Dairy News Australia June 2013

Fresh Chinese demand for heifers page 3 TIME SAVER

Remove bale wrap from tractor cabin

PAGE 31

CALF REARING

Fine-tuning a vital stage

PAGE 27

june, 2013 Issue 37

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www.dairynewsaustralia.com.au

show us the money

Murray Goulburn opens at $5.60kg/MS. Is it enough?

PAGES 4-5

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news // 3

China seeks heifers at half the price rick bayne

WA farmer Wayne Owston manages dairy farm, Karnet, manned entirely by prisoners. PG.08

Northern Victorian farmers Leigh Verhey and Angela Turner have improved milk solids and profitability through their Focus Farm involvement. PG.20

Australian dairy heifers are heading back to China but farmers won’t be making as much money as last year.

A new shipment of unjoined heifers will leave Portland in July – the first under a new round of contracts - but the prices will be barely half what was being paid this time last year.

Prices peaked at $1700-$1800 in 2012 but similar 200kg-plus Chinaready heifers are likely to get only $900-$1000 this year.

Elders International general manager of meat and livestock trade, Hamish Browning, said overall prices were down by at least $600 to $800 and were not likely to rise to

NSW farmer Sam Graham uploaded five years’ worth of herd recording data to ADHIS in seconds following a software upgrade. PG.26

News ������������������������������������������������������3-13 Opinion ���������������������������������������������� 14-15 Agribusiness ������������������������������ 16-17 breeding Management ������18-19 management ������������������������������ 20-23 Animal health �������������������������� 24-26 calf rearing ������������������������������ 27-30 Machinery & Products ��������������������������������������� 31-34

Groundwork has begun on the ambitious Into Dairy project in Tasmania, which aims to bring more than $500 million in investment to the state. Pg.06

last year’s record levels.

“Exports have cautiously resumed but at a much lower volume than last year and with extreme price sensitivity,” Mr Browning said.

While the market was “finding its feet again” he was unsure if it would involve big numbers.

“We’re confident more business will be written if we can manage the prices and keep them realistic.

They’re not going to go up to even $1300-$1400 this time. If it does, the market will stop because the Chinese can’t get enough return on them.”

Mr Browning said Australia needed to reinforce its reputation for providing good quality heifers.

“We need to focus on quality,” Mr Browning said.

“We will do our best to get the best possible rate and to show that we can deliver impressive production and breeding performance so they can afford to pay more, but the market has to see a good result out of it.”

Mr Browning said the prolonged slump happened when the market became “over-heated” due to the high prices and because of reductions in government support. Earlier this year 85% of the Chinese Central Government was replaced, resulting in substantially slower support in land grants, subsidies for importing heifers and allowances for building dairies.

“The industry in China relies heavily on these supports for capacity to engage in new projects,” he said.

“There was a slowing down of bureaucracy in the changeover and Australia has to understand that.”

Australian farmers remain cautiously interested in exporting heifers but Mr Browning warned that they should not expect higher prices.

“We have a steady market and a number of positive projects, but the Chinese market will remain very sensitive to price.

“Around $900-$1000, depending on specifics, is seen as a more sustainable level but if there is too much upward pressure it won’t happen.”

Interest is also building in the Middle East, Baltic region and northern Africa but Mr Browning said nothing was confirmed at this stage.

Dairy News AUSTRALIA june 2013

4 // news

Murray Goulburn opens at $5.60 rick bayne

Murray Goulburn will open the season with an effective initial price of $5.60 per kilogram of milk and forecasts an end of season price range of $5.80$6kg/MS. The actual opening price is $5.47kg/ MS with an option of a 13 cent pre-paid final step up.

The opening price last year was $4.50kg/MS. MG managing director, Gary Helou, said the combination of a 24% increase in the price available to suppliers at the

start of the financial year, changes to the milk payment system and the offer of a pre-paid step-up would deliver an increase in cash of about $200 million to the co-op’s suppliers in the first half of next season compared to 2012/13.

The forecast end-of-season milk price for 2013/14 is a range of $5.80 to $6.00kg/MS (about 45 cents per litre).

“MG’s opening price reflects the positive impacts of the $100 million operational savings, higher world dairy ingredients prices and a softening Australian dollar,” Mr Helou said.

“Demand for dairy food remains strong in key markets in Asia and the

Middle East with growth in traded global dairy market expected to exceed 5% per annum.

“On the other hand, global supply of dairy products was hampered by negative seasonal conditions in key exporting regions, including New Zealand, Australia and Europe.

“Growth in global traded milk supply this year is expected be less than 1%, or half the previously forecast 2%. This shift in the balance between supply and demand has resulted in the recent surge of international dairy prices.”

Mr Helou said although prices were expected to stay strong during the

next six months, factors like growth in supply, foreign exchange and continued strong demand would shape prices during the second half of the year.

Mr Helou said the MG Board had approved a special pre-payment of 2013/14 milk proceeds of 9c/kg of butterfat and 19c/kg kilogram protein to be paid on July 15 - injecting $31 million into suppliers’ cash flows.

“This early injection of cash at the beginning of the new season will be a major boost to our supplier shareholders who are enduring tough seasonal conditions and higher input costs,” Mr Helou said.

Mr Helou said previously announced changes to MG’s milk payment system would bring forward more cash to most suppliers. “We have moved approximately $35 million from off-peak to peak months and made a range of other changes to improve the balance in our payment system,” he said.

In other price developments United Dairy Power has flagged an opening milk price of $5.80kg/MS, to be confirmed to the company’s 200 suppliers this month.

UDP is seeking as much as 80 million litres in additional milk supply in 2013/14.

What is a fair farmgate price for 2013/14?

Nigel Hicks Wyuna Price $6kg/MS At the bare minimum we need $6kg/MS. Everything has gone up including power and insurance and many people will be carrying debts over from the drought and this season. It is hard to know whether to dry the cows off or keep milking, either way it is costing us money. I think there is a disparity in payment systems, what they claim to pay and what you receive can sometimes be two different things.

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Global prices fall as NZ season improves Sudesh Kissun

GLOBAL DAIRY prices fell at the first

auction of the month – the third consecutive fall - amid signs of a quick rebound in New Zealand production.

The global dairy trade Trade Weighted Index (GDT-TWI) fell 5.3% compared to the previous sale. The average winning price fell to US$4443 a tonne from US$4549 a tonne.

Whole milk powder, the biggest product by volume, fell 7.1% to US$4643 a tonne, the lowest since the March 5 auction.

The total volume of dairy products sold at the latest auction rose to 24,252 tonnes, the highest since the February 19 auction. The volume shrank to a droughtaffected 13,912 tonnes in the early April sale.

Dairy commentators aren’t surprised at the fall. Westpac economist Nathan Penny said the fall was in line with

expectations.

In particular, the increasing volumes on offer, most of which now relate to the new season, drove the price fall, and a strong production rebound in New Zealand will cause prices to ease further, he said.

Mr Penny said Fonterra has been the preferred supplier in the fast growing Chinese milk powder market.

“We think, as a consequence, the impact of drought on New Zealand production has been the primary factor behind the GlobalDairyTrade price spike.

This story is now largely playing out in line with the dynamics we described.”

In the same way as drought in NZ pushed prices skyward, Mr Penny said increasing local production next season would dampen prices by more than Fonterra is anticipating at this stage.

Fonterra has announced a farmgate milk price of $7kg/MS (the equivalent of AU$5.80) for the 2013-14 season – $1.20 more than last season.

National milk production declines Australian milk production is expected to grow to between 9.4 and 9.6 billion litres, according to Dairy Australia’s Situation & Outlook report released last month.

The projection was made based on surveyed herd growth intentions, cow condition and assuming normal seasonal conditions provide an offset to limited fodder reserves.

It is an increase on the expected production of 2012/13 of 9.35b litres, 1.4% down on the 2011/2012 output of 9.48b litres.

The S&O report said southern exporting regions should lead growth this season given positive global prices, whereas production in domestic supply regions was likely to be flat in response to market signals and uncertainty around supply contracts.

Dairy Australia has estimated production could range anywhere between 9.8-10.2b litres by 2015/16.

This is based on production intentions for three-year growth recorded in the 2013 farmer survey and assuming reasonable seasonal conditions and prices.

Australia was not the only dairy region to experience production challenges during the last 12 months.

Dairy Australia predicts Northern Hemisphere production in the lead up to the season peak to be flat, suggesting the next opportunity for increased global market supplies is the Southern Hemisphere spring.

EU milk output is forecast to expand by 0.4% in 2013, with slower growth and/or declines at the start of the year expected to be offset by a stronger production recovery during later months as climatic conditions revert to more favourable norms and farmgate margins improve.

In the United States, assuming climatic conditions moderate and average crop yields return, feed prices will ease over 2013, lowering costs and reducing financial pressure on farmers in the western states. USDA forecasts indicate potential US milk production growth of 0.7% compared to calendar 2012.

Current industry forecasts suggest New Zealand milk production will finish the season around 1% either

side of the 2011/12 season, with a strong early season and irrigation in the South Island moderating the full season effects of the recent drought.

Aggregate production in South America is expected to grow around 3% to just over 35b litres in 2013. A slow start is expected to give way to modest full year growth as feed prices decline and milk prices increase.

Growth forecasts for the two bigger producers are 2-3% for Argentina and 3-4% for Brazil.

Dairy Australia said the US and NZ are the most likely contributors in the short term to incremental growth in product volumes going onto the global market. Global prices are very attractive in comparison to internal US prices and seasonal conditions could support an early NZ supply recovery.

EU internal prices are constraining export appetite, Brazil continues to absorb most South American production growth and Australia has limited short-term export growth potential.

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We’ll meet target: DairyTas Rick Bayne

Tasmanian dairy production will

increase by 350 million litres a year – a massive 40% - within the next five years if an ambitious new industry growth project hits its target.

The Into Dairy – Sustainable Dairy Development program has been launched with a goal of creating 50 new Tasmanian dairy farms by 2018.

An additional 65,000 cows and $500 million infrastructure investment will be needed to make the target a reality.

If it succeeds, the plan will create more than 500 new dairying jobs and bring more than $500 million in investment to the state.

Tasmania currently has more than 440 dairy farms producing about 800 million litres of milk per year.

While aiming to attract investment in 50 new dairy farms, the project also seeks to encourage expansion of existing dairy operations.

Recently appointed project manager for DairyTAS, Steven Jarman, said Tasmanian processors had invested in additional capacity which created opportunities for the dairy industry to grow.

“We have increased processing capacity, opportunities in new areas because of irrigation water entitlements, an ideal climate and many existing success stories that will encourage more growth in dairy,” he said.

“We believe dairy is a good long-term investment.”

The project has secured $1 million funding over the next three years from the state’s four major dairy processing companies, service industries and the Tasmanian government, but has a total targeted budget of $1.5 million.

Mr Jarman described the $1 million funding as a good start but said ideally the project would reach its $1.5 million target. “We have a number of irons in the fire and are very hopeful of securing more funding over the next few months,” he said. “Our preference is to meet the full budget to do what is needed for the industry to grow.”

Mr Jarman said he was confident the Into Dairy project which was launched in April would succeed but added that it was too early to give specifics of how it would hit the mark.

“It is ambitious but we will be working very hard over the next three years to make it happen,” he said. “The next three years will be critical to put the plans in place but we are absolutely confident we can reach the target.”

Major activities will include encouraging new investment and attracting skilled migrant workers, assisting farm expansion and dairy conversions, and promoting dairy as a rewarding career.

Mr Jarman said the first programs were being developed and would be rolled out in the next few months.

A key priority will be to stimulate interest among existing dairy farmers to expand and other landowners to convert to dairy or to diversify and include dairy as part of a broader operation.

“We’ll be out from July talking to

Under the Into Dairy program, landowners will be targeted in a bid to get them to include dairy in their diversification planning.

landowners about the opportunities. In the overall context of things, dairy has a positive outlook but at the end of the day it has to be private sector driven.”

Mr Jarman said much of the early work would be in ‘influencing’ landowners to include dairy in their risk and diversification planning. “A dairying operation on part of a large property can be good for a regular cheque,” he said.

Mr Jarman said he was confident new dairying land could be found, especially with improved irrigation now available.

“Some other land uses are not providing the return for farmers that they might want. With the downturn in forestry, we believe many landholders will

be looking at alternatives.”

The project will target national and international funds looking at making agricultural investments.

It will also look at national and international recruitment campaigns to find skilled workers to join the state’s expanding dairy industry.

“We will be doing in-market activities identifying people with skills who may have a lack of opportunities and would benefit from moving to Tasmania,” Mr Jarman said.

Despite the ambitious projections, Mr Jarman admits the current season hasn’t given the campaign a positive start.

“The lower milk price plus a dry summer and early autumn in some areas has resulted in adverse conditions and presented challenges for many farmers to maintain late season production with production expected to drop by 4% in 2012/13. This has added to the challenging growth target for the next five years,” he said.

However, expansion has been generally trending up in recent years with average growth of about 3% each year over the past decade.

Mr Jarman has moved into the project manager’s role from a career with the Tasmanian Government in business, industry and economic development.

New co-op casts net for suppliers The Australian Dairy Farmers Cooperative (ADFC) – an offshoot of Dairy Farmers Milk Cooperative - held a meeting in Echuca earlier this month as it seeks to attract new suppliers.

About 30 farmers attended the meeting and the cooperative had previously spoken to a similar number of

potential suppliers.

The ADFC has been advertising and now plans to target suppliers in NSW, south-east Queensland and South Australia.

The Australian Dairy Farmers Cooperative will be a mirror of the Dairy Farmers Milk Company,

which is restricted to supplying milk to Lion.

There will be no restrictions on the ADFC, which aims to operate as a trader of milk to different companies.

All 605 DFMC members are members of the new co-op and will have

an opportunity to benefit from the new arrangement. It was formed to enable DFMC to seek commercial opportunities outside of its relationship with Lion. ADFC expect to be running by July 1 and are offering a flat payment system set at the start of the year.

ADFC has begun to develop its new brand, From Down the Road.

The cooperative directors are Cohuna farmer Scott Sieben, Ian Zandstra (NSW), James Geraughty and Duncan McInnes (Queensland), Peter Ness (South Australia) and independent director John Bastian.

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Dairy NewS AUSTRALIA june 2013

news // 7

High demand for fodder High demand and

successive years of low production has created a fodder supply shortage across Australia’s dairying regions creating headaches for farmers sourcing feed.

Dairy Australia’s Feedbase program manager, John Evans, said while stocks of high quality cereal hay are being held by exporters in WA and SA it will command a significant price premium if sold on the domestic market.

Alternative sources of fodder are available, in particular alternative fibre sources, but some coordination will be needed to secure these.

Farmers also needed

to be wary of the potential for chemical residue contamination of these alternatives, Dr Evans said.

“Cotton trash, rice straw and maize stubble from the Murrumbidgee Irrigation area and Sorghum stubble further north are potential fodder sources but are often seen as waste products and not usually baled or traded, so a clear message indicating demand for these fodders will be needed to ensure supply,” he said.

“The best approach to accessing these fodders is likely to be through contact with milk companies and traditional fodder suppliers who

can source product in a coordinated way.”

Dr Evans said as these crops were grown for grain and not fodder farmers needed to ensure they were free from chemical residues including insecticides, herbicides and fungicides used in crop growth. Farmers should check with their supplier about the crop history and potential residues, he said.

While these potential fodder sources are

low quality they are good sources of effective fibre which can be used to help balance diets based on lush pasture and grains/ concentrates.

“When considering alternative feed sources it is also important to ensure there is adequate effective or long fibre in the diet, this fibre promotes chewing and saliva production reducing the risk of a drop in rumen pH and

acidosis,” Dr Evans said.

Other alternative feeds such as palm kernel extract (PKE), grape marc or almond hulls are also useful for making a ration but they have low effective fibre levels.

The Victorian Farmers Federation has established a register to source fodder suppliers from across Victoria, the Riverina and south-east SA. United Dairyfarmers of Victoria president, Kerry

Callow, said those with spare fodder could lodge it on the register at www. vff.org.au “We’re not talking free fodder here. We’re simply urging farmers to register what they’ve got so that others can tap into those reserves,” Ms Callow said.

Ms Callow said fodder was urgently needed to fill a feed shortfall, following one of the driest nine month spells in the state’s history.

“That prolonged dry has forced farmers to feed out early, draining their on-farm reserves. Now they have little in reserve and are battling to find good quality feed going into winter. While we’ve had rain, the cold has slowed pasture growth.”

Farmers with fodder reserves they’re willing to sell can contact Jenna Tellefson on (03) 9207 5556 or email jtellefson@ vff.org.au

MANAGING MASTITIS isn’t black and white.

Max Roberts

Dairy Australia chairman retires Dairy Australia’s chair Max Roberts will retire in November after a decade leading the organisation.

