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FEBRUARY, 2012 ISSUE 22 // www.dairynewsaustralia.com.au

BACKLASH Farmer fury at levy options PAGES 4-5

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

NEWS // 3

Low input prices to offset dollar FARMGATE PRICES this year –

Victorian farmer John (pictured) and Bev Shepherd and Gino and Maria D’Augello have formed a cluster farm in Kyabram.

PG.21

SA farmer Travis Telford employed a calf rearer when increasing their herd – a decision that has paid for itself. PG.26

including the opening price of the season – will again depend heavily on exchange rate movements, according to Dairy Australia’s Situation and Outlook Update released this month.

Although major banks forecast a high Australian dollar compared to the US dollar and further volatility in the currency markets, which would negatively impact next year’s opening price, input prices look like falling.

DA Manager Strategy and Knowledge Jo Bills said the most positive driver from the Update is the outlook for input prices, which provide a significant opportunity for protecting farm margins in the coming year.

“In particular the record Australian winter crop in 2011, combined with carryover supplies and

building international stocks mean ample grain is available to dairy farmers, and prices will continue to slide,” Bills said.

International demand for dairy has remained stable despite deteriorating world economic conditions.

“While Chinese imports of whole milk powder slowed in 2011, total Chinese dairy imports increased more than 20% to a little over one million tonnes,” Bills said.

“Sales to other key importing regions in south-east Asia, Russia and the Middle East remain consistent.

“Consumption in troubled European and US markets has also proved resilient, a positive for international market balance.”

Although demand is steady, Bills said increasing supplies to the international market is having a negative

impact on dairy commodity prices.

“All major milk production regions around the world are increasing output in response to improvements in farm gate prices in the past two years, and generally favourable seasonal conditions.

“With supply growth likely to outpace demand over the next 12 months, commodity prices will continue to come under pressure,” Bills said.

Despite the current uncertain international economic conditions, Rabobank believes Australia is in the box seat to take advantage of a growing global dairy market set to be the envy of the food world.

In the report Global Dairy Outlook: Show me the money, Rabobank has examined who will profit from the constantly changing environment of the dairy industry, focusing on the next five years.

Rabobank senior dairy analyst Michael Harvey said growth will be unevenly spread, generating important new dynamics.

“This will sustain an era of trade growth and provide a substantial opportunity for many farmers, traders and processors in export regions,” Harvey said.

“The Australian dairy sector is well placed to take advantage of these market opportunities given its close proximity to growth markets and a stable exportable surplus of milk.”

With most of the growth in consumption volumes expected in regions that are already short of milk, such as China and South East Asia, Harvey said a significant share of supply in the coming years will need to come from export regions.

World milk growth hurting prices, p19

SA farmer Robert Henningsen has installed his 8th automatic milking machine, enabling him to milk 500 virtually on his own. PG.30

NEWS ������������������������������������������������������3-15 OPINION ���������������������������������������������� 16-17 AGRIBUSINESS ������������������������������18-19 MANAGEMENT ������������������������������ 20-25 ANIMAL HEALTH �������������������������� 26-29 MACHINERY & PRODUCTS ��������������������������������������30-33 MOTORING ��������������������������������������������� 34

A new mobile hydraulic tipping crush is revolutionising how hoof trimming cows and bulls, and infusing teat seal in heifers, is done in south-west Victoria. See page 27

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

4 // NEWS: DAIRY LEVY

Farmers query levy increase at roadshows FARMERS HAVE questioned presenters at the Dairy Industry Levy Poll roadshow as to why there is no status quo vote on the ballot paper.

Dairy Australia chairman Max Roberts, DA CEO Ian Halliday and Australian Dairy Farmers president Chris Griffin have all taken part in the roadshow, which has travelled to all states.

The purpose of the meetings has been to inform levy payers of the work Dairy Australia performs, funded by their levies.

Question time at the Leongatha, Vic, meeting was dominated by questions regarding the lack of voting options.

Griffin addressed two meetings in

Western Australia on the same night, explaining why ADF and the Australian Dairy Industry Council (ADIC) back the 10% increase.

