Dairy News Australia April 2017

Basin study a win for dairy PAGE 6-7 MIXED MESSAGES WA seeks certainty PAGE 8

HARD WORKING MULES

Kawasaki has real kick PAGE 26

APRIL, 2017 ISSUE 79 // www.dairynewsaustralia.com.au

DEBBIE WREAKS HAVOC Fencing, fodder crop brunt of damage . PAGES 4-5

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DAIRY NEWS AUSTRALIA APRIL 2017

NEWS // 3

MG appoints nonsupplier as Chair MG said he “oversaw the sucGOULBURN has from 2010.

Since 2007, he has been a Non- cessful restructuring and return to appointed a non-supplier in John Spark as Chairman of the co-op, Executive Director and Chair of the profitability of many large Australess than a month after flagging the Audit and Risk Committee at gold lian companies” during this time.

In the letter, Mr Tracy acknowlidea in its half-year financial report. mining company, Newcrest Mining edged the difficulty the cooperaMr Spark took the reigns on April Limited. tive’s suppliers have faced 1, following Chairman Philip following a reduction in the Tracy’s retirement from the farmgate milk price during Chairmanship and Board on “You had two players 2016.

March 31. that elected to cut their Bega Cheese ExecuMr Spark joined the MG price and you had the rest tive Chairman, Barry Irvin, Board as a Special Director on fundamentally decide not and new Fonterra Australia March 24.

Managing Director, Rene In a letter to suppliers, to.” – Barry Irvin Dedoncker, both criticised the co-op said: “Following an Murray Goulburn’s role in extensive search the Board He has also served on the Boards last year’s price crash when they unanimously agreed that John was the best person to assume the of ANL, Baxter Group Ltd and spoke at The Australian Food Forum last month.

Chairmanship and all the directors MacArthur Coal Ltd. “Murray Goulburn had a choice From 1989 to 2004, Mr Spark are looking forward to him joining was a partner at financial advising to make. They priced on aspiration the Board.”

Mr Spark was previously a Direc- and restructuring company, Ferrier and that was not sustainable,” Mr tor of Ridley Corporation from 2008 Hodgson, and was Managing Part- Dedoncker said.

Fonterra has been criticised for until 2015 and served as Chairman ner from 1998.

MURRAY

Parmalat stalemate continues. PG.09

Investment in Tasmania. PG.10

Tree plantings reduce mastitis. PG.16-17 COVER IMAGE: JOHN WEIR

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following Murray Goulburn’s lead and then slashing milk prices as soon as its major competitor did.

Mr Dedoncker said: “We were hitched to a wagon that was out of control.

“We lost hundreds of millions of dollars and it was a tough two years.”

Mr Irvin said the entire situation was avoidable.

“Not everybody did it. You had two players that elected to cut their price and you had the rest fundamentally decide not to.

“The impact on the farmers was going to be greater than the impact on the business, so we didn’t do it.

“It was disappointing that we came to that. For a great many years the market has been reflected in milk prices and for a couple of years it wasn’t. We’ve not yet got back to a more sensible place.”

Every man, woman and their dog seemed to turn up at three Tactics Farm Days days held at Labertouche, Fish Creek and Denison last month.

“These days are about using autumn as a launch pad for the coming season as well as consolidating the better spring and summer that most farms have enjoyed this year,” GippsDairy’s Karen Romano said.

“There’s a positivity around the industry which is more about farmers wanting to control the things they can control,” she said.

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DAIRY NEWS AUSTRALIA APRIL 2017

4 // NEWS

Fencing, fodder cop brunt of Cyclone Debbie RICK BAYNE

DAIRY FARMERS across New South Wales and Queensland are counting the cost of some of the worst floods on record and industry bodies want to make sure they’re not forgotten in relief efforts.

Significant losses of fencing and laneways and long-term damage to silage and crops have left many farmers reeling with predictions that some in the industry will struggle to rebound.

Although most farmers were able to move their cows to safe ground, small numbers of stock were lost. In one case a farmer’s dairy shed was totally submerged and the farm lost three milkings.

The biggest immediate impact has been on infrastructure, particularly fencing, while the loss of crops and silage will be a longer-term issue.

About 45 dairy farmers experienced severe damage in northern NSW, along with about 15 in Queensland, mostly in the south-east corner.

Full details of the cost of the flood will emerge in coming weeks and the data will be used to seek government funding support.

Processors resumed collection within days of the flood and while some milk was dumped the amount was lower than initially feared.

Now farmers want to make sure relief and recovery work is not just focused on town centres.

In NSW the damage was mostly

centred on Lismore and Murwillumbah.

Dairy Connect CEO Shaughn Morgan said one farmer lost a large number of his heifers and another had been forced to miss three milkings because of the floods.

“It’s been a horrific time for some of the farmers,” he said. “But dairy farmers are a very resilient lot. We’ve been through this sort of thing before and will go through it again.”

Dairy Connect has been involved in teleconferences with government departments, Dairy Australia and processors to ensure fodder is available for farms in flood-affected areas and for quick infrastructure repairs.

Mr Morgan said farmers were most concerned about immediate animal

welfare issues. It is hoped some of the 300 volunteer firefighters in the NSW flood area will be able to help farmers to quickly restore their fencing.

The region has been declared a disaster area but at this stage categories are not allocated so it is unsure what type of government support will be available for farmers.

Mr Morgan said it was too early to predict the long-term impact on the state’s industry. “It all depends on what the next few weeks show in respect to the infrastructure damage and amount of money required for farms to get back up and running,” he said.

Queensland farms had prepared in advance of Cyclone Debbie and were able to alleviate most of the problems such as milk collection immediately

after it hit.

While the cyclone was most destructive in northern Queensland, dairy farmers in the tropical north were not necessarily the worst affected.

Queensland Dairyfarmers’ Organisation President Brian Tessmann said the main areas of concern were around Rockhampton, the south-eastern corner of the Darling Downs around Beaudesert and the south-east corner of the state around Logan.

Mr Tessmann said that overall the flood wasn’t as devastating as others in recent years. “For a few it’s as bad as 2011 or 2013 but overall the event as far as the dairy industry is concerned it isn’t as bad as those years,” he said.

“Sadly for those farmers right in the firing line it’s been devastating.”

Worst floods in memory PAUL WEIR has seen some bad floods in his time, but none match the latest inundation on his Lismore farm in New South Wales.

“I’ve been here 24 years and this was uncharted waters for me,” he said. “On Friday morning when I got up and looked out it was like I didn’t own a blade of grass.”

At its worst the water was about 40cm deep through his house and it had engulfed everything expect the dairy shed, the highest part of a feedpad and one of his machinery sheds.

Paul farms in a floodplain area on the Leycster River just out of Lismore but on a relatively high site. He had

Paul Weir’s Lismore farm followng the aftermath of Cyclone Debbie. IMAGE: PAUL WEIR

seen the flood coming and had done what he could to prepare but there was nothing he could do to save his fences, his laneways and his silage.

“We’ve had big floods

but this was the worst we’ve ever had,” he said.

“All my interior fences are down or washed away and lost. It’s full of rubble.”

Fearing the worst the day before, Paul and his

three staff had moved the cows and machinery to the highest spots on the farm.

“The top of the headwaters had a massive amount of rain; 700mm-

plus in 24 hours and that all had to come past which told me it was going to be a big flood,” Paul said.

“Everything I had control of, the losses are

absolutely minimal. We lost one $300 motor that wasn’t lifted; the rest is flood beyond my control.

You can shift the cattle and machinery but you can’t shift all the fences.

That’s a heartbreaker.”

Paul doesn’t have flood insurance because it’s too costly and fears his general insurance premiums will rise as a result of the latest devastation.

He estimates repairing the damage and restoring the farm to its pre-flood condition at $70,000.

“The biggest loss will be 500 tonne of silage that was ready to come off two weeks ago but we couldn’t because of the previous rain. I’ll have to buy more feed and everyone will push up the prices.”

Paul and his staff are

now exhausted and frustrated.

“We haven’t stopped; we’re just exhausted physically and mentally,” Paul said. “We’ve worked endlessly to repair fences to get cows back into hay paddocks. Every day you’re fencing where you want to put the cows to give them fresh grass.”

He’s had some outside help from friends in town but says government calls and offers of help aren’t easing his burden.

“The government rang to say they’re here to help but they want to collect data. I understand that but unless they can come out here and fix my fence or give me money to get back to where we were they’re just pretending.”

– Rick Bayne

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DAIRY NEWS AUSTRALIA APRIL 2017

NEWS // 5

Farmers quick to receive support THE CYCLONE Debbie Industry

Committee for Australian Dairy Farmers has been established, chaired by NSW farmer Terry Toohey.

“Your heart goes out for the guys badly affected,” he said. “Some farms were 90% under water; that takes a long time to recover from.”

Mr Toohey said animal welfare issues were the highest priority.

“Farmers have done very well under the circumstances to lose very minimal numbers of cattle.

When you see whole farms going under they still manage to get help from neighbours or find a little bit of hill.”

He knew of one farmer whose neighbour took all the calves from a shed in a truck in a successful lastditch bid to save them.

Under a template developed for

emergency situations, all farmers in flood-affected areas were rung within the first 24-48 hours.

“We need to know if they’ve got no power, no communication and they’re hanging from the rooftop of the dairy trying to survive because there’s floodwater through the house,” Mr Toohey said.

“We talk to each farmer to make sure they’re all right and to get a snapshot of the extent of the problem.”

Mr Toohey said that after getting their stock to solid ground and resuming milking, the most immediate problem in the aftermath of the flood was fencing.

“Fencing has been the biggest issue and we will look at trying to use rural fire brigade volunteers to help farmers get fences up as soon as possible,” he said.

Feed will continue to be impacted over coming months.

“It’s going to be a nightmare for farmers and contractors trying to salvage silage,” Mr Toohey said.

“With the mud and debris quite a bit won’t be salvageable.”

The committee is planning counselling services to help farmers with mental and physical emotions, and data collection to inform government of the true value of the damage.

It is encouraging all farmers to report any damage and will talk to farmers and help them to plan recovery over the next three to six months.

Processors had been helping by contacting farmers and collecting irrespective of contracts, Mr Toohey said.

Back to basics DEB ALLARD

CYCLONE DEBBIE hit our little village

of Burringbar with a vengeance. Our cows were stranded over the raging flooded creek and missed two milkings before we could walk them to the dairy.

450mm fell and we hand milked our beautiful cows for two days.

It was heart breaking hearing them bellow as they tried to cross the flooded creek. I slept with a pillow over my head to block out their sadness, the wind and the rain.

We had some amazing people join us in the pit. No power for two days meant the

milk went down the drain but we did it.

This photo is the end of the second day after five straight hours of stripping the girls right out. My mum is only 4ft 8inchs so couldn’t reach the udders.

