Dairy News Australia October 2014

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OCTOBER 2014 ISSUE 52 // www.dairynewsaustralia.com.au

STOCK UP Hay, grain production falls 10% PAGE 5

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NEWS // 3

Govt must invest in ag to capitalise in China NATIONAL FARMERS Feder-

QDO executive officer Adrian Peake says Queensland farmers need to double production just to meet rising demand.

PG.10

Moving farms has forced Western Victorian farmer Simon Elliott to change his feed regimes but the results have been beneficial. PG.21

ation president Brent Finlay has stressed the importance of Government funding for both biosecurity and R&D if Australia wants to fully capitalise on any free trade deal with China.

Mr Finlay spoke at a Rural Press Club of Victoria breakfast last month, two days after returning from a trip to China with Federal Agriculture Minister Barnaby Joyce and Australian Dairy Farmers President Noel Campbell, among others.

The key theme of the trip was food security.

“China wants to do an agreement with us as much as we do with them,” Mr Finlay said.

Mr Finlay said China placed huge importance on food security, food safety and quality and any lapse from Australia would damage our reputation and potential exports.

Mr Finlay also said farming systems in China were very advanced.

“That’s why R&D funding is critical in Australia to help us retain a competitive edge,” he said.

As an example, the Australian

delegation visited a Chinese dairy farm.

After taking part in an extensive biosecurity cleansing procedure, they watched cows being milked in a high-tech dairy – but only through glass that separated them.

“There were 2300 dairy cows at this particular dairy we visited, and that company has 50-60 dairies of a similar size,” he said.

NFF president Brent Finlay: R&D funding is critical “Biosecurity was to help Australia retain a paramount.” competitive edge.

Much of the discusMr Finlay said Australia should sion in China focussed on beef and aspire to be the deli of China and that dairy, he said.

The delegation had to assure the the opportunity for value adding was Chinese that although Australia is a “enormous”.

He said Australia should aspire to huge country in terms of land mass, it would not be able to swamp Chi- exporting 90% of all food and fibre produced. nese markets with produce.

“That would mean Australian Most parties they met were worried Australia could flood China’s agriculture is growing strongly,” he said. markets with food.

And while all the focus has centred on China, Mr Finlay said Indonesia also has huge potential for Australian exports and should not be forgotten.

Mr Finlay said farmers could not have asked for anything more from Minister Joyce.

“To see the way the delegation and Barnaby Joyce was received was amazing,” he said.

“A good agreement with China will define agriculture in Australia for the next 20 years - it’s that simple.”

On another note, Mr Finlay said it was concerning that the Government’s agricultural green paper had not been released.

There have been 680 submissions for the white paper and the green paper was meant to be released in June.

“It hasn’t been released and that’s a concern,” he said.

Vet Gemma Chuck provides advice on the best time to wean calves. PG.26

NEWS ......................................................3-13 OPINION .............................................. 14-15 MARKETS ........................................... 16-17 BREEDING MANAGEMENT .....18-20 MANAGEMENT ................................21-23 ANIMAL HEALTH ...........................24-27 TRACTORS & MACHINERY ....28-34

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DAIRY NEWS AUSTRALIA OCTOBER 2014

4 // NEWS

WA families sign direct with Woolies WOOLWORTHS HAS bypassed

the three Western Australian processors and signed two prominent farming families to supply milk for a new “regional” milk brand.

The Noakes and Evans families will supply 10 million litres of milk annual for Woolworths’ Farmers’s Own brand.

The supermarket launched the milk brand in its 89 WA stores this month. The Farmers’ Own brand has also been successfully sold throughout its NSW stores. Milk is sourced in NSW direct from farmers in the Manning Valley.

Peter Evans – a director with Australian Dairy Farmers - said both families were being paid a premium price under the new contract.

They have signed rolling threeyear contracts.

The supermarket has contracted Brownes to process the milk.

Woolworths is utilising “provin-

cial” branding that is proving increasingly popular in Australia and across the world.

Peter Evans told ABC Radio this was an important element in their decision to sign with the major supermarket.

“We are being paid a premium but the real issue is in European countries, and I think the same trend here, is the consumer is becoming much more aware of where there food is coming from,” Mr Evans said.

“They want to know the sources of the food, and we see this as a continuation of that theme, and are very happy getting closer to the customer and the consumer.

“I think (the brand) will become established and hopefully move onto other products where consumers can come into Woolworths and identify where their food is coming from.”

Mr Evans said the milk would be sold at a reasonable price in the

supermarket that was sustainable for all those in the supply chain.

Brad Noakes said he hoped customers would see this as an alternative to $1/litre milk Woolworths sells in its stores.

“If what Woolworths was doing was available to all farmers, there would be a lot more people jumping on board,” he said.

The brand will soon be in competition with the WA Farmers brand, which will be sold in Coles stores from November.

WA Farmers will launch the brand at the Heart of WA dinner on November 19.

WA Farmers worked with Coles and processor Harvey Fresh to establish the milk brand, with a portion of its profits returning to WA Farmers to be used for market development.

Once launched, it will be available in about 80 Coles supermarkets across the state.

Lion maintains strong price LION HAS said it will retain its

current prices for southern suppliers, even as Murray Goulburn and Fonterra revise their season forecast.

Lion suppliers who chose the company’s fixed price (one of three options) of $6.40/kg milk solids can be assured this won’t change, according to Lion agricultural procurement director Murray Jeffrey.

Lion suppliers were able to choose from three options: variable pricing with an opening price of $6.35/kg MS; a fixed price for

2014/15 of $6.40/kg MS; or a threeyear contract at a fixed price of $6.14/kg MS for up to 50% of a supplier’s total volume.

Mr Jeffrey said the new terms have helped them increase southern supply and that they would not be changed despite the fall in global prices.

Late last month, Fonterra Australia announced its closing price could be up to 50 cents a kilogram of milk solids less than expected with the processor changing its forecast to $5.80-$6kg/MS.

Its original closing forecast was between $6.10-$6.30kg/MS. The move follows Murray Goulburn’s revision of its forecast price in August, from $6.15-$6.30kg/MS to its opening price of $6kg/MS. Murray Goulburn told suppliers a week earlier that it would maintain its opening price of $6kg/MS, after cutting its closing price in August.

The co-op originally had a forecast closing range of $6.15-$6.30kg/ MS before reducing this to $6kg/ MS.

CGTG chairman, Dr He, and Bega CEO Aidan Coleman seal the deal.

Bega signs $100m deal with China BEGA CHEESE has signed a $100 mil-

lion supply and distribution agreement with Chinese retailer Chongqing General Trading Group to supply Bega-branded UHT milk to China.

The agreement is expected to generate around $100 million worth of revenue for Bega over five years. Bega reported revenues of $1.07 billion in 2013-14.

Bega Cheese CEO Aidan Coleman said the partnership would provide Bega with further opportunities to capitalise on the booming demand for dairy products in China. The Chongqing municipality in Southwest China is one of the fastest growing regions in China.

It has a population of 32 million people and GDP growth in 2013 of 12.3%.

CGTG is the leading retail group in the region, with a 50% retail market share across food and general merchandise.

On hand in Chongqing from Bega for the formal signing were Bega executive chairman, Barry Irvin, Mr Coleman and sales and marketing general manager, Paul van Heerwaarden.

“The company is very pleased to form this partnership with CGTG and it is a strong endorsement of the reputation of the quality of Bega product and the biosecurity of Australia as a dairy producing nation,” Mr Coleman said.

“We see this as a first step in developing a comprehensive UHT offering in the future”.

CGTG chairman, Dr He, said China’s consumption of milk and dairy products was rapidly increasing.

“CGTG is delighted to work with Bega to satisfy that need,” he said.

The signing of the Chongqing agreement represents an expansion of Bega Cheese’s products entering the Chinese market.

The company has had a presence in the Chinese market for over 14 years.

The Bega brand has been sold in China since 2000 while its wholly owned subsidiary, Tatura Milk Industries, has been a major Australian exporter of high value milk powder, infant formula and cream cheese to the Chinese market.

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Dairy NewS AUSTRALIA october 2014

news // 5

Hay, crop production down 10% Rick Bayne

The view from the cabin of south Australian dairy farmer and contractor, James Stacey, on October 8.

AUSTRALIAN HAY and crop produc-

tion is likely to be down about 10% this year, placing pressure on prices and supplies for dairy farmers.

Some regions have been worse hit than others – southern Western Australia being a rare positive exception – but the lower yields are likely to lead to volatility in pricing and increased demand over coming months.

While a good drop of rain could ease the concerns, winter and spring rains have been disappointing after a generally good start to the season.

The latest Dairy Australia hay and grain report says most of the east coast of Australia would benefit immensely from more spring rain, except for the northern markets where rain would only bring harvest quality downgrades.

“More rain will mean higher production in south eastern Australia which would take a lot of pressure off prices,” the report states.

“No more rain and stocks will be tight again which will create local volatility in prices throughout the year.”

The lower than expected growth has been experienced broadly across Australia, from major crop growing regions to individual dairy farmers wanting to produce more home-grown feed.

Industry development manager for the Australian Fodder Industry Association (AFIA), Caitlin Scholfield, said hay shortages were looking likely this year.

The AFIA is advising hay buyers and the dairy industry that it believes hay supplies will be short this year, in particular protein hay supplies with Lucerne and vetch likely to be well back due to a combination of increased demand from the domestic market and reduced supplies.

“That’s a trend we’re seeing right around the country,” Ms Scholfield said.

One of the worst hit areas is the Wimmera-Mallee in Victoria. “They’ve had a tough season and it has dried up quickly which has affected the vetch crops in particular,” Ms Scholfield said.

Some parts of South Australia have also had a dry finish to the season which is likely to impact on Lucerne supplies.

The price of water in Victoria and parts of New South Wales is also having an impact. Ms Scholfield said irrigated Lucerne played a big role in supply but because opening water prices were very high some farmers could shy away from Lucerne this year.

“That will impact on prices,” she added.

Ms Scholfield said she was not willing to commit to pricing at this stage but said that as the hay season progresses and the supply situation becomes clearer prices are likely to go up.

She encouraged farmers to keep a close eye on Dairy Australia’s hay price report.

“Between now and Christmas we are likely to see the price change for hay as conditions dry off and yields fall back, coupled with extra demand from the export market and from northern Australia where dry conditions are already

“Nationally we’ll end up with a lower hurting,” Ms Scholfield said.

“There is increased competition figure than last year for sure,” Mr Storey this year and it will affect the domestic said.

There are some regional areas such as market.”

Despite an upswing last year, hay pro- southern Western Australia doing well, but they are counteracted duction has been on a by regions experiencing downward trend over “Between now lower than average prothe past decade. and Christmas duction.

Ms Scholfield said we are likely to Southern Queensland conditions were startsee the p rice and north-west New ing to impact and South Wales remain poor throughout Victoria change for hay for a second consecutive farmers were putting as conditions season as drought livestock back on pad- dry off and conditions continue, docks that had been yields fall back.” while the Wimmeralocked up for hay and – Caitlin Scholfield, Mallee region of Victoria silage.

“We expect pasture AFIA. is experiencing a bad year with some crops cut hay and silage will be to hay and others failing or producing down this year,” she said.

Ms Scholfield said pasture hay and poor results.

“They are the two bad areas but there silage are expected to be down this year will be other areas below average,” Mr but not drastically.

Australian Crop Forecasters general Storey added.

Despite the lower yield, Mr Storey manager Ron Storey said that nationally crops were down about 10% on last year. there would be no overall impact on

supply of grain for dairy farmers.

“Being down 10% is not a problem for the overall supply of grain. The issue is where the grain is,” Mr Storey said.

In Victoria supplies will be tight because of the poor season in the Wimmera-Mallee.

“You could liken that to what has happened in northern New South Wales and southern Queensland for the past two years. What it means is that the grain has to be imported to those regions where the demand is.”

Mr Storey said there would be more grain imports from New South Wales and South Australia to cover the shortages. “That will be a higher cost to the end customer because they will be paying more for freight,” he added.

Western Victoria and north-east Victoria dairy crops should be around average “but when they need to top it up, particularly in the Western District where they normally draw from the Wimmera-Mallee, it’s going to be harder to find.”

DAIRY NEWS AUSTRALIA OCTOBER 2014

6 // NEWS – FOREIGN INVESTMENT

Foreign investment could boost national milk supply farms is vital to lift the national milk production, according to Dairy Australia managing director Ian Halliday.

Dairy Australia chief executive Mr Halliday wants investors in the “pre-farmgate area” rather than processing.

“Processors have been spending money on new technologies and plant upgrades,” Mr Halliday told Dairy News Australia. “Processors are saying to us, ‘we can go and seek capital for the processing sector but the challenge is how we follow up that investment… with milk.”

He says capital inflow into farms is vital to lift the national milk production; in 2000 Aus-

Ian Halliday

is attracting worldwide interest, not only from China. Mr Halliday says it doesn’t see Australian farmers competing with their New Zealand counterparts for the investor’s dollar. With strong world demand for dairy, there is room for everybody.

“It is how we all can take part in the growth of dairy on a global basis; all dairy regions are looking at Asia, and Australia and New Zealand are no different.”

Mr Halliday says Aus-

Federal Trade Minister Andrew Robb at last month’s Australian Dairy Farm Investment Forum.

tralian dairy has some competitive strength over other producers, e.g. “a perfect mix” between domestic market supply and exports.

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AUSTRALIAN DAIRY has hopefully “turned the corner” and is poised to lift production, says Ian Halliday.

Milk growth is forecast at 2% but Dairy Australia hopes to lift growth up to 5%, but this will come only from profitable dairy farmers.

“We are forecasting 2% growth but we are looking at ways of accelerating growth,” he told Dairy News Australia.

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“About 50% of this growth in New Zealand has come through conversions in the South Island; we are not going to see that overnight but we would like to lift growth to between 3-5%.”

Mr Halliday believes good conditions will lift growth this season.

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tralia produced 11b L of milk; last year it produced 9.3 billion L. Mr Halliday says farmers no longer see bank debt as the only means of raising capital; they are turning to other sources.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

NEWS // 7

New Zealand model unlikely for Australia SUDESH KISSUN

DOES THE Austra-

lian dairy industry need a ‘national champion’ like Fonterra to pull it out of the doldrums?

Some industry leaders feel the time has passed for a super dairy co-op; some also caution against getting carried away by the single desk-seller concept.

Last month Dairy Australia hosted an investment conference in Melbourne in a bid to lure capital inflow onto farms that would eventually lift milk production; many references were made to New Zealand’s success in dairy and Australia’s decline over the last 10 years.

In the late 1990s Australia produced the same amount of milk as New Zealand, now the world’s biggest dairy exporter.

