Dairy News Australia September 2015

Say goodbye to $6/kgMS PAGE 8

UNITED FRONT Queensland sector gathers PAGE 6-7

SEPTEMBER, 2015 ISSUE 62 // www.dairynewsaustralia.com.au

SHAKY GROUND Could 10 years of work on the China Free Trade Agreement be about to unravel? PAGE 9

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NEWS // 3

Brian and Michele Lawrence’s Jersey-style crossbred herd in Meander, Tasmania, has grown from 460 in 2007 to 1000 head today.

Read about their hard-earned success on p.18.

Kim McKean’s 50 year career in dairy has been officially recognised. PG.10

Set limits on foreign investment says Vic MP Gippsland farmer Marian Macdonald says farmers need more support to tackle climate change. PG.15

Meet Australia’s new top bull.

PG.21

NEWS .......................................................3-11 AROUND THE REGIONS ..............12-13 OPINION .............................................. 14-15 MARKETS ........................................... 16-17 MANAGEMENT ................................18-19 ABVs .................................................... 20-25 ANIMAL HEALTH .......................... 26-28 SPRING PASTURE ........................ 29-31 MACHINERY & PRODUCTS ...................................... 32-34

RICK BAYNE

A VICTORIAN MP wants farm land to be “treated like a national treasure” and protected from foreign investment amid plans for Chinese investors to buy up to 70 dairy farms.

Upper House MP for Western Victoria, James Purcell, from the ‘Vote 1 Local Jobs’ party, said Linear Capital’s proposed purchase of up to 70 farms in the region would be a “disaster if they succeed or a total disaster if they fail”.

However, the state’s major political parties have backed foreign investment as an important part of developing the state’s food industries.

Aerem, a new dairy

company in which Linear Capital is an investor, is looking to purchase 50-70 farms in western Victoria and south east South Australia.

A Linear Capital spokesperson said the project represents an opportunity to secure long term jobs and economic benefits for the region.

“We are continuing to talk directly to farmers and investors to progress it,” the spokesperson said.

“The process has taken longer than the company would have liked but we have strong support from farmers and strong interest from investors. We’re now working to finalise those investment arrangements,” she said.

But Mr Purcell, who has raised the issue in state

parliament, says there is widespread concern in the community about foreign ownership and “sketchy” details about who is backing the investment plan.

“I think there are two options with large foreign ownership – one it will work and it will be a disaster because we lose the capacity, the jobs and the structure of the agriculture industry.

“The second one is that it doesn’t work and they will put all of these farms on the market in one whack. If it works it’s bad; if it doesn’t work it’s worse.”

Mr Purcell said there was a great deal of uncertainty in the region about the plan but farmers expected to have offers in the next month and many

were keen to sell.

“The majority of them are still expecting it to come off,” Mr Purcell said.

“I don’t know whether its hope or real expectation.”

Mr Purcell said farmers were being tempted by the offer of good money.

He said both state and federal governments could play a role in stopping foreign investment in farming land.

“I think you need to start with simple ways to stop it happening, such as finding out how much is currently owned,” he said.

Mr Purcell said the Foreign Investment Review Board should review the amounts that can be purchased and set limits.

“Both state and federal governments could act. The state can restrict

it by doing such things as charging additional stamp duty.”

Although his main concern centres on the Linear proposal, Mr Purcell is worried in general about foreign investment.

“If you do enough ‘oneoff’ sales they all build up. In my mind, you really just need to stop it altogether.”

However, he conceded farmers wanting to leave the industry might have no other option but to consider foreign buyers.

“The issue at the moment is where do farmers sell their farms if they don’t sell it overseas? We haven’t got a structure where the banks know how farms work. We need a rural bank to lend to TO PAGE 4

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

4 // NEWS

Set limits on foreign investment FROM PAGE 3

people to make a lifetime commitment to the land.”

Victorian Minister for Agriculture and ALP Upper House Member for Western Victoria, Jaala Pulford, said foreign investment played an important role in supporting the state’s food and fibre industry.

“With the growing middle class in Asia and increased demand for our high quality, fresh, clean, produce there is an enormous opportunity for growers and producers to tap into these new and emerging markets,” Ms Pulford said.

“Food and fibre has been identified by the Andrews Labor Government as one of six key sectors for future economic growth, and as part of this we need to support the sector to develop new and innovative farming practice,” she said.

“Foreign investment plays an important role in supporting our food and fibre sector here in Victoria, however it’s also important to ensure that we get the balance right between supporting and growing our vital agricultural sector and land users, and also providing the right opportunities for growth, planning and housing development in our regions.

“We recognise that as our cities and towns expand, and populations continue to grow, land use will play a significant role in this ongoing discussion.”

Ms Pulford did not buy into the Linear Capital proposal.

“Any negotiations currently occurring between local dairy farmers and Linear Capital are a matter for the individual farmers and Linear Capital,” she said.

Ms Pulford said concerned farmers can seek free financial advice from the Rural Financial Counselling Service.

Victoria’s opposition agriculture spokesman, Peter Walsh, said joint venture investments should be explored.

“The increase in demand for dairy products out of Asia, particularly China, bodes well for the future of the industry and if investment in joint ventures in Australia leads to greater market access and increased returns for farmers, they are opportunities that should be explored,” he said.

Victoria open for investment but not at any cost: VFF VICTORIA’S FARMING leaders

are welcoming foreign investment in dairy properties but have sounded a word of caution about plans for a major sell-off.

Amid controversy about a proposed big buy-up of land in western Victoria and a disputed planning application in Gippsland, the leaders say foreign investment is needed for the industry to grow and compete on the international market.

Victorian Farmers Federation president Peter Tuohey and United Dairyfarmers of Victoria president Adam Jenkins both say that foreign investment is good, especially if Australian investors are reluctant to commit to dairy.

However, Mr Tuohey has reservations about plans for one Chinese-based investment company to buy 50-70 dairy farms in Western Victoria, and Mr Jenkins said a proper framework was needed to make sure it is the right investment for the right situation.

Mr Jenkins also lashed out at the “hysteria” around foreign investment, saying it misrepresented an industry that was built on decades of international investment.

Mr Tuohey said agriculture needed to look at foreign input “because we’re not getting the investment from Australian investors”.

“That’s where farming is struggling,” he said. “We need the extra capital to get more processing and extra investment in farms.”

Mr Tuohey said he was uncertain about how the proposed purchase of up to 70 farms by Linear Capital would work.

“When you look at the Western

RICK BAYNE District, I’m not sure how the model will work because there are a lot of individual farms. I did meet with one person involved and it seemed pretty good, but it seems very complicated.”

Mr Tuohey said he had some concerns about so many farms being sold at once. “I understand some of that money is supposed to be 50% Australian and the rest foreign capital, but I don’t know if that makes it any better.”

He said the deeper issue that should be considered was why so many farmers were looking to sell.

“The question is if the money is that good that they’ve all decided to sell, or have they all just had enough?

If you’ve had enough and want to retire, you want to get the best offer.

Do those farmers say no to foreign investment and continue on?”

Mr Tuohey said he understood most farmers selling to the foreign investor would stay on as farm managers.

“That means they’ve still got involvement and their families aren’t

going to go anywhere. The important environmental, community and thing is that there is going to be some farming standards and protocols,” processing on the back of it, meaning he said.

Mr Jenkins said he doubted the there would be more money spent quoted 70 sales would eventuate. locally.

“I doubt 70 farms will come off. I “The extra capital will come into think the dad and mum 250-cow to the area and help improve it.”

Mr Tuohey said the register of 350-cow farm is still the bread and foreign investors would help to keep butter of our industry. We’ve seen track of sales “so we can manage it in time and time again that that’s the the future to make sure it doesn’t get model that succeeds.”

The UDV president said: “From out of hand or become something we a UDV point of view, who are we to don’t really want”. stop someone retiring Mr Jenkins or moving on? If the said the UDV “We welcome framework is in place welcomes foreign federally, then we investment, should not have a regardless of investment but problem.” whether it is it has to be the Mr Jenkins added foreign or local. right framework he understood that “Our industry to make sure if the farms sold has been built they would mostly on investment it’s a win for the be run by Australian from outside. community, the managers.

Currently a lot of farm and the “We welcome our processors investor.” foreign investment are foreign owned.

– Adam Jenkins, but it has to be the We welcome the investment United Dairyfarmers right framework to make sure it’s a win because we need Victoria for the community, the capital in our industry to make sure we do compete the farm and the investor,” he said.

Mr Jenkins said the UDV would on a global scale.

“The dairy industry relies work with industry and government on international trade and so to make sure “the right signposts are when we strike multilateral and in place”.

“We need a framework in bilateral agreements, and free trade agreements, with our trading partners place so investors know the local we understand foreign investment is requirements. We’ve got to make sure processors are on board, Dairy Food part of the equation.”

Safety Victoria, Dairy Australia and But he too had added riders.

“It needs to be the right investment the State Government can lead them for the right situation and we need to through the types of investment and make sure the framework for that how to welcome their investment investment ticks all the boxes from rather than stifle it.”

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

NEWS // 5

Local knowledge vital to Chinese heifer export plan A DAIRY agistment farm in south-west

Victoria has been purchased by a major Chinese investment group to raise heifers for the Chinese market.

Tianjin Bright and MengDe Dairy Group, which operates one of China’s biggest dairy networks, has bought the 365ha farm at Branxholme south of Hamilton and initially hopes to run about 700 heifers on the farm and build numbers over time.

Lets Go (Australia) sales and marketing director Jason Hellyer, who helped to broker the deal, said it was purely a grazing farm.

“It has no dairy infrastructure and was set up as an agistment property, which was perfect for their needs,” Mr Hellyer said. “They don’t have any intention of establishing a dairy facility, their long-term plan is export and having access to quality animals.”

The owners are calling on Australian expertise to manage the business.

Local farmers James and Nicole McCarroll have been employed as farm managers and an Australian-based farm management team is supervising and providing background advice.

“They were very keen to engage Australians wherever possible,” Mr Hellyer said.

“They are dairy farmers themselves but they realise they don’t understand Australian conditions and that it’s

important to heed local advice.”

Mr Hellyer said the investment was good for the local Victorian economy.

“I don’t see any fear factor in it,” he said. “When we have these opportunities to work with a foreign country in terms of export opportunity or economic growth, I think we should look seriously at it.

“China is 55 times bigger than Australia. There’s massive scope in the market but it’s a competitive landscape and we’d be kidding ourselves to think that the Chinese are just gravitating to Australia. There are a lot of other countries ahead of us. We’re just one of many countries competing in this space.”

The investors looked at about six properties west of Melbourne but didn’t want to buy a farm with expensive dairy infrastructure.

“This was a great location close to Portland, gets reasonably good rainfall and it had no dairy infrastructure.

They’re not about buying something that’s got money tied up in infrastructure they’re not going to use.”

The heifers will be exported from the Port of Portland.

This is the group’s first foray into the Australian market and Mr Hellyer said they wanted the ability to control access to quality animals.

“Historically the quality of animal you get in the import market into China

Jason Hellyer (left) with James and Nicole McCarroll who are the farm managers employed by Tainjin Bright and MengDe Dairy Group to run the Duncraig farm.

is not the best so they are investing in doing their own thing with a view to securing a better quality animal,” Mr Hellyer said.

“I don’t think it’s going to be difficult for them to get into the market.

They will be working with capable Australian people who will provide a reliable product. They’ve done their due

diligence and have been planning it for two or three years.”

Mr Hellyer said the investment group hoped to buy more grazing properties.

“They have long term plans to buy more, provided this exercise is viable and profitable and they can establish a supply chain into the Chinese market,” he said.

“Once they’ve completed the export process a few times they will assess how it has gone and if it’s got upside the indications are they will look to expand the operation, whether it be direct purchases or through joint ventures with local producers.”

It is understood the farm was sold for about $2 million.

YoYou dairy expansion a no go for now RICK BAYNE

A CATTLE barn and milk processing plant proposed for Kernot in eastern Victoria has been rejected as an over-intensification of the land.

In refusing YoYou Dairy’s proposal, the Bass Coast Council said the development did not sit comfortably within the natural landscape of the area.

The council stressed its decision had nothing to do with foreign ownership or animal welfare issues.

However, United Dairyfarmers of Victoria president Adam Jenkins said the “hysteria” surrounding foreign investment had resulted in “inconsistency of shire planning that is not helpful to an industry that needs to grow”.

YoYou Dairy is an Australian subsidiary of China based Ningbo Dairy Group and has bought three

properties in Gippsland, including two at Kernot, in the past few years. It plans to export fresh milk bottled on farm to Chinese and Australian markets.

The Kernot application sought to double the herd size and install a free stall barn and a bottling plant.

Bass Coast Mayor Cr Kimberley Brown said the council considered the size of the proposal and believed it was incompatible with its surrounds and would negatively impact on the Kernot townnship.

The council also felt that the application, which requested 1000 head of cattle be kept on the land, was an over-intensification.

However, she stressed that issues of foreign ownership and animal welfare were not factors in council’s decision.

“Council considered the proposal would adversely impact the local community,” Cr

Brown said.

“Foreign ownership is governed by the Federal Government, and animal welfare legislation is governed by the Victorian Government.”

Cr Brown said the application was considered to have not demonstrated that the proposed cattle numbers would fall within the definition of extensive animal farming; where the animals’ feed must mainly be grown on the land.

The council also believed the application failed to address the management of stormwater, with particular concern raised about effluent run off impacting the Bass River system. The location of manure and compost storage areas was considered to be too near to residential properties which surround the site.

Ningbo Dairy Group vice-president Harry Wang has previously said

the group had purchased three farms and was looking to invest in more.

He said Australian dairy had a good name that appealed to Chinese consumers and the company wanted to export

heifers and hay to increase quality of milk in China.

Mr Wang said the company had $10 million ready to invest.

He could not be contacted for response to the council’s decision. How-

ever, it is understood an appeal to VCAT against the council decision will be considered.

The council’s general manager sustainable development and growth, Allison Jones, said

there had been no indication from the applicant.

“They’ve got 60 days to ask VCAT to review the decision,” she said.

The proposal drew significant community anger, TO PAGE 11

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

6 // QUEENSLAND DAIRY CONFERENCE

Asia is there for the taking but it’s not easy

Lion Dairy & Drinks managing director Peter West with Norco deputy chair Tony Wilson, QDO’s Wesley Judd, and Parmalat national manager, farm sustainability and communication, Steve Oldridge.

Dairy products squeezed LION DAIRY and Drinks managing director Peter West had a sobering message for dairy farmers about the effects of Woolworths and Coles house brands on the price of milk and dairy products.

“The prices I get today will be lower next year, they will be the lower year after, and the year after.

I can guarantee you there will be five years of price deflation when it comes to the price that we go into the marketplace.”

He said a strategy of pursuing growth opportunities and cutting costs was driving Lion’s response, highlighting that consumer trends towards full fat milk, butter, coffee and natural products was great for the sector.

“DARE iced coffee now outsells Coca-Cola in convenience stores,” he said. “This is a market in a period of enormous change and transition

iDAIRY

(and) is very much the future of a more vibrant dairy industy.”