She became tea lady and had some freshly squeezed milk in a jug.

The power came on three hours after this photo and Jim could finally hose the mess away. When I heard the machine start up this morning I cried. We have been so very lucky. Some dairies in the area had water up to their roof. We had no structural damage at all.

• Deb and Jim Allard milk a small herd of Jerseys on their Burringbar, via Brunswick Heads, farm, for their cheese business, Cheeses Loves You.

T R O P E R L A I EC

SP

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DAIRY NEWS AUSTRALIA APRIL 2017

6 // NEWS

Basin study a win for dairy RICK BAYNE

¡THE DAIRY industry has welcomed

a new socio-economic study on the impact of removing a further 450 gigalitres of water from the Murray-Darling Basin.

Australian Dairy Industry Council Water Taskforce chair, Daryl Hoey, said although the report will only confirm removal of water will have a negative effect on rural communities, it allows the states more time to continue to try and find solutions.

Mr Hoey attended the Murray Darling Basin Ministerial Council meeting in Mildura last month, where agreement was reached for the assessment of socio-economic impacts of the MDB plan in the southern Basin.

Under the original MDB agreement, an additional 450 gigalitres of water for the environment (above the set target of 2750GL) would be required if it could be delivered with neutral or improved socio-economic outcomes.

The threat of a further 450gl being recovered from irrigators for the environment by 2024 on top of the existing recovery target is a major concern

The Murray River at Mildura last month when the Murray Darling Ministerial Council met.

up prices and damage rural communities. I’m not expecting another report to be any different.

“There’s a direct correlation between the water that’s taken and the loss of production in the region. That’s consistent across the whole basin.”

Mr Hoey said there will be serious implications for the dairy industry if any more water is removed from the collective pool without first understanding the impact it will have to every district including South Austra-

for the industry.

Mr Hoey has no doubt this new study will show exactly the same as previous studies – a loss of production and agricultural jobs.

“We now have to wait for that report but it allows all the states to continue trying to find solutions,” he said.

“All the reports done so far, whether it’s the Goulburn Valley Leadership report or the Victorian Socio Economic Study, have indicated the same thing; that removing water will drive

• • • • • •

lia, Queensland, Northern New South Wales and Victoria.

Agreement was also achieved at the Mildura meeting on a way to secure the remaining 650 gigalitres of water required under the plan (to meet the target of 2750GL) without any more buybacks of water.

Mr Hoey said dairy farmers were calling for no more water to be recovered from the irrigation pool.

“The dairy industry is especially vulnerable to any further reduction

in water available for production,” he said.

“It is also highly vulnerable to dairy farmers exiting the industry and selling their water entitlements to non-dairy enterprises.

“This reduces the capability of remaining farmers to expand and offset the production losses.

“We’ve been fortunate this season that prices have come back to a level where farmers have been able to pay for it, but long-term the reports are telling us that when you factor in climate change and lower availability of water and the amount taken for the environment that it’s going to be very difficult for industries to survive in future low allocation years.”

Mr Hoey said the final decision would be politically based.

“It’s not going to be easy but at the end of the day the ministers will have to come up with a political solution.”

He said the basin plan was delivering as expected.

“We knew it wasn’t going to be pretty.

“It’s clearly showing that as more water leaves the region, the availability becomes tighter and the prices go up.”

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DAIRY NEWS AUSTRALIA APRIL 2017

NEWS // 7

DA analysis says Goulburn Murray farmers must change RICK BAYNE

A DAIRY Australia analy-

sis shows dairying in the Goulburn Murray Irrigation District has a future, but farmers will have to adapt to a different style of farming.

The analysis has highlighted that the basin plan’s 2750GL is already met and that the 450GL ‘upwater’ cannot be delivered with neutral socioeconomic effect.

Goulburn Murray Irrigation District (GMID) farmers are already operating in a scenario where water is scarcer and more expensive. But they can look across the Murray and see how their NSW counterparts have weath-

ered similar reforms and conditions.

Their milk production hasn’t changed much, but they farm very differently with larger farms, less intensive land use, more complex feeding systems from a mix of sources, often involving summer crops, homegrown fodder and hay, outsourcing and greater use of feed pads.

Dairy Australia and Murray Dairy have been holding meetings with Goulburn Murray farmers to help smooth the transition, encouraging them to start actively planning to change.

Figures presented to the irrigation forums have laid out the impact of the water management

Your Farm in Focus

Under the Murray Darling Basin plan, Goulburn Murray farmers sold at least 164GL to the Commonwealth for the environment.

changes.

A socio economic impact assessment by RMCG shows reduced water availability due to

buybacks is costing $550m a year in lost agricultural production. Dairy is worst hit, losing $200m at the farm-gate and $360 mil-

lion in processing output.

Under the Murray-Darling Basin Plan, GMID dairy farmers sold at least 164GL to the Common-

wealth for the environment.

There are now 1142 farms in the region and Dairy Australia said they tend to have larger herds sustained on larger properties.

Dairy land use is now less intensive and less productive per hectare and farmers are more exposed to the temporary water market.

In 2003-04, the GMID dairy industry used about 30% more water each year than its farmers collectively owned.

Now farmers are using 59% more and have to compete for the extra water on a market with a high degree of price uncertainty.

More than 80% of the

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region’s dairy farmers say prices over $200/ML are not viable.

The region now uses about 25% less water a year than a decade ago but milk production has also fallen 26% from 2345ML in 2003-06 to 1740ML average over the past five years.

The Dairy Australia analysis says this indicates that while many dairy farmers have upgraded their farm systems to use water more efficiently, milk production remains closely linked to water available.

The analysis says farmers must rapidly accelerate their change to new production systems that are less reliant on irrigated pasture.

DAIRY NEWS AUSTRALIA APRIL 2017

8 // NEWS

Mixed messages hurting WA WESTERN AUSTRALIAN dairy-

farmers don’t know whether they need to grow or shrink to find prosperity.

After being encouraged to supply more milk just a few years ago, over the past 12 months some farmers have lost their supply contracts because their milk isn’t needed.

As the state’s industry reaches a critical juncture, the WAFarmers Dairy Council is planning to address longterm future requirements to ensure dairy remains viable.

This year’s annual WAFarmers Dairy Conference on July 27 at Busselton will follow the theme `grow or shrink to prosperity’. The need for a secondary manufacturing balancing plant to ensure every litre of milk is used and the complications caused by flat curve requirement of processors will be high on the agenda.

WAFarmers Dairy President Michael Partridge said the loss of contracts for a handful of farmers had created a dark space for the state’s industry.

However, Mr Partridge said he believed that with proper long-term planning and good

communication between government, processors and farmers, the industry and its 140 farmers could thrive.

“The industry supplies a fairly stable domestic market and it can be profitable,” he said.

Four farmers didn’t have their contracts with Brownes renewed last year and in the wake of the world market downturn they were unable to join Parmalat or Lion.

Mr Partridge said he believed this was the first

Michael Partridge

hope as an industry that they will have a home within the Parmalat business.”

Mr Partridge said home brands had taken value out of the industry, making it harder for processors and therefore harder for dairy farmers.

A key priority for WA’s dairy farmers will be finding use for excess milk during spring.

“Other states have a home to take the last litre of milk but in WA we find there won’t always be a home,” Mr Partridge said.

“We have a spring flush problem.

Western Australia has a reasonably flat supply curve compared to other parts of Australia, but it obviously it needs to be a lot flatter.”

Traditionally each processor had a balancing plant with secondary manufacturing capacity but over the years those plants have closed.

“Our domestic fresh milk system requires a fairly flat supply curve but the seasons deliver something different to that,” Mr Partridge said. “We’ve got to be able to utilise that extra milk so there needs to be a balancing mechanism.”

“Maybe we need one kind of bal-

time in Australia that farmers had come out of contract and had nowhere to go.

“Their milk went down the drain and they were forced out of the industry, which was very distressing for the individuals and the whole industry,” he said.

“A few years ago everyone was crying out for more milk. Farmers responded and gave the industry what it was asking for and then we found individual farmers being left high and dry.”

Mr Partridge said a similar situation was playing out with some Parmalat suppliers.

“Those farmers will find out soon if they are going to be required. We

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WAFarmers is hoping to hold talks with the new Labor Government and processors to secure long-term stability for the industry.

The state’s closeness to Asia opens opportunities to sell fresh milk, but that doesn’t solve the spring flush.

“There needs to be a form of commodity, such as long-life or cheese, to act as a spring balancer,” Mr Partridge said.

“The industry needs a solution to handle potential growth and the problem of seasonality. We need to identify the type of product and seek the will of all the processors and the government to help and then identify the correct structure around that plant. There are a lot of ducks to line up but we’re having a decent crack at it.”

“If that doesn’t work there needs to be recognition that producing milk on a very flat supply curve comes at a cost.”

Mr Partridge said farmers were feeling vulnerable about negotiating a good price with processors.

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DAIRY NEWS AUSTRALIA APRIL 2017

NEWS // 9

Government supports ‘effects test’ RICK BAYNE

DAIRY FARMERS

will get a fairer deal if an `effects test’ is reintroduced in Australia, the Queensland Dairyfarmers’ Organisation (QDO) claims.

The QDO has recently argued in Canberra for the effects test to be revived and President Brian Tessmann is confident the campaign will be successful.

“The prospects are good but nothing’s certain with a very volatile parliament,” Mr Tessmann said.

The QDO met with Government, Opposition and crossbench MPs late last month about the pro-

posed amendment to the Competition and Consumer Act. “We know the effects test is soon to be introduced into the House of Representatives but we didn’t know how quickly it will be voted on,” Mr Tessman said. “We had a good hearing.”

Mr Tessman said most western countries have an effects test. “We’re one of only a few that don’t have it anymore and we’re keen to see it reintroduced,” he said.

The effects test would prohibit an action, particularly by big business, which has the effect of or the intent of reducing competition or is unfair.

“It would be a step to make the whole domestic

INVESTED FARMERS WAIT ON PARMALAT DARLING DOWNS farmers Chris and Amanda Scheuerle have invested heavily in infrastructure and quality cattle as part of their expansion.

The young couple have been planning for future growth since they built plenty of capacity into a new 20-a-side herringbone dairy seven years ago.

They have since built selfcomposting shade housing for their herd, a new central feed pad, and in the last two years have purchased quality cattle as neighbours exit the industry.

The couple supply their milk to Parmalat in Brisbane and are living without the security of a Chris Scheuerle contract as a dispute between farmers and the processor goes to arbitration.

“Things are a bit uncertain at the moment, but we are hopeful of a resolution to the price impasse,” Chris said.

“We’ve made a big commitment to our future in the industry and we need a fair price for our milk to be sustainable.”

The Queensland Dairyfarmers’ Organisation is hoping for a quick resolution to the dispute between Parmalat and farmers’ bargaining group Premium.