While New Zealand’s dairy industry raced away, Australia’s flagged; its milk production has fallen about 20%.

Burra Foods chief executive Grant Crothers told the conference that the time for a national dairy champion had well and truly passed. The opportunity had been there 20 years ago when farmer co-op Bonlac Foods was formed; the company lost money and was taken over

by Fonterra.

Other dairy processors were also snapped up by foreign buyers – National Foods in 2004

by San Miguel and then in 2007 Kirin Holdings and Warrnambool Cheese and Butter by Saputo this year.

Crothers believes Australian dairy is not structured for a single desk-seller concept. “I think the danger is getting too carried away with the New Zealand model; after farmgate the model is quite different. We’ve got a much bigger domestic market.”

But the Australian dairy industry needs to get its act together.

Mr Crothers says it will take investment in new technology and innovation to find its niche on the world market. “We make up 7% of the world’s trade and we’re the fourth-largest trader; if we don’t get going Argentina will overtake us and we will drop to fifth.”

Greg McNamara, chairman of Norco Foods, one of the few remaining dairy co-ops in Australia, believes the Australian takeover laws create an unequal footing for local processors.

The recent battle for WCB saw two local bidders miss out.

He points out a foreign player could end up creating a national champion.

“While this may not be a bad thing for our economy, the national champion may not be Australian-owned so there are challenges for anyone trying to create a national champion.”

Australian Dairy Farmers director Chris Griffin suggested a joint venture between Australian dairy processors instead of a creating a national champion.

“A JV could be tailored to give the best returns; processors would invest jointly rather than each one going out on its own with the risk of big capital expenditure.”

Murray Goulburn this year argued for a national champion or supercooperative during its bid for WCB. MG chairman Philip Tracy says a national champion should be to drive efficiency and extract value from the marketplace. But he also cautioned against comparing the Australia and New Zealand dairy industries.

New Zealand’s dairy industry is a vital part of the economy and is a “huge focus” of the Government. “It is on the front page of the newspapers every day; when something happens

involving Fonterra everyone in the economy is

engaged. It’s their number one industry.”

MG chairman Philip Tracy with Ling Qin at the Dairy Australia Investment Forum.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

8 // NEWS

Weather fuelling global oversupply THE WEATHER in the big dairying countries will chiefly determine how long the present oversupply of dairy products lasts.

DairyNZ general manager policy and advocacy, Kimberly Crewther, says it’s a guessing game how the present crisis will be resolved.

Geo-politics will be a factor, but global weather may well determine how much milk is produced and where.

“It isn’t usual for every country to have good weather at the same time, so a more normal weather year will help the rebalancing of dairy product stocks.

“Certainly the weather conditions globally in the next year will determine how much additional production comes through or whether production goes down again.”

The present situation stems from

a number of different factors in the international market, she said.

“We’ve had very good production years in most countries that export dairy produce.

“Europe’s production is up 5%, a significant volume given that Europe is the largest dairy producer.

“The US is also up and New Zealand had a good production trend this year, so there’s a lot of additional product in the market.”

The stockpile of dairy products in China and food bans by Russia all have contributed to the present situation.

Dairy products produced in Europe that normally go to Russia have entered the world market and it will take time for such stocks to be re-balanced, she said.

Notwithstanding the present crisis, the long term demand for dairy products is good.

Price recovery some way off – bank

Rabobank’s Hayley Moynihan says “market rebalancing will be a slow process.”

ANDREW SWALLOW

EVEN BEFORE last week’s GDT drop Rabobank was warning a dairy price recovery could be a while away yet.

Speaking on the release of the bank’s latest Dairy Quarterly report, director dairy research New Zealand and Asia, Hayley Moynihan, said: “…market rebalancing will be a slow

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process and price recovery looks some way off”.

“Rabobank firmly believes the current downturn in prices is cyclical, as agricultural commodity prices often are, rather than a more fundamental structural change, and farmers will work hard to ‘wait out’ the lower price cycle by trimming less productive farm expenditure or deferring long term cap-ex decisions,” she added.

Rabobank’s report cites exceptional milk production growth in export regions outstripping weak domestic consumption, and China’s reduced forward buying as the drivers of price falls. been insulated from increase only 2.7% in the But milk production recent price falls as second half and just 1.6% growth in the ‘big seven’ domestic prices remain in the first half of 2015. export blocks – the EU, buoyant and, US, NZ, AusWhile it’s not expected, with feed tralia, Argenprices plumbtina, Brazil and prices could recover more ing new depths, Uruguay – will quickly if Russia removed dairy farming slow considerits ban on dairy imports remains highly ably in the next or Chinese import buying profitable for six months. resumed earlier and more them.

Combined, “Even if their producstrongly than expected. their prices tion was up were halfway between Meanwhile dairy con5.1% in the first half of this where these [world] prices sumption will slowly year, but it’s forecast to are and what they’re curimprove as incomes rently getting it would still increase, employment be profitable,” Moynihan grows and dairy retail said. prices fall.

However, for US and “The combination of these production and con- EU processors exports will not be profitable at sumption factors will see current market levels, growth in exportable surso they’re likely to be pluses slow from about building inventory which, 4.5b L in the first half when prices start to of 2015 to 2.2b L in the recover, will be unloaded second half – a 6% yearonto international on-year rise – with a simmarkets, slowing the ilar rise factored in for recovery. early 2015,” says MoyniThe fact the whole milk han.

While it’s not expected, powder price in the near prices could recover more position (November) rose in the latest GDT event quickly if Russia removed is a sign some buyers are its ban on dairy imports operating hand-to-mouth, or Chinese import buying but with the Decemberresumed earlier and more April positions all down strongly than expected, there seems little appeshe adds. tite among buyers to build However, “further inventory, adds Ms Moynidownside risks” lie in han. the EU’s removal of “We need to see them production quota in April start rebuilding invento2015. ries for it to turn around.”

US producers have

DAIRY NEWS AUSTRALIA OCTOBER 2014

NEWS // 9

10 years of classroom cows TWO HUNDRED

industry representatives from across Australia’s dairy regions gathered in Gippsland last month to celebrate 10 years of Dairy Australia’s Cows Create Careers.

The Cows Create Careers program has grown from nine Gippsland schools in 2004 to over 209 schools across 23 dairy regions in 2014.

Dairy Australia managing director, Ian Halliday, said 51,855 students have learnt about the dairy industry and dairy career pathways through the program.

The school-based project has helped educate students and teachers about careers in the dairy industry in a very hands-on way.

Over a six week period, secondary students rear two threeweek-old calves at school and the school is provided with dairy

industry curriculum at no cost.

The program also includes volunteer dairy farmers and industry advocates who visit schools to share their industry knowledge with students throughout the project.

Mr Halliday said the program has gained huge support from dairy farmers and industry advocates across the nation. Last year alone volunteers gave 1,162 hours of their time across 23 dairy regions.

Program advocates, and volunteers, Grant and Jane Sherborne, who farm at Burrawanga in the NSW southern highlands, say it helps lift the perception of dairy.

Their involvement in the program takes them into local and Canberra schools to help students raise calves and learn about the importance of, and opportunities in, the dairy industry.

“We’re trying to get

Shedding gender stereotypes NSW FARMERS Grant and Jane Sherborne want to

dispel the myth that dairy farming is just a job of last resort for strong lads, and their farm at Burrawang proves that’s no longer the reality.

Eldest child Georgia, 19, now works with her parents and the farm’s roster of casual employees is almost exclusively female.

The Sherbornes never set out to prove a point by hiring female workers; it’s just evolved that way.

“Girls seem to be the only applicants we have at the moment,” Mr Sherborne said.

The female workers have ranged from international backpackers to university students and they consistently help the Sherbornes to maintain their high standards for quality milk production and environmentally efficient farming.

“Maybe if you go back years ago, farm work was thought of as a basic labouring job,” Mr Sherborne said.

“But one of the reasons I employ girls is that they don’t have to be physically strong to do this today; they just have to be smart and want to do it.”

Mr Sherborne believes the job market would improve if dairy was seen in the positive light it deserves.

In addition to Georgia, son William is finishing Year 11 at school and will follow in his sister’s footsteps on the farm.

Youngest Samuel, 14, is still at school as well but already has his eyes on entering the farm business through calf rearing.

“Georgia’s been on the farm for the past 12 months,” Mr Sherborne said.

“She could have gone to uni but she wasn’t keen. She said the farm is what she’d like to do and she seems to be more interested in it as time goes on.”

kids out of the idea that ‘if I can’t get into anything else I might be able to get a job on a farm’. We show them how much is involved in dairy farming,” Mr Sherborne said.

“The perception of dairy needs to be lifted.

The student we have here loves what she’s doing but she doesn’t know how to tell everyone that she’s gone to uni and is not using that degree.

“It’s got to have more appeal to their peers.

If you say you work in a dairy they might think that you can’t do anything else.

“There’s a terrific amount involved in dairy.

We had a policeman work here for a while and he found it was a bit beyond him with all that’s involved in animal health and working with cattle – he said police work was far easier.”

Cows Create Careers started in 2004 with dairy farmers in the Strzelecki Lions Club in Victoria.

Cows Create Careers advocates Grant and Jane Sherborne with their children, William, Samuel and Georgia.

The Gardiner Foundation provided seed funding in 2005 to expand the

project to all dairy regions in Victoria, and in 2006, Dairy Australia

supported the growth of the project to other states of Australia.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

10 // NEWS – QDO CONFERENCE

Supply gap too much to bridge STEPHEN COOKE

QUEENSLAND’S EXISTING farmers

would need to double production just to meet rising demand for dairy caused by population growth in the State.

These figures were revealed by the Queensland Dairyfarmers Organisation’s executive officer Adrian Peake at the farm body’s Toowoomba conference held last month.

Mr Peake said increased production would only be achieved through on-farm investment.

However, a survey recently conducted by the QDO and unveiled at the conference revealed only 24% of respondents believed they would still be dairying in five years’ time.

There are now 471 dairy farmers in Queensland and 43% of them responded to the survey.

The survey found that only 4% said they were very confident in the future of the industry, 22% said they were confident, 37% were uncertain, and 37% were not confident.

Those farmers who

indicated they were leaving nominated ‘lack of profit’ as the biggest reason, at 84%, which is 16% higher than the previous survey in January 2014.

Sixty seven percent of respondents said their milk cheques were less than their monthly accounts.

To stay dairying, 39% want more than 60 cents/ litre while 43% more than 65 c/litre.

Farmers also said they would like more flexibility with the rest of the supply chain, particularly when it comes to having the opportunity to supply milk to more than one processor, which they cannot do now.

Some 61% of respondents said they would support a ‘dual-supply’ option, while 74% also expressed an interest in a Queensland-wide milk supply cooperative.

Mr Peake said Queensland has lost 120 farmers since Coles launched its $1/ litre milk in January, 2011 – the equivalent of $360m of investment in the indus-

iDAIRY®

try.

He said processors have had to discount their branded milk in a bid to recapture market share, further eroding returns to farmers.

Dairy consultant Chris Phillips, formerly with Dairy Australia, told the audience discounted milk will feature in Australia for years to come.

“Coles told investors at recent meetings they are committed to discount strategies, or price leadership,” Mr Phillips said.

He also told farmers prices would not meet their expectations.

“Most world market returns yield below the current northern dairy industry milk price,” he said.

Norco deputy chair, Tony Wilson, told the audience the co-op’s sales

of branded milk were growing each month.

Norco is using the concept of provenance to market its milk.

“It’s growing but it’s tough work while $1 milk remains,” Mr Wilson said.

When asked by a member of the audience why Norco signed with Coles to provide milk for the Coles private label, Mr Wilson was pragmatic.

“Retailers are here to stay, and if you want to bottle milk, you need to work with them,” he said.

“The Norco contract to supply Coles is a good one.”

Norco hopes to build its fresh milk exports to China to 20 million litres a year but Mr Wilson said its branded ice cream exports had the potential to be bigger than its fresh milk exports.

Dan Dickeson, Lion, with Ged Mullins and Rachael Parkes, Leyburn.

Bill Gulbransen, Mt Mee, Jason Rozynski, Gympie, Tony Gault, Harlin.

Former QDO executive officer Adrian Peake; QDO president Brian Tessmann; vice-president Ross McInnes.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

12 // WORLD

EU farmers pumping milk AN INCREASE in milk volumes expected as a result of the abolition of the EU’s milk quota are already showing up, says Arla Foods chief executive Peder Tuborgh.

Speaking at the release of the European coop’s half year results, Mr Tuborgh noted that more

milk was coming not only from Arla farmers but from other EU farmers intent on growing their businesses.

“The extra milk is flowing into our production sites and putting us under pressure to deliver a long-term competitive milk price for growing vol-

umes,” he says.

High milk prices have boosted milk production and world supply has been at an all time high, triggering a slide in raw milk prices.

Mr Tuborgh says Arla showed strong performance in the first half of 2014 and delivered record

earnings for its farmer owners. But downward pressure on the world market will force down the price paid to farmers for the rest of 2014, he warns.

“The current challenges must be seen in the perspective of a bigger and promising long-term outlook for dairy companies.

The world’s middle classes are growing, more consumers can afford dairy products, and they create a stable demand for healthy, nutritious and safe milk products.”

Arla Foods’ revenue grew by 11% to $8.4 billion in the first half of 2014; from $7.5b in first half-year

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2013 due to growth in all markets and global price increases. This allowed Arla to pay suppliers a record performance price of 70c/kgMS, compared to 61c/kgMS in first-half 2013.

But Arla says the trends in global raw milk price are pointing downwards fast, so the co-op has lowered its expectations, though it expects 2014 will be a better year than 2013 which already was a record year.

“We are pleased to see our strategy for creating more growth outside Europe is working and we have accelerated growth outside our European core markets. Our overall organic growth is satisfactory, but we are facing a difficult period and tough market challenges.”

Arla says during the first half year it grew sales in target growth markets. The Middle East

Peter Tuborgh

and Africa grew 17%, revenue doubled in China and in Russia the market showed good progress.

But Russia’s import ban on foods from countries that imposed sanctions on it will be a challenge. Sales in Russia amount to about 1% of Arla’s total revenue.

Arla also reported a spike in sales of its house brands. During the first half year of 2014 Arla, Lurpak and Castello brands they grew 7% by revenue year-on-year. Arla Foods’ sales of milk proteins and value-added ingredients grew 8%.

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ARLA FOODS is setting its eyes on Egypt, bidding for

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Due diligence is underway; Arla is bidding for up to 100% of Arab Dairy shares.

The co-op says it has access to details of sensitive aspects of Arab Dairy’s business not published in its annual reports.