Three board positions are now open for nominations to stand in this year’s election, to be held at the organisation’s AGM on November 29.

Mr Roberts’ retirement opens a board vacancy for a milk producer. In addition, two skills-based board positions will be available as directors Dr Alan Grant and Bruce Donnison complete their three-year terms. Dr Grant has indicated he will seek re-election at the forthcoming AGM. Mr Donnison has made the decision not to re-stand.

All levy payers have been sent a letter detailing the director election process.

Mr Roberts encouraged all interested dairy farmers to apply.

Mr Roberts was appointed to the Dairy Australia Board in July 2003, when the organisation was established as a single, industry-owned company through the merger of the Australian Dairy Corporation and the Dairy Research and Development Corporation. He took on the role of chair in 2006. He has also served on both the audit and risk management committee and human resources committee for Dairy Australia.

“It’s the end of a 30-year experience in industry leadership positions and I’ve enjoyed every moment. The time is now right to hand the reins over to new leadership,” he said.

We all know mastitis is a complex problem. There’s a lot to manage and each situation must be tailored for the right outcome. No matter what mastitis problem you’re facing, Zoetis has a range of treatment options to help you effectively control mastitis and get milk back into the vat faster. Next time your herd is a little off colour, talk to your vet about the Zoetis mastitis range.

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5/06/13 3:27 PM

Dairy News AUSTRALIA june 2013

8 // news

On the surface it looks like any other dairy farm in Australia rick bayne

Healthy cows graze on undulating paddocks, a river meanders through the land, crops grow well when the rain is right and the dairy is abuzz twice a day for the milking routine.

The difference with this farm is that it is run by prisoners.

Karnet is the only prison farm in Western Australia to have a dairy operation.

The farm’s 190 Holstein cows produce 25,000 litres of milk a week, which is processed and packed on site and delivered as the sole supplier to the state’s 13 prisons.

Apart from Wayne Owston, who manages the dairy farm for the Department of Corrective Services, the farm is manned by prisoners. Most of the dairy workers are doing time for drug offences.

But if things haven’t always gone right on the outside for these inmates, they are proving their worth behind the prison walls.

The farm now has the number one herd in Western Australia based on herd recording results from FarmWest.

“We had been in the top three and recently got the call to say we’re number one,” Mr Owston said. “The guys got a real kick out of it – they work

hard and are proud of what they achieve.”

The herd is now producing an average of 33 litres per day, a figure that has been steadily growing in recent years.

The latest success follows an award at the Perth Royal Show in 2012 for the best intermediate cow.

“I bought in a couple of stud cows after I started here in December 2011 and that was one of them, but she has calved down at the prison and is maintained here,” Mr Owston said. “The boys have got the ribbon up in their lunch room.”

The 404ha farm is also home to sheep, poultry and cropping operations, along with an abattoir and

Who:

Wayne Owston Where:

Serpentine What:

Karnet prison farm

the milk processing and packaging plants. About half the land is dedicated to dairy.

The minimum security prison, which can house up to 326 prisoners, is 78km south of Perth and based on good dairy land.

Manager Wayne Owston on the Karnet Prison farm, the only prison farm in WA with a dairy.

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Finding prison workers to take on the dairy challenge isn’t too difficult.

“It’s hard work and they only get paid something like $8 a day but they tend to like it and enjoy being out doing things,” Mr Owston said.

“The prisoners can decide where they want to work. If they want dairy we talk to them and decide if they’re suitable. We try not to pick violent offenders. Working with animals can be frustrating and we don’t want people getting angry with the cows.”

The dairy has a zero violence policy which is working well. “We don’t tolerate any swearing or aggression on the farm and generally we don’t have a problem. It’s not for everyone but some really take to it.”

A rotating six-day roster is used to give workers variety and experience in different jobs, from milking and herding cows to pasture maintenance and raising calves. The only job they don’t do is artificial insemination and occasional specialist work that requires service providers to come to the farm.

“The service providers will be a bit touchy when they first come out but after that they’re fine. The prisoners work well with them and by the end of the day they’re usually sitting around talking.”

The workers, who are aged from about 30 to mid-60s, undertake a TAFE Certificate in Milk Harvesting during their

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Karnet prison farm manager Wayne Owston.

Photo: Landmark Livestock Informer.

time on the farm.

Part of Mr Owston’s charter is to encourage the prison workers to pursue agricultural careers when they are released from prison, though he admits most are instead lured by the big money of mining or fall back into old crime habits.

The farm puts a high price on keeping a wellfed, strong and healthy herd.

“The cows are well looked after,” Mr Owston said. “Some of the guys really take to the cows.

We’ve got one, Bobby, who is uncullable. She’s basically a pet.”

The farm has a 12-aside swing-over dairy and has a Holstein herd. Its crops are mainly a mixture of oats, ryegrass and clover but over the past season they have experimented with turnips, fescue and summer sorghum.

The increase in milk production in recent years has come despite annual rainfall of 700-800mm, well down on the 1000mm average.

“We’ve made changes to production and tweaked the feed to change rations and give them different feed.

“Because we have the support of a government budget, we probably feed more than an average farm.

“We’ve also concentrated on better genetics and better AI and bought in good cows to strengthen the herd and build up a stud herd.”

At the tail end of the system, the farm is also doing well. Six prisoners work in the processing room where they pasteurise, homogenise and package the milk for distribution in bio-degradable packaging. It is sent to all corners of Western Australia.

“We also sell the milk for $1 a litre to the other prisons and we make it for much less than that, so it’s a good operation” Mr Owston said.

Originally from a dairy farm near Warragul in Victoria, Mr Owston was a dairy farm manager at Harvey in Western Australia before taking on the prison job.

His work sometimes takes him across the country on speaking assignments. He will be guest speaker at the south west Victoria Young Dairy Development Program’s `Milk It 4 More’ conference at Glenormiston on August 23.

Mr Owston and his wife Belinda also own cattle studs, Ranfurley Red Polls and Broselinda Park Holsteins and Jerseys and he is also a national cattle judge at royal shows.

While the prison farm escaped damage, Mr Owston’s leased property was almost wiped out by fire earlier this year.

“Eighty five per cent of the farm was destroyed but we managed to save the house and the whole herd. It’s slow but we’re getting it back up and running,” Mr Owston said.

Dairy NewS AUSTRALIA june 2013

news // 9

Minimum wage rises $15.80 a week mum wage will increase by $15.80 per week from July 1 – a figure higher than that requested by farm groups, but lower than the union demand of $30 per week.

In a submission to the Fair Work Commission in March, the National Farmers Federation called for a $9 per week increase, including the superannuation levy increase of $1.50.

NFF chief executive, Matt Linnegar, said although the figure was higher than its proposed $9 increase, the result is better for farm employers than the union alternative.

“In our submission we stressed to the commission the need to maintain balance between the needs of workers and the ability of small businesses, including farmers, to absorb higher wage costs at a time when they

are already battling tough drought conditions and an even tougher economic climate,” Mr Linnegar said.

The decision is lower than the increase seen in 2012, largely as a result of lower economic growth nationally, a tight Federal Budget and the pending rise in superannuation.

No favours for dairy in budget

retain our valuable labour base is crucial.”

The NFF highlighted the importance of balancing the needs of employees against the rising costs to agriculture employers.

“With farmers across Australia struggling to maintain their financial stability in the face of continued dry weather condi-

tions and other challenges, including fluctuating commodity prices and rising rural debt, the increase to the national minimum wage had the potential to create a further cost burden to the agriculture industry,” Mr Linnegar said.

“But today we have seen that the Fair Work

Commission is listening to our industry’s concerns. If Australian agriculture is to remain competitive internationally, we have to limit the already rising costs of doing business.

“A national minimum wage increase of $15.80 is not ideal, but is closer to reality than the excessive claims made by unions.”

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The Federal Government has missed the opportunity to boost confidence in the dairy industry with the 2013-14 budget, according to Australian Dairy Farmers president Noel Campbell.

“Cuts to quarantine and biosecurity funding and increased fees to access 457 visas undermine the Government’s own efforts to inspire confidence in an industry that has been hurt by weather extremes, low retail milk prices and a high Australian dollar,” Mr Campbell said.

Mr Campbell said raising the cost of a 457 visa application fee by almost 100% simply increased the cost of doing business.

“There is a well-known skills and labour shortage in regional Australia and often only skilled overseas workers are available to fill vacancies,” Mr Campbell said.

Further cuts to disease prevention and quarantine also put the industry at risk.

“Australia’s ability to swiftly respond to outbreaks of disease is compromised by a $4.1 million reduction in funding to Plant and Animal Health Australia, with cuts forecast to reach $8.1 million by June 2017,” he said.

“These cuts are in addition to a $34.6 million cut to quarantine and export services from last year.

“Australia’s ability to monitor, screen, detect and respond to threats to our biosecurity will be compromised by staff cuts of 224 people who are currently working on quarantine, and export services.”

Mr Campbell said the cut of 30 Austrade staff on top of a $2.6 million funding cut - undermined the Government’s rhetoric on securing Australian access to overseas markets, and was particularly troubling at a time when Australia was attempting to negotiate free trade agreements with key trading partners Japan, China and South Korea.

Mr Campbell said the Farm Finance Package to assist farmers experiencing extreme financial hardship and the $99.4 million drought assistance package were welcome.

However, he said it was disappointing to see much of this funding had been redirected from the Caring for our Country program, which provides funding support for farmers and land managers to engage in natural resource management.

The emphasis on regional road and rail infrastructure was also welcome, as is the extension of the Connecting People with Jobs program, which provides assistance to eligible job seekers who relocate for work, with higher rates of assistance for those choosing to relocate to rural and regional areas.

“We acknowledge the importance of providing a wage incentive that will encourage more Australians into paid work – and most importantly, into work in the agricultural sector,” Mr Linnegar said.

“Our sector is facing a long-term skilled labour shortage and so any move that helps us attract and

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Dairy News AUSTRALIA june 2013

10 // news

Farmer Power stage ‘go slow’ rick bayne

Disgruntled dairy farmers have

staged a ‘go slow’ rally near one of Australia’s tourist icons to protest against the slow response of governments to the industry’s financial problems.

The Farmer Power group organised the rally on May 23 which saw dozens of cars, utes, tractors and other machinery adorned with protest banners crawl along the Great Ocean Road near the 12 Apostles for more than two hours.

Farmer Power spokesman Chris Gleeson said the rally was in response to the lack of prompt government reaction to the crisis in agriculture and dairy in particular.

“They’re going slow so we thought we’d go at the same pace,” Mr Gleeson said.

“The 12 Apostles are an Australian icon on our back doorstep, so it was a logical place to make the point to overseas visitors and urban people who don’t understand what’s going on.”

Mr Gleeson said most motorists were not upset by the inconvenience and instead showed support for the farmers. The rally aimed to pressure government for more support and also pushed for more emphasis on marketing dairy domestically.

“The industry talks a lot about the expanding Asian market but 62% of our milk stays in Australia and we should be treating the domestic market with more respect,” Mr Gleeson said.

Farmer Power and its high profile protests are also claiming credit for influencing the Federal Government to introduce a farm assistance package.

“It was our influence that made the

government aware how much dairy is hurting. Now we need action on that support package so farmers can survive,” Mr Gleeson said.

“Dairy farmers are working long hours but not making a livelihood from it. There needs to be support now because even if the milk price goes up, more farms are going to be going into

receivership in the next three months.”

Mr Gleeson said the campaign was

Queensland power price hike reprieve Queensland farmers have been given a

one-year reprieve from a 20% electricity price rise recommended by the state’s Competition Authority.

In the State Budget, the LNP Government capped the increase for farmers and irrigators at 10% for the 2013-14 year.

But it still means the amount farmers pay for power will rise, and there’s no indication what will happen beyond the next financial year.

Power prices for all Queensland residents and businesses will soar after July with a 22.6% increase.

The Queensland Competition Authority (QCA) has blamed the spike mostly on rising network costs and state and federal government policy decisions. The QCA sets electricity price rises independently of the Queensland government.

It is the state’s biggest hike in electricity prices in the past five years.

The determination imposes price hikes of up to 20% for farmers on some tariffs, and follows price hikes of up to 200% over the last five years.

Queensland Dairyfarmers’ Organisation president, Brian Tess-

mann, said the price hike would compound challenges for the dairy industry.

The QDO has studied the impacts of rising electricity cost on the industry, using a cross-section of eight farms. The worstaffected of these could be looking at an extra annual electricity bill of greater than $14,000.

Mr Tessmann said the exact impacts per farmer varied greatly depending on how farmers ran their operation, but there was no denying that for dairy farms a very large component of energy use is fixed and could not be avoided.

“Dairy farmers understand well the statement from the QCA that to supply below the costs of production is not sustainable - as this is exactly is what is happening to farmers.”

Mr Tessmann said QDO would work with the State Government and the Queensland Farmers’ Federation to try and create some workable solutions to this vexed issue.

“With the determination now handed down, we now need government policy direction as to how industry can deal with this challenge.”

Farmer Power protestors at the 12 Apostles, and on the Great Ocean Road.

about informing governments and city people about the value of dairy and its importance to Australia.

“At least we’re putting the idea out there

and making people aware of the problems,” he said.

More high profile actions are being planned by Farmer Power.

Fonterra invests in Tasmania Fonterra Australia will invest a further $6.6 million to upgrade the cheese production system at its site in Wynyard, Tasmania.

Fonterra has partnered with the Federal Government to realise this investment, receiving a $659,000 grant through the Clean Technology Food and Foundries Investment Program.

The new system includes eight new, state-of-the-art cheese vats which will: improve efficiency in Wynyard’s cheese production; allow for a potential future increase in capacity; and, enable Fonterra to continue to deliver a great quality cheese product for domestic and international customers.

Fonterra Australia managing director, Judith Swales, said Australia was a “must-win” for Fonterra.

“We have been investing over the years to develop a platform for growth in Tasmania and this investment continues that trend.

“By improving the efficiency of our

factory and using less energy, we will boost the competitiveness of our highvalue domestic and export products that Wynyard manufactures, allowing us to maximise returns.”

In line with Fonterra’s commitment to sustainability, the project will leverage Wynyard’s existing cogeneration system thereby reducing carbon dioxide emissions from the essential milkwarming portion of the cheese making process by 90%.

These efficiency gains will result in significant energy cost savings, Swales said.

Works to install the system will begin this month.

Fonterra’s Wynyard manufacturing facility manufactures over 30,000 tonnes of bulk cheese each year for the domestic, export and foodservices markets, as well as whey protein concentrate. Fonterra collects milk from almost 260 dairy farmer suppliers in Tasmania.

Dairy NewS AUSTRALIA june 2013

news // 11

China sets green standard A MARKET is emerging in China for cleaner, greener food and if this could happen in China, it could happen anywhere, says Australian sustainability advisor Paul Gilding.

Because China faces both high pollution and population growth, it has “concertinaed” the whole issue of environmental action into a shorter time frame, Mr Gilding told a Fonterra Shareholders Council seminar.

“China is the bellwether of this issue. We see strong action by government, we see acute pollution in resources, much worse than we face here, and we see the market being an avenue for change,” says Mr Gilding.

“If we look at China, which we think of as being a dirty country… we are now seeing incredible growth in green industry [there].”

For instance, he said, it had beaten Germany to become the world’s biggest player in solar energy.

Mr Gliding advises businesses globally on environmental issues.

Mr Gilding said the New Zealand dairy industry is “defensive” on environmental issues as it saw itself as being attacked, but New Zealand farmers should get on board because it would be good for business. The market pressure for sustainability is now “unstoppable”.

“My argument is, it is good for you – you have natural advantages in sus-

tainability as an industry which means the stronger the market demand, the better off you will be,” he said. “Being pasture fed as the base of the industry is a plus. You’ve also got the co-op structure, a really under-utilised advantage.

The world is deeply cynical about corporate generally.” Another advantage was simply being from New Zealand. “You have to build and protect that reputation.”

Mr Gilding told the seminar that economists predict the world economy will quadruple by 2050 but he said resources are constrained today and will be four times as constrained by that time. He argued that if we did not change the way we do things, that growth will not be achieved.

He said he wasn’t talking about a crisis in human civilisation: “This is not a doom and gloom story – this story is just that we have to change.” And he supported the market economy as a good way of human beings driving themselves forward and innovating.

“But we have come to the end of a period – an extraordinary and positive period in human history – when we have had this incredible growth not just in population but in per capita wealth. Our economy wasn’t restricted by the availability or resources – in fact they got cheaper and cheaper; until about 10 years ago

there was an average 1.5% annual decrease in commodity prices across the world over 100 years.

“That party is over – we have come to a point where we’re not suddenly going to run out of resources but the resources are no longer freely available and not getting cheaper.”

Mr Gilding said everyone who has looked at the issue comes to the same conclusion includ-

ing economists, business people, the US military, Standards and Poor and big corporations such as Unilever, DuPont, Walmart and General Electric.