“There has not been any increase in the levy rate since 1997,” Griffin said.

“The Consumer Price Index (CPI) has risen by more than 36% since that time. The effect of inflation over the years has significantly eroded the buying power of levy funds raised.”

Griffin milks 360 cows at his farm at Westbury, in Gippsland, and said a 10% increase in the levy would remove an additional $45 from his monthly milk cheque.

He said it was money well-spent.

factors that affect income growth and demand.

“Grain supply and availability is growing nationally but volatility in pricing will remain due to international supply and demand.

“For example, producKeeping the levy at the tion of biofuels still looms as a threat to dairy. same rate for 20 years is not “Australia’s farming sustainable – Chris Griffin systems can manage most climate change scenarios, services as well as severely constrain but policy decisions need to be flexible its ability to respond to emerging chal- to allow those systems to adapt further.

“Likewise prices and export returns lenges.” Griffin said while the demand outlook is positive, markets will be more remain subject to policy changes in volatile because of non-food related major producer countries (like the “Keeping the levy at the same rate for 20 years is not sustainable.

“If the levy rate was left unchanged again it would compromise the delivery of Dairy Australia’s programs and

Give us the option at least TERANG DAIRY farmer

Joe Giblin believes he probably always would have voted for a 10% increase in the levy poll, but he definitely would have liked the option.

“It’s wrong for them not to have a status quo option but I can see the reasoning behind their decision not to offer it,” Giblin said.

“If there was that option, everyone would choose to keep it where it is.”

Giblin said his business, which he runs with wife Julie, is in a good position but nobody knows what impact the current financial problems in Europe will have, or whether the milk price will drop.

“Over the last 12-18 months, we’ve been in

real consolidation mode to buffer what could happen,” he said.

“We have to justify every cost spent. That would have been the same for the levy poll - I would have needed to analyse

“I’m happy with what Dairy Australia is doing but what it lacks at the moment is effective communication, and that’s been the problem for the last five years.

“They need to better educate farmers on how the levy has been spent.

“We have to justify “Telling farmevery cost spent. ers there has It’s the same for the been a $3.30 return on every levy poll.” $1 spent, as they did recently, was really bad. People whether it’s worthy of me want to know where their supporting 10% or not.” $3.30 is.

Giblin is a former board “It’s a great statemember and vice-chairment to use in a political or return on investment man of WestVic Dairy, sense, but when it comes which is responsible for to farmers it needs to be overseeing Dairy Austrasold in a way that demonlia-funded extension programs in western Victoria. strates to them a physical

improvement with a time line.”

Giblin said the following example would be more beneficial.

“Explain to a farmer that spending $100 on an electric fence reel and taking 10 minutes a day to allocate a certain amount of grass to their cows over 30 days could lead to an increase in their bottom line of $500 for the month.”

Western Victorian farmer Joe Giblin would have liked the option of retaining the current levy amount, even though he probably would have voted for the 10% increase.

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EU) and to fluctuations in currency and finance markets.”

Griffin said water policy would also continue to be a key driver of dairy viability and success and the financial implications of an Emissions Trading Scheme and carbon tax remain to be quantified.

Griffin told the audience the levy remained unchanged at the last levy poll in 2007 based largely on drought and financial conditions facing industry at that time.

“At the time it was acknowledged that the levy would need to be reassessed when conditions improved,” he said.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

NEWS: DAIRY LEVY // 5

No vote leaves industry in dark THE DAIRY industry would be in an

unprecedented position should the majority of voters choose the “no levy” option in next month’s Dairy Service Levy Poll.

Many farmers are angry that the Poll Industry Advisory Committee did not give farmers a choice to retain the levy at its current rate of $3200 per million litres of milk produced.

The Committee decided that a 10% increase was the minimum amount necessary as there has not been any increase since 1997. The Committee said the Consumer Price Index (CPI) has risen by 36% in that time.

The other options were a 15% rise in the current levy and “no levy”.

Farmers have told Dairy News Australia they would have chosen the status quo option if there was one, but will

choose the no levy option as a protest.