Arla’s senior vice president Middle East and Africa, Rasmus Malmbak Kjeldsen, says its bid is non-binding but has now become official because Arab Dairy is listed on the Egyptian exchange. “The company seems wellaligned with our ambitions in Egypt, and we are looking at details before deciding whether or not to purchase a share of the business.”

Arab Dairy is said to be strong in retail and food service, which suits Arla’s focus on these sales channels. An acquisition could place Arla in the top six suppliers to Egypt’s dairy sector and win it 13-15% of the cheese market.

“Arab Dairy’s local production is based on recombining – adding water to milk powder then processing this into cheese,” says Mr Kjeldsen. “About 80% of this milk powder is imported to Egypt. So there is a lot of potential for using milk supplied by owners in value-added products which we can sell in a growing market.”

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DAIRY NEWS AUSTRALIA OCTOBER 2014

WORLD NEWS // 13

Profit before production, Irish urged

Debate looming on housing cows in NZ land. We often like to market our food as produced from animals that thrive out in pastures and imply this is natural, thus so too by implication is our food.”

Mr West says he cannot say whether the public and the Government will allow the country to move away from that market positioning.

HerdHomes founder Tom Pow believes cow shelters accessible to animals most of the year will be common; full-time housing or full pasturegrazing will also be practised.

Mr Pow says cow shelters will allow flexibility: cows can be inside 24/7 for short periods or just stroll back from the paddock for shade and a feed top-up.

“Also for managing environmental caps it is easy; don’t drop stocking rates or production limits, just de-stock at pressure times. “That could be twohour, twice-a-day grazing to reduce nitrogen from urine or a similar time on paddocks during high rainfall. Even the collected effluent can be used as offfarm fertiliser applied to a neighbour’s farm to keep under controlled levels of N and P.” Critics of housing cows say it is a step closer

IRISH DAIRY farmers have been warned to focus

on profit, not production for production’s sake in the run-up to quota removal.

Speaking at Teagasc’s Winter Milk conference in Co. Wexford earlier this month, Cathal McAleer, a private agricultural consultant from Co. Tyrone, said that in Northern Ireland, where surplus quota has meant no constraint on production, many producers have made the mistake of chasing milk yield per cow in the past decade.

Output per cow has increased but they’re getting less milk from forage, grassland management’s declined and herd infertility’s increased, as have inputs. Mr McAleer said the main beneficiaries of the increased production were input suppliers, not farmers.

With the brakes coming off production in Eire with the removal of quota in April 2015, he urged the 200 or so farmers at the conference to aim to retain the maximum milk cheque, saying expanding profit is a form of farm expansion and it needn’t necessarily involve more cows.

Teagasc’s Joe Patton said winter milk producers should use the removal of milk quotas as “an opportunity to re-imagine the farm business”.

While each has options – stay the same, switch to spring production, increase herd size or improve efficiency – economic analysis shows only by “addressing on-farm efficiency can profit and cashflow can be improved”.

He urged farmers to “take responsibility for onfarm decisions relating to feed by acquiring the necessary knowledge” as feed is the biggest cost on winter milk producing farms.

Two winter milk producers who spoke at the conference, Glenn Forde and Larry Hannon, noted the importance of having “the right cow” for the job and are focussed on improving herd genetics to get a better calving pattern to supply their winter contracts.

Both said they’re committed to winter milk production and they’re working on improving soil fertility and grassland management skills but would like to see more clarity from processors.

Irish invest in pizza cheese

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NEW ZEALAND is warming to the idea of housing cows but a debate looms on the issue, says the outgoing chairman of HerdHomes, Dr Andy West.

Mr West, vice-chancellor of Lincoln University, resigned last month from HerdHomes board after four years.

He says farmers and scientists are becoming more ready to accept the need for cow shelters. The debate will be whether or not cows should be housed 365 days yearly, 24 hours daily.

“The public has wanted chickens out of cages and pigs out of crates, though of course often both of those species remain permanently housed,” he said.

“Will the NZ public want cows to spend at least some time of a day or a season on grass, and if so how much? That is a yetto-be-answered question.

“Cows are permanently housed in some parts of the world and goats are often permanently housed in New Zealand.

“It will be interesting to see if 24 hour/365 day housing of cows will ultimately be acceptable in New Zea-

to ‘factory farming’ and a move away from pasturebased farming, the cornerstone of dairying in New Zealand. But West points out the “total package” of cow shelters.

“In the case of HerdHomes this partial housing system of farming was invented by a New Zealand dairy farmer to protect soils from compaction and pastures from overgrazing.

“Other benefits were then developed such as using the HerdHomes shelters to protect cows from conditions too hot or too cold, for calving, feeding, effluent capture and, later, sophisticated environmental management.

So there is no obligation to use a shelter or barn for what is still rather quaintly

termed supplementary feeding.”

Mr West says he thinks shelters are the future of dairy and aspects of beef farming.

Cows don’t have to be on a pasture for 24 hours a day to eat enough, he adds.

“So having them off pastures and in barns for part

of the day – and at times in winter maybe all day – provides significant benefit.

“If you give cows a choice they will often choose shelter. Moreover, barns that efficiently capture effluent [are important for managing] within increasingly precise environmental regulations.”

COWS SAVE ENERGY ANDY WEST says cow shelters help cows save energy.

HerdHomes shelters protect cows from extreme cold and hot weather, he points out.

“One reason farmers can record up to 25% increase in profitability after about three years of effectively using a HerdHomes farming system is that cows put less energy into staying warm or cool and more energy into producing milk.”

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THE IRISH Dairy Board Cooperative has bought Span-

ish pizza cheese maker Luxtor SA, contracted long-term to supply cheese to its former owners Telepizza, the world’s fifth-largest pizza chain.

The IDB says the deal, via its subsidiary IDB Espana, strengthens its position as a global provider of cheese to the quick service restaurant (QSR) and food service sectors. It has made similar moves into US and UK specialised cheese supply.

It opens a fast route to market for Irish dairy products, important in view of the milk quota removal in 2015.

IDB chief executive Kevin Lane says the deal is in line with the co-op’s plans to grow its business in Southern Europe, where milk is short.

“IDB Espana trade and assets [bought from] Luxtor… will provide expert cheese solutions for the pizza sector that complement cheese technologies we’re developing in our other international businesses.

“Its location gives a trading and sales hub to service our growing Southern Europe customer base.”

Debate on whether cows should be housed is coming, says Dr Andy West.

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Dairy News AUSTRALIA october 2014

14 // OPINION Ruminating

EDITORIAL

National plan for growth essential

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A PANEL of some of the country’s largest dairy businesses told it as they saw it at the Australian Dairy Farm Investment Forum last month.

The likes of Allan McCracken, Rod Banks and Kirsti Keightley were frank and honest with their tips on successful investment, but it was Alanvale Dairies owner Garry Morrison who drew the biggest laughs.

Garry told the crowd that when he bought his first farm in south-west Victoria at auction, agents were quick to tell him it was a tightly held area and that he wouldn’t get another.

“We had locals knocking on the door the next day!”

During question time, one Chinese delegate asked Dairy Australia director Jeff Odgers a long question – all in Mandarin.

Fair to say Odgers looked stunned, until the delegate repeated the question in English, much to his obvious relief.

Deadline?

What’s the rush?

PLENTY OF people drew a sharp breath when Prime Minister Tony Abbott declared 12 months ago that the three FTAs being negotiated with China, Japan and Korea would be completed within 12 months.

It would be fair to say Trade Minister Andrew Robb was among them.

Robb had been involved in international trading while in business before he entered parliament, and is very aware of the complexities it entails.

“The Chinese are very tough negotiators,” he told those present, including 50 Chinese delegates.

“Years ago, I was told

by Chinese negotiators: We’re on a 100 mile journey and we’re 95 miles in - so we’re halfway there.”

Follow the script, please

IAN HINDMARSH never took a backward step on the rugby league field and he’s still calling it as it is now he’s hung up the boots.

Hindmarsh and his cows were the star attraction as Australian Dairy Farmers and the Australian Dairy Industry Council held a media event on the lawns outside Parliament House.

The seventh-generation farmer told ABC Radio that milk prices hadn’t risen in 30 years, input costs had soared and they were facing another tough season.

“If I had my time again ...I would have stayed out of farming and just had a few cows out of interest,” he said.

“I think there are a lot of easier opportunities to have a nice life than go back into dairy farming.”

They must have known Hindmarsh of all people would call it as it is.

Advertising Chris Dingle chris@dairynewsaustralia.com.au

Great question, I mean it!

IT CAN be daunting attending the Queensland Dairyfarmers’ Organisation conference if you’re a processor, particularly after the decisions of recent years, including the Tier 2 milk.

So we’re guessing Lion’s Nicola Richardson was prepped beforehand in a bid to keep the farmers onside.

The crowd was very civil and keen to hear about Lion’s “Goodness” strategy but it didn’t stop Nicola responding to every question from the floor with “good question”, before providing her answer.

Every farmer would have been feeling very pleased with their particularly clever line of questioning until the very end, when Nicola told the last farmer it was a “good question”, gave the answer, then finished with: “Really good question.”

There’s no topping that.

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

AUSTRALIA LACKS a cohesive, national plan on growing milk supply and it will cost us.

Rabobank’s recent report, Australian Dairy – More Milk Matters, said Australia is a favoured exporter because many offshore customers place a strong importance on high-quality, safe products with strong traceability across supply chains.

However, the report says quite clearly the sector also needs to be able to match export customers’ growth.

Global demand for dairy is growing but how will Australia meet the requirements of business partners with increasing appetites?

Excitement about a potential Free Trade Agreement with China is at fever pitch but even if the Government can secure a “NZ plus” agreement, it is only the first step.

How do we meet the needs of even a fraction of China’s emerging middle class if we have to truck fresh milk 2000km from Victoria to southern Queensland?

There are other countries that will stop at nothing to fill the contracts Australia will be forced to decline because of our stagnant national milk supply.

Australia is at a critical stage and industry needs to address it as a whole.

Lion has taken a step in the right direction by offering three-year fixed contracts to suppliers, and has attracted new suppliers as a result. However, they are still short of their national requirements.

The shortfall in Queensland will only increase, so southern milk will continue to be trucked north, instead of exported.

It’s a similar story in WA – where milk has been trucked from SA to meet the supply shortfall.

Processors responded with a price rise, which pleased existing farmers, and this might meet the domestic shortfall.

However, this comes at the expense of growing and supplying lucrative export markets, where growers would see better returns.

The Rabobank report says without improved profitability on farm, the dairy industry won’t see the milk production growth required for the whole industry to tap into the opportunities that lie in regional export markets.

There has been a renewed focus within the industry on profitability over production with the expectation profitable farms will increase their supply.

However, growing the national pool can’t all be left to the farmer.

Supermarkets and processors – for so long happy to cherry pick suppliers to meet their own needs – must look big picture, if they can.

Australia needs a national plan adopted by all sectors or further opportunities in the shape of expanded high-value exports that will help it grow could well be swept away from us.

Published by RNG Publishing Ltd Printed by Shepperton News

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 331100, Takapuna, Auckland 0740, New Zealand

DAIRY NEWS AUSTRALIA OCTOBER 2014

OPINION // 15

Rising demand for inputs will challenge dairy IN MAY this year I was

lucky enough to spend a week in the Netherlands along with 50 other young farmers from across the world to participate in the Rabobank Global Young Farmer Master Class.

We explored many themes including succession of our agricultural enterprises, social enabling of emerging agricultural economies and the use of data and technologies that will shape our future faming landscape.

Most importantly we also examined the single biggest issue facing my generation of agricultural producers - food security.

Why is food security such an issue? For the average consumer and primary producer in the developed world food

security sits pretty low on the scale compared to price and quality.

For consumers the question of where the food comes from and the market forces at play behind the scenes are rarely even questioned.

However for the estimated one billion people on the planet who are already under fed in 2014 the issue of food security plays out daily.

The world population is set to move above 9 billion by 2050 and agriculture across the globe will need to increase production by an estimated 70% over and above current production to meet the needs of this growth.

Most critical will be achieving this growth with fewer inputs. At present our annual increase

in global food production will not keep up with demand as population rises.

So what will this all mean for Australian dairy farmers? As demand for agricultural resources increases so too does the cost of doing business.

We are already seeing very rapid volatility affecting our input costs. This will continue as resources become scarcer unless we develop cheaper alternatives to current inputs.

As a large consumer of feed grains and other concentrates, the dairy sector will be challenged by competition for these inputs by other traditional agricultural production systems.

We will also see a proportion of these stock feeds used for meat and

COMMENT TOM ACOCKS

milk production transferred to emerging industries that are more efficient converters of feed to protein.

Markets may look for alternatives to available dairy products if we cannot produce at a price that is competitive to our trading partners.

Australian dairy farmers and milk processors must set up their busi-

nesses to withstand this expected volatility in our markets.

Opportunities for Australian producers may arise in many forms.

As the world’s population grows and begins to generate more income, this will lead to increased global consumption and competition for our products.

At a farm level we will see more investment as both private enterprise and state backed organisations look to sure up food security within their borders.

These businesses are all looking for opportunities in countries such as Australia.

What are they are look-

ing for? An abundance of natural resources a proven track record of producing quality products and a stable government that will assist in facilitating trade between nations.

We tick all the boxes at present. This investment must be embraced if we want to see continued growth and development within our industry into the future.

For those within the industry that have a view for expansion and development, opportunities will arise that may have never been possible before.

For these opportunities to happen we must collectively continue to push the boundaries of our production systems, look for new

ideas on innovation and welcome change.

As we move towards 2050, the issue of food security may have the ability to topple governments and derail social stability if we do not manage it correctly.

More importantly however we have an opportunity for much needed investment back in to our agricultural sectors as we look to feed the world.

It is on the back of this investment and promotion that we will begin to nurture the next generation of food producer.

• Tom Acocks milks 850 cows on the Rochester dairy farm he runs with his wife Emma and parents, Mick and Heather.

As a large consumer of feed grains and other concentrates, the dairy sector will be challenged by competition for these inputs by other traditional agricultural production systems.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

16 // MARKETS

Long-term growth on track INTERNATIONAL DAIRY com-

modity prices have continued their fall, as increased milk supply competes for fewer and certainly less enthusiastic buyers.

A recent Rabobank report highlighted that the supply issue, with the big seven exporting countries increasing output by 4.3% - equivalent to an additional 3.2 billion litres in the three months to July – half of that increase coming from the EU. The supply response to lower commodity prices is being muted by an over-heated US domestic dairy market that has softened the impact for still less export-exposed US producers, and an over-supplied global feed market that is keeping a lid on farm production costs.

For these reasons the US and EU will take some time to slow – particularly given the ramp up of EU production ahead of quota removal in 2015.

