Dairy News Australia March 2015 by Rural News Group

APRIL VOTE: Murray Goulburn signals ASX listing PAGE 3

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Seasonal calving didnâ&#x20AC;&#x2122;t add up PAGE 21 MARCH 2015 ISSUE 56 // www.dairynewsaustralia.com.au

GM RYEGRASS Farmers push for commercialisation PAGES 4-7

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NEWS // 3

Queensland farmer David Kucks, Quinalow, feeds his herd a total mixed ration in a 110m long concrete trough, which was covered with a roof three years ago. Read more, page 22.

Award-winning Tasmanian farmer Ken Lawrence opened his farm to Australian Dairy Conference delegates last month. PG.10

MG announces April vote for share plan

Western Victorian farmer Simon Scott changed his split calving percentage rather than switch to seasonal calving following advice from his Focus Farm group. PG.21

MURRAY GOULBURN

will hold an extraordinary general meeting in April in a bid to win supplier approval to list on the Australian Securities Exchange (ASX) in June or July. The co-op wrote to suppliers earlier this month and will start 14 supplier meetings in Victoria, NSW and SA this month. The co-op hopes to raise $500 million by listing on the ASX, which it will use to “support our growth strategy to improve farmgate returns and fund planned investments in world’s best manufacturing capability and market reach”. Under the proposal, dairy farmers supplying the co-op would retain 100% control of the

Nothern Victorian farmer Clark Fehring has increased his pasture and feed options by upgrading his irrigation system. PG.23

NEWS ��3-15 OPINION �� 16-17 MARKETS ��18-19 BREEDING MANAGEMENT �� 20-21 MANAGEMENT ��22-23 ANIMAL HEALTH �� 24-26 FARM WORLD PREVIEW ��27-29 PASTURE SEEDS ��30-32 MACHINERY & PRODUCTS �� 33-34

cooperative. Listing on the ASX would enable other investors to purchase shares. MG said the final share price would not be known until shortly before trading of the units starts on the ASX. Future investors must disclose their unit holding if they purchase 5% of shares or more. A foreign investor seeking to own more than 14.9% must get Foreign Investment Review Board approval. The co-op said dividends would be linked to the farmgate milk price a high dividend would be paid in years of high farmgate prices; a lower dividend in years of lower farmgate milk prices. The dividend paid to shareholders (farmer sup-

pliers) and unit holders (outside investors) would be the same, and paid on the same date. After the 14 supplier meetings, final information sessions will be held in April and, subject to shareholder feedback, a proposed Extraordinary General Meeting (EGM) will be held in late April for shareholders to formally vote on the capital structure. Late last month, MG confirmed its full year forecast milk price of $6/kg milk solids (MS), despite a 1% decline on half year sales ($1.3 billion) compared to the previous year. In a letter to suppliers, MG managing director, Gary Helou, said the forecast price would remain

despite the fact “key dairy ingredients prices globally have fallen significantly in the past six months, dragging down farmgate prices in dairy exporting countries by up to 40%”. “The moderating Australian dollar, while positive, occurred too late in the December half to materially impact the half year results. “We welcome the emerging benefit that a lower currency will provide our export business, particularly in the value added dairy foods segment through the balance of the year and into next year.” MG reported a half year net profit after tax of $12.9 million compared to $61 million in the previous corresponding period. Mr Helou said the two

periods were not directly comparable due to higher input milk price paid at the beginning of the financial year. This was done to provide cash flow benefit to farmers. MG said it is on track to deliver a full year net profit after tax of between $20 million - $30 million, “broadly in line with last year’s result”. MG received just over 2 billion litres of milk in the six months to December 31 - a 6.8% increase on the prior corresponding period. “Our milk intake continues to grow at a faster rate than the Australian milk pool which according to Dairy Australia, grew by 2.6% during the six months to December 31, 2014,” Mr Helou said.

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4 // NEWS – GM RYEGRASS

UDV wants national GM policy RICK BAYNE

THE UNITED

Dairyfarmers of Victoria wants further talks to fast-track a trial of GM ryegrass in a real-life farming situation, sort out coexistence rules and clarify consumer perceptiaons. Speaking after the UDV hosted a series of GM farmer forums discussing new technologies, UDV president Adam Jenkins said the policy council would seek discussions about whether GM is in or out. “Then we need to work out coexistence regulations, how to deal with states that don’t allow it and then have a real commercial trial with cows grazing GM,” he said. “From the UDV and farmers’ perspective I would like to see a trial done that involves a real

life situation. “At the moment we’re fluffing around at the edges saying who’s going to do this and who’s going to do that. We need to put cows on the grass and see what the outcome is. “We need to get it commercially tested and of course we need a commercial partner for that.” Mr Jenkins said it was important to consider all views. “We have members and friends that are biological, organic and commercial so we need the discussion and trials to sort out what needs to happen.” The UDV is in discussions with the Australian Dairy Farmers to represent farmer issues at the Australian Dairy Industry Council and push for a national policy to make GM more attractive to investors. “We’ve got all states wanting different things.

How can you have commercial partners if they can’t sell in all the states? Our market is not big enough.” The UDV will hold a strategy meeting in coming weeks to formalise its policy on GM ryegrass. “We’ll develop a policy, probably in line with the national policy, which supports the research and development but the issue is like the chicken and the egg. I think we’re all in the same space of how do we get there?” Mr Jenkins said the regulation process wasn’t easy to get through and he had no idea of a potential timeframe. “That’s a government responsibility. When we get over that hurdle, each state has its own regulatory process to get through,” he said. “It’s not easy and in all that we’ve got commercial partners to chase to invest

UDV president Adam Jenkins at a UDV farmer forum in Cohuna.

in the technology. They’re not going to invest in it until they see they have a market for it.” Mr Jenkins said it was important to start the debate and review GM technology or look at other options to improve productivity. “There’s lots of work and regulation to be done about GM. Hopefully something will come out of it but if it’s not the GM we hope there will be spinoffs. We’re still getting really good ryegrass and

good technologies coming from the research.” Mr Jenkins said new technologies were needed to help agriculture meet its goals. “By 2050 we’ve got to produce the same amount of food that we’ve produced in the past 8000 years. We’ve got to put that in perspective and say how do we do that? If it’s not GM let’s throw it out and get onto something else to help us in the next 35 years produce 8000 years of food.” He added that

coexistence was another issue to address. “How are neighbours who do want GM and don’t want GM going to co-exist? We need to have that debate and look at that regulation.” Mr Jenkins said farmers at the forums generally supported looking at new technology. “We’re paying levies for research and development and I guess if it’s not GM what is the investment going to return? If it’s the grass that’s almost ready, let’s get it ready and get it

going.” He said there was some opposition at the forums. “Some say we don’t want a bar of it and say we should look at other technology. I would want a system where people can make a choice,” he said. If GM ryegrass technology was introduced it should remain affordable. “We’re going to have to feed a lot of people and need a price point that is competitive for the market and the consumer,” he said.

Consumer acceptance could take 10 years RICK BAYNE

AUSTRALIAN DAIRY Farmers con-

tinues to back the introduction of GM ryegrass crops but believes it will take up to a decade to get consumers on board. President Noel Campbell said Australian Dairy Farmers supported the right of farmers to use GM technology where it’s available. “We think the potential productivity gains likely to be available with GM are something we would want to be part of,” Mr Campbell said. “But we’re also aware that it needs to be acceptable to consumers and those who sell to consumers, such as super-

market chains.” Mr Campbell said he believed this would be difficult in the short term, “but hopefully longer term people will see it as a positive in respect to the cost of products and the ability to help the environment”. “I’d like to think in the next 5-10 years consumers will be prepared to accept it. I guess it is like global warming – there are people on one side of the fence and people on the other.” Mr Campbell said the industry needed to show consumers that genetic modification would not hurt the product. “We believe that there’s lot of scientific information and we’ll show them but we’ve got to move slowly and it’s going to take some time. We’ve got to

Noel Campbell

show the benefits not only in our ability to grow more feed but the ability to use less water, less pesticides and herbicides; and show the total benefit to the community, not just allowing farmers

to grow more grass.” Mr Campbell said it was important to get co-existence between farmers who support GM crops and those who don’t. “We’ve got some farmers, especially in the organic area, who don’t believe it should be utilised. We’ve got to co-exist and show that we can coexist. Hopefully we can work with them and have technology that would allow us to do that.” He said he believed the economic benefits would be significant. “They’re talking about an improved yield per hectare of about $300 per year, that’s substantial,” he said. Mr Campbell said another major challenge was attracting a commercial partner, which could be hampered by

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New Zealand’s reluctance to enter the GM market. “Currently New Zealand is saying they won’t use GM technology. In the market place if GM wasn’t being used in New Zealand and was in Australia there would be a bit of playing off with consumers.” While it is used in the US and parts of Europe, Mr Campbell said it didn’t seem likely in the short term in New Zealand. “Australia could go alone but whether we could get a commercial partner with Australia alone is another matter,” he said. “It would be easier if we had land on both sides of the Tasman but I don’t think that’s going to happen in the short term.”

DAIRY NEWS AUSTRALIA MARCH 2015

NEWS – GM RYEGRASS // 5

Government seeks commercial partner to advance new ryegrass RICK BAYNE

DAIRY FARMERS look set to embrace GM ryegrass more readily than their grain growing counterparts embraced the introduction of GM canola. However, getting a commercial partner to make it a reality, convincing consumers that it’s the right way to go and coming up with a plan for GM users and objectors to co-exist means it could still be years away. Dairy Australia manager biotechnology and strategic initiatives, Paula Fitzgerald, spoke at a series of 10 farmer forums organised by the UDV during February to discuss prospects for GM ryegrass.

“As a general statement, if I can compare this to the canola journey, dairy farmers as a whole are far keener to look at this option,” Ms Fitzgerald said. “Overall there’s been quite a lot of support. There seems to be no concern about the science but there were questions about markets and what the processors think.” Ms Fitzgerald said a few of the UDV forums were dominated by organic farmers and those opposed to any form of gene technology “but they were in a minority”. However, she said there were many commercialisation and regulatory steps to take. The commercialisation arm of the Department of Economic Development, Jobs, Transport and Resources, Agriculture Victoria Services (AVS), is

seeking a commercial partner for the work. “That is a critical factor not only in terms of an entity to market the seed but an entity to assist with putting together the final data for the regulatory approval from the Federal Office of Gene Technology Regulator,” Ms Fitzgerald said. Communication and engagement plans are needed for customers, consumers and other supply chains that might be interested in the ryegrass, such as the red meat industry, she said. “We also need plans around co-existence that will allow a farmer to have some GM ryegrass on his farm with conventional plants, his neighbour to have all GM and another to have all organic. We need a plan to allow all those farming systems to coexist.

“We need industry stewardship protocols and guidelines around co-existence and for us to be able to market our products to meet our customers’ needs and requirements.” Ms Fitzgerald said the regulator would assess the ryegrass from the perspective of human health and the environment. “If the regulator has no issues with those categories, the project goes forward and is approved.” However, she said there was no magic date for the GM ryegrass to become a reality. “From a purely science perspective you could say 18 months, but any number is silly until we have a commercial partner. That is a critical part of packaging the data and putting it through the regulatory system and then

bulking up and selling the seeds.” She added that farmers were likely to take a cautious approach once GM ryegrass is approved. “I don’t imagine any farmer would immediately turn over his or her entire farm to GM. They would probably do both,” she said. Ms Fitzgerald said farmers appreciated the modelling that shows higher levels of sugar in GM ryegrass produces more milk. “Dairy processors say they want more milk, this is one means of achieving that.” She said there would be ongoing discussions with processors and customers. “There is still some dairy industry work to be done. Dairy Australia will work around a co-existence plan, communication plan and having the supply chain dialogue.”

Major dairy markets allow GM A REVIEW of 10 major dairy markets shows all allow GM crops to be imported and GM foods to be eaten. All but one of the markets, the UAE, has government or industry standards to regulate GM crops. The review by Dairy Australia looked at Japan, China, Singapore, Indonesia, Malaysia Thailand, New Zealand, Philippines, Korea and UAE. Dairy Australia manager biotechnology and strategic initiatives, Paula Fitzgerald, said all countries allow imports of GM food or feed, which means all have GM ingredients in products on

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supermarket shelves. “Very few of them grow GM crops, which isn’t surprising, but all bar one have industry guidelines and regulations and that is quite important. “If we know what those guidelines are, we can design our systems to meet those requirements,” Ms Fitzgerald said. “In essence those 10 markets which receive a lot of products from our competitors all will be receiving dairy products from milk from cows that have been fed GM products.” Ms Fitzgerald said the information could be expanded to look at

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DAIRY NEWS AUSTRALIA MARCH 2015

6 // NEWS: GM RYEGRASS

Scientist: New ryegrass ‘very exciting’ for farmers RICK BAYNE

A NEW GM ryegrass “is a plant farmers could get genuinely excited about” according to the scientist behind the research. “This is a true first in ryegrass: a high performing variety with extra energy and digestibility,” Dairy Futures CRC CEO David Nation said. The GM ryegrass has been developed by the Dairy Futures CRC. Despite predictions of up to 15% productivity gains, Dr Nation said there were “significant logistics” ahead before the plant could be commercially tested and multiplied. The product has not yet been fed to animals or planted to look at its agronomy in a paddock. “There is significant testing and multiplication to be done between now and it being ready to market,” Dr Nation said. “We’ve collected the vast amount of information ready for assessment but the timing for that assessment is when it’s ready for commercialisation.” Almost 1000 different lines of

plants were created in 2006 and screened in field studies, laboratory testing and glasshouse testing leading to the development of preferred plants. Tests over the past 6-12 months have shown high digestibility that leads to higher energy value and equal or slightly higher yields than its contemporaries. “Performance changes through the year, but the difference is in the range of 10-15%,” Dr Nation said. “It will be a significant step up on all the other plants we’ve studied. You can’t achieve what we’ve just achieved through regular breeding of elite plants to create varieties. This is something different created by this GM plant. “For all intents and purposes the plant is performing like all the comparison plants but with the extra digestibility and the extra energy yield for dairy cows.” Dr Nation said the final experiments were being conducted in controlled environment rooms to test the ryegrass under extreme challenges, such as a hot summer. “That is as far as we can go as a Dairy Futures CRC CEO David Nation.

High energy ryegrass (right) in a comparison experiment with two commercial cultivars. All plants started with the same tiller number and are being grown under summer conditions (when the observed differences are greatest) in a specially designed growth chamber. The GM ryegrass plant is expected to deliver more energy for a cow’s diet through a combination of increased yield and increased digestibility.

research project,” he said. “After that point it would be the role of a commercial partner who is a ryegrass breeder to incorporate this technology into their own commercial programs. “The products of our current breeding would be suitable for commercial partners to use and we’re in discussions.” Dr Nation said potential commercial partners see it as positive technology “but they also see that the future of the product will be based on the farmer’s ability to grow the grass and the market place to accept that farming practice”. “One of our challenges is the logistics of getting this plant to market. Typically a new variety is tested for at least six years before release.” Dr Nation said the research and development phase was nearly complete. “We’ve done comprehensive testing of the preferred lines; they’re performing well in all tests that can be done in a contained environment,” he said. “There are a lot of people who see the value of this technology but they

want to know that farmers can make individual decisions to use or not use it and they want to know the market place will be satisfied that the technology has passed all its safety testing.” He added that Australia has a rigorous safety regulatory system and he believed the plant would pass all relevant tests and be ready for progress to agronomy and animal and multiplication trials. There is no set timeframe for commercialisation of the GM ryegrass. Dairy Futures CRC will finish in June next year and Dr Nation said the research and development phase would be completed within that time. “We’ve finished our glasshouse and field trials and collected a lot of samples that still have to be put through the nutrition testing for the final assessment. The future beyond that is a live topic for negotiation with commercial partners and research providers and investors. “We’ve gone well past any other variety that has ever been developed to test for performance, knowing that all those tests are in a controlled

environment and not in the paddock and not fed to animals. “We’ve gone as far as we possibly can to give everyone confidence that this is a plant that has genuine merit for dairy farmers. We’re particularly pleased to achieve that and that the plant has passed all those tests.” The research has been primarily a Victorian government investment by independent scientists over the past 10 years, supported by the dairy industry. Dr Nation said the GM had been developed in perennial ryegrass but if crossed with an Italian it could create a hybrid for the marketplace. “That’s something a commercial company could do once it’s established a perennial ryegrass product.” He added that it was exciting to see the physical difference of the plants compared to regular varieties and “it’s even more exciting to see the nutrition results and the energy yield that goes with it”. “Seeing the plant excites people. Growing a paddock of this new ryegrass would excite many farmers.”

