Dairy News Australia March 2014

NSW courts Chinese investment PAGE 8

OUT OF AFRICA

Learning South Australian way PAGE 7

NEW AIR SEEDER Direct drill hits spot PAGE 31

MARCH 2014 ISSUE 45

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www.dairynewsaustralia.com.au

MILK GRAB Fonterra aims to increase supply PAGE 4

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NEWS // 3

Years before supply can meet demand ANDREW SWALLOW

Gippsland farmer Dave Barry uses chicory for flexibility on his Labertouche farm. PG.12

Dan and Krystyna McCaul turned to cheese making at the time of deregulation and have been well rewarded. PG.22

A NEW ZEALAND economist believes there is at least a “two or three year window” before global production catches up with demand sufficiently to bring prices down substantially.

ANZ rural economist Con Williams said most countries have responded to the high global markets with increased dairy production, with the notable exception of the US and China.

Supply elsewhere in the world is responding to the high prices, notably across the European Union where latest monthly production figures are 4.5% ahead of last year.

Cow retention has increased in the US too, suggesting producers there are responding to cheaper feed and higher milk prices, and Australian production is up for the first time in a while too.

However, until recently US farm-

gate prices hadn’t responded to the high global markets so the supply response there has been slow and they have weather problems of their own, adds Williams: drought in California and severe winter weather in Wisconsin, two of the main dairy areas.

That slow US response, and China’s production problems, makes him believe there’s at least a “two or three year window” before global production catches up with demand sufficiently to bring prices down substantially.

“It’s all about Chinese demand.

That’s driving everything.”

Behind that is a near 6% fall in China’s domestic production due to a 15% reduction in the size of its national dairy herd, partly because of foot and mouth disease, and partly because of more stringent quality demands placed on suppliers since the melamine scandal.

Mr Williams’ prediction was supported by the Australian Bureau of

Agricultural and Resource Economics and Sciences (ABARES) release of the March issue of agricultural commodities at its Outlook 2014 Conference in Canberra this month.

ABARES said world dairy prices and Australian farmgate milk prices are expected to remain favourable over the outlook period.

“The outlook for dairy is promising. Australian milk production and exports of dairy products are expected to rise over the outlook period,” manager, agricultural commodities,” Peter Collins said.

“The value of Australian exports of dairy products is forecast rise by 14% in 2014–15 to $3.4 billion, reflecting forecast higher world dairy product prices and an assumed depreciation of the Australian dollar.”

World indictor prices of a range of dairy products are forecast to increase in 2014–15: ■■ Whole milk powder and skim milk powder by 2% to average

US$5220 a tonne and US$4815 a tonne, respectively.

■■ Cheese and butter by around 3% and 2% to average US$4920 a tonne and US$4665 a tonne, respectively.

“It’s expected there will be continued strong demand for Australian dairy products from Asia, the Middle East and North Africa.

“In 2012-13, these markets accounted for around 94% of the total value of Australian dairy exports.

“The Australian farmgate price of milk is forecast to rise by around 5% in 2014-15 to average 50 cents a litre.

“In addition to this expected price increase, Australian milk production is forecast to increase by 2% in 2014–15 to 9.25 billion litres, following a small contraction this year.

“Over the medium term, Australian milk production is projected to rise to around 10.2 billion litres by 2018–19.

Rob Bonanno answers what level of losses farmers should be worried about through cows aborting. PG.23

NEWS �������������������������������������������������������3-9 OPINION �����������������������������������������������10-11 PASTURE MANAGEMENT ������� 12-20 AGRIBUSINESS ������������������������������������ 21 MANAGEMENT ������������������������������������� 22 ANIMAL HEALTH �������������������������� 23-25 BREEDING MANAGEMENT �����26-27 FARM WORLD PREVIEW ����������������� 28 MACHINERY & PRODUCTS ��������������������������������������29-34

Gippsland farmer Lucas Licciardello would like to see greater weighting given to longevity in the Australian Profit Ranking.

Page 26

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DAIRY NEWS AUSTRALIA MARCH 2014

4 // NEWS

Fonterra wants extra 100m litres SUDESH KISSUN

FONTERRA

IS

pushing back against growing competition in the Australian market.

The co-op aims to lift milk supply by 100 million litres annually with a marketing campaign based on its global reach.

Fonterra Australia managing director Judith Swales says the co-op is targeting Australian farmers. “We know from surveys we have done that Australian farmers increasingly want to be part of the global scene,” she told Dairy News Australia.

“That’s where we see Fonterra being able to win in this marketplace.

Obviously with our footprint around the globe we are able to give broader access for our farmers through that global market, so we feel we are better placed to satisfy farmers than anybody else in Australia.”

Last season Fonterra collected 1.57b L of milk from 300,000 cows milked by 1300 farmers. While it has enough milk to process at its 11

plants, it is always looking for more, says Swales.

“We are looking to grow our milk by about 100m L per year and we think we can do that given the strength of the Fonterra brand and the global strength of the Fonterra footprint, not only with the brands we have but with our manufacturing footprint in this market.”

Fonterra is also banking on its R&D capabilities in Palmerston North to win new suppliers. Swales says the co-op has innovation other players in this market won’t have.

At the recent Australian Dairy Conference in Geelong, Gary Helou, managing director of rival Murray Goulburn, played the farmer cooperative card.

Helou emphasised that MG was the only remaining major dairy co-op in Australia following the takeover of Warrnambool Cheese and Butter by Canadian processor Saputo.

He claimed that commercial processors preferred higher profits at the expense of a milk payout but co-ops aimed for maximum payout

to farmer shareholders.

Swales says for some Australian farmers, being part of a co-op is important. But “an increasing majority” want to be part of the global food scene. They want to be part of this food bowl to Asia concept. “This is increasingly what they are looking for and we have that access.”

Swales agreed Fonterra had challenges in Australia but it was here to stay. “It’s a must-win market for us.

The Australian milk pool is valuable locally and globally and we need to find a way to win.”

Swales said Fonterra isn’t paying too much attention to Saputo’s acquisition of Warrnambool Cheese and Butter.

“They bought that for some strategic rationale. But I see a huge amount of potential in our Fonterra Australian business. Although there are a number of challenges, we are working through those.

“We have to give ourselves a solid foundation to build from and when I look at this business I see no shortage of opportunities.”

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Fonterra Australia MD Judith Swales.

Brand restructure starting to deliver AS A schoolgirl in Yorkshire, northern England, Judith Swales delivered milk to neighbours before heading off to classes.

The daughter of a milkman, Swales grew up around dairy farms although she admits not having to wake up every morning to milk cows. Today, she lives on a dairy farm near Melbourne and as Fonterra Australia managing director she heads a business that collects 1.6 billion litres of milk from 1300 farmers, runs 11 processing plants and supplies leading dairy products to Australians.

The principle of delivering a quality dairy product on time is an enduring memory from Swales’ childhood, but running a consumer business in the highly competitive Australian market has a lot more challenges. Swales was appointed in June 2013 to turn around the co-op’s Australian business, reeling from the effects of heightened competition for lower milk volumes and continuing margin squeeze on consumer brands.

Nine months into the role Swales is confident the reshaped Australian operation is making progress. It’s no secret Australia is a tough market and there are challenges but they are focussed on turning the business around, she told Dairy News Australia.

“We are making good progress. It’s a journey and I think we’ve got the right team on board.

“We have a billion dollars tied up in working capital and like any other business we need to make sure we give our shareholders the return on the capital invested. That’s where we are focussed at the moment – making sure we are an integral part of a winning supply chain

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where farmers and customers are profitable and growing.”

As part of the business reshape, Fonterra is putting the lion’s share of its Australian advertising spend into five master brands: Western Star butter, Perfect Italiano cheese, Mainland cheese, Bega cheese and Ski yoghurt.

The focus is on making the brands bigger and better, Swales says. “Part of this is transitioning sub brands underneath these master brands to add reach and scale.”

In the yoghurt and dairy desserts market Fonterra is trying hard to regain the market leader status it recently lost to Yoplait. Swales says the yoghurt category is much changed: small gourmet yoghurt brands have eroded the market share of bigger international brands like Ski and Yoplait.

It’s early days but Fonterra hopes its recent purchase of Tamar Valley Dairy, which has pouch and single serve facilities, will help it regain the number one spot.

In the cheese category, Fonterra remains the top cheese with 24% market share. Its Perfect Italiano cheeses are a big success.

Fonterra’s Western Star butter has 18% market share and the co-op leads the spreads market with 26% share.

It sells one tub of Western Star butter every second.

Fonterra also supplies the food service industry – about 7500 restaurants, pubs and clubs – and is alongside chefs nationwide.

The main thing is not the number of brands but the right brands for each category, Swales says.

DAIRY NEWS AUSTRALIA MARCH 2014

NEWS // 5

Farmers in “survival mode” SUDESH KISSUN

MOST AUSTRALIAN dairy farmers are in survival mode because they have lost bargaining power, says Murray Goulburn managing director Gary Helou.

Mr Helou told the Australian Dairy Conference in Geelong last month that bargaining power is crucial for farmers.

If you lose it you will struggle, he said.

Speaking from Dubai via a video link, Mr Helou said a co-op is constituted by members to maximise the farmgate price, unlike commercial processors who aim for “minimising the milk price

and maximising profits”.

It’s a unique point of difference that separates us from others, he said.

Dairy processing is an intensive business requiring local point of production, stainless steel and capital investment which provide long term returns.

Mr Helou points out that four of the world’s top eight dairy processors are co-ops: Fonterra, Dairy Farmers of America, FrieslandCampina and Arla Foods.

Co-ops are successful because farmers have the bargaining power.

In Australia, the history of deregulation in the dairy sector over the last two

years hasn’t been great, he said.

“We have seen a fragmentation of the industry. Farmers without any stainless steel and without any bargaining power have been relegated to survival-only mode. This is what we have outside Victoria: farmers have no capacity to bargain or process their own milk.”

MG is reviewing its capital structure and one of the options includes Fonterrra’s TAF model.

Mr Helou said MG is determined to become a world beating dairy exporter and marketer like the other global co-ops. It will spend $500 million to boost its powders, cheese and UHT milk

production lines.

MG needs to kickstart its stainless steel capabilities, he said. “Today we are as competitive as our rivals ex-farmgate, but ex-factory gate we are hopeless. To be honest, we don’t have the footprint other global companies have.”

Mr Helou said in the last five years Fonterra has invested $1b in China building farms, infrastructure and on marketing.

French company Danone and Arla spent A$700m each to buy a cornerstone stake in leading Chinese dairy processor Mengniu.

“Other Australian players including

us have not made similar strategic investments. Until we approach that mentality and level of investment, not in quantum but in terms of direction and impact, we will not progress.

Gary Helou “We need to upgrade processing; [farmers’] farmgate products we receive are world class and they must also leave our factory and ports as world class products.”

Share value “should” rise under MG plan MURRAY GOULBURN

has told suppliers their shares “should” be valued higher than the current $1 value under its proposed restructuring.

The co-op sent a letter to all suppliers early this month to reiterate its rationale for the proposed restructure.

The letter, signed by MD Gary Helou and chairman, Phil Tracy, said the co-op has identified capital investments with a total value of between $400 to $500 million over the next three to five years to rejuvenate it manufacturing and supply chain infrastructure.

Areas highlighted included nutritional powers, cheese and liquid milk.

MG has held 16 supplier meetings, where it said the existing 100%

farmer control and current voting cap would remain unchanged.

In the letter, it said the proposed structure would allow MG to raise capital in a way that should value MG shares at a market price, higher than the current $1 value, strengthening farm balance sheets.

It also said suppliers would generally hold 1 MG share per kg/MS. More than half of the current suppliers already meet or exceed this. Those that don’t would have the opportunity to acquire MG shares before the commencement of the proposed restructure.

Under the proposal, MG would issue notes to be held by a unit trust listed on the Australian Stock Exchange (ASX).

The unit trust will pay for the notes by issuing units

to investors, unit holders.

The notes will have equivalent economic rights to MG ordinary shares. Unit holders would have a right to receive a distribution on their units which is the same as the dividend paid to MG supplier on their ordinary shares.

Unit holders will not have any voting rights in relation to MG. Following the capital restructure MG’s ordinary shares held by suppliers will have the equivalent economic rights and should have the same value as the units that will trade on the ASX, the letter said.

Supplier shares will not be able to be traded on the ASX, but will be able to be traded amongst suppliers, subject to trading rules to be developed, through a

private market facilitation mechanism available only to MG’s ordinary shareholders that should ensure that MG ordinary shares and units trade at the same price.

MG said the restructure would also help achieve its already stated goal of another $1/kilogram milk solids in the farmgate price by 2017.