Internal consumption of milk in these northern hemisphere regions is an important factor in the global market balancing act – particularly for cheese.

NZ producers are seeing the full impact of the global market downturn

market has been the reflected in their payRussian import ban outs, but given their which had the effect of debt levels and longturning a slowly deflatterm commitment to ing tyre into a blow out dairy, they will conand car crash. tinue to pump out Whether the ban product – seasonal imposed by the world’s conditions allowing. third largest dairy On the demand importer will run its side, much has been FRESH AGENDA STEVE SPENCER course or even be written about China extended beyond 12 holding back from the market, although trade figures con- months will be an important determitinue to indicate imports are ahead of nant for market recovery in 2015.

Most analysts appear to agree that last year.

It is an interesting ploy – if Chinese any recovery will not be until well into buyers are in fact holding back from next calendar year, a view supported the market to improve costs it would by Freshagenda’s Dairy Trade Simulator analysis and summarized in last be understandable.

They have certainly consumed a lot month’s Dairy News Australia article.

But what about the longer term outof product at very high cost from purchases made earlier in 2014 and maybe look – as current market conditions now sending signals via GDT to reduce severely test the faith and finances of dairy producers around the globe, is the prices.

It has worked, but they have taken bright future still out there?

Will the historical trend line of some time to work out that more careful messaging via the GDT could be used around 3% increase in the value of milk that has prevailed for the past 20 year as a tool to manage costs.

Of course the other wildcard to hit continue?

Our long term analysis suggests this the already weakening global dairy

is still the case. Demographic and economic factors will increase demand for dairy products more rapidly than supply.

Growing Chinese demand will only partially be met by internal production expansion, while other developing dairy markets have even less chance of improving self-sufficiency.

Our analysis assumes growth from most major producing regions, but all face constraints and will continue to be affected by climatic factors from year to year.

Tetra Pak released a long term outlook earlier this month. The timing is interesting, with Tetra possibly concerned about ongoing faith and investment in dairy processing as a driver of its own business.

The Tetra analysis suggests the international dairy market will undergo significant transformational change in the coming decade as it becomes truly global.

They project the long-term deficit in dairy world trade as demand outstrips supply to be just under 10 billion litres by 2024. Our own analysis suggests the deficit will be a little smaller but still sig-

nificant, meaning that global prices will be on a firming trend.

We have seen no credible analysis of the long term outlook for dairy that diverges from that view.

That does not mean there won’t be volatility, the past three years have demonstrated that fact, and looking forward the factors affecting supply and demand are likely to become increasingly complex and intertwined with global input and competitor commodity markets.

The producers who prosper in this environment will be the ones that can set their business to ride the inevitable peaks and troughs of an increasingly global dairy sector – and maintain their focus on long term sustainable servicing of growing demand.

The still bright future for dairy won’t alter the need for producers to understand the market they are servicing, stay on top of production costs and continually seek productivity improvements that support profit margins.

• Steve Spencer is a director of Melbourne-based firm Freshagenda, a specialist food analysis, advisory and consulting business.

Export index steadies in September FRESHAGENDA’S AUSTRALIAN export index finished Septem-

ber at 165 points, losing 3% over the month.

While not the recovery we would hope for, it is an improvement on the 12% decline recorded in August.

A falling Australian dollar did much to offset the impact of a 9% decline in US$ denominated dairy commodity prices.

SMP continued to lead the downward march in value this month, down a further 12% after falling 15% in August.

Of particular concern to Australian exporters, cheese prices fell significantly in September, down 11%

after prices rallied in the first week of September. WMP prices fell 4% over the month, while butter prices were steady.

Increased supplies and lacklustre demand continue to weigh on the international dairy market, with prices still testing the “bottom”, and the index approaching levels last seen in mid-2012.

The weakening Australian dollar is the one significant bright spot to emerge over the past month for Australian exporters and producers. A number of analysts are now tipping further falls to US$0.75, as the US economy picks up and Chinese manufacturing continues to slow. Keeping

commodity prices where they were at the end of September, an Australian dollar at this level would improve farmgate prices by over $1kgMS – or just under 8cpl.

The index is a lead indicator of average export returns - based on spot prices, currency movements and export mix.

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. It was set to 100 in January 2000.

For weekly updates, follow us on Twitter or visit http://www.freshagenda.com.au/

DAIRYS NEWS ON THE GO CHECK OUT THE LATEST NEWS AND INFORMATION AT

www.dairynewsaustralia.com.au Available every month

just look for the arrow!

DAIRY NEWS AUSTRALIA OCTOBER 2014

MARKETS // 17

Asian self-sufficiency quest behind Australian live export trade growth Dairy NewS aUSTraLia june, 2012

agribusiness // 17

Export demand remains strong

Cows return from milking at the Greenfields integrated dairy Requirements The Indonesian facility in Indonesia. Greenfields produces 27 million litres around standardigovernment has a cash flow considerations of milk annually, from 6000 cows, cents/litre in March (AUDand 41c/L)the to 28company plans With season 2011/12 only a few incremental change in milk production (year-on-year) to complete a second integrated byApril.

2016, requiring the sation mechblueprint target of have, in recent years, seen weeks Euro cents/litre (AUD farm 36c/L) in fromand ending, attention is now import of 8000 additional Holsteins from Australia.

Profit margins are under pressure in the focused on 2012/13 milk prices as farmanisation, and a 50% self-sufficiency many farms begin to view ers US, and in NZ Fonterra has announced consider strategies for the coming the final payout for the 2011/12 season In some domestically-focused concurrent surge in milk production rearing and selling heifers year. has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incorin feed and forage by 2020, however, it for export as a good source porating gLobaL impacT to NZ$6.45-$6.55/kg MS (AUD$4.96lower prices and reduced ‘tier JohN DropperT $5.04). one’ accesssaw are undermining prices, declin- farmer is believed that only of non-milk income.

Effectively, global dairy markets are confidence and supply stability. For GLOBAL IMPACT ing profits milk 21% of the 3.3 million At 92,340 head, live rebalancing. Lower prices will both Shifts inAMY private label contracts and promany farmers from in export-oriented BELLHOUSE slow production growth and stimulate regions, a lower price outlook relative to cessor rationalisation have seen milk production. tonnes of raw milk dairy cattle export voldemand, and as this occurs we will ultithe current season not only adds to the companies adjust their intake requireAt the same time, required each year is umes were up 6% for the mately see a price recovery. Key factors challenges of doing business, but seems ments and pricing to meet the changto watch on the global scene will be the contradict the positive medium term ing demands of a highly pressured retail Small, subsistence beef prices were high, locally produced, and that 2013/14 financial year: 15% to rate at which milk production overseas outlook of Asia-driven dairy demand marketplace. Lower contract prices and andsupply a lack of cold slows in response to lower prices, the and as a consequence, the a lackfarms, the supply gap is growing. of alternative opportuniabove the 5-year average. growth.

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 chain facilities, means that inventory of dairy cattle Domestic and foreign In total, 400,000 dairy 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 nomic growth rates that support China’s economic growth, and the value year adjusted), whilst earlyhas challenges, the underlying hasdomestradi-April (leapdirect shrank.in the recent Dairy 2012: Sit- theseconsumption investment seen cattle have been exported published 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. tionally beenandlocalised Herd and ita dairy several new dairy from Australia over the Demand for exported dairy prodever, the surge in supply has outpaced finished the March 2012 quota year upprocessconsumption a growing as opening pricerebuilding range of $4.05-$4.40/kg ucts remains a positive and will con2.3% on theing previous year. Newannounced Zealand demand providing a degree of cer-ghee, MS a full year average pricelarge range population yoghurt, homemade theandstocking of new facilities ingrowth in the market. past five years, roughly This situation has seen the scales tinue to grow with the middle class in between $4.50 and $4.90/kg MS. The tainty beyond the current adjustments. production is widely expected to finish milk.

The scaleconsiders farmsthesaw China past 18year months, equivalent to 5% of the tip well in favour of buyers in dairy mar- large emerging markets such as China, up 10% on last - a huge as Inor theraw seasons following thegovern2008 this seasonthe report wider market picwith commodity prices retreat- with changes in diet and with increasing market given 95% of NZin milk crisisof and subsequenthas com-had and summarises the many factors financial ment Pakistan a influence import Australian dairy as investment rawkets, milk national milking herd each ture 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 considerable focus on and cattle inthat record numbers production. year. ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Locally, regions have seen solid uation being of re-balancing in the export-oriented global supply growth (see chart) - with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported by a dairy supply chain. provided incentives for (85% of total exports) in For example, Anecdotal evidence 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 America. amongstdevelopment those expand- ing South Indonesia’s producing drinking milk, many farmers ern Hemisphere dairy sector 2013/14.

Greenfields suggests that many farms 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. since 2007.

Chinese quarantine currently produces 27 are starting to breed and that these opportunities freight rates). creating be a seller, all signs indicate that balprice forproduction, milk in France to of renegotiation of supply contracts This season, favourable weather con- tainty, demand has remained resilient basic farm gatethan will ultimately return.

12% fromgrowth 32 Euro ance as importing countries like China and for example, dropped further enhanced milkhave and reduced access regarding to ‘tier one’ supply. ditions have In addition, there restrictions million litres of milk raise additional heifshould not be taken for However, demographpotential opporBluetongue also influence been large dairy develannually, from 6000 cows, tunities for Australian ers specifically to sell for granted. ics make countries such opment projects funded the fact that the majorand the company plans export, leading some to • Amy Bellhouse is indusdairy exports (particularly as China and Indoneity of exported dairy cattle by international governto complete a second question whether this try analyst with Dairy Ausdue to our relatively short sia target markets for all originate in Victoria (97% integrated farm by 2016, opportunity will endure, major exporters, meaning tralia. shipping times and low ments and aid organisain 2013/14).DairY, ASEAN-Australia-New while others question the tions, and dairy processors requiring the import of austraLian rice and wine exporters to Zealand FTA (AANZFTA).

Other markets have dif8000 additional Holsteins impact it may have on have invested heavily in “Protectionist sentiMalaysia are the biggest ment over agricultural winners a free trade ferentin quarantine requirefrom Australia. domestic production in the establishment of cold goods is rife and growagreement (FTA) signed mentstheand protocols, andthe globe, This should help the destination markets. chains in remote dairy ing across so to provide portion pack between two counaustraLian FooD this context it isproducing pleas(200-330ml) configuramonth.an outletinfor company Freedom Foods canlastoffer to maintain a level of This makes it timely to tries areas. ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a farms are, for togeodemand from Indonesia take a look at the driving forge an agreement These factors, couseven yearsthat of negotianew milk processing plant ucts.

Malaysia thatpled has with a population The NSW location will tions, allows a liberalised to cash in on growing graphical reasons, with locked for Australian dairy heiffactors in our main mardealt with some sensiprovide access to the most licensing arrangement demand in Asia. out of China. ers: they were our fifth kets for dairy heifers. growth rate of around 3% tive agricultural issues for Australian liquid milk The plant, to be built in sustainable and economic not effectively covered by exporters and allows southeast Australia, will be source of milk. Pactum has One such market is largest market in 2013/14, China was Australia’s per annum, and a high AANZFTA,” says Fraser. strong links to the Austraaccess for higher value the first Australian greenSealing the deal: Malaysian “While under the products. which began fields expansion in UHT in lian dairy industry and will Pakistan, andMustapha have Mohamed taken 25,718 head biggest customer for dairy retail rate of urbanisation, hastrade minister with Australian counterpart Craig Emerson after signing the deal.

AANZFTA agreement expand its arrangements It guarantees Aus10 years. importing dairy cattle products in 2013/14, but seen volume sales of dairy over the past 10 years. most of 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 from Australia in 2007/08, products increase at an It is evident that there has been the dominant 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 taking 7% of exports a strong appetite buyer for our dairy cattle average annual rateand of border’for restrictions.” muchis remains to be done processes dairy(6,425 and rice are two sec- laration try.

It also allows open plant. Some of its products for Australian milk supply The FTA was signed on farmers to improved marketing tors where incremental – value-added, sustainable access arrangements from(making will be sold in Australia. head) in 2013/14 domestic production since 2008/09.

10.3% per annum betweenfor Australia’s May 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improveand export focused.

2023 for Australian rice The company says them oureliminated third largest China, Paki- Trade and Following slow but 2008 and 2013.

by Australia’s of thegrowth Asian regionin and commodities. ments have been negotiInitially the plant will with all tariffs given Asian consumCompetiveness MinisThe Malaysian market beyond. ated under the Malaysian produce 250ml and 1L by 2026. ers’ rising incomes and market). stan and Indonesia, which steady growth between Indonesia (Australia’s 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 Pakistan one of“This thetrade dealfifth suggests that continued 2009 and 2012, domesmarket for now throw Malaysian counterpart its attention lion in Australia agriculwas largest line capable of 100 milFederation says the is trade there will grow for qualtowards ensuring agricul- Mustapa Mohamed. tural exports – including also particularly imporlion L. The processing and will improve interity dairy products from largest producers of milk demand for dairy heiftic milk production is esti- deal dairy products by volume) 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 will be as well-positioned centreers in completed sugar export1market and as dairy that have produces been less carbon, use less water, Australian(over agricultural such as Australia, whose globally 36 million can beFTAs expected from mated to have fallen more for over million in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disand be more energy-effigoods. milk is well regarded. in 2013, although major than 6% between 2012 and tonnes tonnes market. of milk annually Chinathese as Malaysia’s closest tradand Indonesia as buyers. advantage in Malaysia cient than equivalent “After seven years of The new plant will Blue-Prairie He-Man #1530 ing partners infor ASEAN, priorities.

With630,000 an annual economic compared with New Zea- over UHT facilities in Austranegotiation, the NFFis is buffalo), allow Pactum to meet the majority demand 2013 (2,370,000 tonnes) from dairy immediateMeanwhile, “These are all markets and in some cases better. growth at about 5%, land which already has lia and SE Asia. Pactum under no illusion of how growing demand for and imports very dairy products in China following government cows, mainly on small The FTA will guarantee growth Malaysia forms an impor- with enormous a completed FTA with expects site preparation to challenging it has been to little UHT dairy milk, and add tariff-free entry for 97.6% opportunities and where tant part ofan the average ‘Asian begin in October 2012 and complete this FTA withfromMalaysia to capacity for valuedairy product Aus- in place.”holdings and Indonesia is expected emphasis on quality and with PO Box 7538 • Shepparton • 3632 Victoria 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 Phone (03) 5831 5559 • Fax (03) 5822 0005 tralia. toagriculture continue faster scale in milk production. of four cows. from Australia once it still growing opportunity this presents trade in nals some administrative Pactum makes UHT dent Duncan Fraser says. its Sydney factory. Pactum info@wwsaustralia.com • www.wwsires.com

STRONG PRICES and

Malaysia FTA benefits dairy Freedom

Foods plant targets Asia

The FTA will fill a number of gaps within the

benefits for Australian agricultural export-

for Australian agricultural producers, says Fraser.

exist, not only through tariffs that restrict trade

enters into force. This will rise to 99% by 2017.

is expanding its capabilities at the Sydney plant

products for private label and proprietary customers.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

18 // BREEDING MANAGEMENT

Mating management refresher worth it Christmas comes but once a year, and so does mating on most dairy farms, so there’s plenty of time to forget best practice one year to the next. Andrew Swallow reports.