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NEWS – GM RYEGRASS // 7

“Give us the choice” GIPPSLAND DAIRY farmer Damian Murphy sees GM ryegrass as one of the most exciting breakthroughs in his 15 years in the dairy industry and says farmers deserve the choice of whether to use it. Mr Murphy, who farms at Dumbalk North, said predicted benefits of $200-$350 per hectare have been discussed. “If I use a midpoint of $275 then that could be a $27,500 benefit to my operation,” he said. “Ryegrass is the basis of our farming system, so it’s definitely something I’d look

at in the future. “We do have to work to ensure cohabitation but I am all for personal choice. I want the choice to use this tool on my farm.” Mr Murphy said GM food has been present in Australia for years and is already in most people’s diets. He said the proposed GM ryegrass would be ingested by the cow but would not be detected in the milk or meat. “If I grow GM ryegrass on my farm and my cows graze it, is the milk affected in any way? No.

Processors wary of consumer reaction AUSTRALIA’S TWO major processors remain wary of consumer sentiment on GM products. Fonterra recommends that the dairy industry conduct a targeted study into the awareness and acceptance by consumers of GM material in stockfeed, and the consumer perception of dairy products produced by cows fed with GM stockfeed or grazing on GM pastures. Fonterra Australia’s Bruce Donnison said GM is an area of particular consumer concern. “The concept of dairy cows ingesting GM pastures may disrupt consumers’ perspectives of the naturalness of dairy,” Mr Donnison said. “It will be important to distinguish the GM feed debate from the GM livestock debate and encourage open dialogue to ensure trust in Australian dairy production systems is retained.” In a brief statement, Murray Goulburn said although the co-op will continue to be supportive of the work undertaken by research groups such as the Dairy Futures CRC, its support of such research “does not translate into an automatic market acceptance of GM technology.” “Murray Goulburn is supportive of research and development initiatives that enable sustainable growth in Australian raw milk production,” the statement said. Mr Donnison said studies by the European Food Safety Authority (EFSA) have determined that there is no scientific evidence to support transfer of novel DNA in animal feed to the milk, meat or eggs produced by livestock. “However, there exists a lack of current information on consumer awareness and acceptance of dairy products where the cows have been fed with GM feed,” Mr Donnison said. “Fonterra considers the sentiments and trust of our consumers and customers paramount, and accordingly, seeks greater customer and consumer insights before considering acceptance of the commercialisation of GM pastures.” Fonterra acknowledges that the use of genetically-modified (GM) material in stockfeed is already occurring in Australia, with domestically-sourced GM cottonseed and canola meal and imported GM soybean and canola meal making up a minor but growing proportion of the ingredients used in some stockfeed mixes. “Although GM pastures are not currently in commercial production, it is possible that grazing livestock may be occasionally consuming GM canola stubble,” Mr Donnison said. “As there appears to be no evidence of import restrictions on dairy products derived from animals fed with stockfeed containing GM material, and no evidence of regulations from any of Australia’s major export markets for mandatory labelling of products from animals which have been fed GM stockfeed, it appears unlikely that there is a market access or trade issue with this feeding practice.” Murray Goulburn said it was committed to ensuring compliance with all relevant food standards in Australia and its export territories.

“If I grow GM ryegrass on my farm and my cows graze it, is the meat from the cow affected in any way? No.” Mr Murphy said the science behind GM ryegrass was essentially speeding up a process of plant breeding. “Scientific breakthroughs in health are celebrated but when agriculture has some positive results from its R&D spend it is met with scepticism,” Mr Murphy said. “All that is being done is producing a ryegrass plant with additional storage of sugar.”

Damian Murphy on his Dumbalk North farm.

DAIRY NEWS AUSTRALIA MARCH 2015

8 // NEWS

QFF queries foreign ownership restrictions THE QUEENSLAND

Farmers’ Federation has called for greater detail on the Federal Government’s plans for the treatment of foreign investment into agriculture. Prime Minister Tony Abbott announced last month that the Federal Government would lower the threshold for Foreign Investment Review Board (FIRB) scrutiny of agricultural land to $15 million (from $252 million), and that it would also soon implement a register of foreign-owned land. The Government

will also introduce a $55 million screening threshold for foreign investment in Australian agribusiness and is “seeking views on an appropriate definition of agribusiness”. QFF CEO Dan Galligan said it welcomed the implementation of the register of foreign-owned land as it may provide credible land ownership data so that the issue could be better understood. “But implementing a lower threshold for FIRB scrutiny ahead of the register being developed pre-

empts what it may reveal,” Mr Galligan said. “Lowering the threshold to this specific level may not be the appropriate instrument for dealing with this issue. “It is unclear what the lower threshold seeks to achieve in the context of the policy change as we don’t know on what basis a sale would be accepted or rejected. “In the absence of that, there is a concern that this decision throws barriers in the way of foreign investment and sends the wrong message to overseas inves-

tors who see value in investing in Australian agriculture. “Without explanation of the long term objective, it risks inconsistency with the government’s objectives around free trade agreements and promoting our sector around the world. “The long term objective should include promotion of agriculture as profitable and productive place to do business, both for domestic and overseas investors.” Mr Galligan said that QFF also called on the government to clarify that it would include water assets in its register, as it

made no mention of water assets, despite these assets being a crucial part of agriculture and at times worth more than the accompanying land. “It is imperative that we better understand what is happening with foreign investment in agriculture, so the register is a welcome step but very little progress seems to have been made on its development. “Foreign investment is a crucial part of the investment landscape and vital to growth and productivity. Our sector has relied on it. “We must resist basic calls that tread too close to

fear without evidence, as this sends a negative message that the process for

investment in Australian agriculture is too complicated and risky.”

Small rise for GDT ALTHOUGH FARMERS may have been hoping for another big rise in the first Global Dairy Trade auction of the month, the GDT price index is still heading north. The most recent auction saw prices rise while volumes dropped; Fonterra’s GDT price index climbed 1.1%, with an average selling price of US$3374/tonne. A total of 22,094 tonnes was sold at the latest auction, falling 3.8% from the previous one. The price for whole milk powder (WMP) was down 1% to US$3241/tonne. However after tumbling late last year, overall milk powder prices are now rising; GDT prices for whole milk powder have risen 45% and skim milk powder prices 13%.

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NEXT ISSUE: APRIL NEW DAIRY TECHNOLOGY More dairy farmers are adopting technology that helps reduce costs and save time, including management software; automated irrigation systems; robotic milking; and heat detection devices. A special report in the April edition of Dairy News Australia showcases some of the latest technology helping farmers improve their efficiency and profitability. BOOKING DEADLINE: April 1 MATERIAL DEADLINE: April 7 PUBLISHED: April 14 CONTACT: CHRIS DINGLE T: 0417 735 001 E: chris@dairynewsaustralia.com.au

DAIRY NEWS AUSTRALIA MARCH 2015

NEWS // 9

WCBF buys Lion’s cheese business WARRNAMBOOL CHEESE and Butter Fac-

tory (WCBF) will buy Lion’s everyday cheese business, including the brands Coon and Cracker Barrel, for $137.5 million in an all-cash deal. WCBF will also take control of Lion’s cut-andwrap facility, located next to its facility at Allansford, near Warrnambool. The everyday cheese business generates annual sales of $160m and employs about 170 people. It includes distribution, sales and marketing and intellectual property associated with the Coon, Cracker Barrel, Mil Lel and Fred

Walker brands. WCBF will run the facility on a going-concern basis and plans to retain all staff. It expects to close the deal in early May. In a statement, WCBF said the transaction would enable it to increase its presence in consumer branded everyday cheese products segment in Australia, with strong market positions in this segment. Lion managing direct, Peter West, said the company’s everyday cheese business continues to perform very well in the market. “Our decision to sell is part of our broader threeyear strategy to turn-

Tatura cows vaccinated following Anthrax scare ALL HERDS bordering the Tatura property where

a heifer died from Anthrax late last month have been vaccinated. About 1300 cattle on 14 farms were vaccinated by Department of Economic Development, Jobs, Transport and Resources vets. DEDJTR’s Chief Veterinary Officer Dr Charles Milne has urged farmers and those working with livestock to be vigilant following the recent death. The anthrax bacterium has been in Australia for 150 years and is known to occur in the soil in parts of Victoria, and does cause occasional livestock deaths. Dr Milne said the isolated case was confirmed to be from a farm which has a history of anthrax. “It is not unusual for incidents of anthrax, especially on previously infected farms, to be detected in this region,” Dr Milne said. “Stock on the farm have been vaccinated. Stock on adjoining farms are also being vaccinated. “Further sporadic cases are possible across Victoria which is why we are calling on those working with livestock to be vigilant. “Farmers in the region should check their paddocks for sudden, unexplained deaths among their animals and report any cases to the 24-hour Emergency Animal Diseases Hotline on 1800 675 888 or to their local vet. “It is really important that farmers report a sudden death and that they don’t move the carcass until we have cleared it.” Moving a carcass increases the risk of spreading the anthrax spores. Incidents of anthrax generally occur during the warmer months when it is drier and the livestock forage closer to the soil when eating grass, the last isolated outbreak occurred in 2009. Local farmers, veterinarians and DEDJTR are well prepared to handle these incidents and this isolated case was detected as part of the ongoing surveillance for anthrax and other diseases.

around performance at Lion and drive sustainable profit growth,” he said. “We are focusing resources behind our biggest growth opportunities, which are in higher-value

categories such as milk based beverages, speciality cheese and yoghurt. “The proceeds of the sale will be invested behind our turnaround strategy.”

WCBF has purchased Lion’s cheese business, which is located near its Allansford site.

DAIRY NEWS AUSTRALIA MARCH 2015

10 // AUSTRALIAN DAIRY CONFERENCE

Award-winning farm on show AWARD-WINNING TASMANIAN farmer

Ken Lawrence opened his farm to other farmers last month. Two busloads of farmers descended on Lawrence’s farm in Osmaston, 50km west of Launceston before the Australian Dairy Conference; part of the tour was a bus ride through the 487ha property. Ken and wife Jill own Fermer Dairy, milking 910 cows on a 236ha milking platform. They won the 2014 Dairy Environmental Award and were finalists in the 2014 Dairy Farmer of the Year Business award. Mr Lawrence says the farm is set up to achieve between 375,000kg/milk solids and 400,000kg/MS each year; irrigation is key.

WHO:

Ken Lawrence WHERE:

Osmaston, via Launceston WHAT:

2014 Dairy Environmental Award

The herd is predominantly Jersey. Mr Lawrence says the aim is to breed a cow that is “easy-care”- 450kg in live weight and producing its live weight in milk solids. Production in 2012-13 topped 424kgMS/cow and 1,636kgMS/ha; the next year it rose to 458kgMS/ cow and 1,649kgMS/ha. Cows are fed mostly

Ken Lawrence with a bus load of guests from the Australian Dairy Conference.

grass, topped up with about 1.2 tonnes of grain and silage. For the Lawrences, young stock management is vital. They make sure plenty of time and energy is allocated to calf rearing. “Colostrum is fed to all calves the afternoon they are brought to the calf sheds,” he said. A new calf

FAMILY FARM About 90% of the milking area is now irrigated, from both farm storage and Meander Dam irrigation water. There are three centre pivot irrigators on the farm. Mr Lawrence says he lost trees while setting up the pivots; to compensate he has planted shelter belts with assistance from Landcare Australia.

FERMER FARM was bought by Ken Lawrence’s grandfather in the late 1930s; it ran as a mixed farm with cows, wool sheep, beef cows and cropping. His father, Lindsay, took over in the late 1950s and continued the tradition. After finishing agricultural studies, Ken returned to the farm in 1983. With the collapse of the wool market in the 1990s the farm was converted to dairying.

shed allows replacements to be housed separately to bobby calves. “Calves are weaned from milk at about 80kg but continue to be fed with muesli for six to nine months to ensure that target weights are reached.” In winning the environmental award, a number of attributes were identified on Fermer

Dairy; these included nutrient mapping and budgeting, revegetation and shelter, riparian management and supporting biodiversity. Mr Lawrence was keen to emphasis to the visitors that he wasn’t turning the farm into an organics operation. “But we are minimising chemical use,” he said. “We have done tissue

tests and salt and chlorine levels are climbing; we are compensating that by minimising use.” During the bus tour, farmers noticed a small flock of sheep on the farm. Mr Lawrence quickly pointed out that last year he bought 300 lambs to fatten on the farm. “If we are lucky, we will make a bit of money out of them,” he said.

DairyBase App wins farmer approval DAIRY AUSTRALIA gave farmers a sneak preview of a new App called DairyBase at the Australian Dairy Conference in Launceston. DairyBase is scheduled to be officially launched in May and will offer dairy farmers a free web-based system to allow them to measure their business performance and make anonymous comparisons against other farms. “The feedback for DairyBase has been very positive and practical,” Dairy Australia’s Helen Quinn said. “Over 100 farmers registered for DairyBase at the conference, and some of those who have entered data have already made suggestions for improvements. “When DairyBase is launched it will provide farmers, service providers and industry with a rich national database of extremely valuable easy to access information.” Dairy farmer Ken Kimber, Bega, New WMS_DairyNewsAusAdSeries1P.indd 1

1/12/14 9:28 am

South Wales who milks 1100 cows, said he had been seeking a way to make effective business comparisons for years. “At last there is a format where I can enter data easily and then choose to compare with other farmers,” he said. Cheryl McCartie, a dairy farmer milking 450 cows from Ringarooma in North East Tasmania, said having the DairyBase App will make it a very convenient tool. “It will be great to use it at a time that suits and as we use it more people will find having the information handy, and this will improve the use of the tool,” she said. Sustainable Agriculture farm manager Wolfie Wagner said he found the DairyBase App clear, easy to follow and logical, and that having year-on-year data would be the real key to its value. “It will have a use for comparing us with our peers, but more importantly within our business.”

Dairy NewS AUSTRALIA march 2015

australian dairy conference // 11

Open dialogue with animal rights groups essential SUDESH KISSUN

AUSTRALIAN DAIRY

farmers are working with animal rights activists on the industry’s animal welfare credentials. Dairy Australia chief executive Ian Halliday says farmers are “not out of the woods in terms of being under the spotlight”. Mr Halliday said the dairy industry is not complacent when it comes to animal welfare and is relaying the message to animal rights groups. There is a lot of work behind the scene on animal welfare, he said. They were having a lot of dialogue with animal right groups. “Just to explain to them we look after our animals, we care for our animals and they are an important part of our livelihoods.” Mr Halliday admitted the industry still had some issues to deal with – like

induction, tail docking and treatment of bobby calves. But the industry is doing its best. “We will continue to ensure we are really look-

Ian Halliday

ing after animal health and welfare as an industry…it’s always on our mind.” Mr Halliday also spoke on dairy prices, predicting that farmgate returns will improve by the end of the year. He pointed to a drop in milk output in key markets like New Zealand and Europe. ‘’New Zealand pulled back full year forecasts by 3.5 % compared to prior year,” he said.