He said the need for authenticity in products – supported by the government’s new country of origin labelling laws –will also bode well for Australian dairy, but urged a word of caution about China as the saviour of industry.

“The opportunities are there but it will be volatile and it will be harder than everybody thinks. This market is hugely sophisticated and competitive.”

The company has also launched a new ‘Milk Matters’ campaign to remind local consumers of the effort that goes into producing a litre of milk.

“We want people to re-think all of the work that went into that product, and we do want people to have an emotional reaction to the things that they take for granted -

new measures to support farmers saving on production costs including bulk energy and feed programs, as well as benchmarking tools and increased communication with farmers. He said the company was looking to ensure their suppliers had sustainable profit margins.

“Because there’s no greater advocate for our company than our suppliers,” he said.

There was a mixed reaction to the presentations from farmers, many of whom are frustrated the key role $1-a-litre milk is playing in devaluing the entire market, yet there seemed to be nothing anyone can do about.

Ninango farmer Bevin Black offered this advice to processors in relation to supermarkets: “I think it’s time the fellas started to kick their (supermarkets’) backsides, not lick their backsides.”

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of your hard work, everything that is required for this product that in many cases can be bought more cheaply than water – and think, is that right?”

The company has also cut budgets and staff, and offloaded its cheese businesses, in an “unrelenting” effort to reduce costs.

Mr West said a “strong focus on mutuality” – supporting farmers to be viable and successful – was also a focus of their approach and the company was looking at ways to help their suppliers reduce costs, such as bulk purchasing for energy.

“We all want to see the notion of a fair price. There will always be a tension of about how much that is, but our aim will always be to pay the maximum that we can afford,” he said.

Parmalat’s Steve Oldridge also highlighted his company’s

ASIA MAY not be far from Queensland’s doorstep but the challenges of catering to the export market are great.

Norco deputy chair Tony Wilson said the road to China had not been easy for the company.

“The tyranny of distance is still a challenge for Australia, however the size and scope and proximity to Asia cannot be ignored,” Mr Wilson said.

In the past 12 months, Norco has managed to set up systems so that fresh milk is sent to China within seven days of production. Work was done to achieve faster regulatory and logistics access, as well as a direct selling trialled online.

The cooperative also developed a smart phone app that allows customers to trace information on when it was packaged. It will also include information about where the product was made.

“Slowly but surely the potential in China is being realised,” Mr Wilson said.

Norco’s sales in China had growth ten-fold in the past year “and there was more to come”, he said. The Norco brand is now available in many tier-one cities in China.

Bruce Warren, head of agribusiness company Japfa Comfeed, told the audience the opportunities in Indonesia are immense and that Australian producers needed to be “bold”.

“Unless we jump in boots and all now, we’re going to be left behind,” he said.

Mr Warren, whose Greenfields milk is produced in Indonesia, said getting to know the culture of each Asian country was critical to success. His approach was to “blend and bend”.

“We need to be creative but you really need to understand your market.”

He likened the Australian dairy sector’s business with supermarkets to “an abusive relationship” that the industry should walk away from and look elsewhere. “Why put up with $1-a-litre milk when you can go and get a niche market in Asia,” he said. “Australia will never feed all of Asia, but we can feed the rich ones.”

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

QUEENSLAND DAIRY CONFERENCE // 7

Farmers hanging on and looking forward MADELEINE BRENNAN

THE QUEENSLAND

dairy industry is on the cusp of renewed growth driven by the opportunities of an increasingly affluent Asia - or it is hanging on by a thread as increased production costs and tighter margin force more farmers to leave the local industry.

It’s this range of views that were canvassed at

this year’s Queensland Dairyfarmers Organisation (QDO) conference jointly held with the Queensland branch of the Dairy Industry Association of Australia (DIAA).

The conference theme ‘Dairy Without Borders’ highlighted the breaking down of national and regional borders that were opening international markets as well as exposing the sector to increased competition from ‘down south’.

QDO president Brian Tessmann said the industry needed to think longer term than it had in the past, but this was undermined by the immediate challenges of increased inputs cost and low farmgate prices that threatened their short to medium term profitability.

He called on state and federal government to back the local industry.

“Governments need to decide: do they really want the jobs that the industry

provides now, and the industry can provide in the future, which is a real promise.

“Are they going to back the dairy industry or are they going to back other players in the economy, against us; are they going to back the supermarkets, or union self-interest?

“Are they going to back the grain industry, or the beef industry? Are they going to back them, or are they going to help the

Opportunities both local and regional for Qld dairy MINISTER FOR Agriculture and Fisheries Bill Byrne said the Palaszczuk Government is focused on supporting the state’s farmers explore new markets in Asia.

Speaking at the QDO-DIAA joint conference, he said the government, through Trade Investment Queensland and the Department of Agriculture and Fisheries, was working to develop detailed product reports in the wake of recent free trade agreements in Japan, Korea and China.

“The role for government is to try and smooth the path for industry to explore those opportunities,” Mr Byrne said.

He said while beef was the focus of his recent trips to China and Indonesia, the opportunities for dairy and horticulture were “selfevident”.

He added the government

was establishing a rural jobs and skills alliance to develop skills and address labour market challenges.

Dairy Australia analyst Norman Repacholi, also speaking at conference, agreed that building capability was critical if the Queensland dairy industry is to capture export opportunities.

He recognised the challenges in the market at the moment, and said the Dairy Australia’s Northern Dairy Industry Strategy - which was prepared with representatives across the value chain - was critical to outlining a pathway for the sector which had been under the pump since deregulation.

However, Mr Repacholi was keen to highlight the opportunity and prosperity that remained in the state.

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anywhere else in Australia,” he said.

He said opportunities for growth existed both domestically and in the region, but that each country needed to be targeted separately according to their unique requirements and culture.

He also added that while producing for export markets was important, volatility meant producers had to factor in risk.

“You’ve got to consider, how much return can you make if the price you are being paid is less than the domestic market?”

He predicted growth in Australia’s milk production would drop off next year in response to global oversupply but still grow by about 1.5%.

Queensland production dropped 6% last year, and has dropped 2% to last year, according to latest figures.

Dairy News Australia asked some of the delegates at this year’s conference: What is the biggest challenge facing Queensland dairy farmers?

“There’s not really one burning issue. Perhaps it’s our relevance and size.

We’re diminishing and so too is the economy of scale.” – Andrew Burnett, Gympie

dairy industry battle the challenges we’ve got?” Mr Tessmann said.

He said at a federal level, the recommendations of the Harper Review and the China FTA needed to be implemented. “We need to reduce our costs. We can be competitive at a local and an international level – but we need to have the costs structure addressed.”

As an example, he said energy policy was failing farmers, drawing comparisons with the electricity situation in California, where renewables had delivered cheap energy.

“A monthly bill for a couple with air conditioning amounts to $14 a month. This low electricity is what we are competing against.”

DIAA Queensland president Allan Box said Queensland was “lucky” it was relatively isolated from the turmoil of the global dairy auctions “but we’re kidding ourselves if we don’t think we are going to be affected by low commodity prices in the long run.”

“The rising costs it takes to keep farming, electricity, the cost of grain. $1 a litre milk is killing us. It’s an unfair market.” - Lisa Rozynski, Imbil

“Accessing services.

Because we’re spread out more and more, there’s not enough local suppliers – mechanics, machinery agents, silage contractors.

They are either not there or you have to wait forever.” – Mal Lanham, Conondale “The cost-price ratio has changed. Queensland is the only state doing less than 1 million litres per farm and this reflects what the current best option is.

And we are the only crazy people milking ice-age animals in the tropics.” Peter Watson, Conondale

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

8 // NEWS

New warning to farmers: don’t expect to get $6/kgMS RICK BAYNE

AUSTRALIAN DAIRY

farmer hopes of achieving predicted price step-ups look like being hit for six.

The early predictions of a $6/kgMS or a slightly better final price are looking shaky, with processors and industry experts now expecting the opening price of $5.60/kgMS to be closer to the mark.

Australia’s major dairy processors have had their profits sliced and global markets aren’t recovering as quickly as expected, but a falling Australian dollar

and strong competition should protect farmers from potential price cuts.

The biggest processor, Murray Goulburn (MG), says it is confident that a global supply response is starting to emerge as a result of the low dairy commodity price environment.

MG had opened at the trend-setting $5.60/kgMS and predicted an end-ofyear price of $6.05/kgMS. Fonterra Australia advised its farmer suppliers late last month that it has placed its farmgate price and forecast closing price range for season

2015/16 under review, with managing director Judith Swales saying the outlook remains “very tough”.

Despite this, a more favourable exchange rate and initiatives to mitigate the impact of lower commodity prices has led MG to maintain $6.05/ kgMS can be achieved if dairy commodity prices strengthen.

However, they concede this remains subject to certain assumptions including strengthening of commodity prices, foreign exchange and other risk factors. If these factors do not materialise, MG says its price

is more likely to be in the range of $5.60 - $5.90/ kgMS. Dairy Australia industry analyst John Droppert said it was clear Australian processors were questioning what they can afford to pay and whether their forecasts are still reasonable.

But while some have raised the potential of a step down, recent market movements presented conflicting signals.

“A step down has been canvassed but that’s an extreme measure that’s only happened twice before, the last being

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it will turn in the next 12 futures pricing indicates during the global finanmonths but it’s still a few the next one will go up as cial crisis. Things would months away which is have to stay bad for longer well. problematic for Austra“We’re still seeing a lot for that to happen, though of reasons for prices to stay lian exporters because it given current milk price remains a very weak comweak: we’ve still got overforecasts assume a recovsupply internationally and modity market through the ery in commodity prices, key production and it’s not outside the selling season.” realms of possibility,” “It’s a very Mr Harvey said he said. challenging factors influencMr Droppert said market at the ing the slow recovsignals were also moment and a lot ery included strong mixed between proof dairy companies supply in Europe, a cessors, with some continuing ban in “more bullish” in internationally Russia and declining predictions of slight are saying their Chinese import volincreases compared forecasts have been umes. to others who raised a bit optimistic.

His advice to farmthe possibility of ers is to prepare for a reducing the opening At least our farmers $5.60 to $5.90/kgMS price. can be prepared.” final price.

He added that the – John Droppert, “At $5.60 farmers early signals would are only marginally help farmer planning. Dairy Australia. profitable but it could “It’s good to be demand is fairly lacklustre, be much worse given the having the conversation global market,” he added. early. In the GFC, the step- yet prices on global dairy “Commodity prices are down came out of the blue trade are going through the for farmers and they didn’t roof. There’s a real conflict as low as they’ve been in 12 years. It’s caused signifthere. At some point they see it coming. icant stress in New Zeahave to converge.

“It’s a very challenging land; fortunately we’ve had “It is a murky picture market at the moment and a weaker dollar and stratbut we keep coming back a lot of dairy companies to this supply and demand egies by the exporters to internationally are saying their forecasts have been a issue and saying it’s a good reverse some of that down cycle.” idea to be prepared.” bit optimistic. At least our Mr Harvey said compeRabobank International farmers can be prepared.” tition among processors dairy and farm inputs Mr Droppert said Auswas leading to aggressive senior analyst, Michael tralia’s extra value-adding pricing “which is good for Harvey, said the market capacity, strong domestic farmers but problematic market and weak currency looked to have “bottomed for processors because out” but he was cautious were protecting the price. they are paying a much about the recovery time.

He added that sentihigher price for some of “We’re still cautious ment was a wildcard on the about expecting a recovery the milk and selling into market. “The last global markets that don’t justify in the next six months,” dairy trade price went Mr Harvey said. “We think the price”. through the roof and the

Dairy NewS AUSTRALIA september 2015

news // 9

Union claims threaten China deal madeleine brennan

AUSTRALIA’S agriculture leaders are

increasing the pressure on Canberra to officially approve the China-Australia Free Trade Agreement (ChAFTA) before the end of 2015, amid an escalating political stoush about the potential impacts of the deal on Australian workers, spearheaded by the union movement.

The multi-billion dollar deal, which took 10 years to negotiate, was ratified in June but requires a formal process of endorsement by the Joint Standing Committee on Treaties (JSCOT), due around October 19.

A second inquiry by the Senate Foreign Affairs, Defence and Trade References Committee will also deliver an assessment of the deal within one month of the JSCOT. Labor MPs, including trade spokeswoman and leader of the opposi-

tion in the senate Penny Wong and shadow agriculture and rural affairs minister Joel Fitzgibbon, have recently called on the government to “fix the agreement” by ensuring temporary migration provisions did not put local jobs at risk.

Senator Wong told Adelaide radio: “We know, for example ... that the (current) testing that is making sure the job is offered first to an Australian who can do it, is removed in relation, for example, to people who have trade qualifications.

Now that is a problem.”

The potential for concessions to be granted so that temporary workers do not have to comply with all Australian laws and regulations, including rates of pay and workplace safety, is also causing concern for the labour movement.

Senator Wong told the ABC that Andrew Robb had “brought home an agreement that presents risks that we have to find a

way through”.

The National Farmers Federation (NFF) has joined the chorus of voices - including the Australian Dairy Industry Council, the Minerals Council and the Australian Chamber of Commerce and Industry - urging politicians to endorse the agreement before it undermined con-

fidence and cost jobs.

NFF chief executive Simon Talbot said the FTA agreement was “an amazing milestone” for Australia, worth $9 billion in farm-gate returns across the country, and “must be ratified before the end of the year”.

Australian Dairy Industry Council (ADIC) chair

Noel Campbell said implementation this year would mean the elimination of tariffs on Australian dairy products to China worth about $60 million.

He said the ADIC expects about 600-700 jobs would be created within the first year of ratification, with flow-on effects benefitting rural

and regional communities.

Minister for Trade and Investment Andrew Robb said it “beggars belief certain union officials would be leading a campaign to white-ant these kinds of opportunities” and called on Opposition Leader Bill Shorten to “stop doing the unions’ bidding and start putting Australia first”.

Mr Robb said if Labor seeks to obstruct this deal, China would walk away and pursue other opportunities with competitors in places like South America.

“This would be a dreadful outcome for our economy and Bill Shorten would be solely responsible,” Mr Robb said.

Farmers using a DeLaval robotic milking system spend 72%* less time on milking tasks

Prime Minister Tony Abbott and Minister for Trade and Investment Andrew Robb signing the free trade agreement with Chinese President Xi and Minister for Commerce Gao Hucheng.

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Before ChAFTA’s entry into force, both Australia and China must complete their domestic treaty-making processes.

The Joint Standing Committee on Treaties (JSCOT) is conducting a public inquiry into ChAFTA and will table its report in Parliament, expected in the week beginning October 19.

The Senate References Committee on Foreign Affairs, Defence and Trade will also report within one month of JSCOT. The same process was followed for the Korea agreement.

The primary function of these committees is to determine whether the treaty (in this case the ChAFTA) is, on balance, in the national interest. The recommendations of the committees are non-binding on the government and there is no scope for changes to the text within the negotiated agreement. A change in the wording of the agreement would involve renewed negotiation, which China may or may not agree to.