“We have to change the way we do things. In that change we win or lose – if we are ready for it we will win, and if we aren’t ready for it we won’t.

“This is an economic view, this is a business view about constraints

… this is not about polar bears or fluffy animals – this is about resources that feed the economy.”

Big businesses such as Unilever, DuPont and Walmart are now managing this issue as a core business problem, driving it back through the supply chain.

They see that governments have agreed action is needed on emissions – and want to get ahead of the game.

“If we don’t change the way we do things, we won’t grow. It is no longer if we grow too fast we will damage the environment – it is now an economic issue if we don’t change what we do, we simply won’t grow,” Mr Gilding said.

While a fan of technology, he does not think it can develop fast enough to allow for, for instance, growth to quadruple by 2050 within the

resource constraints we have. We have to find out how to grow within those resource constraints.

Mr Gilding said all the biggest science bodies and every government globally agreed the world is facing climate change. The arctic ice was melting at a rate 80 years earlier than predicted.

“It doesn’t mean they are all right … but it would be an incredible bet to say they are all wrong.”

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Dairy News AUSTRALIA june 2013

12 // world news

Dairy awareness builds in Asia Consumer research has

revealed 72% of people in Asia see dairy as an important part of a balanced diet. However, the research also shows less than half of the 9000 people surveyed in nine countries are eating dairy on a daily basis.

Fonterra group direc-

tor strategy, Maury Leyland, said results show growing awareness of the importance of dairy nutrition across the region.

The research results were released for the 13th Annual World Milk Day. “With a fast-growing and increasingly affluent population, people across Asia are becoming more

focused on their families receiving the right nutrition. Fonterra is well-positioned to help meet this demand,” said Ms Leyland.

“Our strategy outlines our focus on the Asian markets, where we see big potential for growth.

In New Zealand the average person consumes the equivalent of 245 litres

of milk each year, but in Asia this average is only 30 litres.”

Dairy demand across Asia has increased by 49% over the last 10 years.

Fonterra has teams in 11 markets across Asia educating food companies and consumers about the benefits of dairy, and looking at ways to make dairy

more accessible as part of daily diets and a core ingredient in commercial kitchens.

“Our high-calcium milk brand, Anlene, is helping hundreds of millions of people maintain good bone health with one billion serves sold in 2012; our Anmum brand reaches more than one million

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mothers-to-be in Asia every year, serving over 300 million glass of maternal nutrition; and every day Anchor provides top quality nutrition to people in 83 countries,” Ms Leyland said.

“We’re also making the most of opportunities in the fast-growing global foodservice industry. In 2013, our dairy ingredients will be used in four billion meals, 12 million cheesecakes, 1.6 billion burgers, 675 million pizzas, and 30 million smoothies.”

Of those surveyed in the research, Chinese and Thai consumers were the most aware of the benefits of dairy nutrition, with 84% saying they believed it was an important or very

important part of a balanced diet. Recognition was the lowest in Indonesia, Taiwan and Vietnam at just over 60% in each country.

Chinese consumers are eating the most dairy with over 60% of people eating at least one serving a day, followed by the Philippines where 53% of people enjoy dairy on a daily basis.

“Dairy is one of the world’s most nutritious foods – a single glass of milk provides 15 essential vitamins and nutrients, contains as much protein as an egg, as many carbohydrates as a quarter cup of rice and the same amount of calcium as 16 cups of spinach.”

TPP could resurrect Japan’s agri sector FONTERRA FUNDED research by

the New Zealand Asia Institute says Japan joining the Trans Pacific Partnership (TPP) could trigger a revitalisation of its agriculture sector.

The independent research was

by Professors Hugh Whittaker and Rob Scollay from The University of Auckland. They investigated the implications of the Sarah Paterson TPP on the Japanese agricultural sector, which is a proposed free trade agreement under negotiation between 12 countries including New Zealand.

Japan only joined earlier this year.

Professor Scollay said: “The Japanese agricultural sector faces a number of challenges. Many small-scale farms are uneconomic while the average age of Japanese farmers and the area of abandoned farmland are both increasing alarmingly.”

Meanwhile falling per capita consumption of Japanese farm products combined with large projected falls in Japan’s population underline the need to transform Japan’s agriculture into a more competitive sector with export potential.

“Our research found that participation in TPP could actually be the trigger needed to revitalise and transform Japan’s agriculture into a more vibrant and productive sector with long-term growth potential.”

Economic modelling indicated that increased exposure to competition through participation in the TPP, and increases in the productivity of Japanese agriculture through reform, could play complementary roles in sustaining agriculture and the food processing industries in Japan.

Fonterra’s director policy and advocacy, Sarah Paterson, said Fonterra funded the research because it wanted to ascertain from an independent source the potential impacts the TPP might have on the Japanese agriculture industry after previous opposition coming from the sector.

“Importantly, the study highlights that Japan’s agricultural sector could be better off as a result of TPP. We also believe that reducing trade barriers not only benefits their agricultural sector but will have flow-on effects to the end consumer as well, where they’ll be able to enjoy greater choice and more competitively priced food,” says Ms Paterson.

Dairy NewS AUSTRALIA june 2013

world news // 13

UK farmers reject milk supply controls UK DAIRY farmers are unhappy with calls for milk supply controls in the EU post-2015.

The National Farmers’ Union (NFU) wants CAP reform negotiators to reject proposals from the European Parliament that would see a return to supply controls in the dairy sector once the existing quota system expires in 2015.

The proposal, supported by the European Parliament as part of the ongoing CAP reform to maintain supply management in the dairy sector, requires the retention of the milk quota administrative framework, raising doubts about the EU commitment to the abolition of quotas in 2015.

The NFU says the system would, in the event of a severe crisis in the dairy market, grant aid to farmers who voluntarily cut production by at least 5%, compared with the same period the previous year, and would impose a levy on farmers who have increased their production.

NFU dairy board chairman Mansel Raymond says dairy farmers work with the knowledge that controls on how much milk they produce will end in 2015.

But there are some in Europe who would like the supply of milk within the EU to remain shackled through the back door, he adds.

“Dairy farmers face increasingly volatile market conditions and that’s why there is a need for the continuation of effective market safety nets within the CAP. “But the existing tools, such as intervention, public storage and the direct payments made to dairy farmers are sufficient and we strongly support their continuation.

“However, there should be no place in a modern market-orientated CAP for supply management measures that penalise farmers for increasing their production.

“Take a young farmer coming into the industry who has the means to invest and can seize the opportunities posed by the growing global demand for dairy products.

Under the plans from the Parliament, that

same young farmer could face crippling penalties purely because they grew their business and increased production, but was unfortunate enough to do so just as the global market was taking a downturn.

“It’s not right that they would see the milk price fall and receive penalties on top, when at the same time, farmers who had decreased their production would be granted an incentive payment. That’s simply not the right way to ensuring a modern market-orientated dairy industry within the EU.” Representatives of the European Parliament are negotiating the future CAP with the Agriculture Council and Commission through the trialogue process.

quotas too restrictive MILK QUOTAS have affected EU dairy export market share over the past 10 years, says Dairy Ireland.

EU milk production has remained largely static at less than 160 billion litres of milk produced annually. Yet, global milk production has increased by 130 billion litres since 2000, it says.

A slight 3% per capita decrease in dairy consumption has been noted within the EU since 2005.

On the flip side, emerging markets have seen a substantial growth in dairy product consumption, namely; South America (+26%), Africa (+22%), and Asia (+13%).

Tethered by milk quotas, the EU has seen its global dairy export market share reduce by a third since 2000. This loss of market share has been at the expense of significant gains, and market development by both New Zealand and the US. Dairy Ireland says it recognises that future exports will be impacted by even greater market globalisation, economies of scale, synergies, and partnerships.

Lightproof milk bottles win over NZ consumers acknowledges this. Fonterra looked at putting a see-through strip on the bottles’ sides. But even that much light would have affected the milk.

Fonterra identified light as the ‘enemy’ of milk – breaking down its fresh taste and natural goodness.

Light damage can’t be reversed; once started it does not stop impacting

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CONSUMER RESISTANCE to Fonterra’s new lightproof plastic milk bottles in New Zealand is waning, says the co-op.

Anchor milk went on sale in the bottles on April 8; sales have since risen 10% and store trials with 40,000 people are said to have shown 80% like the flavour of milk.

Fonterra Brands group marketing manager New Zealand Craig Irwin said he can understand the “initial noise”.

“Anything we do with our big brands gets a lot of scrutiny,” he said.

“That’s understandable but Kiwis are quickly getting on with buying Anchor milk in the new bottles. We’re happy with the way things are progressing.”

Mr Irwin rules out a return to plastic see-through bottles.

Consumers’ biggest Sales of Anchor milk in new lightproof bottle gripe is they cannot see how have jumped 10%. much milk is left. Mr Irwin

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the troducing

flavour.

Writing in the New Zealand Herald this month, Fonterra Brands New Zealand managing director Peter McClure said people ask him “why we solved a problem that didn’t exist”.

“The answer is easy. If you’ve ever opened the milk bottle and taken a sniff to decide whether it’s fresh or not, one of the things you’re checking for is light damage.

“You just didn’t know it. Light damage is what produces that ‘off’ smell, which happens when it interacts with vitamins A and B2 and breaks them down.

That process also degrades the nutrient content of your milk, not just the smell and taste.

“Once your milk makes it to the fridge, it is fairly well protected from milk’s two main enemies – heat and light. But the damage by light has been done long before your milk makes it home, and the darkness of your fridge cannot undo it.”

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Dairy News AUSTRALIA june 2013

14 // OPINION Ruminating

EDITORIAL

Farmers command respect

milking it...

Best of friends

The day Murray Goulburn signed a 10-year deal to supply Coles with milk for its house brands, Murray Goulburn managing director Gary Helou told journalists it would be “business as usual” with Woolworths, despite striking a deal with its fierce rival.

As part of the deal, Coles will stock the new Devondale range of fresh milk, and add Devondale cheese to its shelves for the first time in nine years.

Woolworths had already been stocking the Devondale range of cheese. In fact just last month in at least one Melbourne store, Woolworths was stocking its house brand cheeses right next to the Devondale brands – but at a discounted price.

Which product do you think cash-strapped consumers would grab?

As the old saying goes, you keep your friends close, and your enemies closer.

The little things

Murray Goulburn trumpeted its opening and projected closing prices in a press release early this month and the figures look good.

A $5.60 opening price (actually $5.47 with an option of a 13c pre-paid final step-up) and projected close of $5.80-$6kg/MS was more warmly received than last year’s opening price of $4.50, which shocked the industry.

However, trumpeting it as a 24% increase on last year’s poor opening price is unnecessary – let the record opening price speak for itself.

As one farmer said: “Higher than last year? So it bloody should be too.”

Shopping bags

It was quite the stoush between farmers and Coles earlier this month when Coles decided to stock Animal Australia merchandise.

The Animals Australia’s Make it Possible campaign, which also runs online, urges consumers to buy cage-free eggs, free range chicken and stallfree pork.

Farmers and farm groups were incensed that Coles was supporting a group that wants the world to turn vegan and openly campaigns against livestock and dairy production.

Farmers say Coles doesn’t listen – but it didn’t take long for the supermarket to stop stocking the bags after threats from its suppliers that it would send its stock elsewhere.

Animals Australia will now turn its attention to a television campaign so be prepared for images from worst case scenarios portrayed as everyday farming.

At least farmers now know their power when they band together. Great stuff.

Tribute to farmers

You don’t need to know much about footy to have heard of Australian football legend Kevin Sheedy, now coaching the Greater Western Sydney Giants.

He has been a champion of many causes during his 45 year involvement in the game and is now seeking to raise the profile of Aussie farmers.

In the lead-up to the Tribute to Farmers game played between the Giants and Geelong earlier this month, Sheedy was travelling all over the country for photo opportunities with farmers. And wherever Sheedy is, you know there’s a media contingent.

Sheedy was a driving force behind the annual ANZAC Day and Dreamtime at the G games which have helped raised awareness of Australia’s time at war and indigenous culture respectively.

Give this concept time, we have a feeling it could grow into a prominent showcase of Australia’s most important industry.

Now if only he could get those Giants a few more wins…

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

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

Advertising Manager Max Hyde max@hydemedia.com.au

Farmers may just have realised how much power they really hold.

United in anger, farmers across all sectors attacked Coles through the press and social media, demanding the supermarket chain stop selling merchandise for animal activist group, Animals Australia.

The Animals Australia’s Make it Possible campaign, which also runs online, urges consumers to buy cage-free eggs, free range chicken and stall-free pork.

It is the group that supplied footage from Egyptian abattoirs to the ABC’s 4 Corners, which led to the cancellation of the live export trade. (Mind you, Federal Agriculture Minister Joe Ludwig played a fair role in that ignominious episode.)

Animals Australia raises money to “expose” the livestock industry. So newly self-appointed friend of the farmer, Coles, upset farmers and farm lobby groups with its decision to sell its Make it Possible bags.

It was a clear mixed message from Coles – we support farmers and their farm practices; but we want to end livestock production suffering.

Dairy farmers are the last group of farmers that need to be told how Coles has mistreated its suppliers over the years – the $1/litre milk campaign the obvious case in point.

Coles has refused to buckle on that, but they went weak at the knees pretty quickly on the Animals Australia decision after a fierce farm backlash.

It didn’t take long for the supermarket to stop stocking the bags after threats from its suppliers that it would send its stock elsewhere.

It has spent a fortune portraying itself as the farmers’ friend through media campaigns and did not want bad publicity through the press and on social media.

Farmers attacked as a collective unit and it worked. Our opinion piece last month was written by Steve Jones, who used his experience in the oil and gas sector to reveal how the resource sector uses its power base to get what it wants.

Jones said the ag sector has the biggest stick of all in terms of power and influence over government policy – it provides 93% of all our food. History will tell us that anarchy is only an empty belly away, Jones said.

By working as one on this occasion against Animals Australia and Coles, farmers loomed as a genuine force. This strength needs to be harnessed more often to ensure the industry receives respect and a sustainable pathway for the future, with consumers and Government on side.

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

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

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Dairy NewS AUSTRALIA june 2013

opinion // 15

Lies, damn lies and the car industry Mick Keogh, from the Australian Farm Institute, is well known to Australian farmers.

Mick has his finger on the pulse of Australian agriculture. He knows more about our industry than anyone else I can name.

So I can understand his sense of outrage when the Australian Financial Review ran a prominent article, criticising the recent federal government announcement that it would offer limited concessional loans to some eligible farmers in trouble with drought and/or the slump in beef prices (due in part to the governmentimposed reduced live cattle exports).

According to Mick, the article contained false assertions and inaccuracies, some of which are probably held to be truths outside the pages of that august newspaper.

Mick therefore replied.

“If there were journalistic awards for the most error-ridden piece of writing ever about agriculture in a national newspaper, then this article would be a certain winner,” he wrote.

Don’t you love it when people start off a response with like that?

Mick took the scribe to task for his assertion that Agriculture Minister Joe Ludwig’s “subsidy of the rural sector is in keeping with Australia’s long-held tradition of propping up uneconomic rural operations. No other sector of the economy is given the latitude to run itself into the ground and then stick its hand out for government assistance.”

That’s the sort of statement that gets your finger twitching for the phone.

Mick replied: “The facts are that the OECD has monitored levels of national agricultural subsidies for the past 20 years, and Australian agriculture receives the LOWEST – repeat that LOWEST - level of

“Why is it so vital that Australia has to have a domestic car industry?”

taxpayer subsidy of any national agriculture sector globally.

“No other national agriculture sector on earth receives less (sic) taxpayer dollars in subsidies, so how (scribe) can assert that Australia has a longheld tradition of propping up uneconomic rural operations is an interesting question.

“In fact, recently announced changes to drought policy have reduced Australia’s meagre agricultural support measures even further than the OECD data indicates.”

Mick then took the paper to task over seeking to equate subsidies to agriculture with those to the Australian car industry. We all know that they pale into insignificance when compared to the car industry.

I have queried in this space before why it is so vital that Australia has to have a domestic car industry. Other countries, including New Zealand, survive very well, thank you, on imports; cars they could never produce without massive government subsidies, like we do in Australia.

The Productivity Commission shows that in 2010/11, its latest figures, the value of assistance measured as a percentage of primary industry output was 3.4%. Within that sector, the cropping industry received assistance equal to 0.6% of output this during a period when drought assistance was being provided to many farmers across the country.

The equivalent figure

for cars and parts was 8.5%; for textile clothing and footwear manufacturing 10.6%; for wood and paper products manufacturing 4.7%; and for metal products manufacturing 4.3%.

So stick that in your pipe and smoke it.

Mick said that if the Australian agriculture sector were a single corporate entity it would have grounds to sue the newspaper and its scribe for defamation.