“It has been pretty dry over there. “We know Europe was up about 5% last year: it’s down 2% this year. “When world prices

go towards record levels, every region responds: every dairy region around the world chases that record price. “We know New Zea-

start to the 2013-14 season. This year’s national milk volume in Australia will be up 2%. “We are running at 2.6% after a strong start

but it has tapering off this summer.” At the same time consumption in the domestic market remains pretty steady and solid.

The benchmark for production and performance

Still attractive to investors VOLATILITY IN the global dairy market has done little to put off investors in the Australian dairy industry. Consolidation in the Australian market has continued with Parmalat buying Longwarry Food Park while there are plans for a potential large-scale green field investment in the Widebay region of Queensland. New free trade deals secured by Australia are also fuelling interest in dairy, said Dairy Australia commercial research and analysis manager Norman Repacholi. “Favourable international trade deals, such as the China Free Trade Agreement at the end of last year, have added to dairy’s appeal as an attractive investment opportunity,” he said. While most major international dairy markets have seen steep price declines, Australian farmgate prices have remained steady and this can partly be explained by the nation’s processors who are eager to maintain farm sector confidence to encourage growth in milk production. “Other factors, such as the Australian domestic market, decline of the Australian dollar and fall in oil prices are helping to insulate the sector.” But he cautioned Australian farmers to remain on guard. “Farmers should remain on their guard as the international dairy market can change rapidly as global supply outweighs demand.”

land was up 9% last year, the US was up 3% and Europe 5%.” Australia finished last season only 0.4%. Halliday puts this down to a tough

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Dairy News AUSTRALIA march 2015

12 // news

Positive outlook for farmgate prices The

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farmgate milk price, value of Australian dairy exports and national milk production, are all forecast to rise in 2015-16, according to the national commodity forecaster, ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences). ABARES agricultural commodities manager, Peter Collins, said after a challenging year in 2014–15, the outlook for the Australian dairy industry in 2015–16 had improved. “Both Australian farmgate prices and world dairy prices are forecast to rise in 2015–16,” Mr Collins said. “Australian milk production and the volume of dairy product exports are also expected to increase over the period to 2019–20, with the medium term seeing growing demand for dairy products in Asia, the Middle East and North Africa.” According to the ABARES report, the Australian farmgate price of milk is forecast to increase to 46 cents a litre in 2015–16, up from 44 cents a litre in 2014–15 – a rise of 5%. “The forecast rise reflects an assumed depreciation of the Australian dollar and forecast higher world dairy product prices,” report author Owen McCarthy said.

World prices for skim milk powder and whole milk powder are forecast to increase by 9% and 7% next season to $US3022/tonne and $US3073/tonne respectively. World prices for cheese and butter are forecast to increase by about 6% and 5% to $US 4200/tonne and $US 3713/tonne respectively. Australian milk production is forecast to rise to 9.6 billion litres in 2015–16, up from 9.4 billion litres in 2014–15. “Assuming average seasonal conditions, dairy farmers in the southern export-oriented regions are expected to drive production growth,” Mr McCarthy said. “Increases in production will mostly reflect improvements in the milk yield per cow as dairy cow numbers are expected to remain largely unchanged. “In the dairying regions more focused on the domestic drinking milk market, such as Queensland and Western Australia, production is expected to remain largely unchanged in 2015–16.” Over the medium term, Australian milk production is projected to increase to 10.1 billion litres. Increases in milk yields are

expected to be the major driver behind the increase in production over the outlook period, the report said. “The average milk yield per cow is projected to rise by 7% over the five years to 2019–20, largely as a result of improved herd genetics, pasture management and farming technology,” Mr McCarthy said. “The number of dairy cows is projected to rise in the first half of the outlook period as world dairy prices increase, reaching 1.71 million head in 2016–17. “In the second half of the outlook period, declining world dairy prices are expected to reverse this trend, resulting in a slight decline in the dairy herd.” The total value of Australian dairy exports is forecast to rise by 8% in 2015–16 to $2.4 billion, up from $2.2b in 2014-15. Over the medium term, Australia’s dairy export earnings are projected to increase, reaching as high as $2.5 billion (in 2014–15 dollars) in 2017–18. At the end of the outlook period, export earnings are projected to fall slightly in real terms because world dairy product prices are projected to decline.

Milk pool must grow to capitalise on Asian demand Australia must

grow its milk pool to fully capitalise on the trade opportunity across Asia, says a leading dairy analyst. There was a flurry of inbound investment activity by Asian dairy companies, mostly from China, into the Australian and New Zealand dairy sectors in 2014. However, in a new report, Rabobank warns ongoing growth in imports by Chinese and wider Asian dairy companies shouldn’t be taken for granted. In its report, ‘Magnetic milk – the lure of dairy investment down under’, Rabobank says a specific focus for overseas investors in Australian dairy has been on securing access to liquid milk and infant formula. Report co-author, Rabobank senior dairy analyst Michael Harvey, said a quest to secure access to a high-quality, safe milk pool is driving

international investment in dairy down under. “Between 2014 and 2020 we expect China and South East Asia combined to account for almost one third of the increase in global dairy imports,” Mr Harvey said. “For the New Zealand and Australian dairy sectors – collectively known as the Oceania – preferential market access and geographical proximity are the magnetic forces supporting the investment flows into this region, and they will continue to do so.” With demand growth in Asia expected to outstrip local supply growth capabilities, and hence drive global trade over the medium-term, many Australian and New Zealand dairy exporters are positioning themselves towards Asia. “Many company strategies are heavily focused on capitalising on the growing opportunity presented by dairy demand in

Asia,” Mr Harvey said. “For Oceania processors, the strategic desire is often about building extensive distribution networks and local knowledge to tap into key growth export markets. “Strategic partnerships can help smooth market access and thwart the impost of regulatory trade barriers.” For Australia, Mr Harvey said, improved market access and the country’s competitive positioning are of benefit, but to extract full value, growth of dairy supply is also required to capitalise on opportunities. New Zealand has already successfully risen to this challenge, he said. “Australia must grow its milk pool to fully capitalise on the trade opportunity across Asia,” Mr Harvey said. For all dairy exporters looking to engineer export strategies towards dairy markets in China, a level of caution is now required

particularly when it comes to nutritional powders and liquid milk markets, Rabobank warned. Mr Harvey said that spectacular rates in recent years’ growth have attracted significant investment both within Oceania and further afield as companies recognise the opportunity. “Import volume growth is expected to expand, but the rate of growth will be slower over the medium-term as the dairy market matures and retail price points challenge consumers who are facing lower rates of income growth,” he said. “At the same time, there is significant investment in capacity in many parts of the world generating intense competition and the risk of oversupply. “Complicating matters, regulation has been tightened, particularly in the Chinese infant formula category, and is still proving unpredictable.”

DAIRY NEWS AUSTRALIA MARCH 2015

NEWS // 13

Supermarket code of conduct gives ACCC more power A NEW code of conduct for supermarkets prohibits specific types of unfair conduct by retailers and wholesalers in their dealings with suppliers. Although voluntary, the Prescribed Grocery Code is binding for those who sign up, and will be enforced by the Australian Competition and Consumer Commission (ACCC). “Businesses that supply groceries to major retailers and wholesalers will have extra protections under the new industry code,” ACCC chairman Rod Sims said. “The code also provides new powers for the ACCC. Once retailers and wholesalers sign up to the code, we will be able to enforce it and take court action for breaches. “We will also be able to audit retailers and wholesalers to check that they are complying with the code.” The code: ■ Requires retailers and wholesalers to act in good faith ■ Sets out the requirements of agreements between retailers or wholesalers and suppli-

ers, including that they be in writing ■ Limits when retailers or wholesalers can unilaterally or retrospectively vary an agreement with a supplier, and requires any variation and the reason for it to be in writing, and ■ Sets out a dispute resolution process. ■ The Prescribed Grocery Code has been developed by the major retailers, Coles and Woolworths, and the Australian Food and Grocery Council. Aldi was the first supermarket retailer to sign up to the new voluntary code of conduct while Metcash-IGA will also implement the provisions of the code on a trial basis over the next 12 months, and is “hopeful” of formally signing up after that. Coles and Woolworths had not signed up to the code at time of publication. Australian Dairy Farmers President, Noel Campbell, said many aspects of the draft Mandatory Code of Conduct, which ADF and Queensland Dairyfarmers’ Organisation began developing in 2011,

Cyclone Marcia floods Qld farms THE QUEENSLAND Dairyfarmers’ Organisation

is working with the state’s dairy farmers impacted by Tropical Cyclone Marcia and the associated flooding to determine the best long-term response for the industry. QDO president Brian Tessmann said farm impacts were severe in places although there was no loss of life or serious injuries. “There are 31 dairy farmers in Central Queensland and the impacts have varied from farm to farm,” Mr Tessmann said. “These impacts range from roofs torn from farm houses, to destroyed irrigation equipment, to destroyed crops and fences. “In places, roads have been cut and bridges and have been damaged or destroyed, making the transport of milk difficult. “The milk factory in Rockhampton was also without power, and many farmers have been without mains power for milking and storing milk. “We also understand that flood levels in parts of the Callide Valley were in parts higher than in 2013, being exacerbated by floodwater releases from the Callide Dam. “The wet weather will cause some long term management issues around herd health, such as managing issues such as mastitis.”

have been adopted in the Prescribed Code. “The Prescribed Code of Conduct is not perfect, but it does address several key imbalances with regard to major retailer

power over suppliers,” Mr Campbell said. “We will be watching the implementation of this Code carefully over the next three years, with a view to seek the strength-

ening of regulations if necessary.” ADF has long advocated for a Code of Conduct to foster a fairer supply sector going forward, and thanked the

Government for working persistently with retailers to achieve the Code. “It is our expectation that once the Code comes into force all major retailers including Aldi, Coles,

Metcash and Woolworths will sign on,” Mr Campbell said. “We will continue to closely monitor the Codes’ effectiveness over the period to follow.”

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DAIRY NEWS AUSTRALIA MARCH 2015

14 // WORLD NEWS

Chinese production grows PAM TIPA

ON TOP of good production out of Europe and the US, China itself has also had a good production season this year, according to Fonterra chairman John Wilson. China is a big importer

of whole milk powder but it became an even more significant importer when its own milk production took a big hit last year, Wilson says. “It was predominantly through disease and also through the drive to consolidate their sector, so a lot of the smaller farms

have been dropped out,” Mr Wilson said. Official figures say China’s milk production was down about 6% last season but the key co-ops were down over 20%. “They had a good production season in the latter half of 2014. The reason we have talked

about inventories not going down in China is that they have produced a lot more milk so manufacturers have been using whole milk.” They have also been working through the overpurchase of whole milk powder during the earlier six months of the year.

“We see that starting to correct and potentially it could correct rapidly over the next couple of months from what we are seeing in production data in China. Our sentiment is that their production is starting to come off – starting to respond to lower prices.” While production

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Fonterra chairman John Wilson says China has boosted its own production this year.

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growth is expected to continue in China, consumption will also grow – at 4% per annum, and that is a pessimistic view, says Wilson. So it is still a critical market. But, Wilson says, “unfortunately we have Uncle Sam”. “The US has a heavily supported dairy sector: the 2015 Farm Bill, approved last April, puts in place another big support mechanism for their farmers; it actually protects their margin. So no matter what happens they can buy very cheap insurance to protect their margin over their feed costs. “So we don’t see them decreasing their milk production any time soon. Ultimately the real world will hit them but for the next 6-12 months… production is expected to increase at 3-4%.” Europe has had a good production season and visiting there in June and July Wilson had never seen it looking so good. Farmers were confident because quota was coming off and they were happy to pay the levy because of high prices

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and cheap cost of production. At that stage production was up 4.3%. Russia since has put dairy bans in place and Europe has followed the global milk price down. “I am told it is the biggest month-on-month drop ever experienced in the farmgate milk price in Europe as paid by key cooperatives Arla and Friesland Campina, so it’s starting to have a big impact. [Farmers] are not going to be producing milk over the next three months. They can’t afford to pay that levy for the extra milk they are producing.” However they do forecast about 2% growth in Europe. New Zealand’s updated forecast is 3.3% down on last year with a significant drop over autumn. “A lot depends on what happens with rain, but even with that a lot of cows have already been dropped out of the system, and not a lot of supplement is being fed because economics don’t support it so ultimately a lot of our milk powder and butter will be sold.”

20/11/2014 7:41 am

ON THE demand side for dairy there is more geopolitical uncertainly than for some time, Fonterra chairman John Wilson said. He noted, talking recently to leaders in Europe, that “all eyes are on Mr Putin. There are concerns about what is happening in and around Russia. That is creating a real atmosphere of risk.” Meanwhile the drop in oil prices will have a positive impact for consumers particularly in South East Asia and China. Another issue is supply chains in the Middle East and North Africa which are bound up with risks imposed by ISIS and ebola. “For a truck driver to jump on a truck in the Middle East at the moment is somewhat challenging.”

DAIRY NEWS AUSTRALIA MARCH 2015

WORLD NEWS // 15

UK farmers push pollies for ag-friendly policies SUDESH KISSUN

UK FARMERS are putting food production at the centre of the UK general election campaign. UK heads to the polls on May 7. The ‘Great British Food Gets My Vote’ campaign, launched last week, wants politicians to back British farming, and urges consumers to buy British food and support British farming. The National Farmers Union (NFU) is advertising in national dailies and farming publications to stress British farming and food production as crucial to the country; and farmers are encouraged to invite their local MP onfarm. Over 200 NFU members have signed up to get and display 3m x 1m banners emblazoned with ‘Great British Food Gets My Vote’. Campaign window stickers will be distributed to 50,000 members. NFU president Meurig Raymond said with the general election three months away, British agriculture and the future of domestic food production must be recognised as hugely important for Britain. “Before the campaign has launched, we already have hundreds of mem-

bers interested in getting behind it. Farmers are behind this campaign, which shows the importance of our lobbying.” Food and farming needs recognising for contributing to the UK economy, creating jobs and maintaining a rural landscape that attracts millions of tourists every year. “We know people care about farming: look at the recent dairy crisis to see people wanting to help solve the current crisis. People realise it takes years of commitment, investment, time and care to rear good quality beef and dairy animals; plant, nurture and harvest crops; protect soils and manage land. This is a long-term business that needs longterm thinking by the next government.” Mr Raymond said like many farmers he is proud of producing food, but he’s also intensely aware of the major challenges facing British farmers. “We have to produce more food but with fewer inputs and better care for the environment. I want the next government to work with the NFU to set an agenda for growth, building on the professionalism and confidence of British farmers. By backing British farming and working together we can increase food pro-

duction by supporting research, investment and growth. “Global and domestic demand for food and renewable energy is on the rise: 88% of the UK public think farming is important to the economy. “Farmers are ready too,

with the potential to grow production and reduce our reliance on imported produce. What is needed now is a Government that understands farming, that supports growth and that has the policies that send the right business signals to farmers across the UK.”