MG said the board has not placed a definitive timeline on when this process must be complete.

At last year’s AGM, Mr Helou said the co-op hoped to hold an extraordinary general meeting in May, depending on the feedback received from suppliers at a round of meetings in March.

He said at the AGM the co-op hoped to implement the proposed structure by a target date of July 1.

L A I C E SP T R O P E R NEXT ISSUE: APRIL 2014 TECHNOLOGY Businesses in every imaginable industry are boosting their productivity by using information technology (IT) to do much of the heavy lifting: crunching data, weighing and scanning, even opening gates. In the next issue of Dairy News Australia we have a special report on the latest tech developments and how farmers can extract maximum benefit from them.

BOOKING DEADLINE: April 2 MATERIAL DEADLINE: April 8 PUBLISHED: April 15 CONTACT: CHRIS DINGLE T: 0417 735 001 E: chris@dairynewsaustralia.com.au

DAIRY NEWS AUSTRALIA MARCH 2014

6 // NEWS

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No stopping Chinese demand CHINA’S DEMAND for Australian

milk powder and dairy heifers has strengthened over the past 12 months and is expected to continue.

Australia’s farm gate milk prices are up around 25% on last season and the outlook for global demand for dairy, particularly in China, remains robust, according to Dairy Australia’s Situation and Outlook Update, released last month.

Global dairy demand remains on a steady footing despite pricing at near record levels and production shortfalls in China and Russia have boosted import demand in those markets.

Mr Repacholi said Australian dairy heifer exports are still in high demand with live cattle exports up 12% to around 85,000 head in the year to November 2013 with China the major buyer (79%) followed by Pakistan (10%) and Russia (4%).

Murray Goulburn managing director, Gary Helou, told the Australian Dairy Conference last month that China would continue to be the major market for dairy products for years.

With declining milk production and soaring consumer demand, it will remain “the defining battlefield” for major processors. China’s milk production this year is down 6%, due to poor weather, TB issues and high cost of feed, he says.

“China will be the place to be for many years to come, make no mistake about that,” he said.

Helou sees Australia as the food bowl of Asia. “Our future lies in Asia, not in our domestic market. The good thing is that Asia is right at our doorstep but… that doesn’t mean it will come to us.”

He singled out Russia as “the next

China”.

The Dairy Australia report showed Southeast Asia is showing steady growth despite localised challenges, and exports to South Korea should benefit from the yet to be ratified Korea-Australia Free Trade Agreement.

Australia’s milk production trails 2012/13 in year-to-date data and is expected to finish the year at levels the same or slightly lower than those recorded in 2012/13, due largely to ongoing Norman Repacholi issues from the challenging second if any, jump in milk price as those experienced by dairy producers in half of the year.

Dairy Australia is forecasting milk export focussed regions. They are production of 9.0-9.2 billion litres also still facing cost pressures as a for the 2013/14 season, a contraction result of unfavourable weather or tight regional hay and grain supplies,” of between 0-2%.

Despite the overall positive trends, he added.

On global currency movements, increased cash flow for dairy farmers is being directed to creditor payment the weaker Australian dollar is likely to place upward price pressure on and debt retirement.

DA commercial and research anal- imports such as fertiliser, fuel and ysis manager, Norman Repacholi, said grain prices.

“Australia’s supermarket milk and poor weather has been a constraining factor, particularly in northern dairy spreads, volumes and values are regions, as have lower in-calf rates remaining stable, cheese volumes are up, but discounting of chilled (block) and pasture damage.

“But as the season progresses, con- cheeses has shown a slight decline in fidence will likely firm with the farm the total category value,’ Mr Repagate price and this will provide the choli said.

“Despite last season’s challenges, latitude to capture some production Australian dairy has scored internaopportunities,” Mr Repacholi said.

“Processors will attempt to adjust tional headlines with the competition product mix to maximise returns to acquire Warrnambool Cheese and where contractual arrangements Butter (WCB) and a rush of other permit, still, lower than expected pro- major transactions.

“The intense business interest in duction could mean delays in fulfillthe potential of Australian dairy in the ing orders.

“At the same time, produc- region reinforces how well regarded ers focussed on Australia’s domes- our sector is for its quality produce,” tic market have not seen the same, said Mr Repacholi.

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NEWS // 7

African dreams start in SA Charles Wallis and Ntsikelelo Baleni.

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Africa… when we don’t have a shortage from the monkeys eating the maize crops.”

Working on Charles and Stacey Wallis’ 650cow Harrimar Dairy at Compton since the start of the year, Lelo is undertaking a number of on-farm roles and enjoys learning from Charles, who has dairy farmed on three continents.

A major difference Lelo has noticed is the productivity of Australian cows, with Harrimar cows averaging 30 litres a day compared with South African cows that produce around 10L a day. Lelo says there is more opportunity to do a variety of tasks on-farm here, as opposed to back home.

“Before I came here, I’d driven tractors but not with implements. South African dairies tend to employ a lot of staff but there is not as much scope for working across all

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incorporating a nature reserve.

Lelo believes the subtropical climate of his village is suited to dairy farming and can produce quality pastures with its 1000 millimetre annual rainfall, mostly occurring over summer. He feels comparing Australia’s pasture-based dairy systems will provide valuable insights for the plans to establish a dairy in his community.

“Although I’ll be dairying on the other side of the world, there are quite a number of similarities between dairy farming in Australia and dairy farming in South Africa, particularly the grass-based production.

“I’m learning as much as I can about pastures while I am here in Australia as I will be working in a grass-based system back home. We also incorporate maize silage into the feeding program in South

DE

•

but it would supply the local residents and generate profits able to support community investments in health and education,” Lelo explains.

The Mabandla community and Transkei tribal homeland is one of the few communities in South Africa that has not relied upon Government support to sustain it.

Despite its isolation and limited access to electricity and running water, the community has driven development with most households contributing financially to setting up the Mabandla Community Trust and the Mabandla Development Company.

Of the many agricultural projects run by the community, a 7000ha forestry initiative is in its ninth year and with plans to invest in a sawmill to add value to production.

Other programs include beef and sheep operations and a tourism venture

•

and first-hand experience in large-scale dairy farming are key learning areas for South African Ntsikelelo Baleni, as he spends the year working on a dairy farm in Mount Gambier.

Twenty-one-year-old Baleni - or Lelo as he’s known – is the son of a South African tribal chief and plans to establish a 2000-head dairy farm to help employment and provisions in his rural community, when he returns to Umzimkulu, in the KwaZulu Natal province, about six hours south east of Johannesburg.

Lelo says he feels positive about creating a largescale dairy in South Africa, despite the country’s own market challenges, which have seen dairy farmer numbers decline by more than two-thirds in the past eight years due to rationalisation and pressure from the corporate processing sector.

South Africa produces about 200 million litres of milk per month or 2.4 billion litres of milk per year, while Namibia produces 22 million litres per year, making up about 0.5% of world milk production.

“Unemployment is a big issue across South Africa, but the ‘Mabandla (meaning many tribes) community’ I belong to is committed to helping create jobs locally. Developing a large-scale dairy in the community - and perhaps in time, a processing facility able to make cheese - would not only result in job opportunities,

Network. He is the third South African employee Charles has had and joins a team of workers, including backpackers and travellers from Germany and France.

“Having an employee on-farm for a year is beneficial for their learning and for our

aspects of the farm. It’s also nice to have more work-life balance, with double shifts for 25-days straight not uncommon back home,” he explains.

Lelo has also completed dairy training courses through TafeSA and has become involved in DairySA’s Young Dairy

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DAIRY NEWS AUSTRALIA MARCH 2014

8 // NEWS

Farmers lack confidence as Qld milk shortfall increases ALMOST NINE in every ten Queensland dairy farmers lack confidence in the future of the industry, the majority have negative cashflow, and farmgate milk prices will need to rise by at least 12 cents per litre before confidence can be renewed and fresh milk supplies are restored for Queensland consumers.

This was a key find-

ing of a survey by the Queensland Dairyfarmers’ Organisation of the State’s dairy farmers in January.

The QDO distributed its survey to the State’s 496 dairy farmers and received a response rate of 46%.

QDO President Brian Tessmann said that the survey was confirmation of the ongoing impacts

and confidence crisis hitting the Queensland industry, which had been rocked in recent years by floods, cyclones, the milk price war, and now severe drought.

“Of those surveyed, an alarming 87% said they were uncertain or not confident in the future of the northern industry, and 79% were either uncertain

or not confident in their own dairying business,” Mr Tessmann said.

He said that with drought conditions now tightening on the State’s dairying regions, the shortfall of milk, that followed the supermarket milk price war and low farmgate milk prices, has accelerated.

“It has been esti-

mated that the shortfall of Queensland milk is about 100 million litres or 20%.

The ludicrous situation is that milk is being freighted at a higher cost to fill the gap, at a cost more than local farmers are being paid. Our market is in total failure.

“The supermarkets could fix the problem with the stroke of a pen, but the

You can't manage...

reality is that the industry is facing its third natural disaster – drought – since the price war began and the supermarkets are still refusing to stop the milk price war.”

Mr Tessmann said that in recent days, farmers supplying processing company Lion had received news that milk prices would increase by slightly less than two cents per litre.

“It’s a start, but it’s nowhere near enough.

Queensland dairy farmers

have had major price cuts in recent years and not seen major any rises anywhere near CPI in recent years, let alone prices rises that consider rapidly rising costs.

“The Queensland Government’s Queensland Dairy Accounting Scheme report for the 2012/13 financial year reports the cash costs of production are 55.2 cents per litre, compared to farmgate milk prices of around 51.3c per litre, leaving the dairy farmers in the red.”

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ing with Chinese companies in a bid to build new processing plants in NSW. Dairy Connect chief executive Mike Logan has said three plants could be built in the state’s dairy regions, with a total cost of $150 million.

The prospective investors are both state-owned enterprises and private companies, with executives having visited locations in the state’s Hunter Region, the Central West and the Southern Highlands where the plants would be constructed to supply milk powder to the Chinese market.

Mr Logan said the Chinese companies wanted to diversify from having their whole supply coming from New Zealand.

“They don’t want to be seen as controlling or central players,” he said.

“They want to be participants and partners in this investment. They want to partner with Australian farmers.”

It would give NSW famers more options in the fresh milk state.

Under the plan, greenfield powder sites would be built for about $40m each.

“We’re trying to connect NSW farmer with the international market,” he told ABC Radio.

“The farmgate price for dairy in NSW is not reflective of the international price for dairy. The only way to break out is to give the farmers access to the international price and the only way to do that is to attract investment in manufacturing.”

Mr Logan said the plan had the support of more than 500 dairy farmers across the state and Norco, the main cooperative in the region.

However, the main deterrent is milk access, with farmers not ready to commit, he said. “Farmers have existing contracts with processors. They will expire over the next 1-2 years, as they expire then we can start to take up commitments from farmers to deliver to factories.

“It may be that we will take part of their production.

It could be during the spring surplus.”

DAIRY NEWS AUSTRALIA MARCH 2014

OPINION // 9

EU farmers face brave new world ONE OF the big changes in the world dairy market environment will occur in a little over a year from now, when the European Union (EU) terminates the use of production limits (known as quotas).

Today each of the 27 members of the EU has an annual limit of milk volume that can be produced by its farmers.

If a country exceeds its quota in any year, it wears a fine from the European Commission (EC). Any country that incurs a fine must in turn impose fines on its farmers who overrun their own individual limits.

The quota has been a regulated hand-brake on EU milk output since 1984.

It has been used with various other policy stimulants and handcuffs over time, many of which have been removed, reduced or remain unused.

The quota is one of two significant pieces of EU government intervention left – the other is the system of subsidy payments to EU farmers which have been downsized, and now come with many conditions… but won’t end soon.

Views on the extent and nature of the impact of quota removal vary.

The EC’s latest industry projections assumes net growth in total milk output of just 3.3bn litres over the 5 years to 2020, most of which will be made into cheese for export. EU cheese exports would in the EC’s view grow nearly 20% over 5 years. In this scenario, some regions expand and some shrink.

Others reckon milk output will increase by between 9bn and 15bn litres net – growth of 2% per annum at the top end. Those views suggest adjustment won’t be clean – growers will grow fast and the stressed operators will exit slowly.

But put that into perspective: Total global milk consumption is expected to grow between 2-3% per annum by 2020. Trade imports from developing countries is likely to grow at a faster rate than this, provided the global economy (i.e. China’s growth miracle) doesn’t end up in the toilet.

Many major proces-

But the brave new world for the EU will mean more volatile wholesale and farmgate milk prices once they are more directly exposed to world market forces, which scares many.

FRESH AGENDA STEVE SPENCER sors see the future differently to the EC, and have invested significantly in new capacity ahead of the change. Two-thirds of those new plants are for milk powder and other dry ingredient production, rather than cheese.