“The contracts are in arbitration and we hope it’s resolved fairly soon because farmers are growing tired of waiting,” QDO President Brian Tessmann said.

The dispute centres on prices and plans for a milk mark to signify products are using Queensland milk paid at a sustainable price for farmers.

Mr Tessman said recent comments made on the issue by Parmalat had not helped farmer confidence.

market fairer,” Mr Tessmann said.

“It’s not a silver bullet; we need a lot of other things to make it fair from the retail shelves to the farm gate, but it may affect things like $1 litre milk or some of the dealings between farmers and particularly processors and supermarkets.

“It has the potential to make those dealings fairer.”

Mr Tessman said he expected the Government to support reintroduction of an effects test, along with most cross-benchers. However the ALP is opposed.

“It’s not a Left versus Right thing; I can’t see

any practical reason why the Labor Party wouldn’t support it, but they’re not.

We hope to get it through without their support, and hopefully the Labor Party will support some other measures to help the dairy industry down the track,” he said.

Ms Tessmann said Queensland farmers

were still doing it tough but were responding to market incentives.

“When they were getting some incentives last year around autumn and quality payments, even though there was a lot of doom and gloom around, our farmers responded,” he said.

While most of the

country was down in milk production, Queensland experienced a slight increase across 2016.

“Farmers are willing to have a go if you can give them some hope of getting something back, but it’s still very tough and some of those incentives may disappear,” Mr Tessmann added.

DAIRY NEWS AUSTRALIA APRIL 2017

10 // NEWS

Tasmanian water prices should drive investment people don’t ask for a cut of steak any more, they know the brands - provenience is king in agriculture. You need to set a story around your products and WATER SUPPLY and quality proTasmania has plenty of them.” venience branding will be Tasmania’s VDL is now converting three areas competitive advantage as leaders look on the Woolnorth property to deliver to grow the state’s $500 million dairy organic product to further enhance industry. the value of its brand.

The annual Tasmanian Dairy Water, though, is the Conference, held in Launceston “There are significant key to future expansion, on March 29, focussed in part on opportunities for us around he said. investment opportunities.

“There are signifiOne panel discussion involved getting water into the northern cant opportunities for plenty of colourful language and parts of Woolnorth.” us around getting water anecdotes from investment banker into the northern parts David Williams, but the 300-odd attendees were also given some solid consumer in a consumer market and of Woolnorth,” Mr Rolley said. “(The property) Togari, south of tips by Mr Williams and Moonlake we are now delivering a product to preInvestments (VDL) CEO Evan Rolley. cisely match the consumers’ require- Smithton, has the best dairy growing They concurred that Tasmania’s low ments and capturing a premium price conditions in Australia but could bencost of water should encourage invest- otherwise not available in a commod- efit from irrigation opportunities and we are paying close attention to look at ity situation,” Mr Rolley said. ment.

To capitalise on their brand, Van options to deal with that as a priority.”

Mr Williams purchased significant VDL was also seeking an investrights in the Midlands water scheme to Milk is also looking to launch a yoghurt allow it to proceed, expressing frustra- range and other milk products. It will ment in modern telecommunication tions that locals hadn’t seen the value also work to partner with other pre- infrastructure in the region to allow mium products in the fish, salmon and for contemporary farming practices at the time. and attract young families to live there.

He said he paid $1100/ML and is water industries.

“We have got to be more aggresnow selling it for $1800/ML. In comparison, he said schemes in sive about the Tasmanian brand. The Victoria were permanently at $3000/ opportunities have never been fully ML and in South Australia, where developed and explored ...that is the water-reliant pecan crops were grown, key to unlocking further value,” Mr PEOPLE WANT to invest in Tasfarmers were paying between $5000/ Rolley said. mania but it needs to be an easier “Mostly people can’t connect with ML and $6000/ML. proposition, delegates at the Tasma“With the Lower South Esk Scheme the generalisation of the ‘clean and nian Dairy Conference in Launces(farming families) have been there for green’ product. If you don’t have ton were told.

250 years doing lamb and that’s all comprehensive data about your land, Although international investthey’ve been doing ... but what they grasses, quality of the waterways and ment has slowed, Compass Agri’s could be doing is greenfield dairy, pop- the way you manage your farm that Managing Director Nigel Pannett pies and berries and in five years that’s underpins your product, it’s difficult said people were interested in the to present to a consumer audience what it will be,” he said. state because of the water and tem“In the Murray Darling I would be that’s the key to making a brand real perate climate. stampeded for the water because they and not just a generalisation.”

However, rural real estate agent Van Milk capitalises on the stories know there are hundreds of uses for John Hewitt said some property it and that will grow in the Midlands. behind the brand through Q codes to owners made the sale transaction There is a chance to reinvent the wheel take the consumer straight to informatask too difficult. “When you are selltion on a website. and look outside the square.” ing your farm you are selling a busi“It takes you back to deliverables VDL company is one such pioneer. ness and you have to get it ready to Mr Rolley described its 2016 deci- around the brand,” Mr Rolley said. sell as a business by providing figMr Williams concurred: “In Sydney sion to establish Van Milk, with a reliRACHEL WILLIAMS

able, direct shipping link via Hobart Airport to China, as a game-changer for Tasmanian agriculture.

“We spent 4-5 months with Lion testing the supply chain. They have an intimate knowledge of the market and distribution networks in China and a sophisticated understanding of the

Jacki Hine, Dairy Tasmania, and Gary Watson, Circular Head.

Investors seek genuine business figures ures,” Mr Hewitt said.

“The big frustration for us is corporates come along with $50-$100 million to invest and they want to see five years of figures and the farm owner says ‘no, I’m not going to give it to you’.

“Most farmers’ figures are for the tax office and they reflect that they want to reduce the tax they pay.

“Investors want to know how profitable you actually are. I suggest you do two sets of figures - your tax figures and management accounts.”

Mr Hewitt said Tasmanian farming land was worth between $18,000 and $25,000/ha with an expectation that land prices would soon rise.

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DAIRY NEWS AUSTRALIA APRIL 2017

OPINION // 11

The round-up on Roundup JACQUELINE ROWARTH

FUTURE USE of the

herbicide glyphosate in Europe remains uncertain.

This is despite the European Chemicals Agency (ECHA) saying “on the available scientific evidence, there were no grounds to classify the controversial herbicide glyphosate as a carcinogen, a mutagen or as toxic for reproduction”.

ECHA’s committee for risk assessment (RAC) concluded this after extensive evaluation of all available information. Committee chair Tim Bowmer said “RAC agreed with the German dossier submitter that glyphosate should not be classified as a carcinogen, i.e. a substance causing cancer. This conclusion was based on both the human evidence and on the weight of the evidence of all the animal studies reviewed”.

This is good news for the many farmers who rely on the herbicide for weed control, and for consumers for whom food is cheaper because of the availability of safe and effective chemicals.

But lobbyists, aided by celebrities, are running a campaign against the chemical, implying that the interpretation of the scientific evidence is flawed.

While it is true that deaths can be linked directly to pesticides, an editorial in the medical journal The Lancet last month indicated the deaths were deliberate.

“Pesticides are responsible for an estimated 200,000 acute self-poisonings worldwide each year.” No estimate was made of the number of lives saved through avoidance of starvation.

The key to chemical use is, of course, “according to label instructions”.

Instructions are formed after much research and with safety factors built in. When new evidence is produced, regulations are adjusted. This is what happened with the use of DDT after the release of Rachel Carson’s 1962 book Silent Spring. DDT had been used liberally as

“Celebrities tweeting that glyphosate should be banned apparently don’t understand that the risk of cancer is greater from very hot caffeine drinks.” an insecticide, but indications that it had entered the food chain and was causing thinning of wildbird egg shells and loss of bird life resulted in reconsideration of use.

Carson’s work linking DDT and bird populations has been largely disproved, but her suggestion has been taken seriously and followed: “if we are going to live so intimately with these chemicals – eating and drinking them, taking them into the very marrow of our bones – we had better know something about their nature and power”.

The questions Carson raised have resulted in much improved regulations globally.

Last year the EPA published a review of glyphosate, concluding that, overall, glyphosate is unlikely to be genotoxic or carcinogenic to humans and does not require classification under the Hazardous Substances and New Organisms Act as a carcinogen or mutagen.

Previous debate had been inflamed by conflicting reports. In March 2015, the World Health Organisation’s cancer experts (IARC) said the substance was a probable cause of cancer. In November that year the European Food Safety Authority (EFSA) contradicted the IARC findings.

This was followed in May 2016 by a joint FAO/WHO meeting on pesticide residues concluding that glyphosate is unlikely to pose a carcinogenic risk to humans from exposure through the diet.

The key to the differences in the reports boils down to level of evidence as opposed to level of risk: having the evidence that something is carcinogenic says nothing about the risk it presents.

Celebrities tweeting that glyphosate should be banned apparently don’t understand that the risk of cancer is greater from very hot caffeine drinks, burnt toast and charred

barbecue offerings than food produced by farmers and growers who can read and follow instructions.

They also don’t seem to understand that not using glyphosate would result in increased costs of food production.

But the real mystery is

why people would believe the opinion of celebrities rather than the evidence of research.

• Jacqueline Rowarth is chief scientist for the Environmental Protection Authority, the regulatory body for hazardous substances.

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DAIRY NEWS AUSTRALIA APRIL 2017

12 // OPINION RUMINATING

EDITORIAL

Trust easy to say, harder to earn

MILKING IT...

Cannabis over cows Speaking at a charity event in New Zealand last month, Virgin founder Richard Branson has suggested cannabis as a profitable alternative to dairying. It’s still illegal to grow, sell or possess cannabis in NZ but Branson believes the herb will eventually become “as acceptable as drinking wine”. “I think that would be wonderful; if you could put some of that land over into growing cannabis, it would be just as profitable for them, if not more profitable,” the billionaire told Newshub.

With recent price woes still top of mind, even the president of the NZ’s Federated Farmers, William Rolleston, didn’t rule it out, saying: “Farmers welcome any opportunity to add another string to their bow, and would look at that option only if it was legal and profitable to do so,” he said. With recent changes in Australia for the use of medical marijuana, perhaps Aussies could beat them to the punch?

Milking record A RANGITIKEI dairy farmer has set a world record by milking 5000 cows in 12 hours non-stop.

Bulls farmer Isaac Cook (37) was covered in cow dung, sweat and milk by the end of his 12 hour shift.

But the smile on his face said it all.

His friends and family counted down, clapped and cheered for Cook as he pulled the the last cup off the udder of cow number 5065.

Cook’s challenge to set a world milking record stemmed from a Fit4Farming program, which encouraged the farmer to keep fit, train and eat nutritiously.

On an average day Cook might milk about 500 cows. Before the challenge, the most cows he had milked in one day was 2000, but with a break.

