finance package will provide $60 million in loans in each state and the Northern Territory over two years to help farmers across the country restructure their debts.

The money will be administered by the States to farms who can show they are viable and under financial stress.

Extra rural financial counsellors will be hired to work with agricultural businesses, while a tax relief deposit scheme will be overhauled, including raising the off-farm income threshold to $100,000.

The assistance package follows a rural finance

roundtable held in October last year, convened by Mr Swan, who said he had been concerned to hear how farmers had been hit by the high Australian dollar and depreciating land values.

“These are big issues for our farmers and mean many of our farming businesses find themselves moving towards a negative equity situation,’’ Mr Swan said.

The Western Australia Farmers Federation (WAFarmers) warned farmers that the funding package was unlikely to be available to producers until July, at the earliest.

WAFarmers President, Dale Park, said he believed the package would be available from July 1 but the details of exactly how this would be distributed and who would be eligible

Nothing new in drought reform talks

was yet to be quantified.

The Federal Government’s Farm Finance package initially offered farmers concessional loans of up to $650,000 over five years, then at market interest rates for the 20-year life of the loan to help them restructure debt and invest in produc-

tivity.

The State Government then negotiated with the Federal Government a reduced loan amount to $200,000, to enable greater access, and a fiveyear life of the loan. Victorian Farmers Federation president Peter Tuohey welcomed the packaged,

saying farmers across the nation were struggling with market failure, drought and the impact of the high Australian dollar.

“Concessional loans and debt restructure are crucial at a time when so many farm sectors are battling,” Mr Tuohey said.

“It’s good to see the government has listened to the concerns raised by the VFF and its dairy arm – the United Dairyfarmers of Victoria.

“It was the VFF and UDV that called for concessional loans as part of its dairy support proposal to Federal Agriculture

Minister Joe Ludwig earlier this year.”

Mr Tuohey said the VFF and UDV also called for the off-farm income threshold to be raised on gaining access to Farm Management Deposits, as well as additional funding for rural financial counsellors.

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The Federal Government must clarify the drought

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policy provisions that will apply from next year because of the failure of a recent meeting between federal and state agricultural ministers to do so, according to the Tasmanian Farmers and Graziers Association.

Last October, it was announced that all governments had agreed to a drought program “We are no reform process. Last further advanced week, this decision than we were last was re-confirmed.

October.”

However, little prog– Jan Davis ress has been made on the detail of the new program beyond the headings, TFGA chief executive Jan Davis said.

The headline components are: ■■ Promoting farm management deposits and taxation measures.

■■ A national approach to farm business training.

■■ A collaborative approach to the provision of social services (including rural financial counsellors).

■■ Tools and technologies to inform farmer decision making.

■■ Farm household support.

“What does it all mean? What access to services and support does a farmer in a newly declared drought area now have?” Ms Davis asked.

“We are no further advanced than we were last October. It is critical that the framework and eligibility criteria for each of the five elements be fleshed out and that the level of support that will be forthcoming once we get into a drought is also clearly identified.

“At the moment these things appear to be a matter for each individual state or territory. This will then depend on the ability of each jurisdiction to pay – and there is no equity or consistency in that approach.”

Ms Davis said Tasmanian farmers wanted to see a national drought relief structure that was backed by the federal government.

24/04/13 7:37 PM

Dairy News AUSTRALIA may 2013

12 // world news

New Fonterra UHT plant underway to cater for rising Chinese demand pam tipa

CHINESE GROWTH

and consumer demand is changing so fast that arguably Fonterra’s new $126m UHT milk processing plant at Waitoa should have started 18 months ago, says Fonterra chairman John Wilson.

The shift in consumer taste in China is happening so fast that your business plan can become obsolete in 90 days, Mr Wilson said at the formal opening of the site last Tuesday attended by Prime Minister John Key. Foundations are being laid for the plant to be started by April 2014; it will boost Fonterra’s UHT production by 100%.

Wilson led the business delegation on the trade mission to China with the Prime Minister. He says talking to consumer-involved

Chinese on the coast and in big cities, he noted that demand is evolving so rapidly that “if they have a business plan for a product for 90 days, they had better be thinking about what the next 90 days looks like because it is just evolving so rapidly.

You’ve got to be very fast.

“With UHT, if you go back two or three years it wasn’t economic to shift UHT into that Chinese market at the sort of scale we need in Fonterra,” he said. “And today – here it is – and we would probably argue that the UHT plant is 18 months too late. We are completely constrained for UHT processing in New Zealand at the moment and this will be five, six lines and 200-300 million litres at full noise. It will drive not only the UHT drinking market; a significant part is for our food service business and our cream market. So that market is changing dramatically.

“With the move from historically an emerging economy to a developed country, consumer demand goes from standard whole milk powder to advanced nutritional powders and into UHT and ultimately there will be a fresh milk offering.

This is why we have our farms in China producing 150 million litres, on the way to a billion litres.”

Asked if he foresaw Fonterra ever exporting fresh milk from New Zealand to China, Mr Wilson said on the trip he met a woman exporting fresh milk out of New Zealand into the Chinese market.

His understanding was she sold it at about $20 a litre because of the cost of getting it there. “There is a limited market today, but if you look in the future, that why the billion litres in China will give Fonterra those options.”

The Waitoa UHT plant will be supplied by

NZ Prime Minister John Key (right), Fonterra chairman John Wilson and chief executive Theo Spierings attend the site blessing ceremony last week.

farmers north of Taupo.

Fonterra already has enough winter milk in the

greater region to supply stage one of the plant because so many farmers

north of Taupo milk some cows through the winter, Mr Wilson said.

In the future there will be milk contracts in these regions.

China aware of production limitations CHINA IS now much more aware of its limitations in producing its own food so demand for New Zealand products is still going strong, says Fonterra chief executive Theo Spierings.

“The Chinese government is much more

aware of the limitations of China…. Land and environment are two key angles for China to look at,” he said following the trip with the Prime Minister’s delegation.

“The New Zealand export game we are playing will continue and

the Chinese government understands that as well because demand is growing much faster than supply. So developing a Chinese milk pool, yes, but can it be fully self-sufficient? I don’t think so. That’s for growth reasons, land reasons and

environment reasons.

“But on the other hand we can’t commit only to exports, we also need to commit to investments onshore in China. That is why we are building the Chinese milk pool: we protect New Zealand milk to China – it has to be

both, a win-win. We can’t just export commodities to China, we have to provide value on the ground in China.”

Meanwhile Fonterra board chairman John Wilson said Chinese government ministers

“at the highest level” are aware of Fonterra’s contribution to development of animal husbandry and quality milk in their country.

They have “a very high understanding” of what Fonterra is doing in producing milk locally

UK processors fail to implement voluntary code A UK dairy coalition, promoting higher farmgate prices for farmers, wants Government help to rein in milk buyers.

The Dairy Coalition wants Farming Minister David Heath to call in milk buyers failing to implement the voluntary code.

Processors were given until March 31, 2013, to comply with the code by offering fairer and more balanced contracts to farmers. Both parties had agreed to the code, adopted by Defra as the favoured policy alternative to legislation proposed by the European

not made the changes Commission. demanded.

The Dairy Coalition, “Since our March deadthe NFU, NFU Cymru, NFU Scotland, TFA, WFU line passed, the coalition has been applying pressure and the RABDF has writin various ways ten to Farmto get procesing Minister sors to act. This David Heath “This isn’t has included calling on rocket calling on retailhim to act science, we ers to insist that on its concerns over just want a their supply base offers farmthe compafair deal.” ers compliant nies not yet contracts. This signed up to however isn’t the code.

NFU dairy board chair- enough. We need Defra to man Mansel Raymond said ramp up the pressure to ensure the code is the sucthough some large milk cess it can and should be.” buyers are implement TFA dairy ing the code, some have

representative Richard Elliot said its members’ patience is growing thin. “If milk buyers can’t be trusted to do the right thing and work with farmers to deliver better contracts, then Government needs to step in. This isn’t rocket science, we just want a fair deal.”

RABDF chairman Ian Macalpine said farmers have the power to change contracts. “With milk supplies short and processors crying out for milk, farmers need to stand firm and demand change.”

on its own farm and also working with its farmer suppliers to gain knowledge and confidence.

The trip to China with the Prime Minister’s trade mission was very successful, said Mr Wilson.

Dairy NewS AUSTRALIA may 2013

world news // 13

The threat of house brands grows

House brands pose a major risk to the likes of Fonterra’s Anchor brand.

House brands are also having an impact on New Zealand dairy farmers, writes Jacqueline Rowarth HOUSE BRANDS are going viral: a

catchy heading, but a real-life threat to those on the land.

House brands are cheaper and in the supermarket wars it isn’t the New Zealand farmer that is winning: house brands are more than twice as likely to be made from imported produce as market-leading brands.

A Campbell Live investigation, last month, urged shoppers to ‘Buy New Zealand’ wherever possible, but ‘possible’ depends on the concept of food price. New Zealand has very high animal welfare, human employment and environmental standards, and costs of production are therefore higher than in some other countries.

When supermarkets are trying to achieve market edge for their products, they source the cheapest produc-

tion system. This could reflect climate and ease of growing, or it could reflect standards to do with animal welfare, human working conditions and/or environmental impact. Supermarkets also play suppliers off against each other.

This is well known in respect of UK supermarkets and the New Zealand meat companies, but also occurs within New Zealand.

What the supermarkets say is that house brand products can be sourced in bulk, manufacturing is streamlined, R&D can achieve economies of scale, and marketing is easy – just one ‘brand’. But social media articles (see Michael Bracka, managing director of Freedom Foods, on Facebook) have indicated that supermarkets allow companies to undertake the expensive areas of product development, market

awareness and initial market penetration with supply chain logistics. When the product is achieving traction, they will reduce distribution and sales while they launch their slightly cheaper ‘house’ brand.

The indication is that the supermarkets don’t have to bother about R&D as they let others do it for them.

Last year Coles supermarket in Australia stopped selling Mainland cheese. The reason given was their philosophy that 90% of food should be Australian. Nobody appears to have challenged the calculation – and though such things as chocolate, cocoa, coffee, rice are mostly (or entirely) not grown in Australia, the minute they are in a house brand they apparently count. Fonterra refused to repackage Mainland into a house brand.

Fonterra has indicated that the 21 brands currently in Australia will be reduced to four or five, and its 65 global brands will be trimmed. The cost of this to the Fonterra shareholders is considerable.

Last year earnings in Australia before interest and tax (excluding the Western Australia dairy business) were down 15.9%. This year the half year (to

January) net profit released at the end of March indicated that earnings before interest and tax from the Australia-NZ foods business were down 32% to $NZ98 million.

• Jacqueline Rowarth is Professor of Agribusiness, University of Waikato, NZ.

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Dairy News AUSTRALIA may 2013

14 // OPINION Ruminating

EDITORIAL

Tony, Julia, bring us free trade

milking it...

One jump ahead

With limited feed in the paddock, kangaroos are always unwelcome visitors on a farm.

However, it seems they do have some uses, according to Kongwak farmer Brian Anderson.

“They’re two days ahead of the cows normally,” he said.

“They let me know where to put the cows next.”

Have you shot all the cows?

A photo in the New Zealand Herald of a cow being shot by a farmer in drought was one of the first images a Chinese film crew saw when they entered NZ. The crew was sent from Sydney by a big Chinese network to report on the drought and the impact on the economy.

The film crew drove from Auckland airport to Hamilton on a road normally bereft of cows.

When the film crew got to their destination they asked: “Have you shot all the cows?”

It took 10 minutes to convince the crew that New Zealand still had cows and the drought wasn’t that severe.

Bachelors go global

Cool stuff

An opportunity has arisen for two rural bachelors to claim bragging rights over their New Zealand counterparts and expand their international presence.

The NZ National Agricultural Fieldays – the country’s largest – is opening its Rural Bachelor of the Year competition to Australian entrants.

Anyone that can drive a digger, reverse a trailer, chainsaw a tree and then rustle up a roast dinner could take the title.

Six Kiwis and two Aussies will be flown to a secret location on June 10 and need to make their way to Mystery Creek, south of Hamilton, the following day, stopping in specific towns along the way to complete various tasks.

They must then take part in four days of events.

The winner will secure the coveted “Golden Gumboot” trophy and the hearts of many admirers.

Check out: www. fieldays.co.nz/ruralbachelor2013

GIVE A cow a cold shower and it will produce more milk. That is the hope of the owners of a dairy farm in Dubai, which has installed a state-of-theart shower system for its 11,000 cattle.

So far, the cows at the Al Rawabi dairy farm in Dubai’s Al Khawaneej seem well pleased with their showers. “When they lie down, it means they’re comfortable,” said Rami Hamad, the farm manager.

“And since they started showering, they’ve been very happy.”

Last February, the farm installed 20 motionsensing shower sprinklers that switch on when a cow is under them. The farm’s 2300 cows shower each time they are milked – three times a day; the other 8700 shower once a day.

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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

There’s no shortage of advice for the government and opposition on how to help the Australian dairy sector.

Farmer Power wants a 50 cents a litre levy on milk; Katter’s Australian Party wants a thumbs up affixed to every milk brand that pays above the cost of production; the Queensland Dairyfarmers’ Organisation wants an industry ombudsman.

The Federal Government recently allocated $60 million to be spent over two years to help farmers rearrange debt loads.

It’s an insignificant amount of money to the Government, especially when creative budgeting comes into play.