A majority of “no levy” votes will put the dairy industry in uncharted waters.

In accordance with the Dairy Produce Act 1986 and the Dairy Produce Regulations 2006, Dairy Australia must make recommendations regarding the dairy service levy to the Federal Agriculture Minister.

These recommendations must be in accordance with the results of the dairy poll and acceptance of recommendations, or any subsequent change of the dairy levy, is at the discretion of the Minister.

However, current legislation does not specify what the Minister may advise if the result of the dairy levy poll is a “no levy” option.

The Minister’s office said it was not

appropriate to speculate about this outcome.

However, a spokesman said the minister would give due consideration to all matters surrounding the operation of the dairy levy, including whether the

A majority of “no levy” votes will put the dairy industry in uncharted waters. recommendation was in accordance with the results of the dairy levy poll, the Dairy Produce Act and any associated regulations.

Nullawarre, Vic, dairy farmer Michael Spitse believes a “no levy” vote would force the Government to restructure Dairy Australia, effectively forming

a new research and marketing body.

Spitse had previously gathered signatures before last year’s Dairy Australia AGM in a bid to have a status quo option added.

Chris Griffin, Australian Dairy Farmers president and Poll industry Advisory Committee chair, said it would be up to the Agriculture Minister to decide what would happen in the case of a “no levy” vote.

“If people vote no I would image there would be no dairy services and no matching funding from Government,” Griffin said.

“If the industry doesn’t support research from its own pocket, I can’t imagine the Government will want to invest its $17 million either.

“Zero levy means an industry decides not to invest in its future. I have

faith farmers value industry investment and research.”

Spitse said a majority “zero levy” vote would not simply see the Government walk away.

“What sort of Government would walk away from biggest exporter in the state?” he said.

Farmers should already have their Dairy Industry Levy Poll ballot papers and have until March 16 to submit them to the returning officer.

These can be faxed or posted, but must arrive by close of business on March 16 to be eligible.

After the close of voting, the returning officer will count the votes and declare the preferred levy rate. This rate will be considered by the Federal Agricultural Minister, and if accepted apply from July 1.

No Levy will trigger review: farmers A GROUP of western district

dairy farmers is planning to vote for 0% levy in the Dairy Services Levy Poll.

They are opposed to the exclusion of a status quo option on the ballot. Nullawarre farmer Michael Spitse and Noorat’s Edward Conheady had previously gathered a petition of 126 signatures from the area calling for a status quo option.

Spitse presented the signature at the Dairy Australia AGM and he and Conheady later held a meeting with Dairy Australia CEO Ian Halliday and Chair Max Roberts to discuss their concerns.

“Of those 126 signatures, they are all good people, there were no so-called agitators,” Conheady said. “None of those signatories are against research.”

Conheady, a prominent industry figure who operates major operations at Noorat and

Garvoc, said farmers were still recovering from a 40% drop in the milk price 2 1/2 years ago.

“Dairy Australia says they haven’t had a rise (in the levy) for nine years. Well we had a 40% drop and that takes a long time to recover from.

“DA didn’t lose any money from that price drop because they are paid by the litre produced.”

Conheady said most farmers would fund DA but they can’t afford to pay more right now.

“We are right at the door of a lot of other costs.”

The group of farmers, including Doug Chant, Colac, John McConnell, Terang, and accountant and former dairy farmer Kevin Ashworth, Koroit, believe a no vote will also force a review of Dairy Australia and its research and marketing programs.

“A no vote will create a restructure,” Spitse said.

Chant: “It will trigger a complete independent review on how it operates and what it can do.”

The group believes the zero vote was placed in legislation as a safety net for farmers if they were unhappy with how their funds were being spent.

They say it would not be the death knell of government funding or industry research and development.

“What sort of Government would walk away from the biggest exporter in the state?” Spitse said.

“Saying no will give the Government the right to step in and discuss how it should be operating.”

The group does agree with Dairy Australia on one thing in particular.

“All levy payers should take the time to vote and make their voice heard,” Ashworth said.