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WISH LIST ■

■

Work with the industry to develop a comprehensive plan to grow UK food production over the next Government’s term Cut over-prescriptive CAP greening requirements during the European Commission’s review in 2016 Use the UK’s 2017 presidency of the Council of the European Union to set the agenda for CAP 2020 reforms, based on principles of fairness, simplicity, commonality and market focus Establish fiscal incentives for sole traders and farm partnerships to encourage a balanced approach to investment to manage volatility Increase on-farm water storage and reservoir building with financial support and tax incentives and by reducing red tape for reservoir applications Champion the use of regulatory impact assessments at all stages of EU decision making and show leadership by conducting a cost benefi t analysis early in the life of all proposed European legislation that affects agriculture Promote the ‘Britain is Great’ campaign for British produce to open up export markets by backing exporters and embassy staff.

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Dairy News AUSTRALIA march 2015

16 // OPINION Ruminating

EDITORIAL

Mixed messages on foreign ownership

milking it... Barnaby’s here to help

Farmers’ incomes are rising, says Federal Agriculture Minister Barnaby Joyce, and you can thank the Abbott Government for that. Opening the annual ABARES Outlook conference in Canberra, Joyce said since the September 2013 election win, live cattle export prices had jumped 67%; cotton prices were up 23%; and bananas and lemon prices had more than doubled. (We’re not sure if he’s taking credit for the yearon-year fall in dairy prices, as he didn’t mention that.) “We are not claiming all the credit, but we have been part of an historical turnaround in agricultural prices in this nation,” Mr Joyce said, straight-faced. Mr Joyce attributed much of the success to the Free Trade Agreements signed with Japan, Korea and China. Many growers at the conference attributed the success to the recent fall in the Australian dollar. Maybe the Ag Minister played a part in that too!

Own goal

It seems Dairy Australia may have scored an own goal by declining to take up sponsorship opportunities under the Legendairy banner with the recent soccer Asian Cup, held in Australia in January. To be fair, they were not the only body to underestimate the overwhelming success of the event – the SA and WA governments did not apply for any games, while the Victorian Government could not be convinced to bid for a semi-final. Australia went on to win the event but stadiums across (most of) the country were packed with fans supporting their national teams. With the Australian dairy industry focussed on increasing exports to Asia, it seems the Asian Cup (and its coverage throughout Asia) would have been a perfect fit.

Outlook cloudy

Who would be a weather forecaster? You’re on a hiding to nothing – if you get the long-range forecast right, well, that’s your job. If you don’t, then you clearly don’t know what you’re doing. However, we reckon forecasting commodity price cycles five years in advance makes all that weather forecasting look easy. The ABARES Outlook conference was on again this month and research economists were reporting their predictions while farmers doubted their ability to get it right. Most people involved in the dairy industry were surprised at China’s voracious appetite 18 months ago, and just as surprised at their sudden and prolonged withdrawal from the market. And then there’s Russia, of course. This made the current season’s full-year forecasts more of a dilemma than normal. None of which makes five-year forecasts an easy gig. Which leads us to ask – are they relevant?

Advertising Chris Dingle chris@dairynewsaustralia.com.au

Greenwash warning

We hear Greenpeace is advertising to outsource its activism in this part of the world to people in Hong Kong. According to job ads, the lobby group wants to base its Asia Pacific (including Australia) activities in Hong Kong…”Using content produced at national offices to amplify the reach and impact of Greenpeace’s campaigns by selectively distributing stories to international audiences”. Seems we’re about to be “green-washed” by overseas-based activists.

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The Federal Government is pushing mixed messages on foreign ownership and for a comparatively small country like Australia, which requires foreign investment to grow, a clear message is paramount. Last month Prime Minister Tony Abbott, with Federal Agriculture Minister Barnaby Joyce by his side, said the threshold for Foreign Investment Review Board (FIRB) scrutiny of agricultural land would be lowered from $252million to $15m. He said the Government would also soon implement a register of foreign owned land, but would not say when. The Government will also introduce a $55 million screening threshold for foreign investment in Australian agribusiness and is “seeking views on an appropriate definition of agribusiness”. There has been no mention of reviewing foreign investment in infrastructure, agricultural supply chains or, perhaps most importantly, water. A register of which foreign entities own a wide range of agricultural-based assets makes sense if it forms part of a cohesive, national plan to grow agricultural wealth in this country. If increased scrutiny on agricultural purchases was revealed as one part of a complete package of new initiatives, designed to pinpoint what type of investment Australia needs to grow, it could be sold more palatably to potential overseas suitors. However, rash statements designed to show the Australian population that the government is “cracking down” on foreign investment do more harm than good. What does the Government tell potential investors who query the decision now? That it will get back to them? Once the FIRB has been ordered to scrutinise a potential sale, on what is it basing its decision to approve or deny? The Queensland Farmers Federation put their concerns succinctly: “In the absence of (knowing why a sale would be approved or rejected), there is a concern that this decision throws barriers in the way of foreign investment and sends the wrong message to overseas investors who see value in investing in Australian agriculture. “Without explanation of the long term objective, it risks inconsistency with the government’s objectives around free trade agreements and promoting our sector around the world.” It has been well documented that the Government, and especially the Prime Minister, have had their troubles of late, but announcements like this have the potential to cause long-term damage. Australia cannot afford missed opportunities when it comes to investment.

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DAIRY NEWS AUSTRALIA MARCH 2015

OPINION // 17

Profitability begins at home CRAIG DETTLING

IN RECENT times there

has been increased discussion about dairy farm profitability, by industry groups such as Dairy Australia, Australian Dairy Farmers, state farmer organisations and other industry commentators. Much of the talk is around wanting a higher milk price. While strong farm gate milk prices are desirable, they are not the only major factor in determining profitability, as even in low milk price years there are many farms which are still profitable. The biggest factor in

farm profitability is farm management and business. The Farm Monitor Report and other sources indicate that different systems – of various intensification, stage of development, size and location - can all be profitable in a number of climatic and economic conditions. We have to ask ourselves: “What are these farmers doing differently to keep profitable? What makes them stand out from everyone else?” These farmers are a wealth of information and knowledge, from which we can take away ideas that

could be applied to our own farming situations. There is a vast pool of information and opportunity for learning within the industry for any dairy farmer to tap into, if they are willing to seek these resources out. Field days, seminars, discussion groups, written and digital media, all provide us with a range of information and skills which can be used to improve your knowledge base or understanding of your farm system and business. Understanding both the physical production as well as financial business aspects of your farm

system is critical to formulating a sustainably profitable dairying operation. Chasing the highest milk price does not necessarily promise the biggest return, but instead the focus should be on the overall profitability of the system, and how all the pieces of the “dairying puzzle” fit together to achieve your goals and desired outcomes. This 2014/2015 season is shaping up to be the third highest milk price, which certainly aids achieving good profits on the farm. However, if profitability for you is still proving elusive, now would be

Field days, seminars, discussion groups, written and digital media all provide farmers with a range of information and skills.

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

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a good time to assess the farm system as a whole and implement changes so that you can achieve financial success, because global demand and supply for dairy products will determine the milk price and cause it to remain volatile and continue to fluctuate up and down in the future.

The largest impact on dairy farm profitability comes from within the farm gate. Thoroughly understanding and taking charge of the farm business will deliver greater results than concentrating on factors beyond an individual’s control. Timeliness is cru-

cial. Make decisions now instead of waiting around for others to lead the way or for industry trends to suggest what you should do. Take charge of your business and shape your own future. • Craig Dettling is a dairy farmer based in south west Victoria.

DAIRY NEWS AUSTRALIA MARCH 2015

18 // MARKETS

Is the NZ drought enough for a market turnaround? IN THE last couple of weeks we have seen a welcome recovery in the Global Dairy Trade price index – albeit on reduced volumes for this time of year. Certainly across the Tasman, bank and other industry analysts have rushed to revise up forecasts to around NZ$5kg/ MS for the current season, which has just a few months to run. Fonterra has said it now expects its milk collections for the full year 2014/15 season to fall 3.3%, due to the early herd drying-off by producers hit by lack of grazing and stored feed, made worse by the prevailing low milk price in this season. However, in its latest review, the Fonterra Board stayed put on its NZ$4.70kg/MS payout. So who’s right? Firstly, it’s debatable whether the NZ production downturn will be that bad for the industry as a whole. A fall of that order in the full year output would mean a huge decline in milk output over the late-season months – in the order of 18% for the February to May period. In our latest Global Dairy Directions analysis, we are less bearish on the production decline than Fonterra for the wider NZ industry – we think it’s more likely that output ends 2014/15 in line with the previous year after the first half of the season saw 5.4% more milk solids collected.

from northern hemiEven in a normal sphere giants EU and season, more than 62% the US. of NZ output is collected Milk output growth before January, so a high is expected to slow in proportion of this season’s both the EU and US, production is already in the largely thanks to lower vat and sold. farmgate milk prices, Nevertheless, many and will continue to analysts and commendo so in the first half of tators have credited the FRESH AGENDA 2015. drought effect as the priJO BILLS However, there are mary reason we’ve seen a also weaknesses in lift in GDT auction prices internal demand for dairy products – at recent events. The deliberate reduction in product for cheese in the case of EU and fluid availability for the GDT auction proba- milk in the case of US. Even small changes in consumpbly has a bit to do with that trend as well. In a supply chain sector that has lim- tion and production within these major ited transparency in stocks either side dairy producing and consuming regions of trading, a sentiment of “fear of miss- can release a significant amount of milk ing out” has been stoked by the consid- into exportable products that may in erable talking up of the drought effect. turn hit global trade. Based on our Global Dairy Direc(Interestingly Fonterra has now added to the volumes on offer for the remain- tions analysis, the net effect of the ing three GDT auctions of the season.) interplay between production and conBut let’s put the range of possible sumption within these two dairy juggeroutcomes for milk availability into per- nauts is – by our reckoning – higher milk availability compared to last year. spective. As this chart (above) shows, the When you add up the late season milk effect of the slower NZ output increase in milk availability from the US – either resulting in a flat full season and EU outweighs even the more pessioutcome or even a 3% decline result mistic scenario for NZ production loss across the industry for 2014/15 – the over the first half of 2015. So the global dairy market’s supvolume impact is still smaller than the estimated increased availability in milk ply-side issues won’t be completely

resolved by the drought conditions in New Zealand. At least, not while EU and US are heading into a seasonal production peak with domestic consumption not keeping pace with milk output. It’s not surprising then that at their review meeting last month, Fonterra’s Board decided to stick with their payout forecast, despite the recent improvements in GDT results. Based on our analysis, a sustained recovery in international prices is still some way off, and will require either a further slowdown in northern hemisphere milk production and/ or improved demand – either from importing countries or from the US and EU, which would further reduce the avail-

ability of exportable products. Clearly the global dairy market has many moving parts, and while less milk from NZ has provided some welcome impetus to prices, caution remains the order of the day – particularly as the EU heads into the relatively new era of quota-free production with increased direct exposure to international market volatility. There will undoubtedly be a few bumpy months and years, as competitive regions that had been constrained by quota increase production, and less favoured regions contract. But that’s a whole other story! • Jo Bills is a director of Melbourne-based firm Fresh Agenda. (www.freshagenda. com.au)

Index gains ground in February FRESHAGENDA’S AUSTRALIAN dairy export index

finished February at 189 points, gaining 44 points since the end of November – 23 of them during the month of February. Butter has made the most gains over the past quarter, with spot prices rising over US$1,000/t since the end of November, as demand has remained healthy and availability is tight, particularly from Australia and New Zealand. Whole milk powder (WMP) has been the other big mover over the past month, with spot price quotes increasing by $US900/t during February as the drought conditions in New Zealand worsened and buyers became a little more concerned about sourcing product than they have been for many months. The tighter supply of WMP has also been reflected in the improvements in the Global Dairy Trade price index over the past two February events, where average GDT prices have risen by 9.4% and 10.1%. WMP is the most traded product on the GDT platform.

For the Australian dairy industry, cheese is the dominant export product. Cheddar prices have gyrated within a fairly tight band over the past quarter, but have gained US$350/t over the three months since the end of November. The Australian dollar has also continued to be a positive influence for Australian export returns, losing 8 US cents in value since the end of November, and finishing February at US$0.78. • For weekly updates, follow us on Twitter or visit http:// www.freshagenda.com.au/ 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.

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MARKETS // 19

Market steadies but Russia, China infl uence full recovery Export demand remains strong Dairy NewS aUSTraLia june, 2012