Nature’s perfect food

Thanks for the mammary

The commercial battle around what should legally constitute milk, yoghurt and cheese is heating up in the U.S. The National Milk Producers Federation appeared before a House Agriculture Committee this month to urge the Food and Drug Administration to ban the use of the term milk for plantbased alternatives made from almond and soy. It follows the introduction of the Dairy Pride Act into Congress in January, which is yet to become law. CEO Jim Mulhern was reluctant to admit the NMPF were motivated by the commercial reality that they are losing market share, instead arguing that plantbased alternatives are nutritionally inferior to the products they are trying emulate. “We’re producing nature’s most perfect food and we want to reclaim that.”

In Australia, NSW industry body Dairy Connect is eager to hear the federal government’s response to the milk labelling issue, after bringing it to the attention of the Senate Economics Committee inquiry in late January. It argued that limiting the definition to that collected from the “mammary section of milking animals” is necessary for keeping Australian dairy competitive “in the changing domestic marketplace.”

The dairy industry is waiting with bated breath for this and other critical industry reports. Last month the Senate Committee requested a second extension on its report, which was due on March 30. It now has until May 11. Let’s hope a dog doesn’t eat the committee’s homework in a month’s time…

Advertising Brett Matthews brettm@dairynewsaustralia.com.au

Dairy News Australia is published by RNG Publishing Limited. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written

0417 440 009

TRANSPARENCY AND trust are a couple of words being bandied about at the moment.

They’re usually thrown around after a business wants to reset after an incident or period that has caused it financial grief.

However, businesses find it takes a long time to earn trust, especially after you lose it. Part of that effort to gain trust involves being transparent, and genuine transparency is not simply revealing what suits them.

The industry certainly needs more transparency if it is to recover from last year’s price crash and subsequent clawback attempts.

Murray Goulburn is promising this under the new team of John Spark and Ari Mervis. Mr Mervis has been on the front foot meeting suppliers to hear their concerns in a way Gary Helou would never have done. It’s the first step on a long journey.

It raised our eyebrows when we heard new Fonterra Australia CEO Rene Dedoncker chip MG for their role in last year’s price crash, when Fonterra also dropped prices and attempted to claw back money from its suppliers.

Mr Dedoncker said Fonterra was looking to rebuild trust by being more transparent on pricing with farmers. We’ll remember this in a few months when the opening prices are released.

This promise to transparency must equate to less convoluted milk pricing contracts if Fonterra is serious. Wouldn’t that be the best way to show transparency of prices to their suppliers?

Farmers in Western Australia would also like transparency from their processing sector, whose mixed messages mean dairy farmers don’t know whether they need to grow or shrink to find prosperity.

After being encouraged to supply more milk just a few years ago, over the past 12 months some farmers have lost their supply contracts because their milk isn’t needed.

The WA processing sector needs to be transparent about its intentions and the WAFarmers Dairy Council is hoping to hold talks with them and the new Labor Government to secure long-term stability for the industry.

We’ll wait to see how they respond – not in what they say, but whether they genuinely involve their suppliers.

Editor Stephen Cooke

0427 124 437

editor@dairynewsaustralia.com.au

Publisher Brian Hight

Production Dave Ferguson Becky Williams enior Journalist S

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

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DAIRY NEWS AUSTRALIA APRIL 2017

OPINION // 13

What is the point of cottage cheese?

CAN SOMEONE please explain to me why cottage cheese exists? I mean apart from providing a useful protein source that can be hand made in the event of an apocolypse?

I know I have previously said this column was a celebration of all things dairy but quite frankly, I feel like this is one member of the dairy family that is letting the side down.

It’s time to vote cottage cheese off the island.

I’m sure I’m not alone in associating cottage cheese with self-deprivation and dieting.

As I kid, I always knew if Mum (and it was always Mum) was trying shed some kilos by the prevalence of three items in the pantry: rice cakes, celery and cottage cheese.

Together they were the Holy Grail of 1980s ‘diet’ foods.

Now we don’t even use the word diet: we call it ‘lifestyle change’.

Thankfully, there is also a trend towards eating a smaller portion of “wholefoods” – including full fat dairy - rather than suffer through insipid gloop in the name of calorie reduction.

Which brings me back to my first point: why is cottage cheese still on shelves? Who is buying it?

A vegetarian with a cholstoraol problem? A weight lifter in training for a big event? A dietician sworn off brie?

cheesecakes and guacamole. Would you be game to try? I’m not!

If someone reading this cares deeply enough about cottage cheese to defend it and even send me some recipes they

think helps to justify cottage cheeses’ exisitence, please do.

In the meantime, I shall be carrying on my personal vendetta against this particular dairy product.

OFF THE SHELF MADELEINE BRENNAN

I read a quote this week from a prize winning NZ cheese maker Albert Alferink who said “Cheese has to speak: it has to have character.”

Cottage cheese doesn’t have character – it has a personality disorder.

It’s a utility food.

If cottage cheese were a colour it would be beige.

If it had a job it would be an accountant – and a ‘letter of the law’ one at that.

Cottage cheese is never seen at parties or when people come to visit. It’s a private shame.

(Although there is a cottage cheese appreciation group on Facebook. It has 4 members. I checked.)

There is of course the attempt by some manfacturers, such as Bulla, to ‘jazz’ it up kath and Kim style with a bit of sweet chilli or onion and chives.

And a quick search on the internet will bring up headlines such as 25 ways with cottage cheese?

25? Really? One blogger believes the gloopy stuff can be used successfully in pancakes, pizzas,

LETTER TO THE EDITOR ‘Wake up’ congratulations CONGRATULATIONS TO John McQueen and the team at ADF for focusing on ‘energy’ (Dairy News Australia, March).

As David Basham highlighted, South Australia is the ‘wake up’!

There is no doubt that any energy crisis will impact more on regional farming and agribusiness.

The front cover heading “Power Shock” was timely and the other stories very pertinent.

I do hope that the national focus on energy will come in time for solutions and I welcome the Snowy 2.0 proposal.

Alex Arbuthnot AM Nambrok

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DAIRY NEWS AUSTRALIA APRIL 2017

14 // MARKETS

We have to talk about cheese THERE’S ALWAYS a

lot of local media coverage about the price of milk and how it’s hurting farmers. When global dairy trade is discussed it’s all about whole and skim milk powder.

Cheese is like a middle child, kept in the background, often neglected and overlooked.

Recently retail cheese market dynamics and imports have had some limited coverage, mostly aimed at provoking the usual supermarketfocused outrage.

But cheese has an important and unique place in the Australian and global dairy industries, so we thought we’d give the curd it’s moment to shine this month!

In 2015/16 cheese manufacture accounted for 30% of Australia’s milk production – still ahead of drinking milk with 26%.

As the bulk of cheese is manufactured in the southern region, it is even more important for returns in Victoria and Tasmania, accounting for 42% of milk intake while just 12% is used for drinking.

The domestic retail cheese market is tough, as everyday pricing strategies of the major retailers and the increasing share of private label products has eroded value capture.

[Figure 1] It’s the less visible battleground for branded product, but it is no less

FRESH AGENDA JO BILLS important than drinking milk.

The ability for brands to innovate and attract shopper dollars that remain focussed on maximising value for staple items is a significant challenge for local dairy companies.

Unlike drinking milk, cheese is highly exposed to global dairy trade.

Of the approximately 340,000 tonnes produced each year in Australia, 40% to 50% is exported and is directly influenced by global supply and demand.

Just under half of the cheese consumed at home is atop pizzas and in burgers, consumed through foodservice channels – a significant proportion in national and multinational quick service restaurant chains that have the ability to source globally.

Local manufacturers compete with overseas suppliers for these contracts, and currently around 36% of Australia’s cheese market is imported, primarily from New Zealand and the

Figure 1.

United States – both of whom have access through free trade agreements.

While we are used to talking about the volatility of the global dairy trade, cheese supply, demand and pricing tends to be more stable.

Much of the trade is based around longer term supply contracts to customer specifications both for domestic supply and for export. There is limited spot trade in cheese and minimal volumes are traded in the fortnightly Global Dairy Trade online auctions.

This is important when it comes to the perennial discussion about Australia versus New Zealand farmgate price comparisons.

In New Zealand, cheese accounts for just 12% to 14% of annual milk production – with the bulk of their output directed towards whole milk powder manufacture – where the dynamics are

vastly different.

As the New Zealand industry has grown and Australia’s has shrunk, product mix has become increasingly divergent.

So the peaks and troughs in commodity returns – based on WMP’s dominance - are much more amplified for our Kiwi cousins. What that means in practice, is that for 10 of the past 15 seasons we estimate Victorian average milk prices have been ahead of the New Zealand payout. [Figure 2] The limited focus on cheese is just another reason why our Kiwi bros “are just a little bit different”.

In the major northern hemisphere dairy production regions, cheese is even more important to the mix, and therefore to farmer returns.

In the US cheese accounts for 56% of annual output and sets the federally regulated Class III milk prices that

are the key driver of farmgate incomes – much more than fluid milk prices.

The US has maintained a milk production growth rate of between 1.5% and 2.5% over the past 12 months or so, as on-farm profit margins have been favourable.

This has reflected not only historically low feed costs, but also farmgate prices that were protected from the downturn in

global commodity prices by a healthy domestic cheese market.

Throughout the past 12 to 18 months, improved economic conditions have helped buoy foodservice demand and, in particular, cheese consumption which has absorbed a large proportion of US milk growth.

In the EU, cheese also accounts for well over 50% of annual milk output. Over the past year when the EU put the brakes on milk output, the volume of milk directed toward cheese manufacture – which is primarily consumed at home - was prioritised at the expense of powder production.

This was important in rebalancing global trade in milk powders, as the EU’s export availability was disproportionately reduced in favour of supplying a growing domestic cheese market.

In fact, the US and EU cheese markets combined have grown at a healthy 2.7% per annum between 2013 and 2016, absorbing a significant proportion of the 16 billion litres of additional milk that the global dairy industry has produced – around twothirds in fact.

Cheese, no matter where it is consumed or produced has a significant impact on global dairy trade balance, and on returns to farmers.

It is a key product for domestic consumption in most major dairy producing regions, and as such has a significant bearing on the availability of milk for export, and the balance of global trade.

So now that you have had the word on curd, it is clear where all our duties lie – eat more cheese!

• Jo Bills is a director of Fresh Agenda (www. freshagenda.com.au)

Figure 2.

Commodity Milk Value update THE COMMODITY Milk Value (CMV) flat-lined over most of March, as prices of most dairy commodities retreated and the Australian dollar rose slightly. Spot prices for skim milk powder lost US$600/t as increased availability saw Oceania values converged with EU benchmarks.

Quotes from Australasian exporters averaged US$1890/t at the end of March, the lowest spot price since June last year. Oceania SMP had enjoyed a premium over EU offerings – with European prices weighed down by large government stockpiles.

