Dairy News Australia June 2017

Succession planning – Lessons from successful transition PAGES 10-11 AUTUMN CALVING How clean is your calf shed?

PAGE 20

LEARNING CURVE Family doubles milking herd PAGES 16-17

JUNE, 2017 ISSUE 81

// www.dairynewsaustralia.com.au

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NEWS // 3

Poor milk price fuels great cow cull Sustainability rewarded. PG.09

ELEVATED CULLING rates have persisted in 2016/17 as cull cow numbers track 40% above the fiveyear average.

The culling of the national herd has been fuelled by poor milk prices and rising demand for beef.

In the 12 months to April 2017, 106,363 cows were culled, compared to 94,602 last year, according to Dairy Australia’s Situation and Outlook report, released earlier this month.

Dairy Australia senior analyst and S&O author, John Droppert, said the heavy culling, together with reduced confidence, was likely to constrain Australian milk production in 2017/18.

“Assuming current indications of improved farmgate milk prices and a continuation of favourable weather and input prices are borne out, milk production growth of between 2% and 3% is forecast for the coming season, implying a total of over nine billion litres,” Mr Droppert said.

“For the current season, Australian milk production has continued to close the gap with 2015/16, and is likely to reach 8.95 billion litres; about 7.5% below last season.”

Mr Droppert said the number of dairy cows sold to slaughter has decreased on a monthly basis since October 2016, suggesting a potential cow cull slow-down.

Cull cow prices continue to track well above the five-year average of 357c/kg and during the 12 months leading up to April prices increased a further 11% to average 457c/kg.

After seven months of consecutive monthly price decreases, cattle prices started to increase again in March, following the widespread autumn break and lower yardings.

The Meat and Livestock Australia Industry Projection for 2017 predicts higher beef prices will persist for most of the calendar year.

Supporting this, beef exports in 2016/17 are predicted to be the fifth highest recorded in Australia, although trends vary by

destination market.

S&O report author and Dairy Australia senior industry analyst, John Droppert, said the United States herd has started to rebuild after a period of liquidation, resulting in a 27% decrease in Australian beef exports to the US during the first quarter of 2017.

“Increasing US supply has added to export competition in Korea, resulting in a 21% decrease in Australian exports to that market.

“At the same time exports to Japan and China have increased on a year-to-year basis with Japan currently being Australia’s biggest market for beef exports.”

Perennial pasture mix. PG.18

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4 // NEWS

Murray Goulburn opens at $4.70 MURRAY GOULBURN will open the new season at $4.70/kg milk solids with a forecast closing price of between $5.20kg and $5.40/kg MS. The co-op said the final forecast is subject to various assumptions, including “dairy commodity prices, exchange rates and achieving cost out initiatives, as well as achieving milk intake of approximately 2.5 billion litres”.

The price is inclusive of the new Reward Program of 10c/kg MS and all other incentive payments.

MG has also announced a 2017/18 season opening FMP for the NSWSydney Market Region of 49.6 cents per litre based on the NSW reference composition of 3.9% butterfat and 3.2% protein.

MG Chief Executive Officer, Ari

Mervis, said that in setting the forecast, the co-op had taken a “prudent view on key assumptions for commodity prices”.

“Although global commodity prices have shown some recovery since this time last year, whole milk powder and particularly skim milk powder prices remain under 10 year averages,” he said in the letter to suppliers.

“This has been somewhat offset by firmer butter and cheddar prices. We have also had regard to Global Dairy Trade auction results over the past two months and current futures pricing, both of which suggest some ongoing price volatility in global markets.”

Mr Mervis said while the opening and forecast prices were an improvement on the current season, Murray

Goulburn’s performance remains below his expectations.

In a separate letter to suppliers following the announcement, Mr Mervis urged suppliers to stick with the cooperative.

“I would like to urge you to continue supporting Murray Goulburn through this period and through the strategic review.

“If you are considering supplying alternate processors, please do ensure that you are comparing detailed pricing rather than just the headline price and comparing apples with apples.”

Mr Mervis said that when he joined MG, he embarked on an extensive series of discussions with suppliers.

“I received a consistent message during those meetings that what farm-

ers wanted from MG most importantly was: removing the MSSP (clawback), providing an opening price early and opening strongly.

“Based on the feedback that I have received since (the) announcement, I realised that in this instance, two out of three isn’t good enough.

“However, as I’ve said to a number of you on various occasions, the journey to rebuild Murray Goulburn will require time and patience and relies on significant improvement to our business performance whilst retaining your milk supple.”

He said the co-op has begun a comprehensive strategic review which will look at all aspects of MG’s strategy and corporate structure, including the Profit Sharing Mechanism and capital

structure.

“I see this review as a fundamental next step to strengthen MG for the future,” he said in the letter to suppliers.

“While the previous decisions resulting from the manufacturing footprint review, including the announcement of three site closures were necessary, I do not consider them alone to be sufficient to move the business forward.

“Given the timeframes associated with the site closures, the expected financial benefits are not expected to be fully realised by MG until FY19.

“A further update on the strategic review is expected to be provided at the time of MG’s full year results in August.”

Low opening the final straw for Brian RICK BAYNE

BRIAN MCLAREN has

been a loyal Murray Goulburn supplier for 48 years but the latest price blow could be the final straw.

“Murray Goulburn has ruined me physically, financially and mentally,” the Woolsthorpe farmer said.

“I’ve had a gutful. You can only get belted over the head so often; you can’t keep coming back.”

Mr McLaren had been hoping for an opening price around $5.50 but more realistically expected $5.30 with stepups to boost it towards $6 later in the year.

However, the season opening of $4.70/kg milk solids with a forecast closing price of between $5.20kg and $5.40/kg MS has him “gobsmacked”.

Now Mr McLaren is weighing up options for transferring to another company, although he

admits his choices are limited.

“I’m looking elsewhere now but my options aren’t great. We will look at Saputo or the Midfield Group or give it away.

“At $4.70 and when you factor in the 10 cents promised for loyalty it’s $4.60, I can’t make a living; nobody can.”

“I’ve been a Murray Goulburn man for well over 40 years. I’ve been supplying them since the Grassmere factory closed and they initially came to the district.”

Mr McLaren has spoken to his accountant and says he will make a “calculated decision” on his future. “We haven’t

done the sums. We don’t want to jump out of the frying pan into the fire.

It has to be a commercial decision.”

Mr McLaren, who milks more than 700 cows, said that starting at the low price would cost him $480,000.

“We produced 480,000 kg/MS last year and if

we’re a dollar under our competitors that means I just lost $480,000.”

He remains frustrated about the co-operative’s problems.

“I understand they’re hamstrung in regard to what they can do, but I want to know why.”

“If Saputo are trying to source millions of litres

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to run a cheese factory; Murray Goulburn has one at Cobram – why can’t we sell the same product and chase an extra 10 million litres.”

The 65-year-old is now considering his future.

“I’m working my arse off for nothing. I don’t mind working hard but I want to be paid for it.”

DAIRY NEWS AUSTRALIA JUNE 2017

NEWS // 5

Another lost season for farmers RICK BAYNE

FARMERS HAVE been surprised and in some cases angered by Murray Goulburn’s lower than expected opening prices, however some are adopting a measured response.

MG will open the new season at $4.70/kg milk solids with a forecast closing price of between $5.20kg and $5.40/kg MS. Farmers had expected the price to start in the low $5s but while some say they will look at other supply options, others are putting their hope in early-step ups.

While disappointed with the opening, farmers are saying they understand MG taking a conservative approach to avoid the possibility of step-downs.

The co-op said the final forecast is subject to various assumptions, including “dairy commodity prices, exchange rates and achieving cost out initiatives, as well as achieving milk intake of approximately 2.5 billion litres”.

The United Dairyfarmers of Victoria said the price would be challenging for farmers.

“We recognise that MG is in a challenging situation trying to navigate its

way from the past into the future, but a $4.70 kg/Ms opening price presents a serious challenge for dairy farmers who are still recovering from the events of last year,” UDV president Adam Jenkins said.

“The importance now is for MG to deliver returns to farmers as soon as the returns are realised in the marketplace” Mr Jenkins welcomed Di Bowles Murray Goulburn’s “honesty and transparency” in releasing the conservative opening price.

The UDV passed a motion at its annual conference in May to call on milk processors to release their opening prices by June 10 each year, ahead of the season.

Mr Jenkins said the early release of an opening milk price showed Murray Goulburn had listened to industry and the farming community.

Farmers are saying they will review their numbers and not take any impulsive decision about supply.

Crossly farmer Karrinjeet Singh-

Mahil said farmers “should do the numbers before assuming the worst”.

“When we moved to MG they had the lowest headline price and still do, but when we did the numbers we were still financially better off because we got more for FMI, fat etc. We know of farmers who moved for a better headline price without doing the numbers and they would have been better staying with MG. You cannot compare apples with apples without doing your own numbers.”

“As an industry we need to change the way prices are announced so you can easily compare, but in the meantime we need to survive. And for us to survive, we need a strong co-op. If you do your numbers, you’ll find that MG’s price is a far more honest one than many others.”

Dianne Bowles from near Cohuna in northern Victoria, said the early announcement took her by surprise, but the price didn’t meet her expec-

Bega Cheese opens at $5.50 STEPHEN COOKE

BEGA CHEESE will open next

season at $5.50/kg milk solids, and has also included a step-up of 4c/kg butterfat and 10c/kg protein, to be paid this month.

Bega announced the price in the same week Murray Goulburn revealed its 2017/18 price of $4.70/kg MS. Executive Chairman, Barry Irvin, said the price “reflects improvements in the market while being appropriately conservative given the volatility that has been experienced in global supply and demand in recent years.”

Mr Irvin said Bega believes the price will give confidence to existing suppliers as well as attract new suppliers.

Fonterra will pay an “additional” monthly payment of 40c/kg milk solids on top of a forecast 2017/18 milk price of $5.30-$5.70kg/MS in a bid to retain milk supply. It had not announced its opening price at the time of print.

The additional 40c/kg will be available to all current, retired and recommencing suppliers, who were forced to take a pay cut last season after Fonterra severely and unexpectedly dropped their prices.

About 40% of suppliers took the Fonterra ‘Support Loans’ package which provided money (with interest) that would need to be repaid from 2018.

Instead of cancelling the scheme and repayments for those who have

taken it, or lifting the price paid for the 2015/16 season for those who hadn’t, Fonterra has essentially dangled a carrot of 40c/kg on a 2017/18 forecast price it has set itself, to retain supply.

Last month, Fonterra increased its 2016/17 forecast Farmgate Milk Price for its New Zealand suppliers by 15 cents to $6.15/kg MS. Fonterra Chairman John Wilson said the increase reflects the strong fundamentals supporting global dairy markets.