It is all very well to be right, though – and our facts are incontrovertible. The real issue is that so many people have a very different perception of what the facts actually are – including many like the aforementioned scribe who, as an expert in the field, really ought to know better.

The challenge we face is in working out how to

ensure that those who make decisions affecting our lives – and, more importantly, the people who influence those who make such decisions – are actually starting from a factual basis rather than a set of questionable assumptions.

One has only to look across the range of current government budget estimates as compared to actual performances to see where that ends up.

To use a very simplistic analogy, would it matter at a macro level if there were no Australian-built cars?

Apart from those in the car industry, it is unlikely most of us would notice, let alone care. We would all notice – and care – if there was no Australian grown food. You can’t eat cars.

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

Letter to the Editor

Single voice needed Primary production in Australia is at a crossroads: price disparity at the farm gate as compared to consumer prices needs to change if agriculture is going to be viable in the long term!

Frustrated farmer actions: attempts to highlight industry, consumer awareness and government understanding about the prevailing plight of the dairy farmer – are overdue and well justified.

Farmers worldwide are consistently between a ‘rock and a hard place’ when it comes to farm gate produce prices. Selling produce at price levels traders and the ongoing processors are prepared to pay: whilst having to pay for inputs at RR price.

A great paradox – understanding farmers produce the fuel for human wellbeing – food!

Unprofitable farm production ultimately affects regional business, farm services viability, and bankers’ attitudes – eventually ending up with the tax payer having to fund increasing welfare issues: restricting investment and generational change in primary production management.

Businesses that appear to be exempt from those disturbing facts are the supermarkets.

To achieve a practical resolution to the farm gate price dilemma will not be easy. Primary producers need understanding (not spin) from the Federal government and a positive reaction from the processors.

The primary production industry needs a single intelligent united front to influence

politicians and bureaucracy – to dump the absurd ‘free market policy’ Australia singularly practices.

Trade balances between overseas exporters of subsidised food product into Australia needs to be closely monitored, enacting restraints for the preservation of Australian industry.

The government’s overseas trade department must be aware of the trade barriers confronting Australian exporters by countries who are able to easily access our import market.

Politicians need the balls to effectively espouse and fight to maintain the social and financial value of having strong primary production and regional industry. Industry requires the ACCC institute laws to control minority interests manipulating producer and consumers values.

Processors investing infrastructure funds to capitalise on developing markets will require increased volumes of feedstock: that will be not be available unless they pay a more equitable price.

If farm produce supply doesn’t increase – it is the processors who will be ‘between a rock and a hard place’.

To achieve a successful outcome, producers’ needs must be presented to government by a united professionally constructed single industry voice: comprising of practical, expertise proven professionals to confront and direct inefficient governments – typically driven by perception rather than fact.

Philip Seletto, Brighton

Dairy News AUSTRALIA june 2013

16 // agribusiness

DemoDAIRY reduces stocking rate and costs DemoDAIRY has outlined a plan to reduce stocking rates and cost of production to return the farm to profitability.

The plan was announced at a ‘Where From and Where To’ field day last month where board member Ian Teese discussed the progress made by DemoDAIRY since the farm was established in 1996 and farm consultant Paul Groves explained how the farm will sustainably improve profitability.

The farm has adopted a new management structure to direct it back to profitability.

Mr Groves said the keys to making the farm profitable were an appropriate stocking rate, controlling herd, shed and feed costs, and addressing overhead costs. Total overhead costs have increased from $2.23 to $3.02/kg of milk solids in the past six years but that is being reduced to $2.79 this year with a budget of $2.43 in 2013-14.

A key plank of reducing costs has seen the farm reduce its herd from about 300 to 240-245 cows on 120ha.

Mr Groves said the previous stocking rate of about 2.5 cows per hectare was producing more than 1200 kg MS/ ha but this came at a high cost.

“Because of the high cost of production, including herd, shed and feed costs, at 1200 kg MS/ha the farm started making losses,” he said.

“High production per hectare is associated with high costs and is a false economy. Boosting production to dilute overheads hasn’t worked. We need to reduce costs which we should be able to do after reducing cow numbers.

“We want to produce about 500 kg/ MS per cow or about 1000 per hectare to maximise profits and reduce costs.”

The farm is reducing its stocking rate to 2 cows/ha.

Mr Groves predicted the farm could achieve a break-even point this year with a milk price of $5.32/KG milk solids.

The farm’s herd, shed and feed costs in 2011-12 were $4.42/kgMS plus $3.02 overheads. “We’re not going to get $7 milk price so we’ve had to cut costs,” Mr Groves said. The farm aims to target herd and shed costs at $130 per cow.

The farm is also aiming to increase its level of home-grown feed from a low 30% to about 60% of the total feed.

The lower stocking rate will result in less imported feed with an aim of reducing feed costs from $3.24/kgMS to $1.84.

It is predicted that feed costs will be reduced by $265,000 but the loss of income from lower production will be only $150,000-$180,000.

The farm also expects to save $25,000 by using less urea and will reduce labour costs due to the lower stocking rates.

The field day attracted local farmers, sponsors, shareholders and sup-

DemoDairy board member Ian Teese and farm consultant Paul Groves.

porters keen to hear about future plans for DemoDAIRY. Mr Teese said the first priority of the board was to ensure the farm was commercially viable.

“We want to operate a credible commercially viable dairy farm using production systems similar to other Western District farms and then provide a facility for extension and

demonstration.”

Mr Teese said the farm’s problems were caused by going into a dry season with high stocking rates, a low proportion of home-grown feed, poor reproduction performance and high labour costs exacerbated by the management structure.

He said that once the farm was again profitable, the board would seek

to upgrade its milking facility. An important focus is to also engage with the farming community to find out what the industry wants from DemoDAIRY. Dairy Australia is funding the Farm Profitability Project which has enabled DemoDAIRY to employ a consultant (Paul Groves) to guide the farm operations to profitability.

Most banks pass on rate relief: NFF

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debt and drought announcement from the past month: the Farm Finance and National Drought Program Reform.

“There is still scant detail about how either program will roll out, and which farmers will be eligible, so in the interim, these rate cuts will hopefully ease the pressure on the sector.

“We urge the governments to release the full detail on these programs, and encourage the banks that are yet to pass on a rate cut to pass it on in full,” Mr Fraser said.

Overall, the May Agribusiness Loan

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“The 25 basis points rate cut, combined with a fall in the Australian dollar to below parity, is good news for Australian farmers and the agribusiness sector at a time when parts of the country are facing severe rainfall deficiencies, and farmers are grappling with challenges that are impacting on both their productivity and profitability,” Mr Fraser said.

“This rate relief couldn’t come at a better time for farmers, particularly as they wait for further detail from the state and federal governments on the implementation of the two major

•

making no change.

In overdrafts, five of the eight lenders – ANZ, BankSA, BankWest, NAB and Westpac – have each passed on the 0.25 rate cut to their agribusiness customers, with CommBank passing on 0.20.

Only Bendigo Bank and Suncorp failed to pass on any rate cut to their overdraft customers.

NFF president Duncan Fraser welcomed the news that the majority of lenders had passed the rate cut on in full, and urged those lenders yet to move their rates to follow suit.

•

Three weeks after the Reserve Bank of Australia (RBA) cut interest rates to a record low most financial lenders have passed the rate cut on to their agribusiness customers, the National Farmers’ Federation (NFF) Agribusiness Loan Monitor shows.

The May Monitor shows five of the seven term loans tracked – from ANZ, BankSA, BankWest, NAB and Suncorp – have each had their rates cut by the full 0.25 basis points.

CommBank meanwhile has passed on 0.20, with only Bendigo Bank is

VEL

OPME

NT

Monitor shows that since July 2012, the RBA has cut interest rates by a total of 0.75 basis points.

None of the financial lenders have passed the rate cuts on in full, with ANZ and NAB providing the biggest rate cuts on to their agribusiness customers – a total of 0.65 basis points from both lenders for both their term loans and overdrafts.

The NFF’s Loan Monitor is compiled each month by leading money market monitor Canstar and published by the NFF as a tool for all Australian farmers.

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Dairy NewS AUSTRALIA june 2013

agribusiness // 17 Dairy NewS aUSTraLia june, 2012

agribusiness // 17

Export demand remains strong falls Price rises, confidence The 2012/13 season has

With season 2011/12 only a few weeks from ending, were attention is now in Gippsland focused on 2012/13 milk prices as farmpositive in 2013 comers consider strategies for the coming year.

In some domestically-focused pared to 71% in 2012. regions, renegotiated contracts incorTurning attenporating lower prices and reduced ‘tier one’ are dairy undermining farmer tionaccess to the confidence and supply stability. For industry in Austramany farmers in export-oriented regions, a lower price outlook relative to lia’s north, chalthe current season not only adds to the challenges doingabated business, but seems lenges ofhave to contradict the positive medium term little over the past 12 outlook of Asia-driven dairy demand growth. months. Consequently, Dairy Australia’s indicative outlook confidence for southern farmhas gate remained milk prices – published the recent Dairy 2012: Sitlow in insouth-eastern QLD uation and Outlook report, is for an and northern NSW, with opening price range of $4.05-$4.40/kg MS a full year average range theandpercentage ofprice farmbetween $4.50 and $4.90/kg MS. The ers describing themselves report considers the wider market picture and summarises the many factors as being positive about at play; the key theme of the current situation being thatdecreasing of re-balancing in the the future dairy supply chain. from 45% to 31%. ConfiIn regions of Australia focused on producing drinking milk, manyfarmfarmers dence among dairy face a re-balancing market in the form ers in Western Australia of renegotiation of supply contracts and reduced access toexposure ‘tier one’ supply. with a strong to

incremental change in milk production (year-on-year)

cents/litre in March (AUD 41c/L) to 28

Euro cents/litre (AUD 36c/L) in April. first few months of 2013, 2012 the AUD averProfit margins are under pressure in the combined with the meaage was more than US, and in NZ Fonterra has announced final payout for the 2011/12 season Aus20% higher at US103 sured drop in the the has been cut from NZ$6.75-$6.85/kg MS gLobaL impacT tralian dollar during May cents. The elevated to NZ$6.45-$6.55/kg MS (AUD$4.96JohN DropperT $5.04).

Australian dollar has suggests there is some Effectively, global dairy markets are global impact upside potential to a reduced farmgate rebalancing.

Lower prices will both Shifts in private label contracts and proNorman Repacholi slow production growth and stimulate cessor rationalisation have seen milk $5.00/kgMS opening price payouts by more than demand, and as this occurs we will ulticompanies adjust their intake requiremately see a price recovery. Key factors mentsSMP, and pricing to meet changdepending on processor $1/kgMS (holding WMP andthechedto watch on the global scene will be the ing demands of a highly pressured retail carryover benefits, other factors constant). dar respectively) the Ausrateand at which milk production overseas marketplace. Lower contract prices and a lacktralian of alternative supplyaveraged opportunivalue-added salesslows lateininresponse to lower prices, the The sharp increase in dollar 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 the 2012/13 season. commodity prices the about US84capacity. cents.

During East maintain consistently higher eco- on consumer confidence, the path of is up around 4% on 2011 for the year tofor limited manufacturing Despite

proved a difficult one for many dairy farmers, as falling farmgate prices; higher input costs and unfavourable seasonal conditions combine to challenge the profitability of farm businesses. While many farmers realise the opportunities offered in growing these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value international dairy martic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. kets, variable short-term Demand for exported dairy prodita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced ucts remains a positive and will conpopulation providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. returns and profitability This situation has seen the scales tinue to grow with the middle class in tainty beyond the current adjustments. production is widely expected to finish have strained finances and In the seasons following the 2008 this season up 10% on last year - a huge tip in favour of buyers in dairy mar- large emerging markets such as China, financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing challenge confidence. modity price recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction export-oriented regions have seen solid ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Locally, Nowhere is that more 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 apparent than in the latest higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perhave subsequently been reduced in capita consumption. Whilst the dairy ern Hemisphere amongst those expand- ing South America. results from the Dairy Despite wider economic uncer- most exporting regions. The average market is currently a challenging place ing output as their margins increased.

Australia, National Dairy 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 balditions have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return.

Farmer Survey (NDFS). the fresh milk market also This year’s NDFS was dropped, albeit a smaller based on 1000 interviews seven points (to 47% poswith dairy farmers around itive) compared to 2012.

Australia from February 4 ASEAN-Australia-New austraLian DairY, This is in part attributto 27. Confidence among rice and wine exporters to Zealand FTA (AANZFTA). able to some unexpected Australian dairy farmers “Protectionist sentiMalaysia are the biggest ment over agricultural in a free trade to farmgate improvements dropped from 66% positive winners goods is rife and growagreement (FTA) signed pricestheover the season. on the future of the indus- between ing across the globe, so to provide portion pack two counaustraLian FooD in this context it is pleas(200-330ml) configuracompany Freedom Foods Ofmonth. all the factors drivtry to 43% in 2013, with this tries last ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a ing confidence among decline spread across all 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 farmers, milk pricedealt waswith some sensiherd sizes, age groups and licensing provide access to the most arrangement demand in Asia. tive agricultural issues for Australian liquid milk The plant, to be built in sustainable and economic cited by 46% of farmers, business phases. not effectively covered by exporters and allows southeast Australia, will be source of milk. Pactum has while input costs were Tasmania remains the AANZFTA,” says Fraser. strong links to the Austraaccess for higher value the first Australian greenSealing the deal: Malaysian trade minister Mustapha Mohamed “While under the retail fields expansion in UHT in lian dairy industry and will theproducts. next most influential industry’s most positive with Australian counterpart Craig Emerson after signing the deal.

AANZFTA agreement expand its arrangements It guarantees Aus10 years.

(21%), then themost Ausregion, but confidence has tralian of Australian agriwith dairy farmers for wineand exporters Freedom’s wholly but also through technical Despite the compleers through streamlining culture’s key interests supply of milk. The new the best tariff treatment owned subsidiary Pactum tralian dollar (at 17%).

The fallen dramatically with 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 level of debt was men50% of farmers in the state try. much remains to be done border’ restrictions.” dairy and rice are two sec- laration processes and It also allows open plant. Some of its products for Australian milk supply The FTA was signed on for Australia’s farmers to improved marketing – value-added, sustainable access arrangements from tors where incremental will be sold in Australia. tioned as a confidence positive compared to the May 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improveand export focused.

2023 for Australian rice The company says influencer by just 2% ofhave been negoti- commodities.

by Australia’s Trade and of the Asian region and very strong 91% positive ments Initially the plant will with all tariffs eliminated given Asian consumCompetiveness MinisThe Malaysian market beyond. ated under the Malaysian produce 250ml and 1L by 2026. ers’ rising incomes and respondents. result in 2012. Reasons for ter Craig Emerson and his He says the NFF will is worth about A$1 bilUHT packs from a process The National Farmers’ FTA. improving diets, demand Malaysian counterpart now throw its attention lion in Australia agricul“This trade deal was line capable of 100 milFederation says the tradethe outthere will grow for qualFortunately, the drop are a combinatowards ensuring agricul- Mustapa Mohamed. tural exports – including also particularly imporlion L. The processing and deal will improve interity dairy products from look for indicative southtion of the challenging pro- national Emerson says Australia ture remains front and being its fourth-largest tant for sectors such market access low-cost production bases packaging plant will emit centre in completed FTAs will be as well-positioned sugar export market and as dairy that have been less carbon, use less water, for Australian agricultural such as Australia, whose ern farmgate milk prices, duction conditions this in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disand be more energy-effigoods. milk is well regarded. based on current comseason, combined with as Malaysia’s closest tradChina and Indonesia as market. advantage in Malaysia cient than equivalent “After seven years of The new plant will ing partners in ASEAN, With an annual economic immediate priorities. compared with New ZeaUHT facilities in Austranegotiation, the NFFand is allow Pactum to meet modity price exchange many farmers feeling the “These are all markets and in some cases better. growth at about 5%, land which already has lia and SE Asia. Pactum under no illusion of how growing demand for rate expectations is for an brunt of higher input costs challenging The FTA will guarantee Malaysia forms an impor- with enormous growth expects site preparation to it has been to a completed FTA with UHT dairy milk, and add tariff-free entry for 97.6% opportunities and where tant part of the ‘Asian Malaysia in place.” begin in October 2012 and this FTA with to capacity for valueopening price about $5.00/ while expanding their busi- complete of current goods exports significant barriers to Century’ story and the The FTA also sigstart-up by mid-2013.