agribusiness // 17

or Russia return to the tals appear much more short term supply presis impacting production, for Californian producAFTER AN uninspiring market in force, any unexencouraging as we head associated with however the overall impact ers to deal with the added 10 months, the start ofonly 2015 cents/litre insures March (AUD 41c/L) to 28 With season 2011/12 a few incremental change in milk production (year-on-year) Euro cents/litre (AUD 36c/L) in April. from ending, attention is now pected strength in productowards a new season and drought in New Zealand, is likely to be diluted by the burden of high-priced hasweeks understandably created Profit margins are under pressure in the focused on 2012/13 milk prices as farmUS, and in NZ Fonterra has announced tion during the next few quota measures in Europe, the formulation of openhuge increases of late 2014. bought-in feed. ers consider strategies for the coming a great deal more optimism the final payout for the 2011/12 season year. In some domestically-focused months could threaten furing prices, keep an eye to and varying degrees of The bottom line is that Local analysts also indion the sellers’ side of global has been cut from NZ$6.75-$6.85/kg MS regions, renegotiated contracts incorGLOBALimpacT IMPACT gLobaL to NZ$6.45-$6.55/kg (AUD$4.96porating lower prices and reduced ‘tier the horizon as the recovery ther gains. marginMS pressure in most the modest recovery forecate that harsh winter dairy markets. JOHN DROPPERT JohN DropperT $5.04). one’ access are undermining farmer • John Droppert is industry remains supply-driven. exporting regions. weather in the Upper Mid- cast for 2015 has been Effectively, The long-awaited floor For global dairy markets are confidence and supply stability. pricesthe will fundamenboth Shifts in private label contractsthe and promany to farmers export-oriented Island analyst with Dairy Australia. Until China and/ Whilst brought forward by therebalancing. Lower has provided big- west and eastern states appears haveinbeen slow production growth and stimulate regions, a lower price outlook relative to cessor rationalisation have seen milk boost totheir theintake market, reached, and prices areadds to the gest demand, and as this occurs we will ulticompanies adjust requirethe current season not only mately see a price recovery. Key factors ments Fonterra’s and pricing to meet the changchallenges of doing business, but seems with dramatic rising. to watch on the global scene will be the to contradict the positive medium term ing demands of a highly pressured retail to itsLower milkcontract intake foreA string of increasingly rate at which milk production overseas marketplace. prices and outlook of Asia-driven dairy demand cuts slows in response to lower prices, the a lack and of alternative growth. GDT supply offeropportunivolpositive GlobalDairyTrade cast 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 helping stoke supply (GDT) auction 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 for southern farmresults gate milkhas prices – umes published in the recent Dairy 2012: Sit- these challenges, the underlying domes- April (leap year adjusted), whilst early nomic growth rates that support China’s economic growth, and the value concerns amongst buyers. seen the market narrative 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. Demand for exported dairy prodconsumption a growing finished the March 2012 quota year up ever, the surge in supply has outpaced opening of $4.05-$4.40/kg ita dairy Although the and mooted change toprice onerange of recovery. ucts remains a positive and will conMS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. 3% decline in full season The weighted average 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 In the seasons following with the 2008 this season up 10% on last year - a huge tip in favour of buyers in dairy mar- large emerging markets such as China, report considers wider market pic- intakes was greeted GDT price has the increased ture and summarises the many factors financial crisis and subsequent com- market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increasing almost the modity scepticism price recovery,when farmersit in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunction at play;30% the keysince theme of thestart current sit- some export-oriented regions haveend seen solid uation being re-balancing released at the of ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Locally, of January –that notofquite the in the was 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. ongoing dry gradual recovery expected. higher-cost competitors in theconNorth- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable perIn regions of Australia focused on January, have subsequently ern Hemisphere those expanding South America. producing milk,should many farmers ditions andamongst the official So, howdrinking excited TMbeen reduced in capita consumption. Whilst the dairy 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. event declaration we get? Is this aoffaster This season, favourable weather con- tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that balof renegotiation supply contracts adverse ditions have further enhanced and reduced ‘tier will one’ supply. mid-February suggestmilk a as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. recovery, oraccess one to that go in material impact. further? Uncommitted dairy International dairy products are already hard demand has been robust to find in Oceania, with a for a number of months austraLian now, with lowerDairY, prices ASEAN-Australia-New pro- number of Australian manrice and wine exporters to Zealand FTA (AANZFTA). ufacturers seeing milk viding much greater “Protectionist sentiMalaysia are the biggest scope ment over agricultural in a free trade buyers flows fall short of aggresfor winners price-sensitive goods is rife and growagreement (FTA) signed sive pre-season budgets. thatbetween werethe sidelined ing across the globe, so to provide portion pack two coun- during austraLian FooD is pleas(200-330ml) configuracompany Freedom Foods situation is less 2013tries tolast domonth. business. in this context itThe ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a clear with regard to northHowever, two of thetobigforge an agreement seven years of negotianew milk processing plant ucts. with Malaysia thathemisphere has The NSW location will allows a liberalised to cash in on growing ern supplies. gesttions, dairy import markets dealt with some sensiprovide access to the most licensing arrangement demand in Asia. Some traders are – China and Russia, key agricultural issues for Australian liquid milkaretive 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 reporting that in Europe exceptions. AANZFTA,” says Fraser. strong links to the Austraaccess for higher value the first Australian greenprompt is the becomChinese imports remain Sealing deal: Malaysian trade minister Mustapha Mohamed “While under the supply retail products. fields expansion in UHT in lian dairy industry and will with Australian counterpart Craig Emerson after signing the deal. AANZFTA agreement expand its arrangements It guarantees Aus10 years. ing more difficult to source welltralian below year-ago levels most of Australian agriwith dairy farmers for wine exporters Freedom’s wholly but also through technical Despite the complethrough streamlining culture’s key–interests supply of milk. The new the best tariff treatment mainowned subsidiary Pactum and recentersincreases in as local production 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 benchmark prices suptains its recovery, and dairy and ricekey much remains to be done border’ restrictions.” are two sec- laration processes and try. It also allows open plant. Some of its products for Australian milk supply The FTA was signed on for Australia’s farmers to improved marketing tors where incremental – value-added, sustainable access arrangements from will be sold in Australia. port this – but the outlook enormous inventories 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 coming spring accumulated in the latements have through by Australia’s Trade and of the Asian region and been negoti-thecommodities. Initially the plant will with all tariffs eliminated given Asian consumCompetiveness MinisThe Malaysian market beyond. ated under the Malaysianthis phenomenon produce 250ml and 1L by 2026. 2014 period are ers’ rising incomes and suggests 2013/early 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 may worked through. Malaysian counterpart now throw its attention lion in Australia agricul“This trade dealbe wasshort-lived. line capable of 100 milFederation says the trade there will grow for qualtowards ensuring agricul- Mustapa Mohamed. turalthan exportsantic– including particularly The impor-earlier lion L. The processing and dealthe will improve interity dairy products from In case of Russia,alsothe 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 recovery import embargo remains centre in completed FTAs will be as well-positioned sugar export market and as dairy thatipated have beenmarket less carbon, use less water, TM for Australian agricultural as Australia, whose To viewsuch the performance of Zoom in the Malaysian market export with South Korea, Japan, Trial facing a competitive disand be more energy-effigoods. milk is well regarded. may take thefifth-largest marginwheat presin force, and though some as Malaysia’s closest tradChina and Indonesia as market. advantage in Malaysia cient than equivalent “After seven years of The new plant will web in trials, visit our site: Data sure off European farmers product is trickling ing partners in ASEAN, With an annual economic immediate priorities. compared with New ZeaUHT facilities in Austranegotiation, the NFF is in via allow Pactum to meet www.cropmark.com.au/Trial-Data.aspx better. “These are all markets and in some cases growth at about 5%, land which already has lia and SE Asia. Pactum under no illusion of how growing demand for just in time for the season alternative suppliers, volThe FTA will guarantee Malaysia forms an impor- with enormous growth expects site preparation to challenging it has been to a completed FTA with UHT dairy milk, and add tariff-free entry for 97.6% opportunities and where part ofmoves the ‘Asian place.” while tant begin in October 2012 and complete FTA with byMalaysia to capacity for valuerecent umes havethis collapsed as in peak, 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 to allow payment of supermuch as 75%. from Australia once it trade in agriculture still opportunity this presents nals some administrative Pactum makes UHT dent Duncan Fraser says. its Sydney factory. Pactum enters into force. This will agricultural exist, not only through for Australian Austra-fines over products for private label FTAhand, will fill asigns benefits is expanding its capabilithree years OnTheone of forlevy rise to 99% by 2017. tariffs that restrict trade producers, says Fraser. and proprietary customers. number of gaps within the lian agricultural exportties at the Sydney plant (interest free) will reduce direct negotiations with the immediate cash flow certain EU member states ZoomTM is the latest tetraploid annual ryegrass implications of producing suggest a potential weak016-017.indd 17 6/06/12 1:41 PM over quota. ening of the ban, whereas from Cropmark Seed’s plant breeding programme. A sluggish domestic EU on the other, the lack of a ZoomTM is a specialist winter feed. An ideal break crop market is likely to encourresolution to the conflict TM between maize and other crops, it is very quick to establish age exports, while a weaker in Ukraine indicates it will ZOOM IS AVAILABLE FROM YOUR Euro will allow traders to likely outlive its initial 12 LOCAL SEED MERCHANT OR FARM and shows exceptional autumn/winter growth and rapid TM price competitively in US month timeframe in some MERCHANDISE OUTLET re-growth. Zoom offers the advantages of excellent dollar terms. form. palatability and high metabolisable energy content. Renewed strength (or a Sluggish purchasing more modest slowdown) by these two key markets ZoomTM can provide multiple grazings over autumn in US milk production also remains a significant drag and winter before being shut up for high quality threatens to derail further on overall dairy demand, silage in the spring. supply-driven price gains, and its ability to soak up however there are exceprapid growth in supply. tions. With demand in a California (the larg‘steady as she goes’ phase, Cropmark Seeds Australia Pty Ltd est dairy state) remains the current recovery has TM Freephone: 1800 889 039 been almost entirely supply in drought: margins may For further information on Zoom , contact our regional agronomists: Freefax: 1800 889 037 remain positive for farmers driven. Western Districts, SA, Tasmania: Jason Hill – 0427 607 375 in other parts of the counThe emergence of a www.cropmark.com.au North & East Victoria, NSW: Adam Sheedy – 0428 132 096 try, but lower farmgate drought across parts of prices reduce the scope New Zealand’s South

Zoom – the king Freedom Malaysia FTA benefits of dairy annual ryegrasses Foods plant targets Asia

Dairy News AUSTRALIA march 2015

20 // breeding management

New Feed Saved ABV ready for April release From April, dairy

Dairy Futures CRC CEO David Nation at the Feed Saved ABV launch.

farmers will be able to identify bulls that can save at least 100kg of dry feed matter per cow, per year while maintaining milk production. The Feed Saved Australian Breeding Value (ABV)

Crowd at the ABV launch at Ellinbank.

is the culmination of eight years research and development activity by Dairy Futures CRC and a range of local and overseas partners. It is the first feed efficiency breeding value in the world to incorporate

real feed intake data, as well as a prediction of feed required for maintenance purposes, making the trait more relevant for farmers. Dairy Futures CRC CEO, Dr David Nation, said the Feed Saved ABV allowed farmers to breed cows in a new way - by reducing their maintenance requirements for the same amount of milk produced. “This is the first practical use of genomic tests to measure a trait that can’t be routinely measured on farm,” Dr Nation said. “It is the start of the extensive use of DNA-testing to improve the range of traits that farmers consider important for their herds. “Visually, you can’t spot a highly feed-efficient cow, but farmers can now breed for it. “Any increase in feed efficiency is valuable for dairy farmers because feed represents about half of a typical dairy farm’s variable costs. “Sustained use of this new trait, when used in conjunction with the new Health Weighted Index (HWI), will result in 25kg less feed required for a typical dairy farm. “This real feed intake data was incorporated with a prediction of the feed required for maintenance purposes to make the trait more relevant to farmers’ breeding objectives.” The Feed Saved ABV will be published for the One of these groups of cows eat less feed to produce the same amount of milk.

first time in April 2015 in all the Australian Dairy Herd Improvement Scheme’s (ADHIS) publications, including the Good Bulls Guide. It will form part of the ADHIS’ three new breeding indices, so farmers who make bull selections using one of the indices will be including feed efficiency in their breeding decisions. “All of the ADHIS’s new breeding selection indices now include the Feed Efficiency ABV trait, so by choosing elite bulls farmers will be breeding for greater feed efficiency.” Dr Nation said the eight-year development process had involved measuring the feed intakes of almost 2000 heifers across Australia and New Zealand, then studying two lactations of production from the heifers with the greatest and least feed efficiency. “This is a world-leading outcome for Australia. Our genetics researchers were among the first to focus on measuring feed efficiency and this has led to a breeding value that incorporates real feed intake data as well as a prediction of feed required for maintenance purposes, thus making the trait more relevant.” The Department of Economic Development, Jobs, Transport and Resources (formerly DEPI) and the Gardiner Foundation contributed to the research.

DAIRY NEWS AUSTRALIA MARCH 2015

BREEDING MANAGEMENT // 21

Switch to seasonal calving didn’t add up RICK BAYNE

IF THINGS had gone to

plan, Simon Scott would be running a seasonal calving system this year instead of his usual split system. The switch was on the agenda as part of a major overhaul of his farm at Barongarook West near Colac in south-west Victoria. The farm has been chosen as the focus farm for the WestVic Dairy Focus Farm program and has gone through substantial change over the past six months. But not all went to the original plan. “We looked at going from split calving to seasonal calving but that’s where the Focus Farm group came into its own,” Mr Scott said. “Some members of the group thought once a year calving was good; others thought there were risks involved in changing from the existing 40% autumn and 60% spring calving.” After consulting his farm consultant, John Kane, and doing analysis, Mr Scott shelved the major transformation and instead opted to ‘tweak’ his current system. Mr Scott, who farms with his partner Linda Knight and their five chilA change to 100% autumn calving wouldn’t have paid off for Simon Scott.

WHO:

Simon Scott and Linda Knight WHERE:

Barongarook West WHAT:

Split calving

dren and his father Lionel, had seen seasonal calving as a potential solution to some of their farm’s issues. A feedpad was also on the agenda, but it too has fallen to the wayside, however other good ideas have come up in the Focus Farm planning and are already proving their worth. “We had thought we’d take those 60% from spring and turn them into autumn cows,” he said. “We looked at 100% autumn but there was a fair bit of risk involved. There was a cost in transferring those cows over and extended lactation.” The farm was likely to face lower production under the plan. “When we looked at the milk prices, a 40% autumn and 60% spring was very similar price to a 70% autumn, 30% spring and that’s what we’re going to. “When we went to

100% autumn in the modelling, our milk price would drop about 17c/kg MS. It wasn’t as rosy as it looked from the onset.” In the past year the farm has gone to 100% Livestock Improvement Corporation (LIC) genetics. “Because we’ve got a wet farm we wanted a medium-sized cow with good components that we could feed on a pasturebased system,” Mr Scott said. “The New Zealand type of cow suits us. We use a mix – about 60-70% New Zealand Friesian and the balance is probably 20% Kiwi-cross and the rest pure Jerseys. That works really well for us.” They have been with LIC for about 10 years while also using some other companies. In the past year they have committed to using solely LIC. “I like their stuff,” Mr Scott said. The farm aims to rear 80-100 heifers each year as replacements, gradually improving the quality of the herd and also entering the export market. They get about 50% heifers and can rear up to 170 calves a year. “We’ve only been exporting for two years but it’s been very good, especially if you can get rid of them once you’ve weaned them and don’t

have to carry them too long,” Mr Scott said. While the full-scale calving change hasn’t happened, Mr Scott says it was worth looking at alternatives and he doesn’t totally rule out seasonal calving sometime in the future. The main reason for the review of the calving pattern was to increase pasture consumption. Mr Scott believes the new split will “have more cows in the right place at the right time”. “You’ve got more cows when you’ve got green feed. We hope we can increase our pasture utilisation by roughly a tonne of dry matter per hectare, which is worth a fair bit of money.” Growing good pastures is a high priority for Mr Scott but the farm faces challenges which the Focus Farm group is helping to address. It is in three separate lots, has large paddocks, and gets very wet. “We only have 100 acres (40ha) before you have to cross a road which makes it difficult in winter when it’s dark,” Mr Scott said. “It gets extremely wet, particularly the area where the dairy is. We looked at the drier parts of the farm and how we could access those.” They have put in an

Simon Scott in the dairy on his Barongarook West farm.

underpass, another will go in during March and there are plans for a third, opening access to the dry areas. Fourteen troughs have been added to the water system, along with a new solar pump and tanks plus 300m of laneway. The extra water points will allow more intensive strip grazing. The paddocks have been reconfigured from an average of about 7ha to 4ha. There has also been a focus on improving the potash levels of the land.

Mr Scott said he had been determined to introduce a feedpad but after discussions with the Focus Farm group he dumped the idea in favour of underground drainage and changes to the paddocks. The farm is blessed with good rain, including over summer, and has good growth, and has boosted the milking numbers above 400 to keep up with the growth. “We’re really struggling to eat the grass we’ve got. We grew 36ha of summer dry land crops of rape and

turnips and we’re going to yield close to eight tonne per hectare dry matter. It’s been phenomenal this year. We haven’t fed heifers hay or silage.” While the breeding plan has been up for debate, Mr Scott is pleased to have options on the table. “You’ve got to think ‘is there a better way of doing things?’. I’m happy to listen to an idea. I’ve been swayed. I’ve had my mind changed.” The farm will host an open day on April 14.

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DAIRY NEWS AUSTRALIA MARCH 2015

22 // MANAGEMENT

More land buys feed security GORDON COLLIE

BUYING ANOTHER

property has been the answer to securing feed for sustainable dairy production for Queensland farmers David and Robyn Kucks. The couple moved to expand their land area late last year in the face of a string of dry and variable seasons at Quinalow on the northern Downs. “Last summer was terrible. At one stage it looked like we wouldn’t be able to make any silage at all. We needed to be able to grow and conserve more feed, to be less exposed,” Mr Kucks said. Robyn Kucks in the calf rearing pens.