“World dairy prices have risen in recent months and as we near the end of the season we have more visibility and certainty which makes us confident of our $6.15 position,” Mr Wilson said.

Fonterra also forecast an improved Farmgate Milk Price of $6.50/kg MS for the 2017/18 season.

Burra Foods is offering a 40c/kg “cash injection” for new and existing suppliers who sign a three-year contract.

Burra Foods CEO, Grant Crothers, said current prices are unsustainable for the industry and positive signals are important for confidence.

Mr Crothers said Burra Foods is wanting to process around 350 million litres of milk next season, up from 300 million litres of milk this year and wants to see growth of existing suppliers complemented by new suppliers.

Burra had not announced next season’s opening prices at time of print.

tations.

“We’d asked for an earlier announcement, it’s just not a number I like,” Mrs Bowles said.

She said all farmers needed to do an income estimate and really compare milk company prices.

“It’s tricky because they’re all different but you need to do your numbers properly and know how they fit your business,” she said.

Mrs Bowles said Craig Dettling a preliminary estimate indicated that her farm’s flat supply should see it achieve prices in the upper ranges of the weighted average.

“We can’t make money at $4.70 so it’s not fantastic,” she said. “We had hoped for something starting with $5 but I suspect they have a bit more up their sleeve than they’ve opened with.

I would hope that’s not all they’ve got.”

“Coming on the back of some really hard years it’s a long way back to recover.”

Mrs Bowles added that MG was communicating with suppliers and, despite the disappointment that came with closing factories, was joining farmers in looking for efficiencies.

Macarthur supplier Craig Dettling said the price was lower than expected but he was taking a longterm outlook.

“We were hoping for $5 but we run a pretty low cost operation so we can get through,” Mr Dettling said. “Without the Co-op the industry wouldn’t be as strong.”

Mr Dettling said that while the price was lower than he hoped, he understood the reasons.

“When you look at the reasoning behind it with the volatility of the global market, the worst case would have been if they opened too high and had to step down again.”

“We just need to have any improvements passed on straight away.”

DAIRY NEWS AUSTRALIA JUNE 2017

6 // AROUND THE REGIONS

Queensland

Parmalat dispute taking toll QUEENSLAND DAIRYFARMERS

Organisation President, Brian Tessmann, says the ongoing milk price dispute between Parmalat and its suppliers is taking its toll.

“Since the beginning

of the year just under half of all Queensland dairy farmers have technically been without a contract despite still supplying Parmalat,” Mr Tessmann said.

“The ongoing milk price dispute between

Parmalat and the collective bargaining group that represents the majority of their Queensland dairy farmers, Premium Milk, continues to cause considerable financial and emotional distress to affected dairy farmers.

Compact

“This uncertainty has been compounded with the absence of the threecent per litre incentive in last year’s contract which is no longer being paid.”

Mr Tessmann said while reports suggest

refunds will be paid once the price determination is settled, many suppliers in their current state are really hurting.

“Like many farmers, I believed once the old contracts ended without agreement on December

But with all the productivity of a much larger machine.

31 last year that the arbitration process would then be initiated, progressed and finalised within a few months.

“Currently we are approaching the fivemonth mark without a contract resolution in sight and consequently no three-cent incentive refunds.”

QDO is legally prohibited from directly

participating in price negotiations. Mr Tessmann said more needs to be done to improve the efficiency and effectiveness of our collective bargaining groups.

“This should and will hopefully be addressed in the Australian Competition Consumer Commission’s (ACCC) ongoing review of the dairy industry.”

South Australia UDC milk powder already pre-sold AUSTRALIA’S NEWEST milk powder factory, the $80m Union Dairy Company plant in Penola in SA, will start production in July.

UDC Managing Director, Daniel Aarons, said much of the first two years of WMP and SMP production had already been pre-sold.

UDC is a joint venture between Warrnambool-based Midfield Group and agribusiness giant Louis Dreyfus Company. It plans to dry 30,000 tonnes/year, using milk sourced from the state’s south-east as well as south-west Victoria.

“We have worked very hard by way of running a series of workshops with farmers to ask what’s important as a milk model with payment,” Mr Aarons said.

“We will not step down on what we are calling our minimum guaranteed price. We are going to open at a very generous price and that will be a price set in concrete.”

Construction of the plant was 90% complete, with 40 staff recruited, he said.

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DAIRY NEWS AUSTRALIA JUNE 2017

8 // AROUND THE REGIONS

NSW Farm Visit to open farm gate to kids

Western Australia WA farmers receive lifeline

A NEW Farm Visit program aims to open farm gates across the country to connect children, the farm and the kitchen.

Farming friends Karen Sowter and Emily Neilson from Dungog in New South Wales’ Lower Hunter Valley have launched Farm Visit and they plan to roll it out nationally.

The program will link children, schools and Australian agriculture by opening the farm gate to create relationships, understanding and connection.

A former grain and corporate marketer now living on a beef farm with her husband Mark and sixyear-old son Samuel, Karen wants children to understand more about their food and the importance of supporting Australian agriculture and farmers.

Emily, husband Matt and their three-year-old son Joseph, set up a dairy farm two years ago and are passionate about the industry.

They are the first local dairy to open their farm gates so families and children can feed calves, watch cows being milked, make fresh butter and learn about the day in a life of a dairy farmer.

Farm Visit ultimately aims to

THREE SOUTH west dairy farmers

whose contracts with Parmalat’s Harvey Fresh were due to expire at the end of June have had these extended by a further six months, until January 2018.

The decision came off the back of an agreement by the three immediately affected suppliers who agreed to reduce their combined annual production over the winter-spring period.

From January, they will be offered new contracts the same as existing suppliers whose contracts are up for renewal at that time, which will align the Harvey Fresh supplier base moving forward.

WAFarmers Dairy Section Presi-

dent Michael Partridge welcomed the announcement, saying it was a sensible decision that would keep many long term and respected producers in the industry.

“Given WA has difficulties in balancing the annual spring flush of milk and also balancing the market in such an isolated state as ours, we consider the agreement to reduce production to be sensible,” he said.

“Parmalat has had discussions with all its producers regarding supply and demand issues and getting this more balanced, as have the other processors.”

There are currently 142 dairy farms in WA.

Gippsland GIPPSDAIRY WILL be running transi-

Kids at the first Farm Visit.

encompass all types of agriculture and Karen says it will give children a better understanding of the food chain.

The initial launch of Facebook and Instagram sites attracted 36

bookings within the first week.

Emily and Karen have launched a GoFundMe appeal to raise funds to cover start up costs, insurance, facility improvements and to provide materials for children.

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tion cow management workshops across the region in June.

Transition cow management is one of the most significant advances in dairy nutrition and production over the past 20 years.

A successful transition feeding program can improve cow health, welfare, milk production and reproductive performance and provide return on your investment within weeks.

Topics covered will include the latest information on key aspects of transi-

tion cow management; how to control milk fever; how to design and implement more successful transition feeding programs; and how to identify and troubleshoot problems with transition feeding programs.

All workshops are free for dairy farmers and run from 10am to 2.30pm. They will be held at Maffra on Tuesday, June 20; Foster, Thursday, June 22; Warragul, Friday, June 23; Korumburra, Monday, June 26.

Contact (03) 5624 3900 for more details.

Tasmania TASMANIAN DAIRY farmers continue

to undertake on-farm projects to protect and improve water quality, despite milk price challenges.

TasDairy has revealed there are currently 150 farms with Fert$mart plans and 107 farms with Clean Rivers projects (fencing stock out of waterways, effluent upgrades – most to distribute effluent over larger area).

At $5500 per farm, this represents $588,500 provided to dairy farmers for

on-ground works (including GST).

Recent tracking of dairy NRM projects shows there has been $3.5 million spent over the last five years in on-ground works for water quality/biodiversity outcomes, with over 63% of this investment coming from farmers (plus time and labour to physically do the projects).

In addition, there are many other capital upgrades undertaken with no NRM funding or through milk company support.

DAIRY NEWS AUSTRALIA JUNE 2017

AROUND THE REGIONS // 9

Western Victoria Sustainability work recognised at Great South West Dairy Awards THE INSTALLATION

next month of 400 solar panels on Max and Pam Wines’ farm at Ecklin South will bring the farm another step closer to self-sufficiency.

Over the past 25 years they’ve made strong headway in that direction, with hundreds of trees in shelter belts and effective re-use of dairy effluent for forage production.

Max admits his farming practices didn’t always find favour among local farmers, but the tide turned when they won the Colac, Corangamite and Wannon UDV Branches’ Natural Resource and Sustainability Award at the 2017 Great South West Dairy Awards.

The big ticket item this year in the farm’s fight for sustainability will be the installation of 400 solar panels.

While the initiative might have environmental benefits, Max doesn’t ignore the long-term

financial implications.

“We’re trying to cut back the power bills,” he admits. “The current cost of power is bad enough but it’s not going to come down with the closure of Hazelwood power station.”

The 98.4 kilowatt system will be used for irrigation, dairy and two houses. They hope to pay back the investment over six-seven years.

“I think we have a better farm from doing all the sustainability work,” he said.

“It was nice to get recognition with the award.

We were a bit overwhelmed.”

Other winners of the Great South West Dairy Awards were: ■■ Peter and Fiona Musson, Macarthur Gardiner Foundation Farm Business Manager of the Year.

■■ Isaac and Michelle Johnstone, Grassmere - Dairy Australia

■■

■■

Employer of the Year.

Jorge Massa, Cooriemungle - Murray Goulburn Employee of the Year.

Todd and Madeline Leddin, Toolong Cowbank Share Farmer of the Year.

■■

■■

Andrew Powell, Cooriemungle Warrnambool Cheese and Butter Factory Young Farm Leader of the Year.

Jess Fleming, Gorae WestVic Dairy Farm Photo of the Year.

Pam and Max Wines.

Northern Vic A NORTHERN Victorian cow has become the first to win the Jersey Australia / Semex Great Australian Challenge Supreme Champion title two years in a row.

Loxleigh Badger Iris 4, bred by Geoff and Natalie Akers of Loxleigh Jerseys stud at Tallygaroopna, was announced as the winner during the Jersey Australia AGM and annual conference in Lismore, NSW. Loxleigh Badger Iris 4’s performance in 2016 surpassed the previous year.

She had a top lactation record of 9764 litres, with 412 kg fat, 358 kg protein and a PI of 134. The previous year she recorded 8612 litres, 378 kg fat, and 306 kg protein and had a PI of 114.

The eight-year-old is classified as Excellent 94.

“It’s a great thrill to win again,” Mr Akers said. “She’s now the only one to win the Great Australian Challenge twice.

“She’s a larger cow with a good frame, dairy strength on the front end and an exceptional udder,” Mr Akers said. “She has a very strong pedigree…she’s probably the best bred cow we’ve had.”

The Challenge starts with local club on-farm challenges in five age group classes.