Malaysia,” NFF vice presiadded beverages at from Australia once it opportunity this presents trade in agriculture still nals some administrative Pactum makes UHT Duncan says.an averits Sydney factory. Pactum kgMS, upFraser from ness to fill new processing dent enters into force. This will for Australian agricultural exist, not only through benefits for Austraproducts for private label The FTA will fill a is expanding its capabiliage opening price around infrastructure. rise to 99% by 2017. tariffs that restrict trade producers, says Fraser. and proprietary customers. number of gaps within the lian agricultural exportties at the Sydney plant $4.30/kgMS in 2012. This At the other end of the implies a potential fullscale, dairy farmer confi016-017.indd 17 6/06/12 1:41 PM year average price around dence was lowest in SA, $5.50/kgMS, up from $4.90 with just 12% of surveyed to $5.10/kgMS in 2012/13. farmers feeling positive For producers in regions about the future. This more exposed to drinkregion has seen signifiing milk markets, disclocant variation in confisure restrictions around dence levels over the past supply contracts rule out three surveys, but a major a farmgate price prediccontributing factor to the drop in confidence are the tion. Much will depend on Researchers and producers agree – cow positioning when lying down. processor contracts with costs associated with the cows that are comfortable in their Cow comfort isn’t a single product retailers, balancing milk high average volume of environment produce more milk and or tool – it is a way of working with live healthier, longer lives. your cows 24/7. grain fed in South Australia supply and demand, and (2.17t per cow, per annum) potential upside from any At DeLaval, we have cow comfort Let us show you how cow comfort solutions to suit your herd’s every can improve your farm’s profitability. international operations compared to the national need. Our solutions include tip troughs at play. average of 1.59t per cow, Talk to your DeLaval dealer for clean water, rubber coverage to today, call 1800 817 199 or While international per year. improve walking, through to barn visit www.delaval.com.au commodity prices are tradWorking across Vicstalling and mattressing for optimum ing around historic highs, torian dairy farmers; 48% the major factor holdof Murray Dairy (northern Victorian and southern ing back further improvements at the farmgate NSW) farmers were posiis the Australian dollar. tive compared to 77% in Back in 2007 when com2012; 46% of western Vicmodity prices last peaked torian farmers were con(between US$4000 and fident compared to 63%, while 44% of dairy farmers US$5500/t for butter, TRACTA40692-DNA

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Dairy News AUSTRALIA june 2013

18 // breeding management

A genetic reality check The genetic merit of Leongatha

dairyfarmer, Chris Moscript’s herd is above the top 10% in the country but he describes the Genetic Progress Report as a useful reality check. While it mostly confirmed that breeding decisions were achieving the desired results, it also identified an area for improvement.

Registered Holsteins make up about half of the Moscript’s 300-cow herd with registered Jerseys and Jersey crosses making up the other half.

Mr Moscript and his wife Janine dairy in partnership with his mother, Marion, with help from son Callum and sisters Tania and Julie.

Breeding decisions are made jointly

by Chris and Callum who both have a keen interest in improving the genetic merit of the herd.

“Our focus is commercial. We aim to breed good quality animals that are able to produce in our conditions,” Chris said.

While attending Farmworld Field Day, Mr Moscript received a Jersey and a Holstein Genetic Progress Report for the herd.

The reports showed that the herd rated above the top 10% in Australia for Australian Profit Ranking (APR), with the Holsteins ranked number 21 out of Australian herd recorded herds and the Jerseys ranked number 6.

The Holsteins consistently performed well above the national average for overall type, longevity, fat and protein production. The Jerseys performed either at or above national average for overall type, longevity and protein.

“The report gave us a good picture of how our herd’s genetic merit is improving over time, and how it is tracking compared with the national averages. It is a good way to make sure we are heading in the right direction and to identify if anything is slipping.”

Mr Moscript believes the herd’s impressive genetic progress is due to four management practices over many years: a consistent breeding objective, artificial insemination (AI), progeny testing and the strategic use of flushing and embryo transfer (ET).

“My father started using AI when

Tania, Callum and Chris Moscript

it became available back in the 1950s.

Improving profitability was always the first priority with breeding decisions.

It is only in more recent years that we have paid more attention to type,” Mr Moscript said.

The herd is almost entirely joined to AI, the only exception being a portion of the maiden heifers which are joined to a Jersey bull (hence the crossbreds).

“We tend to use quite a few sires – about eight Holsteins and six Jerseys each year, so that spreads the risk and also gives us different options for different cows.

“We have also been long term users of progeny test bulls. We use about 80 straws a year and we’ve been very pleased with the results. We have had some great cows out of progeny test, especially in the past 10 years. It is a very affordable way to access the latest

Who:

Moscript family Where:

Leongatha What:

Genetic progress

genetics,” he said.

Over the years the Moscripts have used flushing and embryo transfer strategically to enhance the impact of their best cows on the herd’s genetics.

“We haven’t done any ET this year, due to the very wet winter followed by a non-existent spring and a very dry summer. But when we can, we will flush the top end of the herd and use empty cows as recipients.

“We generally keep most of the progeny from ET. It’s a way to fast track the genetic improvement of the herd. It means our exceptional cows can have more influence over the herd.”

The Genetic Progress Report shows trends since 2001. All of the Moscript’s herd’s traits have steadily improved, with the exception of fertility.

The Moscript’s herd has followed the national trend for fertility, with only a

very small improvement over time.

“The fertility graph on our Genetic Progress Report was a bit of a surprise.

Overall, we were reasonably happy with our herd’s fertility but I will be looking more closely at it now that I’ve seen the report. It’s an early warning about the genetic direction our herd is taking without realising it.”

Mr Moscript said he would focus most of his attention on improving fertility through management, as it is a low heritability trait and using genetics to improve fertility will take some years to have an impact.

“It is good to see more bulls available with high fertility ABVs. But I wouldn’t want to rely on genetics alone to improve fertility,” he said.

Anyone who has herd records can request a Genetic Progress Report through their herd test centre.

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Dairy NewS AUSTRALIA june 2013

breeding management // 19

Blanket AI keeps calving tight There is never a good time for a dairy farmer to be laid up on the couch with a serious injury.

Norm Vogels knows that all too well after tearing his Achilles tendon during the height of his calving season.

Two years ago the Peterborough district dairy farmer in southwest Victoria, now 38, was enticed into making a football comeback to help the local reserves team when short on numbers. The result was a leg broken in two places.

This year he decided he should get a bit fitter and help the local basketball team in Timboon. The result was a torn Achilles tendon that required surgery on May 24.

“It’s not great timing

but there’s nothing we can do about it,” Mr Vogels said. “There’s a lot worse off than me; I’ll come good and get back on my feet.”

In the meantime, he is overseeing a successful calving season from his vantage point on the couch as other family members help out.

Mr Vogels and his wife Tanya lease the 100ha farm from her parents.

They milk about 200 cows and have a 32ha block for young stock.

The usual starting date of June in the seasonal calving pattern has been brought forward to about May 10.

“I like to be calving when it’s a bit drier and warmer,” he said.

Along with consulting his vet to determine

Norm Vogels

if there are any underlying problems if cows aren’t getting pregnant, Mr Vogels has been using Bayer Cue-Mates for his management of noncycling cows. It is part of a program designed to condense the calving period.

“My theory is that it’s better to do them all at once,” he said. “It’s good to be flat out for a week or two feeding and teaching them to feed, and then kick back a bit.

“I want to keep the calving pattern tight and use a blanket A.I. system for all animals at the same time.”

The Cue-Mate progesterone releasing devices prevent development of follicles and ovulation.

Following removal of a Cue-Mate device, follicle development resumes.

Mature follicles in all the cows ovulate at a similar time, allowing for timed insemination, minimising

time and labour.

Mr Vogels is finding the Cue-Mates are giving him more pregnancies from cows that need hormonal stimulation to cycle.

“Last year we probably used Cue-Mates on 50 or 60 when they hadn’t shown signs of being in heat and at least 30 held.

We were pretty happy with that,” he said. “We’ve got about 100 calves within the first month. The earlier I get them in, the tighter I can keep my calving pattern.”

The farm is coping well despite a relatively dry season.

“We grow most of our hay and silage and have been lucky enough to have enough supplies to get through this year, topping them up with mainly pel-

lets,” Mr Vogels said.

“We try to feed them as well as we can. We’ve got a good, clean herd.”

Mr Vogel’s vet, Bill Morgan from The Vet Group in Timboon, said the farm had a planned process to its mating system.

“A schedule is determined well before mating is started and cattle are arranged into groups based on their calving date and whether or not they are cycling,” he said.

“This means that hormonal intervention can be tailored to the requirement of the groups and administered at the correct time.”

Dr Morgan said the Cue-Mate devices play an important role in stimulating the non-

cycling cattle to ovulate and allowing them to be joined.

“The program engages labour for specific tasks related to the mating regime. It means animals are treated at an appropriate time, with a treatment protocol that gets cattle in calf as early as is practical, minimising the number of late and empty cows.

“A planned and organised regime assists Norm to plan other aspects of farm management and lifestyle activities,” Dr Morgan added.

While Mr Vogels has his cow reproduction system well sorted, he thinks it’s time to adopt a new strategy about exercise.

“I think it’s time to stay away from competitive sport.”

Premium reds boast best genetic gain Graeme and Michele

Hamilton’s dairy herd has been recognised by the Australian Red Dairy Breed for having the greatest genetic gain, as measured by the improvement in their herd’s average APR, compared to all other Aussie red herds over the past 12 months.

The Hamiltons have been breeding red dairy cattle since 1964 and now milk 470 Aussie red cows, 10km south of Mt Gambier, SA. Continually improving the herd’s genetic potential through AI is some-

thing that is critical to their business.

“We use the APR system as an initial screen to avoid using unworthy bulls, but then I look more deeply at the proofs to find bulls which will improve milk flow and lift components, have solid mammary and feet ratings, whilst maintaining a healthy cow,” Mr Hamilton said.

“Selecting the bull team for a mating period is one of the jobs I always look forward to.

“I enjoy spending time analysing paper and online information to make these

Who:

Graeme and Michele Hamilton Where:

Mt Gambier What:

Genetic gain

choices.”

Mr Hamilton’s thorough selection process is seeing great results, and their herd now ranks in

the top 5 APR herds in the breed, with an average APR of 70.

In the 2011/2012 year the farm produced almost 4 million litres for Murray Goulburn.

Their farm has a typical soil profile of sedimentary clay and sandy topsoils, over a limestone base.

Milk production is based on grazed ryegrass pastures - 70ha of irrigated perennials and 70ha of dry land annuals - with 22ha of the latter containing lucerne for summer feed.

A further 194ha, mostly leased, is used to graze

Graeme Hamilton

replacements and produce oaten/annual ryegrass silage to supplement the milking cows’ diet.

They receive an average of 750mm rainfall annually.

The cows are calved in

two batches, during September and February, to suit the grass production pattern of the farm.

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Dairy News AUSTRALIA june 2013

20 // management

Milk production, profits grow under peer spotlight Sophie Bruns

When Leigh Verhey and Angela Turner put their dairy business and their management skills under the microscope as part of Murray Dairy’s Focus Farm Project in 2011, they had no idea where their decision would lead them.

Fast forward two years and the couple’s business has grown, their net worth has increased and Mr Verhey remains as passionate as ever about the industry and the future it holds.

Prior to 2011 the couple felt their most limiting factor to growth in the future was their dairy.

They had plans to increase the herd size and build a new dairy. Over the last two years they have focused their attention on pasture growth and increasing milk solids production per cow. The new dairy has been placed on the back burner.

“We decided to put our time and money into getting the pasture mix right and employing labor, instead of investing heavily in capital to build a new dairy,” Mr Verhey said.

“That will be our next big spend and we need to get that right, whether we build here on our home farm or purchase another place with an already established dairy who knows, but we certainly

won’t be rushing into that.”

Focusing on milk production, the couple has increased milk solids from 86,000kg to 134,000kg, an increase of 55% in two years. This can be attributed in some degree to increased herd numbers and land size, but Leigh has also spent a lot of time getting his pasture mix right.

“Our rotation times between grazings have changed to suit the different pasture varieties but we always have a paddock of feed for the cows to go on the farm somewhere.”

There have been successes and failures along the way but Mr Verhey has found plantain to be robust and with correct management, mediterranean (winter) and continental (summer) fescues sown with clover mixes have yielded well.

“The cows have four legs and a mouth and they will walk to the feed and eat it if I can grow it.

Home grown fodder is really the cheapest source of feed you can get. I don’t want to be handing a cheque over every month for hay- I want to keep things simple and grow as much pasture as I can.”

And while the pasture balance isn’t quite there yet, the goal of one-third lucerne, one-third annuals and one- third permanent pasture is not too far away. The cows are also fed between 4-5kg of pel-

Who:

Leigh Verhey and Angela Turner Where:

Koondrook What:

Business improvement

lets a day, year round.

The couple has increased equity from 37% to 47% and improved net wealth by 20%. They are expecting a 5.7% return on their asset this season, which they say is not too bad considering in a depressed milk price year.

Working closely with the accountant and farm consultant, combined with the availability of irrigation water and growing as much home grown fodder as possible, has really helped the bottom line, according to Mr Verhey.

“Our business is now heading in a totally different direction which is really a reflection of this project. Every decision we now make is well thought out while before, I would rush in and think about the consequences later.”

Last year the couple purchased an additional 30ha block that backed onto their farm, bringing their total landholding to 184ha. While it was a stretch financially at the

time, the investment has paid off, creating additional milking area this season.

Little work was required to bring the block into the pasture rotation and if next year is a good season the cows will be milked closer to home and the block will be used for hay or silage production.

The couple have come a long way from the 130 cows and the 56ha farm they initially purchased “When we bought our farm we had nothing - just a little old Hyundai car, but dairying builds wealth.

“We still don’t have any cash but one cow turns into two and so on. Even though we have gone through some pretty bad times we always seem to come out the other end.

“We work hard every day but we need to learn to work smart. There is no doubt times are tough and things get stressful but the dairy industry really is a great industry to be in, we just need help to feel our way through and if we learn from our mistakes we can certainly make better decisions in the future.”

Mr Verhey said his involvement in the Farm Focus group has proven invaluable.

“We have identified things to work on to improve our business and management skills and we are not afraid to get help anymore,” he said.

“The connections

we have made in different fields, building those relationships and having the ability to ask the right questions has without a doubt been one of the most rewarding parts of our involvement in this project.

“Having a mix of both young and old farmers to bounce ideas off and learn

from can’t be under estimated either, we have made financial improvements and that has been great but the relationships we have formed will really help us take our business forward.

“I have learnt so much from the senior farmers in our group they have been brilliant with me. Along

with the consultants, they have helped me to really think about the decisions I make. I have changed the way I spend my money and I have now realised you don’t have to have all the bells and whistles - I’d rather have a nice green paddock with a tidy fence than a new tractor sitting in the shed looking good.”

Leigh Verhey on his northern Victorian farm.

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Dairy NewS AUSTRALIA june 2013

management // 21

100% lucerne helps farm grow Rick Bayne

When Cam Brown started a dairy

farm near Shepparton three years ago, he wasn’t counting on a devastating flood followed by a prolonged period of drought-like conditions.

However, with a determined policy of sowing lucerne, 100% grazing on paddocks and smart use of water, Mr Brown is confident he can get through the tough times.

“The flood really knocked us for a six,” the former New Zealander admits.

“But we think there is huge potential in northern Victoria for milking cows if you have a good farming system, especially with access to good irrigation supplies.”

Mr Brown will open his farm and explain how he established it from scratch as part of a bus tour program for the Grassland Society of Southern Australia annual conference in July.

The conference on July 16-18 in Albury will follow the theme ‘learn, adopt and prosper’ and presents scientific research and practical information on improving grazing enterprises and pasture production.

Mr Brown moved with his family from New Zealand to Australia in 2007.

“New Zealand will always be home but the land prices drove us away,” he said. “The prices had gone through the roof in the last seven years we were there.”

The Browns came to Australia four times and looked around Mount Gambier, Warrnambool and Cwolac before entering into a partnership in

Who:

Cam Brown Where:

Shepparton What:

Starting from scratch

the Riverina.

“Northern Victoria appealed because the land prices were lower and there was good access to irrigation.”

They bought a farm at Katamatite on May 31, 2007 in a partnership.

In 2010 the Browns bought a 150ha property at Shepparton with a 60-bale rotary dairy and two houses but it had not been used for dairy farming for three years.

The Browns spent $70,000 renovating the houses and another $70,000 getting the dairy up to scratch, including new pumps and rubber wear.

“It had been shut down for three years, except for grazing some young stock,” Mr Brown said.

They also put a lot of emphasis on sowing new pastures, replacing previous annual grasses with lucerne.

“We sowed the whole farm with lucerne. There aren’t many around here 100% lucerne like we are,” Mr Brown said.

The farm uses high winter-active lucerne strains with a rating of 9-10.

“Lucerne is deep-rooted and uses less water. Previously the farm had annual pastures but we wanted something so we didn’t have to be out on the paddocks re-sowing every year.

“With lucerne we only have to replant every five years so we have a schedule of 25ha every year.

“It’s all part of low-cost farming.”

The farm has added fescue and Italian to the Lucerne mix to boost growth density. It produces close to 14 tonnes per hectare but aims for 18-20 tonnes.