After the JSCOT report is tabled, Parliament would enact amendments to relevant legislation. These amendments relate to changes to the legislation including Customs Tariff Act 1995 and the Customs Act 1901.

Talk to your local dealer about putting the Plus+ in your farm.

Call 1800 817 199 or visit delaval.com.au *From the 2005 report “Working Time Studies in Conventional and AMS Milking Systems” from the JTI - Swedish Institute of Agricultural and Environmental Engineering.

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

10 // NEWS

From rags to robots: 50 years of service to dairy MADELEINE BRENNAN

FIFTY YEARS is a long time to work in one industry, and long enough time to witness a fair amount of change.

That’s certainly been the case for Kim McKean, manager of the University of Sydney’s dairy operation at Camden, who recently received the Dairy Science Award from the Dairy Research Foundation in recognition of his service to the industry.

He started as an animal attendant in 1966 and over the decades has trained thousands of veterinary and animal science students in practical animal

SERVE U

husbandry, as well as provided on-the-ground support for more than 100 masters and PhD students.

He is currently helping to oversee the implementation of the university’s Corstorphine farm robotic rotary dairy.

“When I started we were milking in a little six bail walk-through dairy, putting the cups on the cows and washing the cows with an old cloth,” he said.

“I never thought I’d see robots milking the bloody things but here we are, it’s amazing.”

The university campus has five farms over 350ha with 360-380 cows milked.

In August last year, the farm transitioned from a

40-a-side double-up herringbone system to the automatic milking system developed by the university in partnership with Swedish company DeLaval, the NSW Department of Primary Industries and Dairy Australia.

The robotic rotary has an internal, rotary herringbone platform, with cows facing outwards and the robots housed in the centre.

The system performs the tasks of teat-washing and drying; applying the milking cups; cup removal; teat disinfection and cup flushing. It also monitors milk yield and quality.

Commercial versions have a capacity of 90 cows per hour depending on

P

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the number of robots installed and the day to day operational procedure applied. The throughput potential of the dairy is 1500-1600 milkings per day meaning that the equipment could milk up to 800 cows twice a day.

Mr McKean said it had been a steep learning curve since they first started using the system in August. “I’m not particularly computer literate, although I am now apparently,” he laughed.

“It’s been a pretty challenging 12 months, but we’ve got it going and it’s working pretty well at the moment.”

He said the cows had settled into the new way of milking within a couple of days but they took longer to adjust to the voluntary cow traffic.

“I’ve always known animals are not stupid but this has reinforced just how smart they are.

It only takes a couple of days for them to work out the new system. And from an animal welfare and cow comfort point of view the system is fantastic, because the cows move to the milking system voluntarily.”

The cows’ movements and eating patterns are monitored and tracked, and they are guided through designated gated areas to the milking area, knowing there is more food once they are milked.

“They love it,” he said.

“There’s no pressure on the cows, there’s no one yelling at them, they are

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not being jammed up in yards with lots of other cows. It’s really good from that point of view.”

Mr McKean said his biggest challenge adapting to the new technology was surrendering management to the system and trusting it to do the job.

“There’s also the fact that someone has to be available to monitor the system, not necessarily be in the dairy, but to be available to take automated phone calls from the system and to attend if

there is an issue that needs addressing.

“That may mean a phone notification in the middle of the night to attend to a problem.

“But the upside is, we start at 6am now and not 3.30am.”

He said 90% of the herd came over to be milked during the night.

“We only get about 50-60% during the day and that’s because we do a lot of teaching of vet students here,” he said. “It’s not the most appealing place

to come (as a cow) when there is a high risk that you will be poked and prodded by a heap of students.”

Mr McKean said adjusting to the robotic system had so far not made his life easier – but that he can see it will as they get better at using it.

“It’s definitely the way of the future there’s no question about that.”

On the issue of his award, Mr McKean said he was “embarrassed” but honoured to receive the recognition, and he loved his job and the team he worked with.

“I’ve had a huge amount of support over the years,” he said. “And I like cows.

“I’m enjoying them even more, they are getting even quieter since the new system came in.

At night you can wander round quietly with them, and they don’t care. I’ve thought some of them were dead they were that quiet – you have to give them a little shove just to realise they were just resting.”

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

NEWS // 11

Fortified milk linked to increased milk production A NEW Dairy Australia

study has found that feeding fortified milk increases the pre-weaning growth rates of calves.

“Animal scientists have known for some time that dairy heifers reared on conventional restricted milk feeding programs do not achieve their full genetic potential for growth,” Dairy Australia program manager Dr Kathryn Davis said.

“Recent studies overseas have shown improvements in calf health, growth rates and feed conversion efficiency when calves are fed greater volumes of milk or milk replacer during the pre-

weaning period.”

To better understand the benefits and risks of feeding fortified milk on health and growth of dairy heifers, Dairy Australia funded a study on four farms in western Victoria where a total of 213 group housed, dairy breed calves were randomly allocated into two diets: 1. Fortified milk diet (2L of whole milk supplemented with 150gm high quality 25/20 milk replacer fed twice daily), or 2. Control milk diet (2L of whole milk fed twice daily).

“Although there was significant variation between farms, calves on the fortified milk were

almost 5kg heavier and 2cm taller by the end of the trial period,” Dr Davis said.

Due to low incidence of calf disease observed in this trial, no significant differences in calf health were observed between the treatment groups. Another trial conducted in winter/ spring calving herds may be required to show the full benefits of accelerated

calf nutrition in these conditions.

However, the estimated average total cost, excluding the cost of waste milk, to rear a calf to eight weeks of age in the fortified milk was significantly more at $93.27 compared to $33.97 for the control group. The dollars represent the marginal cost difference between the two

– the whole milk cost is not included.

Dr Davis said despite the cost difference, the benefits extended well beyond calf-hood.

“An increased growth rate from birth to 12 weeks has a positive impact on mammary gland development which may translate into increased milk production over the life

of the cow, and potential increased profit for the farmer,” Dr Davis said.

“Strategic use of enhanced calf feeding may also offer an opportunity to enhance the growth rates of later born calves on seasonal calving farms,” she said.

“Calves born in the second half of the calving period may be able to

achieve increased growth rates during the pre-weaning period and thus mature more quickly, and reach breeding age in line with earlier born calves.”

Dr Davis said more research on the impact of accelerated calf rearing on Australian systems would be needed for the full cost benefit potential to be determined.

YoYou dairy plan a no go for now FROM PAGE 5

including more than 2000 signatures on a petition organised by the Friends of Bass Valley group and 430 submissions against the planning application.

Cr Brown said the council considered the advice of the planning department, but also took into account the broader concerns of the community.

Leadbeater Ward Councillor, Clare Le Serve, who moved the adopted motion, said the application was inconsistent with the Protection of Agriculture Land and Sustainable Agriculture, in particular the proximity of the free stall barn to the community amenity and residents.

“As council, we have to weigh up all the information and consider all the objections, and we also need to take into consideration that this is a large investment to the shire,” Cr Le Serve said.

“The dairy industry needs innovation, growth and technology that will support and see the sector into a competitive position into the future. The agriculture sector embraces national and international markets as a part of the free trade agreements and sees the importance’s of this to the country’s economy.

“But as council we must get the planning right, understand the environmental impacts and work with the sector to better outcomes for all.”

The Bass Coast Council also moved a subsequent motion to note the work being undertaken to fill the policy and strategy gaps that relate to intensive farming.

Cr Brown said the Victorian Government’s Food and Fibre discussion paper identifies there is work to be done in relation to sustainable intensification, such as balancing competing land uses, environmental protection regulation, animal welfare and, importantly, community engagement.

However, Mr Jenkins said the decision was disappointing. “The dairy industry needs a process and framework that avoids any situation that creates planning uncertainty for potential investments in our industry. I understand community sentiment can be strong and should not be ignored but rather should be part of the whole equation. Why is it that some shires welcome investments and others don’t and some can halt an investment while others welcome it?”

Mr Jenkins said industry, government and milk processors should work much smarter on the introduction of foreign investment and guide them through the type of investment and outcome that is beneficial to all parties.

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

12 // AROUND THE REGIONS

Western Australia

New South Wales

Lion salutes 100yr dairy farmers LION DAIRY and drinks producer, owner of brands

Dairy Farmers, Pura, Farmers Union, King Island Dairy and Yoplait among others, held a centenary celebration to show its appreciation for 16 NSW farming families who have supplied milk to the Dairy Farmers brand for 100 years or more.

“It’s incredible to think that some of the farming families with us today were there at the very beginning,” Lion Dairy and Drinks managing director Peter West said.

“While so much has changed over the last century, success in the dairy business is still about hard work, a commitment to quality, building relationships and thinking long-term.

“These 16 farming families have these qualities in spades, and we’re very proud that they have chosen to partner with Lion and supply the Dairy Farmers brand for 100 years or more.”

Representatives of the families attended a special centenary celebration at Mittagong on August 24 together with the NSW Minister for Agriculture, the Niall Blair, dairy industry leaders and Lion representatives.

Lion currently partners with 84 NSW dairy farmers: 53 Dairy Farmers Milk Cooperative farmers and the balance contracted directly to Lion. Together these farmers produce 200 million litres of milk annually.

Dairy farmer and 100 year awardee Ben Honey said: “Our business began in the 1840s, six generations back, and we have been dairying on the same farm ever since. We have been with Dairy Farmers since the cooperative was established. In that time we’ve grown our herd to 200 cows and we now produce around 1.8 million litres each year.”

THE CREAM of WA’s

dairy and farming sector will head to the event of the year on Thursday, September 24 at HBF stadium, Mt Claremont.

Hosted by WAFarmers, the Heart of WA is the biggest event of its kind

in Western Australia, bringing together everyone with an interest in the agricultural industry.

The evening of fine dining, entertainment and networking is in recognition of WA’s

hard working producers and attracts everyone from the local farmer or butcher to grain merchants, agronomists and machinery dealers.

Visit www.wafarmers. org.au/events/heart-wa/ for more information.

Sub Tropical Peter West, managing director, Lion Dairy and Drinks, with farmer Bryant McEvilly from Evilly Vale Farm in Robertson.

More profit per drop for Queensland farmers THE DEPARTMENT of Agriculture

Fellow awardee Mark Fraser said: “It’s incredibly important we help the next generation of young farmers inherit a bright future and I have been investing with my son Brad to grow our operation. We now operate three farms and Brad, who has only been running his own farm for 12 months, recently took out Lion’s milk quality award.

Altogether, we manage a 1200 herd producing 8.5 million litres of milk annually.”

Gippsland It’s expo time again at Korumburra THE SOUTH Gippsland Dairy Expo is on again at Korumburra Showgrounds on Wednesday, September 23 and Thursday, September 24 from 9am.

The expo showcases the latest in dairy innovation and technology.

There’s also the Ladies Pavilion and dedicated activities for the kids.

Dairy Expo secretary Deanne Kennedy said the expo would not be the success it is today without tremendous support and help from its community volunteers.

“Once again, the Korumburra Rotary Club will be in charge of the Kids Activity Pavilion and the Poowong Kindergarten will be coor-

Celebrating WA’s produce and people at its heart

dinating the food for the patrons of the event. In addition to these organisations, the Strzelecki Lions Club has various other community volunteers who assist with the event each year,” she said.

The Dairy Expo started 16 years ago with the committee having a core objective to deliver a ‘one stop shop’ to local farmers, so that if farmers were busy, they could visit, do their business and leave having spent a valuable couple of hours. “Today the event still has the same focus,” Deanne said.

This year, Holstein Australia have organised Phil Hentschke to deliver a presentation titled ‘The type of ani-

mals you own equals profit for your business’.

The presentation will take place on Wednesday at 1pm and Thursday 11.30am.

And don’t miss On Farm consulting’s Matt Harms who will host a panel discussion ‘What does success look like in the dairy industry’ on Wednesday at 11am.

The Udder Truth Showbag is also back, after a successful introduction to the Dairy Expo last year and is available for purchase for $2 at the gate.

It offers the chance to win $3000.

Visit www.dairyexpo.org.au for more details.

and Fisheries is providing up to $10,000 to eligible irrigators who participate in the Improved Economic Productivity from Irrigated Agriculture in the Qld Murray Darling Basin project.

The project is focused on improving on-farm water productivity, measurement and management and individual system components (storages, delivery channels, in-field application and tailwater/drainage).

Funding is for the reimbursement of selected equipment and/or professional services. Expressions of Interest for Round 2, which opened on September 1, can be sent to moreprofitperdrop@daf. qld.gov.au Applications can be received from Thursday, October 1 at 8am and will be reviewed on a first-in first-served basis.

The first 40 eligible applicants approved for funding. Phone DAF on 13 25 23 or visit www.moreprofitperdrop.com.au

South Australia DairySA chair among nominees for DA board DAIRY FARMER and chair of DairySA

James Mann has been selected to stand for election to the Dairy Australia board as non-executive director at the AGM in November.

Mr Mann is the owner of Donovan’s Dairying Pty. Ltd. at Wye, South Australia.

The business has pioneered innovative grazing and production systems for dairy in southern Australia and continues to explore leading edge opportunities for business sustainability.

James has been the chair of DairySA since 2002 and has also performed other

dairy industry leadership roles. There are three board vacancies this year.

Other nominees are David Mallinson, executive general manager, business operations for Murray Goulburn Cooperative, and John McKillop, who was first appointed to the Dairy Australia Board in 2012, and has been nominated for re-election as a director to fill the agribusiness and strategy vacancy.

All candidates will require more than 50% of the votes cast at the Dairy Australia 2015 AGM in November to be elected

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

AROUND THE REGIONS // 13

Western Victoria

Tasmania Making quality A love of animals shapes career choice in agriculture silage sessions THE APPLE doesn’t

fall far from the tree, the saying goes.

That’s certainly the case for university student Wendy Parish, who grew up on her parents’ dairy farm near Colac in southwest Victoria. She is now majoring in production animal health at the University of Melbourne.

On study breaks she’s home on the farm helping tend to the calves and feeding the cows.

“I think I prefer working with animals,” Wendy said. “I’ve always been around animals…

sometimes they’re easier to understand than humans.”

Wendy recently completed a two-week industry placement at the Australian Dairy Herd Improvement Scheme, and while that was an enjoyable experience, it hasn’t made her choice any clearer.

“There are so many more options that I didn’t even know existed before I went there. I might keep studying after my degree and go into research.

“It’s hard to decide… everything’s so

interesting.”

Wendy is one of the many dairy farming faces to feature on Dairy Australia’s Legendairy campaign website.

Visit www.legendairy. com.au

EXPERT (LIVING legend) Frank Mickan will speak on making quality fodder in the form of silage and hay to support stock growth and milk production.

Knowing what you can control in the silage making processes will help improve the quality. Frank will be at Ouse (September 28), Hagley (September 29) Scottsdale (September 30) Elliot (October 1) and Smithton (the night of October 1) Contact admin@dairytas.com.au for more details.

DeLaval VMS™ Much more than a milking robot State-of-the-art heat and health detection system

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Murray Dairy How did northern Victoria perform? discuss farm business returns and making profitable business decisions this season.