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DAIRY NEWS AUSTRALIA JUNE 2017

10 // FEATURE

Taking stress out of succession p MANDY McKEESICK

SUCCESSION PLANNING can be perceived as

“who gets what when” but successful succession is more about business continuation.

However, when that business is also a family with multiple members, both on and off farm, emotions and conflict can easily arise.

It’s a difficult process to achieve in a way where

everyone is pleased with the result, but it can be done.

Shane Gee farms 350ha at Jerry’s Plains in New South Wales, milking 440 Holsteins, in partnership with his parents and brother. The farm has been in the family for close to 100 years, taken up originally by Shane’s grandfather and passing to Shane’s father on his death.

The farm has seen several successions and with

a new generation entering the workforce has experience to share.

Growing up both Shane and his brother Paul has aspirations of taking over the dairy but “Mum and Dad wouldn’t let us go straight to the farm from school,” Shane says.

“It was the late 80s, early 90s when it was quite dry and they were flat out and doing it hard.

They wanted to build it up so it could support Although no strangers to succession planning, the Gee family used a facilitator.

two extra-people fulltime. They wanted us to go out and get a trade, to have new experiences and to work out if the farm was where we really wanted to be.”

“Paul became a fitter/ machinist and I got a trade as a mechanic. We

had a five-year plan for the farm but it kept getting turned over because the time was not right for everyone to come back so I ended up joining the police in Queensland.

“I did ten years up there but eventually I’d had enough, and whether

the five year plan was ready or not, I came back to the farm and we made it work.”

Making it work meant engaging everybody within the family and employing the services of a professional succession planner.

“We all sat down Mum and Dad, myself, Paul, Paul’s wife and our two sisters and their husbands – and talked about what we wanted, and having a facilitator was very important to that.

“The facilitator can run meetings and give them

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FEATURE // 11

planning

With a succession plan in place, the Gee family can concentrate on farming.

TAHBILK Beulah Tahbilk

Isobel Knight

structure and manage the different personalities.

They can tone down the overbearing ones and get more out of the quieter ones so everyone gets to have their say.”

Isobel Knight from Proagtive, a specialist succession firm for farming families, has been a succession planner for 17 years and concurs with Shane’s comments.

“Involving off-farm family members and inlaws allows everyone the opportunity to feel valued,” she says.

“It also ensures there are no Chinese whispers and potentially dangerous assumptions being made, and it allows for rational discussions when someone neutral is involved.

It is better to know what you are dealing with rather than pretend an issue doesn’t exist.”

Using a facilitator aids the difficult conversations that arise in any business change-over. When should the older generation hand over the reins?

Should farm management go to the eldest son?

Would a daughter be a more appropriate choice?

What skills can in-laws bring to the business?

How are off-farm members compensated?

And through these discussions different roles within the business can be assigned.

For the Gees this means Shane deals with the bank, finance, benchmarking and accounts – “if there’s a form to be filled out it seems to end up in front of me,” he laughs, while Paul looks after herd management and parents Colin and Rita are still actively involved in the day to day

running of the business.

Succession planning has also allowed the sisters to retain a connection to the land they grew up on, and is making provisions for the next generation to be involved with the dairy business.

Surprisingly there may be succession opportunities unique to dairy farms.

“It is very hard to establish oneself in a dairy operation without the capital backing of an existing family business and this should not be underestimated,” Isobel says.

“There can be financially rewarding arrangements made that wouldn’t exist in the commercial world.”

Those financial arrangements can lead to another advantage of early succession planning: increased profit.

“A study undertaken by Harvard in the late 1990s looked at family businesses across UK, USA, Australia and NZ,” Isobel says. “Those who had any kind of a written succession plan were up to 30% more profitable.”

So what advice would Shane give to those considering how to tackle succession?

“Have an independent facilitator and start early and work on it over a few years. It gives everyone time to have a proper think about what they want to do. Then you have a few meetings and talk it out and eventually you might come to an agreement that everyone’s happy with. But just make sure you do it.

“There’s no point in waiting till a will reading.

You’re better off knowing in advance.”

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DAIRY NEWS AUSTRALIA JUNE 2017

12 // OPINION RUMINATING

EDITORIAL

Farmers see through Fonterra’s cynical ploy

MILKING IT...

Squeeze the other one ASK THE person next to you where chocolate milk comes from. If they answer “from the carton” or “from the supermarket” pat them on the back.

But if they say “from brown cows”, do the world a favour and educate the poor dears.

Because apparently we, as a society, haven’t been doing a great job of telling people “no, brown cows do not magically produce chocolate flavoured milk”.

A recent survey of 1000 people by the Innovation Center for US Dairy found that 7% of adults – yes, adults – believe chocolate milk comes directly from brown cows.

We know educating consumers about food production is becoming part of a farmers’ job, but surely nobody signed up for this!

Knocked out FARMERS USING drones to monitor their farms may have a new challenge -- eagles. A wedge-tailed eagle has attacked and badly damaged a drone flying over farm machinery in Western Australia.

Farmer Leigh Nairn, at Binnu, north of Geraldton, was using a drone to check the set-up of his airseeder when the eagle swooped, grabbed the drone with its talons and knocked it out of the sky.

“I had the drone doing a bit of scouting over a paddock, checking the airseeder to see how it was all going in, and then out of nowhere this big wedgie came in and attacked,” he said.

“It was probably all but one or two seconds. The next thing I saw was my drone tumbling to earth.”

The drone camera was damaged and a propeller was knocked off.

‘We’ll see you right’

Tuck in with impunity

AN AMBULANCE service for cattle has begun in northern India’s Uttar Pradesh state in a bid to protect animals sacred to the country’s majority Hindu community.

The state Government announced the Cattle Healing Mobile Van Service and publicised a freephone number to help the authorities rescue cows in distress.

Each ambulance, which includes a veterinarian and an animal paramedic, will transport abandoned, ill or injured cattle to special shelters or take them to animal hospitals in the state capital Lucknow and four other nearby cities.

The service, expanded to go statewide, will also prosecute people who abandon cows that have dried off.

CHEESE LOVERS can breathe easy. Cheese, milk, and yogurt have been labelled ‘drugs’ of the food world. But are they truly so bad?

The European Journal of Epidemiology reports research that concludes dairy products – including good old cheddar – pose no increased risk of death from stroke or heart disease.

The large-scale review of 29 previously published studies, by scientists in the UK, Denmark and the Netherlands, found no links between dairy and milk and all-cause mortality, coronary heart disease or the leading cause of death -- cardiovascular disease.

The review looked at the diets of 938,465 participants over the last 35 years, 93,158 of whom had died. Their health was unaffected by dairy intake, whether high or low fat.

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

SOMETIMES YOU can be too smart by half.

Fonterra may have thought their play to retain supply by paying an “additional” monthly payment of 40c/kg was clever, but many suppliers saw it for what it was – a cynical ploy.

The extra payment will be paid on top of a forecast 2017/18 milk price of $5.30-$5.70kg and available to all current, retired and recommencing suppliers, who were forced to take a pay cut last season after Fonterra unexpectedly dropped their prices.

When Murray Goulburn announced last month it would repay funds paid by existing and retiring suppliers under the clawback scheme, in a move to stem a massive fall in supply, past form suggested Fonterra would follow suit.

After all, Fonterra followed a poor decision by Gary Helou and the Murray Goulburn board to pay more than the global market suggested was sensible. It followed them all the way over the cliff.

Fonterra said it was obliged to do so, under the ‘Bonlac Milk Supply Agency Agreement’, which means it has to match or better the price offered by MG. When Helou was sacked by the board – some of whom remain today despite their part in overseeing the colossal failure – MG initiated its infamous pub test-failing ‘Milk Supply Support Package’, or clawback. MG officially dropped the price, but paid more, which suppliers had to pay back.

Fonterra subsequently dropped its price a week later for the remainder of the 2015/16 season and announced its own clawback scheme – the ‘Support Loans’ package. About 40% of suppliers took this package which provided money (with interest) that would need to be repaid from 2018.

When Murray Goulburn announced last month it would repay funds paid by existing and retiring suppliers under the clawback scheme, in a move to stem a massive fall in supply, the ball was placed back in Fonterra’s court.

Instead of cancelling the scheme and repayments for those who have taken it, or lifting the price paid for the 2015/16 season for those who hadn’t, it has essentially dangled a carrot of 40c/ kg on a 2017/18 forecast price it has set itself, to retain supply.

The response from current and former suppliers hasn’t been kind.

Time will tell whether genuine anger in the farming community influences a change in Fonterra’s thinking, as it did with MG.

Editor Stephen Cooke

0427 124 437

editor@dairynewsaustralia.com.au

Publisher Brian Hight

Production Dave Ferguson Becky Williams Senior Journalist Madeleine Brennan

Web Cameron Wilson Published by RNG Publishing Ltd

Printed by Newsprinters Pty Ltd

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

WWW.DAIRYNEWSAUSTRALIA.COM.AU

Head Office Top Floor, 29 Northcroft Street, Auckland 0622, New Zealand Phone +64 9 307 0399 Fax +64 9 307 0122 Postal address PO Box 331100, Takapuna, Auckland 0740, New Zealand

DAIRY NEWS AUSTRALIA JUNE 2017

OPINION // 13

Yoghurt’s rainbow of flavours I’M OLD enough to remember a time when there seemed to be about three flavours of yoghurt: vanilla, strawberry and, if you want to be really fancy, tropical.

These days the yoghurt market is saturated, so dairy foods companies are getting deliciously creative in order to lure shoppers to their particular take on the thick and creamy stuff.

It’s quite overwhelming to stand at a yoghurt section in a major supermarket these days and make a selection: low fat, low sugar, no sugar, organic, probiotic, Greek, Swedish, local, liquid, flavoured, mixed with museli – and of course those individual serves with Disney and other characters on them which the kids won’t stop nagging you to buy (but which I

OFF THE SHELF MADELEINE BRENNAN

personally try and avoid due to the fact it’s mostly plastic packaging).

I’ve also narrowed the choice a little by giving up entirely on any yoghurt with artificial sweetener in it.

Sweetener may reduce the calories but for me, it also changes the taste, infusing the natural and wholesome qualities of yoghurt with a slight bitterness reminiscent of high school chemistry.

This preference appears to be a trend.

According to Dairy Australia, sales of unflavoured, traditional varieties of yoghurt have overtaken those of sweetened and flavoured yoghurts, and now account for more than 50% of the market.

Despite all the choice, good old fashioned natural yoghurt is very popular, as consumers embrace heathier alternatives.

But the other half of the time, it’s clear consumers are embracing the trend of yoghurt as an indulgent treat, similar to ice cream, with flavours such as coconut, coffee, caramel and chocolate and lemon meringue readily available.

Consumer trends are driving the trends in yoghurt

product development, according to Cassandra Dinino, marketing and communications consultant with Adelaidebased yoghurt company Moo Premium Foods.