Opposition leader Tony Abbott recently told farmers at Koroit in Western Victoria that the carbon tax was their main concern and an Abbott Government would abolish it.

(He didn’t listen when farmers said it wasn’t their main concern – he had a message and he wasn’t going to deviate from it.)

With so many opinions aired, here’s what we think: let’s sign off on some Free Trade Agreements, and prioritise China.

We don’t agree that future Asian demand is the absolute cure all for current and future ailments of the industry. There may be huge demand for dairy but it will take innovative companies to supply it.

International tariffs hold the Australia industry back and the Government needs to support Australian businesses by stepping up the fight to have barriers removed.

Murray Goulburn is a case in point. It’s getting its act together under managing director Gary Helou.

Mr Helou isn’t sitting around blaming supermarkets. He’s not whingeing about the dollar and other rising costs, as these are out of his control.

However, he has offered similar advice to the Government regarding free trade when he called on them last year to: “Get off their bums and do something.”

The Government has to play a leading role in negotiating trade agreements and reduction of trade sanctions, like former New Zealand Prime Minister Helen Clark negotiated with China.

New Zealand imports to China attract tariffs of 0-7% and this will fall to 0% in the future. Australian exports currently attract a 10-15% tariff to China. China has lifted its imports from 309 billion tonnes in 2001 to 3831 billion tonnes last year. It’s obvious which country’s dairy industry is in the box seat.

If Prime Minister Gillard or Mr Abbott really wanted to help the Australian dairy industry, they need to crack the whip on their trade teams and help level the playing field.

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

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Dairy NewS AUSTRALIA may 2013

opinion // 15

Strategy failing to win the hearts of consumers steve jones

Almost weekly I watch with interest an essential Australian industry losing credibility through its own actions. These include degrading its power base to being not only ineffective but counterproductive; ongoing non-compliance to consumer/voter expectation that causes massive disruption to their own business and the unintentional attack on the largest and most influential unofficial lobby group buying their products, the city consumer/voter.

This is the wider agriculture sector I observe. I appreciate dairy is heavily regulated and, by enlarge, complies.

Unfortunately however the city consumer/voter lumps all farmers together.

I was raised by a builder in Gippsland and for many years our lives were affected by the fortunes of farmers. My old man would follow the wool price and if they were high he could count on some new sheds to build and if there was a drought or prices fell, we went from eating roast to mince. This developed true empathy for the ag sector, reconnected in the last few years with meeting my partner who works across most of the ag sector.

My path was 30 years in the oil and gas sector that culminated in co-founding engineering and design company Plexal Group. In 10 years we expanded from our head office in Perth to Brisbane, Thailand and Bangladesh, with a workforce nearing 200 and servicing majors such as Chevron and Woodside.

At the beginning of this year a multinational acquired the company and I no longer work in the industry. The views I share are mine alone and in no way do I represent Plexal Group.

In those 10 years we had our share of droughts and floods. The Global Financial Crisis (GFC) wiped out years of earnings; the flood in Queensland saw our office shut for weeks; floods in Bangkok virtually shut down our operation for two months and the Bangkok airport was taken over by protestors, isolating us for several weeks. We never received an ounce of financial support or direct bail-out.

Nor was this the case for the 30,000 small, privately owned and often familyrun businesses that went under during the GFC. Reportedly the rate of small business collapses is 12% higher today than during the GFC and rarely talked of in the media. Their cries for a bail out don’t make the light of day.

During my time in the resource sector I witnessed significant growth and with it their power and influence.

They understand their power base and how to use it effectively. They have adapted to the expectation demands of consumer voters far quicker than ag in the last 3-4 decades and do consumer compliance exceptionally well.

This has helped grease the wheels for

Queensland dairy farmers made their feelings about Coles clear at last year’s Royal Show.

approvals, influenced legislation and compliance with immediate and crip- is not just about legislated regulations, enabled them to continue even after a pling affects on the industry. I admire the ag sector must always strive to hold the swift response by the ag sector with the high ground in the eyes of voter senmajor non-compliance.

It seems to me that the ag sector has the self-imposed ban however the NGO timent. If the city consumer feels trust the biggest stick of all in terms of power produced footage it is another step has been breached they will happily and influence over government policy closer to the cliff of total abandonment bite the hand that feeds them. ‘Consumer Expectation Compliance’ is not - it provides 93% of all our food. His- of this important industry.

Self-regulation often presents inter- optional, get on board or be forced out tory will tell us repeatedly that anarchy is only an empty belly away. In no way nal conflict with trying to justify the by new and more onerous legislation.

As a CEO and then chairman I had do I advocate blocking of supply as it endless compliance cost. It can be hard one not negotiable policy is a form of blackmail. None- never, ever publicly crititheless it is a massive stick “It seems to me that the ag sector and one I see thrown away or has the biggest stick of all in terms cise your client. Of course we had robust negotiabroken into pieces time and of power and influence over tions behind the scenes again by the owners of it. but there is nothing to gain Last week I watched in government policy - it provides through public spats other amazement as the WA Farmers 93% of all our food. History will than alienation with the Federation and the WA branch tell us repeatedly that anarchy is client and their customer of the Pastoralists and Graziers only an empty belly away.”

- the public consumer/ Association very publicly dis– Steve Jones voter. We actually sang the agreed with each other over praises of our clients in the whether the WA wheat growers should get another finance assist to swallow the expenditure when more press and I wish to point out that for 25 package or not. Divide and conquer is pressing issues of commodity prices, years there was a monopoly in the Aus101 ‘art of war’. But one you are meant falling equity, exchange rate all threaten tralian Liquid Natural Gas sector.

On almost a weekly basis I can find viability. However non-compliance to to inflict on your enemy, not yourself.

Behind closed doors government regulations or, worse still, betraying examples of farmers and their lobby members must shake their heads in consumer/voter expectation, inflicts groups publicly flogging Coles and bemusement and largely ignore because costs that make the alternative pale to Woolies. For example I watch the they are handed this gift. Then for a insignificance. Although the live export milk price fight with Coles in commoment put yourself in the shoes of industry is making significant inroads to plete bewilderment. Put yourself in 70% of the nation’s voters, living in our detecting and rectifying the non-com- the lounge of a city voter - 70% of our cities. They see farmer against farmer pliances, it is a process than needs to be nation - most with a small asset and squabbling over a finance assist package better regulated. It is fantastic to see struggling to meet the mortgage paythat their tax dollar is paying for...mean- the industry come so far and improve ments, compared to their perception while their job is under threat if they animal treatment in places outside of of farmers being wealthy. A ‘hectare’ in happen to work for an east coast gov- Australia. I just hope they can find the the city costs $10,000,000 if you conernment or a small business. It doesn’t improvements to limit opportunities sider an average home of $500,000 for NGOs to brand the whole effort as on 500m2 block. In their lounge they feel like winning hearts and minds. see the dairy farmer being interviewed And then this week my lounge is a failure before it is too late.

Unfortunately the city voter is largely lamenting how hard they are doing with filled with sad and terrible images of mistreatment of Australian cattle in disconnected from the real issues and hundreds of hectares of prime land in an Egyptian abattoir. Yet another non- efforts of farming groups. Compliance the background and discard the cry of

going broke. I realise this is not reality but it is all about perception.

The government health department and health groups advertising campaigns stress you must eat a balanced diet of fresh produce. So you’ve just bought some nutritious milk for $1/ litre over a bottle of coke at $2.25/litre for your kids. Coles have told you they are have provided that great personal achievement cheaper. You’re feeling pretty good about yourself. You don’t care how it has come cheaper, after all we’ve all been conditioned to expect cheaper goods for the last three decades and it has become our right not a gift.

Then they see farmers attacking Coles and that they are sending them broke.

City employees rarely understand the daily struggle of the very business that pays their mortgage let alone a farm business. So every time farmers attack Coles, they are attacking the most influential lobby group that all political parties jump to - the city consumer/voter.

This does not feel like a winning strategy.

Even though the resource sector is selling all their product overseas they know they must have the heart and minds of the city voter. Next time look a little closer at the “We Agree” campaign Chevron is running. It is all about winning empathy of the Australian voter - to ensure they support their developments rather than calling for them to be stopped or shutdown. Perhaps the ag sector can learn from the resource sector?

• Steve Jones worked in the oil and gas sector for 30 years and sold his engineering and design company last year.

Dairy News AUSTRALIA may 2013

16 // agribusiness

A2 infant formula sales in China tipped to hit $60m Chongqing, then progress to other big cities plus Hong Kong and Macau.

The A2 formula will also be marketed in New Zealand and INFANT FORMULA made from A2 milk should be on Chinese shelves Australia in the second half of this calendar year, Mr Babidge said.

by September in the start of what A2 The company has three major Corporation believes will be, conserstrategies: continuing to build the vatively, a $60 million business by business in Australia and New Zea2016. land in fresh milk; developing its UK New Milk, Auckland, began the joint venture business – the prodfirst packaging run of A2 Platinum uct was launched infant formula on Satin October last year urday April 20 in a cerin UK; and advancemony attended by ing the China infant representatives of A2’s “The A2 baby formula initiative, Chinese distributor, formula Babidge says. The Chinese State Farms. will also be latest announcement They included Chairis the culmination of man Xu Jun and senior marketed in 18 months work. executives of CSF. Australia in The first A2 forMeanwhile A2 the second mula is being marCorporation will be half of this keted in China for looking for more A2 obvious reasons: farmers in Canterbury, year.”

NZ to supply the - Geoffrey Babidge strong demand and growth in China, and processors, Synlait the high regard in Milk Ltd. A2 managing which New Zealanddirector Geoffrey sourced infant formula is held. During Babidge told Dairy News they are the two years spent developing the looking for about 20 suppliers – A2 infant formula strategies “there currently they have three or four. have been a number of health issues…

A2 pays a premium averaging 10% or problems with products sourced on the standard milk price, another or identified in China; that further company representative said. About underlies the opportunity not just for 30% of New Zealand cows produce the A2 form of the beta-casein protein A2 but for all infant formula sourced and some A2 farmers milk both A1 and from this part of the world.”

A2 announced in October last year A2, but they are milked separately. the appointment of the China State The first shipments of A2 infant Farm Group, a state-owned enterprise formula leave New Zealand for China in Shanghai, to organise a distribution next month, but as a new product it must go into quarantine. The planned network for A2 formula in China.

“We’ve been doing further work roll-out in China will start in Beijing, with State Farm in developing the Shanghai, Guangzhou, Tianjin and PAM TIPA

DAIRY

ment going on the water, and release, China State Farm will continue to develop the network of distributors that will distribute in China. Initially we will be looking to access the baby and maternity store network as a first market entry and China State Farm will follow a wider distribution from there.

“We are branding it as A2 Platinum which is part of positioning the product as a premium product from New Zealand.”

On the need for more suppliers he said: “There’s sufficient for the infant formula that we’ve needed at the

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agribusiness // 17 Dairy NewS aUSTraLia june, 2012

agribusiness // 17

Prices surge as milk decline Export demand remains strongbites The recent dairy commodity price surge has attracted significant attention as many in the Australian industry keenly search for signs of an end to the pattern of margin squeeze and unfavourable weather that has bedeviled the sector over the 2012/13 season.

In scrambling to cover an unfolding product shortfall, commodity buyers have been pushing prices to record levels in recent weeks.

On the NZ-based GlobalDairyTrade (GDT) auction platform, the Trade-Weighted Index (TWI) has increased 35% since early March – even taking into account the widely anticipated correction on May 1 (event 91).

The most recent weighted average price for WMP (US$4721/t) represents a 50% increase since the start of 2013, while SMP average pricing has increased 25% during 2013 to date.

Volumes are low and transactions outside GDT platform for both these products are occurring at a wide range of prices – in

many cases significantly cents/litre in March (AUD 41c/L) to 28 With season 2011/12 only a few incremental change in milk production (year-on-year) Euro cents/litre (AUD 36c/L) in April. weeks from ending, attention is now higher than the GDT Profit margins are under pressure in the focused on 2012/13 milk prices as farmequivalent. ers consider strategies for the coming US, and in NZ Fonterra has announced the final payout for the 2011/12 season year. In of some Like the period lowdomestically-focused has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incorgLobaL impacT prices that preceded it, the to NZ$6.45-$6.55/kg MS (AUD$4.96porating lower prices and reduced ‘tier JohN DropperT $5.04). one’ current access are undermining farmer dynamics of the Effectively, global dairy markets are confidence and supply stability. For global impact environmentmany are being rebalancing. Lower prices will both private label Droppert contracts and profarmers in export-oriented Shifts inJohn slow production growth and stimulate a lower price outlook relative to cessor rationalisation have seen milk driven largelyregions, by global demand, and as this occurs we will ultithe current season not only adds to the companies adjust their intake requiremately see a price recovery. Key factors western states ments and pricingpasto meet theoriented changchallenges of but seems tion and rejuvenating dairy supply factors – doing so abusiness, to watch on the global scene will be the to contradict the positive medium term ing demands of a highly pressured retail struggling to gain traction. tures over the winter. recap of the key players is rate at which milk production overseas outlook of Asia-driven dairy demand marketplace. Lower contract prices and slows in response to lower prices, the a lackdata of alternative growth.

Most of the growth February sug- supply opportunitimely.