Western Victorian dairy farmers Michael Spitse, Nullawarre; Doug Chant, Colac; John McConnell, Terang; Edward Conheady, Noorat; and accountant and former dairy farmer Kevin Ashworth, Koroit.

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

NEWS: BASIN PLAN // 7

Basin Plan struggles for community acceptance MURRAY-DARLING BASIN boss Craig Knowles has been warned that irrigation communities have not “accepted” the draft basin plan.

Victorian Farmers Federation Water Council Chair Richard Anderson said the Murray Darling Basin Authority still has a lot of work to do and Knowles’ public comments were unacceptable, premature and wrong.

“We are half way through the consultation period and only one meeting has been held in Victoria so far,” Mr Anderson said early this month. (Public meetings would be held in Swan Hill, Vic, Mildura, Vic, Renmark, SA, and Goondiwindi, Qld, later in the month).

“Irrigation communities are fighting in November. It recommends 2750 gigahard to find some balance in the plan. litres of irrigation water needs to be The Draft Plan, in its current format, returned to the river system.

The South Australian Government threatens food production and the viability of rural communities.

“We recognise the “Irrigation communities are need for a plan. But fighting hard to find some what we are saying is balance in the plan.” that the Draft Plan in its current format is unacceptable to communities in north- has said the figure falls well short of the 3500-4000GL target needed to ern Victoria.

“The shared reduction figure is keep the river healthy for years to causing uncertainty within the south- come, while NSW farmers have said the MDBA ignored their requests and that ern basin.”

The MDBA released its draft report the plan to cut 2750GL from the river

system would jeopardise farming and food production.

Independent MP Tony Windsor, who chaired the federal parliamentary committee into the handling of the initial guide to the draft Basin Plan, believes this plan could fail without consensus from all states.

“I think it’s probably a 60% bet that it will collapse now because of South Australia and New South Wales - not because of the commonwealth, or the politics in (Canberra), but the statebased politics could potentially kill it,” he told ABC radio.

Anderson said that the shared reduction savings required by the Authority

should not be taken away from productive agriculture.

“Buybacks will destroy food production, towns, jobs and livelihoods.

“The MDBA needs to commit to creating water savings through environmental works and infrastructure.

“Victoria has already contributed its fair share of water.

“I hope that Mr Knowles listens closely to irrigators in Swan Hill and Mildura when he visits them so he can get a sense of understanding that the Draft Plan is short-sighted and bad for regional Victoria,” Mr Anderson said.

How the plan affects you Page 9

What’s the actual figure?

GOULBURN VALLEY dairy farmer Jim McKeown has a simple question for the Murray-Darling Basin Authority.

“How much water to you actually need for the environment?” he asks.

“Tell me the figure, prove it to me, and I’ll work with you to achieve it.”

He’s not confident of a straight answer. The new Murray-Darling Basin Plan, released last November, is seeking 2750 gigalitres of irrigation water for the environment, but it does not explain how it derived that figure.

It is lower than the figure of 30004000GL called for in the initial plan, released 12 months earlier. And far lower than the 7600GL the Wentworth Scientists said was needed.

McKeown expects he would get a similar response to a question asked to a MDBA staff member at a recent public forum.

He said when the staff member was asked how they plan to deliver the envi-

ronmental flow through the Barmah Choke there was silence.

“They didn’t know. What do they do in Canberra?” he asks. “It was a straight forward question.”

The Goulburn Valley will be one of the hardest hit districts under the proposed Basin plan, which effectively suggests removing 537GL from the region, 95GL more than the initial guide.

McKeown said the uncertainty of the plan was creating the most concern in the district.

“There is nothing in the plan that tells me what they are going to do. They just say they want 2700GL to flush out to sea. Then they’ll go back and have a look in 2015 to see if they need more.

“And if we go into above average rainfall, what are they going to do with it?”

McKeown milks 320 Holstein cows on 200ha at Yarroweyah.

“We’ve proven you can farm here

without irrigation water but you won’t make any money.

“We got to the end of September in the first year of the drought and we had no hay, no water, no feed, and the paddocks looked like that track,” he said, pointing to the ground.

“We had 320 cows and 100 young stock to feed. I rang a bloke and said how much hay do you have in the shed?