The first session is on Monday, September 14 in Wondonga and Tuesday, September 15 in Shepparton.

Contact Michael.o’keefe@ecodev. vic.gov.au (Wodonga) and sarah.brown@ecodev.vic. gov.au (Shepparton)

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financial and physical performance of dairy farms for 2014-15 in northern Victoria and across the state will be covered at two sessions this month. The ‘Down to Business’ workshops will also introduce DairyBase, the newly released national dairy farm business database.

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Dairy News AUSTRALIA september 2015

14 // OPINION Ruminating

EDITORIAL

No China FTA means less jobs in the long run

milking it...

Is almond milk nuts?

WHAT PERCENTAGE of almonds should be in the ingredients of almond ‘milk’ to make sure consumers are not being misled? Well, a class action filed in the US against WhiteWave Foods and Blue Diamond Growers for false advertising looks set to nut it out in the civil courts soon. Here at Dairy News of course, the concern isn’t really whether there is a small (2%) amount of almonds in the product they sell as milk, but in fact whether you can really call it milk at all? Given that the term milk has its roots in an Indo-European word “melg,” which means to “wipe or stroke”, we’re not sure any type of liquid that doesn’t involve actual milking should be called milk at all. Camels, goats, – you are off the hook. But almonds, coconuts, soy beans, oats and cashews – is it time for a new phrase?

How about ‘non-dairy water-based composite’?

Sounds delicious…

Fighting global warming one belch at a time

A FOOD supplement could reduce cows’ farting and burping by nearly one third and help save the planet.

At least one third of all emissions of methane, a potent greenhouse gas, is from ruminant animals. Over 12 weeks, cattle that consumed the chemical 3NOP also gained 80% more body weight than those given ordinary feed. The 3NOP (3-nitrooxypropanol) compound was developed

by DSM Nutritional Products, a Dutch supplier of feed additives. The product seems safe and effective. But note, in cows that ate the supplement there was no decrease in feed intake, fibre digestibility and milk production. If regulators approved it and farmers began using it, this methane inhibitor could cut greenhouse gas emissions from livestock.

Another fine example of what good R&D can achieve.

Cows some of Russia’s best fed

Another old girl

RUSSIA’S BAN on the West’s dairy, meat, fruit and vegetables is heaping high the ‘tables’ of that country’s nine million cows. From early August, the cows have been dining on brie, camembert and chorizo -- all foods which fall foul of the ban.

Until now, food found by government inspectors to be from Europe and North America was simply returned to its country of origin. But now authorities in Russia are planning to turn the produce into “high-protein flour” for livestock. A spokesman for the agricultural safety regulator says meat and dairy products can be used as raw materials for highprotein flour to be added to food for livestock.

Advertising Chris Dingle chris@dairynewsaustralia.com.au

LAST MONTH Dairy News brought you the story of two now-retired old cows from Waitako, New Zealand, which reached the ripe old age of 21.

We put the call out for someone in Australia to top the record. Thankfully, Veronica Penfold, from Willow Grove in West Gippsland, got in touch and told us about her ‘old girl’ named Denz-u-horse who also turned 21 on April 11. After 18 pregnancies and 18 calves, we’re pleased to know the old girl is now fully retired and still in good health. Let’s hope she makes it to 22.

0417.735.001

Editor Madeleine Brennan

Dairy News Australia is published by RNG photographs are subject to copyright and may not be reproduced without prior written

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

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

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FARMING AND industry groups are right to pull their collective resources towards ensuring the China free trade agreement is officially endorsed by Parliament and bought into effect by the end of 2015.

The stakes are so high for Australia’s economy, which based on the most recent data is in desperate need of a kick start following the mining downturn, that the possibility China could walk away and look elsewhere, as was suggested by our Trade Minister Andrew Robb, doesn’t bear thinking about.

The stakes for the dairy sector are especially high.

After the disappointment of the Japan free trade agreement (FTA), and with the Trans Pacific Partnership looking like falling over, the China FTA would deliver both immediate and longterm benefits in terms of jobs and investment, especially in rural and regional areas where it is needed most.

The Australian Dairy Industry Council highlights that failure to implement the deal by December 31, 2015 will see the Australian dairy industry unnecessarily incur tens of millions of dollars in tariffs that would otherwise be avoided – worth about $60 million. The full benefit to the Australian economy is billions more.

That’s not to say the agreement isn’t without some risk.

The degree of that risk – especially in the form of Australian workers losing out to cheaper foreign labour – depends on the legal interpretation of the detail in an agreement that is now freely available online but largely inaccessible to the average punter due to its sheer size and seeming need of a law and commerce degree to understand.

This leaves us all at the mercy of political, union and industry leaders to interpret according to their own prejudices and interests.

The Minister for Trade and Investment has labelled any attempt by Labor to delay the agreement as ‘economic sabotage’, while Bill Shorten, himself a former union boss, says while he is supportive of the China FTA and the opportunities it presents, his party will not compromise on Australian jobs.

We can only hope Shorten’s stance amounts to little more than political posturing.

Because if this stance amounts to the failure to secure the China FTA, we will see the loss of far more Australian jobs than the labour movement believes it is fighting for.

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

OPINION // 15

Marian Macdonald pictured with her two children.

Pinko greeny: the changing colour of farming with new pasture species, evolving IT’S ALL about change here on the lation or a price on pollution.

And, of course, I don’t need to nutrition, more accurate weather farm.

In the last eight years, we’ve tell Dairy News Australia readers and climate forecasts, efficient water shifted the calving dates, sown new how extra bought-in feed can savage infrastructure and fresh revenue pasture species, planted kilometres a farm’s profitability. In our case, it streams. It can be done, so long as of shelterbelts, upgraded the water seems we have lost roughly a tonne we, as individuals and the wider system and installed sprinklers in the of dry matter per hectare to the short Australian dairy industry, have the yard. We’re embarking on a little irri- springs. That’s about $60,000 wiped resources.

But if we don’t ask for the tools, gation infrastructure, too, in a bid to off the bottom line just there; much we’re unlikely to get them. I’m counter the shorter springs and unre- more than the rising cost of power. grateful that Australian liable autumns that have Dairy Farmers has a clear begun to dog the district. climate change policy and Not that it makes us “If we (and our children) has been such a strong special. Plenty of other are going to keep on advocate for Australian dairy farmers around here dairy. This is the time to are doing all this and more. adapting, we need the best throw our support behind We’re scrambling like possible information to make that push for greater a mob of pinko greenies the most of our climate change resources. to deal with the impact of farms’ resources. We also Some say we need to erratic seasons. Not the be careful about choosing latte-sipping type but the need to invest in strategies our bedfellows. The sunburnt ones who actu- that allow us to same latte-sipping pinko ally get their hands dirty make manageable greenies who are agitating planting trees. adjustments rather than for action might turn on They’re busy at the us and demand we drop a Ellinbank research farm, being forced to make coin into a slot every time too, where cows sleep over radical decisions a cow burps. The reality in “burp mootels” measur- when crunch time hits.” is that we cannot hide, ing the impact of different the connection between feeds on methane. In a new Irrespective of the cost, Australian cows and methane is already well breakthrough, scientists have even found a way to cut dairy cow emis- dairy farmers can and are adapting to known. Even so, many responsible climate change. The question is: can, environmental groups are reaching sions by 30%.

None of it is cheap but all of it – and should, we do it all by ourselves? out to farmers. And, these days, we If we (and our children) are going have much more in common than that from the lab to the paddock – is smart.

The research proves to the world to keep on adapting, we need the best which divides us.

Let’s start the conversation and that the Australian dairy commu- possible information to make the nity is already doing more than its most of our farms’ resources. We also take the time to talk to our local MPs fair share to address climate change. need to invest in strategies that allow and the wider Australian public about Beyond its public relations value or us to make manageable adjustments the progress we have made and the contribution to the planet’s health, rather than being forced to make rad- support we deserve. such proactive work is great insur- ical decisions when crunch time hits. • Marian Macdonald is a Gippsland It takes time, clever people farmer. You can follow her blog at ance against the day when political pressure mounts for increased regu- and money to successfully adapt milkmaidmarian.com

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

16 // MARKETS

Volatility rules in search for balanced global market THE PAST year has

tested a lot of the assumptions that had been made about the world dairy market, most importantly that there was a oncebottomless market being driven by the urbanisation miracle occurring in China.

Everyone got that wrong – economists, food companies, dairy exporters and analysts – but especially the Chinese government that has been caught out by the massive loss of confidence in its industrial demand, currency and stock market.

Even the world’s biggest dairy exporter, with a

FRESH AGENDA STEVE SPENCER long association and deep investments in the market, couldn’t see the building stockpiles and flattening demand.

With acute 20/20 hindsight, the Chinese dairy boom and bust may go down as one of the biggest bubbles in the history of dairy trade, but leaves

us with some staggering numbers. Chinese import growth exploded from 2012 to 2013 to consume an additional three billion litres in a single year – with expectation growth would keep going. This surge very cutely equalled the expansion in NZ output over three years to 2014 as it geared up to supply the surging demand. Imports slid in 2014, and again over 2015, and many now think China’s future norm will be back at 2012 import levels.

Add that to Vlad Putin’s hissy fit with the West, and the subsequent closure of Russia’s cheese

market which put a further 2.3 billion litres of market demand into doubt. This came at a time when net export availability (after domestic demand) from the big three exporters grew nearly four billion litres.

Hence the demand disruptions coupled with extra supply meant an extra nine billion litres – Australia’s total annual output – was without a home over the past year.

Low prices encouraged some keen buying into several markets – South East Asia, Middle East and North Africa, Mexico and South America – to

soak up about 40% of that volume. The world is now still left with a large problem – literally a powder mountain – to work through before some “balance” is restored.

But what does “balance” actually mean? It isn’t some calm derived from a neat meeting of minds of buyers and sellers for mutual benefit. Simply, it’s the average prices at which trade has been done over the long term (since 2007 when the world changed) – milk powders at about US$3,500/t and cheddar around US$4,000/t. In 2012/13 at these prices,

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when the $A traded at around parity with the $US, average southern milk prices were close to $5/kgMS. With the dollar at or around US70c, those prices will pay well above $6.50/kgMS. So, you’d like to see them back, right?

The world will adjust, the market will recover but just what will the new norm look like beyond that?

Sorry, but this is another phase of extreme volatility that has plagued dairy markets since 2006.

Dairy is not the only sector going through this, given close relationships between grains, meat proteins, and oilseeds, and the greater fragility of the world’s weather – not to mention China’s influence and geo-political upheavals.

The history of spot prices for Cheddar and SMP shows the contrast over time.

Either side of a period of relative calm from early 2010 to mid-2013, markets have experienced lengthy phases of extreme volatility. Up to 2009, a global food shortage then a GFC had large impacts on trade. Since mid-2013, a more complex suite of influences have impacted the sector.

Can we come out of this deep plunge? The adage “the best cure for low prices is low prices” is now at work to slow down milk supply, but it will take time.

Supply responses always work faster when the market is low – as long as it takes to put cows on a truck bound for burger heaven, or to hang-up on the feed merchant. On

the way up, the response is far slower - high product prices in 2013 and 2014 induced a positive, gradual milk supply response which has lasted well into 2015, spurred by the removal of EU production quotas.

A slowing in milk output is underway in NZ, and will accelerate as its season unfolds. A gradual slowing has also started in a number of EU states more exposed to commodity exports. The slowdown may take longer as new found freedom postquota has created its own monster, and exports are a small portion of milk use.

There is much more to unravel from the current market situation, as this extremely volatile cycle quickly built large stockpiles. Chinese processors will take time to work through milk powder inventories, but buyers in other regions such as SE Asia and MENA are also well-stocked.

All up, it will be very lucky if we see the “balance” restored to prices in the next year. Most likely they will take longer to arrive, certainly in actual prices paid to exporters, as opposed to the emotion captured in spot prices.

Poor weather may change that.

Will the dairy world learn from these inevitable impacts? Possibly not a lot.

China as a single large market is a black hole because its data in most areas can’t be believed.

The biggest culture challenge for China as it moves more into a consumer-led economy is to be transparent and simply tell the truth.

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

MARKETS // 17

Dairy looks Export demand remains strong to price sensitive markets

Dairy NewS aUSTraLia june, 2012

agribusiness // 17

With season 2011/12 only a few weeks from ending, attention is now focused on 2012/13 milk prices as farmers consider strategies for the coming year. In some domestically-focused regions, renegotiated contracts incorporating lower prices and reduced ‘tier one’ access are undermining farmer confidence and supply stability. For many farmers in export-oriented regions, a lower price outlook relative to the current season not only adds to the challenges of doing business, but seems GLOBAL DAIRY markets have only recently begun to medium term to contradict the positive outlook of Asia-driven show signs of recovery, though more positive market sen- dairy demand growth. timent risks being countered by the ongoing fundamental Dairy Australia’s indicative outlook issue of booming supply outpacing demand growth. for southern farm gate milk prices – While a quieter Chinese market and the absence publishedof in Russia the recent Dairy 2012: Situation and Outlook report, is for an continue to be notable demand side-influences contributopening price range of $4.05-$4.40/kg ing to the current market situation, the prolonged period MS and a full year average price range of depressed prices has encouraged buyers in a number of$4.90/kg MS. The between $4.50 and considers the wider market picmore price sensitive markets, such as Africa,report South East Asia, ture and summarises the many factors and the Middle East, to stock up on dairy product.

Individual at play; the key theme of the current sitcountries within these regions are diverseuation and rarely make being that of re-balancing in the dairy supply chain. the headlines, but their collective price responsiveness adds In commodity regions of Australia focused on a valuable degree of balance to volatile dairy producing drinking milk, many farmers markets. When prices are high, they buy less; pricesmarket in the form face awhen re-balancing fall, they stock up. of renegotiation of supply contracts and reducedprinciaccess to ‘tier one’ supply.

What we’re looking at is some basic economic

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

gLobaL impacT JohN DropperT

GLOBAL IMPACT AMY BELLHOUSE

Shifts in private label contracts and processor rationalisation have seen milk companies adjust their intake requirements and pricing to meet the changing demands of a highly pressured retail marketplace. Lower contract prices and a lack of alternative supply opportunities present challenges in a market with limited manufacturing capacity. Despite these challenges, the underlying domestic market is stable, with steady per-capita dairy consumption and a growing population providing a degree of certainty beyond the current adjustments.

In the seasons following the 2008 financial crisis and subsequent commodity price recovery, farmers in export-oriented regions have seen solid global supply growth (see chart) - with higher-cost competitors in the Northern Hemisphere amongst those expanding output as their margins increased.

This season, favourable weather conditions have further enhanced milk

flows. 2012 milk production in the US is up around 4% on 2011 for the year to April (leap year adjusted), whilst early data suggests EU-27 milk production finished the March 2012 quota year up 2.3% on the previous year. New Zealand production is widely expected to finish this season up 10% on last year - a huge market influence given 95% of NZ milk is exported. Argentina is also enjoying solid production growth, but a significant supply gap in Brazil prevents much of this additional milk from leaving South America.