Dairy Australia’s indicative outlook ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries in US milk production gests NZ milk producA leading contribufor southern farm gate milk prices – limited manufacturing capacity. Despite is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of April year where adjusted), whilst early nomic growth rates that support China’s economic growth, and the value the underlyinghas domespublished in the recent Dairy 2012: Sit- these challenges, been in(leap areas tion decreased 2.6% for tor to the wave of supply uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. cheese – rather than powthe month, compared to on dairy markets in late Demand for exported dairy prodquota year up ever, the surge in supply has outpaced opening price range of $4.05-$4.40/kg ita dairy consumption and a growing finished the March 2012 ucts remains a positive and will con2.3% on the New Zealand demand growth in the market. population providing of cer-and and a fullhas year averageFebruary price range 2012 fats – previous is theyear. focus. (leap year a degreeders 2011/12, New MS Zealand This situation has seen the scales tinue to grow with the middle class in between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish is expected adjusted) andofdown 0.3% Industry exits continue to date; seen more modest growth large Uruguay emerging markets such as China, tip in favour buyers in dairy mar- and this season up 10% on last year - a huge In the seasons following the 2008 report considers the wideradjusted) market pic- – season ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing to grow by around 3%, to year to date, according in the western states; howproduction is up 5.3% on this season due to signifiat play; the key theme of the current sit- modity price recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction with global growth.

Locally, prices are down some 30% from their just ing solid production growth, but a sigexport-oriented regions have seen solidlocal uation beingacross that of re-balancing in the period overpopulation 35 billion litres to the latest official data. ever reports suggest the same in 2011/12. cant rainfall deficits global supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a dairy supply chain. in 2013, however unlike EU commission forecasts many other producers are NZ milk data is some of its most imporIn regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable percapita consumption. havegrowth subsequently been reduced in the ernaHemisphere expand- ing South producing drinking milk, many farmers on key OceaniaWhilst andthe dairy reflect expectato America. get ahead of released lagged amongst thoseexpanding tant dairy regions.

Despite wider economic uncer- most exporting regions. The average market is currently a challenging place face a re-balancing market in the form ing output as their margins increased.

Northern Hemisphere tions of only 0.4% for the any supply management basis, so the full effects The entireofNorth Island renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that balance will ultimately return. for example, dropped 12% from 32 Euro producers, countries ditions are havenot further enhanced milk as importing andwest reduced access to ‘tierof one’ supply. production full year. schemes that may formlike China and the drought and part of the coast growth in this region European producpart of the new Farm Bill yet captured. A full-seaof the South Island are is largely matched by tion is only now beginlegislation. officially drought declared, son growth figure of +/increases in consumption Feed prices and fodder ning to gather pace after a although widespread rain- 1% relative to 2011/12 is – particularly in Brazil and cold spring, and as of late availability are the curexpected. fall in late April brought Chile – so the majority April weekly intakes are rent production-limitIn the United States, an end to the austraLian immediateDairY, ASEAN-Australia-New rice and wine exporters to Zealand FTA (AANZFTA). of additional product is well below 2012 levels in a ing factors for many, and milk production for March crisis.

“Protectionist sentiMalaysia are the biggest mentwas over agricultural winners in a free trade 2013 finding its way into local number of countries such down 0.3% com- will determine the extent Production in the curgoods is rife and growagreement (FTA) signed as France, Ireland and the of the role the US plays pared to March 2012, rent season isbetween unlikely ing across the globe, so to provide portion pack the two counaustraLianmarkets.

FooD in this context configuratriesrecover, last month. company Freedom Foods In the(200-330ml) same way that UK. in global dairy markets rounding offit isa pleasfirst quarto significantly ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a strong growth in all of Production in South through the rest of 2013. ter that sees output down as drought management to forge an agreement seven years of negotianew milk processing plant ucts. with Malaysia that has The NSW location will tions, allows a liberalised to cash in on growing the above regions led to a America remains weak USDA forecasts indicate 1.1% for the year to date. strategies such as early dry dealt with some sensiprovide access to the most licensing arrangement demand in Asia. tive agricultural sustainable and economic early 2012, the for Australianin liquid milk The plant, to surplus be built in in overall growth of 0.7% for after weather and feed Whilst USissues domestic off are not reversible not effectively covered by exporters and allows southeast Australia, will be source of milk. Pactum has currently short cost pressures in 2012, but market isstrong is expected for the year. prices for dairy products the short term.

AANZFTA,” says Fraser. links to the Austraaccess for higher value the first Australian greenSealing the deal: Malaysian trade ministerfor Mustapha Mohamed is recovering as margins “While under the dairy industry and retail products. fields expansionof in UHT in lian as product output in will Milk intakes the are currently substantially With better prices on with Australian counterpart Craig Emerson after signing the deal.

AANZFTA agreement expand its arrangements It guarantees Aus10 years. most places is sluggish improve.

27-member European lower than international the horizon for 2013/14, most of Australian agriwith dairy farmers for at tralian wine exporters Freedom’s wholly but alsoAggregate through technical compleers through streamlining culture’s keydata interests supply of milk. The new the bestto tariff treatment levels, owned subsidiarybest.

Pactum production Union wereDespite downthe1.1% US continues farmers are likely focus or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, plant will increase scope Malaysia gives any counAustralia will run the Improving margins for Argentina, Brazil, Chile for February (leap year to show the more exporton preservingtry.cow condimuch remains to be done border’ restrictions.” dairy and rice are two sec- laration processes and milk supply It also allows open plant. Some of its products for Australian

Malaysia FTA benefits dairy Freedom

Foods plant targets Asia

for Australia’s farmers to improved marketing access arrangements from tors where incremental tap into the full potential arrangements for certain market access improve2023 for Australian rice of the Asian region and commodities. ments have been negotiwith all tariffs eliminated The Malaysian market beyond. ated under the Malaysian by 2026.

He says the NFF will is worth about A$1 bilThe National Farmers’ FTA. now throw its attention lion in Australia agricul“This trade deal was Federation says the trade towards ensuring agricultural exports – including also particularly impordeal will improve interture remains front and being its fourth-largest tant for sectors such national market access centre in completed sugar export market and a new as dairy that Dunlop. have been Australian agriculturalGoodyear “Judith hasforbeen creding for head for itsFTAs fifth-largest wheat export with South Korea, Japan, facing a competitive disgoods.

She started her career in ited with leading“After successful revamped global brands China and Indonesia as market. advantage in Malaysia seven years of With an annual economic immediate priorities. compared with New Zeanegotiation, the NFF is the food division of Marks turnarounds and generatbusiness.

“These are all markets growth at about 5%, land which already has under no illusion of how in the ing extremelychallenging strong busiMark Wilson left growth the with enormous Malaysia forms an imporcompleted FTA with United it has been to & aSpencer opportunities and where tant part of the ‘Asian Malaysia in place.” this FTA with Kingdom. ness results,”complete Mr Spierings co-op last week citing significant barriers to Century’ story and the The FTA also sigMalaysia,” NFF vice presitrade matters. in agriculture still presents nals administrative dent Duncan Fraser says.

Mssome Swales said sheopportunity sees this said. family health for Australian agricultural exist, not only through benefits for AustraThe FTA will fill a tremendous opportunity in “She has extensive Before he left, therestrict co-op tariffs that trade producers, says Fraser. number of gaps within the lian agricultural export-

The FTA was signed on – value-added, sustainable will be sold in Australia.

May 22 in Kuala Lumpur and export focused.

The company says

by Australia’s Trade and Initially the plant will given Asian consumCompetiveness Minisproduce 250ml and 1L ers’ rising incomes and ter Craig Emerson and his UHT packs from a process improving diets, demand Malaysian counterpart line capable of 100 milthere will grow for qualMustapa Mohamed. lion L. The processing and ity dairy products from Emerson says Australia low-cost production bases packaging plant will emit will be as well-positioned less carbon, use less water, such as Australia,tana whoseas managing direcbusiness unit. in the Malaysian market and be more energy-effimilk is well regarded. tor ASEAN. He is currently “It has been a big as Malaysia’s closest tradcient than equivalent The new plant will ingundertaking partners in ASEAN, UHT facilities in Austraallow meet of Fonterra’s Latin and with allPactum to head and in some cases better. lia and SE Asia. Pactum growing demand for American joint venture the key management now The FTA will guarantee expects site preparation to UHT dairy milk, and add tariff-free entry for 97.6% begin in October 2012 and capacity for valuewith Nestle. in place for APMEA,to Mark of current goods exports start-up by mid-2013. added beverages at from once itdue to some makes UHT its Sydney factory. Pactum The newPactum managing hasAustralia decided enters into force. This will products for private label is expanding its capabilidirector ISMEA (Indian family health matters that rise to 99% by 2017. and proprietary customers. ties at the Sydney plant

at farm gates around the world are likely to see farmers ramp up production wherever the climate is favourable to make up lost ground.

A near term US turnaround is possible but most market participants see a strong 2013/14 season peak in New Zealand as the likely source of sufficient supply to take the heat out of pricing.

In the meantime, a window of opportunity exists for Australian dairy manufacturers to take advantage of a seller’s market – if they can find sufficient milk to do so.

• John Droppert is industry analyst with Dairy Australia.

Swales charged with restoring Fonterra’s fortunes Sudesh Kissun

Fonterra CEO Theo

Spierings says he has confidence new Fonterra Australia managing director, Judith Swales, can “accelerate the turnaround and growth of our Australian business”.

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

The ANZ business includes brands in Australia and New Zealand.

experience across retail, sales, marketing and man016-017.indd 17 ufacturing operations, together with a strong track record in developing talent and building leadership within businesses.”

Ms Swales was previously with Heinz Foods Australia as managing director and prior to that the chief executive officer and managing director of

New Zealand’s entire North Island and part of the west coast of the South Island are officially drought declared.

Fonterra’s business.

“It’s no secret that the Australian food manufacturing sector is facing some tough challenges, she said.

“As I see it the challenge is to get even closer with our customers and consumers and really understand how we can deliver to them the next big thing in dairy.”

Fonterra is also look-

announced a new leadership team for its new Asia Pacific Middle East Africa (APMEA) business unit.

In Fonterra’s halfyear results announced in March, the APMEA business unit contributed $271 million to normalised earnings before tax compared to $293m the year before.

Consumer and food service earnings rose in Asia and Middle East. Fonterra’s Chilean subsidiary Soprole also performed strongly.

Spierings praised Wilson’s important contribution to Fonterra, leading sustained growth in the cooperative’s Asian and Middle East consumer businesses over the past five years.

He said Wilson had overseen the creation of the new APMEA

the time is right for him to leave the cooperative.”

The co-op has also appointed Juan Carlos Pes-

sub-continent, Middle East-Africa) is Alan 1:41 PM Fitzsimmons, general6/06/12 manager of Fonterra’s Indo-

China business.

The managing director of Fonterra Brands New Zealand, Peter McClure, is retained in the role.

The chief financial officer for Fonterra’s ASEAN— Middle East North Africa business, Malcolm Smith, becomes the new director commercial.

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Dairy News AUSTRALIA may 2013

18 // ABVs

New ABVs strengthen fertility, workability The improved Fertil-

ity ABV (Australian Breeding Value) is expected to increase the average reliability of the trait by 6-10%, depending on the breed.

The latest Australian Breeding Values were released by the Australian Dairy Herd Improve-

ment Scheme (ADHIS) last month.

ADHIS general manager Daniel Abernethy said there are many more bulls with fertility ABVs and overseas bulls with fertility ABV(i)s than in the past.

“This is something farmers have been asking

The improved Fertility ABV will increase average realiability of the trait by 6-10%. for, and an exciting outcome of collaborative research by ADHIS and the Dairy Futures CRC,” he said.

The new model is a

better indicator of the fertility of a bull’s daughters because it uses a multitrait approach including calving interval, lactation length, mating and preg-

nancy data.

The Fertility ABV was first released in 2003, and is included in the Australian Profit Ranking as daughter fertility makes a significant contribution to farm profit. In the past, the Fertility ABV has been based mostly on a calving interval and days from

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calving to first service.

The more daughters that got back in calf within six weeks, the higher a bull’s ABV for fertility.

The Good Bulls Guide, which is mailed direct to dairy farmers, now includes a dedicated list of bulls sorted on their Fertility ABVs. The April ABV release will also give farmers more bulls with workability ABV(i)s to choose from.

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In comparing the new Fertility ABV to its predecessor there are some winners and losers. Some bulls will have higher Fertility ABVs and others will be lower.

The Fertility ABV of bulls that change most compared to their previous Fertility ABV are those bulls whose daughters were culled before calving again due to fertility.

This is because the new Fertility ABV includes information on culled daughters; by using lactation length and predicting calving interval for cows that are reported as culled for poor fertility.

The re-ranking is less among the most reliable bulls with large number of records as their daughter fertility is well known. The

Daniel Abernethy

spread of bulls between the best and worst for fertility ABV has increased.

Genetics is responsible for about 5% of the variation in fertility between dairy cows. The rest is determined by environmental factors, especially management of nutrition, body condition, animal health and other issues. Selecting superior sires for fertility should form one component of the overall fertility management plan.

Research has shown that selecting for fertility using the ABV for fertility can result in significant differences in reproductive performance within Australian herds.

In 2011 the Dairy Australia InCalf project reported a 14% greater 6-week in-calf rate in daughters of bulls with a Fertility ABV of greater than 105, compared to bulls with an ABV of less than 97.5 (Dairy Australia In Calf Data Project Report, 2011).

Every mating decision is an opportunity to improve herd genetics, so if fertility is your priority select bulls within the Good Bulls Guide that rank highly for Fertility ABV.