Chook manure is used as the main fertiliser. “We don’t use urea but go for chook manure. I like to get organic matter back on the paddocks,” Mr Brown said. “We use a bit of liquid fertiliser to balance the chook manure and are investigating different products.”

After building the herd from zero to 600, the Browns have adopted a high stocking rate of five cows per hectare, although they are planning to reduce that to four and aim not to milk cows over the hot summer. “It’s hard to keep up the feed over summer,” Mr Brown said. The farm bought in about 1000 bales of hay and 600 tonne of grain last year but aims to produce as much home-grown feed as possible.

The Brown cows are smaller Jersey cross breed, selected for longevity and fertility.

They also plan to change the calving from spring to February. In its first year the farm didn’t require any additional water for sowing crops, an outcome Mr Brown describes as “magic”.

In the second year 278 megalitres were needed, this year with the prolonged dry spell, 1600 megalitres were required.

Shepparton farmer Cam Brown with his son, Jim.

“This season has been tougher, we’ve had eight dry months so had to irrigate a lot, but water supply is safe which adds to our security,” Mr Brown said. “It is a back-up over summer and a wonderful tool to have at our disposal.”

Soil tests on the farm show good results and new tests are planned for July.

However, the soil moisture profile remains fairly low and Mr Brown predicts it won’t pick up until August.

In November 2011 the Browns bought a second 144ha farm, 5km away, for grazing young stock, boosting their total herd to 1000.

However, this was just three months before being flooded.

“We had 377mm in four days. It killed

all the lucerne. We had 17 days with water over the home farm and we lost most of the feed.

“We probably lost $1 million from it.

We had to dry off the cows and probably lost $600,000 on milk alone.

“It was just a freak thing.”

However, it wasn’t enough to deter Mr Brown from farming in the area.

“You just put your head down and bum up and keep going. You can’t let it get to you.”

The farm had been achieving 440kg/ MS but that dropped to 380 after the floods.

Registration for the Grasslands conference is now open. Tel. 1300 137 550, email office@grasslands.org.au or visit www.grasslands.org.au

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Dairy News AUSTRALIA june 2013

22 // management

Best effluent management for hilly areas Barrie Bradshaw

Many dairy farms in

Australia are located in undulating to hilly areas.

To many this implies a dairy effluent system is too difficult and expensive to construct and implement. However, often

the opposite is true. I have come across numerous farms in hilly terrain where the management of dairy effluent leaves a lot to be desired.

Using the terrain to your advantage, with gravity or a combination of pumping and gravity, can greatly enhance dairy

effluent management and allow access to more of the farm on which to spread the valuable nutrients stored in dairy effluent.

I will try to show how the construction and management of a dairy effluent system in hilly country could be implemented.

At present the aver-

age dairy herd is about 320 cows milked on about 250ha. These cows will produce between 3 megalitres (ML) to 5ML of dairy effluent annually, depending on water used at the dairy. From testing of at least 1000 dairy farms in Victoria over the last 10 years, on average each ML

The outlet effluent pipe and concrete surround at the base of an effluent pond. In this case the 100mm main supports a travelling irrigator up to 800m from the pond.

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of effluent contains about 500kg of nitrogen (N) and 600kg of potassium (K).

For a herd producing 5ML of effluent annually this amounts to 2.5 tonne of N, 0.5 tonne of phosphorous (P) and 3 tonne of K. Known research stipulates that no more than 60kg per ha of both N and K should be applied to pasture at any one time. Using this knowledge and K as the limiting factor, then 5 ML of effluent should be spread over about 50ha.

For a 250ha farm the area required to spread the effluent is about 20% of the farm. The above information is generic and each dairy farm needs to be individually considered using parameter unique to that farm.

On a hilly farm this area may be quite daunting and given the cost of pipes, pumps and irrigators, the whole scenario gets pushed to the back burner indefinitely. This need not be the case as the design and location of the storage system may allow for gravity to be used effectively.

Most ponds have a set of design criteria, to meet EPA requirements.

The following example should help farmers with a challenging terrain to meet their environmental and legislative obligation in management of dairy effluent.

The farm in question is the average of 320 cows on 250ha producing 5ML of effluent annually. The dairy is located in a gully with the majority of the farm rising away from the dairy shed. The area where the effluent has traditionally been spread is reasonably flat within a 50m radius of the dairy shed encompassing an area of about 7ha.

The current effluent

system was designed in 1986 for about 130 cows and is a typical two-pond anaerobic/aerobic storage system with the first (anaerobic) pond being 1ML in size with a depth of 4m and the second (aerobic) pond being 0.5 ML with a depth of 1.2m. This farm has an irrigation system with a 7.5 KW effluent pump on the second pond with about 250m of 50mm diameter poly pipe as an outlet main.

With the constant increase of cows over the last 25 years the system is way past its use-by-date and needs a complete overhaul. Does that mean abandon the existing system and start again?

No, definitely not. The existing system is still a manageable structure that can be used.

The first pond will need to be totally cleaned out, using a combination of pumping, vacuum tanker and/or excavator to clean out the solids build-up.

The second pond can be incorporated into the first pond to meet the design requirements for the new system with a new second pond constructed away from the dairy to increase the available irrigation area and at an elevation that will accommodate pumping from the first pond using the existing effluent pump. Gravity irrigation from the new second pond will access areas of the farm previously unable to be irrigated with dairy effluent.

This system has been implemented on a number of farms in the past with the expectation that gravity will do the job. Unfortunately the system often fails due to the siphon effect not meeting the original expectations. to page 23

Dairy NewS AUSTRALIA june 2013

management // 23

Fertiliser changes save $50,000 Macarthur dairy

farmer Andrew Wortley estimates he has saved at least $50,000 over the past three years by changing his nutrient management practices.

“And that’s probably a pretty conservative figure,” Mr Wortley added. “We’ve probably wiped $30,000 off our costs this year and I think we’ll most likely extend the new regime even further next year.”

Mr Wortley has been part of the Reducing Soil Acidification through Nutrient Management project which has prompted him to undertake more soil tests, eliminate blanket fertiliser applications and become more prescriptive in his

use of fertiliser.

“We’ve made dramatic cutbacks on fertiliser on paddocks showing higher levels of phosphorus, potassium and sulphur and we use a lot more effluent and compost and measure where it is best to put it out,” he said.

“Time will tell if we have made the right decision but at this stage it’s looking good and we’re very confident.”

Andrew and his wife Anna have over the past five years built up the dairy herd to 600 on their 580ha property at Macarthur.

The Wortleys are one 184 dairy farmers to take part in the Reducing Soil Acidification through Nutrient Management

“Time will tell if we have made the right decision but at this stage it’s looking good and we’re very confident.” project, which is funded by the Australian Government’s Caring for our Country and managed by WestVic Dairy in partnership with

Glenelg Hopkins CMA and Corangamite CMA. Since completing the training and adopting a precision approach to nutrient monitoring and

management, the Wortley farm has recorded significant improvements in soil test results for phosphorous and potassium levels.

“It has been a fantastic program, one of the best I’ve ever been involved in,” he said.

Mr Wortley said soil tests led to several

improvements in the farm’s nutrient management strategies, resulting in significant cost savings.

“For example, we now put out nutrients from our effluent ponds where they are needed, in particular areas where soil tests show marginal or deficient levels of our

key nutrient. Recent soil tests where we have done multiple tests over monitor paddocks show a significant shift of nutrient from the back of paddocks towards the front so we are now focusing effluent spreading on to the backs of paddocks or on those recently cut for silage.”

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Andrew Wortley

from page 22

In this case the concept is right; however the design just missed the mark. In most cases the pumping main doubles as the siphon main.

What needs to happen is the pumping main is expelled into the pond over the bank, whereas the outlet main is constructed into the base of the pond about a metre from the base of the pond.

This enables the outlet main to have a head of water to create pressure to empty the pond to within a meter of the base of the pond.

Depending on the depth of the pond (recommended minimum of 4m) and the height of the pond in relation to the surrounding irrigation area, a travelling irrigator can be used to irrigate the effluent.

A number of dairy farmers in Gippsland have this type of effluent system in place and have a travelling irrigator spreading the effluent up to 800m from the pond.

The main irrigation line is 100mm uPVC plastic pipe dug into the ground.

The savings on power for irrigation is enormous and the first pond can be managed with pumping to the second pond using off-peak power. As mentioned on many occasions all effluent systems must be properly managed to get the improved benefits from the sizable investment.

• Barrie Bradshaw was a DPI dairy effluent officer based in Gippsland. He is available to help dairy farmers design and set up management systems for their individual effluent needs. Tel: 0427 858 137.

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Dairy News AUSTRALIA june 2013

24 // animal health

Additives boost calf growth, study shows Jean Margerison

andrew swallow

HAVING TROUBLE with heifers not performing as you’d like when they come into the herd? Then it might be worth looking at how they’re reared as calves, judging by research soon to be published by Massey University in New Zealand.

Heifer calves given a branded additive in their milk grew 10% faster, with less meal, and two years later produced more milk in their first lactation than replacements reared on a standard milk and meal regime.

Those findings, by Dr Jean Margerison and colleagues, will be published in the world’s highest-rated dairy publication, US Journal

of Dairy Science, later this year following a feeding trial with three mobs of 19 calves in 2008, and subsequent evaluation of their milking performance in 2010/11.

All mobs were fed 4-litres/day of whole milk, with ad-lib meal and straw, and given the probiotic X-Factor to 18 days.

From then on there was a control mob on milk and meal, a mob given Queen of Calves with its milk, and a third mob given just the carbohydrate component of Queen of Calves in its milk.

The Queen of Calves mix increased growth rate and cut time to reaching the weaning weight of 90kg by eight days. This saved 9% in milk fed, and produced calves with significantly greater rib girth

at 12 weeks. Daily hip width growth was 0.78 mm/day compared to 0.63 mm/day and they ate 16 % less pellet feed.

Two years later, in their first lactation, they produced 28kg/MS/head more than the control mob, a 12% increase.

Dr Margerison said the carbohydrate-only mob’s growth and weaning was “in between” the control and the Queen of Calves mobs, but when it came to the first lactation, the Queen of Calves milk production advantage over carbohydrate-only wasn’t sufficient to be statistically significant.

The carbohydrate which makes up threequarters of Queen of Calves was used on its own in the third mob in the trial. “The selection of

these plant carbohydrates is very important. They have to have a low amylose to amylo-pectin ratio as only the selection and combination of the correct ones works.”

The carbohydrate, as a non-fat energy source, improves the energy-toprotein ratio of the milk, helping the calf grow faster without the fat deposition associated with offering calves more whole milk. “The important thing is it’s lean growth,” says Dr Margerison.

The problem with feeding higher rates of milk to increase growth is twofold, she adds. Firstly, it makes for slower rumen development leading to a greater weaning check and slower growth rate post-weaning; secondly, it increases fat deposition in

the udder of the calf which cuts production when the heifer comes into milk.

The extra amino acids in Queen of Calves – methionine, lysine and threonine among them – promote lean growth, while the pre-biotic and probiotic components help gut health and allow the calf to extract more energy from the milk itself.

Queen of Calves manufacturer Bell-Booth says the peer-review process and imminent publication of the research in the prestigious journal is “the ultimate confirmation” of the calf nutrition programme’s value.

“This will send a strong message to vets who will appreciate the science behind the process, and to farm consultants

looking to maximise the on-farm production and profitability for their clients,” says chief executive Stephen BellBooth.

Dr Margerison says the target should be heifers coming into the herd at 85-90% of their mature weight. “You only need to look at the LIC data to see most animals aren’t getting anywhere near that.

It’s a major management issue.”

Small heifers struggle to compete for feed in the herd, are more likely to go lame, produce less milk as they still have to grow more, and often don’t get back in calf. The problems are exacerbated on feed pads, she notes.

“If you can guarantee a well grown calf at the rearing phase you’re off to a good start because it’s in that first year that most heifers fall behind [growth-rate targets].”

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Dry Off – A chance to reset the clock on cow health Bring your spring calvers back fresh and ready to go after calving – Drying Off provides you with the opportunity to ‘reset the clock’ when it comes to cow health.

Aims of dry cow therapy: • Treat existing infections.

• Prevent new infections, in the dry period and around calving.

• Lower the somatic cell count in the subsequent lactation.

Length of dry period: • Evidence has shown that a 60 day dry period can maximise milk production in subsequent lactations1– It is important that there is enough time for cells lost during the previous lactation to regenerate and ensure optimum milk production.

• A 60 day dry period helps cows recover from episodes of lameness and acidosis – Cows can generate an entirely new sole during this period and the rumen’s microbial population and the ruminal epithelium can fully recover from any incidents of ruminal acidosis.

A 60 day dry period, combined with a broad spectrum dry cow preparation that protects the udder for the whole of the dry period, can ultimately result in more milk and lower cell counts in the subsequent lactation, as well as cows that are entering lactation with healthy feet and a healthy gut.

What else needs to be done at Dry Off? • Vaccinations – Cattlevax® 7-in-1, Rotavirus and other calf scour vaccines.

• Parasite control – worm and lice treatments – Researchers2 have found that treatment with Ivermectin at Drying Off has resulted in a significant increase in milk production in the following lactation (74 litres more in the first 100 days of lactation) and has decreased the calving to conception interval, compared to untreated controls.

• Trace element supplementation – to ensure cows don’t become deficient whilst not receiving a lactating cow ration.

Seasonal and economic conditions have been tough in many Australian dairying regions this year, and many cows are being placed under nutritional stress. At Coopers®, we understand that dry off can be an expensive period, that’s why we encourage you to talk to your vets to ensure you are making the most of drying off and optimising milk production.

Call 1800 885 576 for more information.

1. Kuhn et al., 2007. J Dairy Sci. 90:2069-81 2. 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.

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Dairy NewS AUSTRALIA june 2013

animal health // 25

Tighten the calving pattern greg o’brien

Many dairy farms

have long, protracted calving and mating periods but not by choice.

A recent Dairy Australia study of the reproductive performance of Victorian dairy herds found the average six week in-calf rate was 50%.

One of the key influences of reproductive performance is calving well before the mating start date. So having a tight calving pattern is a big part of good reproductive performance.

The challenge is getting cows calving early in the first place.

From the Dairy Australia study, we know the bulk of the cows contributing to the six week incalf rate calved in the first six to nine weeks. Only 20% of the cows that calved in the three weeks before mating started contributed to the six week in-calf rate (ICR). Almost none of those cows that calved on or after mating started contributed to the six week ICR. Basically, cows not calving in the first six to nine weeks have a pretty low chance of getting back in calf in time to maintain a tight seasonal calving pattern.

Given the current spread of calving on most farms, there is a need

mates that have had two to intervene in order 10 month lactations. to achieve a significant We also know that improvement in calving many cows on two year spread and reproductive inter-calving intervals performance. will have lower milk Avoid late calving production and dry off One strategy to improve reproductive per- earlier than the desired two months before formance is to consider a calving. shortened mating period.

A second option is All the cows that get into mate the empty cows calf will be early-calvers about six months later and next season, but somehave a split calving patthing needs to be done with those cows not in calf tern. This suits some farmers but not others. If split at the end of the shortcalving doesn’t ened joining suit, these period.

A seasonal cows could be For some sold to farmfarms, those calving ers who have a cows that do herd will need for cows not get inhave about calving at this calf could 15 weeks time. The price comprise a of a sound significant from start milker is much proportion of of calving higher than a the herd. So to start of cull cow, plus cows not inyou have six calf need to be mating. months extra managed profmilk income itably.

The strategy is to retain compared to culling at the end of twelve months. these cows in the herd as A third option is to long as they are considkeep milking the carryered valuable to the busiover cows until they are ness.

Three options come to no longer required and sell them as cull cows. mind.

Of course early selling One is to delay the of some or all of the long mating for a year with lactation cows can also the view to join them be applied to the other to calve in a seasonal options if the season is pattern in the following year. Research into longer not favourable for keeping them. lactation suggests that Incorporating longer the top half of the herd on lactations into your two year lactations will system will impact on produce almost as much the feed plan due to more milk solids as their herd

A major challenge of tightening the calving pattern is getting cows calving early in the first place.

cows milking through, often in winter when paddocks can be wet or summer/autumn when pasture might be limiting.

Cash flow will change and annual milk income could drop slightly in the transition phase, increasing once the calving pattern is tightened.

How short a mating?

A seasonal calving herd will have about 15 weeks from start of calving to start of mating.

Given the dismal reproductive performanceof cows calving within three weeks prior to mating, shortening the mating period to 12 weeks would seem desirable if rapid

progress is to be made.

How many cows to extend?

Shortening the mating period to 12 weeks could initially result in 30% of cows being candidates for a longer lactation. So it might be a two or three year plan for some farms.