However, as more product was made available through the Global Dairy Trade auctions in March, this was quickly eroded.

Higher than expected NZ milk production also weighed on whole milk powder prices, which lost US$310/t for

the month, ending at an average of US$2890/t. Cheddar prices also lost ground, down US$200/t to end the month at US$3550/t.

The bright spot has been butter, which gained US$400/t to end the month at US$5000/t. Global shortages and strong demand have pushed butter prices to record highs, as low SMP returns constrain production.

Based on these movements in major commodity prices over March, the commodity milk value has lost around 53c/kg MS, ending the month at $5.25/kg MS. Looking ahead, the CMV has peaked for the time being, with the EU spring followed by improved NZ flush export availability likely to keep a lid on commodity prices in the coming months.

While lower prices are likely to

see buyers who are still buying hand to mouth as prices weaken, return to the market. Maintenance of current commodity prices and a slightly

lower Australian dollar will be critical to the outlook for improved 2017/18 farmgate milk prices.

About the Commodity Milk Value

The commodity milk value (CMV) measurement and outlook is based on spot prices and Freshagenda’s forecast fundamental value of major commodity products (cheese, butter, whole and skim milk powder), which is in turn based on our rolling analysis of global trade balance.

This is converted into a local value of farmgate milk using the industry’s product mix, deducting conversion costs and converted to Australian dollars per kilogram of milksolids.

Our approach recognises there are two components of farmgate milk prices paid by manufacturers in southern Australia – a commodity value of milk, which reflects the returns from the global market for dairy products, and an additional value captured on top of base commodity returns.

DAIRY NEWS AUSTRALIA APRIL 2016

DAIRY NEWS AUSTRALIA APRIL 2017

OPINION // 19

MARKETS // 15

Politicians influence Exporton deman dependent of Time for an inde marketsreview strengthens LETTER TO THE EDITOR

a’s value to farmers

With season 2011/12 only a few

Dairy Australia’s

weeks from ending, attention is now focused on 2012/13 milk prices as farm“Ask five economists and you’ll get five different answers - six if ers consider for themay coming Trump Presidency make ‘the near term’, the different views strategies themselves felt in other ways regarding the global economic outlook one went to Harvard.” - Edgar Fiedler year. In some domestically-focused to Australia’s international remained plain to see. regions, renegotiated contracts incorGLOBALimpacT IMPACT For Australian dairy, the idea that dairy trade.

YES, IT’S an old gag, but one that will freak show that is current politics, and gLobaL porating lower prices and reduced ‘tier LAURIE WALKER Theglobal current in which milkan SMP stockpile. levels while the focus on the The new fragility in UStradetrend and politics instead the Productivity underlying eco- economics, age better than JohN farmers to a single in w financial interest in DropperT ONare BEHALF of farmer one’ access undermining production fallen profit margins fortoa are inextricably linked would seem a Mexico nomicofindicators,Commission which pointed Attendees has at the ABARES (Ausfor farmers to exit meeting! pro the outcome.

Farmer Power,relations which means and supply stability.concerns For in the home somewhere, and any disruption there are widespread truism, given how events like the Rusyear’.

Agricultural and 2017 being ‘a lovely on, tralian from 11Bureau billionoflitres the manufacturers truly objective review the industry (byconfidence Since its formation, fro The last levy poll, represents dairy Shifts in private label contracts and promany farmers in export-oriented to US-Mexican dairy trade increases US regarding ongoing market access for sian trade embargo regularly intrude on Michael and Resource Economics to just over 8 billionand Sciences) increase. Immediately afterwards, of Dairy Australia Dairy Australia has to j selling their farms which reportedly farmer members the likelihood thathave it will seen appearmilk in AusUS agricultural products such ascessor corn, rationalisation world economists. arguedit it was the 2017 were treated regions, a lower price outlook relative to litresOutlook (whileConference New This hasEvery led of Rabobank the value delivers to idealised received around litr cost Dairy Australia to other producers in thepork south-west tralia’s traditional markets.requireand dairy. prophesy is a the fraught busi-season to an outstanding example at the open- impossible to disentangle Zealand’s production to significant companies adjust their intake current not only adds to the farmerspolitics as welland as the While $500 million from Zea around $750,000, of Victoria, we or converting toearly signs of Indeed, this possibility was alluded Mexico has opened bilateral negoAustralia the economics, and that the recent politi- ness, from ing session. government. ments and pricing to meet the changchallenges of doing business, but seems resulted in only applaud the with standArgentina and Brazil to to in a later session on dairy at the moreeffect profitable beef more tiations are becoming Deloitte Access Economics head, cal developments were deeply concern- the Trump What farmers demands of a highly pressured to contradict the positive medium term an estimated 600 taken by Senator ABARES’ conference, with retail Fabrizio source corn, soy and rice, whileing legisapparent.

Chris Richardson, told the audience ing for free trade. production) should rs witness are their funds witness are their “What farmers dairy farmers marketplace.

Lower contract prices and outlook of Asia-driven dairy demand David Leyonhjelm in Jorge of Fonterra specifically notingwitn lation has been introduced (although Aside from the immediate canLater clarifying that he agreed with ‘politics is not economics’, urging ring alarm bells for funds (typically n lavish and offices, Richardson’s optimistic being spent on attending workshops that events like the recent loss of alavi is unlikely to be passed) that would of the outlook for celling of the TPP, the politics them to events ignore the headline-grabbing a lack of alternative supply opportunigrowth. opposing the changes the government, $5,000-$7,000 per asts consistently predicting longstanding Mexican SMP tender specifically give preferential access to nationwide. to the five year poll ofoutlook annual forecasts co ties present challenges in a market with flow indicative but instead Dairy Dairy Australia’s farm) being spent

by US companies would lead to US theselevy.* two countries, and Australian boycott US Dairy the dairy lk production with no is up capacity. Despite forthe southern farm gate milk prices – limited manufacturing improved milk pro Australia spreads exporters ‘directly competing with our corn. on lavish events Farmers, whochallenges, We are concerned achieving this, and a Apri these the underlying domespublished in the recent Dairy 2012: Sitstrategies message that all is position in Southeast Asia’. for achie At present, these contacted moves repreand offices, annual all licensed that this is just the ise the government about market is stable, with steady uation and Outlook report, for an failure toper-capadvise the Given the export-oriented nature data sent posturing by is Mexico, with tic an eye forecasts consistently well. dairy farmers calling latest illustration of finis ita dairy consumption and a growing opening price range of $4.05-$4.40/kg of the industry.” of much of Australia’s dairy industry, towards the renegotiation of NAFTA the true state of the As the number predicting improved farmers to how Dairy Australia thisfor recent changes in the political land- 2.3% likelyaverage to begin later year. population providing a degree of cerMS and a full year price range milk production of farmers declines support these change, fails to represent scape and challenges to free trade point prod However, the prospect of a UStainty beyond the current adjustments. $4.50 and $4.90/kg MS. did Theso with with no strategies for further, Dairy between the on has doubled over the disillusionment a limited interests of dairy compulsory levies on has to new challenges going forward.

Mexico trade war, with agricultural In the seasons following the 2008 this the marketbudget pic- of around achieving this, and a same period) and amongst the Australia will report considers farmers andwider is ancaught farmers in fears, addition If, as Michael Every we may sam commodities in the middle, is financial crisis subsequent comture and summarises the many factors failure to advise the the number of dairy remaining dairy $3,000-$5,000,begin which presumably need to attempt to eliminate to and see a gradual breakdown deeply concerning. to around $300m in mark the government about ex modity price recovery, farmers at play; key theme of current sit- Council farmers has shrunk farmers about how the current liberal economic orderin and isfar The UStheDairy Export elicited a response farmer’s democratic in government continually ramp up the the true state of the from 23,000 to 6,500. their industry is run, global trade system, then initiatives like (USDEC) has actively been seeking export-oriented regions have seenno solid ing uation being that re-balancing infrom the only a small rights toof have a say. funding (with fros the levy even more industry. the Australia-Indonesia Comprehentopanel shore up its position in Mexico, The board of as is well illustrated minority of farmers. nific global supply growth (see chart) with dairy supply chain.

The direct financial T in order to secure its sive Economic Partnership Agreement the single largest market for US dairy they Australia’s dairy Dairy Australia by the fast declining We believe do that developed contribution Da in the from North- muc In regions of Australia focused on higher-cost competitors own survival. exports, with former Secretary for are even more important to secure the exports used to s appears to be heavily membership of the not reflect the views the proposals dairy manufacturers app ing S ern Hemisphere amongst those expandproducing drinking milk, many farmers Chris Gleeson, Agriculture and USDEC President Tom ongoing profitability of the Australian account for about nce influenced by dairy Australian Dairy of the majority, and for changing the despite their presence inf D ing output their margins increased. face a re-balancing market the formto Mexico dairyasindustry.

Vilsack leadingin a delegation 50% of milk produced Crossley VIC manufacturing Farmers as well as the results are tainted levy process was contracts on the board). ma taint This season, favourable weather conof renegotiation of supply While these concerns may seem far in March.

On behalf of but this has fallen ng interests, and has state bodies. byUSa failed process.

Farenhanced from advancing dominated away yet prove unfounded, if 2016 asint Meanwhile, growing milk proim ditions haveand further milk toby‘tier one’ supply.

Farmer Power and reduced access to around 25%, and watched the farmgate We repeat our the interests of Farmer Power, showed which nothing people who are else, sometimes it’s wa duction, largenot inventories and growing *Ed note: The changes US National Milk Producers Federation CEO, Jim Mulhern, price for milk previous calls made Australia could well dairy farmers, has nomarket fundingworth thinking independent Dairy about the unthinkable. pri concerns of about the Mexican US Dairy Export Council President, Tom Vilsack, and US have since been passed Australia being kept at well to the DEO, Minister for Dairy Australia has bei International Dairy Foods Association Michael Dykes, in be a net importer of base, has been able • Laurie Walker is an industry analyst and who are weighing on US SMP prices.

Mexicosustainable on what has been described as a ‘tradeand rescue mission’.milk in 10 years’ time. ry below Agriculture into law. with Dairy Australia.

This US product will have to find a overseen an industry bel to attract over 600 therefore have a

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16 // MANAGEMENT

Fencing, tree planting MANDY McKEESICK

SINCE THE 1830s the fertile flats and associated wetlands of the Bega River have supported a rich dairy industry, and today Chris Apps, who farms alongside his father, brothers, nephews and children, is giving back to those bountiful waterways.

Extensive fencing and tree planting programs are providing increased water quality in the river, health advantages to his cows and refuges and habitat to a growing number of birds.

The Apps family have been dairying in the Bega Valley since 1958 and today their holdings stretch to four dairy farms, including “Yarranung” and “Corridgeree”

where they milk 1120 cows, and two dry runs, which together encompass over ten kilometres of river frontage and associated lagoons.