Powder ingredients are the focus of the world’s dairy demand growth in future, and EU players are leaders in innovation in these products.

But the brave new world for the EU will mean more volatile wholesale and farmgate milk prices once they are more directly exposed to world market forces, which scares many. This will undoubtedly cause adjustment in the EU farm sector, which comprises great diversity in farmer approach, size and likely long-term viability.

While the commercial sector of industry is today ready for change, farm organisations and many EU-member governments aren’t as prepared.

Surprisingly little serious work has been done understanding the likely effect of changes.

It is likely that the EU Parliament will impose some cash assistance and other policy changes should less-competitive production regions suffer strong impacts from change.

A further major change will be in ongoing consolidation of the processing sector, as companies reduce exposure to vulnerability in milk supply and volatility in prices; and improve their cost-competitiveness and connectedness to markets.

The other possible impact is the likelihood of more intense retail price competition in the dairy product category as the supply chain becomes less orderly.

In the meantime, there appears to be ample capacity to expand milk production ahead of quota

removal, aided at present by strong milk prices and reasonable feed costs.

The top 8 milk-producing countries (72% of

output) together grew milk supply over the final quarter of 2013 by 4.5% compared with the prior year.

This surge is a combination of competitive producers readying for the post2015 era and ignoring

possible fines, and others rebounding from a drop in output in the prior year in response to good production margins.

The EU industry is generally confident of the changes ahead, but the timing of the quota removal may prove delicate if a global supply surge continues and

farmer margins are falling as axe falls.

• Steve Spencer is a director of Freshagenda, a Melbourne-based consulting and analysis firm that provides food value chain insights and solutions to a wide range of clients from farm to retail.

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DAIRY NEWS AUSTRALIA MARCH 2014

10 // OPINION RUMINATING

EDITORIAL

Port of Melbourne should not be sold

MILKING IT...

Premature speculation

VICTORIAN PREMIER, Denis Napthine, called Labor’s plan to sell the Port of Melbourne a “premature sell-off”, when it was announced back in November.

Premature by about 2½ months by the looks of things, with his government announcing early this month that they would also privatise Victoria’s largest port.

The Premier said Labor’s plan was premature because the Port of Hastings should be developed first.

Handing the gateway to a private corporation that’s driven by shareholder returns has raised alarm bells in the dairy community, as dairy is the largest single export out of Port Melbourne.

Farmers have already seen what it’s like when former cooperatives, which place the farmers first, are replaced by multinationals.

Not happy, Peter

VICTORIAN AGRICULTURE Minister Peter Walsh probably should have run his comments on his government’s Right to Farm legislation by the Vic Farmers Federation first.

The Minister said legislation removing the Section 32 notice warning people moving into a farming area they may be exposed to noise, smell and dust would be welcomed by the VFF. The VFF said they were “stunned” by his claims.

It’s hard to work out why the Minister would think removing further rights from farmers would be welcomed with open arms, particularly as it was an election promise.

Maybe the Premier’s turnaround on the port sell-off left everyone in the party room dizzy and confused.

Got milk? Not anymore

HARD TO believe the Milk Processor Education Program (MilkPEP) in the US is moving on from its “Got Milk?” campaign, which has been an iconic slogan for almost 20 years.

The Got Milk? campaign has utilised celebrity endorsements over that time to keep a high profile for everyone’s favourite drink.

However, it has been replaced by a new campaign called “Milk Life”, which aims to highlight milk’s nutritional benefits.

MilkPEP says the $50 million campaign aims to get the attention of consumers again, with sales dropping. The milk body said consumers needed to be reminded of the nutritional value of milk.

It will still be used by the California Milk Processor Board, which licensed the tagline to MilkPEP, but not nationally.

Time will tell whether Milk Life makes a mark and Got Milk? is dusted off in the future.

Advertising Chris Dingle chris@dairynewsaustralia.com.au

Getting of wisdom

OUR THANKS to Picton, NSW, farmer John Fairley of Country Valley milk for sharing these words of wisdom on twitter: “You can learn many things from children, how much patience you have, for instance.” (Franklin P.Jones) “By the time you can make ends meet, they move the ends.”

“Age is a very high price to pay for maturity.”

And finally: “There are two rules for success: 1. Never tell everything you know.”

0417.735.001

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

Head Office Top Floor, 29 Northcroft Street, Auckland 0622, New Zealand

Phone +64.9.307 0399 Fax +64.9.307 0122

photographs are subject to copyright and may not be reproduced without prior written

Publisher Brian Hight Production D ave Ferguson Becky Williams Sub Editor Pamela Tipa

Dairy News Australia is published by RNG Publishing Limited. All editorial copy and

DAIRY FARMERS have seen what happens when community assets are sold off.

Farmers in NSW and Queensland had incomes slashed when Lion, which bought the Dairy Farmers Milk Co-Op, introduced Tier 2 milk prices in a bid to minimise losses accrued through their purchase price.

It’s why farmers champion milk cooperatives that direct profits back to the farmer, and not shareholders.

It’s why the dairy community has a right to be concerned about the proposed sale of the Port of Melbourne – by both the Government and the Opposition, should it win power at this year’s election.

Dairy is the largest single export out of Port Melbourne – that’s a fact that State Agriculture Minister Peter Walsh shares often. Dairy exports provide extensive funds for the State Government’s coffers, so its sale seems like the farmer who killed the goose that laid the golden eggs.

Its sale, which Opposition leader Daniel Andrews has estimated at $6 billion, will provide short-term funds. Andrews has said he will use it to remove level crossings in Melbourne.

Premier Napthine has said it will be used to finance the eastwest tunnel link that a recent survey revealed less than 25% of Melbourne residents wanted.

So the port built in large part by dairy, will be sold to finance city projects. Dairy exports will then help produce profits for a private corporation, driven by shareholder returns.

The Victorian Farmers Federation has significant concerns the sale to the private sector would lead to higher port charges.

It’s not a far stretch of the imagination to predict these would quickly be passed down the supply chain to dairy farmers. It has happened before.

Exporters won’t have other options either. It won’t be viable to cart dairy to alternative container ports in Brisbane or Sydney if the port fees get too high in Melbourne.

The VFF has called for rock-solid guarantees on competition, price and access if the port is sold, which appears likely.

It also wants funding reinvested in rural and regional Victoria. We go further and say the Port should not be sold.

Governments have a history of selling public assets and finding themselves back in debt years later.

Governments come and go, but future generations of dairy farmers will be left with rising port costs and a further handbrake on their long-term viability.

We ask the Premier and the Opposition leader to think again.

Published by RNG Publishing Ltd Printed by PMP Print

permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of the staff, management or directors of RNG Publishing Limited.

WWW.DAIRYNEWSAUSTRALIA.COM.AU

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

DAIRY NEWS AUSTRALIA MARCH 2014

OPINION // 11 THE FRESHAGENDA EXPORT INDEX FRESHAGENDA’S EXPORT index hit a record 246.1 in the first week of February, eclipsing the previous peak in September 2007 (243.0). It has since relaxed a little but remains at giddy heights, close to 240.

Commodity prices started moving higher in December 2012, and have increased 40% since then, while the weakening dollar has made its contribution moving the index 70% higher.

Comparing the previous 2007 peak to the current index, skim milk powder and cheddar prices are similar, whole milk powder prices are up $350/t while butter is significantly stronger – by $1,200/t. Back in 2007 the Australian dollar was 5 cents lower than the US currency.

The index is a lead indicator of average export returns - based on current spot prices, currency movements and the Australian dairy

Farmers cop wrong whack JAN DAVIS

THERE’S BEEN a lot of talk of late

industry’s export mix. It was set at 100 in January 2000.

The index measures current market sentiment, but in reality it takes 3 to 6 months for prices to translate into actual returns, depending on the timing of contract negotiations.

Given Australian production has fallen this year, and we are heading into a seasonally low production period, there is limited product available for spot trade at these prices. However, the index paints a positive picture for 2014/15 farmgate price.

Freshagenda’s modelling suggests these export returns would

translate to around $7.80/kgMS if they could be locked in for the 2014/15 year. The extent to which this positive index converts into actual farmgate prices over this coming year will be determined by several large variables: ■■ EU and US response to better production margins ■■

Whether high prices burn off global demand for products

■■

How quickly international prices convert into domestic wholesale returns

■■

How far the $A falls against the US and other currencies.

about the need for governments to stop propping up unviable businesses and industries.

The case in point has been the car industry. The taxpayers kept pouring money into something that is terminally broken - $12 billion over the last 10 years and more than $45,000 for each job every year in the case of General Motors.

At the same time as we have been pouring money into the car industry, we have seen thousands of Australians losing their jobs in food manufacturing, with knock-on effects into the farming community.

Somehow, though, until recently that hasn’t generated the same national outcry as the demise of Australianborn Holdens, Ford and Toyotas.

That has turned around a little over recent weeks, with the situation that has arisen in Shepparton with the announcement of the closure of the SPC-Ardmona cannery.

The immediate reaction then was to look for a government bailout, even though the federal government made it clear the national purse was empty.

Interestingly, in this debate, the economic rationalists were quick

out of the blocks to once again take a swipe at Australian family farmers.

They have been drawing analogies between government subsidies for foreign-owned manufacturers in the car and food sectors and support payments to farmers during times of drought.

“Let them stand on their own two feet,” they say. “If they can’t compete in a global market, they need to toughen up or get out,” they say. “No public funds should go to support unviable and unsustainable farm businesses,” they say.

Let just unpack that a little – and run it through a fact checker.

Australian farmers receive next to nothing in subsidy payments. In fact, with New Zealand, our farmers get the lowest level of assistance in the world.

According to the OECD, only 3% of an Australian farmer’s income is attributable to government assistance.

The three major components of that subsidy are: matching dollars for industry funded R&D; assistance after natural disasters, and the diesel fuel rebate. The OECD average is 20%, capped by Norway at 60%.

The equivalent figure in Australia for cars and parts is 8.5%; for textile clothing and footwear manufacturing 10.6%; for wood and paper products

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Let’s make that a bit clearer.

The OECD says that the average Australian farmer receives US$1,360 pa in government assistance.

American farmers receive US$30,170 pa; US$106,975 in the EU; and US$165,591 in China.

The average hourly rate for a farmhand in Australia is US$16.88/ hour for a 38 hour week. The equivalent NZ farm worker is on US$11.18/hour for a 40 hour week; in America, US$7.25; in the UK, US$10.02; and in China, US$1.19.

There are no tariffs or quotas on most food products into Australia.

The equivalent tariff rates are 5% into the US; 18% into the EU; and 20% into China. In the much-vaunted free trade agreement currently under negotiation with South Korea, the 304% tariff on potatoes is to be immediately removed. Tariffs of 36% on cheese and 89% on butter will be eliminated over the next 13 to 20 years. Australian dairy exporters will also benefit from growing duty free quotas for cheese, butter and infant formula.

Our farmers are on any measure among the most efficient in the world.

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

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DAIRY NEWS AUSTRALIA MARCH 2014

12 // PASTURE MANAGEMENT

Chicory rewards those with a green thumb WELL-MANAGED CROPS of chicory have

the potential to yield 11 tonnes of dry matter/ha from October to June but

there is a catch.

Warragul-based farm consultant Matt Hall said farmers should not race into planting the peren-

nial herb unless it fits their farm system, and they have “a green thumb”.

Mr Hall was speaking at the annual Notman

Pasture Seeds field day at Poowong last month, alongside Gippsland dairy farmer David Barry, Labertouche.

Adam Fisher of Notman Pasture Seeds and consultant Matt Hall.

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With strong all year growth and exceptional winter performance, Knight is ideal for your grazing, hay and silage needs.

Mr Barry has successfully grown chicory for the past decade and uses it for seven to eight months a year.

However, Mr Hall said Mr Barry had “a green thumb” and that it could be a tricky crop to establish.

Chicory is a deep rooted summer-active, short-term perennial herb with good nutritive characteristics. There has been renewed interest in its potential to provide highquality summer forage for grazing on southern Australian dairy farms.

It has a number of desirable features in common with Lucerne, but is adapted to a much broader range of soil types, and has reliable summer growth, even with low rainfall, due to its deep taproot system.

When grazed, it can provide 12 MJ ME/kg DM and up to 25% DM crude protein, and can be used as a 1 or 2-year summer crop in pasture renovation programs that allows a seamless return to grazing; or as a 2 to 4-year perennial crop that can be oversown with cereals, annual or perennial grasses.

Mr Hall told those at

Gippsland farmer David Barry at Notman Seeds field day.

the field day that it can be a good fit if you are a seasonal calver on a developing farm. He said it costs about $120/ha of dry matter, including cost of resowing pasture after the crop.