They acquired a 220ha property which is about 5km from their original 490ha holding on the outskirts of town. With additional leased country they can now comfortably stabilise their milking herd at their target 400 head and push annual milk production beyond four million litres for the first time. David and Robyn have also been rearing all their own calves and this side of the enterprise will also benefit greatly from improved feed security. Bull calves have been grown into a 300kg plus weight range for the Japanese market but in difficult seasons when feed

WHO:

David and Robyn Kucks WHERE:

Quinalow WHAT:

Total mixed ration

supply tightened they had to unload to the vealer market. Mr Kucks is also looking forward to having pasture to comfortably feed 250 heifers. There has been good local demand for herd replacements and the market is expected to tighten with new mega dairy projects planned to supply the Chinese market. The couple have also been supplying the export market which is looking for heifers around 120kg at four months of age to fly into Asian countries. There is also the added luxury of selecting the best heifers for their own herd. “It has allowed us to cull heavier for type and mastitis and our overall performance has improved from having a younger milking herd,” Mr Kucks said. The use of sexed

semen to increase their female calf ratio has been tried with limited success getting acceptable conception rates. “But we do plan to try it again with the stronger market emerging for heifers,” Mr Kucks said. The milking herd is fed a total mixed ration with year round calving for a stable milk production averaging just under 30 litres a cow daily at 3.5% butterfat and 3.25% protein. The staple feed supply is dryland summer forage with the herd getting through about 4000 tonnes of silage a year. “I’d like to be able to grow corn, but there is just not the soil depth and rainfall reliability,” Mr Kucks said. Silage making strategy is dictated by the seasons and they have been getting good results from the Pioneer sorghum variety Megasweet. “In a good year, you can get an early cut and then let the crop grow to full grain to maximise yield at the second cut. Young sorghum gives us higher protein while the mature crop provides energy and volume, so it’s a trade-off. When you grow dryland crops you work with what you’ve got,” Mr Kucks said. Cost pressures are reduced through the extensive use of by-products in the mixed feed

The feed ration is fed in a 110m long concrete trough which the Kucks built a roof over.

ration. They have been using stale bread at a rate of about three tonnes a day for the past 18 months and are pleased with the results. “It’s equivalent to feeding wheat at about $240 a tonne and you can’t buy wheat for that. Plus there is no milling cost.” Potato chips are sourced from a factory in Brisbane and Mr Kucks would like to buy a lot more than the supply available. They also use syrup from the Dalby ethanol plant which is stored in tanks and pumped into the mixing wagon. “It’s a readily available cheap option with about 20% protein but no energy value.” he said. About 3.5kg of wheat per cow is added to the feed mix. No grain is fed in the

dairy and when their new 25-a-side swing over herringbone was installed in 2002 they were able to make savings by not installing a bale feeding system. The feed ration is fed in a 110m long concrete trough which they built a roof over three years ago. “We thought about building a loafing shade area, but it has been a good decision to instead make feeding conditions more comfortable,” Mr Kucks said. “When the cows are contented they stay and eat more. It’s really noticeable in hot conditions when they would otherwise be gone under a tree by 7am. The covered feed area has also helped reduce wastage, particularly in wet weather.” Mr Kucks said he was considering building a second feed pad so

that staler cows could be pulled out of the herd and fed a different ration. “We have estimated savings of $5000 to $6000 in feed costs without any loss of production.” A big benefit would be stop cows in the latter part of lactation from putting on too much condition. “There are health benefits in the next lactation and leaner cows have better reproductive performance. Over condition cows have more trouble staying in calf.” Mr Kucks said water supply was the big limiting factor in the future. They had tried sinking new bores with limited success. A 3km pipeline was installed to bring stock water from the original family farm which is no longer in dairying. “We wouldn’t be here today without that.”

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MANAGEMENT // 23

Irrigation changes feed patterns

Cohuna WHAT:

Irrigation

gravity-fed commission channel - and was then laser-graded. Although the recent installation involved 10ha, installing 900m of pipe, Clark said it is important in the grand scheme. Previously, to fill the channel that has been replaced with pipe, the Fehrings had to fill 1km of channel. “This will now save two days of watering as we don’t have to fill channels. Come spring, I’ll start it up and it will go. I won’t be checking for yabby leaks and leaking bays.”

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Clark Fehring

als, they go out a bit longer. Currently, I’ll put some annuals in just to dry the ground off a bit earlier. “Once this farm is more established, we could plant a rotation of annuals and summer crops. “I don’t have to put Lucerne in but I have the flexibility now to do so. Lucerne hates leaking channels and leaking bays. “The amount of feed you can get out of annual ryegrasses and Italian ryegrasses is amazing. We can also include double cropping now. “That’s the other beauty about these systems, I choose which bays to keep dry and which to water. “My ultimate goal is to only buy in grain and concentrate, and we haven’t quite achieved that yet. This will be a great help.”

U NIQ U

has continued to modernise its Cohuna dairy farm, installing a pipe and riser system to irrigate an additional 10 hectares. The Fehrings were the first in the district to modernise their irrigation scheme, replacing 800m of commission channel in 2011 with underground pipes, utilising Government funding. Clark Fehring says the new system will save time, reduce water loss and transform pasture and crop selection. Clark is managing the 80ha family property established by his father and mother, Max and Denise, as well as an additional 80ha – adjoining the original farm - he purchased with his three brothers. They are milking 250 cows. It was the adjoining 80ha farm that first had the piping installed – replacing 800m of

still enables him to water what he wants, when he wants, and without the hassle of filling channels days before, and repairing them. He has retained one small channel, and pipes the water into this, which is then poured into bays. It’s a good example of making the new system fit into an existing system. “You don’t have to rip everything up, you just make it fit your system,” he said. “It depends on land lay-out, some farms may have kilometres of channel with not one outlet, but you can fill a channel and reduce the number of risers. Risers are normally the main cost.” He estimates it costs six litres of diesel to pump 1 megalitre of water. “I’ve always said to be water efficient you have to be energy inefficient,” he said. “There are farmers that tick both boxes, and good examples of it, but we don’t have that choice here as we’ve always had to pump water and don’t have many options to use gravity feed. “Channels win hands down in cost, but if you’re an intense farmer, these systems provide piece of mind. When calving or cutting hay, I’m not worrying about it.” The new irrigation system means fertigation could be utilised in the future and has led Clark to think of future pasture and feed. “We normally put in more Italians than annu-

LE •

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Clark used Cohuna firm G & M Poly to provide and install the system. There were 16 bays and this has been reduced to six. The bays will be laser-graded in the future. Before installation, Clark had a full farm plan designed and said this showed him different ways to reduce the required amount of pipe. “By changing channels and changing bays, we saved 800 metres of pipe. At a conservative $100 a metre installed, that’s $80,000.” There are examples of pipe and riser systems that are fully automated and utilise software that enables the user to “set and forget” their waterings; or monitor them from a computer or smart phone and make changes from there. The Fehring system is more basic as Clark wants to see how these systems perform over the next five years. However, without the “bells and whistles”, it

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DAIRY NEWS AUSTRALIA MARCH 2015

24 // ANIMAL HEALTH

Recognise stages of labour to avoid calf deaths ARGUABLY THE most

dangerous journey a dairy calf will ever make is that from the uterus of its mother, down the birth canal to the outside world. Perinatal mortality can be defined as the death of a calf within the first two days of life, irrespec-

tive of the cause of death or circumstances at calving. This does not include calves that are born prematurely (prior to 37 weeks). Research from the US suggests that perinatal mortality averages at 8% which not only is a welfare

concern but also has a significant impact on a farm’s subsequent production and profitability. The majority of perinatal deaths occur in calves that were alive at the beginning of calving, suggesting that many of them are preventable.

GEMMA CHUCK

The presence of a water bag signifies the first stage of labour.

Part one of this series discusses how to reduce perinatal mortality from

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the beginning of the hazardous journey that is birth. The stages of labour Calves that suffer a prolonged or difficult birth (dystocia) are at increased risk of perinatal death and calfhood disease. There can also be a lasting negative effect on subsequent milk production. To help avoid this, it is important to recognise when cows and heifers are in the various stages of labour and to know how long these should be in a ‘normal’ calving. Stage 1 (3-6 hours) The first stage of labour can vary greatly amongst individual animals and the changes happening within the body are not clearly visible from the outside. During this stage the muscles within the walls of the uterus are beginning to contract and the cervix is progressively dilating with each contraction. The contractions may initially be 15 minutes apart but by the end of Stage 1 should be about three minutes apart. The mucoid plug, which has existed in the cervix during pregnancy, is expelled and the vaginal discharge becomes more liquid. From the outside Stage 1 labour can be observed as separation from the rest of the herd, tail lifting and swishing, mild kicking of the belly, increased frequency of lying down and getting up and the presence of a ‘water bag’ (see photo). An examination should be performed if abdominal contractions (Stage 2, see below) have not begun after six hours, although this first stage of labour may be prolonged in heif-

ers (up to 12 hours). Stage 2 (30 minutes-4 hours) As a cow or heifer enters the second stage of labour her cervix should be fully dilated and there should be visible abdominal contractions (‘straining’). During this stage, the ‘water bag” breaks and the calf enters the birth canal. In a ‘normal’ delivery the calf should be positioned head first along with both front legs (a ‘diving’ position). The cow or heifer may lie down during Stage 2 due to increasing pressure in the birth canal and pain from contractions. As the calf is expelled the membranes over the head of the calf should rupture, allowing the calf to breathe for the first time. Although the duration of Stage 2 labour is variable it is advised that animals are examined after two hours if there has been no visible progress. Stage 3 (2-12 hours post-calving) In this final stage of labour, the foetal membranes or placenta are completely expelled. Knowledge of these various stages of labour allows early intervention and assistance if necessary. Consequently, this will help in the more rapid and safe delivery of the calf and improve survival of both calf and cow. Next month: Common calving problems and how to approach them. • Dr Gemma Chuck is a dairy vet working at The Vet Group in south west Victoria. She has a special interest in calf rearing and is currently undertaking her PhD in this area at The University of Melbourne.

DAIRY NEWS AUSTRALIA MARCH 2015

ANIMAL HEALTH // 25

CowScout keeps better track of the cows CHRIS DINGLE

MARK BILLING, from

Larpent in Victoria’s western district, does not consider himself a technology nerd, but is certainly an early adopter of techniques and equipment to improve his herd management. “We employ technology that enables us to measure – so that we can manage,” he said. Mr Billing is a fourth generation dairy farmer on Craiglands since his great grandparents walked 40 Jerseys from Ashburton in Melbourne in 1923. He and Samantha are currently milking 450 Holstein Friesians in a closed herd on the 240ha home farm with a 100ha leased property over the road for the dry cows and heifers. Twenty-one years ago they built a 44-unit Westfalia rotary and 12 months later as their cows were calving they fitted electronic cow ID neckbands to facilitate differential feed for production feeding well ahead of most dairy farmers here. At that stage they were herd testing every three or four weeks. In 2006 they had the first installation on a rotary anywhere in the

WHO:

Mark Billing and Sam Simpson WHERE:

Larpent WHAT:

Electronic ID

world of WestfaliaSurge Dematron 70 milk meters to facilitate removal of the clusters and measure the milk quantity very precisely. At the moment they feed an average of 1.8 tonne per cow per year on grain concentrate, pellets and crushed wheat, based on production worked out by their GEA DairyPlan herd management system. The cows are all autumn calving and milking is all year round; as Mr Billing says “we drag the late cows through”. In May 2014 GEA Farm Technologies approached Mr Billing to trial their new CowScout activity monitoring system within an existing pasture-based operation. The CowScout tag, fitted to the collar, works with an accelerometer to gather and record

the animal’s activity which determines when an animal is on heat. The CowScout tag also monitors and records eating or grazing time which creates alerts if the animal isn’t doing well health-wise. “We were given 100 collars and we put the tags on as the cows calved,” Mr Billing said. “Activity monitoring started pretty much from day one.” The data collected is stored in 2-hour blocks and 24 hours of data is stored in the tag itself. The data is then constantly transmitted to the farm database when it is in range of the antenna at the milking shed. Because it is a wireless system, transmitting data via a radio technology, the cows don’t have to go through antennas to download the data. The antenna has a range of up to 500m. “Because we get realtime alerts, high activity cows can be recorded in the software before they come in for milking,” he said. The monitoring of eating activity as well as heat activity allows farmers to better monitor herd health. Real-time alerts can be sent to a smart phone or laptop or tablet to notify immediately if a cow is

on heat, has lowered her eating pattern or if there is a system problem. “Compared with our current system, this is far and away better,” Mr Billing said. “It gives you real time data. We very early picked up on a heifer with a displaced abomasum because its eating behaviour had changed from eight hours a day to four hours. “Our springer paddock is close enough to the antenna that we can monitor real time changes. We even detected a change in the way a sorghum paddock was grazed. The sorghum had sprung up to chest height, whereas the previous brassica was below knee level. “We calved down 450 this year. We are looking at 8500 to 9000 litres per cow this season.” GEA’s CowScout will enable farmers to increase in-calf rates through accurate and timely detection, and provides early detection of fertility problems. Importantly metabolic disorders, especially in fresh calvers can be detected early on through the eating monitoring. This can mean faster recovery time, reduced treatment costs and less risk of reduced milk production.

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Mark Billing with his cows wearing the CowScout neckbands, which help him detect heat activity and better monitor herd health.

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DAIRY NEWS AUSTRALIA MARCH 2015

26 // ANIMAL HEALTH

Don’t jump to conclusions ROB BONANNO

WHAT IS pattern recog-

nition? It is seeing something often enough that one begins to recognise and remember a pattern and is a common cause of people jumping to conclusions.

On dairy farms I am commonly called out to see a cow with a “LDA” (left displacement of her Abomasum) and yet when I arrive at the farm, I have found any number of disease processes taking place. Because a client has seen a few LDA cases in

the past which may have been off their feed and off their milk, they assume that the off-feed cow has a LDA. With suspected LDA cases, the good news is most of my clients see that as a “job for the vet” so they call me out and hopefully, if the cow has some-

thing other than a LDA, the correct diagnosis is often made. However, farmers recognising other “patterns” that can be treated without a vet visit will often result in an unsuccessful and inappropriate treatment. Diagnosis requires

collecting a minimum amount of information and being able to interpret that in light of things like the history, environment or other symptoms or observations that a diagnostician makes. I always try to look at the cow walking in the yard and into the crush,

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I observe her profile and demeanour and can tell a lot by how she is carrying her head, her eyes and her ear position. I watch her breathing pattern, look for distended jugular veins or an extended neck and check her nostrils for discharge or flaring. I try to collect a urine sample, check the colour of her mucus membranes and check her udder for swelling, heat or pain. I often will collect blood to test her ketone levels if I can’t get urine or have a high suspicion of ketosis. I then go to the left hand side of the cow and check her level of rumen fill, and assess whether she is ruminating, and if so how often and how normal are her rumen contractions. I like then to listen for pings and splashes on the LHS. There are a number of possible causes of pings on the LHS of a cow. An “off feed” ping occurs when a cows rumen empties significantly from not eating and the increase in the negative pressure within the abdomen can cause an audible ping. Free rumen gas can also ping but the most common cause of a high pitched ping is a LDA. I have described the sound to students as being like an overinflated basketball being bounced on a concrete path. For me, the real clincher that it is LDA is a clearly audible fluid “splash” when the LHS abdomen is firmly and rapidly balloted (which is like a rapid punching action just under the rib cage) and that there is gas present below the level of rumen fill. These two signs are good to confirm an LDA because the rumen has a fibre mat on top of the liquid contents which will not allow a splash to occur (in all but the most extreme cases of acidosis). The rumen fibre mat also represents the palpable level of rumen fill, and gas in the rumen will never be below that fibre mat. I now listen carefully to her chest and heart looking for crackling sounds, wheezes or muffling. I check her eyes and mouth, her tongue and

teeth then check her RHS lungs and chest, and then ping her RHS gut. The RHS of a cow’s gut is a minefield when listening to pings and splashes. There are many possible causes of RHS gut pings and splashes, too many to describe here, but the most serious abdominal diseases are often diagnosed by a careful RHS abdominal examination. Interpretation of the significance of RHS sounds is usually dependant on things like the cow’s heart rate, her demeanour and her appearance along with the findings of her rectal examination. Cows with a very fluid sounding RHS gut, and a very pendulous abdomen can have very serious intestinal disasters occurring, or could just be heavily pregnant. Interpretation of the other signs and symptoms is critical to making a diagnosis. After I have checked over the whole cow, I usually then perform a rectal examination. I am most interested in examining the colour, volume and consistency of the faeces. Another thing I check is the smell. People laugh when I have a good sniff of the faeces, I am smelling for the distinctive “stench of stasis” - a cow whose gut is no longer contracting has a very typical smell to her faeces which tells me there is some issue affecting the passage of faeces through the gut like a blockage or obstruction. I assess the volume of faeces present as a reduction of faecal volume can indicate either reduced feed intake or some obstruction to passage. Excessively gassy or foamy faeces can indicate post ruminal fermentation and large amounts of undigested grains, sand or grit can indicate indigestion. Watery diarrhoea with or without blood or chunks of the gut lining is a serious concern, and dark, bloody or “blackberry jam” faeces is almost always a serious sign. Making a diagnosis is the critically important step before treatment, and your dairy veterinarian is the best qualified professional to help.