Chris runs Corridgeree with son Luke, 27, and daughter Ebony, 22.

The family first leased the property six years ago and purchased it six months later. “We go right from the junction of the Bega River (with the Brogo River) and half way down to the racecourse,” Chris said.

Away from the river, on the extensive fertile flats, are the wetlands, which expose dairy cattle to production problems such as mastitis, liver fluke and bovine footrot.

“When we first moved to Corridgeree there weren’t many trees,” Chris says. “There were

The apps have reduced their herd’s cell count from between 180,000-200,000 when they took over Corridgeree six years ago, to 83,000 last year, placing them in the top 5% in Australia. a lot of little lagoons and billabongs that the cows used to walk through and stand in on hot days.

“Cindy (his wife) and I put a few trees in about the place in 2012 and as far as mastitis and general environmental concerns went I was going to fence and tree them anyway but there was funding going around through BEMS (Bega Cheese Environmental Management Scheme) and with the LLS so in 2013 I got serious.”

Getting serious meant fencing off the wet areas

and planting trees. About 4000 trees have been planted on three hectares along the river, while 12ha on Corridgeree has been fenced and between 8000-9000 trees have been planted. Chris estimated 10km of fencing has been laid in total.

The trees grew to provide shade for the cattle in summer and shelter from frigid winds in the winter, and restricting animal access to these sensitive areas meant a decrease in the mastitis count.

The Apps have reduced

Aerial view of lagoons on Corridgeree.

their herd’s cell count from between 180,000200,00 when they took over Corridgeree six year ago, to 83,000 last year, placing them in the top 5% in Australia.

Chris is the first to admit that fencing is not the only solution to riparian management. “On Corridgeree the river was never fenced and there is no weed or vermin on this side of the river.

The banks on the other side were fenced and the wombats moved in making a mess and willows and blackberries are popping up.

“The way I do it the cows are on the river maybe three days a month and they keep a lot of the stuff down. You’ve got to have it fenced in the beginning to get the trees off and running but it’s not the be all and end all.”

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For Chris one of the greatest benefits of his environmental work is the increase in birdlife. “I like my birds,” he says. “It’s good to see the little redheads (firetails), the deep blue kingfisher in the river and the jenny wrens coming back and there’s a bittern rail down here.

He’s only on the wetlands and it’s very rare to see him but there’s a few about.”

DAIRY NEWS AUSTRALIA APRIL 2017

MANAGEMENT // 17

helps reduce mastitis

The birds, along with the town, water quality and herd health, are all beneficiaries of Chris’ work to protect and resurrect the Bega River.

Last year the Apps family updated the original rotary dairy on Yarranung and installed a new computerised dairy on Corridgeree.

Cows passing through the dairy are acknowledged through a computerised system and characteristics are noted, such as milk production, reproduction status and health issues.

The conductivity of the milk is measured as the cows are being milked, giving the family real time assessment for potential mastitis issues.

The amount of milk taken, iodine spray received and food is taken into account before cows finish their lap around the rotary.

As the cows exit a sprayer, which works on eye sensors, sprays the teats with iodine.

“All this information goes back to a computer and you can sit down and work out what to do next,” Chris said.

Luke, Chris and Ebony Apps and Pippa the whippet with planted areas on Corridgeree.

“The technology has been around for a while but expense has been the thing holding a lot of people back. Now it has

come down in price.”

Apart from the computerised milking system and the data gathered, the biggest advantage is

the saving in labour. “One man can do these dairies now where the old dairy at Yarranung took two people,” he said.

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Chris at the new rotary dairy on Corridgeree.

“The first rotary dairy went in 20 years ago and last year it was updated with automatic cup removers, milk metres and retention arms,” Chris Apps says of the Yarranung dairy, which milks 700 cows running on 372 hectares.

Corridgeree comprises 226 hectares milking 420 cows.

The new 50-head Hargrave Splatform rotary dairy features DeLaval DelPro milking equipment and technology such as automatic cup removal, automatic iodine spray, automatic drafting gates and ID tag reading.

Cows pass a scanner as they enter the dairy which reads their NLIS tag. Their bail ration is based on their milk production and how many days they’ve been in milk.

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DAIRY NEWS AUSTRALIA APRIL 2017

18 // MANAGEMENT

Virtual fencing now a reality VIRTUAL FENCING

for cattle is set to hit the commercial market later this year, following a successful $2 million fundraising round by Melbourne-based agri-tech company Agersens.

Agersens’ eShepherd product enables farmers to ‘fence’, move, muster and monitor their livestock remotely via smart phone, and builds on patented technology originally developed by the CSIRO. With eShepherd, farmers create a virtual fence on an app that communicates with a collar worn by each animal. Animals are trained to respond to

prompts provided by the collar, which can also collect data to help farmers improve animal health and make better farm management decisions.

CSIRO researcher Dr David Henry, who has a long-term involvement with the project, discussed the opportunities at the recent Australian Dairy Conference and revealed significant industry support.

Video of the prototype device showed how quickly animals respond to the collar.

The parameters of the virtual fence can be set from a smart phone and if an animal gets to close

it receives an audio cue.

If it proceeds through the fence it receives a small electrical shock.

Cattle usually take about three shocks before they learn to respond to the audio cues. Research has shown stress responses are similar to conventional handling in a race. Collars are lightweight and solar-powered. Estimated costs are $90-$100 per collar and farmers would require a base station with an installation cost of around $2000 to $3000, depending on internet and power access.

Agersens Managing Director, Ian Reilly, said

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Fencing heavyweight Gallagher took an undisclosed stake in Agersens last year, while the Federal Government granted Agersens $640,000 to accelerate commerciali-

sation.

The Government also awarded Dairy Australia $2.6 million last year to lead a four-year industry testing program.

Victorian and NSW

Government based Catchment Management Authorities and Local Land Services are providing funding support for trials on rivers and wetlands.

Herd recording made easier DATAGENE – the dairy industry’s new organisation to drive herd improvement – is releasing two new tools to make it easier for farmers to use herd records for management decisions.

The HerdData App and the Herd Test Dashboard were previewed at the Herd 17 conference, held in Bendigo last month. They are the first tools to be released by DataGene since it took over the roles of genetic evaluation (formerly ADHIS) and herd recording software development in 2016.

HerdData is a smartphone app that makes it easy for farmers to enter herd records from a mobile device. DataGene CEO, Dr Matt Shaffer said the app would save farmers making notes in the paddock or dairy and then entering onto the farm computer.

“Most farmers have smartphones now so the HerdData app is a convenient way to capture information wherever you are. It also allows the farmer to view key information about individual cows that might be needed in the paddock or dairy,” Matt said.

HerdData is available for android or apple devices.

The Herd Test Dashboard is a new report for those dairy farmers who herd test, providing a picture of what’s happening at the herd level.

“It provides a herd level summary focussing on indicators for acidosis/ ketosis, mastitis and recalving. While some of this information has been available in individual cow reports, the Dashboard enables farmers and their vet or nutritionist to monitor trends across the herd. The Dashboard includes alerts enabling farmers to take action early, before clinical signs are observed,” he said.

The Dashboard is available free though herd test centres.

HerdData and the Herd Test Dashboard were developed by Dairy Australia and refined by DataGene, an initiative of Dairy Australia and the herd improvement industry.

DAIRY NEWS AUSTRALIA APRIL 2017

MANAGEMENT // 19

Sunshine vitamin lifts cow health FEEDING SUPPLEMENTARY vitamin D to transition cows has led to improvements in health and productivity, new research has shown.

University of Sydney veterinary science PhD student Rachael Rodney is working with consultancy firm Scibus and the University of Florida feeding transition diets to dairy cattle, including supplementary vitamin D. Rachael discussed the research at the recent Australian Dairy Conference, where she was awarded the Young Scientist Communication award.

She said the transition from late gestation to early lactation is a risky time for dairy cows.

“About 80% of the diseases that affect cattle occur during this time leading to substantial costs to industry and have negative animal wellbeing outcomes.”

Her work involves investigating what cows are fed in the weeks before calving to improve cows’ transition to lactation and recue impacts of metabolic disease.

“Incidence of disease during this period is high due to a large, and sudden, increase in demand for energy, protein and nutrients at the onset of

lactation.

“When cows are unable to meet the sudden change in demands either from their diet or reserves stored as body tissue, they can get into trouble.”

The researchers are particularly interested in milk fever, a condition that occurs when cows have very low blood calcium.

“Between 3% and 10% of cows suffer milk fever, although this can be much higher on some properties.

“Reducing milk fever is all about prevention. Getting the mineral balance and dietary cation-anion difference (DCAD) right in the pre-calving diet will make a big difference.”

The DCAD describes the relationship between potassium, sodium, chlorine and sulfur ions in the diet.

“Where the DCAD is negative, the body becomes slightly acidic, increasing the sensitivity to hormones involved in calcium metabolism and encouraging bone turnover.

“On farm we aim to give close-up cows a negative DCAD diet to pre-

vent hypo calcaemia. We can do this by anionic feeds in the diet to increase the intake of chlorine and sulfer.

“Only a very small amount of calcium is available from body reserves, including bone, so increased calcium absorption from the diet is really important.”

Key points • Correct pre-calving diet reduces milk fever • Added vitamins lift milk production This has led them to start examining the effects of feeding supplementary vitamin D to transition cows.

Vitamin D is essential for many metabolic functions, including an essential role in calcium absorption and metabolism.

It might seem unusual to feed cattle a vitamin cows produce naturally, but Rachel said there are different forms of vitamin D. “Just like people, cows produce enough vitamin D for normal metabolic functions. However, this vitamin D must undergo two transformations in the body to become useable.”

“What we’re feeding in our work is a semi-activated form of vitamin D,

Rachel Rodney receives her Young Scientist Communication award at the Australian Dairy Conference.

called calcidiol, and at higher doses than cows can make naturally.”

Rachael and colleagues fed closeup cows wither vitamin D3 (the form of vitamin D made in the body from exposure to sunlight) or calcidiol, in combination with either a positive or negative DCAD diet for three weeks before calving.

Cows that were fed the combination of calcidiol and anionic feeds had higher concentrations of calcium in their blood both before and after calving. A negative DCAD diet eliminated cases of clinical milk fever, down from 23%, and calcidiol reduced incidence of retained placenta from 31% to 3% and metritis from 42% to 23%.

Rachael said these treatments were not just having positive effects on incidence of disease but looked promising for milk production as well.

“The cows fed calcidiol produced almost three extra litres of milk and 250g more milk solids each day.

Rachael said the results are one piece of the puzzle.

“Getting the diet right is a balance.

This type of treatment must be combined with high-quality transition diets and good management into lactation.”

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20 // ANIMAL HEALTH

Veterinary disbudding: what’s all the fuss about?