Mr Barry said the addition of chicory to his farm gave him flexibility of herd management, as well as more silage. It also helps him protect his ryegrass.

Mr Barry aims to sow 10-15% of his 68ha effective milking area with chicory each year.

It is irrigated in late February-early March with effluent, which suits their

management.

As a single crop, the sowing rate for chicory is normally 4-5 kg of seed/ha, according to the 3030 project guidelines.

It can be sown into a cultivated seed bed or direct drilled, although it is important to make sure that the seed is no more than 10 mm deep.

Soil temperature needs to be greater than 10°C for a successful establishment. Sowing in spring is the preferred practice in southern Victoria, according to the 3030 guidelines, although autumn sowing is also possible.

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DAIRY NEWS AUSTRALIA MARCH 2014

14 // PASTURE MANAGEMENT

Knight grows more feed for Barooga dairy SOUTHERN RIVERINA dairy farmers, Roger

and Peta Modderkolk, have passed Knight with flying colours, after hosting a test run for the new diploid Italian ryegrass last year.

They agreed to grow 30ha of the new pasture on farm to see whether it

could produce more feed faster than the current market leader in Italian ryegrass, Crusader.

“We are always interested in trying new varieties that could work for us here,” Mr Modderkolk said.

He and his wife, Peta, milk 220 cows and grow all

their herd’s feed requirements from 120ha of irrigated pastures on their farm at Lalalty, near Barooga, NSW. The Modderkolks usually grow Italian ryegrass (Crusader) with shaftel clover for the bulk of their pasture feed.

Knight was sown in late

March last year and established quickly to provide grazing feed just 10 weeks later.

“Fast establishment is important to us, because the quicker we can get cows onto the paddock, the more milk we can produce,” he said.

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Roger Modderkolk was pleased with the winter grazing and spring silage produced from his paddocks of Knight Italian ryegrass.

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was topdressed with 100 kg/ha of urea to further boost winter growth ahead of a second grazing.

The paddocks were locked up at the end of July for silage.

Mr Modderkolk said Knight responded very well to nitrogen fertiliser and increases in temperature as the season progressed.

“Knight provided a lot more tiller density than Crusader and it was faster growing,” he said.

He said the 30ha of Knight produced 500 bales from the first cut and another 360 bales from the second cut.

“The second cut of silage from the Knight paddocks was heavier than the first and had fresher looking tillers than the Crusader,” he said.

“Knight gets a pass from us and we’ll be growing it again this year.”

With a couple of applications of urea after cutting and prior to irrigation, Mr Modderkolk also

applied 150 kg/ha of superphosphate in winter.

“You’ve got to irrigate on time and fertilise on time to make the most of your pastures,” he said.

“Growing feed on farm is important to us because it makes the operation so much more cost-effective.

“We haven’t had to buy in feed for five or six years.”

Mark Palmer, Northern Victorian sales manager for Stephen Pasture Seeds, said it was a tall order to improve on Crusader, but Knight had been selected to replace it because of its rapid establishment capabilities and outstanding autumn and winter yields.

“Knight’s speed out of the ground means the pasture is up and growing quickly to produce strong autumn and winter yields,” he said.

“This speed of growth also makes Knight ideal for pasture renovation because it is such an aggressive competitor to weeds.”

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March 20 will give district farmers new options for growing fast feed for winter.

Grassland Society Albury-Wodonga branch secretary Jeff Hirth said the ‘fast feed for winter’ theme was based on an expectation that following the dry finish to last spring and the hot dry summer in north-east Victoria and the NSW Riverina, most pasture paddocks will be heavily grazed by late March.

“Traditionally producers have sown forage oats at high seeding rates to provide them with a graze-onlyonce winter feed, but we want to show them that there are other more flexible options like brassica species,” Mr Hirth said.

Based on current prices for forage oat seed, seed costs for sowing a forage oat for winter feed are about $100/ha, whereas the seed cost of sowing a forage brassica is about $45/ha, with the forage brassica producing similar quantities of dry matter over the winter.

The seminar will run from 9am-3.30pm and includes a barbecue lunch. Cost is $10 for GSSA members and $15 for non-members.

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DAIRY NEWS AUSTRALIA MARCH 2014

PASTURE MANAGEMENT // 17

Tough season for new ryegrass SOUTH WEST Victorian and spring, but the Knight dairyfarmer, Con Glennen, held on longer before going couldn’t have had a tougher to head later in spring.”

Mr Glennen chooses season to evaluate the new Italian ryegrass, Knight, on Italian ryegrass for the dry volcanic stone country his farm. on his farm to maximise While the variety was expected to produce strong pasture yields from the area. Perennial ryegrass autumn and winter yields, is not considered, as it last year’s dry autumn will not persist in these meant that the seed which paddocks. was direct drilled in late Italian ryegrass is sown March didn’t germinate each autumn, usually as a until June. stand-alone straight grass “It was the worst in the paddock. autumn I have seen in 22 “By sowing Knight years farming at Noorat,” by itself, we have the Mr Glennen said. opportunity to clean He and his wife up any Michelle capeweed, milk 350 marshmallow jersey cows, “Anything we and calving in can do to grow broadleaf autumn weeds,” he and spring more grass explained. to supply helps us to The Fonterra. maximise milk Italian They production and ryegrass is were sown with among improve our 130 kg/ha a select gross margin. of DAP and few who We also use a regularly had the lot of urea to topdressed chance to with urea. personally boost pasture Mr evaluate the growth.”

Glennen new diploid expects 7 t/ Italian ha of dry ryegrass matter from the pastures variety before its official release in January this year. over an average season.

The story is different on After growing Crusader nearly half the farm where for many years, Mr Glennen says Knight seems irrigation is available.

Here, on the black and to be the ‘next step’ in grey loam soils, he prefers Italian ryegrass.

One50 perennial ryegrass To compare the two and clover, but also grows he grew three paddocks Avalon with clover and in a row – one Knight, one some Winfred brassicas for Crusader and another Knight. Each was sown as a summer fodder.

“We are converting straight. to One50 and clover “From all reports, it is as quickly as we can, expected to grow an extra so we can maximise 650 kg/ha of dry matter productivity,” Mr Glennen over the year, which is a good increase on our usual said.

“Anything we can do 7 t/ha dry matter from to grow more grass helps Crusader in an average us to maximise milk season,” he said.

So after waiting, waiting production and improve our gross margin,” he said. and more waiting, the “We also use a lot of urea to new pasture seed finally boost pasture growth.” received opening rains in Focusing on pasture June. production is reaping good It proved to be a fast returns for the Glennens. establishing variety.

“Our jerseys provide “Knight was quicker good conversion efficiency out of the ground than with milk solids of 600 kg Crusader, which meant there was more feed at first per cow and up to 25 litres grazing,” Mr Glennen said. of milk per cow in spring and 22 litres per cow in “It was very similar to look at through early spring summer,” he said.

They have the number two jersey herd in the country and a long history on the property. Con’s grandfather settled the dairy farm 90 years ago and Con’s uncles, Con and Jack still live on the farm.

Mr Glennen says the farm is already in better shape than this time last

year, with hay and silage at the ready and the warm weather boosting pasture growth in irrigated areas.

Con and Michelle Glennen from Noorat were pleased to see their first paddock of Knight Italian ryegrass establish quickly (July 2013).

“Surge Italian Ryegrass surpasses all expectations, gives you longer lasting grass, greater persistence: growing more - faster.”

Ultra is a true step up in yield performance, offering consistently high across seasons, years and regions.

CONTACT NOTMAN PASTURE SEEDS FOR THEyields LATEST CULTIVARS AND HIGHEST QUALITY PASTURE Ultra isSEED. high in pasture quality and safe to eat too.

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Real Farm Value and Know How

DAIRY NEWS AUSTRALIA MARCH 2014

18 // PASTURE MANAGEMENT

Specialist ryegrass mix thrives in summer heat COMBINING A number of lead-

ing ryegrass varieties in a special mix, including Heritage Seeds’ long rotation variety Barberia, has worked wonders for pasture growth on Chris Hunter’s Kyabram dairy farm.

“We’ve been working with Heritage Seeds for many years and each year they make us our own ‘Hunter’ mix,” Mr Hunter said.

“We’ve used Barberia as part of that mix for the past decade and we just love it. It grows beautiful feed.”

Mr Hunter and wife Alison are passionate about renovating pastures and have seen great results on their northern district farm.

“We love growing grass and over the years we’ve managed to increase our pasture utilisation figures from around 12 tonnes per hectare to 18 tonnes per hectare,” he said.

In past years the pair has run 600 dairy cows on a 100-hectare irrigation block, which comprises clay and Lemnos loams.

The farm was developed into a fully

irrigated system, primarily producing pasture for consumption by the Hunters’ dairy herd.

They also continue to run stock on an irrigated and dryland out block.

Although some years they cut a small amount of hay, their focus is on grazing the pastures.

“Pastures are such a wonderful thing. They are a great, cheap feed source for cows,” he said.

The Hunters use a Baker Boot renovating machine to over-sow a special mix of ryegrass varieties each season.

Mr Hunter said getting a good strike can be challenging in a pasture sod paddock but the Baker Boot machine helps get seed to soil contact, which is crucial in getting the ryegrass established.

“Every year we try and pick the best ryegrass varieties around, and any paddock that needs a bit of help gets the mix.”

Barberia, a long rotation ryegrass which has the growth of an annual and persistence approaching that of a peren-

nial, has been one of the best ryegrass varieties he has used in the past decade according to Mr Hunter.

He said the highly palatable variety “is vigorous, tillers beautifully and clumps up well”.

Barberia was bred from North African genetics, providing it with good heat and drought tolerance. With adequate water it will produce well in late summer when traditional perennials are struggling to grow through the hotter months.

Barberia has fast establishment and very good early growth, providing excellent winter feed.

In recent years the Hunters have planted Barberia in a mix with other leading Heritage Seeds’ ryegrass varieties including Impact 2.

The ryegrass mix is planted between March and April at a rate of 21-25kg/ha, which ensures they have good pasture growth at different stages of the season.

The Hunters have used Impact 2 for a number of years with great success.

“We aim to get an across the board

Chris Hunter and his Hunter pasture mix, produced by Heritage Seeds.

result and Impact 2 helps us get wonderful winter and spring growth, and summer growth as well,” Mr Hunter said.

Impact 2 is an exceptional ryegrass due to its tiller density and the endophyte NEA2. It provides outstanding persistence, palatability, insect resistance and no staggers or animal per-

formance issues.

The greater even seasonal growth curve gives good feed production throughout the year.

Impact 2 is ideal in temperate high rainfall areas and in irrigation regions for high production under high stocking rates or adverse conditions such as pugging or marginal country.

We know that Impact 2 Perennial Ryegrass is one of our best performers, but we want to hear what you think. Send us your story that describes how Impact 2, Aston, or Shogun has performed on your farm and you could be flying to New Zealand on an all expenses paid study trip*. There are five to be won, so get planting and you could be on your way across the Tasman!

5 TRIPS TO BE WON!

For more information and full competition entry details visit pasturewatch.com.au

*Terms and conditions apply. For entry form and full competition details visit www.pasturewatch.com.au. Entries close midnight 31/8/2014. This competition is a game of skill, not chance. Heritage Seeds, 26 Prosperity Way, Dandenong South Victoria 3175. ABN 43 007 614 379. #NEA2 endophyte provides resistance to some insect pests including black beetle and root aphid. NEA2 does not provide protection against all insect pests and therefore an appropriate Integrated Pest Management strategy should be employed to prevent damage to pastures.

HERS0060DairyNewsHalfPageSpread.indd 1

DAIRY NEWS AUSTRALIA MARCH 2014

PASTURE MANAGEMENT // 19

Give new pasture best start FARMTECH MACHINERY’S new Maxi Aerva-

tor is a multifunctional implement that relieves compaction, aerates, cultivates and renovates all growing conditions.

FarmTech’s Phil Hartley said the Maxi Aervator increases the cultivation aspect of the single gang aerator, allowing for greater water and air penetration, root growth and seed germination.

“Combining the Maxi Aerator with a seeder maximises the benefit of aera-

tion by directly impacting the plant/weed succession of your pasture,” he said.

“By aerating, seeding and harrowing in the one pass, you achieve all of the benefits of aeration, plus you can over-sow your chosen pasture crop in ideal conditions for it to out-compete weed species.

“The trailing harrows act to maximize soil to seed contact to facilitate high percentages of seed fertilisation.”

Mr Hartley said the

Lehner Super Vario 12 volt spreader allows farmers to do this by readily fitting to the framework (fitted in factory prior to delivery) of the Aervator.