Dairy NewS AUSTRALIA march 2015

farm world preview // 27

Productivity in the spotlight at Farm World The theme for Farm World 2015

is Farm Productivity. This will focus on initiatives that farmers can take to improve their own farm productivity and will enable exhibitors who have products or services relating to the theme to feature them. Over 700 exhibitors will provide visitors to Farm World 2015 at Lardner Park, near Warragul, with a comprehensive range of products to inspect and to gather the latest information to make important buying decisions. One example in the Farm Productivity spotlight is the new ‘Krone Comprima X-treme’ round baler distributed by Kubota Tractors Australia, said to increase efficiency over their current machines by about 10%, producing more than 75 bales per hour. Farm World will be held from Thursday, March 26 to Sunday, March 29. This year a new initiative will enable prospective purchasers to trial an array of tractors, front-end loaders, telehandlers and utility vehicles within a con-

trolled demonstration area. A wide-ranging demonstration, presentation and activity program is again a feature of Farm World. Lots of machinery will be put through their paces and a lubricant specialist will be on hand at the BP Ultimate Pavilion to advice on lubrication matters. Throughout each day visitors can watch demonstrations of a portable sawmill, compost turner, plasma cutting machines, as well as the ever-popular Jacksons View Animal Nursery, Animals of Oz and sheep dog yard trials. The expanded pasture, grain and vegetable display area features a range of new grasses and fodder crops next to the previous proven varieties, as well as a new extensive range of vegetable and grain varieties. A highlight each year is the Farm World – Tractor & Machinery Awards, which acknowledge significant developments in farm machinery in two classes – Best Powered Machine and Best Unpowered Machine.

Farm World will be held from March 26-29.

Last year the awards went to the Deutz-Fahr 7 Series TTV Agrotron and the McIntosh Double Round Bale Feeder. Women in Agriculture is an important facet of the field days, recognising and celebrating the important role women play in agriculture. A special luncheon will be held from midday to 2pm on the Thursday in the Lardner Park Exhibition Centre and

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will feature talks from Dame Quentin Bryce AD, CVO, Governor-General of Australia from September 2008 until March 2014, and Natalie Collard, chief executive officer of the Australian Dairy Farmers. Following the success of the last year’s theme of Health & Wellbeing a permanent health and wellbeing area has been created at Farm World, focusing on initiatives that farmers

and rural people can do to improve their health levels and quality of life. About 20 health and wellbeing related exhibitors including The National Stroke Foundation, Gippsland Women’s Health, Donate Life, Weight Watchers and Latrobe Community Health will be located in the Lardner Park Exhibition Centre. In addition visitors can receive free dental assessments offered by the Royal Flying Doctor Service, hearing tests from the Wimmera Hearing Society and Pitstop Men’s Health Checks. A presentation on how to prevent strokes is also available. The Harvest of Gippsland will again be an important area for visitors at the northern sector of the Lardner Park Exhibition Centre. There is the opportunity to taste and purchase some of the unique food and wine produced in the Gippsland region. The Farm World field days are run in conjunction with strategic partners, the Commonwealth Bank, Evans Petroleum BP and the Baw Baw Shire Council.

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Dairy News AUSTRALIA march 2015

28 // farm world preview

World leader in disc mowers Fresh from holding its first Kuhn

Expo and “silent auction” demonstration day in late February near Werribee South, Kuhn Farm Machinery will hold a display at Farm World. Kuhn Farm Machinery demonstrated at least 40 machines now available in Australia to dealers and their customers, who could anonymously bid for the machines throughout the course of the day at interesting prices. The range of products included disc mowers, rakes, tedders, balers, bale wrappers, cultivators, air seeder/ cultivators, fertiliser spreaders, boom sprayers, a feed mixer and a manure spreader. Bruno Fetiveau, director of Kuhn Australia, said Kuhn is in a progressive expansion phase in Australia with new equipment continually coming on line for their dealer network here. Farmer and contractor customers were also given the opportunity to visit the Kuhn warehouse in Deer Park. Of interest was the release of the Kuhn range of boom sprayers, both trailed and linkage models. Top of the range on show was the Metris 4100 trailed sprayer with a 4100 litre main tank, a 450 litre rinsing tank and a 36m fully aluminium boom. The boom on

Kuhn Australia Director, Bruno Fetiveau, with the FC4060 TCD mower-conditioner.

the Metris utilises Kuhn’s ‘Equilibra’ three-dimensional suspension to enable the boom to follow the terrain regardless of the conditions. Not forgetting the PF 1500 & ALTIS 2002 - a front and rear combination providing up to 3500 litres with the manoeuvrability of a mounted sprayer. A static display that drew much comment was the 42m spray boom on the Oceanis model with a 7,700 litre main tank. It dwarfed an array of linkage-mounted sprayers in the display area. Among the hay and silage

Paul Wilms, Warragul, with a VBP 2160 round baler.

equipment demonstrated was the unveiling of Kuhn’s latest trailed mower conditioners, the FC1060 series. Mr Fetiveau said the new mower/conditioner was the culmination of constant development and improvement and reminded farmers that Kuhn invented the disc mower and is now a world leader in their development. The model demonstrated was the FC 4060 TCD which has a working width of 4m and uses Kuhn’s Optidisc cutter bar with its quick-release knife mounting system. Additional new faces to the Australian market such as the Merge MAXX 902 for merging windrows, LSB 1290 D large square baler and the RW 1610 e-twin round bale wrapper also put in impressive performances and packed the punch for a perfect day. The ‘silent auction’ was very successful with bids coming fast and thick at the very end sealing the deal on a quarter of the machines available. Kuhn Farm Machinery was happy with the response. More information about the Kuhn’s extensive range of agricultural equipment is available from Kuhn Farm Machinery Pty Ltd on 03 9982 1490 or visit www.kuhn.com.au • Some of the machines will be displayed at the Farm World field days on site CB130-133.

John Vella, Winchelsea, with the Kuhn Omnis 1200 sprayer. Richard Templeton, Glenormiston; Jake Dumesny, Swayn & McCabe, Warrnambool; Jason Burleigh, Nullawarre; Sam Newell, Warrnambool.

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DAIRY NEWS AUSTRALIA MARCH 2015

FARM WORLD PREVIEW // 29

Compact Mahindra punches above its weight MAHINDRA, THE

worldâ&#x20AC;&#x2122;s biggest selling tractor company by sales volume, has released a new compact 40hp tractor, the 4025, to coincide with the companyâ&#x20AC;&#x2122;s 10th anniversary of operations in Australia. Despite its size, the Indian company says the 4025 will outwork and outmuscle competing tractors of a similar size. Mahindra national marketing manager, James Halliwell, said the company continues to buck the trend of a market which produces lightweight, cheap products, by putting quality, heavy steel into their products. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a reason this little 40hp is a rocksolid 2360kg, some 650kg heavier than any competitive 40hp model on the market,â&#x20AC;? Halliwell said. â&#x20AC;&#x153;The front axle alone is load rated at 2.5 tonne, the rear linkage can lift 1.6 tonne, and the front loaderâ&#x20AC;&#x2122;s safe working load means you can easily lift round bales safely.

â&#x20AC;&#x153;Size-wise the 4025 fits into the compact category but its durability cycle and strength identify it as more of a utility tractor.â&#x20AC;? The Mahindra 4025 is designed to work more than 1500 hours a year. This durability combines with an excellent turning circle, courtesy of a bevel gear final drive reduction which provides the camber necessary for a tighter radius. A well thought out dual purpose tyre pattern combines a continual centre pad with a modest but effective â&#x20AC;&#x2DC;lugâ&#x20AC;&#x2122; on the outside, while the certainty of four-wheel-drive traction minimises the operatorâ&#x20AC;&#x2122;s chances of spin. A 40hp engine and a sub-$25,000 price tag that includes the self-levelling loader, make this red beastâ&#x20AC;&#x2122;s list of prospective owners quite substantial. The well afforded cockpit is roomy with controls sensibly spaced, and features a top-of-the-range operator seat, with the obligatory fore/aft adjust-

Pasture trials include 60 new varieties

ment complemented by arm and backrest adjustability as well as a clever preload dial which quickly and easily adjusts the spring weight of the seat to the weight of the driver. The Mahindra 4025

4WD starts from just $24,990 with self-levelling loader, or $19,990 without it. The 4025 2WD with diff lock standard (no loader) sells from $14,990. All Mahindra Tractors fea-

Australian News.pdf 3/3/2015 Gippsland Farmer- FWDairy 2015.pdf 1 2/9/2015 17:41:08 AM

4:56:07 AM

ture a leading 3 year / 2000 hour Powertrain warranty as standard. Tel.1800 45 95 75 (toll free) or visit www.mahindra.com.au/ag

â&#x20AC;&#x201C; See them at Farm World on site CB109-110.

CM CM

MY MY CY

AN IMPRESSIVE display of hundreds of pasture andCMY

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fodder varieties have been a feature of Farm World and this year will be even more striking. The expanded pasture, grain and vegetable display area also focuses on the use of simple and successful fertiliser regimes. The Basix Trace Elements team have expanded the display to include a greater option of varieties. The pasture display has identified and proven the universally successful varieties of pastures, including grasses, legumes, herbs and brassicas. The previous showing of 46 of the most successful varieties, some from each category, has been added to 60 new varieties to grow alongside the old ones. Sown at the same time, with the same fertiliser, and irrigated at the same time, comparisons will be clear for all to see. Included in the display are annuals, bi-annuals and perennials of ryegrasses, and perennials of cocksfoot, phalaris, brome, fescue and timothy grasses. Legumes, including clovers (sub, white, arrow, persian, crimson, rose, red, berseem, balansa, and strawberry), medics (burr, hybrid, strand, barrel, and sphere), lucerne, and non-bloating legumes (sulla, serradella, and biserulla) will also be displayed, as well as chicory, plantain, brassicas and sugar beet. The array of stockfeed cereal grains such as oats, barley, triticale, wheat, peas, and canola, has been expanded by adding grains such as rye, rice, safflower, chia, linseed, quinoa, amaranth, lentils, chickpeas and buckwheat.

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30 // PASTURE SEEDS

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Tall fescue does b FINDING WAYS

to better drought proof their property, near Finley, NSW, and make the most of every available drop of irrigation water is a priority for Chris and Heather White. That is one reason why the Whites have turned to growing SF Finesse-Q tall fescue for their milking herd of 1000 cows, attracting the interest of dairy farmers from across the region, who visit the farm for tours and field days to learn more about the couple’s approach. “It is a lot more water tolerant than perennial ryegrass or your annuals,” Mr White said. “If you don’t water it, it won’t die straight away. Even if you never get as much water on it as you want, you still get feed off it.” Mr White said the milking herd held better last season when they

were grazing fescue, and produced more milk, averaging between 6000 and 7000 litres per cow in a pasture-driven system, with minimal supplementary feeding. With the mixed herd of mostly Friesians split calving in February and July to target ‘shoulder’ season milk prices, the fescue has also provided quality feed when it’s needed most. It is complemented with stands of SF 714QL and Force 10 lucernes for year-round feed, as well as SF Indulgence Italian ryegrass for winter and spring feed, mixed with shaftal clover. The Whites became involved in the dairy industry about 15 years ago when they invested in the farm as part of a syndicate set up to generate retirement income. The venture struggled so they moved from their home in New

WHO:

Chris and Heather White WHERE:

Finley WHAT:

Tall fescue

Zealand about eight years ago to take it over. At every point, they look on the farm purely as a business venture which has to be managed to turn a profit. That has meant making some tough decisions, like culling the herd from 1500 to as low as 900 cows during the worst of the drought. It has also led to them exploring some innovative alternatives to sustain production. In

the dairy, that includes feeding the cows dried distillers grain syrup, which is rich in protein and energy. “Everyone told us it couldn’t be done. It was a bit expensive to set up because we had to modify a few things in the dairy but the cows are addicted to it and it’s great for breaking in young stock,” Mr White said. However, when it comes to feed the focus is mostly out in the paddock, with the herd relying on 600ha of irrigated pasture to drive milk production. “We only feed 1.2 kg of grain per milking per cow, and for this area that’s very low,” he said. “The secret is that the pasture has to be good quality. Cows can only eat so much, so the better the quality the more megajoules of energy and the more milk.

SHOGUN HYBRID RYEGRASS IS A PROVEN PERFORMER.

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DAIRY NEWS AUSTRALIA MARCH 2015

PASTURE SEEDS // 31

s best in dry conditions “In the summer, we give them fescue at night and lucerne during the day because it’s safer, and during the rest of the year we give them fescue during the day and ryegrass at night. “We are finding in the spring that the fescue provides slightly higher NDF (neutral detergent fibre) and it helps the cows ruminate.” The Whites aim for a 15-day rotation, with the cows getting access to one small paddock (about 6 ha) per feed. The fescue paddocks are usually established in the early autumn, following a brassica or sorghum. “We get better results sowing while the ground is warm and after the weeds have started to wane,” Mr White said. Considerable attention is paid to preparation, with each paddock being scarified, multi disc- harrowed, then wide-board smudged and sprayed twice for weed control before planting. After soil testing, the first paddocks

set aside for SF Finesse-Q received 3 t/ha of gypsum. They were sown with 100 kg/ha of DAP at a heavier than recommended seeding rate of 30 kg/ha to help keep the weeds out. Every few grazings they are topdressed with either 200 kg/ha of 19:10:0:14 or a combination of 125 kg DAP and 75 kg/ha of urea. “They said we wouldn’t get grazing in winter the first year, but we watered them up straight away and we grazed them in June,” Mr White said. “The main thing we have found is that when they start to turn blue, you know you have to water them. It’s an indication they are starting to get thirsty when you see that slight change in colour, and you need to water as quick as you can. “In the summer we water in front and behind. You get days of 40°C and higher here, so you can water two days in front and behind, and the paddocks won’t

pug. Because of the root mass the fescue develops they also hold cows a lot better in the winter, so we can use them as a grazing pad.” Experience has also shown the Whites that it’s important to graze the fescue on a regular basis, and graze it hard occasionally. “At certain times we top it regularly as well. If you treated ryegrass the same way you would knock it back, but it’s the secret to getting fescue to grow well,” Chris says.