OVER THE past few

years various combinations of local anaesthetic, sedation and pain relief have become more widespread during the removal of horn buds in dairy calves. This ‘veterinary disbudding’ has been commonplace in some areas of Austra-

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lia and New Zealand for a while, but in other regions it is considered a reasonably new concept. This article aims to de-mystify the technique of veterinary disbudding allowing dairy farmers to make an informed decision on which method of disbudding is suitable for their

herd.

Traditional methods Most dairy calves are born with ‘horn buds’ which are freely moveable but not attached to the bony skull below. The correct term for removal of these is ‘disbudding’.

The disbudding proceTO PAGE 21

Applying anaesthetic before disbudding.

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Extending mastitis treatment queried ‘THE BENEFIT of extended therapy for mastitis:

myth or fact?’ was the topic at the third global milk quality expert forum, held in Barcelona and organised by global animal health company Boehringer Ingelheim.

Boehringer Ingelheim says scientific data shows that extended antibiotic treatment of Streptococcus uberis and Staphylococcus aureus mastitis significantly increases clinical and bacteriological cure rates. However, extended therapy also has its limitations. While risk factors (e.g. age of cow, number of colonies, somatic cell count) need to be taken into account, the added costs of labour, antibiotics and an increased milk withdrawal time might not balance out the gain obtained with cure.

But most importantly, participants agreed that extended treatment cannot be considered judicious use of antibiotics if used as blanket treatment of all clinical or subclinical mastitis cases, and should only be implemented case by case.

What is the aim of treating mastitis: a bacteriological cure or prevention of recurrence? According to unpublished data, 43% of all clinical mastitis cases are recurrent. And of all recurrent cases, only 10% are ‘true’ persistent infections with the same strain, suggesting that tissue damage, genetic predisposition and environmental factors play an important role.

Mastitis treatment should therefore focus on prevention and thorough treatment of first-occurrence cases. Results of a study showed that intensive treatment of first-time mastitis cases may help prevent recurrence.

In spite of the lack of evidence for the length of treatment, the message to the general public usually is to ‘finish the course of antibiotics to avoid antimicrobial resistance’.

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DAIRY NEWS AUSTRALIA APRIL 2017

ANIMAL HEALTH // 21 METHOD DESCRIPTION 1. Local anaesthetic and hot iron Local anaesthetic is injected cautery* around the base of the horn bud prior to removal.

ADVANTAGES “Blocks” the immediate pain associated with the procedure. Allows safer removal of horn bud.

DISADVANTAGES Physical restraint still required as the calf is fully awake. Effects of local anaesthetic will subside by 1-2 hours post procedure. Direct pain last for 8 hours.

The sedative has mild pain relief 2. Sedation, local anaesthetic Intramuscular sedation with xyla- Physical restraint is not required properties but these are shortand hot iorn cautery (“Double zine. One recumbant, local anaes- for horn bud removal allowing combination”) thetic is infused around the base of stress-free and efficient removal of lived. Direct pain can last for 8 the horn bud. Extra teats can also hours. Risk of death (low) with any the horn bud prior to removal. sedation. be checked for and removed as necessary.

Intramuscular sedation with xyla- Virtually abolishes the pain repose Increased cost per head and time3. Sedation, local anaesthetic, consuming compared to traditional long-acting pain relief and hot zine. Once recumbent, a subcata- as the long-acting pain relief can iron cautery (“Triple combina- neous injection of long0acting pain last for up to 3 days. Horn buds and method. Risk of death (low) with relief, followed by local anaesthetic extra teats can be removed safety any sedation. tion”) and pain free. Improved weight infusion around the base of the gains post-procedure. horn bud prior to removal.

WHO CAN DO THIS? Veterinarians are trained to handle and administer local anaesthetic.

In addition to Method 1, veterinarians are trained to select and administer sedatives, along with the recovery of calves post-procedure.

In addition to methods 1 and 2, veterinarians are trained to select and administer long-acting pain relief.

*Long acting pain relief can be also used in combination with traditional disbudding and method 1.

FROM PAGE 20

dure is quicker and less painful prior to 8 weeks of age, before the horn bud has fused with the skull.

The preferred time to disbud calves is between 3 and 8 weeks. In Australia, hot iron cautery using electric or gas disbudding irons has been used for the removal of horn buds for decades. Calves are fully conscious but physically restrained for the duration of this process to allow the procedure to be performed safely and effectively.

After 8 weeks of age, there is fusion between the horn bud and underlying bone meaning the horns are no longer freely moveable and they require amputation. This is generally done using guillotine-style dehorners, ‘scoop’ dehorners or embryotome wire in the case of large established horns.

New methods: Combination therapies The routine use of sedatives, local anaesthetics and analgesics (pain relief) for the purpose of disbudding dairy calves has been embraced in the UK, New Zealand, USA, Sweden, Canada and Denmark. Regulation and legislation varies by country but there is a general

acceptance that the use of these drugs for disbudding reduces the stress for calves and handlers, improves calf growth and optimises animal welfare.

So what are the available options? (see table above) *Long acting pain relief can also be used in combination with traditional disbudding and method 1.

The triple combination method is the preferred option due to its superior and sustained pain relief.

Additionally, research has also shown that this method has resulted in an 18% and 15% improvement in growth rates over the subsequent 15 and 30 days respectively.

A perceived disadvantage with all of these combination therapies is the need for a veterinarian to administer the sedative and local anaesthetic.

However, despite a common misconception of additional costs associated with veterinary services, many clinics are offering this service at a very competitive price.

Availability will vary by region but if you are interested in trying veterinary disbudding with your calves, it is worth contacting your local clinic and discussing this service with them.

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DAIRY NEWS AUSTRALIA APRIL 2017

22 // ANIMAL HEALTH

Five questions to consider before drying-off ROD DYSON

DRYING-OFF FOR the

spring calving cows is now fast approaching.

Not only is drying-off a significant investment in both dollars and effort, it is usually the single biggest opportunity to make a difference to an individual cow’s infection status

as well as the overall herd’s mastitis status, and it is also vitally important in helping to prevent new mastitis infections at calving.

So much so, that perhaps we should think of drying-off not in terms of being the end of one lactation, but actually as the start of the next lactation!

Coincidentally, in a

recent review of our business, one of the interesting findings was that we have now had detailed drying-off strategy discussions with well over a hundred dairy farm clients.

These were not just a quick “What did you do last year? How did it go? OK, just do the same again this year” chat.

1

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In fact, each of these strategy discussions had taken either close to, or just over two hours – yes, two hours!

Because these were comprehensive discussions, and each of them was followed up with a written summary report, we were able to look back and review what the common issues and opportunities for improvement had been.

We decided to review the latest hundred of these to ensure that our findings were both recent and relevant.

Interestingly, not even one of those sessions resulted in no change being made; every one of those discussions ended with the farm making significant changes to its dry-off routine.

Our first observation was that many of us tend to think of drying-off as what happens on the day that we actually dry cows off, when in fact dryingoff is a process by which we transition a cow from being a milking cow to a dry cow.

It involves the period leading up to dry-off, the actual dry-off itself, and then the period immediately after dry-off.

We need to recognise that the potential for mastitis control achieved at

Have you see n any cows d rip milk after dry-off ?

2 Have you had any swollen quarters, clinical case s of mastitis o r sick cows after d ry-off?

3 Have you had any cows ca lve early enough to cr eate a proble m with withholding periods?

drying-off is not just about what treatments we use; it will be a result of the whole process of drying-off.

The way that we manage that whole process 4 Have you used internal teat will impact sigsealant at drying-off nificantly on our and then fou n d cows with lit ability to achieve tle or no teat sealant remaining at the best possible calving? result from our 5 Is it over 12 mo dry-off, both in nths since yo u discussed co terms of maxiw selection & treatment at mising the cure dry-off in de tail with rate of existing your vet? infections and Figure 1 also the prevention of new set of five infections. is a great starting questions which most Our second observapoint for a discussion. farms could consider tion was that there was Given that dryingprior to their next dry off an amount of new inforoff is such a significant mation that was not being (see figure 1, above). investment both for the If you answer “Yes” considered and/or incorpresent and the future, porated into many dry-off to any of these five quesand that each clinical case tions, you probably routines on farms. of mastitis that you preAnd our third observa- should consider a further vent is likely to save you discussion with your vettion was that there was a about $277, surely a few reasonably consistent pat- erinary adviser.

If you answer “Yes” to moments for reflection tern to the changes that about a possible discuswere going to be made on more than one of these sion with your vet is likely questions, you definitely many of those farms. to be well worthwhile. should consider a further Given that most Your Countdown discussion with your vetof this potential for trained vet has a range of erinary adviser. change would be discovtools and resources availThese five questions ered during a reasonare clearly not a complete able to help make your ably detailed discussion next dry-off the best it with the farm’s veterinary and exhaustive list covcould be. ering every potential dryadviser, what might indi• Rod Dyson is a veterioff issue, but will quickly cate if a farm had signifinary surgeon and mastitis cant potential for change? expose most of the advisor at www.dairyfocus. common issues we idenThe end result of this com.au tified in our review – it was that we arrived at a

DAIRY NEWS AUSTRALIA APRIL 2017

FARM WORLD // 23 1:

Pete Fort from Burra Foods showed his milking prowess by hand, winning the Big Gippsland Jersey Milk Off. Pete milked 200ml in one minute to claim the inaugural title, presented

by Taylah Bordonaro.

2: Gary Maslen,

Westbury, puts his feet up in the Cloud 9.

3. Pichon Export

Manager, Julien Paul with Muck Runner distributors and SA dairy farmers Louise and Tom Paltridge.

2

1

4: The wet

weather rolled in on the opening day of Farm World.

4

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DAIRY NEWS AUSTRALIA APRIL 2017

24 // MACHINERY & PRODUCTS

4N Series offers many choices MARK DANIEL

THE RECENTLY introduced fourth generation Valtra N series boasts many features from its ‘big brother’ T series but is built into a smaller, more manoeuvrable package which should appeal to many operators.

All six models have 4-cylinder, Tier 4 Final AGCO Power engines with power ratings from 105 to 165hp; the three smaller models use 4.4L engines, the three larger units have 4.9L capacities.

Using an SCR-only layout, which removes the

need for any diesel particulate filters, the engines also have the Sigma Power boost function to increase power over the range from 115 to 185hp, and deliver up to 730Nm torque.

The N114 and N154 models are the choice for operators looking for fuel savings, as their ECO Power option reduces engine speeds up to 20% and gives fuel savings up to 10%.

N Series tractors are offered with a choice of three transmission configurations: Hi-Tech, Versu or Direct.

The Hi-Tech and Versu

are a traditional 5-step powershift layout, while the Direct specification is a continuously variable set-up.