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Dairy NewS AUSTRALIA may 2013

abvs // 19

Sandblast leaves an early mark Mr Younger said Sandblast daughters have less variation than those produced by other sires.

“When they’re more even, it makes them easier to breed from” he said.

stephen cooke

Jersey bull Sandblast has once again topped the Jersey Australian Profit Ranking in the April ABVs and to see what impact he can have on a herd, look no further than Zeerust in northern Victoria.

Sandblast has had a significant impact on the Jersey herd of Andrew Younger, who milks about 200 head on 100ha of irrigation just north of Shepparton.

Mr Younger also established his Jersey stud, Kaddy, in 1981, and has used AI extensively since then. Homebred sons of AI bulls are used over heifers or to mop up after AI. Mr Younger currently has over 30 daughters of Sandblast milking with more to come. He has 80 Sandblast calves so far.

Although highly sought now, there was a time when Sandblast could not attract any attention from AI companies. In fact, breeder Noel Furze, Nowell Jerseys at Kyabram, had to run his own progeny test program in herds across Queensland, Victoria and Tasmania because no one showed any interest.

Mr Furze was having semen collected from Sandblast five years ago when he contacted Mr Younger, saying he had a bull that would suit his heifers.

“We put Sandblast in the paddock – it’s the easiest way I know to AI heifers,” Mr Younger said.

“I had him the first year, then Ian Richards, Gippsland, had him the second. Then I put him in with my heifers 12 months later, then used him as a mop-up bull. So the majority that I’m milking are natural bred from random matings.

“When the first of his daughters calved I said I’ll have 100 straws thanks.

That was three years ago,

Andrew Younger with his Jersey herd, which has been heavily influenced by Sandblast.

Who:

Andrew Younger

Teatseal .

Real stories, real savings. ®

Where:

Zeerust via Shepparton What:

Sandblast

before he had a proof.”

As soon as the figures came through, Mr Furze was able to sign a deal with Agri-Gene, which now distributes semen.

Mr Younger chose to use the then unknown Sandblast over his herd because Sandblast’s brothers had a proof and he was from a NZ cow family he was familiar with which had bred good bulls for many generations.

“I liked the cow and liked the mating. His mother has three proven bulls, in fact the cow family has had five bulls put through progeny tests and four would have made active service (One died before receiving a proof.)

This family now is one that dominates genomic proofs.”

Sired by AI bull Flower Power, Sandblast is out of a cow called Admiral Sandra, who Mr Furze purchased 14 years ago, when he was a teenager, at the IDW Showcase Sale.

She produced Tailboard, a previous number one bull in the breed, and Samboy, which reached number three on the ABV charts.

Mr Younger said Sandblast is the most consistent bull he has used when it comes to uniformity.

“I’ve not had one that would not milk,” he said.

“His type in my opinion is identical to Flower Power but he has more strength in the front end and more milk with better components.”

Ben McKenzie – Cobden, VICTORIA “Since using this product I have almost totally eliminated mastitis at calving and effectively removed mastitis issues from my herd…

I have more than saved the cost of the Teatseal, antibiotic dry cow therapy and associated application labour by the massive reduction in lost milk, medical costs, time and culls.”

Mark Williams – Toolamba West, VICTORIA “The use of Teatseal is now an integral part of my herd management. The initial cost is far outweighed by the time and money saved treating clinical mastitis. Less stress on cows, staff and in particular management.”

Peter & Jeanette Clark – Korrine, VICTORIA “250 cows treated with Teatseal costs approximately $4,000. Milk from each cow saved - 7,000L at 35cents/L equals $2,450. So in our case, two cows saved [from being culled] more than pays for the Teatseal.”

Times are tough. Don’t make things tougher by dropping Teatseal from your drying off program. Get real results by treating every cow, every dry off. ®

Zoetis Technical Information: 1800 814 883 www.teatseal.com.au © 2013 Zoetis Inc. All rights reserved. Zoetis Australia Pty Ltd ABN 94 156 476 425. 38-42 Wharf Road, West Ryde, NSW, 2114.

AM960 03/13 PAL0846/DN.

PAL0846_DN_260x187_v02.indd 1

3/05/13 9:51 AM

Dairy News AUSTRALIA may 2013

20 // ABVs

Australian Breeding Values April 2013 HOLSTEIN TOP 10 Profit – Australian proven Profit Genomics included

Australian Proven or Intl

ROUMARE

g

ROUFECTOR

BUNDALONG ROUFECTOR

3

29HO12470

4

Production

Profit $

Profit Ref

A

316

94

254

97

g

A

295

75

243

INDIJKS BABYLON

g

A

288

81

USEAGE

KAARMONA CALEB

g

A

285

5

REALM

ECLIPSE ROUMARE REALM

g

A

6

CARMARE

KAARMONA CARMARE

g

7

SHOLTZ

ST. CLAIR SHOLTZ-TWIN

8

WESTGATE

GALLRAE JOCKO 3438

9

DEANCOX

10

DELSANTO

Survival

387

84

107

87

106

106

95

103

102

102

93

97

91

CRV

81

66

29

107

63

111

108

76

106

104

104

76

96

57

ALT

196

87

73

34

103

68

101

100

75

101

102

102

77

105

69

ABS

84

199

90

100

45

108

69

102

109

78

102

100

104

80

100

75

GAC

284

71

271

77

57

28

105

59

98

102

70

104

103

102

69

94

49

GAC

A

282

69

212

73

41

22

106

60

105

103

72

103

103

103

69

100

48

GAC

A

281

72

198

80

48

26

105

58

105

103

72

101

104

104

64

101

55

ABS

g

A

269

82

178

88

94

46

110

66

111

108

78

104

103

103

83

96

65

GAC

MANNA FARM DEANCOX

g

A

262

81

197

87

86

41

106

66

108

104

77

101

102

103

81

100

64

GAC

MANNA FARM DEL SANTO

g

A

261

81

230

89

95

48

102

64

110

110

64

100

101

102

80

100

71

GAC

g

A

320

82

246

88

94

27

102

68

110

112

77

101

105

106

83

105

71

AGR

A

272

82

202

87

67

24

106

72

118

115

83

104

105

106

76

100

77

AGR

Bull Name

1

Roumare

2

ASI

No. Dtrs

Daughter Fertility

Workability

No. Herds

Rank Bull ID

ASI ref

Conformation Traits

Survival

Ref

Over Type

Mam Syst

Type Ref

Milk Spd

Temp

Like

Rel

Dtr Fert

Rel

Source

JERSEY TOP 10 Profit - Australian proven 1

Sandblast

NOWELL SANDBLAST

2

TBONE

RICHIES JACE TBONE A364

3

ALTON

CAIRNBRAE JACES ALTON

g

A

266

93

214

98

913

168

105

78

110

108

87

104

106

105

94

98

82

ABS

4

VANAHLEN

PANNOO ABE VANAHLEN

g

A

241

76

179

81

50

26

107

62

123

117

74

102

105

106

74

98

63

ALT

5

VAVOOM

ROCKLEIGH PARK VALERIAN VAVOOM

g

A

236

72

234

79

53

21

102

59

102

99

71

102

103

104

73

98

43

ABS

6

LARFALOT

LIGHTWOOD LUCRATIVE

g

A

230

93

187

98

894

193

105

81

110

106

90

100

102

103

97

98

80

GAC

7

GAINFUL

KAARNONA GALEAO

g

A

205

82

174

88

84

46

105

67

114

111

75

100

103

102

84

93

71

GAC

8

TAILBOARD

NOELLE TARSAN

g

A

203

97

165

99

1246

239

103

91

105

103

88

100

102

101

97

98

95

GAC

9

AMBMANHATTEN

OKURA MANHATTEN-ET SJ3

g

A

194

98

212

99

1732

246

100

95

98

95

95

101

101

100

98

97

97

CRV

10

DELIAN

LOXLEIGH DELIAN

g

A

187

74

182

81

64

36

104

60

113

107

72

102

99

102

75

99

55

GAC

RED BREEDS TOP 10 Profit - Australian proven 1

RANDERSDAVID

R DAVID

A

252

80

112

87

59

13

VIK

2

PETERSLUND

PETERSLUND 1213

A

213

96

114

98

748

105

108

90

93

92

83

102

99

101

94

105

95

VIK

3

ARBBONJOV I

BOSCOWAN BON JOVI

A

204

83

150

90

112

56

104

65

111

105

71

100

102

102

82

104

70

GAC

4

VRSOLERO2851

VR SOLERO

A

190

69

170

79

29

10

99

42

5

BOTAN3829

BOTANS 3829

A

185

95

117

98

689

95

105

88

6

ARBPOTSIE

GRAZIN POTSIE

A

181

80

145

89

109

50

102

58

98

93

7

ARBBOBDOWN

LODEN BOB

A

174

90

178

97

747

162

103

72

110

8

ARBFROSTY

MERIBEN PARK JACK FROST

A

165

74

128

83

81

34

102

56

9

OBROLIN1804

O BROLIN 1804

A

165

91

81

96

299

51

106

10

ARBLIPPMAN

BOSGOWAN LIPPMAN

A

163

78

113

89

113

40

103

VIK 101

101

100

94

98

94

VIK

65

98

100

100

83

106

62

GAC

104

79

98

99

100

96

98

78

GAC

103

106

61

101

103

103

77

101

44

GAC

77

101

103

76

104

102

102

89

103

87

VIK

50

108

109

51

100

99

99

84

102

57

GAC

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Dairy NewS AUSTRALIA may 2013

ABVs // 21

Bundalong number one herd milk, get back in calf and last in the herd”.

“We don’t breed for extreme type, we want Bloodlines. They functional type,” Mr run deep.

Anderson said.

Brian Anderson’s “We choose deep pedigrandfather and uncles greed cow families, which bred race horses. He and his father, Bill, have always means type seems to had an interest in breeding come easier. When you have that depth of pedidairy cows. gree, even if one generaTheir pursuit of that tion lets you down, the interest (“We pushed it a bit more, and a bit more”) next generally comes back. has seen Bundalong Hol“We have bred 15 EX steins awarded many accocows and traditionally lades, including the top you wouldn’t breed that Australian Profit Ranking herd in the April release of many with a herd our size but the depth of pedigree the ABVs. assists that.”

Bundalong also bred Mr Anderson said the number 2 bull in the achieving a high rankAustralian Profit Ranking ing in the APR system was – Bundalong Roufector. important.

The bull’s sire, French“APR is based on bred Roumare, retained payment system, why his place at number one. wouldn’t you run with Previously, they were that? We use bulls high awarded the 2010 Australian Cow of the Year and in in APR listings – whether Australian bred or 2008 received the Master Breeder award for 20 years imported with conversions.” of breeding excellence.

Bill Anderson started The Andersons have farming in been breeding when Holsteins on You don’t want 1971 he took up the family’s an $8000 45ha across 170ha propthe road erty at Kong- cow that’s from the wak, between just a milker.

Anderson’s Korumburra You need to current and Wonknow how farm. thaggi, for you’re going They almost 30 shifted to years. to market her their 130ha Brian pedigree. farm in and his wife, 1979, runJanelle, now ning 160 milkers, includoperate the stud and Briing some stud Jerseys and an’s father, Bill, continues a crossbred herd as well as to take an active role on some South Devon cows the farm. and calves. The beef cattle Bundalong Holsteins are long gone and the herd currently supplies about is pure Holstein. They now 8 to 10 sires to artificial breeding companies annu- lease a further 40ha.

“In 1987 we flushed ally as well as another 30 to commercial operations. some of our commercial cows and concentrated on At the Anderson’s having a high genetic herd place, stud animals don’t get any special treatment - but at the time we were focused on milking only,” they’re all working mothers – who contribute to the Mr Anderson said.

“In 1990 we bought 230-cow herd milked twice Kenron Ted Jennifer 12th, daily in a 17 swing-over who we thought had a real herringbone dairy. About future as an embryo trans90-95% of the herd is regfer donor - her genetics istered – non-registered could be marketed. cows are retained if their “When we bought a performance in the dairy yearling heifer for $3000, warrants it. dad said we’d need to get a The breeding emphareturn on our investment. sis is on producing a That’s when it started and functional, profitable we haven’t stopped since.” cow which is “just above Her cow family had the medium frame, with plenty of middle, good feet No. 1 ABV cow in Australia and Mr Anderson said and legs that will produce it was typical of future plenty of good quality

stephen Cooke

Who:

Brian Anderson Where:

Kongwak, via Korumburra What:

Top APR herd

purchases.

“We buy in some very select animals from elite herds but only if they have something to offer our own herd genetics and importantly, the Australian herd as a whole,” he said.

The Andersons have 10 different cow families and are very select in what cows they choose.

“When we purchase an animal, we need to know what we’re going to do with her. Otherwise, it’s dear milk. You don’t want an $8000 cow that’s just a milker. You need to know how you’re going to market her pedigree.

Breeding also enables the Andersons to diversify their income.

Mr Anderson said they constantly try to run the farm profitably and comfortably. “We don’t sacrifice pasture management for increased production.

We need the right stocking rate and for us that’s 2.2 cows/milking hectare. With that, in a good season, you can make money, in a bad season you can cope.”

The Andersons constructed a simple feedpad, which is only utilised when conditions are too wet to feed in the paddock. The stocking rate has not been increased since it was installed. They feed their own round bale silage and buy some when short.