Last year the company went national with its range of yoghurts and rice puddings, and under-

took extensive consumer research as part of a product and brand refresh.

“Consumers told us they wanted more gourmet and innovative flavours and they want a ‘better for you’ product as well,” Cassandra said.

The company responded, converting

from more traditional flavours like mango and boysenberry, and moving to more glamourous combinations such as orange and passion compote, sticky apple and organic honey, banana caramel sundae, and boysenberry and acai. (If like me you had no idea what acai is,

it’s apparently a ‘superfood’ from the Amazonian rainforest which is high in antioxidents and fibre.)

Cassandra says being locally-produced and Australian owned is another key trend.

“Many consumers are seeking local. That want to support Australian businesses and they want to support Australian farmers.”

As with milk however, it can’t always be that easy to determine if a product is truly local, in that it is both Australian owned and made.

Regardless, our tastebuds are grateful that there is something for everyone. And if the choice is too overwhelming, nothing beats a good dollop of natural yoghurt to satisfy a creamy craving.

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DAIRY NEWS AUSTRALIA JUNE 2017

14 // MARKETS

Poor policy delivers a butter spike IT’S STRANGE times for the global dairy market, and one of the crazier things we’re seeing is how the butterfat market has performed lately.

Prices have surged in recent weeks. As this article goes to press, butter prices in the EU are at record highs, which has knocked onto prices across the world.

How did we get here?

There’s been a gradual rise in demand for butter and dairy-based spreads over several years, after the messages to consumers about the health benefits of natural dairy fats cut through, dispelling myths about the advantages of vegetable oils.

We’ve seen that in the numbers for supermarket sales of spreads in Australia (sales of butter and spreads grew 23% in the five years to 2016), but that has also extended into wider usage in food service and manufacturing.

The rise of butterfat is a global phenomenon, evident in massive consumer markets of the US and Europe, including some recent high-profile decisions by major fast food chains to replace veg oils with butter.

The threat to the integrity of some brands from use of palm oil has also helped.

Demand has built in other markets as well.

Global butter trade grew 20% over the 5 years to

FRESH AGENDA STEVE SPENCER

It’s ironic. Reactive policy measures to “rescue” farmers by propping milk prices have created a chronic shortage of one of the industry’s rising product stars, and hiked the costs for buyers – which may in turn prompt reformulation back to alternative fats.

2016, and could have been greater if there was more supply from major exporters.

The change in EU’s export trade has been more dramatic – it grew more than 40% in the year to September 2016.

and worsened by a series of Government policies.

European milk supply boomed after the EU Commission removed production quotas.

Milk output grew so rapidly without those limits and with a perfect

from the Commission - to help stabilise markets and improve milk prices for EU dairy farmers – was to re-open an old device, an intervention program to take a significant volume of skim milk powder “off the market”.

However, the surge in butterfat prices in global markets is not simply due to a sudden lift in demand.

While demand has steadily built, the crisis has come because of a recent fall in supply.

Ironically, the situation is due to a glut in the supply of protein, which has mostly been triggered

season that an impressive stockpile of skim milk powder (SMP) quickly built, crashing prices across the globe for commodities.

Farmgate prices in Europe followed, tractors rolled into Brussels and milk cannons were aimed at police and government buildings.

The policy response

The resulting intervention stockpile of 350,000t of SMP still overhangs the market, with the Commission’s stated selling price well above the market since buying stopped.

Low SMP prices have discouraged the production of fresh SMP… and therefore butter, as the returns

from this manufacturing combination were much worse (and more uncertain) than those from cheese and whole milk powder.

In the second half of 2016, the Commission layered another reactive policy measure, offering cash incentives for dairy farmers to produce less milk – which worked – compounding the problem for butter buyers.

New Zealand’s lower milk out put from a wet season coupled with its perference for WMP and cheese hasn’t helped alleviate fat shortages.

EU milk supply is on the way back in 2017, now almost at prior year levels, yet butter output is still well down in preferences for milk use.

A recent further burst in prices came as a cold spring slowed the EU’s milk recovery, buyers expected the usual spring flush would bring better butterfat supplies.

It’s ironic. Reactive policy measures to

“rescue” farmers by propping milk prices have created a chronic shortage of one of the industry’s rising product stars, and hiked the costs for buyers – which may in turn prompt reformulation back to alternative fats.

Rather than the dairy sector managing a steady expansion in dairy fat demand across all market channels, it suddenly gets the chance to test the limits of hard-fought gains in demand at extreme prices.

More milk in New Zealand and Europe will help some stranded buyers in the trade. The future of SMP prices, which will be low for some time, hold the key to attracting more milk to make more butter.

The future of intervention powder is important, but becomes less relevant as it ages.

It reminds us of the famous wool stockpile – remember how well that turned out?

There are other strange consequences of

these freakish prices as a result of this glut/shortage dilemma. The values of pure protein and fat implied by product prices have taken the ratio of protein to fat below 1:1.

As the chart above shows, this ratio tends to sit between 1.5:1 and 2.5:1, consistent with milk price payment rates for protein and fat in southern Australia.

It would be a big call to alter payment ratios in response to these extremes, but stranger things have happened in milk pricing!

How will this unravel?

Demand for butter will slow at record prices, but by how much will be interesting, given the changes in buyer preferences.

When the full effect of higher prices reaches shoppers there will be a response, but it’s hard to say by how much as we’re in untested territory given the shifts in eating preferences.

• Steve Spencer is a directot of www.freshagenda.com.au

1300 767 596

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DAIRY NEWS AUSTRALIA JUNE 2017

MARKETS // 15

Farm numbers, confidence, milk supply all drop Export demand remains strong

Dairy NewS aUSTraLia june, 20

agribusiness // 1

Close to half (46%) of respondents nation2016/17 season at hand, ally reported taking a new the Australian dairy induscents/litre in March (AUD 41c/L) to With season 2011/12 only a few incremental change in milk production (year-on-year) loan or extending their try continues to deal Euro cents/litre (AUD 36c/L) in Ap weeks from ending, attention overdraft, while 30% have with profitability, trust is now Profit margins are under focused onand 2012/13 milk prices as farmrefinanced their businesspressure in confidence issues, US, in NZ Fonterra has announc ers consider strategies for theconcoming or and deferred obligations, although underlying suggesting that consolifidencedomestically-focused of farmers in their the final payout for the 2011/12 seas year. In some dating finances own businesscontracts and its incorhas beenbusiness cut from NZ$6.75-$6.85/kg regions, renegotiated GLOBALimpacT IMPACT and reducing leverage future remains robust. gLobaL to NZ$6.45-$6.55/kg will MS (AUD$4. porating lower prices and reduced ‘tier LAURIE WALKER JohN DropperT be a priority above expanMany farmers across $5.04). one’ access are undermining farmer sion for many. a number of regions conEffectively, global dairy markets confidencetinue andtosupply For exports have increased farms that had ceased However, even strugglestability. finanrebalancing.

Lower Shifts in private label contracts and promany farmers in export-oriented over the 12 months to production for at least 6 with tentative signs prices will bo cially and the wider slow production growth and stimul cessor rationalisation have seen milk regions, a lower price outlook relative to March 2017. of recovery the desire industry is facing ongoing months prior.

At the same time Aussuggests that amongstand many move and distrust demand, asto this occurs we will u companies adjust their intake requirethe currentfrustration season not only addsinto the This imports have culling together with manyments of the Victorian on andsee putathe lastrecovery.

12 of the supply chain. reported much lower out- next three years, but this mately price Key fact and pricing totralian meet dairy the changchallenges parts of doing business, but seems grown by even more.

Ausdairy farmers that exited months behind them, it This is confi rmed by is obviously highly depenlays on equipment and reduced confi dence are to watch on the global scene will be to contradict the positive medium term ing demands of a highly pressured retail tralian imports of cheese, likely to be the chief limthe industry had made seems the industry will be some of the findings of reduced intentions of cap- dent on business condirate at which milk production overs outlook of Asia-driven dairy demand marketplace. Lower contract prices and infant formula and butter, itations on production dealing with the effects the annual National Dairy the decision well before ital investments going for- tions going forward. slows in response to lower prices, a lack of alternative supply opportunigrowth. Farmer Survey; which the late season price step- mainly from New Zealand growth in 2017/18: 38% of 2015/16 for some time Many producers will ward. in south-east Asia andatthe Middle 2012 milk production in theLooking US those ties in aall market withevenflows.

Dairy Australia’s indicative outlook increased, as of downs in present 2015/16. challengeshave yet. of the current financial worr showed that trust in prolikely need least one or impact beyond next NDFS respondents on consumer the path East maintain consistently higher ecois up around 4% on 2011 for the year to limited manufacturing capacity.

Despite for southern farm gate milk prices – Australian exports of the The total number of • Laurie Walkerconfidence, is an cessors has been damtwo good seasons before nationally reported having season, 63% of farmgrowth, same products have either nomic rates thatincreased support April (leap year adjusted), early Victorian farms now thesedairy challenges, the underlying domesindustryeconomic analyst with Dairy and the va published in the(27% recent Dairy 2012: Sitaged of farmers considering pro- China’s nationally expectgrowth to reduced their herd sizes,whilsters remained fairly stable or sits attic 3899, compared to with have, or wouldis like increase production the duction. and respondents the Australian dollar. increasedin dairy consumption. How- ofAustralia. data suggests EU-27 also milk production market is stable, steady per-capuation andeither Outlook report, for an grown. as ofconsumption June 30 to change and 4141 farms Demand for exported dairy pro ita dairy and a growing finished the March 2012 quota year up ever, the surge in supply has outpaced opening price rangeprocessor), of $4.05-$4.40/kg This points to Austra2016 (there were also 21 profitability is at a three ucts remains a positive and will co MS and a full year average price range population providing a degree of cer- 2.3% on the previous year. New Zealand demand growth in the market. lian processors seeking to new registrations). year low (45% of farmers This situation has seen the scales tinue to grow with the middle class adjustments. production is widely expected to finish between $4.50 and $4.90/kg MS. The tainty beyond the current maintain ongoing export Faced with lower anticipate making a profit In theGoulburn seasons following the 2008 atthis season up 10% on last year - a huge tip in favour of buyers in dairy mar- large emerging markets such as Chi report considers the wider market picmarket relationships supply, Murray in 2016/17). market influence given 95% of NZ milk kets, with commodity prices retreat- with changes in diet and with increas financial crisis and subsequent ture and summarises the many factors servicing has announced that it will the expense ofcomUnsurprisingly, the recovery, farmers in is exported. Argentina is also enjoy- ing steadily over recent months. Butter urbanisation - and also in conjunct at play; the events key theme the12current sitsegments of the Austraclosemodity three milkprice processof theoflast lianhave domestic market. ing solid production growth, but a sig- prices are down some 30% from their with global population growth. Loca ing plants in northern regions months have impacted in the export-oriented seen solid uation being that of re-balancing Given the-importance Victoria and supply Tasma- growth (see farmer confidence, with global chart) with nificant supply gap in Brazil prevents 2011 peaks, whilst powder prices have the domestic market is supported b dairy supply chain. of long-term business nia, with lower through53% of survey responIn regions of Australia focused on higher-cost competitors in the North- much of this additional milk from leav- lost more than 20%. Farm gate prices growing population and stable p relationships to Australia’s put making continued dents overall feeling poshave subsequently been reduced in capita consumption. Whilst the da producing drinking milk, many farmers ern Hemisphere amongst those expand- ing South America. trade in high-value maroperation of these plants itive about the future of ing output as their margins increased. face a re-balancing market in thetoform kets such as Japan and Despite wider economic uncer- most exporting regions. The average market is currently a challenging pl uneconomic. the industry, compared tainty, demand has remained resilient basic farm gate price for milk in France to be a seller, all signs indicate that b This favourable weather con- Asia, of renegotiation of year’s supplysurvey. contracts This much of Southeast willseason, also entail 67% in last as importing countries like China and for example, dropped 12% from 32 Euro ance will ultimately return. ditions have further enhanced milk and reduced access to ‘tier one’ supply. it is understandable that MG ceasing production Culling numbers for processors would seek to 2016/17 remain about 40% of certain products and protect their business in categories altogether, as above the five year averthese markets where posit seeks to rationalise its age, despite a slowdown sible. production mix. since October 2016.