The Electronic control box for the SuperVario easily mounts to a tractor cabin with ample cable to the machine and to the 12 volt battery. All necessary attachments are supplied.

Mr Hartley said the aervator can be used separately to aerate, cultivate, renovate and roll; open up the soil to relieve

Farmtech machinery’s new Maxi Aervator.

compaction; prepare seed beds; provide a pathway for water, fertiliser and lime movement; and significantly reduce water runoff, water logging and water erosion of valuable top soil.

Operators can quickly

offset the tine rollers from 0-10 degree setting. This will determine the aggressiveness of aeration, cultivation or over-seeding.

The Lehner Super Vario 12 volt spreader can be used separately to sow grass and pasture seeds for

overseeding grasslands; spread granular fertiliser pellets; quickly sow catchcrops, and spread slug pellets .

The Hackett Concord pasture harrows can be used separately to effectively incorporate

herbicides for best results; break up clods and crusting in cultivated ground; improve moisture penetration and stimulate new growth; and work in fertiliser to both spread and maximise effectiveness.

One50 with AR37 is pROving tO be A tOp peRfORmeR in the vAt

• Late heading, highly productive diploid perennial ryegrass with excellent high quiality late feed making it ideal for grazings, silage and hay • Outstanding summer, autumn and winter production provides reliable year round feed • High rust tolerance ensures productive quality pastures • AR37 endophyte gives you more persistence and pasture production advantages Ph: 03 5335 8055 www.stephenpastureseeds.com.au

Research and advice with on far m results for over 55 years

Impact 2 Perennial Ryegrass, Certified Farm Ready for: 3 Very high yields – Late flowering diploid with excellent growth rates across all seasons for a perennial ryegrass.

3 Persistence – Delivered through a high tiller density combined with NEA2 endophyte for resistance against insect pests#.

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4/03/14 2:50 PM

DAIRY NEWS AUSTRALIA MARCH 2014

AGRIBUSINESS // 21

US approves new Farm Bill Export demand remains strong Dairy NewS aUSTraLia june, 2012

agribusiness // 17

discussions began, and almost a year and a half after the previous, 2008, Bill originally expired, the United States finally has a new Farm Bill – the Agricultural Act of 2014. The one trillion US dollar Act was negotiated at a time of intense budgetary pressure in the US, and the final outcome aims to significantly reduce government spending on agricultural and nutritional support. Approximately 80% of this spending is on nutrition assistance (food stamps.

The provisions concerning agricultural commodities represent a shift away from direct payments (irrespective of prices and yields) and price support, towards providing crop and margin insurance tools.

This reflects a significant change in direction for the US dairy industry – one of Australia’s fastest growing competitors in international markets.

One of the longest standing programs to be abolished is the Dairy Product Price Support Program (DPPSP). This began in 1949 and was the vehicle through which the US Department of Agriculture (USDA) purchased butter, non-fat dry milk (NFDM) and cheddar cheese for storage, resale or donation when market returns fell below fixed intervention prices. Purchases haven’t occurred since 2009, but the end of the program is significant as rather than producing commodities for the government to purchase when prices are low, processors have been encouraged to target the products and specifications international customers require.

The Dairy Export Incentive Program (DEIP) began in 1985 and was an export subsidy program created ‘to offset’ EU export subsidies. It has rarely been activated in recent years as the volume limits on subsidised exports were skewed to NFDM/skim milk powder where the US has been globally competitive, unsubsidised, since 2004.

The producer funded Cooperatives Working Together (CWT) program, though has emerged

in recent years as a subquota increases enjoyed in on US dairy exports – and production response is stitute for DEIP, paying trade(AUD agreements difficult to predict. thus the Australian induscents/litre in March 41c/L) to 28 such as With season 2011/12 only a few incremental change in milk production (year-on-year) Euro cents/litre (AUD 36c/L) in April. weeks from attention is now subsidies onending, butterfat, the Korea-US FTA. The biggest influencers try – is likely to be miniProfit margins are under pressure in the focused on 2012/13 milk prices as farmandersespecially cheddar From a domestic US of US dairy export performal.

Though the provision US, and in NZ Fonterra has announced consider strategies for the coming the final payout for the 2011/12 season In some domestically-focused andyear. processing cheese industry perspective mance are actually outside of subsidised margin has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incorgLobaL impacT exports. immigration reform is the scope of the Act itself. insurance may encourage to NZ$6.45-$6.55/kg MS (AUD$4.96poratingSubsidised lower prices and reduced ‘tier JohN DropperT $5.04). one’ access are undermining farmer exports under the guise seen as important in conThe CWT export subsidy greater milk production Effectively, global dairy markets are confidence and supply stability. For GLOBAL IMPACT rebalancing.

Lower prices will both Shifts in private label contracts and promany farmers in aexport-oriented of CWT reached record taining labour costs on program causes the most than the market requires JOHN DROPPERT slow production growth and stimulate regions, a lower price outlook relative to cessor rationalisation have seen milk volume in 2013 – despite farm, and the Renewable detriment to competitors in times of low prices, ondemand, and as this occurs we will ultithe current season not only adds to the companies adjust their intake requiremately see a price recovery.

Key factors(RFS) proments and pricing meethistoric the changchallengesUS of doing business, but seems in domestic wholesale Fuels Standard in key export markets, farm profit margins often many waystoan to watch on the global scene will be the to contradict the positive medium term ing demands of a highly pressured retail prices being below pregram mandating as well as the head starts differ substantially from outcome for the US indusrate at which milk production overseas blending outlook of Asia-driven dairy demand marketplace. Lower contract prices and slows in response to lower prices, the a lackbut of alternative supplyimpact opportunigrowth. vailing international com- try, of ethanol (sourced from on tariff reductions and national averages, so a its direct Dairy Australia’s indicative outlook ties present challenges in a market with flows. 2012 milk production in the US those in south-east Asia and the Middle impact of the current financial worries modity prices. for southern farm gate milk prices – limited manufacturing capacity. Despite is up around 4% on 2011 for the year to East maintain consistently higher eco- on consumer confidence, the path of published in the recent Dairy 2012: Sit- these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value Also to be abolished uation and Outlook report, is for an tic market is stable, with steady per-cap- data suggests EU-27 milk production increased dairy consumption. How- of the Australian dollar. is the Milk Income Loss Demand for exported dairy prodita dairy consumption and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced opening price range of $4.05-$4.40/kg ucts remains a positive and will conMS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market.

Contract (MILC) proThis situation has seen the scales tinue to grow with the middle class in between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish 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, report the wider market picgram, a considers counter-cyclical ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing program that provided at play; the key theme of the current sit- modity price recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction uation being that of re-balancing in the 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, support (government payglobal supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a dairy supply chain. ments) to producers when In regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perhave subsequently been reduced in capita consumption. Whilst the dairy producing many farmers ern Hemisphere amongst those expand- ing South America. milk pricesdrinking weremilk, low.

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

MILC provided monthly of renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that baland reduced access to ‘tier one’ supply. ditions have further enhanced milk as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. payments to dairy farmers based on a feed adjusted reference price and the prevailing value of a reference (Boston Class I) ASEAN-Australia-New austraLian DairY, fluid milk price.

This will rice and wine exporters to Zealand FTA (AANZFTA). be replaced by the Dairy “Protectionist sentiMalaysia are the biggest ment over agricultural winners inMargin a free trade ProtecProducer goods is rife and growagreement (FTA) signed tionbetween Program ing across the globe, so to provide portion pack the two (DPMPP). counaustraLian FooD this context it is pleas(200-330ml) configuratries last month. company Freedom Foods Under the DPMPP,in ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a seven years new milk processing plant ucts. farmers willof negotiahave the to forge an agreement with Malaysia that has The NSW location will tions, allows a liberalised to cash in on growing option to elect margindealt with some sensiprovide access to the most licensing arrangement demand in Asia. tive agricultural issues for Australian liquid milk The plant, to be built in sustainable and economic insurance coverage not effectively covered by exporters and allows southeast Australia, will be source of milk. Pactum has of between $4 and $8/ 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 products. of the fields expansion in UHT in lian dairy industry and will cwtretail (10-20c/L) with Australian counterpart Craig Emerson after signing the deal.

AANZFTA agreement expand its arrangements It guarantees Aus10 years. income over feed costmost gapof Australian agriwith dairy farmers for tralian wine 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 (margin).

All farmers are 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 eligible forallows theopen margindairy and rice are two sec- laration processes and much remains to be done border’ restrictions.” try. It also plant. Some of its products for Australian milk supply The FTA was signed on for Australia’s farmers to marketing – value-added, sustainable access arrangements from tors where incremental will be sold in Australia. protection program market access improve- improved May 22 in Kuala Lumpur tap into the full potential arrangements for certain and export focused.

2023 for Australian rice The company says

by Australia’s Trade and of the Asian region and commodities. ments have been negotiInitially the plant will all tariffs eliminated given Asian consumandwith can insure between Competiveness MinisThe Malaysian market beyond. ated under the Malaysian produce 250ml and 1L by 2026. ers’ rising incomes and 25-90% of historical milk 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 trade there will grow for qualproduction (determined towards ensuring agricul- Mustapa Mohamed. tural exports – including also particularly imporlion L. The processing and deal will improve interity dairy products from by the highest of 2011, Emerson says Australia ture remains front and being its fourth-largest tant for sectors such national 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, forand Australian agricultural such as Australia, whose 2012 2013, and subin the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disand be more energy-effigoods. milk is well regarded. sequently adjusted based 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 NFF is allow Pactum to meet on average US produc-land which already has “These are all markets and in some cases better. growth at about 5%, lia and SE Asia. Pactum under no illusion of how growing demand for The FTA will guarantee Malaysia forms an impor- with enormous growth a completed FTA with expects site preparation to it hasIf been to differUHT dairy milk, and add tionchallenging growth). the tariff-free entry for 97.6% opportunities and where tant part of the ‘Asian Malaysia in place.” begin in October 2012 and complete this FTA with to capacity for valueence between the All-Milk 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 dentand Duncan Fraser says.averits Sydney factory. Pactum price national 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 capabiliagenumber feed of costs according rise to 99% by 2017. tariffs that restrict trade producers, says Fraser. and proprietary customers. gaps within the lian agricultural exportties at the Sydney plant to the USDA’s monthly Agricultural Prices report 016-017.indd 17 6/06/12 1:41 PM falls below the insured margin for two consecutive months, payments are triggered.

Another new addition under the Act is the Dairy Product Donation Program (DPDP), which authorises the USDA to purchase and immediately donate dairy products to nutritional support proDeLaval liners are designed to milk as fast, grams when margins fall safely and completely as possible, and to reduce below $4/cwt for two teat congestion and injury, milking after milking. consecutive months. In That’s because they’re backed by 100 years of contrast to the previresearch and experience, and built to work ous DPPSP intervention efficiently for 2,500 milkings with minimal loss of program, products will performance. It’s the same high quality you’ll be purchased at prevailalso find in our tubes – the essential partner for DeLaval liners, ensuring a fast, reliable flow of milk. ing market (rather than To find out more, ask your DeLaval dealer, fixed) prices. The maxicall 1800 817 199 or visit delaval.com.au mum period of purchasing will be three months, even if margins remain below $4/cwt.

The new Farm Bill is

corn) in gasoline is often cited as driving up the price of corn – the major livestock feed grain. Surging farmland values have also made it more difficult to enter dairying or expand operations. With some certainty around the Farm Bill itself, some of these drivers may well be thrown into sharper relief.

Imagine getting every last drop Malaysia FTA benefits dairy Freedom from every Foods plant milking targets Asia

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FOUR YEARS after

DAIRY NEWS AUSTRALIA MARCH 2014

22 // MANAGEMENT

On-farm cheese production assures family’s future LIZ RYMILL

DAN AND Krystyna McCaul, with their family, call the Alexand-

rina Cheese Company at Mount Jagged on South Australia’s vibrant Fleurieu Peninsula their “golden dream”.

“This golden dream

of ours has seen four generations of the family, with over 30 years of dairy farming Jersey cows and over 100 years of cheese making become a robust

and resilient operation with a positive future,” says cheese maker and patriarch Dan. The McCaul family’s association with cheese

making began in 1902 in Queensland’s Darling Downs, not long after Dan’s forbears immigrated to Australia from County Cork, Ireland.

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Krystyna and Dan McCaul in their cheese factory.

Krystyna’s father, George Manowski, took over the current farm when he came to Australia from war-torn Poland, later farming it with his wife and Krystyna’s mother, Cathe.

After successfully dairy farming on the 111ha property, Dan and Krystyna, along with their children, were faced with dairy deregulation in the late 1990s and forced to list their options for staying on their farm in the future.