The cows are run as one herd all year and calving takes place from March-October. They milk all year, which Mr Anderson said gives them flexibility to take leave when it suits.

It also ensures there are recipients for embryo transfer (ET) when required.

“Most embryo flushes are done in maiden heif-

ers,” Mr Anderson said.

“If a calf is born in March, then we can flush her the following March.

What’s the point flushing then if you can’t implant until October? That’s six months they’ve wasted.

“You can also sell chopper cows sooner if needed, or can milk an extra six weeks if the season is good.”

The Andersons used to perform about five ET programs a year, but have reduced this to three larger programs a year, flushing 20 animals for about 120 embryos.

Aritifical insemination (AI) is conducted at every milking - twice a day during the joining season.

“With two in the shed, it’s easy to do it during milking,” Mr Anderson said.

“It all takes a bit of attention to detail but we’ve spread the load like that the last 20 years – I think it’s sustainable.”

Brian Anderson with Donor Perfector-ET EX91 3E, the 2010 Holstein cow of the year.

HEIFER S ON TARGET

New tools for smarter heifer rearing Improved heifer management has benefits to your dairy herd fertility and offers good payback for your business.

Dairy Australia’s new Heifers on Target program is a free two-hour session that gives you tools for smarter heifer rearing.

It is well known that heifers that are the right size at first calving are more likely to: • have higher lifetime milk production • have better reproductive performance • calve more easily • stay in the herd But how do you know if your heifers are tracking well if you are not weighing them regularly?

Heifers on Target offers ways to improve your heifer management that will work across all calving systems and do not rely only on knowing your heifers’ weights.

Join expert facilitators and fellow farmers at an on-farm Heifers on Target event to: • • • •

see another farm’s heifer rearing program in action understand the impacts of heifer growth and performance on your business look at different ways to benchmark heifer performance test new tools that can help your heifer rearing decisions Workshop details Free two-hour sessions are being held in your region in May and June.

To book a spot please contact your local Regional Development Program.

Registration is essential.

For more information visit www.dairyaustralia.com.au/heifersontarget

Dairy News AUSTRALIA may 2013

22 // management

Rotary swing-over dairy lifts milk production, calving Stephen Cooke

The world’s first rotary swingover dairy enables a single operator to milk 220 cows an hour.

Cobram dairy farmers Joe and Anna Lenssen had the new dairy custom made to suit their ideas.

When searching for a replacement for their 20 aside swing-over dairy, Mr Lenssen said there were a lot of boxes that needed to be ticked.

“It had to be a one man operation, and milk metering had to be incorporated to monitor cow daily production and therefore pick up any abnormalities or variabilities that needed checking,” he said.

Mr Lenssen said cup efficiency was an obvious downfall in other rotary dairies, while the cost of building, washing and maintaining the plant was also significant.

While milking in the old swing-over dairy, Mr Lenssen realised cup use was efficient and began to envisage an idea of a swing-over rotary.

The couple also recorded 69% conception rate after a six-week AI period.

“We would have been lucky to record 50% before that,” Mr Lenssen said.

He did not want to install a traditional rotary dairy, saying a 50-unit rotary would take 12 minutes to complete a rotation. Most cows would finish milking long before they finished their grain ration, he said.

The 60-stand rotary with 30 clusters means the dairy can be operated easily by one person. Each cow does two laps but the milking clusters are attached for one.

The cow milked on the first lap is teat-sprayed by hand before her second

One operator can milk 220 cows an hour.

Who:

Joe and Anna Lenssen Where:

Cobram What:

Rotary swing-over dairy

lap. The cluster is attached to the cow that has just stepped onto the adjoining bale.

At the end of the second lap, the first cow walks off and is replaced by a fresh cow. It’s a simple operation for the milker, which will also prove important when attempting to attract and retain staff. The reduction of a second staff member is also a significant saving.

The design reduces the cost of clusters by half. Money is also saved by using less water and detergent to wash the clusters and less energy to run the vacuum pump.

The dairy operates on the same 630 litre hot water system used for the old 20-stand swingover dairy, which required two people and took two hours to milk 240 cows.

Mr Lenssen said the cost of the dairy was also equivalent to that of a traditional 44-head rotary.

“It is perfect for 300-400 cow herds,” Mr Lenssen said. “You could milk 300 cows in 1 ½ hours and 400 in two hours.

It is ideal for one person.”

Mr Lenssen designed the Lenssen Gate (a galvanised steel gate operated

Joe Lenssen with his rotary swing-over dairy.

by compressed air), which ensures cows can enter and exit the platform safely.

It ensures only one cow can enter the platform at a time. The gate slides across the entrance to the platform and allows cows to step on only if it is their turn - every second bale.

If the cow does not enter the platform, or she enters incorrectly, the platform stops, preventing empty bales on the platform.

Some cows are quite happy to stay past their second rotation, requiring gentle encouragement to leave their bale. When their bale reaches the exit gate, a bottle filled with sand rattles above their heads. The noise tells the cow her time is up.

If she still does not exit the platform will automatically stop to allow the operator to manually encourage her off, thus preventing cows staying on the platform for an extra round.

Once taught there is usually no problem with this.

When approaching different companies to build his design, most said it wouldn’t work or that they didn’t have the technology to develop it. However Global Dairy Solutions (now Pneutech) and project engineer Bob Johnstone agreed to build it.

Mr Johnstone used Siemens software to develop the program.

Now, 12 months on since it was first used, benefits have been identified and modifications have been made to continually improve the program. These include individual grain feeding based on a seven day production average, and automatically increasing the amount fed for fresh cows and decreasing the

amount for drying off.

Animals under a certain age also receive 120% of the ration.

Each cow is teat sprayed The 60-stand rotary and checked by the one operahas 30 clusters. tor which has reduced the cell count dramatically.

Another benefit is the Easy Dairy $500,000. This did not include the conprogram which records cow treatments, crete yard, which was already in place. seven-day average, mating details and Mr Lenssen also saved money by installing plumbing and concreting himself. pregnancy testing.

Through improved calving rates and “All the information on every cow is at your fingertips during milking, allow- increased production, he is well on the ing you to make treatment or drafting way to paying off his investment.

Production in the old shed, milking decisions on the spot,” Mr Lenssen said.

“The verbal instructions also tell you 300 cows, was 144,229kg milk solids.

Moving into the new shed in Octowhen cows are on withholding treatber, and milking 330 cows the producments or whether they are fresh.”

The computer is linked to drafting tion increased to 176,729kg m/s.

This season they are on target to gates for automatic drafting.

Other information can be input achieve more than 180,000kg m/s with during milking if need be, including 330 cows. This was achieved using less recording which cows have been treated grain and culling low preforming cows with the information available on Easy for mastitis.

The final cost of the dairy was about Dairy.

Complete information on each cow is at Joe’s fingertips.

Dairy NewS AUSTRALIA may 2013

management // 23

Tips on feeding through the gap cull cows early if it is not possible to feed the herd well enough.

The research quoted in this article was supported

by Dairy Australia and Department of Environ-

ment and Primary Industries.

• Greg O’Brien is a member of the Department of Environment and Primary Industries team at Ellinbank, Victoria.

Look for feed as high as possible in fibre.

Keeping the nitrogen tied down has never been easier.

• Losses associated with topdressed urea can be significant • Green Urea™ has an inhibitor that minimises volatilization losses for up to 14 days after application • Green Urea provides you with more flexibility and protects your nitrogen investment Incitec Pivot Fertilisers is a business of Incitec Pivot Limited ABN 42 004 080 264 ™ Trademark of Incitec Pivot Limited.

www.incitecpivotfertilisers.com.au Incitec Pivot Fertilisers is Australia’s reliable leader in soil and plant nutrition, investing locally in agronomic solutions to help Australian farmers remain globally competitive.

IPF0124

be of higher quality than other hays cut at a similar stage of maturity, but you can get good and bad Many dairy farmers quality in any silage or hay are faced with the need to type. Rule out anything fill significant feed gaps with spoilage. at certain times in the It is common to fill season. feed gaps with concenWhere purchased trates first, then top up the feed is required, the gendiet with hay and silage. eral approach is to look There is a limit to for lowest cost feed in feeding concentrates. terms of cents per megajoule of energy or grams of Recent research conducted at DPI protein. Sometimes, the lowest cost feed is also low Ellinbank identified that dietary problems can arise in energy or protein. when more than seven When the energy or kilograms per protein cow per day concentra- You can get of cereal grain tion of the good and bad concentrates diet is low, is feed in so is milk quality in any the bail. The producsilage or hay cows were tion. Also, type. Rule out average sized the cow anything with Holstein compenspoilage.

Friesians, sates by so the limit losing conmight be higher for larger dition. So diet quality is also important when com- cows and lower for smaller cows. paring feeds.

If you are approaching Typically, cereal grains this level of concentrate are the lowest cost confeeding, be very vigicentrate. lant in looking for signs Other forms of concentrate such as canola of diet imbalance. This includes monitoring the are added to increase the milk pickup slips for a sigprotein content to the nificant drop in milk fat level required. It is also test and checking for loose important to address manure (with lots of undithe quality of the forage gested fibre present and component of the diet lighter brown in colour (i.e. pasture, silage, hay or than occurs on lush pascrops). ture).

It isn’t possible to give The impact of diet a recipe for the quality of fodder to buy, as it’s possi- quality on milk producble to use a range of forage tion was also highlighted

by Project 3030 research. qualities if they are balCombining the outcomes anced in the diet by other of this research and what high quality feeds. However, some rules of thumb is already known remember the following: may be helpful. Look for ■■ The quality of silage feeds that are: ■■ At least 10 megajoules and hay will impact on milk production and of metabolisable energy cow condition. If pur(ME) per kilogram dry chasing in hay or silage, matter (DM) ■■ As high as possible in do your best to provide your herd with good protein (greater than quality feeds.

14% would be good) ■■ As low as possible in ■■ Concentrates can fibre (under 60% neuimprove diet quality tral detergent fibre if but there is a limit to you can) what can be fed.

■■ Mining body condition This rules out silage and hays made from may help with cash flow mature crops with lots of but this will be at the stem. expense of milk proHay crops cut at an duction in the next lacearly stage of maturity tation or two (not to and those with lots of leaf mention the impact on compared to stem are reproduction).

■■ Considering selling best. Legumes tend to Greg O’Brien

Dairy News AUSTRALIA may 2013

24 // management

Mixed pasture trials boost milk solids

DairyNZ senior scientist Sharon Woodward says urine nitrogen loss was halved and summer/autumn milk solids increased with mixed pasture versus standard pasture.

pam tipa

A THREE-YEAR experiment with mixed pastures could have big implications for future management of environmental impacts.

Results showed cows

in the trials fed on mixed pasture excrete half the amount of nitrogen (N) in their urine compared to cows on standard pasture, the recent DairyNZ Farmers Forum in Whangarei heard from senior scientist Sharon Woodward.

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Milk solids production was also boosted 15-20% in late summer and autumn when cows grazed mixed pastures.

“The big thing for the future is that feeding mixed pastures has had a major impact on reducing urinary N losses from the cows,” Mrs Woodward said. “This has implications for greenhouse gas emissions and nitrate leaching.”

In the experiment both the standard and mixed pastures were sown with perennial ryegrass and white clover. The mixed pastures were also sown with prairie grass, lucerne, chicory and plantain.

All pastures were set up three years ago on the Scott Research Farm in Hamilton, NZ and all received the same treatment for maintenance fertiliser, urea application, grazing and cutting for silage.

Mrs Woodward says over the three years the total cumulative dry matter yields were the same for both pasture types. In the summer/ autumn there were advantages in feed availability from the mixed pastures, but these were lost in winter.

Indoor and outdoor trials were used to assess milk production and nitrogen partitioning. “When you feed cows indoors in metabolism stalls you can measure the intake of each cow and also collect all the urine and faeces,” Mrs Woodward says.

“The cows were fed either mixed or standard pasture. The cows on the mixed pasture ate less but they did produce more milk, and of course that meant more milk solids, not only because of the increase in volume but because we didn’t get a change in the milk fat concentration, but we got an increase in the milk protein concentration.

“But the key reason for using the metabolism stalls was to look at nitrogen partitioning within the cow.

This was important from an environmental perspective because we get a feeling of what’s happening in terms of greenhouse gas – that’s your nitrous oxide

and ammonia emissions and what’s going to happen in terms of nitrate leaching.”

Cows on the mixed pasture partitioned about 23% of their daily nitrogen intake into the milk, about 39% went into the faeces and 29% went into the urine. Cows on standard diets put a lot less nitrogen (15%) into the milk and much more (43%) into their urine. “And it’s that urine that’s a big problem from an environmental perspective.

“The key point here was the cows fed the mixed diet were excreting only half the amount of nitrogen in the urine than the cows on the standard diet.”

In her summing up Mrs Woodward said the biggest finding of the study was that feeding mixed pastures had a major impact on reducing urinary N losses. This was achieved with no loss of milk production and a 15-20% boost in late summer/ autumn. She asked farmers to consider what putting a portion of their farm into mixed pasture might mean for their profitability and their ability to reduce nitrogen losses on-farm.

The work was funded

by DairyNZ and the Ministry of Business, Innovation and Employment.

Mrs Woodward later said an application had been made for funding for a much bigger programme of work over the next six years investigating use of various forage species to reduce nitrate leaching. If successful, one aspect will be more indoor work controlling the composition of mixed diet to try to pinpoint which species might have the major effects on production and reducing N loss.