Despite wider economic uncertainty, demand has remained resilient as importing countries like China and

those in south-east Asia and the Middle East maintain consistently higher economic growth rates that support increased dairy consumption. However, the surge in supply has outpaced demand growth in the market.

This situation has seen the scales tip in favour of buyers in dairy markets, with commodity prices retreating steadily over recent months. Butter prices are down some 30% from their 2011 peaks, whilst powder prices have lost more than 20%. Farm gate prices have subsequently been reduced in most exporting regions. The average basic farm gate price for milk in France for example, dropped 12% from 32 Euro

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ples at work: in general, the quantity demanded of a good change with price, and demand for a product, is influenced by the relative price of substitutable goods. In price sensitive markets, this relationship (known as ‘elasticity’) is more pronounced. austraLian DairY, The relatively high proportion of household income rice and wine exporters to spent on food, hampers ability to purchase relatively luxuMalaysia are the biggest rious products (such as dairy) as they become increasingly winners in a free trade agreement (FTA) signed expensive. Even as consumers in these markets develop a two countaste for dairy products, if affording staplesbetween (such the as rice) is tries last month. already difficult, consuming milk isn’t a priority.

FurtherThe deal, signed after more, the necessity or temptation to swap to cheaper, seven years ofplantnegotiations, allows liberalised based alternatives becomes particularly strong as thea price licensing arrangement premium for dairy products increases. for Australian liquid milk The quintessential example of this is Africa,andwhere exporters allows for higher buyers in many countries were effectivelyaccess squeezed outvalue of retail products. the market when it was at its height in 2013.

This resulted It guarantees Ausin global dairy exports to Africa falling quite substantially tralian wine exporters tariff times treatment year-on-year, followed by a sharp upswingtheinbest recent Malaysia gives anyfor counas pricing has been lower. Africa is not a major market try. It also allows open Australian dairy product: but South East Asia is,arrangements and many from access countries in the region, such as Thailand, are2023 extremely pricerice for Australian with all tariffs eliminated sensitive. by 2026.

In Thailand, Australia’s seventh largestThe dairy export National Farmers’ market, 31% of the population live on under US$4 a the daytrade Federation says dealFurthermore, will improve inter(according to World Bank figures, 2010). national market access in recent times, domestic and international factors have for Australian agricultural combined to create an unfavourable economic goods. outlook, “After seven years of wage growth has fallen sharply, and household debt levels negotiation, the NFF is are high. under no illusion of how Dairy Australia’s Dairy Affordability Index showsitthat in to challenging has been May 2015, taking both global markets and the Thai currency complete this FTA with NFF vice presiinto account, SMP was at its most affordableMalaysia,” since July 2009. dent Duncan Fraser says.

Furthermore, over the 12 months to May 2015, it was 39% The FTA will fill a more affordable on average, compared to number the same period of gaps within the a year earlier. Over a similar period, the premium attracted by dairy proteins (SMP) compared to plant substitutes (soy) also retreated significantly: down 39% on016-017.indd a US dollar 17 denominated basis.

This means that in recent times dairy protein has not only been relatively cheap, but there has also been less financial incentive to switch to alternatives. Hence, price sensitive markets have responded by re-stocking supply pipelines.

This increased purchasing helps maintain a degree of market balance, at a time when prices are falling due to reduced exports to markets like China and Russia. Many markets, such as Thailand, will see dairy consumption become less price-sensitive in the future, as consumer wealth increases, which is good news for dairy exporters.

However, their current role in helping counter market peaks and troughs makes them an important consideration today.

cents/litre in March (AUD 41c/L) to 28 Euro cents/litre (AUD 36c/L) in April.

Profit margins are under pressure in the US, and in NZ Fonterra has announced the final payout for the 2011/12 season has been cut from NZ$6.75-$6.85/kg MS to NZ$6.45-$6.55/kg MS (AUD$4.96$5.04).

Effectively, global dairy markets are rebalancing. Lower prices will both slow production growth and stimulate demand, and as this occurs we will ultimately see a price recovery. Key factors to watch on the global scene will be the rate at which milk production overseas slows in response to lower prices, the impact of the current financial worries on consumer confidence, the path of China’s economic growth, and the value of the Australian dollar.

Demand for exported dairy products remains a positive and will continue to grow with the middle class in large emerging markets such as China, with changes in diet and with increasing urbanisation - and also in conjunction with global population growth. Locally, the domestic market is supported by a growing population and stable percapita consumption. Whilst the dairy market is currently a challenging place to be a seller, all signs indicate that balance will ultimately return.

Malaysia FTA benefits dairy Freedom ASEAN-Australia-New Zealand FTA (AANZFTA).

“Protectionist sentiment over agricultural goods is rife and growing across the globe, so in this context it is pleasing Australia has managed to forge an agreement with Malaysia that has dealt with some sensitive agricultural issues not effectively covered by AANZFTA,” says Fraser.

Sealing the deal: Malaysian trade minister Mustapha Mohamed “While under the with Australian counterpart Craig Emerson after signing the deal.

AANZFTA agreement most of Australian agribut also through technical Despite the compleers through streamlining culture’s key interests or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, much remains to be done border’ restrictions.” dairy and rice are two sec- laration processes and The FTA was signed on for Australia’s farmers to improved marketing tors where incremental May 22 in Kuala Lumpur tap into the full potential arrangements for certain market access improveby Australia’s Trade and of the Asian region and commodities. ments have been negotiCompetiveness MinisThe Malaysian market beyond. ated under the Malaysian ter Craig Emerson and his He says the NFF will is worth about A$1 bilFTA. Malaysian counterpart now throw its attention lion in Australia agricul“This trade deal was towards ensuring agricul- Mustapa Mohamed. tural exports – including also particularly imporEmerson says Australia ture remains front and being its fourth-largest tant for sectors such centre in completed FTAs will be as well-positioned sugar export market and as dairy that have been in the Malaysian market fifth-largest wheat export with South Korea, Japan, facing a competitive disas Malaysia’s closest tradChina and Indonesia as market. advantage in Malaysia ing partners in ASEAN, With an annual economic immediate priorities. compared with New Zea“These are all markets and in some cases better. growth at about 5%, land which already has Quality hay from start forms to finish.

No matter the crop conditions, The FTA will guarantee with enormous growth Malaysia an impora completed FTA with tariff-free entry for 97.6% opportunities and where parthave of thethe ‘Asian Malaysia in place.”

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Freedom’s wholly owned subsidiary Pactum Australia will run the plant. Some of its products will be sold in Australia.

The company says given Asian consumers’ rising incomes and improving diets, demand there will grow for quality dairy products from low-cost production bases such as Australia, whose milk is well regarded.

The new plant will allow Pactum to meet growing demand for UHT dairy milk, and add to capacity for valueadded beverages at its Sydney factory. Pactum is expanding its capabilities at the Sydney plant

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to provide portion pack (200-330ml) configuration for beverage products.

The NSW location will provide access to the most sustainable and economic source of milk. Pactum has strong links to the Australian dairy industry and will expand its arrangements with dairy farmers for supply of milk. The new plant will increase scope for Australian milk supply – value-added, sustainable and export focused.

Initially the plant will produce 250ml and 1L UHT packs from a process line capable of 100 million L. The processing and packaging plant will emit less carbon, use less water, and be more energy-efficient than equivalent UHT facilities in Australia and SE Asia. Pactum expects site preparation to begin in October 2012 and start-up by mid-2013.

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

18 // MANAGEMENT

From a long way back to a long-term vision have served the farm well and continue they were in for a challenge when they to do so.

They planted mainly perennial ryebought their Tasmanian farm nearly a grass and white clover pastures, which decade ago.

The Lawrences purchased Janefield were best suited to the cold winters at Meander in 2006. “At the time it was and mild summers, and grazed around the two and a half known as one of the worst to three leaf stage and wettest farms in the to optimise growth area,” Brian said. with a varied rota“It had only been tion through the treated as a run block and year. never farmed properly,” “If we look after he said. “It was undevelthe pastures we oped so it wasn’t like condon’t want to be reverting a cropping farm sowing every few to dairy; we were coming years,” Brian said, from a long way back.” although they are Brian and Michele were RICK BAYNE happy to try new able to buy it at the right varieties backed up price but there were a lot of headaches early on in the conver- by decent trial work.

Placing a high priority on animal sion. For starters, the first three weeks were spent removing stumps, rocks and health and welfare and rearing their own heifer replacements also allowed old car bodies.

“We knew what we were buying the farm to grow.

Cut to 2015 and the farm is well and but it was a big challenge and a difficult time,” Brian said. “People would truly established, so much so that the say why on earth did you buy that? The Lawrences are now finalists in the Australian Dairy Farmer of the Year comcows will need webbed feet.”

Brian did as much of the labour as petition.

The 555ha farm was milking 460 possible to keep the costs down, and developing pastures was his number cows in 2007 and increased by about 100 each year. one priority.

For the past few years they have been “I knew if we could grow good grass everything else would follow. You can’t milking around 900; this year they’ve milk cows without grass and if we topped the 1000 mark for the first time.

Brian is a voracious reader about couldn’t produce milk we’d be out the agriculture and is always searching for back door,” he said.

“It was all riding on getting pastures information to make decisions from a in and developed with as much fertiliser wide variety of sources.

But his management style usually as we could reasonably use.”

The early management techniques comes back to the basics.

Brian and Michele Lawrence farm on 555ha in Meander, Tasmania. PICTURE ASHLEY HOBBINS, RM CONSULTING GROUP.

BRIAN AND Michele Lawrence knew

condition and fertility “I think you need to and production comes get your stocking rate through. I like to keep right, manage your pasthe body condition tures, graze at the right score between 4.4 and stage, have cows that 4.8 through the milking suit your system rather season,” Brian added. than have a system to “I like looking at suit your cows, calve at WHO: happy cows and workthe right time, and grow Brian and Michele ing with cows that are good grass.

Lawrence in good condition. We “These are the basic WHERE: feed them well to make things and you can be Meander WHAT: sure they are productive very profitable if you get Pasture focus and healthy.” the basics right.”

The cows produce The farm is strictly around 450-460kgMS, seasonal calving as Brian says it isn’t suitable for winter milking. a good result considering bodyweight They dry off by the end of June and the is around 480kg. They produce around heifers start calving by August 10 and 78% protein to fat.

The new herd size is likely to stay the cows on August 20.

Fertility is strong in the jersey- static for a few years, though Brian and style crossbred herd with New Zealand Michele are considering buying more genetics. A 95% in-calf rate leads to a land and entering into a share farming low culling rate. A calving pad is used agreement.

“About 1000 is enough for now,” he for closer husbandry and cow comfort said. during calving.

To increase numbers this year they The farm also has low incidences of mastitis and lameness. Brian says the are running a separate herd of young moderate size cows suit the climate and cows, irrigating extra areas and buying extra silage to offset cutting less silage pasture-based system.

“We didn’t want big cows because on the milking area.

They will also agist more cows over the farm is prone to getting wet so pugging is an issue,” he said. “They’re bred winter with less feed being conserved to go out and forage. We’re moderate on the farm.

At the moment they are on a long grain feeders. Last year we fed an avergrazing rotation, around 70-80 days, age 900kg per cow.

“Generally they’re in very good but will get down to about 22 days in

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October-November and 30-33 days over summer. Soil fertility is still improving from its low base and fertilisers are applied based on soil test outcomes.

A recent change has been the decision to drop a long-established cherry orchard which had been growing alongside the dairy operation.

“We wanted to become a little less busy,” Michele said. “The dairy has become more established and giving up the cherries made our lives a bit less complicated.

“They were great for a while to add some income but the dairy is the bigger enterprise.”

As well as developing the farm and increasing production, they have also improved their equity.

Brian farms with three full-time and two casual staff, while Michele, a former teacher, lives half the week 65kms away in Launceston where their children go to school.

He said that valuing people and engendering a team spirit and a safe, happy workplace are important facets of the farm business.

The future is looking bright for the Lawrences.

“I’m not one of these people who get caught up in the ups and downs of one year to the next,” Brian said. “I believe that over the long run it’s a good industry to be in. If you do it well there’s an opportunity to be rewarded. It’s been good to us.”

Dairy NewS AUSTRALIA september 2015

management // 19

Clear-roofed shelter keeps the worst of the weather out AN AUSTRALIANfirst clear-roofed

deep-litter cow shelter at a dairy farm near Warrnambool is boosting farm production and profitability while improving animal comfort.

The 48.6 x 81m shelter has been built on the farm of Simon and Pep Rea at Panmure by Dairy Shelters Australia.

Mr and Mrs Rea have joined with local vet David Colson and his wife Sue-Ellen to launch Dairy Shelters Australia.

The new shelter will allow the Reas to boost their herd from 430 to 550 and to protect their paddocks from winter pugging.

Mr Rea said he introduced the shelter to combat south-west Victoria’s typically wet winters.

“We’ve always struggled in July and August which has been a limiting factor on the farm,” he said. “We’ve been reluctant to have too many cows but this Simon Rea underneath the new clear-roofed shelter.

will allow us to increase the stocking rate to the level needed to manage the spring pasture.

“It’s like an insurance policy against the wet weather.”

Dairy Shelters Australia has customised New Zealand-made Redpath clear-roofed, deep-litter shelters for the Australian dairy industry.

They are made from flexible polythene membranes components and the deep woodchip floor can be easily cleaned using a simple scarifying process.

“As far as we know this is the first standoff shelter for cows in Australia,” Mr Rea said.

“There are smaller calf sheds but the point of difference here is the clear roof which lets sunlight through, helping to keep the woodchip floor dry and control bacteria.

“A milking cow can safely sit down without risk of mastitis.”

The shelters can be

built at any size to meet farmer needs and have successfully housed herds of up to 1200 in New Zealand.

“We can comfortably run our shelter with 300 cows for longer periods but shorter term we could house the whole herd,” Mr Rea said. “I’ll mainly target winter as a management tool to effectively halve my stocking rate in the wetter months. When I judge a paddock to be too wet and prone to pasture damage, I’ll move half the herd into the shelter and rotate them every 12 hours between the shelter and the paddocks.

“They will still get paddock time but there will be less walking for the cows and the woodchip floor will give them great relief in the periods they need it the most.”

The shelters also feature vents and retractable sun shades to protect cows during heatwaves.

“It’s open now for

full sunlight which will be warmer and drier for the cows but the shades are available if needed in summer,” Mr Rea said.

The Reas will increase their herd by 120 over the next two years.

The farm will go to a higher productivity bracket with its processor, will qualify for growth incentives and expects more profitability from the extra stock.

The shelter will improve pasture control by reducing pugging, eliminating over-grazing, reducing feed waste and cost, and allowing speedy recovery from grazing. It will also benefit effluent control and give farmers more management options.

The shelter is also good for cows that can move freely under the cover. Feeding can be arranged under the cover or nearby.

Dr Colson described the shelter’s protection, sunlight, ventilation and deep litter as a perfect

combination for cows.

Cows need up to 11 hours lying time per day and the soft-floored housing system has been proven in New Zealand

to leave cows happy and healthy.