Given that most herds have a 20-25% heifer replacement rate each year, it is not necessary to keep many of the carryover cows. The number could be adjusted at any time as seasonal conditions and economics dictate.

The number of carry over cows will reduce significantly in subsequent

years as there will no longer be late-calvers once you use a short mating period.

Using a 12 week mating, the number of cows considered for longer lactations next year will drop from ~30 per cent to around 10-15% (given average reproduction performance). This is without improving other factors that are associated with in calf rate.

This number is much more manageable.

Just how much to shorten the calving-mating interval is an individual choice, but it is clear that many farms will remain in a poor repro-

duction cycle unless they do something to avoid late calving.

No single solution There is a concerted industry effort to improve reproductive performance. With no silver bullet in sight, improved reproductive performance will require a multi-facetted approach.

It is important to consider all aspects associated with good reproductive performance.

• Greg O’Brien is based with Victoria’s Department of Environment and Primary Industries at Ellinbank. The research quoted in this article is supported by DEPI and Dairy Australia.

D GOL arD nD Sta for al nim nt A Infa oducts Pr

Dairy News AUSTRALIA june 2013

26 // calf rearing

Fishers want more bulls with high fertility ABVs Like many Australian

dairy farmers Sam Graham would like to see more bulls on the market with reliable fertility Australian Breeding values (ABVs).

And he is prepared to play his part in making it a reality.

Sam and his wife Rachel dairy with his parents, Ron and Brenda, and

Sam’s brother, Caleb, at Numbaa, two hours south of Sydney.

The fertility of their 455 cow, year-round calving herd, ‘Beaulands’, is enviable, with 63% of the cows holding to their first joining and an intercalving interval of 55 weeks.

Mr Graham believes a key to the herd’s fertility is

the breed – Aussie Reds – and he is keen to consider fertility in his bull selection decisions “Our breeding goal is to breed profitable cows with good type, high production and low maintenance,” Mr Graham said.

“We usually select bulls from the top of the APR list in the Good Bulls

Guide. But when choosing individual bulls we look at daughter fertility, udders, mastitis and longevity.”

Like many Australian dairy farmers the Grahams have been frustrated by the limited number of bulls available with high fertility ABVs. This has partly been due to the limited amount

of fertility data that has been recorded and sent through to the Australian Dairy Herd Improvement Scheme (ADHIS) – particularly from daughters of younger bulls and empty cows that haven’t recalved.

Mr Graham believes the new multi-trait fertility ABV implemented

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Colostrum

Sam Graham

The Grahams’ data in the recent ABV release will be an improvement. It represented more than 10,000 records covering draws on data for several workability, mating and traits that are related to fertility including lactation fertility and calving ease.

Mr Williams said that length, mating and pregsome software manufacnancy data.

The industry has estab- turers have made improvements over the past few lished a project, Boosting months which mean that the fertility data chain, to data from on-farm records further improve fertility can now be uploaded to ABVs by capturing more a herd test centre in secdata from dairy herds. onds, which is Peter Wilthen automatiliams, who is one of the driv- “I am really cally transferred looking to ADHIS for ers of the projthe calculation ect, is finding forward of ABVs. ways to collect to seeing “Anyone who large amounts of more bulls uses Mistro, and valuable fertilthe latest verity data that are on the sions of Easy sitting on farms market Data, Dairy and currently with Data or Dairy ID not reaching fertility can now upload ADHIS where their data to it could be used ABVs.” their herd test for calculating centre,” Mr Wilthe daughter ferliams said. tility ABV. Mr Graham said he “The Graham’s are a hoped other dairy farmers typical case. Sam keeps meticulous records, dating would make the effort too.

“We go to the trouble back many years. And he thought his data was going to record the data to help us with our own herd manback to ADHIS through agement. It seems wasted either his herd recording centre or his on-farm soft- if it doesn’t go back to the industry to give us more ware system.” accurate breeding values.

When Mr Graham Checking that we have the heard that his HI centre latest software versions and software systems did and transferring our data not have automatic data transfer, he contacted Wil- is good for our business and good for the Aussie liams.

Red Breed,” Mr Graham “All it took was a few said. minutes on the phone to “I am really looking forPete and the press of a ward to seeing more bulls button on our farm software and five years of data on the market with fertility ABVs.” was sent off,” he said.

Dairy NewS AUSTRALIA june 2013

calf rearing // 27

Rearing calves top priority s0phie bruns

Leigh Verhey and Angela Turner were struggling to find the time to do the calf rearing job right on their Koondrook dairy farm. The couple decided to take the plunge and purchase three automatic DeLaval calf feeders but in a twist, decided to install them in a disused dairy on Angela’s parents (Doss and Nigel) property some 20 minutes away.

Leigh and Angela are responsible for making sure the new born calves receive colostrum in the first 24 hours but that is basically where their responsibilities end. They purchased a refractometer to ensure all colostrom fed is of high quality and they have noticed that the best seems to come from cows who are heading into their fourth or fifth lactation.

The day-old calves are then transported to Doss and Nigel and they take over from there.

“This system has given us an opportunity to make use of existing infrastructure. It has given Angela’s parents an income and taken the pressure off us, by freeing up our time to do other jobs on the farm,” Leigh said.

“This is our fourth batch of calves to go through and I think the biggest bene-

Calves are raised in a modified dairy.

Who:

Leigh Verhey and Angela Turner Where:

Koondrook What:

Calf rearing

fit has been we are now able to grow out our heifers to their full potential. They are not neglected and even though it is an automatic system, Doss keeps a very good eye on the calves.”

The automatic feeders have been placed undercover in the dairy and the old pit has been filled in. The yard is covered by a shade cloth structure which is taken down every season and stored away.

The calves can either choose to lounge on rice hulls in the yard or nibble on green feed or hay in the paddock next to the dairy.

The backing gate has been modified so it can be removed completely to assist with cleaning and at the end of every season the rice hulls are taken

away and replaced. The cement is hosed down twice a day and, because the yard slopes, any waste produced simply drains away.

Doss initially starts the calves off in a pen to make sure they are drinking well before they move across into the automatic system.

They start out on 3.5 litres of milk per day and by day 21 that figure has increased to 5 litres. They have access to pellets (Venavite number 1) through the automatic system and weaning starts either on day 60 or when they are consuming 1.5kg of pellets per day, for two consecutive days. By day 77 they are weaned off milk entirely and can only access pellets.

The feeder is programmed to deliver a maximum of 3kg of pellets a day.

While sick calves are no longer a major issue, if Doss notices the odd calf scouring she will give it some electrolytes. She uses a recipe she found on the internet which contains a teaspoon of bi-carb soda, a teaspoon of salt and two teaspoons of sugar mixed in 1.5-2 litres of warm water. The recipe is cheap, effective and she no longer purchases store bought treatments.

Every few days whole milk is delivered from the Koondrook farm which is kept refrigerated in Doss and Nigel’s old vat. Running the vat is probably the

The automatic feeders have been placed undercover in the old dairy, where the pit has been filled in.

Doss Verhey is responsible for rearing her son, Leigh’s, calves.

largest expense, aside from the unavoidable feed costs.

“The feeders have been a big learning curve. Getting the parameters right to spread the milk ration throughout the day has been challenging as has the

weaning function, but we have got all that pretty right now. Weaning is now simple, you don’t have to separate the calves and it is a pleasure to see happy, healthy and shiny calves grazing in the paddock,” Doss said.

The old dairy yard has been covered with rice hulls and a shade structure to protect the calves during bad weather.

LD RD GO DA lk N i s A ST r M cer

fo pla Re

Dairy News AUSTRALIA june 2013

28 // calf rearing

Colostrum alone does not guarantee success RoB Bonanno

A COLOSTRUM man-

agement protocol is important to ensure calves

receive enough antibodies but colostrum alone does not guarantee calf-rearing success.

Calf-rearing facilities and abilities vary widely

on farms of all sizes, and in my experience, many of the calf-rearing facilities I see are less than ideal while some are grossly inadequate.

I have seen some outstanding results in poor facilities and some poor results in outstanding facilities, so clearly the human factor has an

enormous impact on the success or failure of a calfrearing enterprise.

There is a lot of science to rearing calves, including understanding the nutri-

There is an art to rearing calves.

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tional requirements, air quality and disease processes, but there is also an art to rearing calves.

The art is the intangible “sixth sense” that a compassionate calf rearer has.

It is the ability to detect a calf that is offcolour before it “crashes and burns” and taking the extra care to ensure that calves are always clean, dry and well fed.

I think that the “care factor” is one of, if not the most important factor in rearing success.

Ensuring adequate nutrient intake is another critical factor.

It is my belief that severely-restricting milk intake especially in the first three weeks of life in an attempt to drive early concentrate intake is actually counterproductive and malnutrition is a common cause of immune compromise and subsequently disease.

There is an increasing body of evidence to support the argument that really young calves cannot ingest (or digest) enough concentrate at one to two weeks of age to supply their critical energy needs if they are on a severely restricted milk intake.

Dairy vets are constantly called out to “sort out” a calf disease outbreak.

Here is the difficult truth: No drug that I can prescribe will overcome poor hygiene, malnutrition and poor air quality or cold, wet calves living in squalid Third World conditions.

By using on-farm

diagnostic tests like the AxCss-4 kits, rapid diagnosis of Rotavirus, Coronavirus, E coli and Cryptosporidium is now easy.

Early intervention to collect diagnostic samples from scouring calves and necropsy (post mortem) examination of calves which die provide valuable feedback to help us to identify the best prevention and treatment strategies. Far too often, calf disease is treated in an almost random manner with little in the way of diagnosis or record keeping.

This increases the risk of violative antibiotic residues, failure to recognise the true incidence of calf disease and treatment failure, which is common when inappropriate treatment is given.

Accurately diagnosing the problem allows us to identify where the system has failed and where to target prevention and treatment strategies.

Your dairy vet is the best person to advise you on vaccination and calf biosecurity issues to control diseases like Johnes Disease and pestivirus.

The professional vet is best qualified to provide unbiased scientifically verifiable advice on calf rearing.

So with calving season fast approaching, call your vet now to book a visit and get some written protocols in place.

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

Dairy NewS AUSTRALIA june 2013

calf rearing // 29

Helping hand for new heifers NEW England district dairy farmer

Rob Cooper of Buena Vista, Manilla, situated north-west of Tamworth in NSW, knows only too well the benefits of rearing healthy replacement heifer calves for his 800-head dairy operation.

Mr Cooper rears some 500 Holstein Friesian replacement heifer calves annually in two batches.

“We calve 400 cows in March and April, and the same number in August and September, which gives us a split calving pattern with approximately 200 to 250 Holstein heifer and beef cross calves in each batch to rear,” Mr Cooper said.

And he also believes the secret to rearing healthy calves is heavily based on two products from the ProviCo range, the ProfeLAC Gold Premium Calf Milk Replacer + Bovatec used in conjunction with BioCalf Prebiotic Food.

“We have been using ProviLac Gold Premium Calf Milk Replacer for more

than four years now and couldn’t be happier with the growth rate of our calves.

“The beauty of this product is the calves grow very well and we don’t experience the health issues and infection that we once experienced when using other forms of milk replacer,” he said.

“The other important aspect that is critical to calf rearing is the mixing of the milk powder, and ProfeLAC Gold mixes very well.

“This calf milk replacer is blended from full cream dairy ingredients, and is fortified with essential vitamins including the B group, and trace minerals for optimum calf nutrition.”

ProfeLAC Gold also contains two additives to improve body weight gain and calf health and that is Bovatec, a broad spectrum anticoccidial which is added for improved feed efficiency and increased rate of weight gain and for the control and prevention of coccidial infections frequently associated

with weaning plus high-doses of ProfeSTART Pro-Biotic to aid digestion.

Mr Cooper also relies on ProviCo’s BioCalf Prebiotic Food, which he has been using in conjunction with ProfeLAC Gold since it was introduced to the market.

Prebiotics stimulate the growth and activity of beneficial bacteria in the calf’s digestive tract and maintain micro flora balance and keeps the gut healthy.

“This benefits the calf by aiding intestinal microbial balance, the calves’ first line of defence against disease, and this is something we are mindful of.”

Mr Cooper said he also relies on “university trials at Massey in New Zealand which demonstrate that feeding calves BioCalf Prebiotic Food, can increase their body weight by 23%.”

Mr Cooper said the calves are weaned when they weigh 100kg which is usually at the age of eight to nine weeks, and placed on pasture supplemented with pellets.

Rob Cooper

Buena Vista consists of 1300ha of which there is 240ha of irrigated country sown to rye grass, fescue, prairie grass and kikuyu. Overall the farm pro-

duces about 7.5million litres of milk selling to National Foods through the Dairy Farmers Milk Cooperative.

• This article was supplied by Provico.

Self-cleaning mobile feeder arrives STALLION PLASTICS’ new feeder

range is a world first, the company says.

The mobile tanker feeder (MTF) is the only self-cleaning mobile feeder on the market, it says.

“The innovative new product offers all the advantages of Stallion Plastic’s focus on leading-edge technology and practice, and its long heritage of developing easy-to-use, fit-for-purpose products.”

The groundbreaking MTF feeders

incorporate a range of features that save hours of valuable time and backbreaking work in the field. The multi-use MTF can be used to mix milk powder, milk replacement products or colostrum.

Available in 50, 60 and 80 teat unit options, the pump-driven MTF ensures quick and efficient feeding of calves.

The new easy-clean manifold design ensures milk stays clean, keeping it free from dirt and other contaminants, the

company says.

“With a carrying capacity of up to 800 litres, the MTF is ideal for use in the pen or the paddock and its retractable draw bar ensures both hassle-free transport and easy storage.

“Supplied with a nozzle and hose attachment, the MTF makes mixing and distributing liquid feed into separate troughs and fence hung feeders fast and

Stallion Plastic’s new mobile tanker feeder.

trouble-free.”

The feeder features Stallion Plastics latest innovation, the ‘click-and-clean’

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self-washing system which does away with time consuming manual cleaning.

“Simply quarter fill the tank with water, switch on the pump and the feeder self cleans – in just three minutes. No fuss, no effort.”

Tel. (03) 9459 4533

Dairy News AUSTRALIA june 2013

30 // calf rearing

Protect against parasites Achieving target weights in dairy heifers is a fundamental challenge for every dairy operation. The autumn break is a key period for parasite management in dairy cattle.

At this time of year, producers will start to see rising parasite challenge from Ostertagia, the most pathogenic worm species affecting cattle growth.

To achieve optimal target weights, controlling this parasite is critical in dairy heifer.

Research conducted by Virbac Animal Health on Meat & Livestock Australia producer demonstration sites has consistently shown that better parasite management in young animals with Cydectin Long Acting Injection

for Cattle improves the profit drivers of increased production per hectare and improved margins.

In dairy operations, the link between heifer weight, fertility and subsequent milk yield is well documented. Heavier heifers are more likely to get pregnant earlier, calve earlier and get in-calf again earlier than light heifers.

Not only do heavier heifers have greater reproductive performance, but they provide greater returns with increased milk production. For every kilogram in additional weight at calving, an extra 5-8L of milk is produced during the first lactation.

Heifers calving below target levels can also have effects lasting multi-

ple years. For example, a heifer calving 50kg below target weight could produce 1050L of milk less over three years than if she calved at her target weight.

While management of feed is most critical to reaching these weight targets, parasite management remains essential.

Cydectin Long Acting Injection can be used up to 80 days prior to calving in dairy herds and yet provide at least 112 days control against Ostertagia, the longest lasting protection available in Australia.

And considering that cattle struggle to develop immunity to Ostertagia up to 24 months of age, management of

worms is critical in heifers.

During an MLA producer trial conducted on the Central Tablelands of NSW, cattle treated with a single dose of Cydectin Long Acting had an increased weight gain of 20kg between weaning and 18 months, compared to cattle treated with multiple mectin based pour on drenches.

The trial demonstrated not only the importance of worm control in young cattle to increase livestock production, but also that improved margins can be made achieved through appropriate drench selection at critical times.

Multiple Virbac trials across Australia have shown similar production

advantages in young cattle.

Some selected weight gains measured in productivity trials are presented below: ■■ Cydectin LA increased weight gain by 17.5kg in heifers over 145 days compared to an abamectin injection (Meeniyan, Victoria) ■■ Cydectin LA increased weight gain by 12.2kg in steers over 141 days compared to abamectin injection (Mortlake, Victoria) ■■ Cydectin LA increased weight gain by 15kg in heifers over 120 days compared to an ivermectin pour on (Albury, NSW) This article was supplied by Virbac Animal Health.

Turning waste milk to your advantage A new system using ultraviolet light to purify milk on-farm for young calves is now available in Australia.

Early nutrition of calves is crucial, with the first 60 days of life shaping their effectiveness when they join the milking herd.

Waste milk from ‘hospital’ or mastitis cows is often discarded, but Westfalia Surge says if treated properly to lower bacterial or pathogen levels, it can replace milk that calf-rearers would otherwise need to purchase.