“Other dairy farms in the southern areas were planning for expansion – buying more adjacent land, expanding their milk harvesting systems for larger rotary dairy models, and increasing the number of cows to support the bulk milk market, but this wasn’t an option for the Alexandrina farm as it was already land locked with beautiful vineyards,” their daughter, Rebekah, said.

“The other option was to cease to operate the farm as a dairy altogether and find an alternative source of income. But we felt the family farm and its dairying traditions of nearly 30 years were too important to just simply stop with a sudden closure. The land has been producing Jersey milk since 1973, and we didn’t want to change industries or to find work off farm.”

So the McCauls decided to move forward with a paddock-to-plate marketing venture and a return to Dan’s family roots in cheese making.

“Dad said he wanted to make hard style cheese

WHO:

McCaul family WHERE:

Mount Jagged WHAT:

Cheese making

like his grandfather and father used to make, and he identified that there could be a place in the local market for such products,” Rebekah said.

“So, it was settled at the family kitchen table and the market research began with family holidays to Victoria, Tasmania and finally to Queensland to attend a Department of Primary Industries Cheese Making course.

“Plans went ahead with our local council Alexandrina, then planners, architects, builders, concreters, and teams of workers for the project to commence.

Building took it’s time but it was worth the wait as we’re now equipped with an export quality cheese factory on the family farm.”

Today, the farm milks around 89 Jersey cows producing an average 20 litres per day. Cows are run on grass, milled barley, silage and hay with calving occurring once a year in either Autumn or Spring, allowing them to enter the dairy for a lactation lasting about 300 days.

TO PAGE 26

DAIRY NEWS AUSTRALIA MARCH 2014

ANIMAL HEALTH // 23

How many abortions are too many for your herd? never calve. These cows factory field staff before end up being culled as they putting the cow’s milk in the autumn calving cows are empty and dry and it is the vat. are already in the dry rarely economic to return One problem I have paddock, or about to go them to the herd after a seen just lately is the out. A farmer asked me very prolonged dry period. what level of losses should serious consequences of The use of technologies Early Embryonic Death you be worried about that allow very early (EED) following really through cows aborting? pregnancy diagnosis like early pregnancy testing.

That is a really good the blood/milk pregnancy It is critical to perform question. tests and ultrasound, a follow up pregnancy Every cow that aborts, form an important part of test on cows pregnancy no matter where she is in the management system tested prior to 7-8 weeks her gestation, represents on some farms, but as a of gestation, and is a loss from the dairy. It veterinarian, it is pointless recommended on all is uncanny how often it setting out to perform an other cows to confirm occurs a few days after “abortion investigation” they are still pregnant. A drying off, and if this if all that I am happens, there My usual dealing with is is the significant recommendation is pregnancy loss issue of antibiotic as part of the dry cow, and milk to investigate any EED withholding. episode where loss of “normal” phenomenon.

As a general rule, So my usual the milk withholding pregnancies exceeds 2% of cows determined recommendation period on the box is is to investigate the one you should pregnant after eight as significant, any follow. If it is 49 days weeks of gestation. episode where plus eight milkings, the loss of pregnancies very significant number then I would suggest that exceeds 2% of cows (often in the range of as the starting point for determined pregnant by 10-12%) of cows pregnant withholding should the a competent pregnancy at 28-30 days will lose cow abort. This is why it examiner tested after eight that pregnancy prior to is so important to keep term. The percentage falls weeks of gestation. I have accurate records of the investigated a number to around 2% or less of date that dry cow was of episodes where the pregnancies that make it instilled in the udder. A accuracy of the pregnancy past 56 days of gestation. cow who aborts just one detection may have been The Early Embryonic week after she is dried off the primary problem, and Deaths can be very much needs to have another 42 others where the record higher if diseases like days plus eight milkings keeping was so poor Pestivirus (BVDV) are as her recommended that no real conclusions present and actively withholding period. could be determined. spreading in a herd with Often, I suggest having a That’s why it is best to low immunity levels. The sample tested after every use a NCPD accredited biggest problem with few weeks to see if the EED’s is the cows are often pregnancy tester, and to antibiotic level has fallen ensure your results are below the acceptable level, managed as pregnant accurately recorded, and but it is best to talk to your and are dried off but then

IN MY PART of the world,

ANIMAL HEALTH ROB BONANNO that you have adequate, permanent, easily read identification of the herd members to allow accurate records to be made.

Another general rule is if you are “lucky” enough to find a freshly aborted fetus and membranes that are not in an advanced state of decay or damaged by predation, then have the fetus examined by your veterinarian. Even if you have not reached the 2%

threshold of losses, quality specimens are often hard to come across, and every opportunity to make a diagnosis is worthwhile.

The cost of having the fetus necropsied (post mortemed) and the samples analysed at the lab can run into the hundreds of dollars, and so people are sometimes reluctant to follow through with testing, but the information gained from a post mortem on an aborted fetus can be very valuable in considering preventative strategies for the rest of the herd.

Sometimes however, despite the best quality samples and thorough investigation, no cause can be confirmed.

If you decide not to submit the fetus and/or

membranes, they should be disposed of by burning or deep burial to prevent the spread of potentially contagious diseases. One of the most common causes of abortion that we see is Neosporosis caused by a small parasite spread by dogs, cats and foxes which is why it is critical, whenever possible to prevent predation/ consumption of aborted materials.

Another critically important thing to remember with aborted materials is many of the causes of bovine abortion are known as Zoonotic Disease. They are diseases which can infect humans and many causes of abortion can make us very sick. Having had Leptospirosis myself

IDeNTIfy

a couple of years ago, I can attest to the debilitating and serious nature of Zoonotic disease.

Whenever possible, wear full length gloves, eye protection and protective clothing, and wash your hands and clothes thoroughly before eating or drinking.

For advice on investigating the causes and prevention of abortion, and for strategies to develop a protocol for handling/ collecting material from aborted cattle, it is always best to talk to your registered, experienced cattle veterinarian.

• Rob Bonnano is a former president of the Australian Cattle Veterinarians Association and a director of the Shepparton Vet Clinic.

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DAIRY NEWS AUSTRALIA MARCH 2014

24 // ANIMAL HEALTH

Calf separation good for future production SEPARATING CALVES and making

sure they are comfortable will result in better producers and less deaths, a calf rearing expo at the Terang Co-op has been told.

Scott Newcomen, CRT sales manager general products, Bernd Kleiner, Terang Co-op rural store manager, Trevor Dowd and Brendan Johnson, DASCO national calf rearing manager.

International technical sales manager for Calf-Tel, Bernd Kleiner, told the expo that a calf death rate of 15% in the first eight weeks could be reduced to 5% or less if calves

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

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were kept separate.

“If you have one sick calf, you don’t want a whole row of sick calves,” he said.

The expo on good calf housing practices last month in the Co-op CRT Rural Store was hosted by the Terang Co-op and Dasco and attracted about 70 local farmers.

The expo covered indoor versus outdoor calf rearing, housing options and calf raising fundamentals.

Mr Kleiner said farmers need to make sure calves are comfortable to promote faster weight growth and better health. “They need their energy for growth, not fighting environmental stresses,” he said.

“They need easy access to feed and water and an ability to find their own microclimate, which is difficult to find in a group in a building.”

Calves can thrive in hot or cold climates if they are housed properly.

Mr Kleiner said CalfTel thermo-formed hutches were successful in climates as diverse as Wisconsin’s snowy fields and Dubai’s heat.

“The genetics of cows is very close across the world; it is farmers who are different in how they do things,” he added.

“An individual hutch will allow each calf to seek its ideal microenvironment, either protected in the hutch or in sunny spot in the pen.”

Mr Kleiner described separating calves as one of the most important factors in preventing illness, reducing death rates and promoting good health.

“It is best to avoid calf-to-calf contact as it spreads disease,” he said.

“Calves are born with an immature immune system and must be separated to prevent sickness. You should do everything possible to have a perfect situation

in the first 10 weeks.”

Maintaining a healthy bio-security surrounding will lessen the risk of illness.

Ventilation is also important. “Mother nature will do it for us outdoors but in a shed you need wide openings and in a hutch you need adjustable rear venting and ridge top venting to provide air flow.”

Hutches should be separated a sufficient distance apart, include a protected area for feed and farmers should aim for a calf rearing process that is easy, affordable and profitable.

“We calculate that with the number of calves not lost by using Calf-Tel hutches, you could pay back the product cost within a year or two,” Mr Kleiner said.

Hutches should be durable and opaque to prevent the penetration of UV rays and avoid a ‘greenhouse effect’.

Mr Kleiner said there were pros and cons for either indoor or outdoor calf-raising.

“Indoors is more accessible, avoids harsh weather and improves observation and worker conditions, but there is greater cost in the building and ventilation and greater biosecurity risk from airborne pathogens when calves are together,” he said.

“Outdoors is a healthier environment, has a lower level of pathogens, is more comfortable for calves and gives them room to exercise more and develop their leg strength, but they are also more exposed to the elements.”

The expo was one of several held across south-west Victoria in late February.

The hutches and other Dasco products are available from the Terang Co-op CRT Rural Store.

DAIRY NEWS AUSTRALIA MARCH 2014

ANIMAL HEALTH // 25

Pestivirus could have destroyed farm NULLAWARRE DAIRY

farmers Tim and Bronwyn Lenehan have survived a costly bovine pestivirus (BVDV) scare thanks to quick action in identifying and eradicating the virus.

Mr Lenehan admits that the virus could have destroyed the farm.

“If we had seasonal instead of split calving, it would have been disastrous,” he said.

As it was, he estimates the outbreak cost $250,000 and the effects are still being felt on the farm today, despite the quick response and his farm’s excellent history of milk testing and record keeping.

The Lenehans hosted a Warrnambool Veterinary Clinic FarmChat forum last month to tell their story as a warning to other farmers and to encourage them to take samples and test for the virus.

BVDV is very common on dairy farms, but rarely causes obvious production losses. However, when introduced into a naive herd it can cause greatly reduced conception rates, abortion and deformed calves.

The problem was detected on the Lenehan farm in 2012 during pregnancy testing with Dr Jon Kelly from the Warrnambool Veterinary Clinic. Dr Kelly said the high empty rate was unusual for the farm which had no previous exposure to BVDV. “Nothing had changed from previous joinings but the conception rate was only 28%, so we took a bulk milk sample for testing,” Dr Kelly said.

The bulk milk tank antibody testing was carried out by Dr Enoch Bergman at Swans Veterinary Services in Western Australia to identify if there were Persistently Infected (PI) cows in the herd.

“We suspected the problem was with the first calving heifers but we had to prove it. So they were segregated, milked last in the herd and a bulk milk test taken before and after their introduction,” Dr Kelly said.

“It was an easy way to rule out the other 400 cows in the herd, which saves ear notching every animal.”

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Dr Jon Kelly, Tim Lenehan, Dr Enoch Bergman, and Bronwyn Lenehan.

Dr Kelly said there was only a small window of time to identify and eradicate the virus before the next joining period and the farm was lucky it took prompt action.

“Every time you do pregnancy tests you should get milk samples done and test them to find out if there are antibodies,” he said. “The good news is that like Tim and Bronwyn, you can do something about it and get back on track.

“We were able to identify and eradicate it and make sure it won’t happen again.”

As a result of the virus, the farm suffered low conception rates, spread out calving pattern, reduced milk supply, less heifer calves born and more culled, and has since found it harder to get cows in calf.

“We had about 120 cows not in calf,” Mr Lenehan said. “The conception rate was pretty disastrous. We usually have enough for herd replacement and to sell for export but we didn’t in 2012 which was a tough year all round.

“Luckily we have split calving so not all the herd was exposed, but the effects take time and we’re still feeling it,” Mr Lenehan said.

“We were lucky we were able to identify where it got into our herd. It was critical that we took samples that helped us to get on top of it so quickly.”

Mr Lenehan and Dr Kelly believe the pestivirus was most likely introduced when leased bulls were brought onto the property.

The farm now operates as a closed herd and any bulls brought in must be ear-notched.

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26 // BREEDING MANAGEMENT

Long life means more profit SOUTH GIPPSLAND

farmer Lucas Licciardello would like to see more weight given to longevity in Australia’s national breeding objective.

And he wants to make sure his views are counted.

As well as attending Australia’s Longest Farm Walk in March, Mr Licciardello also filled in the survey. And he is urging his fellow dairy farmers to do the same.

“It is easy to complain about the system but this review is a great opportunity to have our views heard and to have a direct influence on the future breeding directions for Australian dairy cattle.

I’m going to make the most of it; and so should anyone who has a view

about the current system,” he said.

Mr Licciardello and his wife, Kylie, dairy at Marden in South Gippsland, milking 260 cows, mostly Holsteins.