The system helps to reduce lameness and mastitis, improve body condition, reduce

bulk milk-cell count and protect cows from extreme weather.

Visit www. dairysheltersaustralia. com.au.

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

20 // ABVs

Australian Breeding Values August 2015 BALANCED PERFORMANCE INDEX - Australian Proven Only INDICES

Rank Bull ID

Bull Name

BPI $

PRODUCTION TRAITS

BPI Rel

HWI

TWI

ASI

ASI Rel

CONFORMATION TRAITS

SURIVVAL

No. Dtrs

No. Herds

Survival

Rel

DAUGHTER FERTILITY

WORKABILITY

Over Type

Mam Syst

Type Rel

Milk Spd

Temp

Like

Rel

Dtr Fert

CALVING EASE

Calving Ease

Rel

Rel

Source

1

Christmas

Emu Banks Christmas-ET

315

79

206

319

251

88

99

31

105

68

107

100

81

102

101

101

78

100

74

101

88

GAC

2

Goldcrest

Topseed Goldyn-ET

312

74

255

287

221

84

63

30

104

63

101

102

72

103

100

102

72

99

70

98

72

GAC

3

Niels

Hill Valley Niels

311

72

258

325

161

84

62

31

108

57

105

104

63

98

102

103

73

103

65

98

69

ABS

4

Canbee

Country Road Roumare Canbee

295

82

205

308

255

92

187

60

103

71

106

103

85

104

102

101

84

93

74

97

97

ALT

5

Sholtz

St Clair Sholtz-Twin

257

74

178

258

191

84

54

30

106

66

104

103

72

101

104

104

67

99

73

95

80

ABS

6

Delsanto

Manna Farm Del Santo

254

91

181

277

236

99

1384

222

99

84

107

110

95

100

102

102

97

95

90

99

98

GAC

7

29HO12772

Ballycairn Oman Pello

250

79

200

197

134

87

59

27

106

74

99

97

80

100

101

102

77

111

76

104

76

ABS

8

Roufector

Bundalong Roufector

248

78

165

274

220

88

87

36

105

68

109

106

77

105

103

104

79

95

74

96

86

ALT

9

7H8081

Ensenada Taboo Planet ET

246

92

215

258

94

99

661

133

110

93

104

110

97

100

103

103

96

101

95

102

93

GAC

10

Westgate

Gallrae Jocko 3438

245

81

202

257

139

90

102

49

108

72

109

106

78

103

103

102

84

100

78

96

89

GAC

11

Janek

Rengaw Jardin Janek

238

74

183

222

192

85

85

24

105

60

104

105

70

100

104

103

74

103

64

104

65

ABS

12

29HO12470

Indijks Baylon

236

88

164

198

165

97

415

96

103

80

102

99

88

100

100

101

92

111

86

104

92

ABS

13

Gonzo

Carrajugle Gonzo

236

84

226

220

65

95

268

80

108

73

100

105

84

103

101

103

85

112

80

104

87

ABS

14

Useage

Kaarmonda Caleb

235

85

198

233

156

94

232

66

105

78

103

109

85

101

100

102

89

100

83

102

92

GAC

15

Flashback

Carenda Flashback

230

71

184

239

140

80

53

24

107

63

106

104

75

102

104

104

72

102

64

100

65

GAC

16

Buddha

Bushlea Perfector Bold-ET

229

88

177

196

152

98

787

186

103

80

101

102

92

101

102

103

92

101

82

102

98

GAC

17

Midnightspec

Hill Valley Midnight Special

228

75

152

211

187

84

77

28

102

66

103

104

80

99

98

98

76

96

68

98

72

ABS

18

Jenkins

Kirk Andrews Jenkins

228

70

185

273

152

80

52

25

104

59

108

113

68

101

102

104

69

97

61

99

72

GAC

19

Kingtide

Bundalong Planet Kingtide

224

70

184

161

116

79

45

25

105

60

97

103

70

99

101

100

68

100

63

GAC

20

Altamoonwalk

Hill Valley Moonwalk

224

76

203

254

90

88

104

32

110

60

103

108

69

103

102

103

72

99

68

ALT

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ABVs // 21

New bulls top lists in August ABV release THE AUGUST release of Australian Breeding Values (ABVs) has seen different bulls top the lists for profit, type and health, giving dairy farmers the ability to identify sires to suit their different breeding objectives (see table).

Michelle Axford, from the Australian Dairy Herd Improvement Scheme (ADHIS), said the August ABV release was the second run using the three new breeding indices, which are published in the August edition of the Good Bulls Guide.

“In April we saw the same bulls sitting among the top five for each of the new indices, although they ranked slightly different for profit, type and health.

The August release has brought new bulls to the top of each index, and we can expect to see more diversity over time as bull breeders select more specifically for either profit, health or type,” Mrs Axford said.

This evolution of ‘specialist index’ bulls is good news for those dairy farmers who want to place more emphasis on either profit, health or type.

“Having three indices gives farmers the ability to quickly identify bulls that most closely match their breeding objectives.”

Each of the indices places a different emphasis on the key Holstein bull Christmas has topped the Balanced Performance Index in the latest Good Bulls Guide.

Dairy’s three indices Highest ranked Australian proven bulls, August 2015

Profit (BPI) Christmas Holstein

Jersey

Health (HWI) Niels

BPI 315 HWI 258 Genetics Australia ABS Australia

0200JE08165 Hatman BPI 356 Semex

The Balanced Performance Index (BPI) is an economic index that blends production, type and health traits for maximum profit. It reflects most farmers’ preferences.

The Health Weighted Index (HWI) allows farmers to fast track traits such as fertility, mastitis resistance and feed efficiency.

The Type Weighted Index (TWI) allows farmers to fine tune type.

traits which affect profit in Australian dairy herds (see pie charts). For example, the Health Weighted Index places more emphasis on fertility, cell count and survival.

“Regardless of which index you work from, you can be confident that any bull in the Good Bulls Guide will improve the herd’s genetic merit for overall profit,” she said.

“All the bulls listed in the guide are good bulls. Their inclusion in the guide is based on an independent assessment

by ADHIS, which is based on world-leading science,” she said.

Type (TWI) 7H9420 Guthrie TWI 334 Genetics Australia

CSCAMBITION Cairnbone HWI 276 ABS Australia

TWI 392 Alta Genetics

Percentage emphasis on trait groups in Australia’s three breeding indices

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

22 // ABVs

Boosting production as easy as A, B, V LOCKINGTON DAIRY

Michelle Axford (right) with Jared Ireland and his family.

farmer Jared Ireland recently went through his 400-plus cow herd programming his heifers.

He would not consider the job without using Australian Breeding Values, which have been a fundamental part of his

herd, every kilogram is industry involvement. a vital saving,” Michelle First with his father said. and then father-in“If your herd runs to law George Wagner, four figures the potential who currently runs the number one Holstein herd savings are massive.

“With genomics and in all three new indices research collaborations, - and definitely since he producers can breed started his own business dairy cows that produce in 2006.

And the better the data the same volume of milk gets, the more Jared relies from less feed - due to lower maintenance on it to get the job done. requirements.

“This joining will be “The Feed Saved the first batch where every ABV is the first practical yearling has had genomic use of genomic tests to testing, which is enabling measure a trait that can’t me to identify their traits be routinely measured on and match those with farm.” bulls who The Feed It is the will help potential to accelerate the Saved ABV make more production will let from less, the profile of our producers holy grail of herd,” Jared identify agricultural said.

Australia “Right now bulls that have the our focus is on can save at and data to do it production, least 100kg accurately and fertility of dry feed - which is is the biggest cull factor in matter per encouraging enterprises the herd. cow per such as the “I have year at the one run by also started same level Jared and wife looking at Courtney the new of milk look at Feed Saved production. to including it in ABV because their business. being able to “It also has the identify which cows in the herd will produce more on potential to be a big step forward and the Feed the same feed levels will Saved ABV should be an be of value. asset when combined with “But it has just come other advances in ABVs out and while it won’t across our herd,” Jared influence what I do this adds. joining, it is something I “We are currently will be keeping an eye on producing around 2.8 as every new trait has to million litres on 256ha, be of value.” of which about 70% is ADHIS extension irrigated. and education manager “Anything we can Michelle Axford said: incorporate that will get “Visually, you can’t protein up, because that’s spot a highly feedwhat we get paid for, will efficient cow, but now you can deliberately breed be welcome and if we can do it without boosting for it”. feed inputs it will be even Michelle said there’s better. one place dairy farmers “We are culling around can see the benefits of latest ABVs - in their bank 15% of the herd every year, and as we continue to accounts. benefit from the impact The Feed Saved ABV will let producers identify of genomics and advances such as the latest indices, bulls that can save at we would be expecting least 100kg of dry feed better results with every matter per cow per year year - both in production at the same level of milk and the quality of our production. cows.”

“If you run a small

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

24 // ABVs

World’s first automatic BCS system HAVING PROBLEMS

getting an accurate body condition score of your herd? No longer, says DeLaval, which has launched the world’s first automated body condition scoring system.

The technology is based on a 3D camera fixed on a gate. Once a cow passes under the camera, the system recognises the movement and selects the best still image of the cow

in the video sequence. The image is converted into an accurate BCS. “Most farmers understand the concept and benefits of BCS, but for various reasons they are not doing it,” says DeLaval spokesman Fernando Mazeris.

“Now that we have… consistent, regular and accurate scoring, we see that the potential is huge.

“The technology is a

world-first and completely changes the way the farming community will look at BCS. Achieving an accurate score is now extremely simple,” says Mr Mazeris.

“It gives consistent and daily feedback on the condition of a herd without any work on the part of the farmer. That’s valuable information that can benefit the health of the cow and the running

and profitability of the farm.”

From its own studies DeLaval predict that regular scoring and optimising the score could help farmers as follows: ■ Reduce cases of ketosis on farms by half.

■ Reduce the feed cost by trimming down the feed to overweight cows.

■ Increase milk yield from a herd where all

The new technology is based on a 3D camera fixed on a gate.

■

Pluto

■

cows have the optimum body condition. The system can mean an increase of up to 545kg during the first 120 days of lactation.

Reduce the number of open days by bringing the BCS back to an optimum level as soon as possible after calving and so returning the cow to its normal cyclical ovarian activity.

Conception rate can be improved by 50%.

Save the farmer time since the need for

manual BC scoring is gone. The alternative is that it will save the farmer the cost of bringing in feed advisors or vets to do the BC scoring.

■ Eliminates the subjective nature of scoring.

DeLaval is now selling the system in some countries in Europe, North and South America and Asia. By the end of the year the system will be sold globally. www. delaval.com

Ocooch Pluto 4281, GP 82

New Zealand Mahoe Trophy winner now second on BPI list

Ensenada Taboo Planet

3rd Lactation Pluto daughter: Fir-Ridge Pluto Lily, VG 85

IN 2013, Hazael Dauntless Freedom was awarded Holstein-Friesian New Zealand’s Mahoe Trophy at the annual New Zealand Holstein-Friesian Association conference.

Freedom is now also recognised as an elite sire in Australia, currently holding the second position on the BPI list in the August ABV release with a BPI indice of $315.

LIC Australia’s general manager, Cedric Geffen, said it was “extremely pleasing to have such an influential bull in New Zealand, now also recognised in Australia as a bull that will make a difference here”.

“The Mahoe Trophy is a prestigious award that most New Zealand Holstein-Friesian breeders strive for and it’s fantastic that Freedom had been recognised as the best in his breed at that time.

“Freedom was sired by the famous MacFarlanes Dauntless and is again popular with farmers this season, sitting fifth on the NZ Holstein-Friesian RAS list, and second on the Australian BPI list with 315.

“He’s a fully registered Holstein-Friesian, and is well known for producing daughters that are very well-liked by farmers for strong udders, good capacity and phenomenal milking performance.”

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

ABVs // 25

Australian Breeding Values August 2015 GOOD BULLS GUIDE FOR RED BREEDS - Balance Performance Index INDICES Australian proven or international

BPI $

Rank Bull ID

Bull Name

1

Vfoske

V Foske

A

335

2

Skjelvan1039

Skjelvan 11039

I

3

Virkrharvard

R Harvard

4

Vikbuckarby

5

PRODUCTION TRAITS

BPI Rel

ASI Rel

HWI

TWI

ASI

86

243

329

222

96

268

54

195

261

202

I

228

66

174

259

Buckarby

I

224

68

195

GEDBO2263

G Edbo

A

218

80

6

Randersdavid

R David

A

215

7

EIK10540

EIK 10540

I

8

Atosikko

Asmo Tosikko

9

Fastrup

R Fastrup

SURVIVAL

No. Dtrs

No. Herds

158

19

Survival

Rel

CONFORMATION TRAITS

DAUGHTER FERTILITY

WORKABILITY

Over Type

Mam Syst

Type Rel

Milk Spd

Temp

Like

104

108

76

106

106

84

101

104

66

106

36

101

100

45

99

133

72

104

50

104

110

57

227

100

72

109

58

97

101

208

195

97

94

88

11

105

67

96

85

191

209

66

95

139

33

110

78

214

57

266

179

159

67

98

A

201

87

157

205

140

96

176

23

A

201

85

159

204

119

95

134

Rel

Dtr Fert

Rel

CELL COUNT Calving Ease

Rel

Source

88

106

82

117

92

VIK

102

60

105

64

119

75

GAC

100

102

67

101

66

151

83

VIK

61

104

99

72

102

74

122

85

VIK

101

60

111

104

72

99

82

60

92

VIK

99

100

79

101

100

88

104

87

115

91

VIK

36

95

100

48

101

100

70

106

75

110

80

GAC

102

80

98

103

87

99

104

99

89

99

84

145

92

VIK

19

107

76

104

102

82

94

100

100

89

103

85

122

90

VIK

97

66

SEM

98

GOOD BULLS GUIDE FOR JERSEYS - Balance Performance Index 1

0200JE08165

Broadlin Hatman

356

65

251

379

290

78

42

21

104

53

109

111

62

103

105

105

68

2

Raceway

Aberdeen Valerian Sandown-ET

339

80

260

344

222

90

114

44

105

70

107

112

82

104

104

105

84

101

75

88

81

GAC

3

Cairnbone

Cairnbrae Tbone Ensign

326

72

249

392

203

83

61

22

106

59

113

120

69

100

101

102

75

102

64

119

72

ALT

4

CSAmbition

Riverside Ambition

234

74

276

306

197

84

64

26

104

62

104

108

70

104

100

103

79

102

68

92

74

ABS

5

Vipor

Nowell Viper

316

71

268

324

186

81

51

20

106

62

104

112

69

106

103

103

71

101

70

68

71

AGR

6

Elton

Cairnbrae Jaces Elton

314

92

222

332

218

99

3814

428

105

95

108

107

96

104

105

104

99

101

97

121

98

ABS

7

Navarian

Colnarco Navarian

313

74

240

311

221

85

76

34

105

62

105

108

65

101

102

103

80

102

68

122

78

GAC

8

7J1038

All Lynns Louie Valentino

306

73

239

384

174

88

55

19

110

58

114

109

68

103

64

97

77

150

82

GAC

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model in Australia to deliver this with the addition of CRV’s genetics.”