The WestfaliaSurge UV Pure ultraviolet calf milk purifier is a modular unit built around stainless steel UV turbulators.

The UV lamp is inserted into a quartz tube allowing the light to penetrate the milk as it passes over the tube and into a separate calf milk vat.

A hot water circuit allows cold milk to be brought up to feeding temperature.

The flexible system is scalable depending on the size of the particular dairy operation. It is fully-automated and easy to use.

Some farmers pasteurise the waste milk they feed to their calves using a conventional heat method.

But the process of heating and holding the milk at 63ºC for 30 minutes and then cooling it to an acceptable feeding temperature can be both energy and time-consuming.

Westfalia Surge says heating the milk to pasteurise it can also degrade the nutritional value, and errors can result in milk that has a burnt flavour or still contains unacceptable levels of bacteria.

➤

A new development from GEA Farm Technologies means dairy farmers can now purify ‘hospital milk’ on-farm for their calves without loss of nutrients and proteins.

Managing director of GEA Farm Technologies Australia, Peter Maguire, said the ultraviolet light penetrates bacterial cells in the milk, destroying their DNA bonds, killing

the bacteria and eliminating their ability to reproduce and grow.

“This system kills the bacteria without affecting the nutrient value of the milk, and the immune fac-

tors and proteins remain unchanged,” Mr Maguire said.

“Vitamins A, B6, B12 and C remain intact and there is even an increase in Vitamin D. That doesn’t

happen with traditional heat pasteurisation.

“The milk is never heated above feeding temperature, which helps preserve the milk’s beneficial immunoglobulins.”

Mr Maguire said the UV Pure has been extensively tested at the Wisconsin Centre for Dairy Research and on dairy farms in the United States, with farmers reporting a decrease in problems such as clostridia, scours and mycoplasma, with the subsequent reduction in calf death losses.

“The farmers are saying that not only are their calves healthier, but they also have heavier weaning weights. And they are not spending money on milk replacer or electrolytes.

“This system suits all types of calf feeding methods, from the bucket through to calfeteria-type

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units, but it is a perfect adjunct to the WestfaliaSurge automatic calf feeder,” he said.

Mr Maguire said the ultraviolet purifying process does not neutralise antibiotics which may be present in the milk.

He said before farmers feed that milk to their calves, they should consult their veterinarian.

The WestfaliaSurge UV Pure is simple to use with minimal training required for operators.

It will start automatically at pre-set times and calculates the required process time for the amount of milk, reducing time and energy.

It incorporates a fully automatic ‘clean-in-place’ wash process after every batch with the correct wash solutions to ensure proper cleaning.

Tel: 1800 789 100

Dairy NewS AUSTRALIA june 2013

machinery & products // 31

Efficient slicer slashes work time by two hours working clothes chris dingle “This machine saves us two hours

per day easily in feeding out”, says Wayne Parsons, at his dairy, ‘Yuringa’, at Nirranda, near Peterborough in Victoria’s Western District.

The machine is the Keltec Bale Slice which allows the operator to pick up a wrapped round bale, slice it open with a row of hydraulic knives, remove the plastic wrap or net and then drop the fodder into his Jaylor mixer wagon, all without leaving the tractor cabin.

Mr Parsons grew up on the property which he now owns in partnership with his parents, John and Bev, and came to dairying straight from school. ‘Yuringa’ has 3.2km of impressive coastal frontage onto the Bay of Islands. He milks around 700 cows on a 44 unit DeLaval rotary and feeds the cows 4kg/cow/day in the bail.

The farm makes over 3000 silage bales each year, using a Claas round baler. Plus Mr Parsons buys in standing hay; cutting, raking and baling large square bales. All the fodder is for his own cows, he does not do any outside contracting.

Handling the silage bales has always been a cumbersome task so he discussed the situation with Hugh McEachern from Agrimac at Warrnambool, who told him about the Keltec bale slicer and suggested he have a look at a video clip on the internet.

“So I looked at the YouTube video, it looked right, and I told Hugh ‘Get me one!’ It was ordered in November and

delivered earlier this year.”

The Keltec Bale Slice is distributed in Australia by Gendore Tractors and Machinery at Tooradin in West Gippsland. Mounted on a front-end loader, it was designed and built in Ireland. The implement has two long clamps that grip the plastic, which allows for easy retrieval of the plastic or net wrap for disposal or recycling.

Gendore’s managing director, Derek Genoni, said the machine saves time for the operator who doesn’t have to get out of the tractor to distribute the bales.

The Keltic holds onto the plastic or net and the operator can dump it from the tractor.

The Bale Slice was named the best unpowered machine at Farm World Field Days in March in the awards held in conjunction with the Tractor and Machinery Association. The judges were very impressed with the time saving and operator safety aspects of the unit, along with the low purchase price.

It uses hydraulic sequencing to operate the plastic grip and requires only one double-acting spool valve to operate the grab, cut and removal. The silage plastic or netting does not fall below the level of the tines in the slice, so it is ideal for loading feed “It is 99.9% accurate in wagons, round feeders or catching the plastic. It is for use in feeding alleyways.

The design ensures the a massive time saver and bale does not fall on the does everything they said it plastic when split and forces would.” the plastic or net into the plastic grip at the top for a strong hold. they said it would.”

He employs three casuals for milkIt can also be used to split hay and straw bales and because of its wide grip the ing, and his operations manager, Chance bale slice will remove 90% of the twine Yeoman, looks after herd management and is the main operator of the silage from the bale while splitting it.

Mr Parsons said that so far he has slicer. “Chance absolutely thinks that sliced 500 to 600 bales; “It is 99.9% it is a great machine.”

All the gear for the farm comes from accurate in catching the plastic. It is a massive time saver and does everything the Agrimac dealership. They have four

Wayne Parsons with his Keltic Bale Slaice.

Who:

Wayne Parsons Where:

Keltec Bale Slice What:

Nirranda via Peterborough

Case tractors and the slicer is operated by a Case MXU115 – “Power requirement is not an issue. The slicer will stay on the tractor right through to harvest time,” said Mr Parsons.

He also has a normal silage grab for the large square bales.

“We need economical equipment to stay competitive in dairying. We do all our own machinery work, and get a contractor in for spraying only.”

Mr Parsons says that the way things are going now he won’t increase the herd past 700.

“Things will turn around in the industry, you have to be positive.”

Wayne Parsons now owns his property in partnership with his parents.

The machine picks up a wrapped round bale, slices it open, removes the wrap and drops it into a mixer wagon.

Dairy News AUSTRALIA june 2013

32 // machinery & products

Contractors spreading their business ADDING A spreader to their contracting business was a strategic decision for a Waikato, NZ, couple.

Kirk Simpson and Mary-Anne Murphy farm 205ha and lease another 30ha, growing maize and winter grazing on contract while running a contracting business.

They have taken a steady-as-she-goes approach to growing the contracting business and have grown as the work, and finances, have allowed.

The business was originally focused on cultivation work and the spreading work comple-

ments that nicely.

“We were looking to add a shoulder to our business,” said Mr Kirk.

“Working with a consultant, we crunched the numbers on the spreader and decided it would reduce down time across the business.”

He said with the

Kirk Simpson: “We combined the numbers on the spreader and decided it would reduce downtime across the business.”

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“Working with a consultant, we crunched the numbers on the spreader and decided it would reduce down time across the business.” spreading work, he and the driver he employs now have enough work in front of them to work constantly, and keep the tractors rolling.

After shopping around, he bought a Giltrap 5001 spreader and put it to work in early October 2012. At the time of writing he had covered 1305ha with it, spreading 1900 tonne – mostly lime, but also fertiliser, chicken manure, even a bit of dairy effluent solids.

They run two and a half tractors: two John Deeres of their own plus a lease tractor run during the spring peak. The John Deere 6930 Premium has been performance tuned, taking the power rating at the PTO from the standard 160-180hp up to 205hp by remapping the CPU. They also own an airseed drill, offset discs, a power harrow and rotatiller.

A trailed spreader rather than a truck spreader made the most sense for the business, allowing Mr Kirk to fully utilise the tractors he has already paid for. It has clocked up 900 hours since October with no

problems, and has easily paid for itself.

“We had originally calculated the return we needed based on only half the hours we’ve actually ended up doing, so we’re well ahead.”

The Giltrap 5001 was more expensive than some brands he considered, but it was well built and offered some features he was after: “I wanted the accuracy of hydraulic drive rather than ground drive.

The drive system used on the spreader is very similar to the one on our air seeder, which is very accurate.”

He also liked the 850mm wide belt, which he says offers a more consistent spread.

He has also had a reverse spin kit fitted, which has been ideal for spreading heavier material.

As planned, the 5001 has rounded out the contracting business. “We can now offer clients a start-to-finish job, which counts for something at the busier times of years as farmers don’t need to wait around for trucks to turn up.”

For Australian distribution, tel. (03) 9369 6548.

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

Dairy NewS AUSTRALIA june 2013

machinery & products // 33

Feeding hay and silage into troughs MCINTOSH BROS Engineering

has released a specially designed double bale feeder for feeding hay and silage bales into troughs.

The company has made its newversion single bale feeder for two years, and it launched a double bale feeder earlier this year. Both machines can feed out round and square bales.

A single bale feeder able to feed to troughs was released last August.

“Most hay and silage bales are fed in the paddocks where our machines are ideal but we have been getting enquires from an increasing number of farmers who have built feed pads and want a machine that can feed directly into troughs,” said McIntosh Bros engineering manager Brett McIntosh.

It has an extension arm that

extends 2050mm from the centre of the draw bar and will be hydraulically raised for transport and lowered for feeding.

The end of the arm will be 850mm from the ground so all material can be placed in the trough with some room for movement.

There is only one set of chains travelling under the bale in the cradle and out and over the extension. Roller chains are used with angle irons between with spikes welded to them. With steel trays under both sections wastage is minimal.

Three hydraulic outlets are needed for the chain drive, the lifting forks and the lift for the extension, but if only one or two outlets are available a diverter valve can be fitted.

Tel. 03 5623 4475

Total solutions for dairying GEA Farm Technologies

When the McGrath family at Orford built their new dairy they decided to get all their total milking solutions from one place.

The new double bale feeder.

WestfaliaSurge’s new DemaTron 70 milking control unit can reliably control two milking stalls with pulsator, operating unit and Metatron MB metering box.

Precise cluster removal and accurate milk yield measurement.

A powerful stand-alone unit that can also be used as the multifunctional core in a complete milking control system.

Vacuum on Demand Energy Saver saves up to 80% of energy use by only generating as much vacuum as you actually need at the time. Stable vacuum for better udder health, decreased vacuum pump noise, greater environment protection.

Suspended fertiliser spreader made easier TWO NEW models of the popular

suspended-fertiliser Tow and Fert have been on show at Fieldays.

Launched in late 2011, the mixing and spraying Tow and Fert has been a popular seller in Australia for Metalform.

They are extending that range with a 1200 litre 3PL model and 4000 litre trailed model made for tractors 90hp and higher.

Marketing manager Tim Henman says the Multi 1200 was developed to offer an affordable nimble sprayer. “It’s made for

every farmer wanting to apply fine particle fertiliser or mix and dissolve urea. No other spray unit on the market can do this except for models in our range.”

The pumping, mixing and spraying is powered by the hydraulics, eliminating the need for an external motor and Mr Henman said this makes it a lighter unit than the Multi 1000, even though it is able to contain 200 more litres of solution and weighs 350kg without the optional crane arm.

The solution is sprayed via a single nozzle which has a 14m spread and the 1200 can be used to cover 15ha before it needs refilling.

Scales and a hydraulic lifting arm are optional extras with the lifting arm capable of lifting 1 tonne.

While the 1200 was designed for small to medium-sized farming operations the Tow and Fert Multi 4000 is meant for large operations and contractors.

With a 24m spray width and a 4000 litre capacity the tandem axle trailed unit is able to spread fertiliser over 40-50ha before being refilled.

While the unit can weigh as much 10 tonnes when full, Henman says it weighs just 2.6 t empty.

Weight on the unit is kept down by using a PTO-driven mixing mecha-

nism. “A PTO system is used for the mixing mechanism and hydraulics is used for the spraying.”

A hydraulic lifting arm is available as an optional extra and the 4000 can be operated behind tractors with ratings of 120hp or more.

Mr Henman said the two new models have been developed to provide the unique mixing capabilities of the Tow and Fert system to a wider range of users.” We developed these units to continue our family of products in the Tow and Fert range and have something to suit every farmer.”

Tel. 1300 630 279

WestfaliaSurge TCool vats.

Ranging from 885 to 25,000 litres, these closed type milk cooling tanks meet the highest requirements, incorporating the latest cooling, rinsing, controlling and measuring technology.

GEA Milking & Cooling Call 1800 789 100 for the name of your nearest dealer Email info.auft@gea.com www.gea-farmtechnologies.com.au

GEA Farm Technologies The right choice

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Dairy News AUSTRALIA june 2013

34 // machinery & products

Case IH Farmall makes return One of the most recognised names in tractors, the Farmall, will re-enter the Australian market in 2013.

With a list of features normally reserved for larger tractors, the new, compact Farmall B and Farmall JX models will range from 23-110 horsepower.

John Dreves, case IH product manager for tractors, said the Farmall is the ideal small tractor, suited to small to mid-sized farming operations.

“The Farmall name is a customer favourite, well-known around the world for its versatility and performance.

“We’ve evolved the Farmall over the years to meet the varying needs of Australian producers and in 2013 we’re excited to introduce our new range offering increased engine capacity across many operating environments.

“The Farmall B Series tractors replace the Maxxfarm range of compact tractors. The 20B, 25B, 35B, 40B, 50B and 60B have all been redesigned

and will offer dependable power, fuel efficiency, comfort and promote more productivity from the tractor seat.”

Farmall B tractors feature three or four cylinder, fuel efficient engines, and mechanical self-levelling loaders are available. The tractors also suit a wide variety of attachments for many uses.

“The Farmall B moves effortlessly between operating sprayers and high powered tillers in horticulture operations, manoeuvring in orchards and plantations and handling a wide range of small farm tasks,” Mr Dreves said.

The Farmall JX series is also being launched this year, delivering unrivalled value for money in a neat package.

“The Farmall JX is the perfect combination of economy and productivity delivering a reliable and effective performance across a variety of tasks,” Mr Dreves said.

“If what you are looking for is a nofuss utility workhorse that is easy to handle, the Farmall JX is the tractor

for you.”

Six Farmall JX models are available – Farmall 70JX, 75JX, 80JX, 90JX, 100JX and 110JX – and all feature a newly designed cab for increased operator comfort.

“The hydraulic power shuttle, standard on the top four models, is perfect for loader work in livestock applications, offering smooth direction changes and increased productivity,” Mr Dreves said.

“The Farmall B and Farmall JX series tractors have been designed with versatility in mind.

“We understand that on any given day, producers are performing a variety of tasks and must be able to turn their hand to any situation – now we offer a range of tractors that do the same.”

“We’re excited to see the Farmall back on Australian soil – so talk to your local Case IH dealer about our new range of Farmall B and Farmall JX tractors.”

Visit www.caseih.com

The Farmall name is returning to Australia with Case IH announcing the arrival of the Farmall B and Farmall JX in March.

Automated pasture meter user friendly A NEW pasture meter by C-Dax is

automated, coming with a control console. It can be used on the company’s spreaders and sprayers.

It is notable for its computing power and the range of data held in the console, says C-Dax managing director Greig Shearer.

“This takes it from just a device that tells you pasture cover to a device that has integrated information connected to software. The technology is more user friendly and will enable more farmers to come into this technology because it’s easier to operate… and doesn’t demand they be completely computer literate.”

Using GPS the farmer is able to follow the same path around a paddock every time they take a measurement.

“When you enter a paddock, the previous trail comes up automatically

and you can follow this.”

Using the console, farmers are able to access a map of their farm from C-Dax SmartMaps and then draw in their paddocks which in the past was a major and costly exercise usually done by a consultant.

About 24% of dairy farmers measure pasture and Mr Shearer hopes to see this rise soon to 60%.

The new high tech console can be used on C-Dax spreaders and sprayers. Mr Shearer said farmers can set the application rate they wish to spread or spray at in the console and the unit will automatically control this using GPS.

If an area of the farm has been previously spread or sprayed in a given operation, the machine will automatically cut out when it passes over this spot.

Mr Shearer said the new technology will help dairy farmers comply with

Using GPS the farmer is able to follow the same path around a paddock.

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

new environmental rules being set by councils. He says whenever a spreading or spraying operation is

undertaken this is recorded and provides accurate traceability.

Tel. (02) 9627 9898

C-Dax managing director Greig Shearer (left) and Dr Robert Murray with the new pasture meter.

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

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Available in Tine only, Tine with Disc Coulter, or Single Disc.

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