Heather and Chris White.

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Ryegrass based on Australian R&D DAIRY FARMERS know only too well about the variance in quality and persistence of many common seed types, such as ryegrass. Renovating pasture can be a costly exercise so farmers need to be confident they’re getting what they paid for. Upper Murray Seeds is an Australian-owned and vertically integrated seed producer. Upper Murray Seeds senior agronomist Don Kirkpatrick said the company offers dairy farmers “exceptional” ryegrass options based on Australian research and development. “Our seeds are bred in Australia to suit Australian conditions,” Mr Kirkpatrick said. “All the varieties we produce at Upper Murray Seeds have been grown and harvested from a paddock that has been conventionally grazed by livestock throughout the year. “Prior to being locked up in spring, these paddocks are stocked, just as any farmer would do. “Our focus is on persistence and productivity to provide a pasture of superior quality for maximum livestock performance.” Matt Eddy, a bulk feed producer in the Latrobe Valley, sowed Awesome short term ryegrass in early May and grazed the pasture twice before locking it up for silage. His October-cut silage yielded 5000kg/ha dry matter and the subsequent hay yield was again close to 5000kg/ ha. “The very dense second cut is unbelievable. I’ve never had two cuts off a paddock here before.” Tel. (02) 6040 6464 or visit www.uppermurrayseeds.com.au

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DAIRY NEWS AUSTRALIA MARCH 2015

32 // PASTURE SEEDS

Solving the black soils puzzle FINDING THE right pas-

ture variety for difficult black soils was a breakthrough for Chris Blackberry at Glenormiston, north of Terang. The productivity of the 220ha dairy farm had been hampered by 80ha of heavy black soils, susceptible to waterlogging in winter and cracking in summer. That was until Mr Blackberry tried a new soft leaf fescue called Hummer, starting with just a third of a paddock

It was a fresh beginning for this paddock in July 2011, when Chris Blackberry sowed Hummer tall fescue.

four years ago. He was among a handful of farmers who grew trial quantities of Ste-

phen Pasture Seeds’ new summer active tall fescue prior to its release this season, to test its value in

a range of environments. Unlike many fescue varieties, Hummer has fine, soft, palatable leaves,

Happy grazing days at Glenormiston in an established paddock of Hummer last October.

making it suitable for dairy pastures as well as beef and sheep operations. Mr Blackberry now

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has 30ha converted to the pasture, sown with white clover, and intends to continue the program across all of his problem soils, generally on low lying areas of the farm. “It has completely changed the farm,” he said. “The land where the Hummer pastures are growing used to provide two to three months of grazing a year at best. “I couldn’t keep ryegrass growing over summer because the ground would crack and crickets and bugs would kill it. “In winter, it would be waterlogged, so the cows wouldn’t get on until October anyway. Then it would need to be resown.” In contrast, the perennial fescue pastures haven’t yet needed to be resown and have even held up super spreaders through June. “I wouldn’t have dreamed of spreading super on those paddocks in winter before,” he said. Hummer tall fescue tolerates waterlogging well, due to its deep roots, its ability to form a thatch and the MaxP endophyte. MaxP is a novel tall fescue endophyte that improves the ability of tall fescue pastures to handle pest attack and moisture stress. According to Mr Blackberry, turning those problem areas around has improved the overall productivity of the farm, which now boasts a healthy stocking rate of around two cows per hectare. “It has really got the land working better,” he said. “Being able to use those paddocks productively has improved feed stability year round and has helped to increase cow numbers from around 350 cows to 465.”

Glenormiston dairy farmer Chris Blackberry has used Hummer tall fescue to turn hardto-manage black soils into productive grazing paddocks.

He recommended dairy farmers struggling with black soils, or discounting them as non-productive back blocks, consider growing Hummer. “The cows graze on it well and the milk is the same,” he said. “The mix with white clover works, because Hummer doesn’t smother it out in the first year and they both establish well. After three months, you’ve got a real mass of feed.” Mr Blackberry tops the pasture regularly to keep it shorter and fresher after grazing. “Anyone driving around the farm now would probably assume those paddock were irrigated,” he said. “After the rain in January, the Hummer paddocks are now vibrant green compared with the ryegrass.” Along with the summer active lucerne, the Hummer paddocks are his main grazing areas for this time of year. “It’s come full circle from one of the toughest areas of the farm to manage to one of the easiest,” he said. Available from Stephen Pasture Seeds from this season, Hummer is a high yielding, soft leaf, tall fescue, ideal for providing summer growth.

DAIRY NEWS AUSTRALIA MARCH 2015

MACHINERY & PRODUCTS // 33

New mixer fixes the feed job TONY AND Elle Hayes

of Stanhope in the Murray Goulburn valley, not far from Shepparton, had operated an 18 cubic metre feed mixer for five years and towards the end of last year thought that it was time for a change. The Hayes arrived at this property eight years ago; bringing 250 of their own cows and another 150 came with the farm. The dairy encompasses 324ha and they lease another 200ha up the road for the heifers and as a silage block. They employ three fulltime workers and four casual milkers, and are now milking 500 on a 50 stand rotary; the herd is 60% Illawarra and 40% Holsteins. They run the Llandovery Illawarra stud. Since I’ve been writing these stories this is the

WORKING CLOTHES CHRIS DINGLE first dairy that I have visited that milks three times a day. “We started milking three times a day in September and we estimate that we are up 3 litres per cow per day on what we were with milking twice,” Mr Hayes said. “We are averaging 30 litres per cow per day. We have better cow health and less mastitis.” Mr Hayes purchased a 24 cubic metre NDE 2656 mixer from Eastern Spreaders at Kerang, doing

the deal with Stephen Freeman. “A mate up the road had an NDE mixer and loved it! So I looked them up at the Elmore Field Days last year. What got me in was that Steve was so genuine and helpful at the field days. I was pretty impressed. So we bought it from the Elmore site and Steve gave me a good trade-in on my old mixer. “This is a heavier build than our previous machine, We fill it three times a day and spend half an hour mixing, mainly grain and canola. We are fine tuning the mix, working up to 18% protein by adding canola that we buy in bulk,” Mr Hayes said. The machine uses carbide-inserted curved knives, which give a quick slicing action.

“It mixes up well, it is a stronger build and the hardened blade tips won’t wear out quickly. We changed them three times a year on the previous machine,” added Mr Hayes. NDE stands for New Direction Equipment and the machines are built in Sioux Falls, South Dakota. The 2656 Dual Mixer has a dual axle with eight LT235/75R-17.5 heavy duty tyres and spring type suspension. The tub capacity is actually 24.49 cubic metres, the two large augers operate at 1000 PTO rpm and NDE says that it takes a 97 kW (130hp) tractor to operate it. The Hayes run their machine with a 140hp New Holland T6070 and Mr Hayes says “it is just big TO PAGE 34

New mower-conditioner quick and efficient AN EXTENSIVE demonstration day conducted recently by Kuhn Farm Machinery on the outskirts of Melbourne heralded the Australian release of their latest trailed mower conditioners, the FC1060 series. The model demonstrated to a large audience of farmers and dealers was the FC 4060 TCD which has a working width of 4m and utilises Kuhn’s Optidisc cutter bar with its quick-release knife mounting system. Bruno Fetiveau, director of Kuhn Australia, said the new mowerconditioner was the culmination of constant development and improvement and reminded farmers that Kuhn invented the disc mower and is now a world leader in their development. The new Kuhn FC 4060 TCD is a centre-pull machine with nine cutting discs and pivoting steel fingers for faster mowing, wide swathing and efficient conditioning. Kuhn says it requires a tractor of just 94 PTO horsepower to operate it. Clean, fast mowing of either heavy grasses or delicate forage crops, combined with quick drydown from effective conditioning makes the machine more profitable for both contractors and farmers. The mowing unit is suspended by torsion bars on the new FC 1060 series. It follows the paddock contours and can be adjusted separately on both sides to keep

The new Fuhn FC 4060 TCD mower-conditioner is a centrepull machine with nine cutting discs and pivoting steel fingers.

dirt out of the forage. Ultra-large tyres reduce the ground pressure to protect the crop and prevent soil compaction. Cutting height and conditioning intensity are both done quickly and easily so that operators can set up the machine for all types of crop. Windrow widths for the FC 4060 TCD are adjustable from 1.10m to 2.70m. The machine’s heavy duty Gyrodine swivel hitch allows turns in excess of 90%, keeping the PTO driveline straight. This means enhanced reliability and safety with high manoeuvrability. The Optidisc cutter bar is a cutting unit which is characterised by the uneven distance between disc centres, providing increased crop ejection where the discs converge and a narrower distance between disc centres where the discs diverge to increase the recut area and thus the quality of cut. The sealed gearbox, has increased

resistance to wear, with a patented “Protectadrive” a shear point on the disc drive to minimise downtime. If the disc impacts a very solid obstacle, the shaft holding the disc can shear just above the bearing because of a carefully-dimensioned shear groove to protect the toothed gear wheels. Changeover can be accomplished in under 15 minutes. There are no oil changes necessary for the life of the cutter bar. The fast-fit knife mount system means that knives can be changed in a few minutes. The conditioner rotor’s drive shaft is also protected on its shaft extension by a shear bolt. Other models available in Australia within the new FC1060 mower/conditioner series are the FC 3160 (3.1m working width) and the FC 3560 (3.5m working width). Both these models are available with either central pull or side pull. Tel. (03) 9982 1490 or visit www.kuhn.com.au

Tony Hayes with a NDE 2656 mixer.

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Dairy News AUSTRALIA march 2015

34 // machinery & products

Yeah, but how fast does it go? john droppert

“How fast does it go?”

is not a question normally asked of, or by, tractor enthusiasts. Tractors are designed with a view to generating huge amounts of power and putting it to the ground; not sprinting

around to feel the breeze in one’s hair. The practical benefits of high speed tractors are usually limited to transport between jobs. As BBC TopGear presenter James May once said: “You can’t plough at 40 miles per hour”. Frankly, the entertainment value is limited too.

I’ve watched the YouTube clips where a couple of adrenaline-charged European cowboys run their Fendt vs John Deere hill climb races. It’s a little bit embarrassing, and alas, not all that gripping to watch. But each to their own, and at this point I should note that while YouTube

tractor races don’t tempt my download limit, the few genuine high speed tractors out there are actually pretty impressive machines. The quintessential marque these days is the JCB Fastrac series, which has been in production since 1991. Joining established

competitors such as the legendary MB-Trac and Unimog machines, the Fastrac combines high road speed (up to 80km/h) with a centre-mounted cab and ability to be fitted with a wide range of mounted equipment in addition to standard tractor applications. The Fastrac is an ideal

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machine for hauling dump trailers, which are a more cost effective means of bulk material transport than trucks (for tax reasons) in. In Australia, the vast majority are stretched versions used as fertiliser spreaders, with 4-6 tonne bins mounted. I drove two such machines in previous employment: unlike most tractors celebrated in this column, both Fastracs were incredibly comfortable machines to operate. Cab and front axle suspension are still optional for many tractors these days, but not the Fastrac. All models sport huge coil spring suspensions on the front axles and a hydropneumatic, selflevelling setup on the rear axles, apart from the newer, smaller 7000 series, which uses the hydropneumatic suspension all round. The central cab placement not only provides further ride comfort, but the satisfaction of watching the front axle jump around on the corrugations of a poorly maintained farm track, without feeling the jolts yourself. It’s almost too luxurious. The 3185 and 3220 models I drove come

loaded with some of the best engines from Cummins, and 54 forward/18 reverse synchromesh transmissions to get up to speed. Large external disc brakes on each wheel provide a reassuring amount of stopping power, especially when coupled with an ABS system. Fast, safe and comfortable to drive. On the downside, a hybrid machine always brings out the doubters, and the performance of such machines in heavy paddock work is always being questioned. I’m also told they can be expensive to maintain, and without the four wheel steering fitted, the stretched spreader versions have the turning circle of a tram. As the Fastrac series approaches its 25th year with more models than ever on offer, JCB must be doing something right. Most other manufacturers are just now starting to push the 65km/h mark, which not only suggests that the Fastrac and its predecessors were ahead of their time, but also that there’s going to be a lot more of those inane tractor racing YouTube videos to come.

NDE mixer built tough from page 33

Get to your local John Deere dealer now and take advantage of limited time financing as low as 0% p.a. on selected new John Deere hay equipment. Choose from a variety of mower conditioners to make quick work of your hay cutting chores, all designed with a low-profile cutterbar for excellent cutting and conditioning performance. Then select a new round baler from our extensive lineup of fixed-chamber to variable-chamber models, or go with a small square baler. All offer a range of options to match your operation. Best of all, you’ll save plenty when you take advantage of financing as low as 0% p.a. So get ready for hay season with new John Deere hay equipment and wrap up the savings. See your local John Deere dealer today.

*Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Valid on new John Deere mower conditioners, round & small square balers and windrowers (W110 & W150 only). Offer is based on 25% deposit, GST back and 3 year term. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 30/04/2015. Available at participating dealerships only. Other terms and rates are available. Images used are for illustration purposes only and may show features or attachments not available from all dealers.

JohnDeere.com.au/HayEarlyOrder

enough – you wouldn’t want it any smaller”. The cows are fed 5kg/ day in the bail and 4kg/ day from the mixer wagon. To fill the troughs they mix three loads each day. “We just fill the cows till they’re full. That comes out to 22-24 kg/cow/day DM.” They are feeding sorghum silage large square bales at the moment and generally grow all their own silage. They have bought in some oats and vetch hay. “We have 130 acres of maize and more lucerne is about to go in, up to 100 acres. We have 1000 tonne of ryegrass and shaftal silage.” A Case MX110 with FEL is used to load the mixer. All three workers have

a go at operating the new feed mixer and all agree it does a great job. The machine hasn’t had a service yet and Mr Hayes greases it weekly himself. They are currently building a new concrete feed pad. “We are aiming at doing a lot of concreting”, said Mr Hayes, “we’ll mix on the slab in winter and we won’t go off the concrete.” Last winter Mr Hayes says they lost a lot of money walking the cows through the mud to get to the feed paddocks 3.2km away; “It took a lot of energy out of the cows. The concrete pad will fix that.” They also have a Jeantil EVR 12-8 manure spreader to spread onto the maize as they scrape the manure off the feed pad.

Reduce your fert and application costs talk to us today to work out a per hectare cost, based on your farm, with Tow and Fert.

“ I apply fertiliser at 10 bucks a hectare* with my Tow and Fert ”

Multi 1200

Multi 1000

• Tow with Ute or Tractor • 1000 Litres • Self Powered

Multi 4000

• Tow with Tractor • 4000 Litres • PTO/Hydraulic Operated

• 3 Point Linkage • 1200 Litres • Hydraulic Operated

Payback calculation and mix optimisation software

Owning a Tow and Fert can reduce your application costs AND your largest expenditure bill – fertiliser! If you are applying nitrogen, then putting normal granular urea into the Tow and Fert and dissolving it into a solution means you can use less nitrogen per hectare and get the same dray matter response. The Tow and Fert is a multi-role machine, meaning it can be used to apply a mixture of products, all in one pass. Using its patented recirculation system, vicious in-tank handle many types of fertilisers and products, including; RPR, Lime, DAP, Urea, the Tow and Fert is NOT like any other sprayer. Give one of the friendly team a call to get a per hectare cost of application for your costs, labour costs and even maintenance costs. The only

*Based on a 300HA farm, fertiliser application 6x a year

TOW AND FARM by metalform

1300 630 279 WWW.TOWANDFARM.COM.AU

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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.