CAN YOU make a paper

dart in 30 seconds? Would it hit your target if you did?

With practice, maybe, but given the paper and told to go for it, few can,

and so it is with mating management on a dairy farm; trouble is, missing

that target costs $200 per cow, per heat missed.

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ing officer Erin Sinclair used the analogy at one of a series of mating workshops the levy body has been running in New Zealand.

“The end result was a few [of the darts] worked but there was a big range in performance,” she pointed out.

Had the dart makers been selected for their skills, briefed on what was required, and given some time to practice, and, if necessary, tuition, a lot more darts would have hit the mark, she explained.

And so it is with mating management on a dairy farm. Pre-mating is the ideal time to make sure the team know why accurate heat detection is important, and how to do it because “there’s nothing riding on it.”

“Getting someone to explain what they’re doing and why is a good way to check [skills]…. Doing it during mating is a wee bit late because we know every missed heat costs at least $200 in lost production.”

Ms Sinclair added farm staff should be made aware that better mating management will mean a tighter, easier to manage calving for them the following spring, and hopefully a break between calving and start of mating.

Fellow presenter Amy Horrell, of LIC, suggested occasionally stopping the platform in rotary sheds and asking staff “would you, or wouldn’t you, put her up for mating?”

Some farms put photos

LIC’s Amy Horrell reminds delegates of what to look for.

on the shed wall to establish standards on how much tail paint they expect to see rubbed off if a cow’s on heat, she added.

Besides getting the team’s eyes in ahead of the real thing, recording pre-mating heats will help identify non-cyclers so interventions can be considered and, come mating, the date of a premating heat provides a cross-check on cows where there’s doubt about whether or not they’re on heat.

Even for experienced staff, because the AB season is only for a few weeks a year it’s worth running a refresher to ensure everyone’s up to speed, said Ms Horrell, and having a back-up plan in case the main person responsible for heat detection is unavailable.

Using at least two forms of heat detection is advisable: tailpaint or other form of heat detector plus observation in the paddock for example, “especially for that second round of AB when everyone’s getting tired.”

Heat detectors and/ or tail paint need to be applied correctly – with Kamars the arrow must point to the animal’s head and be in the right place – and in the right place allowing for the size of the cow. Tail paint needs to be worked into the hair

and regularly touched up.

“Wait a day if it’s raining.”

Trim hair to 1-2cm and warm glue so heat detectors stick well.

Observation in the paddock should be midway between milkings not immediately after (all eating) or immediately before when cows will be queuing to get to the shed.

Cows on heat will be in sexually active groups (SAG) riding each other, often around the water trough, though sometimes younger, less dominant cows are harder to spot as they are only on the fringe of such activity.

Even if a cow isn’t spotted in a SAG in the paddock, there are other tell-tale signs such as mud marks down the flanks, restlessness, poor milk letdown and mucus around the vulva. A system is needed to ensure team members communicate such observations effectively to whomever is in the shed and the cows get checked and drafted accordingly.

If in doubt about a cow, draft anyway then observe how she behaves with the other cows on heat. If she stands off from the group, put her back with the herd and don’t serve.

If she’s on heat, she’ll be mixing it with the rest of them, suggested Horrell’s colleague Andrea Dixon.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

BREEDING MANAGEMENT // 19

Thinking small a successful strategy in the west GORDON COLLIE

Luke and Vicki Fitzpatrick with their children, Ben and Holly, and Luke’s parents, Darrell and Helen.

“SHRINKING” THE size of their

dairy cattle while maintaining milk solids production has been a successful strategy adopted by a young Western Australian family.

Vicki Fitzpatrick has introduced Friesian genetics from her native New Zealand to the property she and her husband Luke operate at Waroona, about 150km south of Perth.

They began moving their focus from North American genetics in 2008 and Vicki said the impact was evident from the first calving.

The cattle were much more suited to their pasture-based production system with better feed conversion efficiency and bottom line profitability.

Their processor Browne pays on the kilos of solids they produce in the 27 litres each cow averages per day.

About two thirds of the herd is Friesian with the balance FriesianJersey cross.

“The cattle are shorter and stockier. They stay in condition better and calve more easily. We select for fertility as getting back in calf is critical,” Vicki said.

“We’ve seen a noticeable improvement in their udders and a nice temperament too. We are rapt at the change.”

Their milkers are holding condition under 500kg, performing well against the rule of thumb that an animal should produce more than its body weight of solids each lactation.

“The crossbreds are smaller again and are super-efficient animals,” Vicki said.

“We are probably averaging about 560kg of solids across the herd which

Breeding indexes A COMPREHENSIVE review of the

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■■ A Health weighted index that focusses on improved fertility and survival (longevity).

Michelle Axford from the Austra-

lian Dairy Herd Improvement Scheme (ADHIS) said the proposed new indexes took into account feedback from farmers, industry and scientists.

“Three breeding indexes will give farmers more choice. This Balanced Performance Index will align to the breeding priorities of most Australian dairy farmers,” Mrs Axford said.

“The type and health weighted indexes will suit farmers with different breeding philosophies.”

The new breeding indexes are expected to be launched with the next release of Australian Breeding Values (ABVs) in April 2015.

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is very pleasing considering we don’t feed a lot of grain.”

“It’s all about making the best possible use of our grass-based feed ration and the smaller framed animals have proved very successful for us.”

The small farm which the couple are in the process of acquiring from Luke’s parents Darrell and Helen is steeped in family history going back more than 150 years.

Luke’s great grandfather Patrick was an Irish immigrant who moved west chasing the lure of a fortune in gold mining before clearing a bushland block to commence dairying.

A trained mechanic, Luke came

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Herd transformation

back to the family farm milking less than 100 cows on about 100ha and set the family enterprise on a steady growth trajectory, acquiring and leasing more land.

Vicki grew up in New Zealand and

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PO Box 7538 • Shepparton • 3632 Victoria Phone (03) 5831 5559 • Fax (03) 5822 0005 info@wwsaustralia.com • www.wwsires.com

TO PAGE 20

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DAIRY NEWS AUSTRALIA OCTOBER 2014

20 // BREEDING MANAGEMENT

Thinking small a successful strategy FROM PAGE 19

brought a science background to Australia, having graduated from university in botany and zoology with a Masters in plant ecology.

“I was always

interested in natural systems and how they work, animals, plant and animal interactions and breeding animals.”

She came to Australia to work in dairy programs with the WA Government

on milk production protein levels and milk composition research. A move into dairy consulting and contract research led her to meet Luke when she visited the family property while undertaking milk

composition research.

Her science training has been put to good use managing soil health and plant interaction to maximise feed production.

Vicki said local conditions were

Darrell Fitzpatrick

challenging for dairying with no rain from the end of the year until the season broke traditionally in late April.

“We don’t get our first grass coming through until late May and early June so there is a significant feed gap to fill every year.”

They rely on intensive pasture production from about 16ha of irrigated perennial rye and clover, living with the reality of severely restricted allocations from Harvey Water.

Luke is a director of the South West Irrigation Management Cooperative which sets water allocations each October according to levels in several dams through the region.

“Planning for a 50% water allocation in recent years has been prudent just to see the ryegrass through.”

This year a 70% allocation – about 350 of their 500 megalitre entitlement – will give them the flexibility to plant a block of millet to augment fresh feed supplies and help reduce their reliance on grain feeding.

Plastic wrapped silage bales are fed in the paddock with grain through the bails averaging about 1.1 to 1.2 tonnes per animal a year.

This can vary from as low as a kilo when grass is plentiful up to 6kg through the hardest part of the season from February to April.

Vicki said the couple had moved from a continuous all-year calving routine to batch calving about two thirds of the herd from March to May and one third from November to December.

“The aim has been to make maximum use of our grass when it is most plentiful in June, July and August and our margins are at their highest.”

The three month gap between each bunch of calves has proved beneficial, particularly allowing them time to

focus on the busy silage production period during October.

With a milking herd increase to 180 cows planned to come into production in July this year, the couple had begun planning to replace the small herringbone dairy which had served the family for more than 40 years.

But slow planning approvals and delays meant they had to think of innovative ways to push the expanded herd through their eight-a-side double up herringbone in an acceptable time.

Improvements were effected to cow flow through the dairy and they installed new milking cups and liners which have proved a great success.

The light weight cups with vented mouthpiece triangular liners have virtually eliminated cup slippage and allowed an increase in vacuum pressure to speed up the milking.

Each set weighs about 1.7kg compared to their old cups with weighed about 2.5kg.

“The change has been brilliant,” Vicki said.

A milking which used to take about two and half hours is now completed in about two hours and 10 minutes.

The experience has caused the couple to re-think their plans and instead of building a completely new dairy they will now refurbish and upgrade the existing facility at about half the capital outlay.

They plan to extend the system to a 12-aside herringbone and install automatic cup removers, an electronic identification system and electronic drafting.

Vicki expects the extra stalls and modernisation to save them at least another half an hour every milking.

DAIRY NEWS AUSTRALIA OCTOBER 2014

MANAGEMENT // 21

Back to basics approach requires feed changes RICK BAYNE

SIMON ELLIOTT’S

move from north to south of the Princes Highway in south-west Victoria took him less than 100km but forced him to adapt to a whole new set of weather conditions.

The move last October from Tarrone to Scott’s Creek saw Simon and his wife Shelley more than doubled the size of their herd from 140 to 330 on a much larger leased 215ha farm.

It also led them to reconsider their feeding and hay and silage regimes to adapt to the new conditions.

“We don’t regret the move. It’s certainly a lot easier over this side of the highway than the other side,” Mr Elliott said.

“But it’s been an inter-

�

esting scenario dealing with the different weather conditions, utilising paddocks, pugging and how much you can do with tractor work. It’s a learning curve.”

The Elliotts believed that the extra land would keep the cost of production down by growing more grass instead of buying in more feed.

It’s worked to a degree but their silage result wasn’t good.

“We trialled a few different ideas to get them back to producing off grass and using our silage through the tougher months,” Mr Elliott said.

He soon found the window to cut silage on the south side of the highway was very short.

“We cut a heap of silage last year and weren’t really happy with the quality of it. For the amount of

investment you put into it, I don’t believe you get a return on it,” he said.

“We’ll weigh up, depending on the season, whether we can source better quality silage than we can produce ourselves.

“Depending on what the season is like up north, we might be better buying in hay and silage than producing it ourselves.”

Last year the farm cut substantial amounts of silage but the Elliotts were concerned not only about the quality but the costs.

“You don’t usually cut it off your main milking platform, it’s usually at the back of the farm so it involves a truck and a couple of tractors,” Mr Elliott said. “By the time you lock it up, fertilise it, get someone in to wrap it and bale it, I don’t think

�������������

WHO:

Simon Elliott WHERE:

refining everything we do as a farmer but we’re not refining it to make more money.”

Mr Elliott believes that “back to basics” should also apply to artificial insemination, calving and other expenses.

“There are so many more cost factors that

have come into dairy farming but the milk price hasn’t moved with the all the extra expense,” he said.

They sell a percentage of heifers for export but Mr Elliott says it was a “false economy” if dairy farmers rely on this income. “It’s something

that should be a bonus, not something you should need to have for survival,” he said.

“It’s only China pushing the market. If they turn around and only pay $800 then that’s it, but on the other hand it’s going to be a problem if we keep exporting so much.”

Scott’s Creek WHAT:

Back to basics

there’s much difference to buying better quality hay from up north.”

They plan to use a bigger milking platform this year for more direct grazing, supplemented by better quality imported feed.

“Unless there’s a big window to do silage, it would want to be a lot better quality. I reckon you’d be better off milking a few more cows than picking up the extra expense of that. You’ve got to weigh up quantity versus quality.”

Mr Elliott advocates “getting back to basics” in dairy farming.

“Everything’s gone too far. Every time we’re told to put more and more into our cows to produce, but it makes you think about what the cows used to eat. The old farmers used to just throw them a bit of hay and they did well. We seem to be

L A I C E SP T R O P E R NEXT ISSUE: NOVEMBER 2014 EFFLUENT & WATER MANAGEMENT In the face of tighter environmental controls and rising fertiliser costs, it pays dividends to manage effluent and water flows more tightly. The next issue of Dairy News Australia will cover best practice in this area and will profile new developments and equipment designed to turn a problem into potential profit.

BOOKING DEADLINE: October 29 MATERIAL DEADLINE: November 4 PUBLISHED: November 11 CONTACT: CHRIS DINGLE T: 0417 735 001 E: chris@dairynewsaustralia.com.au

Dairy News AUSTRALIA october 2014

22 // management

Is it true pasture surplus?

Rick Bayne

DAIRY FARMERS should only

conserve what is a true pasture surplus and should focus more on direct feeding this season, a southwest Victorian workshop has been told.

DEPI grazing and forage management specialist Michele Ryan said farmers need to create a feed plan based on growth being slightly lower than expected this year and with only limited good quality hay from the Wimmera-Mallee.

Speaking at a Managing Surplus Grass workshop presented by the Warrnambool YDDP and Cooriemungle Discussion Group, Ms Ryan said farmers should focus on making good quality silage but not cut unless they need to.

“Focus on only conserving the true surplus,” she said. “Only con-

serve what you can’t eat. Don’t ber but this year a lot of people keep paddocks locked up to cut if it are thinking of going around the means in three weeks you’re look- middle of the month. The plant is ing at that paddock and thinking already starting to move through the reproductive process so even can I open that silage now. if we do get rain we “It’s better to may not have the open the gate to leaf in it,” she said. let the cows back “Focus on only Ms Ryan said in rather than cut it and wait and conserving the farmers should aim for good quality think ‘how long true surplus.” silage and make sure does it have to – Michele Ryan they cut at early ear be kept as silage emergence. before I can feed She recomit out’.”

Farmers in the region are get- mended using up to 50kg of nitroting ready to start cutting in mid- gen per hectare to boost yield and October, about two weeks earlier quality.

“That will lift protein levels in than usual.

“A lot of ryegrass seems to be a the plant and also the ME metabcouple of weeks ahead of where we olise high metabolisable energy would normally expect it to be,” Ms (ME),” she said.