They would also look at the on-farm situation – in the trials so far cows were fed a 100% mixed diet but it was unlikely on-farm that all paddocks would be sown in mixed pasture, which also takes a few years to get established.

So mixed pastures were not the “silver bullet” to reduce nitrogen leaching, but increasing pasture species diversity could certainly provide part of the solution, she believes.

Dairy NewS AUSTRALIA may 2013

management // 25

Low planting lifts water quality THE BENEFITS of keeping stock out of waterways with fencing can be boosted by a planted margin, which will help improve water quality.

Long dense grass, flax, sedges and rushes serve as a filter to help remove sediment, bacteria and nutrients (mostly phosphorus) from surface runoff. The planting shades narrow waterways (less than 2m) and improves the habitat for fish.

There are a number of locations where low planting will be most effective at improving water quality, such as along drains and small lowland streams that feed into main rivers; areas with significant runoff; and beside waterways strip grazed in autumn and winter.

Other ideal locations

are beside vegetated drains in areas with poor soil drainage or pugging and moderate slopes, and where paddocks are cultivated.

In general, the steeper and longer the slope feeding into the waterway, or the more poorly drained the soil, the wider the planted area needs to be.

For gently rolling land, a margin width of 1-3m per 100m of slope feeding into the waterway is ideal. In areas with steeper slopes or poorly draining soils, a grassy margin of 10-15m per 100m of adjacent slope is recommended.

Getting plants in the ground Here are some simple reminders to help get plants off to a good start: ■■ Plant on an overcast, wet or windless day (if you can)

■■

■■

■■

■■

■■

Handle plants carefully to avoid root damage Set plants out to check for correct spacing Dig a good size hole and loosen the soil Set the plant in the hole and fill three quarters full. Give the plant a gentle lift to set the roots in a natural position and continue filling with soil, firming as you go Stake plants to help find them again at

weeding time.

Weed growth (especially gorse, broom and blackberry) can be a problem in low planting areas, so it’s important to manage it from the outset.

• This article is adapted from the fourth in a series of nine DairyNZ Farmfacts on managing waterways on farms. They can be viewed at www.dairynz.co.nz in the Farmfacts – environment section.

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I have more than saved the cost of the Teatseal, antibiotic dry cow therapy and associated application labour by the massive reduction in lost milk, medical costs, time and culls.”

There are several specific locations where planting can have the greatest benefit on water quality.

Mark Williams – Toolamba West, VICTORIA “The use of Teatseal is now an integral part of my herd management. The initial cost is far outweighed by the time and money saved treating clinical mastitis. Less stress on cows, staff and in particular management.”

Ideal locations ■■

■■ ■■

■■

■■

Peter & Jeanette Clark – Korrine, VICTORIA “250 cows treated with Teatseal costs approximately $4,000. Milk from each cow saved - 7,000L at 35cents/L equals $2,450. So in our case, two cows saved [from being culled] more than pays for the Teatseal.”

Along drains and small lowland streams that feed into main rivers Areas with significant runoff Beside waterways that are strip grazed in autumn and winter Beside vegetated drains in areas with poor soil drainage or pugging and moderate slopes Where paddocks are cultivated.

Times are tough. Don’t make things tougher by dropping Teatseal from your drying off program. Get real results by treating every cow, every dry off. ®

Zoetis Technical Information: 1800 814 883 www.teatseal.com.au © 2013 Zoetis Inc. All rights reserved. Zoetis Australia Pty Ltd ABN 94 156 476 425. 38-42 Wharf Road, West Ryde, NSW, 2114.

AM960 03/13 PAL0846/DN. In general, the steeper and longer the slope feeding into the waterway, or the more poorly drained the soil, the wider the planted area needs to be.

PAL0846_DN_260x187_v02.indd 1

3/05/13 9:51 AM

Dairy News AUSTRALIA may 2013

26 // management

Pasture improvement builds bottom line Dederang farmer

Scott McKillop runs 340 Holsteins on his family’s 500ha operation in the Kiewa Valley of north-east Victoria.

A fourth generation farmer, Mr McKillop combines his family farming heritage with an agricultural science degree from the University of Melbourne and 15 years of offfarm work experience in livestock management and pasture agronomy to his operation.

Over the past 10 years, Mr McKillop and his wife, Belinda, have converted a beef operation into a dryland dairy enterprise and purchased a neighbouring farm.

Another farmer ran the dairy farm for seven years while Mr McKillop was working elsewhere before he opted to return to the farm full-time in 2009.

“While we still run 100 Hereford cows and calves, my father milked cows here 40 years ago, so I knew the farm had good potential for dairying,” he said.

To kick-start the operation, Mr McKillop bought a rotary dairy in Swan Hill, dismantled it and moved it 400km to Dederang.

In 2009, he also embarked on a major pasture renovation program, using herbicides to control bent grass and other

Who:

Scott and Belinda McKillop Where:

Dederang What:

Pasture improvement

weeds, applying lime and fertiliser to address acidity and plant nutrition needs and resowing the perennial pastures before buying 300 cows later that year.

Mr McKillop’s pasture management knowledge was fast tracked during his previous five years as an agronomist with Smyth Seeds, a specialist wholesaler and distributor of pasture seeds based in Benalla.

It was during his days at Smyth Seeds that he first heard about a new tetraploid perennial ryegrass variety called Halo AR37 bred by Agricom.

“Five years ago, I saw some of the trials comparing Halo AR37 with other varieties and it stacked up pretty well, and I’ve grown it ever since,” he said.

He said the addition of the novel endophyte, AR37, gave Halo better pest resistance and more persistence in dry conditions, particularly last summer which was one of the hottest and driest in years.

“After sowing Halo in autumn, I cut it once in spring to reduce any seed heads and keep the plants green and leafy,” he said.

“This also means an extra one or two grazings of Halo in summer, compared with Italian ryegrass, and I also find Halo provides higher quality, lower fibre feed in

late spring and summer when the annual pastures and Italian ryegrasses are starting to deteriorate.”

Since 2009, Mr McKillop has grown as much pasture as possible, capitalising on good seasonal conditions to produce annual and perennial varieties including chicory, brassicas, and Italian and perennial ryegrass.

“I’ve grown a lot of Choice chicory in the last three years and it’s a great herb for providing rapidly digestible feed during spring, summer and autumn,” he said.

“Chicory is a short to medium term perennial which is best suited to our rising country because it doesn’t like wet feet.

“After two or three years, the chicory is oversown with ryegrass, while our perennial pastures are sown on our heavier soils.

“My target is to grow as much feed as possible, even though our cows still receive about 1.8 tonnes of grain per head each year.”

It’s a philosophy that paid dividends last year, when Mr McKillop added another 32 cows to his herd to make the most of plentiful grass and feed.

“This made a huge dif-

Scott McKillop

ference to our bottom line when milk prices were at their highest,” he said.

“By matching our stocking rates to the available feed, we can respond quickly and take up the opportunities.

“It’s all about finding the sweet spot for your operation.”

A member of a dairy business discussion group, Mr McKillop has a keen understanding of the key drivers of his farm business and ensuring its viability for the long term.

He enjoys talking with other dairy farmer members of the network to share their knowledge and experience.

He said dairy farmers were putting a lot more pressure on their perennial pastures these days, grazing them more intensively, applying fertiliser and cutting them for silage.

“Under current systems, we can’t expect our perennial pastures to last five or six years, particularly in warmer regions like north-east Victoria.

“If we get three or four years out of a perennial ryegrass, I think we’re doing well.

“When resowing, I like to choose the right cultivars for our situation, and make sure I do the job properly, without scrimping on sowing rates or inputs.”

Mr McKillop is adapting his plans for the coming winter season following the tough summer.

“Fortunately, I believe we will be able to carry our cows through till June or July on our silage stores from 2012 and 2011,” he said.

“These reserves include 1800 wet tonnes of pit silage and 1000 bales of hay.”

Dairy NewS AUSTRALIA may 2013

animal health // 27

Knowing your cows pays off rick bayne

Andrew Schulz’s

philosophy about dairy farming is pretty simple and can be summed up in three words: “Know your cows”.

The Glenfyne dairy farmer knows his cows and the results show.

“It’s a lot of common sense really,” Mr Schulz said. “Animal health is one of the biggest issues on a farm. You can argue all you like but having a good herd is how a farm makes money.

“You’ve got to know your cows to have a good herd.”

Mr Schulz was recently named Dairy Australia Employee of the Year at the Great South West Dairy Awards in recognition of his four years as farm manager on Bryan and Jo Dickson’s farm at Glenfyne in south-west Victoria. In that time he has helped the farm to double production, improve its bulk milk cell count, reproduction rates and overall animal health.

Knowing his cows pays off in many ways. Recently Mr Schulz noticed one cow wasn’t in her usual spot at milking time.

“She’s usually in the first two or three rows but she was in the last run. I checked her and found mastitis. That’s how well you have to know your cows.”

That case of mastitis was the first one detected this year after calving in the 375-strong herd, a big improvement over pre-

vious years where 10-15 problems were detected.

The healthy cows are reflected in the BMCC where the farm is rated in the top 10% and continuing to move up the list, high in-calf rates and solid average production rates of 8500 litres and 640kg milk solids.

“We’re happy with those figures,” Mr Schulz said.

The herd has grown from about 250 cows when Mr Schulz started four years ago. “When I started we were doing 1.4 million litres – this year we’ll give 2.9 million a real scare,” he said.

“We broke 11,000 litres a day last year and at the moment we’re up about 10-15% on last year.

“That’s due to culling heavier, feeding better and having better cows.”

The farm has 70 Jerseys with the remainder Holsteins and crossbreds.

“I prefer Jerseys for ease of handling and because they’re easy to get in calf.

We’re building up the Jersey numbers with about 30 heifers a year and hope to have a half and half herd.”

Mr Schulz, 46, grew up around calves on his parent’s dairy farm near Echuca in northern Victoria. “Dad taught me a lot about cows and the importance of keeping them healthy,” he said.

He later worked as a shift supervisor at an abattoir before returning to the farm after his father died in 2003.

However, successive droughts left him wanting

In the first nine weeks last year 75% of the herd was in calf.

Who:

Andrew Schulz Where:

Glenfyne via Colac What:

Animal health

to get out, even if selling was tough, and he moved south in 2009.

“It’s a very different way of farming down here,” he said. “I looked at how green it was and thought `heaven’.”

The 216ha farm with 145ha milking area includes a top area and steep declines to the Curdies River. Over recent years it has been extensively re-sown with ryegrass. The farm employs about 2 1/2 staff, including Mr Schulz’s wife Beth and workers rotating from the Dicksons’ other farm.

“We’ve got good feed and so we could push up the numbers,” he said.

“We cut about 400 rolls of silage last year and brought in 150 tonnes or lucerne silage and 115 tonne of vetch, which is a bit more than usual because it has been dry.”

The farm also has a feed pad which is used virtually daily except for spring. “We let them eat as much lucerne silage after each milking,” he said.

Herd testing and heaving culling have been key ingredients of the farm’s success.

“I don’t know why everyone doesn’t herd test,” he said. “We bring in 50 or 60 heifers a year and have to make room. To get a good herd of cows you have to be a bit ruthless. I have sold very good cows because they have got mastitis three times.”

Mr Schulz takes care to prevent disease and places high importance on hygiene.

He is a strong advocate of Teatseal, lathering the cows with iodine when they come in the dairy after calving, and using gloves when handling the cows.

“There are little things you’ve got to do, like not letting them run down

Andrew Schulz will milk 2.9 million litres from 375 cows this year.

the laneway when they’re drying off.

“Hygiene has a big part in it. We take our time and make sure we do it right.”

The farm has an excellent reproduction record.

In the first nine weeks last year 75% were in calf.

“We only use A.I.” he

said. “The herd is better because we get rid of the low-fertile cows and use the best A.I. “It comes back to knowing your cows. If you know them you notice when they’re fidgety and making a lot of milk a couple of days before

they’re in season.

“When they’re joining we feed them oaten hay and an optimiser pellet that is higher in energy and then put sugar in the pellet for more energy. A lot don’t do this because of the cost but it pays you back because they get in

calf.

“We also do heat detecting because it’s important to get them in calf in the first week so you get that extra milk.”

Mr Schulz also enjoys breeding and showing cows, with Jerseys his favorites.

IN UDDER WORDS...

Planning – the key to dry off success With many herds drying off large numbers of cows in the coming weeks and months, planning is vital in ensuring a smooth and efficient dry off.

Selection of dry cow products – blanket or selective treatment and which product to use?

• A im of dry cow therapy is to treat existing subclinical infections and to prevent new infections in the dry period.

• B road spectrum, long acting treatments ensure adequate antibiotic levels in the udder in the critical pre-calving period, when many new infections start.

• A sk your vet about the dry cow treatment that has a label claim to help reduce clinical and subclinical mastitis in the subsequent lactation.

Vaccination programmes – prevent disease, ensure dose programs are followed.

• C attlevax® 7-in-1 – for protection of cattle against Clostridial diseases and Leptospirosis.

• B ovilis® S – to help protect the cow and calf (through colostrum) against Salmonellosis • B ovilis E (Bovac®) – to help control E.coli scours in young calves ( through colostrum) • R otavec Corona – a new vaccine against calf scours caused by Rotavirus, Coronavirus, E. coli and Clostridium perfringens.

All of the calf scour vaccines boost colostral antibodies so colostrum management is vital.

Drenching programme – which drench to use at dry off, are young stock due for a drench?