The popularity of larger, North American and European-style Holstein-Friesian cow has limited LIC’s ability to provide genetics to a larger proportion of Australian dairy farmers, Mr McNee said.

“Inclusion of genetics from CRV, combined with our portfolio of grazing genetics, will strengthen our proposition to Australian dairy farmers less focused on grass-based farming systems,” he said.

The extended range of genetics provided by LIC will also be backed by a team of artificial breeding (AB) technicians to inseminate cows.

*gTPI is a servicemark of Holstein Association USA, Inc

ment organisations are collaborating in Australia to provide the country’s dairy farmers with access to a wider range of genetics products.

LIC, which supplies pasture-based dairy genetics from New Zealand, has entered an exclusive distribution agreement with Dutch-based dairy genetics supplier, CRV. As part of the agreement, LIC’s Australian subsidiary business will distribute CRV’s global genetics products to Australian farmers alongside its own genetics offering.

LIC chief executive Wayne McNee says the agreement will strengthen LIC’s proposition in Australia.

“LIC has been supplying Australian dairy farmers with New Zealand genetics for more than 15 years, but the inclusion of genetics from CRV will allow us to cater to a wider range of farmers and grow the business in Australia,” Mr McNee said.

CRV Oceania managing director Angus Haslett said the agreement will provide Australian dairy farmers with a range of genetics solutions while maintaining CRV’s strong reputation in the country.

“We see it as a very positive move for Australia’s dairy farmers who are as much in need of quality genetics at competitive prices as any other country in the world.

LIC has strengthened its distribution

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

26 // ANIMAL HEALTH

Get that colostrum in quick because the clock is ticking THIS MONTH, we focus

on the timing and methods of feeding of colostrum and how this affects the absorption of vital antibodies.

When should we feed colostrum?

The timing of the first feed of colostrum is one of the most important factors affecting the efficiency of absorption of antibodies (mainly “IgG”).

This is due to the phenomenon of ‘gut closure’ where the intestinal cells of the calf lose the ability to absorb IgG, allowing only a small time frame of 24 hours for absorption.

After 24 hours there is minimal absorption and good quality colostrum fed after this time will result in IgG acting locally within

THE VET GROUP GEMMA CHUCK the gut itself.

It is estimated that the decline in absorption is very rapid, resulting in a dramatically reduced absorption even at 12 hours post birth.

On this basis, the author recommends the first two feeds to occur within 12 hours, although some literature will recommend these two feeds

S O U T H

within 24 hours of birth.

Practical ways to achieve this on farm include: ■ Collect calves from the calving area at least twice daily and feed the best possible quality colostrum immediately.

A second feed of the same volume should be fed within 12 hours.

■ On large farms with tight calving patterns, this may seem a daunting task. As a compromise, tube or teat feed stored colostrum in the calving area and record (either visually or in a notebook) that the calf has had one feed of colostrum. A second feed can be given on arrival at the calf shed.

Whilst this increases

■

the risk of exposure of pathogens to calves compared to calves collected twice daily, at least the newborn calf has colostrum on board and is ready for their second feed on arrival at the calf shed.

A recording system should be set up on all farms (small and large) to ensure that all calves receive their two feeds. Calving is a busy time for everybody and a simple system such as whiteboards or spray paint can help ensure that no calf ‘slips

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ANIMAL HEALTH // 27

Milk quality rewarded with bonus payments at Darling Downs GORDON COLLIE

PRIDE IN their

workmanship reflects in the high quality milk the four Zischke brothers put in the vat every day.

Dallas, Adrian, Glen and Melvyn maintain a tidy dairy and a healthy herd of well-bred Friesians and Jerseys at Haden on the north east Darling Downs.

A focus on efficient, low cost production helps maximise their share of milk payments from processor Norco which should peak at just under 65 cents a litre this season, including bonuses totalling 10 cents.

The walls of the family living room are lined with milk quality awards recognising their place within the top 5% of the

The clock is ticking…

FROM PAGE 26

required to avoid FPT depends on the quality of the colostrum.

As a feasible rule of thumb, it is recommended that four litres of good quality colostrum (≥22% Brix) are fed within 12 hours of birth.

This volume can be split over two feeds. If only poor quality colostrum is available (<22% Brix) calves will need a larger volume to avoid FPT. In such instances, it is recommended that two three litre feeds of colostrum are fed within 12 hours of birth.

How do we feed it?

Colostrum can be teat fed or fed by an oesophageal feeder (stomach tube). Teat feeding is considered more natural and the natural suckling action stimulates closure of the oesophageal groove reflex. This reflex allows colostrum to bypass the forestomaches (the rumen, reticulum and omasum) and flow directly into the abomasum. The abomasum is considered a “simple stomach” with an acidic pH, much like that of a human being.

This acidic environment allows the colostrum to form a curd before passing into the small intestine for absorption.

Teat feeding can be time consuming, is sometimes frustrating and there is often wastage of colostrum.

Tube feeding can be

quicker and a known volume is fed. However, the oesophageal groove reflex is not stimulated.

As a result, colostrum is deposited into the forestomaches and not directly into the abomasum. If only small volumes (~1.5L) are fed by tube, there is a timedelay before colostrum flows into the abomasum and subsequently the small intestines.

As the antibodies in colostrum can only be absorbed for up to 24 hours, this time delay can increase the risk of FPT. The good news is that when colostrum is fed in larger volumes (2.5–3L), there is rapid passage of colostrum from the forestomaches to the abomasum.

Research has shown that there is no difference in absorption of antibodies between calves tube or teat fed three litres of colostrum.

Whichever method is used to feed colostrum it is important that enough is fed in relation to the quality that is available and this should be fed as soon as possible after birth.

Colostrum quality can be difficult to influence and there is also a limit to the quantity that can be fed to a calf.

The timing of the first feeding is the factor over which we have the most control and this should be the keystone to every colostrum management system.

Australian industry every year since 2007. Theirs was the only Queensland herd in the national top 100 in 2014.

They are pleased with the results of using Maspray teat spray treatment in the bails.

Cows at drying off are routinely treated with Noroclox dry cow injection to aid in the prevention of mastitis.

In the last eight months they have also invested in a DeLaval cell counter to measure the cell count of individual cows from milk samples in the dairy. This allows them to quickly pick up on any emerging health issues.

Dallas Zischke said the cell count of their 120 milkers averaged a low 72,000 last year and this year was running at just

62,000.

Management is a key to herd health with cows having year-round access to natural pastures of couch, kikuyu, Rhodes grass and green panic and supplementary hay as required.

The brothers switched processors to Norco in July last year with the cooperative happy to

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28 // ANIMAL HEALTH Dallas, Melvin, Glen and Adrian Zischke on their Darling Downs property.

Milk quality rewarded with bonus payments FROM PAGE 27

take all the quality milk they can produce.

Maintaining a herd comprising two third Friesians and one third Jerseys provides a good balance to maximise component bonuses.

Butterfat has averaged 4.3% and protein 3.39% over the past year. May herd average has risen to 4.7 butterfat and 3.55 protein.

Dallas said milk production varied between 20 and 26 litres

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The 260ha home property with rolling hills near the top of the Great Dividing Range was purchased by parents Ron and Lorna 40 years ago. The enterprise, now trading as Zischke Farming with the four brothers in partnership, began in July 2005.

About 115ha of the property is suitable for cultivation with oats grown for winter feeding and crops of dolichos lab lab and super sweet Sudan for summer grazing.

Another block of land at Acland, almost 30km away, gives them an additional 130ha, of which 100ha can be cropped. This property is used to grow hay and grain and carries replacement heifers.

Crops of red panicum and panorama millet provide a cut of hay and grazing during the summer months with mainly barley for hay and some oats for grazing planted in the autumn.

“We have made some round bale silage, but prefer to focus on hay production. We’ve got a couple of big sheds that can hold about 1100 round 5 by 4 bales and we like to keep them well stocked all year round,” Dallas said.

Milkers are fed 18% protein wheat and

WHO:

Zischke brothers WHERE:

Haden WHAT:

Milk quality

barley based pellets in the 14-a-side swingover herringbone dairy, with fresh cows getting 6kg a day and the rest of the herd about 4kg each.

The herd calves all year round with controlled natural mating using two Friesian and one Jersey bull. All heifers are mated to a Jersey bull for ease of calving.

They raise 30 to 40 heifers a year for continuous herd improvement through selection pressure.

With no irrigation, performance is dependent on seasonal conditions. In a good year the property can receive 1000 mm of rain, with the average around 750 mm. Conservative stocking rates help them cope with the natural variation.

“We were pleased to pick up more than 150 mm in May which set us up for a good winter season,” Dallas said.

Adrian and Melvin Zischke in a crop of Drover oats.

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

SPRING PASTURE // 29

Italian ryegrass delivers surge in production

South Gippsland farmer Matt Loader with the Surge ryegrass.

The farm only plants ryegrass, predominantly perennials but has been venturing into a few more Italians.

WHEN MATT Loader started “Ryegrass is good quality feed doing second cuts for silage he and has good bulk,” Mr Loader said. knew he was onto something good.

The Loaders work on a Four years ago he started using philosophy of buying as little feed Surge - a high yielding diploid as possible.

Italian ryegrass - on out blocks “The cheapest feed is the stuff and parts of his main milking area WHO: that you can grow,” Mr Loader at Krowera in south Gippsland to Matt Loader said.

“We’ve acquired the out blocks improve the quality of the silage.

WHERE: mainly for raising young stock and “Since then I’ve done a second Krowera being able to grow extra fodder so cut every year for the last four years WHAT: we don’t have to buy feed.” on the out blocks,” Mr Loader said.

Surge ryegrass He says the current season is “The quality is always good. looking good.

It just grows, even on one of my “It’s not bad at the moment,” Mr “It’s been good. I buy it every blocks that’s quite steep. I’ve put it on all the ridge paddocks and even year and would recommend it to Loader said.

“Winter has been very kind; the in a hot summer it still keeps on anyone.”

Mr Loader and his partner rain we’ve been getting is very good. growing.”

The success rate continues to get Meagan are milking 300 Holstein We’ll just have to wait and see what Friesians on the 114ha farm where happens in spring and summer.” better.

He’s not too worried though.

“Last year I cut it three times, they share farm with Meagan’s “It’s a lot easier to feed cattle in that was the first time I’ve done parents. The farm also has out summer than it is to feed that. It was a fairly kind them in a wet winter. I’d summer but that was still a “The farm is quite steep. rather an El Nino than it good result,” he said. “I don’t being too wet.” know the percentages but On a few of the flatter Mr Loader believes we’ve certainly had better paddocks I have it there the keys to growing good production with the Surge.” mainly for silage. I can get a are management The Loaders concentrate couple of cuts of silage off it.” pasture and fertiliser. “We do an the Surge on the out blocks annual dump of 500kg but put a bit throughout the blocks for young stock, some of per hectare followed up by urea milking area.

“The farm is quite steep. On a which is on steep terrain and some when required and then a threein-one 50% cent urea booster over few of the flatter paddocks I have it on river flats.

The cows produce around 9000- the spring period, and followed in there mainly for silage. I can get a summer with urea when there’s 10,000 litres a year. couple of cuts of silage off it.”

“We’re limited by the seasons moisture available.”

Adam Fisher from Notman Seeds He said the formula is working recommended the farm use Surge and I guess you always want more, and Mr Loader has been happy with but we’re pretty happy with that,” and they plan the same routine again this year. he said. the tip.

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

30 // SPRING PASTURE

Research to beat the heat

Southern Australian dairy farming systems are particularly vulnerable to heat waves due to perennial ryegrass making up 60-70% of the dairy cow’s diet.

INFRARED HEATERS will be used to simu-

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candidate Adam Langworthy to find ways for pasture species to beat the heat over the hot Australian summer.

Mr Langworthy has received funding from CSIRO and Dairy Australia to do the research and the trial plot of two hectares is one of the biggest ever undertaken by a PhD student at TIA. “Heat waves in Australia can have damaging effects on perennial ryegrass, including production losses and, in some cases, grass death. This is a big problem, as perennial ryegrass is what most dairy farmers throughout South Eastern Australia use,” Mr Langworthy said.

“Southern Australian dairy farming systems are particularly vulnerable due to perennial ryegrass making up 60-70% of the dairy cow’s diet.

“When I visited Victoria at the end of my undergraduate degree I saw first-hand the damaging effects heat waves can have on dairy farms and this really motivated me to focus my research in this area.”

The trial is quite novel and will involve two experiments.

“We will test different levels of heating and irrigation on these plants over the summer months to see how they can tolerate the heat and to see if irrigation can be used as a tool to help mitigate the effects of heat,” Mr Langworthy said.

“For this experiment I am building outdoor heating systems that will simulate the high temperatures associated with heat waves, with irrigation being applied at different frequencies.

“The frequencies will

be chosen to represent what would be possible with the different types of irrigation that are widely used on dairy farms.”

The heaters have been adapted from a system in the USA and will increase the temperature of the soil underneath the pastures by 8°C, turning a 30°C day into 38°C on the site.

The heaters being used on the paddock will be equivalent to running 18 standard 1000kw electric heaters and will use so much power that the trial has to been run in stages.

“We will have three heating rings, each with six 1000 watt heaters inside, so it will draw a reasonable amount of power,” Mr Langworthy said.

“The second experiment will look at how we can manage both grazing and irrigation over summer to maximise the survival and growth of not only perennial ryegrass, but other species that I have identified from the first phase of my project to be tolerant to hot conditions.”

The trial is set to run from December to the end of February.

Mr Langworthy’s research exploring the impacts of climate change on pasture varieties was recently recognised nationally with the Dairy Research Foundation’s 2015 Emerging Scientists Award.

He will be presenting on the first stage of his project at the upcoming Australian Agronomy Conference that is being hosted by TIA in Hobart from September 20-24, 2015.

TIA is a joint venture between the University of Tasmania and the Tasmanian Government.

Dairy NewS AUSTRALIA september 2015

spring pasture // 31

Planning takes heat out of spring PATRICK BLOYE

DRIER WINTERS in some areas can be a big advantage, but they can also leave you feeling nervous coming into spring.

Planning is an essential component of dairy farming and in testing conditions it becomes even more obvious.

So what can you plan for and execute, to help reduce the risk of running short of forage?

To get the best value from pasture, it is necessary to follow grazing management guidelines. By ensuring no over-grazing through winter, pasture growth will “take off ” earlier coming into spring.

Strategically applying nitrogen fertiliser during late winter and into spring can boost pasture production significantly, offering a good economic response.

As a true pasture surplus begins to appear, conserve it as silage. The ability to get machinery onto paddocks earlier in the season provides an opportunity to conserve higher quality silage.

Despite lower yields per harvest, pasture regrowth and density from these earlier cut paddocks will be far greater, providing an opportunity for a second high quality cut or grazing. Furthermore, you have locked away a good quality feed source for the summer (or winter) ahead.