“For every kilo of nitrogen put Ryan said.

“Most cut silage the last week on you get up to 15kg of dry matter. of October or first week in Novem- You’re able to boost yields but also

improve quality as well.”

Farmers should cut four-six weeks after application to get the best results.

“If you go over six weeks after application you see a rapid drop in quality; you end up with quite a large yield but not a very good crop,” Mr Ryan said.

Farmers at the workshop were advised to push grazing at canopy closure, make sure they get 4-6cm grazing residuals, as this will help tillering in the perennial ryegrass and reduce the potential of aerial tillering.

“If you’ve got areas of the farm you know you can’t get machinery on, push them hard and leave other areas that you know you can get machinery on,” Ms Ryan said.

She added that key points to making good silage included doing it quickly to avoid losing quality and using tedders.

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Regrowth brassicas a good fit for summer FORAGE BRASSICAS provide an excellent source

of nutrition for cows at times of year when pasture quantity and quality is low.

While turnips may be considered the cornerstone of forage brassica crops, recent studies have looked at the advantages of regrowth brassicas, which are able to regrow after the aerial part of the plant is grazed.

Regrowth brassicas include species such as kale, leafy turnips, forage rape and hybrids like Pasja.

Dow AgroSciences crop insecticide development manager, Paul Downard, says regrowth brassicas can be a great fit on the farm heading into summer, as they utilise late spring moisture and can continue to grow valuable feed into the following autumn and winter, provided crop density is good at the end of the summer.

“Forage brassicas offer the advantage of providing a break in the cycle of weeds and disease as well as emitting bio-fumigants which can inhibit the growth of disease-producing organisms and reduce the incidence of nematodes,” Mr Downard said.

“In addition some regrowth brassicas have a root system that increases soil aeration and water movement for subsequent crops.”

In comparison with other brassica crops, regrowth brassicas tend to have higher growth rates in the initial stages and therefore can be available to graze in the cropping cycle.

Provided there is enough irrigation or rain after the first grazing they will provide enough dry matter for multiple grazing events.

Mr Downard said in drier areas, regrowth forage should be heavily used during the first grazing in case regrowth does not occur.

“Where there is enough water it is advised that about 40% of the dry matter available is left post-grazing, so as to achieve a quick regrowth.

“The continuous addition of brassicas to the diet means that cows are not having to continuously adapt the rumen and digestive system to dietary changes, thereby minimising the loss of milk production caused by such changes.

“It is advised that cows consume no more than 5-6 kg of dry matter per grazing in order to avoid any metabolic issues and thus ensure the best results.”

Mr Downard said the insecticide, Success Neo, can be used in both forage brassicas and regrowth brassicas.

It has a seven day withholding period, is soft on beneficial insects and is harmless to ladybird beetles, lacewings, big-eyed bugs, pirate bugs, damsel bugs and spiders. It has excellent control of diamondback moth.

“These beneficial insects can aid in the extended natural control of insect pests and reduce the likelihood of secondary pest outbreaks, helping extend the life of regrowth brassicas.”

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Dairy NewS AUSTRALIA october 2014

management // 23

Mastitis test results in only 40 seconds TWO AUSTRALIAN

dairy farms are getting exciting results with a new, rapid on-farm mastitis test.

The RT10 Dairy Quality device operates off an iPhone 5 or iPod and gives cell count and pathogen recognition within 40 seconds of testing on-farm.

It is also the only device in the market that gives a visual image – a powerful and self-explanatory motivator for dairymen.

The software was launched in Australia recently. It carries pathogen recognition for Staphylococcus aureus (Staph Aureus - which is chronic and often sub-clinical mastitis), Streptococcus Agalactiae (Strep Ag), yeast and acute mastitis. Environmental pathogen recognition and pregnancy testing (via milk samples by 18 to 20 days pregnant) will also be available by the first half of 2015.

Bart and Tracie Doohan, from Finley NSW, have been among the first to introduce the device on-farm. For eight of the last 12 years they have been listed in the top 100 herds in Australia for low SCC. They hover between 100,000 and 130,000 on their herd of 400, without herd testing. Making their achievement more significant is that they are growing their herd on a new farm. More than 20% are aged more than 10 years.

In the last six months they have had some issues with their SCC and they got a couple of surprises when they started testing with the RT10.

“We were jumping up and down a bit with the SCC and when we peaked at 180,000 that was too high for us – unchartered waters really,” Mr Doohan said. “We wanted a tool to get to the bottom of it. We had some cows we had treated and they were pulling clear, but when we tested them with the RT10 device we were finding some of them were still not right by a long way – so we had a sub-clinical issue.

“It also identified which mastitis infection they had, so we were able to treat them accurately.

“On the flip side I had

a cow that just looked to us like she was a high SCC cow so we had her on the bucket feeding the calves all the time. I tested her and she was 4000, so she went back in the vat.

“What it does is give us a definitive answer in under a minute. Our last herd SCC was 120,000 and we’ve been as low as 90,000 since we bought it.

We’re also testing most of our fresh cows so it’s paid for itself pretty quickly. I love how quick, easy and accurate it is.”

Leesa Willmott and her partner Paul Reiter, from Kilcunda in Gippsland, found the same results.

This is another dairy operation that is conscious and proud of its SCC. It is routinely in Australia’s top 100 operations for SCC. Acknowledging that their herd is smaller at 120head, detail is still important to achieve results and things can easily unravel.

“It’s been a great decision for us,” Ms Willmott said. “We haven’t ever been penalised because we haven’t historically had any issues. But we recently had a couple of things I was concerned and frustrated about.

“I had a cow I had treated and I was about to put her milk back in the vat. We checked her with the RT10 and she still had a SCC of 450,000, so she wasn’t good to go. Without the test she would have been an ongoing problem for us, including her lowered milk production and general health.”

Since adding the RT10 to their management toolbox, the herd has been listed in the top-three SCC herds for Murray Goulburn suppliers (for a 10-day period) with a herd SCC that is routinely running between 32,000 and 55,000.

“For farms that do have some issues this device would save them money and headaches,” Ms Willmott said. “And I love how quick and simple it is to use.”

The device’s inventor Steve Mangan, from Ontario (Canada) was recently at the World Dairy Expo, showcasing the patented software within

Dairy Quality Incorporated. Mr Mangan is also the developer and inventor of the Delaval Milk Master system and 70% of the industry’s Automatic Cup Removers incorporate technology Steve designed.

His credibility is well established.

The RT10 is already operational in 15 countries.

It will retail in Australia for about $2000. Inquiries: (03) 544 88 11 9 or email dqdevice@gmail.com

Australia’s Phil Malcolm (left) and RT10’s inventor Steve Mangan, from Canada, caught up at the World Dairy Expo to discuss RT10’s impact on mastitis control within Australia.

Photo: Dianna Malcolm.

DAIRY NEWS AUSTRALIA OCTOBER 2014

24 // ANIMAL HEALTH

Tube feeding calves questioned ANDREW SWALLOW

DO YOU routinely tube feed calves?

Post-mortems on tubed animals show damage to throat tissue is common, as is milk getting into the rumen rather than the abomasum, says a New Zealand research scientist.

“The rumen should be 10-20% of the stomach in young calves but where they’ve been tubed it’s often distended and full of rotten milk,” Dr Lucy Waldron of LWT Animal Nutrition, base in Feilding, NZ, said.

“When you cut them open it stinks: a calf’s stomach shouldn’t smell

Tubes can direct milk to the wrong place.

at all. The milk cal damage should all be in observed, milk the abomasum in the rumen and like cream provides a subcheese.” strate for bacWhile she teria which is acknowledges likely behind the reason dairy Lucy Waldron many cases farms reach for of persistent the tube – time pressure scours and could well lead and to ensure colostrum to less than optimal rumen is received – Dr Waldron function later in life, Dr said using such devices Waldron said. is doing more harm than “It’s very hard to shift people realise. a population of bad or “We’ve often seen pathogenic bacteria once lesions and tears in the they’re in there.” oesophagus where calves To ensure milk makes have been tubed and we it into the abomasum it won’t buy them now. needs to trickle down “All our calves for the oesophageal groove research are picked up through the stomach, straight off the farm, not flood in as it generstraight off their mothally does from a tube. The ers.” suckling action is also Besides the physiimportant.

“You can’t guarantee it’s getting in the right place with a tube.”

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DAIRY NEWS AUSTRALIA OCTOBER 2014

ANIMAL HEALTH // 25

Attention to detail can lift calving rates A CRITICAL cog in the

wheel that is dairy farming is the need to get cows back in calf so that they will calve again, and begin a new lactation each year.

In our part of the world, October is the time when we start to turn our attention to getting the spring calved cows back in calf.

The six-week in-calf rate after the mating start date is one of the key performance indicators that impacts significantly on profitability on a dairy farm.

For many years, I have told farmers that no cow has ever gotten pregnant without first having a dose of semen in her.

So when I am asked for advice about herd reproduction problems a lot of my focus is on ensuring that every cow is submitted to a mating as early as possible in the mating period.

Reproductive success can be achieved in many ways but the things that every successful mating program have in common are attention to detail, consideration of all the influencing factors and a sound application of knowledge of the bovine reproductive cycle.

There are literally dozens of different reproductive programs out there in the marketplace, each and every one of them has a place, and each should be considered on its merits.

The key considerations that I put the most emphasis on will vary depending on each farm’s needs and facilities.

For example, there is no point trying to enrol an entire herd in a fixed time AI synchrony program if the farm doesn’t have sufficient facilities to manage the herculean task of ensuring the right cow gets the right needles at the right time and then that all the enrolled cows are able to be inseminated in a timely manner within the ideal window.

The oldest tried and true method of getting dairy cows pregnant is to AI them to observed heat.

Relying entirely on heat detection can result

can be either avoided or re-trained.

I have investigated a herd where one inseminator managed only one pregnancy for the entire season. Guess who never got invited back again.

Heat detection aids like tail paint, kamars and estrotect scratchies, etc are all valuable tools.

It is the old story of if you don’t measure, you can’t manage and the reproductive performance of your herd is no different In some herds, some or all of the cows will be TO PAGE 27

ANIMAL HEALTH ROB BONANNO in a large number of cows never being submitted to a mating at all either due to failure to actually detect heat in a cycling cow, or due to the cow not cycling at all.

Many herds at the start of mating may have greater than 20% of their cows not yet cycling, and in some instances where transition has been challenging, feed availability limiting or some other complicating factor present, the percentage of non-cycling cows can be much higher.

These non-cycling cows and cows that cycle and are not detected in heat (due to either a quiet or very short heat) will never get pregnant, so a strategy to deal with them is a critical component of the success of any mating program.

Heat detection aids like tail paint, kamars, estrotect scratchies etc are all valuable tools.

Increasingly, I am finding herds relying on other technology like pedometers, activity meters and even their robotic dairies to detect heat.

Knowing that no single method is perfect, and the more aids to heat detection that you can use, and then adding to that just good old fashioned time observing your cows, are the essential ingredients when using a program that relies on the detection of heat in order for a cow to be mated.

Attention to the small details like semen handling and thawing, stress free cattle handling, excellent semen placement by a skilled technician are also critical factors to success.

I suggest that you record with the mating who it was who inseminated the cows so that if one or more inseminators are performing significantly below average they

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DAIRY NEWS AUSTRALIA OCTOBER 2014

26 // ANIMAL HEALTH

The correct time to wean WEANING IS the time

when milk feeding completely ceases. The timing of weaning can vary and the decision to wean has historically been based on many factors.

These could include the age of the calf, the weight of the calf and the timing of other management decisions, such as turnout and dehorning.

This article discusses the aims of weaning, the indicators of when an animal is ready to be weaned and tactics to

GEMMA CHUCK

achieve optimal growth in the post-weaning period.

The transition from calf to cow The pre-weaned calf

relies primarily on digestion of milk in the abomasum (the fourth stomach) and small intestines.

In the very young calf, the first three stomachs (reticulum, rumen and omasum) are not developed and the calf is considered to be a “simple stomached” or “monogastric” animals at this early age. A little bit like ourselves.

A successfully weaned heifer is far from being a “monogastric” animal.

She is a ruminant

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the number and length of which means she relies these papillae, along with on the digestion of the microbes present in plant-based food by ferthe rumen to help fermentation, in a specialmentation. ised stomach called the Traditionally, it was rumen. thought that feeding The presence of bacroughage (fibre) to calves teria and other microbes promoted their rumen within the rumen help this fermentation process. development.

The At weanThe earlier so-called ing, the calf “scratch no longer a calf starts factor”, has access to consuming where large a milk diet. grain, the particles and In order to more quickly fibre scratch grow and the rumen thrive, the the rumen lining to calf needs a develops. stimulate fully funcProlonged papillae tioning developrumen to be milk feeding ment, is now able to utiwill not considered a lise all the promote myth. nutrients Research from a non- rumen development. has shown milk diet that it is in (grain and fact grain that stimulates forage). papillae growth by proIf the rumen is not duction of volatile fatty developed and prepared acids, such as butyrate. for weaning then the calf High forage diets result will not be able to utilise in production of acetate, these nutrients to mainwhich does not promote tain herself and grow. papillae development.

This can result in a Therefore, to obtain high decrease in growth rate levels of butyrate, a rapafter weaning, the soidly fermentable, highcalled “post-weaning quality calf starter or slump”.

Therefore the primary grain must be fed.

The earlier a calf starts goal of the milk-feedconsuming grain, the ing phase and lead-up to weaning should be to pro- more quickly the rumen mote rumen development develops and the sooner so that weaning can occur the calf is able to maintain and grow on a nonas smoothly as possible. milk diet.

Rumen development: Prolonged milk feeding The Myth of the Scratch will not promote rumen Factor development. This leads The lining of the rumen is composed of fin- us to the question: ger-like projections called When is the right time to wean? papillae.

With our knowledge of These papillae increase rumen development, the the surface area of the best indicator for weaning rumen for absorption of is based on consumption nutrients. of calf starter/grain.

The term ‘rumen development’ reflects TO PAGE 27

DAIRY NEWS AUSTRALIA OCTOBER 2014

ANIMAL HEALTH // 27

Attention to detail can lift calving rates FROM PAGE 25

submitted to a Fixed Time Artificial Insemination (FTAI) program.

There are a number of different FTAI programs that are used on dairy farms, and it is always best to seek independent advice from your veterinarian before launching into a whole herd FTAI program as it may not always be the most cost effective method of getting your cows in calf.

However, FTAI programs are now

widely recommended by most veterinarians when working with the proportion of the herd who are anovulatory or anoestrus, and intensive monitoring for return to heat or very early pregnancy diagnosis for those who do not return is my go-to strategy when dealing with these cows to avoid the phantom cow phenomenon (where previously mated but not actually pregnant cows fail to return to heat for a prolonged time).