Going forward, AusThe business environThis follows heavy tralia’s reputation as a ment for milk processors culling in the 2015/16 reliable dairy trade partmay become yet more season, which was notaner has been questioned, difficult, with a number ble even before the late ASEAN-Australia-New given the industry turaustraLian of new or upgraded season DairY, price stepdown in moil and lower producfaciliApril.

FTAprocessing (AANZFTA). rice and wine exporters to Zealandmilk tion. Australia’s status ties comingsentionline in the Consequently, Malaysia are the biggest Austra-“Protectionist as a major exporter will next six months, meanlian milk productionment has over agricultural winners in a free trade ing stronger demand for a depend on a recovery of fallen sharply in 2016/17 goods is rife and growagreement (FTA) signed Australian milk producdiminished national milk and is likely to be around ing across theand globe, socompeti- tion in the coming seato provide portion pack between the two counaustraLian FooD pool, fiercer 8.95 billion litres; about in this context it is pleas(200-330ml) configuratries last month. company Freedom Foods sons. tion for milk among pro7.5% below last season. ing Australia has managed tion for beverage prodThe deal, signed after Group Ltd is to build a Recovery in Australian cessors.

As of April 2017, milk production is likely the diminished were 5810 registo forge anGiven agreement seven yearsthere of negotianew milk processing plant ucts. trust and loyalty tered dairy farms across with Malaysia that has between to be modest next season, tions, allows a liberalised cash in on growing DairyBase – track your farm’s business performance to over time.

The sooner you start,The the NSW location w with forecast growth farmers and processors, Australia, representing a dealt with some sensiprovide access to the mo icensing arrangement demand in Asia. sooner you’ll know more about your business. Go to dairybase.com.au 4.8% decline in total dairy this suggests we are likely of between 2% and 3% tive agricultural issues for Australian liquid milk The plant, to be built in sustainable and econom implying a total of over to see continued churn farm numbers from the not effectively covered by exporters and allows Australia, at willover be source of milk. Pactum h Dairy Standard Chart – oftrack Accounts makesbusiness a lot ofsoutheast sense.

Download dairybase.com.au 9.2 billion litres. in suppliers and added 6102 reported in Dairy DairyBase your– itfarm’s performance AANZFTA,” says Fraser. strong links to the Austr access for higher value the firstfinancial Australian greenand talk to your accountant about getting set up for the year.

This is based on conheadaches for companies Australia’s In Focus 2016. time. The sooner you start, the soonernew you’ll know more Sealing the deal: Malaysian trade minister Mustapha Mohamed “While under the retail products. fields expansion in UHT in tinued support from trying to secure ongoing The largest decrease DairyBase –business. track your farm’s business performance over lian dairy industry and w with Australian counterpart Craig Emerson afterabout signing the deal. your Go to dairybase.com.au Farm business management and DairyBase training equipping farmers to better manage supply makes the rebuild- favourable weather and agreement occurred in Victoria,AANZFTA expand its arrangement It guarantees Aus10 –years. time. The sooner you start, the sooner you’ll know more input costs, and the slowof relationships 263 dairy farmmost of ing their farm business. Get in touch with your Regional Development Australian agri- and with dairy farmers for tralian winewhere exporters Freedom’sProgram wholly about what’s Dairy Standard ChartGo of Accounts – it makes a lot of about business. to dairybase.com.au down instreamlining monthly cullalong the ers through licenses were cancelled. coming in youryour region. but also through technical Despite theup compleculture’sconfi keydence interests supply of milk. The new the best tariff treatment owned subsidiary Pactum ing rates since October sense.

Download at dairybase.com.au and talk to your Some 241 of these cancel- supply chain essential or so called ‘behind the tion of this agreement, of rules-of-origin dechad tariffs bound at zero, Malaysia gives any counAustralia will run the Dairy Standard Chart of Accounts –the it makes a lot ofyear. plant will increase scope 2016. It also assumes profor companies seeking a lations where ‘bulk canaccountant about getting set up for plant. new financial restrictions.” much remains to be done border’ processes and dairy and rice are two sec- laration try. It also allows open Some of its products for Australian milk supp cessors’ projections of stable supply. cellations’, processed in sense.

Download at dairybase.com.au and talk to your For more information and Regional Development Program– value-added, sustainab The FTA was signed on to marketing torsanwhereIn incremental access arrangements will be sold in Australia. improved farmgate milk for Australia’s farmers the face of lower improved August 2016,from effectively Farm business management and DairyBase training accountant about getting set up for the new financial to dairybase.com.au Maycontacts 22 in Kuala go Lumpur tap into the full potential for certain market access improve2023 for Australian The company says year. and export focused. prices are correct. milk supply, total ton- arrangements automaticrice biennial can– equipping better their farm business. Initially the plant wil byfarmers Australia’stoTrade and manage of the Asian region and commodities. ments have negotiwith all tariffs eliminated given Asian consumThe effects of heavy nagesbeen of Australian cellation of licenses for WITH THE end of the

The national milk pool is expected to drop below 9 billion litres.

Malaysia FTA benefits dairy Freedom

Dairy Farmers – let’s get down to business

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DAIRY NEWS AUSTRALIA JUNE 2017

16 // MANAGEMENT

Fast learning curve as family doubles milking herd GORDON COLLIE

DARLING DOWNS

farmers Chris and Amanda Scheuerle are on a fast learning curve with a new intensive feeding system set up to double their milking herd.

Moving to a total mixed ration fed in a shaded environment for cow comfort was a key driver for their ambitious 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.

But it has only been in the last two years that they have taken the opportunity to buy quality cattle as neighbours exit the industry.

WHO:

Chris and Amanda Scheuerle WHERE:

Kulpi WHAT:

Intensive feed system

Chris said they had no option but to intensify their controlled environment feeding as they aimed to milk 300 cows on the family property Banavin at Kulpi on the northern Downs.

The 260 hectare property has no irrigation and is now approaching its capacity to produce feed from an effective 130

hectares with the other half hilly and timbered country which is devoted to raising all the heifers they produce.

“We like to have plenty of heifers coming on so we can continuously cull the herd. Cows only stay if they are performing,” he said.

Chris joined his grandparents Ron and Val running the farm when he left school at the end of 1997 and he and Amanda are now working through a succession plan to secure their future in the industry.

“When I started we were milking 60 cows under a total grazing system.

“We introduced a partial mixed ration around 2000 as numbers grew.

The herd was transferred to our new pad-feed-

In the new cow shade shed Chris and Amanda Scheuerle with their children.

ing and permanent housing set-up in January this year.”

The herd increased to 200 milkers early last

year with 50 more cows arriving six months ago and another 50 just being introduced.

“I think a milking herd

of 300 is around our capacity,” Chris said.

The first self-composting shade housing completed is 80 metres by 18 metres with a 10 percent pitched roof rising to about 5 metres with an air gap down the centre.

Provision has been made for an identical structure on the other side of the central feed pad with each roofed area designed to accommodate about 150 cows.

The feeding area is a total concreted 15 metre strip with a 6 metre pad feed alley down the centre.

The cow standing areas on either side of the feed alley are being manually scraped, with plans to install a flood wash system using recycled water.

“Our expansion is still

a work in progress, and while we are still getting our cows used to the system, it has been a positive experience so far,” Chris said.

He likes the fact that the cows will have comfortable shade and only have to travel a few metres to the centrally located dairy for milking.

“We can keep the same good quality feed ration before the cows all the time. This has been the best way of us achieving it and we won’t be going back to grazing again,” Chris said.

The milking herd has been split in two with the fresh cows getting use of the first shaded housing to help maximise production during the hot months. Both herds get the same feed ration.

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DAIRY NEWS AUSTRALIA JUNE 2017

MANAGEMENT // 17 The feed pad and shade shed, which will be replicated on the left of this photo.

Cows on the new feedpad.

ing benefits with the herd split. The cows are not so crowded in the holding yard and they get through milking quicker with the lactation stage within each herd being more even.

The herd is mixed breed with about 80 percent Friesian base and a few Jerseys which helps keep the milk components up.

“We are focused on achieving around 27 to 28 litres of milk which seems to be a sweet spot for us.

It’s where we make the most profit,” Chris said.

Their farming focus is on cropping for silage to provide the bulk in their feed ration.

Crops are cut at the dough stage for maximum feed value with forage sorghum grown in

summer and wheat and barley grown in winter.

“We grow some hay, but rely on buying in a lot of good quality hay which has been sourced from as far away as South Australia.”

They buy in grain, preferring barley and corn when it is available.

Stale bread and dough sourced from a manufacturer in Brisbane is a valuable feed additive.

“It saves a lot on grain and we get through about sixty tonnes a month delivered in two trailer loads.

They aim for a consistent feed ration year round to maximise production with a typical mix being three kilos of grain, six kilos of bread and about 3.5kg of canola meal with silage and hay.

Chris Scheuerle pushing feed on the pad.

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DAIRY NEWS AUSTRALIA JUNE 2017

18 // MANAGEMENT

Perennial pasture suits hilly country believes strongly in the merit of using mixtures of pasture species, and has been sowing a range of perennial pasture types to cope with the wide variation of land types on his Mt Compass farm.

Perrin and his wife Kelly manage 180 dairy cows, grazing across 120 hectares of really variable pasture land in an 800mm rainfall area.