In general, Lucas is pretty happy with the current national breeding which is expressed as the Australian Profit Ranking (APR).

“There are lots of different reasons why people choose to dairy farm, but at the end of the day we are all operating a business, so it makes sense that our national breeding objective is focused on profit,” he said.

But he would like to see some refinements.

“I would like to see greater weighting given

to longevity in the APR. The most profitable cows in our herd are those that produce well and last many years in the herd – that’s the sort of cow I want to breed,” he said.

Mr Licciardello’s breeding objective for his herd does not align perfectly with the APR, but he’s not concerned about that.

Although he and Kylie operate a commercial herd first and foremost, most of their cows are registered under the Prefix Long Meadows Holsteins and he confesses to being ‘a bit’ passionate about breeding.

Mr Licciardello looks for bulls that are positive for fat and protein that rate well for feet and legs, mammary system, semen

fertility and mastitis resistance.

“Our priorities are a little different from the APR but it’s still a useful tool. When selecting sires to use over the herd, I start by looking at type traits but I always consider the APR before making a final decision.

“All the sires we use are in the top 100 for APR, so that ensures we are continuously improving our herd’s genetic merit for profit.

“But when choosing specific bulls, I want to breed cows that can carry a bit more condition through our winter.

“That way they get back in calf sooner and last in the herd for many years,” he said.

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• To have your say, fill in the on-line survey at www.adhis. com.au

Cheese business built on Jerseys FROM PAGE 22

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Whether you consider yourself a profit-focussed breeder or a breeding enthusiast like Mr Licciardello, the national breeding objective review team wants to hear from you.

If you missed a local farm walk during March, you can have your views heard by filling in the on-line survey which is open until the end of April.

The survey has been designed to capture the value that farmers place on traits that until now have been difficult to measure, or put an economic value on, for example fertility.

Michelle Axford from the Australian Dairy Herd Improvement Scheme said not all farmers had the same breeding objectives.

“Individual farmers will prioritise traits differently.

The review is about developing an objective that most are comfortable

Alexandrina Cheese Company uses a combination of artificial insemination and paddock-serving bulls in their mating program, with the best Jersey genetics sourced from across Australia and abroad, including from Canada and America.

The dairy supplies milk to the exportquality factory on the farm, built by the family in 2000 and opened in 2001.

Alexandrina Cheese provides a range of products, from short-shelf everyday goods to specialist requests. It currently produces around 8000 bottles of milk per month and sells retail and wholesale products throughout South Australia.

“When we first began making valueadded products, we went to the top 20 chefs in our region and showcased what we were making. From there, we started building relationships and that became the key – in fact, we are still working with those early customers today,” Rebekah said.

“Since then, we have seen exciting growth in the wholesale sector and we’re finding that resellers, fruiterers, grocers and micro-supermarkets are able to take on more niche-gourmet product lines – and their customers are more knowledgeable about the provenance of their foods and like to source locally made products.”

Indeed the proof is in the pudding, with Alexandrina Cheese Company taking out the prestigious Champion Milk category at the 2014 Austra-

lian Grand Dairy Awards with their Full Cream Pure Jersey Milk. The company was also recognised in 2012 for the Alexandrina Vintage Cheddar, which received a gold medal at the World Jersey Cheese Awards.

Reflecting on the goal of developing a sustainable business that will carry through for future generations, Rebekah said the family have identified some of their keys to success, including capitalising on their existing Jersey dairy farm and traditional family cheese making skills to value add.

“As the milk is sourced from our herd of Jersey cows, we are a true speciality farmhouse cheese-maker, we don’t source any other milk from elsewhere, we use only our own milk from our Jersey herd - this is unique in the market place in South Australia.

“This approach allows us to make a product that is truly regional, from the Fleurieu Peninsula, identifiably Alexandrina, we pride ourselves on making traditional styles of hard cheese, our signature is our cloth bound rinded Cheddar from our grass fed, pure Jersey milk.”

By controlling the product from paddock to plate, the family believes they can also maintain quality and consistency.

“We have got almost complete control along the value chain; from what goes in our cows’ mouths to their temperament in the dairy, how they milk and if they are healthy - and that certainly impacts on production,” Rebekah said.

DAIRY NEWS AUSTRALIA MARCH 2014

BREEDING MANAGEMENT // 27

Walk the talk THE REGION’S dairy

Ahlem Golda Suzette #38331-ET, VG 83

Tasmanian farmer Rob Frampton opened the gates of his Gawler farm.

submissions.

“We are open to all ideas and we want to hear from as broad a cross section of the industry as possible. We won’t shy away from discussion about the economic values of new traits or tricky traits.”

Mr Drury said that as a herd was probably the second biggest asset for most dairy businesses, it made sense to have a say in any We try and breed changes that might for fertility and be made to the cows that will National Breeding Objective. produce more Sixth-generaoff grass. It is tion farmer Rob about trying Frampton curto encourage rently runs a herd of 450 crossbred industry to move cows, and said forward in a way the day offered a to produce a more chance for farmers efficient cow. to tell the people who were breeding the bulls exactly what they is to have a conversation were looking for. with farmers to discover The Framptons opened the traits that are importheir farmgates earlier this tant to the everyday busimonth. ness of dairy farming.

“I think it is good in the “Our goal is for the sense it gives the farmers National Breeding Objecthe chance to give input tive to be a true reflection to the dairy cattle breedof the overall breeding ers that are paving the way direction for the country, for where the cows should from which individuals be,” he said. can pick bulls that meet “We try and breed for their own breeding objecfertility and cows that will tive. produce more off grass.” It “We don’t expect is about trying to encoureveryone’s breeding programs to be the same but it age industry to move foris really important that we ward in a way to produce a more efficient cow rather get the big priorities right then a high producing cow, – that’s what the review that’s where we would like process is all about,” he to head. said.

“That is just my perIn addition to the farm sonal opinion and an walks, the review process opportunity like this gives will also involve a large everyone a chance to have scale farmer survey, contheir say. sultation with industry as “It is a good chance well as scientific review, to show people what we technical analysis and the opportunity for interested do and also receive comments on our herd.” parties to provide written

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farmers are being encouraged to join Australia’s Longest Farm Walk – a series of events to give farmers a direct say about the National Breeding Objective, which is expressed as the Australian Profit Ranking (APR).

Adrian Drury, Chair, Australian Dairy Herd Improvement Scheme (ADHIS) said the farm walks were running across all dairying regions until the end of March.

To see Farm Walks in your area, visit www.adhis. com.au “Each event will involve visiting dairy farms, looking at cows and discussing our breeding objectives and the type of cow that would best meet the needs of Australian dairy farmers into the future.” Mr Drury said.

“Love it or hate it – everyone has an opinion about the APR. The idea

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DAIRY NEWS AUSTRALIA MARCH 2014

28 //  FARM WORLD PREVIEW

Machinery put through paces IT’S NOT often that visitors to an agricultural field day can see a large range of machinery and equipment being demonstrated in true working conditions.

But that’s on offer at the 2014 Farm World Field Days at Lardner Park, Warragul, from Thursday to Sunday, March 27-30.

Australian Dairy news.pdf

A feature of Farm World has always been the extensive demonstration program, both on individual exhibitor sites and at the Commonwealth Bank demonstration site.

John Deere dealers will conduct ‘try before you buy’ demonstrations a range2:29:29 of machines 1on 2/12/2014 PM

including tractors and the well-known Gator utility vehicles at the Commonwealth Bank Demonstration area, and show off the John Deere Agricultural Management Solution with a 6170R tractor with GPS auto steer.

Forage harvesters will also be put through their

paces in the same area, featuring the Claas Jaguar 850 Series and the JF 3-point-linkage machine.

At demonstrations on exhibitor sites throughout the field day complex, visitors will be able to see GEA Farm Technologies’ MIone automatic milking system, the Menzi Muck

A91 all-terrain excavator, a Lucas Mill portable sawmill, the Rehabilitator deep tillage cultivator from Fix Engineering, as well as the Hatzenbichler Vertikator pasture renovator and broadcast seeder.

In addition, there will be demonstrations of electric remote-control

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hose reel, plasma cutting machines and, of course, electric fencing demonstrations.

Demonstrations for families and children will include hand milking a Jersey cow to show how

milking cows was done ‘in the old days’, plus separating cream from milk.

Information regarding the demonstration program and admission prices is available at www.lardnerpark.com.au.

Health and wellbeing focus at Lardner Park

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RURAL PEOPLE have shorter life expectancies of up to two years in comparison with city counterparts, and farming men, women and agricultural workers have unique health issues, according to the National Centre for Farmer Health. “These issues include a higher rate of suicide, respiratory disease, cardiovascular diseases, lower cancer survival and very high rates of injury and accidental death. Farm men and women are also 1.5 times more likely to experience chronic body pain and over twothirds have a measurable hearing loss.�

Make better decisions on your health with the Farm World 2014 theme ‘Health and Wellbeing’. The theme focuses on initiatives that rural people can take to improve their health levels and quality of life.

The 2014 Farm World Field Days will take place at Lardner Park, Warragul, from Thursday 27th to Sunday 30th March. Into its 52nd continuous running, Farm World continues to be the annual centre for a huge range of products and services for farmers and rural people.

The Health and Wellbeing theme is sponsored by Gippsland Medicare Local, who say to farmers, “You wouldn’t ignore the health of your stock or land, so why would you ignore your own health?�

They will be encouraging farmers to look after their health needs at Farm World through a series of free health checks which will be available for visitors.

These include ‘Pitstop’ men’s health checks for bowel cancer, skin, testicular and prostate cancer, alcohol consumption, mental health and smoking. They will be conducted in the Commonwealth Bank Room at the Exhibition Centre.

In addition, free hearing tests will be offered by the Wimmera Hearing Society, and flu vaccinations will also be available.

Diabetes is at the forefront of health priorities in Australia, so continuous free diabetes and cardiovascular checks will be undertaken by the Royal Flying Doctor Service in conjunction with the Baker IDI Heart and Diabetes Institute in the BP Ultimate Pavilion. “The way of the future is the electronic health record (eHealth).� That’s the message Gippsland Medicare Local want visitors to consider when they are looking for the newest and greatest in technology at Farm World. “They will be able to enjoy a free coffee while registering for an electronic health record to enable safe and reliable access to their health records.�

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DAIRY NEWS AUSTRALIA MARCH 2014

MACHINERY & PRODUCTS // 31

Air seeder hits the spot GLENN LOGAN from Ecklin in Victoria’s Western District, on the road between Terang and Timboon, has been around the agricultural contracting business for more than 35 years.

At 14 he was driving the tractor for his father when they were making small bales.

He now runs Logan Contracting with about 20 employees, probably one of the larger contractors in the Western District.

Mr Logan said 70% of his customers are dairy farmers and the business looks after everything from hay and silage, sowing and cultivation to effluent spreading and hay sales and cartage.

“We’ll go anywhere within reason for farming contracting, including hay in the Mallee.”

Mr Logan’s family also milk 1150 cows on two

WORKING CLOTHES CHRIS DINGLE local dairies.

A year or so ago Mr Logan was looking for a particular specification of an air seeder.

“We’ve always had Duncan machines before, with the air seeder mounted on power harrows.

“We talked to a few manufacturers with the idea that we should be able to get an air seeder on a direct drill set-up. We wanted a wider machine with narrow transport width.”

He decided on a Duncan Ag Custom

AS6000 air seeder with direct drill set up and about 12 months ago bought the machine through Darren Wright at Swayn & McCabe in Warrnambool.

Duncan Ag is based in New Zealand and has a reputation for innovation, strength and quality of farm machinery manufacture for the past 75 years.

“We looked at another machine and the Duncan appeared to be more compact,” says Mr Logan.

It has a 6m working width with 20 run scalloped discs at 150mm spacings and a large split hopper for both seed and fertiliser with a 2000 litre capacity in each box. Mr Logan said he appreciated the operation simplicity of the Duncan.

“The thing that we really like with this machine is the ease of calibration; it has its own

radar to give you ground speed, so you don’t need to use the one in the tractor. It has very good turning ability because of the hitch, and it folds to 3.1m transport width.

“We have had a fair bit of assistance direct from the Duncan people in getting it set up the way we want it.”

The variable sowing rate is controlled from the cab and downwards pressure on the folding wings is hydraulically controlled.

They operate the airseeder with a 180hp John Deere 7530, with auto steer, which Glenn says is a “good size for this machine”. It is one of the 14 John Deere tractors in the business - all of them from Windmill Ag in Terang.

Mr Logan said the Duncan had worked at least a couple of thousand hectares in the last season

and in the past few weeks it has been sowing pasture and sorghum. “We do some seed and fertiliser work for some farmers who require it, but the majority is just seeding.”