I’ll take the lot.

“The Basin Plan will have that same impact on the area. We did it to survive short-term, and that was three years.”

McKeown told Environment and Water Minister Tony Burke at a meeting in the district last November that he could take his water but the Minister would have to take his cows and farm too “because it’s worthless without it”.

“I’d like to get Craig Knowles here and emphasise what we do. Emphasise that you take water away and we’ve got nothing.”

Jim McKeown

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

NEWS: MURRAY-DARLING BASIN PLAN // 9

What the Basin Plan means for you DARYL HOEY

FOR ALL its headache-

system, where most dairy farms are. Its preference is to buy another 970GL-odd for the shared downstream component described above, with the balance met with savings on projects such as the Northern Victorian Irrigation Renewal Program (NVIRP).

While the buyback tenders do not affect the reliability of an individual farmer’s entitlements, they do reduce the total pool of water collectively available for irrigation, trade and carryover in any given year.

Even in a year when water is abundant and cheap, we can see what this might mean operationally.

Thanks to the large carryover from 2010/11, dairy farmers by and large have effectively had well

inducing complexities, the Murray-Darling Basin Plan in practical, on-farm terms boils down to two simple questions for dairy farmers.

First, will there be enough water on the market for me when I need it at a price I can afford?

Second, will enough farmers be left to share delivery costs so that the system remains affordable?

If the draft Basin Plan is accepted in its current form, then the answer to both questions is ‘No’.

To understand what it means for day-to-day farm operations and business planning, it helps to understand the basic numbers. The draft Basin Plan essentially proposes to recover 2750GL of water, split The Basin Plan between the should not be based northern Basin (390GL) and the on a number. southern Basin (2370GL). over 100% allocation These two targets are this season – yet half-way then split into two comthrough, many dairy farmponents: in-valley tarers are now entering the gets for each river valley temporary market to top to meet its own environmental needs from its own up.

The reasons are varied, water resources, and an but essentially everyone additional shared “downwants to maximize homestream” target (143GL in grown feed to make more the north and 971GL in milk at low cost, make the south). The “shared” some money and maybe water will be recovered start paying off those big from anywhere across the debts from the drought. north or south deemed The question is how cost-effective; buyback we maintain the momenis the Government’s pretum next season, without ferred method.

The dairy industry that carryover boost. The does not support 2750GL answer is greater reliance as a target. The Basin on the temporary market Plan should not be based to top up – a market 721GL on a number, but how to smaller in an average achieve improved enviseason than before. ronmental outcomes in Now fast forward smarter ways than just to a repeat of, say, the stripping water out of pro- extremely low allocations duction. of 2008/09 season. ImagOur position reflects ine the small pool of total the fact that dairy will be water allocated then being among the worst-affected 17% smaller again in, for commodity groups if the example, the Goulburn Government keeps going and Victorian Murray systhe way it has been. tems where the GovernThe Government has ment already owns 17% of already bought 721GL in high reliability shares. the southern-connected Continued on pg 10

Australian Dairy Industry Council taskforce chair Daryl Hoey says the current Murray-Darling Basin Plan will raise water prices.

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

10 // NEWS: MILK WARS

Supermarket ombudsman calls grow THE AUSTRALIAN

Food and Grocery Council has backed the Australian Dairy Farmers’ call for a supermarket ombudsman.

The ADF called for a mandatory Code of Conduct for supermarkets to be enforced by an ombudsman as part of its submission to the recent Senate inquiry into supermarket pricing.

It reiterated its claim this month in the wake of the Government’s response to the Senate inquiry.

Now, the AFGC says the latest discounting of

fresh produce by Coles is another reason why the Federal Government should appoint a supermarket ombudsman to enforce a Supermarket Fair Trading Code of Conduct.

Coles has announced it will discount a range of fruit and vegetable items by as much of 50%.

AFGC chief executive Kate Carnell said it was concerning the latest fresh produce price cuts were not being driven by supply chain competition or lower costs of production.

“If these current ‘price

manufacturing – this latest move will obviously impact small producers and spells danger for manufacturing, jobs and regional communities.”