Their land varies from fertile peaty soils on the floor of Cleland Gully, through to non-wetting sands on the midslopes and shallower stoney ground on the hilltops.

Perrin explains how theirs is a very steep hilly block and that herd walking and machinery movement can be difficult.

WHO:

Perrin and Kelly Hicks WHERE:

Mt Compass WHAT:

Pasture innovation

However he sees the wide variation in land types as an asset. He is successfully using a range of perennial forages to cope with variable land type and also achieve a more even supply of forage throughout the year for the herd.

They operate Quickshift sprinklers to irri-

gate the more fertile valley paddocks and renovate these paddocks progressively every 5 years or so. But rather than sowing perennial ryegrass alone, they use a mix of ryegrass and white clover and the perennial herb plantain.

“The plantain seems to establish well when sown in autumn in mixes with ryegrass and is readily grazed down by cows along with the ryegrass,” Perrin said.

“I’m not sure whether including the plantain here increases total pasture yields, but reckon the pasture is more balanced for the cows knowing that plantain forage is renowned for higher mineral contents.”

Perrin also set up

sprinklers on a single new irrigation paddock with impoverished sand but was worried that ryegrass might not perform here. So he deliberately planted down a mix of soft-leaved tall fescue, plantain, ryegrass and clover and has been happy with the balanced pasture growth since achieved.

“The fescue was slow to get going but grows well here each summer, with other components bolstering winter growth and overall feed quality,” he said.

“I probably won’t bother with including fescue on the other, more fertile irrigation paddocks, but it has been a useful inclusion in my most challenging irrigation paddock.”

Plaintain working well as a component of irrigated ryegrass on Perrin Hicks’ farm.

Perrin’s family had previously been using perennial ryegrass over most of the dryland paddocks, and achieving 4 to 6 tonnes DM utilised pasture per hectare.

However Perrin has since been reseeding different areas to various pasture species and mixes, to better suit and capitalise on the diversity of soil types on his farm.

A sandy midslope paddock was spring-sown to a mix of lucerne and phalaris in the dry spring of 2015.

“It established well, with the lucerne growing greenfeed in autumn,

spring and summer and the phalaris providing good winter feed. The inclusion of phalaris also makes me less worried about bloat problems in grazing cattle.

“A further three paddocks were resown to this mix in spring 2016, and we plan to do more in coming years.”

Perrin has sown chicory, another deep-rooted perennial forage, in some of his degraded steeper paddocks. Spring-sown chicory establishes more quickly than the lucerne/ phalaris and although likely to be less persistent, yielded an extra 1

tonne DM per ha in the first year.

“I’m using chicory as an interim perennial forage in several steeper paddocks, sown in early spring to quickly upgrade previously degraded paddocks for extra feed and particularly extra out-ofseason feed.

“I will likely return to these paddocks in 2 to 3 years’ time, to control any remnant kikuyu and then resow a long-term perennial pasture.”

• This article was been developed as part of DairySA’s Hills & Fleurieu Forage Network project, funded by Dairy Australia.

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

PERRIN HICKS

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DAIRY NEWS AUSTRALIA JUNE 2017

ANIMAL HEALTH // 19

Small change in vacuum can make a big difference ROD DYSON

DURING A recent farm

visit, routine milking time testing of the milking machines in this dairy quickly showed that the system vacuum was at 39 kPa – very low for a highline swingover herringbone!

We immediately went looking for the dairy’s vacuum gauge, and after a brief Sherlock Holmes detective effort, we finally found the gauge way up high in the middle of a mass of pipework, facing towards one side of the herringbone.

In this position it was impossible for a person in the pit to read the gauge, and even standing on one platform of the herringbone, regular prior yoga sessions would have been needed to twist our bodies enough to easily read the gauge.

Once found, we could see that the gauge was reading 46 kPa, a significant difference to what was actually happening in the milking system.

A change in milking system vacuum level of this magnitude can result in changes to milking performance that you might readily notice - extra cup slip, difficulty attaching cups at cups on, clusters that do not drop off as easily at cup removal, unsettled cows, swollen or discoloured teats after cup removal, etc.

However, even smaller changes in vacuum level can have an effect, often long before the change reaches the stage where you see these more obvious signs.

We regularly see farms where an unnoticed change of only 1 - 2 kPa in the system vacuum level has had a significant impact on teat condition, greatly increasing the risk

of mastitis, but without causing any of the above signs!

These relatively small changes in vacuum are often difficult to notice from one milking to the next and can be very hard to define by eye on the dial of a typical analogue gauge - and if you are in the dairy shed every day, it is even more difficult to notice a small change!

Recently, at a couple of programmed farm visits we discovered that vacuum levels which had previously been set at the ideal level for the farm had unknowingly changed from this ideal

level. On most of these farms, that effect was immediately evident in our teat scoring, and on a couple of the farms, mastitis levels and cell counts had also started to increase.

What are the key lessons and how can we avoid these risks?

Vacuum regulators and vacuum gauges are not “set and forget”. Like all mechanical systems, they need to be checked and serviced regularly.

AMMTA milking machine standards specify that the vacuum gauge should be in a position where it is easily read.

Analogue dial gauges can be difficult to read, and are more prone to “sticking” – if you have to tap the gauge to read it, the gauge needs replacing!

Digital gauges usually have large, easily read numerals.

It should be part of every milking routine, to check the vacuum gauge after the plant has started to ensure noth-

ing has changed from the previously set level. If the vacuum has changed, a technician should be called to investigate why and reset the vacuum to the correct level.

Whilst it is possible to install monitoring equipment that will alert the operator to changes in vacuum, these systems are relatively expensive.

An effective option for most farms is to install a

digital vacuum gauge in a highly visible position and then to ensure that it becomes part of the milking routine to check the gauge at every milking, commonly immediately after start up.

This is an example of an installation clearly showing the vacuum level, and also that the vacuum in this dairy has started to “creep” away from the ideal level which has

been recorded on the wall below the gauge.

These installations are simple, relatively inexpensive and can help to prevent a change in your vacuum causing you costly increases in mastitis risk - talk to your milking machine technician about the best option for your plant.

• Rod Dyson is a veterinary surgeon and mastitis advisor at www.dairyfocus.com.au

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DAIRY NEWS AUSTRALIA JUNE 2017

20 // ANIMAL HEALTH

How clean is your calf shed?

A CRITICAL way to

reduce the spread of disease from one season to the next is by removal of soiled bedding and thorough cleaning of the calf shed. Ideally this should be done as soon as possible after the last calf leaves the shed.

There should be easy

access for machinery for efficient removal of soiled bedding. This may involve demountable pens with drop pins or clips, or slide doors to gain access to larger pens.

Manual removal of soiled bedding is timeconsuming and labour intensive and will ulti-

APIAM ANIMAL HEALTH GEMMA CHUCK

mately lead to the job not getting done. Calf sheds should be designed to reduce the time spent on manual labour which in itself reduces the risk of personal injury.

Disinfectants “will not clean dirt�

Disinfectants will not clean dirt and all organic

material including soiled bedding and dried manure must be removed prior to disinfection.

This means the pen walls and floors should be washed thoroughly with soap and water, and allowed to dry prior to the application of a disinfectant.

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Pen walls should be made of a non-porous material to allow thorough cleaning. Time and UV light alone will greatly reduce the number of pathogens in the environment.

There is an array of disinfectants used for varying purposes on dairy farms. Some are more suitable for housing facilities and others for feeding equipment.

It is important to know which disinfectant is suitable for what purpose and which mixing rates are safe to use and when.

In calf sheds, a disinfectant needs to be effective against pathogenic viruses, bacteria and protozoa such as Cryptosporidium parvum.

For viruses and bacteria, there are many disinfectants available.

However the oocysts (eggs) from Cryptosporidia are very stable in the environment and relatively resistant to chlorine-based disinfectants.

This can create a problem in calf sheds in that cryptosporidiosis can recur year after year.

Few products are registered for the disinfection of Cryptosporidia oocysts either overseas or in Australia and a holistic approach is required for control.

This includes twice daily pick up of calves from the calving area, rotation of calving paddocks, good colostrum management, having a clean calf trailer, all-in allout rearing system and clean ad lib fresh water.

Cryptosporidia thrives in damp conditions and calves with access to outside paddocks at a young age can be vulnerable, as the cleanliness of this environment is less controlled.

The main classes of disinfectants commonly used are: Oxidising agents (eg. Virkon-S): effective against many bacteria, a broad range of viruses, fungi, and bacterial spores. They are relatively stable in the presence of organic material and as such are commonly and effectively used to disinfect calf sheds. They can cause moderate skin irritation and damage some

metals.

Chlorine-based compounds (eg. Household bleach): eliminate most viruses, bacteria, moulds, and algae, but not bacterial spores. These compounds are good disinfectants on clean surfaces and are more active in warm water. However they can irritate the skin and damage clothing, rubber goods, and some metals. Chlorine-based disinfectants are generally compatible with soaps but should never be mixed with acids. They are ideal for disinfecting feeding equipment which has already been cleaned with soapy water.

Phenolics: generally active against bacteria, some viruses, and fungi, but not bacterial spores.

Phenolics have good activity in the presence of some organic material but are ineffective against rotaviruses which can limit their use in calf sheds.

Quaternary ammonium compounds: effective against many bacteria and some viruses, but not moulds or bacterial spores. Older quaternary ammonium compounds are good on relatively clean surfaces but newer quaternary ammonium compounds can retain activity in the presence of some organic material.

They are generally used for the disinfection of the vat or milking machine equipment.

Iodophors (iodinebased compounds): have been used as antiseptics and disinfectants for many years. Iodophors are good disinfectants, but are less effective in the presence of organic debris which limits their use as a disinfectant for calf sheds. They are generally less toxic than other disinfectants, but can stain clothes and some surfaces. They are ideal for the disinfection of calf navels (in a 7% solution).

Farmers commonly ask about the use of lime in calf sheds. Lime has a positive drying effect and raises surface pH, which helps inhibit bacterial growth.

However there is little evidence to suggest that lime reduces the TO PAGE 21

DAIRY NEWS AUSTRALIA JUNE 2017

CALVING // 21

Feeding calves to optimise future performance ON-FARM EXPERIENCES repeatedly affirm

research findings that getting heifer replacement calves off to a great start results from three equally important nutritional inputs.

Colostrum Feeding Implementing best practice with colostrum management sets up the calf’s immune defence system and leads to improved survival rates.

Adopting the 3Q approach achieves best outcomes. Quality of first colostrum: Brix refractometer score >21%.

Quantity: feed at least 10% of bodyweight.

Quickly: feed required volume in the first 6-12 hours of life.

Liquid Feeding Increasing the intake of milk nutrients in the milk feeding phase has become the focus of recent research. Cornell University has recently concluded that calves fed more nutrients from milk feeding had higher milk production.