Early treatment of noncycling cows and early intervention to detect and re-mate the phantom cows is another key strategy to ensure good reproduction outcomes in your herd There is no better qualified professional to work with you to develop a cost effective program that works for you in your best interest (not just to

sell you the most doses of semen) than your own herd veterinarian so when thinking about your breeding program this spring, contact your local dairy vet for advice.

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

Seek advice from your vet before launching a whole herd FTAI program.

The correct time to wean FROM PAGE 26

Size, weight and age are not accurate estimations of an animal’s rumen development and functionality. For example, the rumen of an 80kg dairy calf consuming 1.75kg of calf starter per day will be very different from an 80kg milk vealer calf on a high volume milk diet.

For calves in a group fed system, where accurate grain consumption per calf can be a challenge, it is recommended to monitor on a group basis over three consecutive days. As a guide, in group fed systems:

Friesians 1.5–2kg/day* Jerseys 1–1.5kg/day* *Based on calf grain containing 18-20% crude protein.

The stress of weaning Weaning can be a stressful time for young calves as they no longer have access to a diet to which they have been accustomed.

Overwhelming stress can lead to disease as stress releases cortisol, a hormone which can suppress the immune system and reduce the ability to fight disease.

Subsequently, the calf can succumb to a disease which it would otherwise have been able to fight

off, had there not been a stressful event.

Weaning will be more successful if calves are exposed to only one stressor at a time.

Tips for a stress-free weaning include: ■■ Vaccinate and dehorn calves at separate times, prior to weaning.

■■ Ensure grain is available to all calves at all times. Monitor grain intake on a pen-by-pen basis and keep records of consumption per pen. This will allow an estimation of grain intake per calf.

■■ Provide ad lib fresh water from birth.

■■ Transport and/or turnout calves before or after weaning.

■■ Wean during good weather if possible.

■■ Weaning can be gradual or abrupt. Gradual weaning e.g. over 7 days, is less stressful than abrupt weaning.

Successful weaning and post-weaning growth will ultimately depend on a number of factors.

Optimal nutrition to promote rumen development and minimising stress, will help enable the “monogastric” calf to become a fully functioning ruminant, without an adverse effect on growth.

• Gemma Chuck is a veterinarian with The Vet Group.

SCOURS CAN CHANGE THE FUTURE FOR YOU AND HER. PROFESSIONAL PROTECTION FROM YOUR VET.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

28 // TRACTORS & MACHINERY

Italian wagon suits cut and carry system GARY BUDGE from Nanneella, near ing at Timboon. The Bonino machines Echuca in northern Victoria, had been are manufactured in Italy and sold here convinced for quite a while that a cut by Greg Allan Machinery at Colac.

They both went down to have a and carry system for feeding his cows look at what was the was the way to go – and only one operating in now he’s done something Australia at the time. about it.

Mr Budge was so Garry and his wife, impressed that he purAnne, are milking a mixed chased one during the herd of around 550 cows winter this year. on a 22-unit swingover “I didn’t look at with automatic cluster any other machines removers. Mr Budge grew up share farming and they WORKING CLOTHES once I’d seen this one CHRIS DINGLE in action’’, he told us. have been on the property “I’m not that sort of now for 15 years.

He had been thinking about – and person. No doubt there are others but talking about – the ‘cut and carry’ the idea of ‘one person – one job’ with system for a couple of years. Through the Bonino suited what I wanted to do.”

The model that he bought is a a mate who was also interested in the principle, he heard about a Bonino self- Bonino AB 70 TR with a cutting width loading ‘grazer wagon’ that was operat- of 1.85 metres and a loading capacity of

WHO:

Gary Budge WHERE:

Nanneella via Echuca

Gary Budge

WHAT:

Grazer wagon

28 cubic metres.

The wagon is powered by a Deutz M600 130 horsepower tractor and the operation takes about three hours each day, roughly about half an hour per load, depending on where it is being taking to.

“We bring it back to the feedpads or

Gary Budge with his Bonino self-loading ‘grazer wagon’ which he uses for his cut and carry system.

just put it under the wire in the paddock,” Mr Budge explained. “We cut and carry enough for them to eat in one day and I do five loads each day. It’s difficult to work out what that means in dry matter.”

At the time of our visit in mid-September, he had been going full on with the wagon for the previous five weeks.

“The pastures had been ready since then”, he said. “We cut every 30 days and at the moment we are cutting shaftal, ryegrass and lucerne. We put maize and green feed on the two concrete feedpads.

“We have another property with all lucerne and our plan is to have lucerne on the go all the time.”

Mr Budge says that the best thing is that it is a one person job. “The savings are definitely there by doing it yourself instead of having to get in contractors. The machine seems easy enough to operate. It has a touch monitor. I’m happy with it.”

The Budges use contractors to do their baling and bulk silage, which is mainly maize and vetch. They have a JCB telehandler to manage the pit silage and they have another Deutz tractor that was bought three years ago to feed silage.

They also have a Schuitemacher

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silage cart on the place that they purchased second-hand.

“Last season we made 800 dry tonnes of maize and bought in another 200 tonnes. This year we plan to have 1000 tonnes grown here of maize – it will go in when the vetch crops come out.

“I can get three cuts out of shaftal and ryegrass before we put in the maize.

It’s generating money on the day I cut it, straight to the cow and it’s milk the next day.”

Mr Budge says that with the price of water you have to pay particular attention to what it goes on. “We are always looking at ways to improve the cut and carry job. We are working on improving pasture production and to achieve a flat production with constant feed. We have some grazing on the main farm, but the main focus is on cut and carry. You are burning energy to make silage. Feeding the cows green feed means feeding them energy.”

In the future he says that an underpass will aid access to their blocks and better utilise the properties over the road. “We are looking at the moment to changing to a 22 double-up shed to save time, and we may enlarge the herd in the future. Never say never!”

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DAIRY NEWS AUSTRALIA OCTOBER 2014

TRACTORS & MACHINERY // 29

Self-propelled harvester trial THE 8000 Series Self-Propelled Forage Harvesters integrate cuttingedge crop analysis and documentation with an innovative machine design.

Forage producers no longer have to compromise between rugged harvesters and sophisticated crop analysis technology, according to John Deere.

The company unveiled its 8000 Series self-propelled forage harvesters (SPFH), which it said offers significant improvements in dependability and fuel efficiency.

“The 8000 Series builds upon the best features of our popular 7000 Series

Self-Propelled Forage Harvesters,” John Deere’s Shaun Fritchey said.

“This new series integrates cuttingedge crop analysis and documentation with an innovative machine design to provide superior efficiency, reliability and crop quality.”

The 8000 Series includes DuraDrum cutterheads and KernelStar technology. The AutoLoc (automatic length of cut) feature allows the operator to dial in the precise cutting length based on forage conditions.

Two cutterhead widths, matched to engine horsepower, are available,

so capacity can be customised for any need.

All-new header solutions and crop-flow layouts increase flexibility among different crops and provide better performance in wet or dry conditions.

Large 42-inch tyres reduce compaction while providing excellent traction in all types of conditions.

The 8000 Series provides this performance while reducing fuel consumption as much as 18%, according to the company.

Operator comfort also has been

improved, with superior visibility from the cab, as well as longer service cycles, less daily maintenance and easier access to service points.

“Repeated field research has documented consistent chopping quality in all crops,” Mr Fritchley said.

“And, more machine productivity coupled with increased fuel efficiency in all crops makes the 8000 Series a top choice for custom operators or dairy operations.”

Growers can choose among four single-engine models with standard crop-flow channels while an additional

model with a wide crop-flow channel is also available.

“Forage producers lose money each day their crop sits in field after it’s ready for harvest,” Mr Fritchey said.

“The 8000 Series maximises productivity on every hectare by enabling them to harvest as much forage as possible, as efficiently as possible.”

The all-new 8000 Series self-propelled forage harvesters will be available for order in Australia in the latter half of 2015.

Tel. 1800 800 981 to find your local John Deere dealer.

Safety, ergonomics feature in specialty tractors TRACTOR MAKER

New Holland says its newest offering, the T4.105 F/N/V, has new safety and ergonomic features.

The entire T4 F/N/V range has an upgraded hydraulic and PTO offering and a mechanical park lock, which holds the tractor dead still when parked, suiting those operating on steep terrain.

Power comes from a 4.5L turbo charged and intercooled Nef engine fully compliant with B100, 100% biodiesel. Maximum power of 106hp is achieved at 2300 rpm and a 31% torque rise means the T4.105 is able to tackle the most demanding tasks, such as power harrowing.

Operator comfort is much enhanced by a complete overhaul of the cab on the entire range.

All controls have been precision placed: all key tractor functions have been repositioned and grouped on the right hand console for immediate and intuitive operation including the rear remote valve controls, together with the front and rear linkage con-

trols. The front part of the rear fenders has also been completely redesigned to offer a more natural operating position for the throttle and clutch pedals.

The T4 F/N/V range now features a factory-fitted dedicated mid-mount block with up to four remote valves.

The zero-leakage, proportional electronic mid-mount valves are controlled by a new electronic joystick which “falls perfectly to hand” on the end of the right-hand control console. A dedicated motor connection guarantees up to 20L/minute of flow is always available, and it is activated in the cab via an on-off switch; a specific dial guarantees precision flow control.

The T4 F/N/V is good for gradients up to 45%.

So for maximum parking safety New Holland has developed the mechanical park-lock to work with the Dual Command transmission. This ensures a 100% lock on the transmission, and prevents any forward or reverse creep when parked

Power comes from a 4.5L turbo charged engine.

on steep inclines, even when a fully laden trailer is hitched. The park-lock is engaged either via a dedicated lever or via a specific ‘gate’ on the creeper lever. The parklock must be manually deactivated before drive can be engaged.

The reduction in the PTO operating speeds by as much as 5% has cut fuel

consumption. 540 PTO speed is now attained at 1958 engine rpm, whereas 1000 speed is achieved at 2000 engine rpm.

Improved PTO flexibility is a standout, New Holland says, as the speed at which maximum engine power is achieved has been matched to that of the PTO for greater flexibility under load.

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DAIRY NEWS AUSTRALIA OCTOBER 2014

30 // TRACTORS & MACHINERY

Film-on-film baleage wrapping lifts quality THE NEW McHale

Fusion 3 Plus baler allows wide polythene film, rather than netwrap, to secure silage bales before sealing with bale wrap.

One of the options for net replacement is Baletite, made by Minster Films. In 2013 Min-

ster Films commissioned Dr Dave Davies, formerly of the UK’s Institute of Grassland and Environmental Research and now a consultant, to run a farm trial to test the quality of the silage produced using Baletite instead of netwrap.

Dr Davies oversaw the production of 44 silage bales from one field of grass cut, wilted for 24 hours then baled using a McHale Fusion 3 Plus fitted to apply either netwrap or Baletite.

To ensure similar grass was ensiled in each treat-

ment, chamber wrapping alternated between netwrap and Baletite every eight bales.

In February 2014, 206 days after ensiling, 12 bales from each treatment were opened and assessed for silage quality using: a pressure test to see how

quickly the vacuum in a bale returned to normal atmospheric levels; mould assessment, i.e. weighing all the mould in a bale to assess the percentage of the bale affected; and silage analysis by taking a core sample from each bale.

+613 9768 2424 ph, +613 9768 2323 fax, sales@milka-ware.com.au

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Baletite film creates a vacuum and excludes air from the bale.

The pressure test showed that the vacuum in Baletite bales took 180 seconds to dissipate compared to the vacuum in the netwrap bales which took 20 seconds, indicating a much better seal for the Baletite bales.

The Baletite bales had a much lower mean mould weight per bale at 5.5kg fresh matter (FM) compared to 23.9kg FM for the netwrap bales.

The total silage lost, which includes storage losses plus mould losses, showed the netwrap bales lost on average twice as much DM as the Baletite treatment.

The chemical analyses of the silage by the laboratory indicated the Baletite treated bales had better quality silage.

The Baletite bales had a higher DM than the netwrap bales, and the Baletite silage had higher sugar levels (89gm/kgDM vs 70g/ kgDM for netwrap silage).

Baletite silage also had a lower pH (4.46 vs 4.52 for netwrap silage).

The results showed lower levels of ammonia-N in the Baletite bales compared to the netwrap

bales. Ammonia-N concentration in silage provides a gauge of protein breakdown: the lower the level the less protein has been degraded.

Summary figures show the film-on-film bales had: 7.5% lower DM losses than netwrap bales thanks to better fermentation; 80% lower DM losses than netwrap bales through mould; and 52% lower total DM losses than netwrap bales.

The Baletite bales in the farm trial showed better silage fermentation and lower losses than the netwrap treated bales.

This was explained by the fact that Baletite net replacement film is tensioned onto the bale in the bale chamber, forcing air out of the bale to promote faster fermentation in the early stages while maintaining a more oxygen-free environment during the time the bales are in storage.

Film-on-film wrapping also enables automation of the feeding process and easier recycling after use.

McHale equipment is distributed in Australia through PFG Australia.

Tel. (03) 9368 8888

New dairy-specific hot water system BOSCH HAS released its Dairy Gas Hot Water system in Australia, saying it will provide a cheaper, cleaner and more flexible heating solution.

Bosch claims its system can reduce operational costs by 45-60%.

The Bosch Dairy Gas Hot Water system can be retrofitted to replace conventional electricity-powered dairy systems between milkings, thus providing instant savings while causing no operational down-time.

With installation costs estimated at between $6000$8000, Bosch claims costs will be recouped within two years.

Using the latest Bosch condensing continuous flow water heater technology, a commercial grade 32 litre/ minute flow system integrates with the existing on-farm hot water cylinder. Bosch says this provides significantly lower energy costs as well as superior heat-up times compared to the electric system.

“This provides the farmer with the additional benefit of hot water on demand – so no more waiting for the electric system to heat-up or recover,” said Mark Blacker of Bosch Australia.

DAIRY NEWS AUSTRALIA OCTOBER 2014

TRACTORS & MACHINERY // 31

Boost pastures by improving soil drainage THE PURPOSE of agricultural

drainage is to remove excess water from the soil to enhance crop production.

In some soils, the natural drainage processes are sufficient for growth and production of agricultural crops, but in many other soils, artificial drainage is needed for efficient production.

Poorly drained soils become waterlogged. Waterlogging causes oxygen starvation in the root zone, retarding root development and resulting in stunted root systems and low nutrient uptake from the soil.

Waterlogged soils are also prone to structural damage if worked when wet or if compacted by livestock or vehicles.

Heavy pugging of wet soils during winter reduces the total annual pasture production.