To utilise limited soil moisture and effluent more efficiently than a tired, permanent pasture, consider sowing a summer crop(s). Decide on the most appropriate crop for your situation, and consider using a range of maturity-stage

crops to help offset the risk of rainfall variability.

Identify your poorer performing paddocks and aim to get the crop in as early as possible.

Don’t be afraid to forego some surplus spring pasture if it means the crop can get an early start.

Deep tap-rooted crops such as chicory and plantain will have the ability to access deep soil moisture, but will often take longer to become established than other species, making it even more important to get them sown early.

If sowing a brassica, early maturing varieties will be less vulnerable to an early spring cut-off.

Closely monitor soil temperature.

Once the soil reaches the minimum critical temperature for germination of that particular seed, get in and sow.

For a “true” soil temperature, measure at 9am at a depth of 10cm over a four day period.

A weed-free seed bed with adequate moisture and seed-soil contact is vital for a good strike of the newly sown crop.

Limit competition by ensuring a good kill of existing pasture/weeds.

Sowing seed with Di-ammonium Phosphate (DAP) up to 120 kg/ha will give the seed every opportunity to germinate quickly and strongly, developing a sturdy root system and thus delaying the onset of moisture stress.

If you know you will ultimately have to buy in feeds, speak with your supplier now and aim to lock in feed at a sustainable price.

• Patrick Bloye works at the Department of Economic Development. Email patrick.bloye@ecodev.vic.gov.au.

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Pro pasture meter is a single-handed electronic dry matter capacitance meter in the shape of a lightweight pasture wand.

The Grass MasterPro records the dry matter (DM) in kg/ha for up to 200 paddocks. It does this using the capacitance method. A low voltage electric field spreads out from the probe into the grass or growing material nearby within a 20cm radius.

Changes in this field are related to the water mass (and therefore the dry matter) of the plant material intercepting this field.

The meter automatically takes a reading once it has sensed the wand has probed the base of the

pasture, and by means of a calibration equation, then calculates the amount of dry matter on a dry matter per ha basis for each probe. It then averages the values for each paddock area being measured in kg/DM/ha.

The GrassMaster Pro allows users to quickly assess machine readings against visual assessments. Users can then automatically recalibrate the machine.

Grazetech developer Roger Martyn said this addresses a problem that afflicts all means of pasture measurement, where seasonal changes in pasture morphology and dry matter content require an ongoing recalibration of the instrument.

“Often this simply does not happen, due to

lack of knowledge of what equation to use, or the need to do a cut weigh and dry (CWD) which can be overly time intensive and complicated. This can result in two-fold variances between device readings and actual kg dry matter per hectare content.

“Visual assessment by experienced pasture managers has consistently been demonstrated to be as accurate as CWD assessment. This is what the GrassMaster Pro can leverage.

“For example, an experienced pasture manager can quickly visually calibrate the GrassMaster Pro and then have a less experienced staff member measure the farm, confident the day’s

data has integrity.”

Mr Martyn said a quick CWD can be carried out and the day’s data be retrospectively modified after download, for extreme accuracy.

The GrassMaster Pro now incorporates ‘accelerometer’ measurement triggering technology, making it suitable for fast ‘on the quad’ pasture probing, a real boon for large farm situations.

Each GrassMaster Pro includes downloading and record keeping software. Also bundled is a comprehensive 300 page book on pasture forecast feed budgeting, plus a suite of simple spreadsheets for all aspects of forecast feed budgeting. Visit www.grazetech.com.au

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DAIRY NEWS AUSTRALIA SEPTEMBER 2015

32 // MACHINERY & PRODUCTS

Research pays off for c MUCH RESEARCH

went into the purchase of a manure spreader for Alexander Contracting Services based at Heathmere, near Heywood in Victoria’s Western District.

Simon Alexander runs the business in conjunction with Geoff Guy. He has been contracting in agriculture for about 10 years and thinking about a manure spreader for about that long, searching mainly on the internet.

Mr Guy explains the decision to upgrade to a machine like this: “We have a major customer just north of us at Digby producing their own compost of about 10,000 tonnes a year which needs to be spread on the paddocks.

So we wanted a machine that could handle that and be available for other customers.”

They have had their

WORKING CLOTHES CHRIS DINGLE Kay Two Bio 1400 manure spreader for about 12 months. The machines are distributed here by Mike Sergeant of Axon Machinery in Sydney.

“We did a power of research and went to New Zealand twice following blokes around who had spreaders,” said Mr Alexander. “We actually went off belt spreaders as compost needs to be more accurate than muck. This machine has a chain floor – the same as our silage wagons”.

Four 14mm marine floor chains, with

80-tonne pulling strain, allow the close spaced slats on the K Two to positively move the load to the spreading system. The hydraulic floor is controlled by the on-board computer.

The manufacturer, K-Two Sales, is based in Buckinghamshire in England and this model has twin horizontal beaters and two spinning discs.

With its hungry boards fitted it has a capacity of 22-23 cubic metres and handles 14 tonne.

“The compost is usually spread at about one tonne to the hectare which takes five to 10 minutes.

We can get 10 tonne of compost into the spreader when it’s wet,” said Mr Alexander.

Two horizontal beaters shred material prior to being evenly distributed up to 24m by a pair of high speed spinning discs.

Geoff Guy in front of the KTwo Bio1400 manure spreader.

Weigh cells were also part of the package.

A guillotine slurry door and height indicator were options fitted to the machine. A sprung drawbar, slip clutch and wide

angle PTO shaft make the contracting tasks more efficient.

Round bale hay, pit silage and seeding forms most of their contracting work. For silage they travel

about 100-150km from the home base, going as far as Wando to the north and Warrnambool, to the east.

At the time of our visit in mid-August they had just finished sowing and

composting; mixing the compost and forming it into rows. The spreader is usually operated with a New Holland T770 with a GPS receiver. It is loaded using a 185hp New Hol-

50 Bail Rotary Dairy Complex INCLUSIONS •50 Bail RotorExp1 Platform •LARSEN Original Design •Pneumatic Retention Bars •21m x 26m Shed •Technical Drawings and Comps •6m x 4m Skillion - for Vac Pumps •Shed and Yard Concrete •500 Cow Holding Yard & Rails •16m Solid Backing Gate •Feed System with 2 x Feed Heads •Yard Blaster with 3 x Hydrants •3 Way Drafting Gate •Internal Office (Freezer Panel Room) •Milking Machine •Pneumatic Cup Remover •ID, Feeding and Drafting •Internal Electrical •Internal Plumbing

EXCLUSIONS •Earthworks •Electricity Supply to Site •Water Supply to Site •Water Storage •Effluent System •Tanker Tracks •Cow Laneways •Milk Storage Tank •Freight (At Cost)

$ 892,000 Installed

AVAILABLE IN AN SIZE AT WITH REVISED BAIL PRICE. Price is Ex Gst (Conditions Apply)

Ph.

CONTACT

(03) 9768 2424 - Fax (03) 9768 2323 - Greg Kinross 0437 357 912 sales@milka-ware.com.au

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

MACHINERY & PRODUCTS // 33

r compost land W130 loader which is just over a year old and has done 1000 hours. It has a grass spreader on the front and is also used as a roll tractor on the silage pits.

“Although it is basically a muck spreader, we use it now more to spread compost and lime than manure,” said Mr Guy. “It is simple to use once you have it set up right; it is really only the rate and width that we need to change – the machine compensates for the type of material. We dial the rate into the monitor and the machine senses the ground speed to vary the amount of material output. It is very accu-

rate and gives a very even spread. I don’t reckon that you would get any more accurate than this, and it goes down to 300 -400 kg/ha. Not many other machines could do that.

“We needed to be super accurate, we love the machine.”

During autumn the machine was out every week and Mr Guy said the spreading side of their contracting business is still in its infancy.

“We didn’t want to push too hard this year until we got our heads around how it would all operate. We’ll crank it up for next year.

“The machine is so

complicated and automated it is very technical and took a fair bit of figuring out, but once you get your head around it, it works brilliantly. The blokes from the UK came out to talk to us about getting it going.”

The manure spreader and the New Holland W130 loader which does the work of loading the compost or manure into the KTwo.

More features.

Less expense.

Simon Alexander and Geoff Guy at left with their machines.

Less dead-time CENTRE PIVOT mowers have a loyal following of customers who want to achieve high daily outputs and eliminate ‘dead time’ on headlands when mowing in lands.

The ability to mow on either side of the tractor cuts headland traveling time by as much as 15%, reduces the risk of soil contamination and swath disturbance and lessens soil compaction.

Two new machines from Kuhn, the 3.1m FC 3160 TCD and the 3.5m FC3560 TCD, use the company’s Gyrodine swivel hitch system to transmit PTO power from the tractor, while ensuring the shaft stays straight, improving reliability and reducing maintenance.

Available with either 540 or 1000rpm input speeds, the unit also allows the tractor to make high speed turns under full power on headlands and get back into work quickly.

The FC series uses the Kuhn Optidisc cutterbar with Fast-Fit knives, which combines with an adjustable suspension system and the headstock to promote excellent ground following characteristics. The mowers’ large diameter wheels optimise stability – particularly on hillsides.

The conditioner comes as a 560mm diameter unit fitted with free swinging steel tines, or a 240mm diameter roller unit for delicate crops, both offering high throughput with a choice of 780 or 1000 rpm speeds.

5E New cab and

transmission options

6D 4 new

transmission options

It all adds up when you purchase a new 6D Series or 5 Series Utility Tractor between now and 31 October. Our low finance rate of 1.49%* p.a. combined with some exciting new features, means you get more bang for your buck.

Drop by your local John Deere dealer today to find out more about the new features on 6D Series and 5E Series Utility Tractors.

Nothing Runs Like a Deere™

*Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Valid on select new John Deere 5 Series Utility Tractors, 6D Series Utility Tractors and their compatible loaders. Limited stock available. Valid on eligible equipment delivered no later than 31 October 2015. Offer is based on 20% deposit, GST returned after settlement and 36 month term. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 31 October 2015.

Available at participating dealers only. Images used are for illustrative purposes only and may show features or attachments not available from all dealers.

JohnDeere.com.au

DAIRY NEWS AUSTRALIA SEPTEMBER 2015

34 // MACHINERY & PRODUCTS

Valtra T designed and built for the operator MARK DANIEL

THE FOURTH generation of the Valtra T series offers models of 155250hp with up to 1000Nm torque – lots of power to take on demanding tasks.

They come in two transmission variants: Versu and Direct.

The Versu models have the AutoTraction automatic clutch function for its powershift transmission which allows shifts automatically by monitoring travel speeds, unlike competitor systems that look at engine speed.

Additional features such as hillhold and hydraulic assistant, aid the driver during transport and frontloader operation. The powershift operates with five steps in four gear ranges, plus 10 speeds in the creeper ranges, giving a total of 30 forward and 30 reverse speeds.

The Direct transmission, built

in-house by Valtra, offers three driving modes. The default mode is pedal (automatic): the driver sets the target speed with the drive pedal. In lever mode (automatic) the driver sets the target speed by the drive lever. In manual mode the driver can separately set the engine revs and manage the driving speed independently with the drive lever.

T series models are powered by AGCO Power engines displacing 6.6 or 7.4L. Exhaust emissions are minimised by a Tier 4 Final, SCR system. Torque is excellent, even at low revs. The SCR system and optimised turbo and engine package results in excellent fuel efficiency and eliminates the need for an exhaust gas recirculation system or diesel particulate filter.

The T174 model comes standard with Valtra’s EcoPower feature. When the driver presses the Eco button the nominal engine speed drops to 1800rpm and torque increases. This reduces

fuel consumption by 10%, lowers the noise level and extends engine life.

In addition, the Sigma Power feature, standard on all models, increases engine output by 15hp when the PTO is under sufficient load.

The transport boost function in turn provides an extra 15hp in the C and D ranges.

The most striking feature of the fourth generation T Series is its new cab – stylish, spacious and quiet. Pillars that curve outwards maximise interior space for the driver and keep the external dimensions compact. The cab is now 20cm wider by the driver’s seat than the previous generation, for plenty of room.

Electrically heated front and rear screens, a front windscreen wiper sweeping 270 degrees, factory-fitted parking cameras, LED working and rear lights, and 6m2 of glass offer unsurpassed visibility if optioned.

The optional roof window helps when operating a front loader.

Valtra T series tractors come with extra power.

The ultimate disc seeder for pasture renovation NARROW SPACING | SIMPLE | ACCURATE | VERSATILE | ROBUST Super long life needle roller bearings in head stock - removes any movement like competitor units causing inaccurate row spacing.

Large 20” x 6mm disc. It will last longer and penetrate better.

Reduced hair pinning.

Fast and easy to adjust seed depth in 1/2” increments.

NO TOOLS REQUIRED.

Hard Vee or semi pneumatic press wheel.

Improved bearing for longer life.

Guarantees perfect seed to soil contact.

BUCO depth gauge wheel.

Superior wear, made stronger.

Mounted on a spoked rim for self cleaning in muddy conditions.

Optional individual placement of small seeds from pasture box

MARK DANIEL Cast closing wheel with new sealed bearing on arm.

Gives longer lifetime and less downtime.

Finishes the job to give a perfect finish.

Optional Gason 1230-3200Lt variable rate 2 bin mounted air box

SIZES RANGING FROM 5M-7M AND A TRANPORT WIDTH OF 3M ROW SPACING FROM 165MM (6 1/2”)

1300 737 586

www.serafinmachinery.com.au

Mowers save time CENTRE PIVOT mowers have a loyal following of farmers who want to achieve high daily outputs and eliminate ‘dead’ time on headlands when mowing in lands.

Mowing on either side of the tractor cuts headland travelling time by as much as 15%, reduces risk of soil contamination and swath disturbance, and lessens soil compaction.

Two new machines from Kuhn, the 3.1m FC 3160 TCD and the 3.5m FC3560 TCD, use the company’s Gyrodine swivel hitch system to transmit PTO power from the tractor, while ensuring the shaft

stays straight, promoting reliability and reduced maintenance.

Available with 540 or 1000rpm input speeds, the unit also allows the tractor to make high speed turns under full power on headlands and get back into work quickly.

The FC series uses the Kuhn Optidisc cutterbar with Fast-Fit knives, combining adjustable suspension and the above headstock to give excellent ground following characteristics. Large diameter wheels ensure stability, particularly on hillsides.

The unit also has an articulated hood which can be set for windrow formation or wide spreading, for greater adaptability. www.kuhn.co.nz

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EasyCut Linkage Mower

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EC Trailed

HURRY, THIS OFFER CUTS OUT 31 DECEMBER 2015.

Offer is only available for ABN holders who are using the equipment predominantly for business purposes. 0% p.a finance interest rate, a minimum 10% deposit, over 12 months with monthly or quarterly repayments, minimum financed amount of $4,000 and no lump sum final payment. Credit approved by Kubota Tractor Australia Pty Ltd ABN 72005300621, Australian Credit Licence Number 442007. Terms, conditions, fees, charges and credit criteria apply. The offer expires on the basis delivery is made on, or before, 31/12/2015.

For more information on this offer and the Krone range, go to kroneaustralia.com.au

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