Furthermore, milk intake had three times greater influence on milk production than gene selection. With the benefit of hindsight, many of the early weaning programs were entirely focussed on accelerating rumen development by restricting milk intakes, which overlooked the positive effects of improved milk feeding.

The recent trend of milk fortification (adding milk replacer to farm milk) has enabled farm-

ers to reduce milk feeding volumes and at the same time increase milk nutrient concentrations.

This has resulted in a group of healthy, well grown heifers that easily achieved target weights.

Dry Starter Feeding Introducing calves to nutrient dense starter feeds early in the milk feeding phase is a critical step in accelerating rumen development and transitioning them onto forage and grain diets.

Critical to early calf acceptance is smell, taste and texture to draw calves into nibbling their first solid feed. These attributes are often absent with many starter meals or pelleted options.

One notable exception is calf starter mueslis - these are very appealing to baby calves and are regularly used to get calves eating solid feed before transitioning them onto a standard meal or pellet option.

An often overlooked component of starter feeds is the composition of the premix.

Recent research from Phileo has shown that the addition of ActiSaf live yeast into the starter feed improved pre-weaning average daily gains (ADG) by an impressive 24% over the control group (refer graph).

This was largely achieved by improved feed conversion efficiency in a microbial active rumen.

A comprehensive bal-

How clean is your calf shed?

FROM PAGE 20

number of pathogens and it should be used in conjunction with a suitable disinfectant.

Regardless of the disinfectant used always read the label carefully and wear the appropriate personal protective equipment. All disinfec-

tants used for calf sheds as a control measure for disease should be registered by the Australian Pesticides and Veterinary Medicines Authority (APVMA). • Dr Gemma Chuck is a veterinary advisor at Apiam Animal Health.

anced premix containing ActiSaf, essential vitamins, bioavailable trace minerals, macro minerals, buffers and Bovatec will further enhance heifer growth, health and condition.

In addition to getting colostrum and liquid feeding right, farmers

are encouraged to review their dry starter feeding program and take a nocompromise approach by introducing the highest quality muesli product to kick start calf starter intakes. • Article supplied by Provico.

DAIRY NEWS AUSTRALIA JUNE 2017

22 // CALVING

Never miss a calving with Moocall A SIMPLE device under-

pinned by a complex algorithm can alert farmers via text message that a cow will calve within one hour.

Moocall Calving Sensors, developed in Ireland and available in Australia through Agri-Gene, are easily applied to a cow’s tail and can accurately predict when it will give birth.

It does this by measuring tail movement patterns triggered by labour contractions.

When they reach a certain level of intensity over a period of time it sends an SMS text alert to a mobile one hour prior to calving.

After calving, the sensor can be moved to the next cow. It is adjustable to any size tail.

Moocall sensors retails for $435 each, which includes 12 months of service (including support and SMS text messages).

The device was first launched in 2015. Since then, more than 23,000 sensors have been sold in 38 countries. This growth looks likely to be accelerated after Moocall was selected to participate in the Pearse Lyons Global Agritech Accelerator run by biotech company, Alltech, this year.

Moocall was one of 10 companies selected from

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183 applicants (from 38 countries) to participate in the program, culminating in a pitch to an audience of 3000 at the Alltech One17 Ideas conference in Kentucky last month.

It is the idea of Alltech founder and president Dr Pearse Lyons and was open to start-ups that have already raised funding and are ready to go to market.

Moocall co-founder Emmett Savage said the resources and expertise that were made available to him through his participation in the accelerator program has been instrumental in the growth and development of his company.

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“The Accelerator has been massive for Moocall as a business, and for me personally,” he said.

“The program offered us tutoring, training, pitch coaching, and they’ve opened up a world of contacts to help spread

Moocall around the world.”

Moocall and the other successful applicants took part in a 15-week mentorship program aimed to accelerate their business development.

These companies now have access to Dr Lyons and other senior executives of Alltech, which has a presence in 129 countries.

Alltech Chief Innovation Officer Aidan Connolly said: “(These businesses) want access to our footprint, our market knowledge and our contacts.

“We have a very strong network of people we can bring in who may be potential customers, distributors and even investors in these startups,” he said.

• Alltech funded Stephen Cooke’s attendance at the Alltech One Conference

Meningie farmers rely on HotCow HEATH AND Alana Williams and Heath’s parents Geoff and Rosemary operate Treeton Farm at Meningie in South Australia. They milk 450 cows off 280 hectares. They use HotCow self adhesive patches on all cows as a major part of the herd’s mating program.

The farm receives an average 450mm of rain. They grow all its milkers feed requirements without any irrigation. The cows have access to pasture but are also fed a partial mixed ration on a feed pad.

Calving takes place in three groups, in February, June and October. Cows are AI mated, starting with a double PG and mating for one week. Cows that do not come on heat, are given a CIDR and later inseminated on its removal. Over an eight-week mating period, they achieve 75-80% in calf. Cows deemed not in calf move on to the next group.

Heath says that the AI program requires a cost effective and reliable heat detection aid. He has tried most brands but now uses the HotCow self adhesive scratch off patches on all cows. The patches are applied firstly following the double PG and then again after the CIDR removal.

Calf rearing is done in three groups over the year as a consequence of the three calving periods.

Heifers are fed grain to about 8 months of age and are AI mated following a double PG program and HotCow tag.

• Article supplied by HotCow.

DAIRY NEWS AUSTRALIA JUNE 2017

CALVING // 23

Has your dry-off increased the risk of mastitis at calving?

ROD DYSON

MOST OF the spring calving cows have now been dried-off and will be enjoying their “annual holiday”.

This is an ideal time to pause briefly, reflect on the dry-off and consider whether any adjustment to the calving management strategy might be beneficial.

Given the difficulties of this season, all costs have been closely scrutinised and treatment cost at drying-off has been no exception.

As a result, some farms have needed to compromise at dry-off in terms of cost.

The treatment options for cows at dry-off will have included antibiotic dry cow therapy, internal teat sealant (or a combination of both), whole herd therapy, selective therapy, and maybe different choices of these options for different cows or groups of cows.

We can consider the impact of a compromise in terms of the two broad goals for dry-off treatment – the treatment of existing infections & the prevention of new infections.

Understanding how any changes to your treatment protocols may have influenced cure rates of existing infections and/ or the prevention of new infections will allow you to consider your options at calving.

For example, if you elected not to use an internal teat sealant, the effect will be on the prevention of new infections, because the role of internal teat sealants is to provide an improved physical barrier to infection.

The major role of antibiotic dry cow therapy is obviously the treatment of existing infections, but it can often also enhance the prevention of new infections in cows that have been treated.

Hence a change may have an effect not only in terms of curing existing infections, but also to some extent on the pre-

vention of new infections in those animals that were treated.

But this is not the whole story!

The actual dry-off process plays a significant role in the prevention of new infections, because how a cow is dried-off influences the quality of the natural teat plug that forms in each teat canal in the few days after she has been dried-off.

A couple of key questions may indicate if that process was not ideal.

Have you seen any cows drip milk after dryoff ? Have you had any swollen quarters, clinical cases of mastitis or sick cows after dry-off ?

If so, it is likely that there will be an impact on the risk of mastitis at calving!

For most farms, drying-off is one of the biggest influences on the risk of mastitis at calving and in early lactation, so if you think your dry-off may have increased the risk of mastitis at calving, what can you do?

A well constructed calving management plan will certainly help to reduce the risk of mastitis at and shortly after calving.

A discussion with your Countdown trained vet and advisers is likely to explore the key risk factors outlined in the Countdown Farm Guidelines for Mastitis Control.

1. How can you minimise the exposure of teats to environmental contamination?

2. What is your strategy to deal with cows that drip milk before calving?

3. How do you manage cows, especially heifers, with udder oedema?

4. Do you milk freshly calved cows and heifers as soon as possible after calving (preferably within 12 hours)?

5. How can you minimise the exposure of fresh cows to environmental bacteria after calving?

6. How will you rapidly detect and treat clinical cases of mastitis early enough to reduce the risk of spread?

Commonly these strat-

egies involve little or no expenditure, but may require a change in management.

Take the time to discuss and explore your options with your vet & advisers to see how you can get the best result.

Any supporting information that you can bring to a discussion with your adviser, e.g. milk culture results,

clinical case records, etc., will significantly impact on the value of that discussion.

No matter what option you decide on, prevention of clinical mastitis and new mastitis infections at calving has got to be a good outcome for the rest of the lactation!

• Rod Dyson is a veterinary surgeon and mastitis advisor at www.dairyfocus.com.au

DAIRY NEWS AUSTRALIA JUNE 2017

24 // CALVING

Calf rearing skills in high demand WHEN LISA Hicks and

partner Graham Sorensen opted for a career change in their early 40s they followed their passion for farming.

With a great deal of enthusiasm and a focus on education, they worked their way up the ladder and soon became renowned for quality.

Hicks’ calf-rearing skills are a key component of their success.

Contract milking a herd of 690 cows in the central plateau near Ohakune, on one of New Zealand’s highest altitude farms, is a challenging engagement in a climatically harsh environment; snow cover in winter, very cold winds and lots of rain are common.

But she wouldn’t have it any other way. She loves the 403ha of the Atihau-

Farm facts ■ ■

■ ■

■

403ha farm at Ohakune, New Zealand 690 crossbreed and Friesian cows; about 170 calves Pasture: ryegrass and clover, crops (turnips) Analysis: tow-behind pasture meter, rain measurement, herbage and silage tests, annual soil tests Feed strategy: pasture and some silage; muesli, 20% pellets, 18% pellets, Calflyx, Crystalyx (Easy breather & forage plus). Good uptake without rejection, all-round improvements including weight gain for well-grown heifers.

Whanganui Incorporation’s AWHI dairy where she runs the milking operation with great skill, infectious enthusiasm and much success.

Thanks to a host of improvements, the first season already brought record production levels and a sight firmly set on

best practice and ongoing improvements across all areas. Success is also due to Hicks’ outstanding calfrearing skills which she has honed over the years and which are in high demand. Thanks to three full-time and two casual employees she is now able to pass the baton, share

Calves are well cared for and fed.

her expertise and give back to the farming community. “It’s good to be able to pass on practical knowledge,” she says.

“It’s building the industry and supporting the farming community.”

She is a powerhouse in upskilling her peers, be it through her role as a con-

venor of the Dairy Women’s Network (DWN) or by opening the farm to WWOOFers, students from the Nippon Veterinary and Life Science University in Japan and other volunteers. Unsurprisingly she attracts top-notch farming students.

She champions DWN

teaching modules and such events as days, which can improve skill levels and align with Hicks’ focus on quality, evident in her operation, e.g. no cryptosporidium or scouring.

Her calves are well housed, cared for and fed.