To reduce the occurrence of waterlogging, a drainage system consisting of surface or subsurface drains in combination with mole drains can be installed.

Surface drainage is the removal of excess water from the surface of the land in a controlled manner as quickly as possible.

This is normally accomplished by either shallow spoon drains or open “V” shaped drains. It is important to realise that surface drains will only remove surface water.

The digging chain of the machine cuts a trench and the drainage pipe is laid with the backfill of gravel in one single operation.

TG Drains has two purpose built buckets for the 12 tonne excavator that can dig a spoon drain or a “V” shaped drain.

The excavator is laser-guided ensuring an even grade in the drain so water is removed quickly but doesn’t cause scouring of the drain walls or bottom.

Sub-surface drainage removes excess water from the soil profile, through a network of perforated corrugated polydrains installed 66cm to 1.3m below the soil surface, with a permeable backfill placed around the pipe.

This increases the permeability in the vicinity of the pipe, and acts as a filter preventing fine sand and silt from entering the drains.

TG Drains installs sub-surface drainage using a laser-controlled purpose-built drainage machine.

The machine, a Mastenbroek 20/15 imported from England, can cut a trench up to 2.2 metres deep.

The digging chain of the machine cuts a trench and the drainage pipe is laid with the backfill of gravel in one single operation.

The machine can be altered to lay either 100mm or 160mm polydrain.

The 100mm polydrain is often used for the lateral drains which feed into a main drain. The main drain is often a 160mm polydrain which discharges the water.

A tractor hauling a gravel trailer equipped with a conveyor belt is driven alongside the Mastenbroek

machine to deliver a continuous flow of clean, fine gravel into the machine’s hopper.

This avoids slumping of the trench walls and prevents excavated material falling on the pipe and possibly blocking the drainage slots.

The elevation of the gravel hopper at the back of the Mastenbroek machine can be altered hydraulically, allowing the thickness of the permeable gravel backfill to be varied according to soil type.

After installation, the drains are GPS mapped for future reference.

• For further information contact Tim Beets on 0409-115 474 or visit www.tgdrains.com.au

Tough pump designed for chemical transfer AUSSIE PUMPS’

unique ‘Smart Pump’ is configured specifically for the pumping of liquid fertilisers.

Nitrogen-based liquids are aggressive and will literally ‘eat alive’ conventional aluminium or cast iron pumps.

The new Smart Pump uses a 30% glass filled polyester body, impeller and volute construction teamed with either EPDM or Viton elastomers.

Apart from the real benefits of chemical compatibility, the pumps offer farmers the ability to fast fill sprayers from holding tanks with flows of up to 1000 litres per minute (lpm).

“Spraying costs big bucks so the ability to reduce filling time

is really important,” Aussie Pumps’ product manager, Adam Scully, said.

“We see farmers filling spray rigs with firefighting pumps. These take twice as long and eventually rot out.”

The Aussie Smart Pumps were originally introduced for industrial chemical handling including acids, brine and diesel fuels.

“The most popular model at the moment is a 2 inch pump with a capacity of over 800 lpm flow teamed with either EPDM or Viton elastomers,” Mr Scully said.

Sales of 3 inch pumps, with flows over 1000 lpm, are growing as farmers look for increased efficiency and faster sprayer fill times, he said.

Simone Upton with the Aussie Pumps Smart Pump.

The pumps are available in a wide range of drives but most farmers choose a 6.5hp Honda powered version because it’s lightweight and reliable, Mr Scully said.

The entire pump only weighs 25kg and can be easily transported where necessary.

Viton seals provide compatibility with a wide range of farm chemicals

including fertilisers, pesticides and weedicides.

Viton can also handle salt water, diesel fuel and urea and molasses cattle digestive aids.

The standard 2 inch and 3 inch Aussie Smart Pumps come on steel skids with anti-vibration mounts. A heavy duty steel roll frame is used on the Honda electric start polys.

“The electric start aids convenience but also offers a recoil start back-up,” Mr Scully said.

Aussie Smart pumps are also available in polypropylene for high acidic liquid transfer.

• Further information including a comprehensive guide on the use of Aussie Pumps for a wide range of applications is available at www.aussiepumps.com.au

DAIRY NEWS AUSTRALIA OCTOBER 2014

32 // TRACTORS & MACHINERY

Telehandler great for grip and grab MASSEY FERGUSON says its new MF 9407S telescopic handler specifically suits farming.

Visibility, patented cab design, manoeuvrability and performance are all a farmer could want in such a machine, says Agco.

The company says it talked to many farmers in Europe while drafting the spec’s – starting with a ‘clean sheet’ design, and presenting new technology and features from the axles upwards.

“The design of the MF 9407S offers the best visibility on the market through the curved rear screen. It is also compact, agile and manoeuvrable,” says Massey Ferguson’s

MF 9407S telehandler.

general marketing manager Fergal Meehan.

“The short, wide chassis provides exceptional stability, while the laterally, sidemounted engine offers great access for service.”

New boom design and mounting pivot along with powerful new hydraulics mean the MF 9407S offers lift capacities and heights suit many applications, while the new boom and mounting further improve loading efficiency.

An innovative and patented curved side and rear window fitted into the new cab, coupled with the low (1.75m) boom mounting position, offers

Lely starts trials on no-stop baler A NEW-CONCEPT baler that does

not need to stop or slow down in any type of crop is being tested by Lely.

A commercial product is some years away.

The Lely Welger CB Concept ties a bale while simultaneously starting the next one – “a true continuous baling concept, a true yellow revolution,” the company says.

Continuous motion makes the operation more efficient and comfortable. More high quality bales can be made as no time is lost wait-

ing for tying and releasing. Maintaining speed is better for driver comfort, cuts fuel consumption and minimises wear and tear as frequent braking is no longer required.

When the desired bale size is achieved, a mechanism moves the bale within the belt to the extended back of the baler, making room for a new bale to start immediately in the front. After the first bale is tied by the net wrap system, the tailgate opens, dropping the bale on the go and the baler resumes its compact position

an unrestricted view to the rear right-hand side.

This design means there is no cab pillar to obstruct the view, offering the best vision in the industry.

The cab is 900mm wide, plenty of shoulder room for the largest operators. A curved front windscreen – which extends from the front right over the roof – also increases space and leg room.

This makes it one of the largest handler workplaces on the market and, at 75db(A), it’s also quiet, Agco says. Air conditioning and pneumatic seat suspension come standard.

Inside the dashboard is located in the right corner, leaving an unobstructed view of the boom carriage and attachment.

The simple dashboard layout is easy to read and is mounted just in front of the new joystick, which provides proportional control.

A shuttle reverse lever is mounted on the left, within a finger’s reach of the steering wheel. A separate button is used to place the boom into the float position.

Access to the Perkins engine and cooling package is easy. Mounted on the right of the machine, the engine is

fitted lengthways parallel to the boom, which makes everything easy to reach.

The hydrostatic and hydraulic pumps, fitted to the front of the engine, are also easily accessible.

The MF 9407S has a 130hp, 1104D-ETA engine, which provides extra power often required for straw merchants and other contractors, particularly for road work and towing trailers.

A cooling pack, which folds up for cleaning, is mounted at the front of the engine compartment, above the hydraulic pumps and the fan can be reversed for cleaning. The radiators and oil coolers have ample capacity.

The Lely Welger CB Concept ties a bale while starting the next one.

ready again to finish the bale now being made in the front.

During this continuous process, a belt buffering and tensioning system maintains consistent tension on the belt, resulting in high density bales.

Lely says its continuous innovation makes life easier for farmers by bringing “great advantages in quality, comfort and capacity”.

The Lely Welger CB Concept is the company’s ninth ‘yellow revolution’ in nine years.

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Dairy NewS AUSTRALIA october 2014

tractors & machinery // 33

Improvements with farm use in mind adam fricker

WHEN Dairy News Australia reviewed the 2011 Honda TRX500, we commented that it was a subtle evolution of the old model, the list of changes being relatively modest.

Fast forward to 2014 and Honda has made a lot more changes to the new TRX500 over the previous model than it did in 2011.

To name a few, the new manual-shift TRX500FM2 Foreman has a new chassis featuring longer-travel suspension; revised mapping for the EFI program that gives the liquidcooled 475cc single-cylinder OHV four-stroke engine improved power delivery, throttle response and fuel efficiency; and a selectable locking front differential.

We handed the big 500 to a tame dairy farmer to put it through its paces on the farm. The diff lock came into its own here, pulling the Honda through muck in the bottom of a recently emptied effluent pond. Admittedly, that’s not an everyday farm scenario, but it was as severe a test of traction as you’ll get.

Our farmer also commented on the improved power delivery from the re-mapped engine, saying it pulled clean and strong from lower revs than the old model. And he preferred the manual gearbox over an automatic.

The list of changes to the new 500 is extensive.

It includes new bodywork that improves mud protection, keeping most of the

muck away from the rider.

Combined carrier capacity increases to 120kg – 40kg in front, 80kg for the rear, and the heavyduty trailer hitch has a 384kg towing capacity.

The electric power steering has revised settings for lighter steering effort, improved damping and more linear steering traits.

While the drivetrain carries over from the previous model, albeit with reconfigured engine mapping, the Foreman has an all-new double-cradle steel frame that is lighter and 20% stiffer.

New front and rear suspension (independent double-wishbone up front and solid rear axle with single shock swingarm) has an increase in travel to 185mm at both ends plus new shocks for improved ride. All shocks now have adjustable spring preload, and the swingarm now has an enclosed axle and new rubber pivot bushings that contribute to the better ride.

Rider comfort has also been addressed by narrowing the tank so the feet aren’t so spread, making the ‘rider triangle’ a bit less cowboy. A 20mm increase in seat foam thickness and softer seat foam also help.

The Honda TraxLok 2WD/4WD system now offers three drive modes: 2WD; 4WD with TraxLok torque-sensing front differential; and now a new 4WD mode with locking front differential. This TraxLok system also has a speed override mode that can be engaged when the

front differential is locked, allowing faster wheel speed under severe conditions such as deep mud.

There are other less obvious changes too, such as increased AC generator output of 481W and a new

meter display with added functions like a ‘maintenance minder’ system that notifies when it is time for service. And the rear brake has been moved inside the right rear wheel, improving ground clearance.

DAIRY NEWS AUSTRALIA OCTOBER 2014

34 // TRACTORS & MACHINERY

Never underestimate the value of horsepower AS MANY office dwell-

ers with farming backgrounds do, I often vacate the office for a dose of outdoor agricultural activity when weekends or annual leave allow.

Often the venerable Deutz DX and our own small block provide the outlet, however recently I had the opportunity to trade-up a bit.

A lot of dirt needed moving as part of a laser grading project, and a Caterpillar 95E coupled with a 12 foot Alfarm scraper grader was sitting idle nearby.

The ensuing four day weekend of high-horsepower heaven got me thinking.

In this age of the cost-

control mantra and the frequent, unfortunate misinterpretation of this as ‘absolute cost minimisation in every respect possible’, the value of horsepower is often understated.

Having a tractor that would tear itself apart if it could get enough traction can come in handy in all sorts of ways.

Pub bragging rights are an (often denigrated) advantage of course, but being able to pull the local contractor out of a bog, make your own silage and pull a deep ripper (should you ever want to) are also worthy capabilities.

Not that you can make silage with a Cat Challenger.

GRUNT

JOHN DROPPERT The 95E is a beast of a machine, the result of a late facelift and up-powering of the original Challenger machines before the radically redesigned MT series, the subsequent sale to AGCO and the exit of Caterpillar from making agricultural tractors.

Like many machines featured in this column, mainstream think-

ing would dictate that it is a completely illogical machine for a dairy farmer (or hobby farmer) to own.

Apart from the truly offensive 410 horsepower of decidedly non-minimalist power produced by the 11.9 litre Caterpillar engine, its tracked undercarriage makes it entirely unsuitable for use on any pasture you may wish to retain longer than the second pass.

Also similar to many machines mentioned here, it is noisy and extremely rough to operate, and compared to the technicolour joystick armrest flamboyancy of newer tractors, the array of levers and switches is decidedly Spartan.

The Cat 95E has serious grunt.

On the upside, it can do some pretty cool skids, and a technician wishing to service the motor can just about step inside the engine bay and have a poke around.

More importantly, it does the job it was purchased to do, and pulls the grader until clay is pouring over the back of the bucket.

It has some serious grunt, and sometimes – even in the age of ‘cost control’ – serious grunt is just what you need to get a job done as efficiently and cost effectively as possible.

Even dairy farmers want to get big jobs done from time to time. And if you want to do a big job, you need a big tractor.

Contact your nearest Reese dealer for more information. All prices are exclusive of GST. Freight charges may apply

Reese Agri

| Free phone 1800 140 196 | Phone Murray 0400 540 300 |

www.reeseagri.com.au

Once you’ve got that, I could probably use another working holiday.

• John Droppert has no mechanical qualifications whatsoever, but has been passionate about tractors since before he could talk and has operated many different makes and models in a variety of roles for both profit and fun.

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Tomahawk 5050

Penta 6720-HD

Sizes available from 13.3 cubic meter. Highly efficient vertical mixers built to perform in Australian feed systems. Customised feed elevators available to suit your requirements.

Finance and nutrition options available – new and used machines in stock.

Spreading

Silage and hay feeder up to 5ft bales. Reduce waste, improve dry matter intake and meat / milk production.

Penta 4020-SD

Jeantil EVR 14-12

Jeantil GT-12500

Viking 3000

Tillage

Australia’s largest range of fertilizer and manure spreaders. Want to spread fertilizer, lime, compost, manure, slurry? Talk to us for all your spreading requirements.

Agrisem DOM 6m

Agrisem DOM Silver 3m

Agrisem Ares T XL 4m

Talk to us for your stubble mulching, mechanical weed control and seed bed preparation requirements. Highly efficient and productive speed disc-o-mulch machines built to perform in Australian conditions. Choose from a wide range of machines, sizes from 2 – 12m.

Australia’s largest range of implements

After hours call Derek Modra on 0410 604 804 or email derek@farmtech.com.au

National sales and services network Farm Tech Machinery Pty Ltd 30 Moloney Drive, Wodonga, Victoria 3690 Free Call: 1800 880 802 | ABN: 91 010 785 798

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hard-working, proven teat protection

Protect your hard-working cows with the proven protection of Ready to Use Theraspray Gold, Theraspray Gold, theraspray 5 ready to Use, theraspray 20, Theraspray Red, Blu-Gard Concentrate and gSe Udder emollient teat care solutions.

we work harder so you can work smarter. www.ecolaB.com *APVMA Approval No: 58509, 47545/0802, 68319/58101, 68079/57440, 47746/0902, 45899/0802 and 67863/56998.