Discounted Carnell said this products like milk once again highthe need are being used as a lights for a regulated loss leader.

Supermarket Fair Trading Code of Conduct enforced by a supermarket ombudscould be a significant loss man to create a more level of both processors and playing field for primary producers,” Carnell said. producers and manufac“We’ve already seen the impacts of price discount- turers in their dealing with Coles and Woolworths. ing on food and grocery wars’ continue, the profitability of Australia’s food manufacturing sector, as well as farmers, will be eroded and the result

This measure has been outlined in AFGC’s 201213 Federal Budget submission.

“Australia and New Zealand has the highest levels of supermarket concentration in the world, delivering significant market power to major supermarkets and making it increasingly difficult for suppliers to negotiate reasonable trading terms and compete with the growing levels of private label products.”

Recent Australian Bureau of Statistics figures also reveal what the ADF

has long claimed, that discounted products like milk are being used as a loss leader to attract shoppers.

The latest consumer price index figures show prices for items like tea, coffee, breakfast cereals and biscuits rose in the three months to December 31.

Consumer watchdog Choice said cheap milk and fruit and vegetables was a marketing ploy to get customers in the door.

“They are just loss leaders,” a Choice spokesman said.

“Shoppers are naturally attracted to those prices, but once you are in the store you just don’t go for that $1 milk or the cheap bread. You throw other products into your trolley.”

Carnell said producers were frustrated that lack of competition made it hard to negotiate reasonable trading terms.

“A very large chunk of the discounted prices are being paid for by pushing price back into the supply chain to the manufacturers and the farmers,” she said.

What the Basin Plan means for you Continued from pg 9

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And then imagine how much smaller again, if the Government goes ahead and buys another 971 GL of water now available for irrigation through allocation, trade and carryover in an average year?

Modelling for Dairy Australia shows that with the 721GL already lost from the collective pool, milk production in the GMID alone could stabilise at 1.8 billion litres a year, well below the predrought average of 2.3 billion litres. The challenge will be to boost productivity to cover the gap, but stay in business with higher production costs.

Milk production could then dip further to drought-like levels of 1.6 billion litres if the 971GL “shared” downstream target is met through further buyback tenders.

Industry modeling suggests a permanent loss of up to 500 dairy farms in this scenario. That means fewer farmers left to cover the higher costs of maintaining modernised irrigation systems. Decreased production puts pressure on regional processing which is already underutilising capacity.

And with dairy being a high service industry, we will see a domino effect across communities. Less milk means fewer jobs in factories, and less work for service people like milking machine technicians, vets, herd advisers and agronomists. As the work dries up

and populations decline, that means fewer customers for local businesses, smaller schools with fewer teachers and less funding, sports clubs struggling to field teams and fewer volunteers for vital supports like meals on wheels.

As we know only too well, we have already been stretched to the limit adapting to produce more milk with less water, and surviving the drought came at a high price with rising production costs and debt. Further government investment in programs to boost water efficiency on farms, in return for a share of the savings, is essential if dairy farmers are adapt to the water already lost from the collective pool.

And the 971GL for downstream needs must be replaced with a commitment to achieving similar environmental outcomes the smart way, with an integrated package of improved river management improved river operations, environmental works, infrastructure savings and other measures.

Then us dairy farmers might have a chance to actually recover from the drought, grow our businesses using less water, and sustain a healthy landscape and rivers for our children’s future.

Daryl Hoey is a United Dairyfarmers of Victoria regional representative and Australian Dairy Industry Council Basin Taskforce chair.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

NEWS: MILK WARS // 11

Dairy farmers on their own THE FEDERAL Gov-

ernment has refused to help dairy farmers in their battle with supermarkets, declining to enact any recommendations from the recent Senate inquiries into supermarket behaviour.

After two years of inquiries, hearings and submissions the Government has agreed in principle to seven recommendations and noted 24 out of a total of 31.

The Government has rejected calls from a Senate inquiry for it to strengthen competition regulation and make it easier for farmers to bargain with the big retailers.