Her approach is tried and proven, she says. The 170-odd calves get colostrum immediately after they’re born “within the golden hour” and with tube assistance if need be.

“We have the necessary manpower on the farm… so we can attend to newborn calves quickly.”

Her feeding regime includes quality colostrum twice a day for two weeks, then once daily.

She also adds muesli from day one plus straw. After four weeks she introduces

the calves to 20% pellets, then 16% pellets before moving them onto pasture.

Quality is foremost: extensive analysis (rapid pasture meter, rain measurement, tests for herbage, silage, soil, etc), a new in-shed feeding system and carefully documented processes for calf rearers.

A closed Facebook group for staff allows them to communicate issues, discuss solutions and implement them without delay.

After weaning, the calves are moved onto the incorporation’s nearby farm where they weigh in at 100kg and are raised on pasture. From there, they eventually make their way back to Lisa once they’re in calf, starting the cycle afresh.

Heifers need care at milking AFTER CALVING, heifers are often uncomfortable because of swollen udders (oedema), and may be difficult to move, handle and milk out.

For young cows calving for the first time, the milking routine is a new experience.

It takes about two weeks for most heifers to establish a quiet, reliable response to milking. Milking staff must be patient and gentle during this period, to maximise production, minimise milking times and reduce risk of injury to milkers and animals.

Extra labour may be required at calving time.

Choose the heifer pre-calving management most suitable for the herd.

Some practical and highly effective ways to prevent mastitis in heifers include: ■ Using internal teat sealant about four weeks before the planned start of calving.

■ Spraying teats with normal teat disinfectant two-three times per week for the last three weeks before calving.

■ Picking up calves twice daily and milking animals within 9-12 hours after calving.

The choice of strategy for an individual herd will depend on: ■ Gap in performance between incidence of clinical mastitis and industry targets.

Costs, potential risks and likely benefits of each approach.

■ Availability of infrastructure for safe administration of internal teat sealants to heifers pre-calving.

■ Opportunities to teat spray regularly before calving.

■ Labour availability to pick up newly-born calves twice per day and bring animals to be milked.

Herds experiencing more than 16 cases of clinical mastitis per 100 heifers within the first two weeks of lactation (or eight cases per 50 heifer calvings) should consider ways to reduce heifer mastitis.

Discuss options and potential costs with your veterinarian. Use of anti■

biotics in heifers at calving time is not recommended due to high costs and the risk of antibiotic residues in milk.

It’s also important to train heifers in the milking area before calving. It takes about two weeks for heifers to familiarise themselves with the surroundings of the milking area and entry and exit routes, and to establish a quiet, predictable routine.

To maximise production and minimise risk of injury to milkers and animals, milking staff must be patient and gentle during this time.

The first two weeks of milking can be made a lot easier if heifers are trained prior to calving, starting with

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just walking to the dairy yard and holding them for a short period, building up to turning on machines and walking them through the dairy.

Take this opportunity to teat spray.

Using an internal teat sealant in heifers can also be the time to familiarise heifers with the dairy and yards four-six weeks before calving.

Take your time moving animals into the farm dairy – don’t rush. This minimises injury to udders and teats, and contributes to cows being comfortable during milking.

Encourage the co-operation of the cow by gentle animal husbandry – don’t rush.

DAIRY NEWS AUSTRALIA JUNE 2017

MACHINERY & PRODUCTS // 25

Feed times slashed on large farms MARK DANIEL

THE MCINTOSH 4-Bale

MultiFeeder has made a name for itself in Australia, winning with innovation awards at the FarmWorld and Elmore Field Days in 2016.

Now it’s clear the machine has the potential to make a serious dent in feed-out times on larger farms.

Built around two large scale box section profiles that run through the bale cradle, the design is said to keep the centre of gravity low, offering good stability and allowing the tyres to be placed closer to the centre line, ensuring they don’t run over delivered feed.

A walking beam axle fitted with 11.5/80 x15.3 tyre equipment ensures the machine travels well without the

McIntosh 4-Bale Multi-Feeder.

need for a large tractor, and operation is carried out with only two double acting spool valves.

Many of its design details ensure it can deal with a variety of bale formats and shapes, and give it a long working life.

The feeder section comprises a HD motor drive with a 30mm drive shaft, and it works with 12,000lb zinc plated feeder chains that carry bolt-on angle

iron slats fitted with specially profiled teeth to ‘tease out’ the bale. The floor area is also made from fully galvanised steel and is enclosed to minimise wastage.

In operation, bales are lifted by the rear mounted spears which use twin lift rams to lower the bale completely into the cradle, from where the backstop pushes the bale forwards, before retracting for the next bale. Three

bales can be prepared for feeding and a fourth can be carried to the feeding area on the forks -- good for a large mob.

Attention to detail is there too, e.g. a fully enclosed drive shaft which eliminates any wrapping of the crop, easy access greasing points, a standing area to allow easy removal of the film and net wrap and, importantly, a bin to store removed debris.

Wrapping taken to new heights WHILE MOST bale-

age is baled and wrapped in combi-style machines, there remains a place for standalone machine that follows the baler around the paddock.

Irish manufacturer McHale is hugely successful with its Fusion machine, so it makes sense to use its wrapping technology in developing the new Orbital machine. At its heart is a patented high-speed vertical wrapping ring that increases stability for the

film dispensers enabling the machine to run at about 40rpm, and apply six layers of plastic to a 1.25m diameter bale in about 25 seconds, achieving an output of at least 100 bales per hour.

In operation, the machine is offset to the right of the tractor, and once contact is made with the lift arm a fully automated cycle starts, firstly with the bale being lifted into the wrapping ring. A patented design has the forward roller

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overlap. Once wrapped, the bale is gently lowered to the ground, with the option of a vertical tipper to place the bale on its strongest face.

The Orbital can wrap bales from 1.1 to 1.45m diameter by way of its patented tip roller that can be adjusted to maintain a position so that dispensers stay central to the mid-point of the bale to maintain the correct overlap at all times.

Film loading is via the

Orbital baling machine in action.

left-hand side through a safety gate, and after the first film roll is replaced an index button automatically brings the second

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weight of the machine and up to two bales, and is said to require a tractor of only 50hp and a minimum oil flow of 35L/min.

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‘dropping’ to allow a smooth transition from the ground to the wrapping position, and a resultant lowering of the centre of gravity which helps promote stability on sloping ground.

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DAIRY NEWS AUSTRALIA JUNE 2017

26 // MACHINERY & PRODUCTS

Side-by-side hits sweet spot

Jeep Wrangler with more bite MARK DANIEL

MAKING A statement on the road

might require, say, a Citroen 2CV or a Bugati Veyron. But in utes you either settle for a Ranger or Hilux or pick something to stand out from the crowd.

And stand out you will if you hand over the moolah for the Jeep Brute Sport. It won’t so much be a case of ‘keeping up with the Jones’, as driving over them.

American Expedition Vehicles (AEV) takes a Jeep Wrangler Unlimited and does a factorysanctioned upgrade/conversion, taking attention to detail and finish to the next level.

Starting with the original Wrangler chassis, they chop in front of the rear axle and insert 59cm of metal to increase the wheelbase, then add a further 49cm behind that axle to make room for the well-side body.

And some body it is, with 1530 x 1550mm dimensions, an injection moulded liner, slip resistant coating and multiple tie-down points.

Then AEV bolt on goodies in the shape of HD front and rear fenders, the latter with an integral 26L clean water tank, skid plates, spotlights, upgraded water pump and a musclebound Warn Zeon winch up front.

You won’t get a rear-view camera and radar, a challenge given the vehicle’s 5.5m length, especially if you’re trying to park in town.

But this truck’s 273mm of ground clearance – a challenge to getting into the pilot’s seat -- will give you excellent visibility in all directions and to each corner of the vehicle.

The cabin is pure Wrangler Unlimited, neither spectacular nor offensive, and a perfectly adequate place to take a ride.

Seats are comfortable and supportive, the original Freedom popout roof panels are retained, and instrumentation is adequate and supplemented by AEV’s instrument cluster.

Shod on with 17-inch alloy wheels with valve protectors, and sporting 35-inch diameter BF Goodrich mud tyres, the ride on-road ride is surprisingly good given the 2400kg kerb weight and the elevated position, and

is probably helped by the extended wheelbase.

The DualSport suspension package takes everything in its stride, the only slight negative being a little road noise from the block-pattern tyres.

When you hit the dirt the Brute really comes into its own: pull the stubby shift lever to 4H, point it to where you want to go and just go there. At an off-road training facility we found nothing that was too taxing for this truck --water, grass, mud or gravel.

Looking at stats, you will wonder if this vehicle makes any sense, with a 3600cc Pentastar V6 petrol engine pushing out 209kW power, 347Nm torque and consuming 15L/100km.

The 5-speed auto sees 100km/h come up in about ten seconds, so this is no rocket-ship. But it’s different from the pack, as succinctly explained by a man found looking at a higher-spec Brute Rubicon as we sadly handed our test steed back to the distributor.

Said he, “All my neighbours and mates have Ford Rangers; we want to buy something different.” That summed it up nicely.

FOR YEARS the quad market has been nibbled at by side-by-side (SxS) vehicles with their better carrying capacity and driver protection and, depending on options, shelter from the elements.

The Honda Pioneer 500 has a good following among people looking for a compact machine: dimensions 1270mm wide x 2605mm long and a kerb weight of 485kg; it’s easy to manoeuvre and light on the ground.

Using componentry carried over from the venerable TRX 500 quad, a 475cc single cylinder engine delivers 29hp from its mounting low in a robust ladder-framed chassis.

A conventional transmission has five forward and one reverse speed, with shaft drives to front and rear axle differentials.

A maximum speed of 65km/h is complemented by engine braking delivered by a shaft-drive set, and the machine has no belt drives to wear or break when pushed hard.

For the 2017-18 season several upgrades should find favour with users, particularly an auto-shifting function in the transmission.

Allowing the ability to operate the machine in a set-and-forget mode, the

transmission smoothly shifts through the gears under acceleration, and downshifts as speed is reduced. It is selected by a dashboard mounted switch, and the operator can override the function at any time using paddle-shifters under the steering, or select manual shifting if required.

Also upgraded is the suspension: dual-rate springs in all corners act with the dual wishbone suspension to offer a smooth ride with up to 295mm of travel.

Testing the machine over several days and about 100km on a large dairy farm in central Waikato brought an extremely positive response from all operators.

Their key observation was “you sit in the machine, rather than on it”, getting a feeling of safety and stability, probably enhanced by the substantial roll frame.

Also getting a big tick were the half doors with safety nets and torso protection bars, easily opened with quickrelease door knobs.

Operators said the maximum speed of 65km/h was more than enough for a dairy operation, and they noted the ultralow first gear was well-suited to following cows down a race at idle.

The windscreen and roof options tick the boxes.

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