• P aramax® Pour-On contains Ivermectin and will treat and control all major gastro-intestinal nematodes (including inhibited Ostertagia), lungworm and external parasites (lice, mites, Buffalo flies and cattle tick).

• S tudies have found that treatment with Ivermectin at Drying Off resulted in significant increases in milk production in the following lactation1 (up to 74 litres over the first 100 days) and also decreased calving to conception intervals as compared to untreated cows.

Coopers® have a team of Territory Sales Managers supported by Technical Service Veterinarians to help you plan your dry-off this season. Call 1800 885 576 for more information.

1. Walsh, T.A., Younis, P.J and Morton, J.M. (1995). The effect of ivermectin treatment of late pregnant dairy cows in south-west Victoria on subsequent milk production and reproductive performance, Australian Veterinary Journal, 72, 210-207. ® Registered Trademark.

Dairy News AUSTRALIA may 2013

28 // animal health

Dairy matting improves farm flexibility chris dingle

When Tom Paton made

the move back to Koroit to take up his fifth farm in 15 years there was a lot of work to be done to get it up to scratch.

“The whole place needed refurbishing,” said

Mr Paton, when we visited him at the end of February.

“We started with the paddocks and are now working on the shed.”

Mr Paton was originally from Koroit where he worked with Murray Goulburn Co-op for 30 years.

He and his partner

Helen Kincaid took up this current farm on June 1 last year. They are currently milking 500 cows on 300ha through a 44-unit rotary. They brought some cows here and bought in others.

Jamie Kelly is the operations manager at the dairy and all three get

involved on the milking.

One of the major improvements in the dairy was to fit rubber matting in the stalls on the platform.

Mr Paton said they couldn’t bring heifers onto the platform, and decided to fit WestfaliaSurge Studflex matting which took

three hours.

“It’s brilliant - you’d think that they had been on a dozen times, not one kicked,” Mr Paton said.

“We couldn’t believe how well it all went.

“Now we are saving a fortune in time and labour through lead feeding on the rotary instead of in the

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Tom Paton and Helen Kincaid

“We are bringing on 80 heifers and we are lead feeding 200 cows on the rotary.” paddock.

“We are bringing on 80 heifers and we are lead feeding 200 cows on the rotary.

“They get the right amount each of all the rations that they need. It only takes 25 to 30 minutes a day.”

GEA Farm Technologies Australia, distributors of the matting say that Studflex rubber matting is durable, dimensionally stable and cow-friendly.

The rubber compound offers high grip and comfort, sound absorption, and excellent softness.

The cows become calmer and quieter when standing and there are Studflex options for all areas of the

milking shed.

Mr Paton said they are pregnancy testing and prostaglandin injecting on the rotary, when they couldn’t do it before, and the cows are not kicking any more.

“We have always had matting on the floor of the on and off sections of the platform, but I’m kicking myself that I didn’t have it on the stalls at my previous place.”

Mr Paton said they milk all year round with 50% autumn and 50% spring calving.

He reckons they will build up to 600 cows; “All things going well, we’ll purchase more ground next door.”

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© 2013 Zoetis Inc. All rights reserved. Zoetis Australia Pty Ltd 38–42 Wharf Road, West Ryde, NSW, 2114. 04/13 AM971/B PAL0947/DN

Operations manager Jamie Kelly PAL0947_DN_260x185.indd 1

19/04/13 4:23 PM

Dairy NewS AUSTRALIA may 2013

animal health // 29

Incidents of LDA on the rise For a variety of reasons, we are seeing an increase in autumn calving cows in Northern Victoria. Just in the last week or two, I have noticed a real spike in the number of cows with Left Displaced Abomasum (LDA) so I have been up to my armpits in bovine intestines.

To be honest, doing LDA surgery is my happy place (which my wife Julie thinks is a sad reflection on my life). It is something I really enjoy doing. It takes a cow who is circling the drain and on her way to either the chopper pens or the knackery and pulls her back from the brink, and into full production.

Also once you are “scrubbed in” to a surgery, you can settle in for a chat as you know you have no other place to be for at least the next 30-45 minutes. As my clients would attest, I really hate a chat!

Of course, there are always exceptions, but the vast majority of LDA surgeries, if done in a clean and timely manner, go very well. I have tried rolling cows, blind toggling them and even running them up and down hills and drenching them with coffee grounds to correct their LDA, but in my experience, nothing beats a right-sided pyloropexy.

I shave and prepare the right hand side of the cow, put a local anaesthetic nerve block into her, and the cow stands through the whole procedure (when it goes to plan). By deflating the gas in the LDA when necessary, then either sweeping or pulling the displaced abomasum across to the right hand side of the cow, the cow’s digestive juices can flow again as she was designed. I try to place two or three sutures into the muscular pyloris (the part of the stomach where the abomasum empties into the intestines) and attach the pyloris firmly to the body wall. This is the “pyloropexy” which will hold the abomasum in place, and allow the cow to return to full production.

Without exaggeration, I have done literally thousands of these operations, yet not one is ever the same. Cows who have been very ketotic either secondary to the LDA causing indigestion and hence

a negative energy balance, or cows who have primary ketosis and/or fatty liver disease (which is one of the highest risk factors for developing a LDA) may have very friable omental fat making pulling the abomasum into place a challenging dilemma.

Cows that have developed abomasal ulceration due to the stress of calving, or the pooling of the digestive acids in the displaced abomasum, can develop huge adhesions making the task of correcting the LDA almost impossible. Foreign bodies of string, hair, fibre, silage wrap etc (phytobezoars) can seriously complicate the procedure and may result in the death of the cow.

We know that LDA is often a disease that would indicate a less-than-ideal transition. It is strongly correlated with all of the metabolic diseases that we associate with calving like milk fever and ketosis. Calcium is essential for muscle contraction, so a cow that has milk fever will not have normal gut motility or tone and therefore is at a high risk of LDA. Ketosis can lead to a loss of appetite and a gut that lacks fill is able to displace more easily.

I strongly believe that, in my area, the issue at present is a lack of effective fibre. Autumn, even more than spring, due to the high use of annual pasture like rye and shaftal clover, is a time of short, extremely lush pasture in the Goulburn valley and many other regions. A lot of producers will feed straw, as a source of long, effective “scratch factor” fibre during times of extremely lush feed. The problem is the cows will often not eat enough straw, even when fed free choice and ad lib where really lush pasture is on offer.

I liken this to offering a child the choice between chocolate and fried chicken or vegetables and salad.

The vegetables and salad will make them healthy, but that chocolate and fried chicken tastes great. Securing (or reserving) some highly palatable cereal hay for this purpose is what I recommend to counteract a shortage of effective fibre.

Problems that lead to reduced feed intake, at any stage of lactation, will also

increase the risk of a cow developing an LDA. For example I would always recommend checking a cow for LDA post lameness if she fails to thrive, even after the lame foot has been treated and seems better. I have seen many cases of LDA in mid and even late lactation cows

animal health rob bonanno which have lost condition and done poorly after being

lame. Unfortunately, often these cows have been displaced for a long time by the time they are examined, and they are poor candidates for successful (or more accurately economically justifiable) surgery. Many producers simply don’t think to check for a LDA in a cow who is

not “fresh” or being fed high levels of grain.

For this reason, I am certain a proportion of cows that are culled post lameness for poor performance actually have LDAs that are left undiagnosed because the farmer simply sends his problems away in the back of the truck.

As always, I would recommend discussing this or any other animal health disease with your dairy veterinarian.

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

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Dairy News AUSTRALIA may 2013

30 // animal health

The importance of water Katrina Lee

Milk comprises

almost 90% water, so it’s not surprising that a cow’s water intake has a major impact on her milk production. The equation is simple: when you provide enough water, cows drink more, eat more and produce more milk.

Increased water intake improves milk production It might sound straightforward, but the amounts

of water involved are significant. For example, one kilo of dry matter intake utilises up to five litres of water. In fact, cows need at least three litres of water to produce a single litre of milk. This means that high-yielding cows need more than 150 litres of water every day. Satisfying this need is, therefore, a crucial task for every dairy farmer.

Make drinking easy and convenient Cows drink fast – up to 20 litres per minute.

If they can’t, their water intake may fall off and their milk yield could suffer. For example, a 40% reduction in water intake can cut milk production by 25%. Cows like to drink when they eat and just after milking. They also prefer a large, calm drinking surface from which they can drink quickly and without stress. Furthermore, such natural drinking behaviour promotes further eating and even more drinking.

And this results in

healthier cows and higher milk yields. There is a costefficient way to increase milk output.

A way that is often overlooked: optimising water supply. Cows like to drink at certain times of the day, they are fussy drinkers.

Understand your cows’ needs Water supply products should meet your cows’ physiological and social drinking requirements. Water troughs should provide easy, con-

venient access to water, in feed pads, loose housing and pasture. Cows should be able to drink as much as they want and as quickly as they want without having to wait. The water they drink should be fresh, clean and good-tasting.

Water troughs should minimise microbial growth and hinder dirt pollution. They should be easy to keep clean, so you save valuable time. Durable, well-proven water troughs promote years of reliable, trouble-free operation that

you’ll appreciate as much as your cows will.

Hygiene, capacity and accessibility are critical factors when supplying water in a loose-housing environment. Use either UV resistant polyethylene or stainless steel in hygienic, impact-resistant

and durable water troughs, together with high capacity water valves. The cowfriendly design of water troughs should provide easy access to promote comfortable and undisturbed drinking.

• Katrina Lee is solutions manager with DeLaval.

Heifer weight impacts second, third lactation Heifer weights were the topic of conversation

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for farmers at Jock O’Keefe’s farm during the ToolongKoroit discussion group day at Minjah.

Dairy Australia’s new Heifers on Target program was piloted during the day.

This included using the new app tools for smartphones or computer to benchmark heifers and calculate their daily target weight gain and nutritional needs.

Agribusiness Consulting’s Janet Sloan facilitated the day, with input from Warrnambool Vet Clinic’s Dr Stephen Jagoe.

“Heifers are a significant investment on farm and their management has long lasting effects. “At the point of calving it is estimated that a heifer has cost between $1300 to $1500, not including labour costs,” Ms Sloan said.

Farmers at the day discussed their ideal heifer whose traits included: ■■ Getting in calf quickly; ■■ Calving without problems; ■■ Producing well; ■■ Getting back in calf (many times) ■■ Recouping her rearing costs quickly.

Good heifer management and reaching heifer target weight is vital as it directly impacts on milk production and fertility.

Research shows that the benefit of higher liveweight at first calving is transmitted to the second and third lactation.

For every kilogram of live weight, an extra seven litres of milk is produced per year for each heifer. This may seem small but can translate to a huge difference in production across the herd.

Liveweight is a better measure of when heifers commence oestrous activity rather than age. Heifers that are grown well will get in calf more rapidly, and heavier heifers will conceive faster the second time round.

Dr Jagoe highlighted that good skeletal growth led to fewer calving problems, and feeding heifers to reach their optimum weight would help achieve this.

Measurement is the best way to take the guesswork out of reaching your target heifer liveweight.

Before Mr O’Keefe started his weighing program three years ago, he used to wean, drench and feed-out until joining and hope for the best.

Now he weighs his heifers regularly and has the information to correctly balance their diets to achieve his target growth before calving.

“By actually measuring the weights of heifers you can make more informed decisions to keep your heifer’s growth rate on target. It takes all of the guesswork out of feeding and rearing,” Ms Sloan said.

Farmers who do not regularly weigh their heifers can use other benchmarks to assess their heifer performance and make sure they are on target to achieve desired goals.

More of the free two-hour Heifers on Target sessions are being held in the south west until June 2013. Contact WestVic Dairy on (03) 5592 2477 or visit website www.dairyaustralia. com.au/heifersontarget

Dairy NewS AUSTRALIA may 2013

machinery & products // 31

Australian-built spreader does job of two machines At just 27, Brett Craig, of Swan He spread 2000 tonnes altogether last Marsh in Victoria’s Western District, year.

The spreader uses a ground drive near Colac, has been contracting for over 11 years, which means that he system to the cleated PVC conveyor and has twin hydraulic spinners, which have started his business at the age of 16.

As well as the contracting business, a maximum speed of 950 rpm. Landaco he is now sharefarming with 140 Hol- claim that the LS2000 will effectively stein, Jersey and Ayrshire cows on an 11 spread just about any type of material double-up shed on the 116ha property including lime, cow manure, chicken where he grew up and where his par- litter, MAP, DAP, dolomite, super and ents, Lindsay and Eileen, sharefarmed others.

Mr Craig said that calibration of the for 42 years.

He milks every morning, but not spreader is made easy through an ‘app’ that Landaco loaded up for him on his often at night during the harvest.

Mr Craig ran a Marshall Multispread mobile phone.

“Every blend is a different weight, 825t trailing spreader for seven years and said he had a good run from it, but so I keep a set of good quality kitchen scales in the cab.” last June he took delivHe said that he inputs ery of a Landaco Agrisratio (the speed of the pread Linkage LS2000 belt), the density of the manufactured in Wagga blend in kg/m3, spread Wagga, NSW. width required and the He first saw the Landdoor height into the aco spreader at the Farm spreadsheet, to get the World Field Days some application rate. time ago. “I’ve been drib“So working off that bling over it for years,” working clothes rough guide I’m able to said Mr Craig. “I could chris dingle change the door height see it would do the job of to meet the required two machines. You need a belt spreader for lime and gypsum. application rate. You don’t have to run This belt floor handles super well. The the spinners at all when you are setting European machines, with gravity fed it up.”