Versu and Direct transmissions are offered with load-sensing hydraulics and a choice of 115, 160 or 200L/min outputs, with Hi-Tech offering a more basic open centre layout and 73 or 90L/min oil flows.

Control systems are mechanical for Hi-Tech and electronic for the Versu and Direct.

Up top, a new cab that takes its look and layout from the larger T series offers plenty of visibil-

All six models in the Valtra N series have 4 cylinder, Tier 4 Final AGCO Power engines with power ratings from 105 to 165hp.

ity with 6.5m2 of glass and has a noise rating not exceeding 70 decibels.

As expected from

Valtra, a choice of options includes heated front and rear screens, roof windows, hi-spec audio and

the reverse-drive Twin Trac system. Buyers can specify one or two cab doors and the SkyView

cab with larger rear and upper viewing by way of oversized polycarbonate windows.

Variant gets a large tick of approval TRACTOR MAKERS routinely

The new Claas Variant 400 series passed its test with flying colours.

submit tractors for testing and review, but its much less common for machinery.

So it’s interesting to see that harvest specialist Claas recently handed its new Variant 485 RC-PRO to the German Agricultural Society (DLG) for a series of practical tests.

These included application checks, practical harvesting of grass silage and straw and hands-on operation by farmers.

The testers were impressed by the overall performance of the baler -- travel speed of 3.6km/h, seven knives engaged and maximum bale

density in grass silage of 449.4kg/m3 at 38.3% dry matter.

The DLG test team also noted uniform bale density, from a firm core to the outer layers.

The new Claas Variant 400 series embody several detailed design changes to improve crop flow, bale shape and bale wrapping functions.

Field testing showed the machine was baling about 40.4 tonnes of grass silage per hour at a travel speed of 5.1km/h and 14 knives engaged including idling and headland turns. Spot flow rates of 165t per hour were noted.

Interestingly, the machine was

also operated at 800 PTO speed instead of the normal 1000 rpm speed, markedly reducing power requirement and cutting fuel use, while maintaining the same output and bale density.

On the practical front, six farmers rated the baler for practical aspects such as hitching, un-hitching, setting and operation, bale quality and maintenance.

Those tested particularly noted the ease of use of the settings menus and the trouble-free operation of the ISOBYS terminal.

The overall test rating was ‘good’.

Turn your existing feed system into an ID-capable system with Advantage ID ➠ The latest product in the Feedomatic range ➠ Replaces your old feed motors with quality worm drive DC motors on each hopper ➠ Quickly and easily transform your old system into an ID system ➠ No disruption to your production as Advantage ID can be installed between milkings

Australia’s Smartest Automated Feeding Systems Contact GRANT HUMBERT

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grant@feedomatic.com.au www.feedomatic.com.au

DAIRY NEWS AUSTRALIA APRIL 2017

MACHINERY & PRODUCTS // 25

Koreans worth a closer look WITH A production history that dates back 60 years and availability in New Zealand and Australia for 16 years, the Kioti tractor brand has carved a niche for itself with those who recognise good engineering at an extremely competitive price.

The latest models from distributor/retailer Power Farming are the RX 7030 ROPS and the RX 8030 ROPS and cab units.

At the heart of each machine is a 4-cylinder Daedong common-rail diesel, with turbo-charging, fuel injection and 2500cc displacement.

Delivering 70 and 80hp respectively, the engines are lively and responsive yet economical on fuel.

A wet clutch power shuttle transmission gives clutchless forward and reverse shifting, and the operator gets a choice of 24 forward or 24 reverse speeds. These are all synchronised, and easily accessed via the de-clutch button mounted on the main gear shift lever.

Speed charts indicate that in the important 4-12km/h working area, the range of speeds offers plenty of overlap and should prove capable in

the paddock. 4WD is available on demand and easily selected on the move by a dashboard-mounted rocker switch, which actuates the system hydraulically and combines with the rear diff lock system to ensure the toughest conditions are easily met.

At the business end, a 2-speed PTO system offers 540 or 540E speeds with auto mode which

switches out the PTO as the implement is lifted.

The rear linkage has telescopic arms and a healthy 2256kg lift capacity.

Hydraulic flow is from an open-centre gear pump setup offering around 70L/ min and combining with a separate power steering pump for total output of 100L/min.

The ROPS machines have a flat platform layout

which allows easy access to and from the seat. This should prove popular in livestock situations, where lots of movements are the order of the day.

For those looking for a few more creature comforts, the RX 8030 cabin model has a revised layout of the cab mounting system said to improve driver comfort.

– Mark Daniel

MCINTOSH BALE FEEDERS

BIG BALE SPECIALISTS Nimble tractor handles heavy loads JOHN DEERE IS launching a new series of nimble util-

ity tractors designed to meet the requirements of dairy farms.

With an optimised wheelbase of 2.25 m, the new 5R Series tractors combine a one-piece curved frame design with a low centre of gravity to facilitate front loader installation on-the-go, while still maintaining the best possible manoeuvrability at a turning radius of 3.75m, even when fitted with a loader.

The new 67.1 kW (90 hp) 5090R, 74.6 kW (100 hp) 5100R, 85.8 kW (115 hp) 5115R and 93.2 kW (125 hp) 5125R models are equipped with fuel efficient 4.5 litre John Deere PowerTech PWX engines.

These diesel-only 4-cylinder engines deliver 7.5 extra kW (10 hp) for transport applications via their Transport Power Management (TPM) system.

Customers can choose between three transmission options. With a shipping weight of 4.3 tonnes, the new 5R Series tractors can lift as much as 4.7 tonnes.

The open-centre hydraulic system is equipped with a standard 96 Lpm pump and is also available with a Pressure and Flow Compensated (PFC) 117 Lpm version. Whether they are mechanically or electronically controlled, four SCVs provide fast loading cycles.

For improved operator comfort, the 5R Series tractors are available with front axle suspension, featuring independent arms and infinite adjustment of +/-45mm that allows complete shut-off when required.

An optional maintenance-free mechanical cab suspension system is also available, which uses two adjustable shock absorbers to ultimately support the optional airsuspended seat. This seat is normally standard equipment on 6R Series tractors, and features 5 to 15 degrees of swivel, lumbar adjustment and an optional heating system.

McIntosh Bale feeders are designed with strength, performance and uncompromising quality to handle all types of bales.

All machines have been carefully designed give trouble free operation, easy use and reduce break downs for years to come.

OUR UNIQUE FEATURES     

Our twin ram lift system capable of lifting bales up to 1300 kg and gently places the bale into the chamber.

Roto cut and fine chopped bales can be held up over the chamber to remove net and wrap Wide dual sided feeding cradle, heavy duty roller chains and protected shafts to minimise wrappage.

High torque hydraulic motors with 1 ¼ output and 40mm drive shafts Heavy Duty axles and hubs with wide floatation tyres ( on trailed models )

WITH OUR RANGE OF 3PTL, 2 BALE TRAILED, TROUGH AND THE NEW MULTI BALE FEEDERS

WE HAVE THE RIGHT BALE FEEDER FOR YOU www.mcintosh.net.nz

STRENGTH / QUALITY / PERFORMANCE

FOR MORE INFORMATION OR TO FIND OUT YOUR NEAREST DEALER PLEASE CONTACT:

03 5625 1522 0418 515 510 86 ROBERTS CRT, DROUIN 3818 Phone

Mobile

DAIRY NEWS AUSTRALIA APRIL 2017

26 // MACHINERY & PRODUCTS

These Mules are no donkeys MARK DANIEL

UTVS HAVE become the Swiss Army

knife to farmers for lots of tasks.

While there are many brands on the market, the name ‘mule’ – coined by Kawasaki for its machine – has become the generic term for this type of vehicle.

First launched in 1988, the Mule 1000 had a 454cc petrol engine and 2WD, rapidly establishing itself as a must-have. It has evolved over the years with bigger engines, 4WD, hi-low transmissions and CVT technology.

The Mule of today features similar layout to the first examples, but that is where the similarities end.

Ideally suited to agriculture and industrial use, the Pro series machines of today are available in DX or FX variants – signifying diesel or petrol engines – with the former suited to work applications where a high-torque engine delivers performance and the convenience of on-site fuel compatibility, particularly on farms.

A ladder construction, wide body chassis combines with a 2345mm

wheelbase to offer stability and operator comfort, as well as manoeuvrability with a tight 4.8m turning radius.

Ground clearance at 265mm, combined with 26-inch diameter wheels and fully-independent suspension with double wishbones front and rear soak up imperfections and allow steady progress.

When the going gets seriously tough 2 or 4WD can be engaged ‘on the fly’ and combines with a fully-locking rear differential to maximise traction. For sensitive areas, the diff can be unlocked to minimise ground damage, such as in parks and gardens, while the front runs a limited slip set-up.

The Pro-DX has an all-new 3-cylinder, in-line Yanmar engine with liquid cooling, just shy of 1L capacity. It has a power output of 18kW and 52Nm torque and meets current Tier 4 emission regulations. With high torque at low rpm, the engine responds quickly to changing loads and combines well with the CVT to get up and go and quickly achieve the top speed of 55km/h, compared to the 40km/h of the old model.

A choice of high or low ratio is selected by the dash mounted shift

lever, and the transmission has an engine braking system for control on down-

hill sections. Braking is by hydraulic discs on each corner.

Given that the key role of any UTV is the ability to carry and tow, operators will not find the Mule Pro lacking. Offering the largest cargo bed in its class at 1375 x 1355 mm, carrying capacity is rated at 453kg.

Practicalities are taken care of with a full-sized, chequer plate floor, gas strut-assisted, tipping provision for

cargo dividers and a useful one inch square tie-down rail around the upper edge to allow bungees or tiedown strops to be used to keep the load in place. Down below, a 50mm ball receiver hitch is rated at 907kg.

Operator comfort is provided by a full-width, bench-style seat for three

adults. Each has a seatbelt and hand grips on the ROPS protective frame.

Standard specification sees half doors offering mud protection, easy mount and dismount, while bull bars protect bodywork from rough and tumble.

Controls are laid out logically, with drive functions, hi/lo/reverse selection and digital readouts to the right of the steering wheel, while the park brake with audible warning is situated to the left. Direction is controlled by a speedsensitive, power steering system that offers more assistance at slow speeds or while stationary and less as speeds increase.

There’s lots of storage – three recesses forward, a glovebox to the right, two drinks holders and room for a large bin under the bench seat.

For those looking for a more spirited ride, the Pro-FX variant has a 812cc, 3-cylinder petrol engine with four valves per cylinder and figures of 35kW and 65Nm torque.

Empowered to farm anywhere.

GALLAGHER SOLAR ENERGIZERS.

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All systems come with a 2-year warranty and ongoing tech support.

VISIT GALLAGHER.COM TO FIND OUT MORE OR VISIT YOUR NEAREST SUPPLIER FOR AN IN-STORE DEMONSTRATION.

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