Autumn is the busiest time for the air seeder and Mr Logan said last spring was much too wet for work. And it was very, very dry last autumn.

“It seems to be better this year – with a long spring and higher milk

prices, things are looking up.”

There is a comprehensive assortment of machinery in the business including three Welger round balers, three Krone HDP large square balers with choppers, two Krone silage wagons and a Krone triple mower as well as Krone and Schinkel rakes. Two Tubeline ‘sausage wrappers’ handle the silage film, plus a 5m Kuhn power harrow with air-

seeders, sowing discs and press wheels. A Marshall fertiliser spreader looks after the demand for that side of the business.

For the broadacre work that comes along, they have a 10m Gason air seeder and Grizzly offsets for cropping.

Logan Contracting is an extremely comprehensive business and Mr Logan says they are always looking for new opportunities.

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Western District contractor Glenn Logan with his new Duncan Ag Custom AS6000 air seeder with direct drill set up.

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DAIRY NEWS AUSTRALIA MARCH 2014

32 // MACHINERY & PRODUCTS

New machine makes composting easier

Total solutions for dairying

A NEW composter turner currently being trialled by Seymour Rural Equipment is set to be the ideal machine for farmers to create compost on their own farms.

Seymour Rural Equipment is the company behind the Seymour Composter 4000 TravelA which was released at the 2011 Elmore Field Days and won the Tractor & Machinery Association’s Machine of the Year Award. That machine has proved extremely popular for contractors, particularly in dairy farming areas.

The new machine is designed to be suitable for smaller tractors from 75 horsepower up, and can achieve 1000 cubic metres/hour turning the compost on existing windrows, depending on density and content of the waste.

The Seymour composter will turn what on most farms has traditionally been waste material into organically rich compost to help get organic matter back into the soil.

The machine passes through the row mixing, aerating and conditioning the product. It is processed it into a uniform blend by adding moisture, and then turned again when the compost heats up to around 60C. Up to five turns is usual before it is ready to be applied to pasture or worked ground.

Managing director of Seymour Rural Equipment, Colin Stray, said the target was to build a machine suitable for smaller tractors already in use on the farm. “There is no need for a new dedicated tractor to handle it as access to high horsepower is not required.

“The new design has eliminated the high PTO angle and input drive of the larger machine.”

The PTO shaft connects to a

Milfos has a complete range of highly efficient milking systems. Each system is designed to suit a number of stalling packages so you have the flexibility to build the best solution to suit your needs.

Ease your workload and increase efficiency when you upgrade with WestfaliaSurge automation packages.

Labour-saving and programmable features make milking easier.

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

The new Seymour Composter shows its effectiveness in the Seymour Rural composting paddock.

The prototype is being put right angle gearbox which in turn transmits the power to two driver through its paces at Seymour and driven tyred wheels, with the Rural’s composting site and has so far performed latter running 200 hours onthe rotor shaft. The composter is site.

“The drive designed for farm It will work from the to farm transport on 3m wide rows wheels and and the height tyres is formed on narrow lanes. of the compost by slightly The rotor and tyne can be higher compressing assembly is lifted than that hanthe two tyres vertically through dled by the ‘origto increase the inal’ Composter contact area a hydraulic ram for 4000 TravelA for positive transport and is machine. drive and the under 4m in height.

The frame is more ‘fluid’ drive absorbs the shock load back hot-dip galvanised for longer life and the tynes are mounted on a to the gearbox.

“The composter is economical 170mm hollow rotor shaft made to run, as long as the tractor has a from extra strong seamless tube creeper gear to maintain .5 km/h up with 15mm wall thickness, so it will handle the toughest conditions to 1km/h,” Mr Stray said.

with reliability. The rotor shaft rotates at half the tractor PTO rpm.

“The hood over the rotor and most parts of the frame are fabricated by rolling heavy duty steel tube, instead of welding in sections, to maintain the highest structural integrity,” Mr Stray said.

The composter is designed for farm to farm transport on narrow lanes. The rotor and tyne assembly is lifted vertically through a hydraulic ram for transport and is under 4m in height.

A steel ballast on the left hand side of the frame balances the turner when it is extended over the row.

The new composter will be demonstrated at the Farm World Field Days this month.

Tel. Seymour Rural Equipment (03) 5792 1100.

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FOR MORE INFORMATION CALL 1800 789 100 FOR THE NAME OF YOUR NEAREST DEALER. Email info.auft@gea.com www.gea-farmtechnologies.com.au

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DAIRY NEWS AUSTRALIA MARCH 2014

MACHINERY & PRODUCTS // 33

Automated milking relieves stress THE DETERMINATION to relieve stress

for the owners of a West Gippsland dairy farm has led to the installation of the first WestfaliaSurge MIone Multibox automated milking system in Australia, which will dramatically reduce the need for labour in the shed.

Trevor and Anne-Marie Mills farm at Drouin South has been milking 120 cows on a 15 swing-over herringbone with, as Mr Mills says, “a hotch-potch of gear”.

The decision was made last year to change over to automated milking; “There were lots of reasons, we felt that it was crunch time with milking in the old dairy, things were getting harder and harder.”

He did some research on the internet and liked the GEA Farm Technologies’ idea of cows on one side and the operator on the other with the WestfaliaSurge system, “that way you have a clean side and a dirty side.”

The WestfaliaSurge MIone Multibox is a true milking centre, with all features and equipment concentrated in one spot. It is individually tailored to each farm’s needs by easily incorporating more modules, from a single milking box up to a maximum of five milking boxes, expanding along with the herd.

The Mills have ordered a three-box unit. One robotic arm operates all the boxes.

Mr Mills said he thought the teat attachment time was attractive. Teat location and attachment of the cluster is handled by 3D camera technology which is regarded as the best teat sensing method on the market. The robot arm, on which the teat positioning camera is located, moves quickly to the milking stall to apply the clusters. The arm picks up the milking rack and teat-cups, moves it under the cow and places the cups onto the teats.

The camera is continuously watching the udder and the cups and monitoring the movement in real

time. Therefore the MIone does not need reference data to attach the cups and acts immediately, also reacting quickly to changing circumstances, such as the cow moving or kicking.

The arm moves immediately on to the next stall to attach to the next cow and does not remain under the cow during milking. The camera is mounted in a position protected against dirt and possible kicks from the cows.

On the WestfaliaSurge MIone, many functions are incorporated into the one operation. The stainless steel and titanium milk rack is operated by compressed air and looks after attachment, cleaning and drying, pre-milking, individual stimulation of the udder and the milking. Teat cleaning happens inside the cups. Every teat is cleaned for 15 seconds immediately after attachment of the cup. The first milk is separated and discarded. Trevor will be able to adjust the time for cleaning and pre-milking.

Trevor said that building the new shed to house the automated milking system has not presented too many issues. “The area has sub-standard power supply, but GEA have adapted their system to operate with single phase power. We only needed to make some minor modifications,” he explained. “We had a farm plan sent to GEA in Germany and they came up with a basic layout for the shed structure, with drafting gates.

“There will be two vats – the main WestfaliaSurge 6000 litre TCool vat and a 500 litre buffer tank to take the milk while the tanker is picking up from the main one. That is easy for the driver to separate from the robot.”

Their property covers 122ha and Mr Mills likes the idea of future expansion to five stalls, still with the one robot arm; “The other brands didn’t appear to be as flexible. We would like to get up to 180 cows

with the robot, that’s not a bad figure for this acreage– the three stalls would mean 60 cows per stall throughput.”

Gippsland farmer Trevor Mills, Drouin South, in front of his old milking shed which is about to be replaced by the first installation of a WestfaliaSurge MIone robotic milker in Australia.

The WestfaliaSurge MIone two stall Multibox will be on the GEA Farm Technologies’ site B4-5 at Farm World.

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DAIRY NEWS AUSTRALIA MARCH 2014

34 // MACHINERY & PRODUCTS

Up to speed quickly with Fendt GARETH GILLATT

A NEW Fendt tractor is allowing a Northland, New Zealand, farmer to work faster and easier, and its technology is not ‘doing his head in’.

Nick Vinac, his partner Stephanie, his father Velko

and uncle Boris Vinac milk 220 cows on 91ha near Kaitaia.

With a heavy cropping regime of a winter crop and summer crop, and a soil structure of peat and marine clay, Mr Vinac says the operation needs to replace tractors after 3000 hours for best resale value

and less repairs and maintenance.

Mr Vinac said he was offered a Fendt 512, a tractor in a range not seen before in New Zealand or Australia. One in the 125165hp Fendt 500 range launched at the Northland Field Days, Vinac’s tractor was the first sold in

Australasia.

Mr Vinac decided to try Fendt because of its reputation for hardiness and performance.

And though he had heard the ‘learning curve’ was prohibitive in driving Fendt tractors, he was pleasantly surprised. “I heard Fendt was hard to

get used to – people saying it was full of buttons.” But it turned out to be easy, he said.

With all controls mounted in the right armrest and a 7 inch Vario terminal, Mr Vinac says cultivation work is easy.

“Headland management with the touch screen is

Northland farmer Nick Vinac is impressed with his new Fendt machine.

straightforward.”

The farm grows two crops a year on marine clay and peat, so a cultivation-capable tractor is crucial, Mr Vinac said.

Year-round 8-15ha is worked up, with 15ha of maize or 8-10ha turnips and chicory as a summer crop. A 3m Kuhn power harrows and 3m Celli Rotospike are used to cul-

The MIone is here to change your working life

tivate the soil. The tractor’s extra power has been handy working up paddocks for a winter turnip crop.

The Fendt’s front loader, built specifically for the 500 series, has proven easy to use, Mr Vinac said. It has valves and dampers built into the loader frame. www.fendt.com.au

Aussie Pumps focus on dairy

The WestfaliaSurge MIone robotic milker offers flexible, smart solutions for Australian farmers, reducing labour and enabling better focus on pastures and herd management.

See the two stall MIone milker in action at Farm World Field Days.

Flexibility

Everything in one step

One system can have up to five boxes, with one robot arm and one supply unit, for a milking centre in the shed with all the equipment in one place for more efficiency.

The milk box looks after all functions of attachment, cleaning, drying, pre-milking, stimulation and milking.

Optimal positioning, efficient operation.

Faster cups-on State of the art 3D-direct camera locates teats and connects cups in much less time than other systems. The camera continually watches the whole udder and the cups and monitors them in real time, reacting quickly to moving cows.

Thorough cleaning Teats are cleaned within the cups, cleaning and pre-milking at the same time, stimulation and start of milking.

No wasted time and no cross-contamination.

FOR MORE INFORMATION CALL 1800 789 100 FOR THE NAME OF YOUR NEAREST DEALER. Email info.auft@gea.com www.gea-farmtechnologies.com.au

See more of the future at Farm World

GE11511

PART OF THE GEA TOTAL SOLUTION

AUSSIE PUMPS has developed a heavy duty steam cleaner that cleans and sanitises dairies without chemicals.

The Aussie Admiral steam cleaner operates at temperatures of up to 130°C. This high temperature cleaning prevents a biofilm of bacteria forming on steel, rubber and plastic surfaces.

High temperature steam cleaning reduces spoilage enzymes and prolongs the life of dairy products.

A reduction in microbial contamination assists in mastitis control.

The Aussie Admiral can also be used to wash down concrete surfaces in parlours, sheds and yards to reduce cross contamination. Tanks and tankers can be cleaned and sanitised.

High pressure steam dissolves grease and muck, so the steamer can be used for pre-service cleaning of tractors and plant and to minimise the risk of weed contamination between paddocks.

The Aussie Admiral features ergonomic dials to provide infinitely variable temperature control from cold to 130°C steam. This steam function sanitises and shifts heavy grease and dirt efficiently, economically and safely.

The new machines feature a heavy duty stainless steel cover that is hygienic and impact resistant. The cover is mounted on a robust, four wheeled, steel chassis with integrated front mounted bumper.

The Italian heavy duty triplex pump runs at 1450 rpm for long continuous trouble free life. It delivers 4785 psi EWP (effective working pressure) when used with a turbo lance. The pump operating pressure is 3,000 psi and it produces massive flows of up to 21 lpm. The pump is flexi-coupled to a four pole, three phase, 7.5kW, IP56 rated motor.

The Aussie Admiral offers timed “Total Stop” that shuts the machine off after the operator releases the gun trigger. This reduces wear on the machine and saves power.

Intelligent design features a “Micro Leak” control to shut the machine down if a leak is detected in the high pressure system. This maintains optimum performance and minimises breakdowns and subsequent downtime. Tel. (02) 8865 3500 or visit www.aussiepumps.com.au

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A HARD-WORKING FARM NEEDS A STRONG, LOYAL AND DEPENDABLE WORKFORCE

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