The in-cab monitor that came with straight onto the spreading vanes, can’t do the same job. If it’s wet the material the spreader gives a digital display of the speed of the spinners. doesn’t flow.

The spreader is operated with a “The Landaco is Australian-built and heavier built than anything else. Valtra T140 tractor, and Mr Craig said I’ve spread up to 32m, it handles 30m there is not much power required; it just needs to handle the weight. beautifully.”

All his 25 contracting customers are The Agrispread Linkage LS2000 has an 1800 litre hopper (2000 kg) and dairy farmers and the spreader suits all Mr Craig went for the optional elec- their required applications. He has been tronic scales which are Australian-built able to set the machine up precisely.

Elphinstone brand. Another option was “Farmers are paying good money to stainless steel bolts to avoid corrosion. have it done properly.”

“This is the first thing that I have He is using it for about 90% contracting and the rest for his own use. At this bought that nothing has gone wrong stage he has spread about 500 tonnes. with, particularly with the electronics

Swan Marsh dairy farmer Brett Craig also runs a contracting business.

Who:

Brett Craig Where:

Swan Marsh What:

Landaco Agrispread Linkage LS2000

and the way it is assembled,” declared Mr Craig. “I was a bit wary of buying direct instead of through a local dealer, but that has worked out well.”

Spreading is normally from March to January, but it’s been a very dry season

The Australian-built Landaco has a 1800 litre hopper.

in this district.

“We went from being too wet to get onto the paddocks to no rain at all. It’s very dry at the moment – hardly any rain since October.” So it is a late start this year and Mr Craig was looking at late April to kick off.

Otherwise he has had a good season – the contracting is constant.

Other equipment in the business includes a Lely Tornado baler/wrapper, Krone mower/conditioner and a Duncan Renovator seed drill that he has had since starting contracting.

The Marshall spreader has now been traded on an Amazone power harrow/ air seeder combination.

Mr Craig has a philosophy of ‘one thing at a time’ with his contracting, rather than several machines and different tractors which would necessi-

tate extra labour. He wants to keep it going as a one-man operation. However he will look at a second tractor to make change-over easier.

The spreader is operated with a Valtra T140 tractor.

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Dairy News AUSTRALIA may 2013

32 // machinery & products

New balers improve bale density by 5% NEW HOLLAND has launched a new BigBaler range said to be capable of lifting farm capacity 20% and improving bale density by as much as 5%.

Features include the maker’s new MaxiSweep pick-up and enhanced precompression chamber

crop flow monitoring. The machines also have New Holland’s CropID system and double knotting technology intended to help professional hay and forage operators improve their baling.

Built at Zedelgem, Belgium, it has been engi-

neered “to meet the stringent quality, productivity and reliability requirements of modern baling businesses”.

The four model range produces bales from 80x70cm to 120x90cm.

Crop-to-crop flexibility is said to be impressive.

Next Generation Big Baler.

Bigger and better ■■

A good start

■■

■■

The new balers lift farm capacity by 20%.

■■

The BigBaler “promises performance in conventional crops and non-traditional crops such as sugar cane and maize stover”.

“Over 200,000 bales, equivalent to 10 seasons output, were produced before even the first production BigBaler rolled off

the line,” says New Holland product specialist Greg Moore.

“The prototype models spent two harvesting seasons, and baled about 20,000 bales in New Zealand in a variety of crop types and conditions and performed exceptionally well.”

■■

■■

■■

■■

Up to 20% capacity increase and up to 5% denser bales for improved productivity New MaxiSweep pick-up performance for improved feeding Variety of crop processing options for tailored crop management Best-in-class SmartFill feed indicator system ensures uniformly dense and well-shaped bales Plunger speed increased to 48 strokes/minute for faster crop throughput Improved knotter shielding and impressive cleaning performance increase bale productivity Colour touchscreen monitor for wide-screen baler management Improved lighting package and operator comfort boosting performance.

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Lely Compedes rubber flooring - best possible traction and animal comfort.

For more information, visit www.lely.com, call (03) 5484 4000 or email lelyaus@lely.com

NO JOB is too big or too hard for Numedic’s new pond mixer, says company director Peter Reid.

The new mixer has been designed to eliminate the problems of crusting and agitation of dairy effluent ponds, he says. It also meets the challenges of high input farms and large effluent ponds.

Reid said the mixer will break up the thickest crust and mix the contents of any shaped effluent pond quickly and efficiently.

“No longer will you be left with a metre or two of sludge at the bottom of your pond that you cannot pump,” he said.

“Superior mixing will let you utilise the entire pond, not just the top 70%, enabling you to reclaim back all of your storage pond capacity. No longer will you need multiple mixers on your pond, or mixers that require to be run for long periods of time.”

The mixer is positioned in the centre of the pond on a pontoon. Two opposed mixer blades pointing downwards draw the effluent towards the mixer and create a swirling motion in the pond. Blade speeds are selected depending on the pond dimensions and thickness of the material that requires mixing. The blade speeds are controlled through a variable speed drive that can also be programmed to rotate at slower speeds

Numedic’s new effluent pond mixer makes short work of crust.

as the pond level reduces which helps prevent liner damage.

The lower unit, incorporating both propellers, rotates through 360o. It can be locked in eight different ‘stir time’ positions for variable lengths of time (see chart). “We have found that time intervals of between 5-8 minutes per position are best,” said Reid.

These stir times can be altered and programmed with the variable speed drive.

After the pond has been mixed in position #1, the lower unit rotates to position #2 where the change in directional flow ensures it begins mixing a new section of the pond.

When the mixer has moved through its eight different stir positions it has mixed all 360o of the pond

leaving no dead or unmixed areas of the pond, irrespective of shape.

The Numedic pond mixer has been operating on a 60 x 20m storage pond since September 2012 where it has been operating well.

Reid said typical responses from farmers are “brilliant” and “performing flawlessly”. He said on one farm, before the Numedic pond mixer was installed the pond had severe crusting with one third of the pond having a 1m thick crust. The rest of the pond had crusting 300-500 mm thick. The mixer broke up the crust in 2.5 hours.

The machine will be supplied with variable speed drives wired up and programmed to suit the buyer’s pond.

Contact Australian distributor GEA on (03) 9335 9533

Dairy NewS AUSTRALIA may 2013

machinery & products // 33

Coupling system covers all options Walterscheid has

developed a modular coupling system allowing various combinations for the different tractors to meet all the diverse demands of the agriculture market.

The Ball Coupling System K80 from Walterscheid sets new standards of safety and convenience when driving drawn implements – like trailers, loader wagons,

manure spreaders, liquidmanure tanks etc. – with high drawbar loads.

Particularly when driving, the overall system – comprising tractor, coupling system and drawn implement – is exposed to severe impacts and jolts.

As a result, driving safety is impaired and the coupling device is subject to extensive wear.

The Walterscheid K80 Coupling System

draws implements without any impacts and play whatsoever – even on difficult terrain and relatively high driving speeds.

The K80 ball at the back of the tractor and the cup on the implement side have a large contact surface: they engage positively, but nonetheless display extreme angular mobility.

Consequently, this

coupling system doesn’t jam, not even at such extreme driving angles as encountered in many applications, eg turning at headlands.

Additional to that, connection and disconnection are also possible at axial and vertical angles of well over 20 degrees.

The K80 System is specifically designed for drawn implements with

high drawbar loads up to 4000kg provided the tractor has corresponding approval.

Different kind of tractor ladders, drawbars, hitches and cups are available for nearly every tractor on the market.

The K80 System is available through the Walterscheid dealer network or contact the company direct on (03) 9580 7300.

Eugen Bluem with the Walterscheid K80 coupling system.

New Netafim valves improve efficiency A NEW range of valves from irrigation company, Netafim, promises increased efficiencies for operators.

The company has launched a new generation of cast iron, chemicallyresistant polypropylene and plastic valves available in a range of sizes and configurations for irrigation and industrial markets.

Netafim Valve product manager Peter Sullivan said the new valves, which were replacing the company’s Raphael range, incorporated latest advances in technology to create an extremely efficient valve.

Mr Sullivan said all valves featured lower opening pressures, which would help to reduce energy costs.

“Operating pressures start from just 0.3-0.4 Bar,’’ he said.

“The valves offer high flow range capability and low head loss.’’

Mr Sullivan said an innovative internal body design also provided for extremely fast valve responses.

Other features included ease of

connection, a long neck body to the flange, which aids easy assembly and installation, and the valves can be used with a full range of threaded and Victaulic end connections.

There is also a full range of plastic and metal pilots, solenoids and accessories to suit a wide range of configurations.

Netafim’s plastic valves come with a universal flange, allowing easy connection to different flanged tables. Cast iron valves suit standard Table D flanges, but can be supplied in other valve configurations upon request.

“There is capability to self-configure the valves to specific requirements. They can be hard plumbed in copper and stainless steel upon request,’’ Mr Sullivan said.

The new generation of Netafim valves are manufactured to ISO 9001 international standards. The cast iron valves are rated to PN16, the plastic valves to PN10 and the polypropylene valves to PN8.

Netafim Valve product manager Peter Sullivan and chief valve assembly technician Alex Lakous pictured overlooking the company’s new valve assemblies.

Tel. (03) 8331 6500

New feature – now with rodent stop

Variable speed gearbox

Strong construction

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

Aitchison, now that’s a smart choice Specifications 2014C

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Starting at $16,995.00 INC GST

Dairy News AUSTRALIA may 2013

34 // machinery & products

Big red still delivers

Total solutions for dairying

adam fricker

GEA Farm Technologies

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.

HONDA’S BIG TRX500 had dropped off our radar recently, with a wave of large capacity imports taking more of the quad limelight.

Blue Wing Honda loaned us a TRX500FPA so we could get reacquainted with the ‘big red’. It remains a great ride and all you need in a large quad for the farm.

The TRX500FPA has a 499cc OHV liquidcooled single with 92 x 75mm bore and stroke – a strong engine which coped well lugging through slow, tight forest sections of the track we tested it on, and it was equally happy being opened up for a blast home along a surf beach at 60km/h.

You can still order the 500 with a manual gearbox, but we’d opt for the automatic fitted to our test bike, which has a manual mode available should the rider want to hold a gear for steep conditions or while towing. The manual selection is quick and helped with some steep descents, although even left in automatic, the engine breaking on its own would have stopped the big Honda running away on us. Low ratio was only needed once on a very steep section.

The other feature on the FPA model is power steering – an option on the lesser variants of the 500 and one we do not hesitate to recommend. It takes the shock out of the handlebars over rough ground and makes it safer and easier to manoeuvre regardless of the conditions as the bars won’t wrench in your hands like unassisted steering can.

Weighing 294kg the TRX500 is not a fatty, but is still a big unit and the power steering certainly makes it more nimble.

Time didn’t allow for a tow test, but we know from previous tests that the TRX500 is fit for the task, especially with the rigid rear axle that maintains ground clearance regardless of load.

Bikes with independent rear suspension generally soak up the bumps better than the solid axle with dual-dampener swing arm on the Honda, but it is still a comfortable ride and farmers will want to consider the towing and

The Honda TRX500 remains a great ride.

maintenance advantages of the simpler set up.

Overall comfort and usability on the 500 is excellent. The 861mm seat height will accommodate most riders well. The independent double wishbone front end is compliant, and the single-gate gear selector is, like most of the major controls, intuitive to use.

You can buy cheaper quads, but this is a convincing package.

Tel: 1300 559 846

GEA Milking & Cooling

High-quality products for manure handling Houle electric effluent pumps and agitators a full line of equipment to cover all applications

GEA Farm Equipment Houle

Kuhn area sales manager Sarah Govier.

Speed rakes need low power ON DISPLAY at the recent South Island Field Days in New Zealand was the latest Kuhn SR310 and SR312 rakes out of the company’s North American stable. Both are from

Looking for the most efficient upgrade?

Choose WestfaliaSurge IQ clusters for faster milk out, improved udder health, cleaner milk.

“We are milking 280 cows an hour, without pushing it. We can put the cups on three cows in the time that it took to do two.”

John Watson, Cobram VIC.

GEA Milking & Cooling

GEA Farm Technologies The right choice

GE11360

Call 1800 789 100 for the name of your nearest dealer Email info.auft@gea.com www.gea-farmtechnologies.com.au

the Speed Rake 300 series of high capacity carted wheel units.

The SR310 has five wheels aside and can cover 5.3-6.3m; the SR312 with six wheels can cover 6.3-

7.4m. Both models can be closed hydraulically to transport at 2.7m and the wheel lift is also hydraulically operated. Both machines need two double acting hydraulic outlets.

Tractor power needed is as low as 20hp with each floating rake wheel being spring suspended on curved rake-wheel arms, to follow the ground contour with less ground pres-

sure, disturbing less soil and producing cleaner hay.

The windrow width can be altered from 0.914m to 1.83m. The rake is easily converted from a base 10 raking wheel model to 12 raking wheels to suit customer needs.

The product was supported on site by Kuhn’s area sales manager Sarah Govier. She is from England and has been with the company 11 years mostly at company headquarters in France and the last 18 months in Melbourne. www.kuhn.com.au

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BREAKING NEWS MANAGEMENT STORIES MACHINERY REVIEWS AND MUCH MORE...

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Proven to make a difference BUDDHA and MEDALLION remain two of the breeds best.

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