The Government’s response to last year’s Senate inquiry into milk pricing and a 2010 inquiry into the dairy industry was released early this month.

The Government says the Australian Competition and Consumer Commission are able to deal with any pricing issues, and cited its finding that “there is no evidence that Coles has acted in breach of the act in relation to milk discounting”.

It said it was premature to review new provisions of competition law until they were tested in the courts and said that arrangements for farmers to negotiate collectively

Milk war costs farmers thousands

The Government cited the ACCC’s finding that there is no evidence that Coles has acted in breach of the act in relation to milk discounting. monitoring of the other items” in reference to the 15,000 other items in a supermarket that Coles may be increasing the price of to offset the price cuts on staples such as milk.

“The ACCC also admitted that it had not checked if Coles was selling below cost in regional areas such as Darwin, Kununurra and ‘other far flung places’.”

Griffin said the industry demanded action and

once again called for an enforceable and mandatory Code of Conduct for supermarkets that covers the entire value chain, from farmer to retailer.

The industry also calls for a supermarket commissioner or ombudsman to be established to investigate complaints and strongly enforce the new code.

“The price cuts are unsustainable and the plain fact is milk priced at

1992 levels does not bring in enough money to support farmers, processors and retailers in the year 2012.

“The evidence shows it and Coles knows it,” Griffin said.

WAFarmers Dairy Section President Peter Evans said the ACCC had repeatedly proven to be ineffective and powerless against the tactics of the major supermarkets, yet the Federal Government is continuing to hide behind the ACCC. “The Federal Government has failed to recognise the difference between exports based states such as Victoria and

primarily domestic consumption states such as Western Australia.

“We call on the Federal Government to explain how ‘the future sustainability of the dairy industry across Australia depends to a large extent on its ability to remain competitive in a global dairy market’ within a Western Australian context.”

Independent research in Western Australia shows that the reduction in the milk price to $1 per litre and subsequent transition to private label products removes $25.2million from the dairy supply chain on an annual basis.

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farmers have had their milk prices cut on average by $30,000-$40,000 as a result of the milk price wars.

Queensland Dairyfarmers’ Organisation president Brian Tessmann said half of the state’s farmers had lost that amount as a result of reduced contracts from processors.

Processors Lion and Parmalat have said the loss of branded milk sales had caused them to reduce farmgate prices.

Tessmann said the other 50% of Queensland’s farmers had their prices slashed by 15-20% the previous year.

“The Coles-led milk price war has already impacted many Queensland dairy farming families and has contributed to the loss of some 30 dairy farmers from the industry in Queensland since January 2011.

“These mounting impacts will put many dairy farmers into the red and will see more farmers leave our industry when we can’t afford to lose any.

“Already I know another five farmers have their herds booked for sale.

“We have been short of milk in Queensland this year and we need to pro-

with dairies were working effectively.

Australian Dairy Farmers President Chris Griffin said the Government was avoiding taking action despite conclusive evidence of impacts on dairy farmers.

“They are hiding behind the ACCC, which has time and again proven itself to be ineffective and powerless against the tactics of the major supermarkets,” he said.

“ADF is amazed that the Government is satisfied with the ACCC’s ‘monitoring’ when it admitted in evidence to the Senate Committee that it had “not done any

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Brian Tessmann

duce another 100 million litres to meet the needs of our growing population of Queenslanders over the next decade.”

Tessmann said the Government – in a response “quietly issued”

by Wayne Swan’s parliamentary secretary – failed to commit to the recommendation of a review into the impacts on the WA, NSW and Queensland dairy industries.

“They have chosen to pass the buck and hide behind the ACCC (Australian Competition and Consumer Commission), which has time and again proven itself to be ineffective and powerless against the tactics of the major supermarkets.

“For the Government to rely on the ACCC defies logic when we all know it does not have the necessary power to counter the tactics of these major retailers.”

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

12 // NEWS

Murray Goulburn expects $5.30 finish MURRAY GOULBURN

has maintained its forecast end of season price of $5.30/kg milk solids while Fonterra Australia has said it expects to close the season “well within” Dairy Australia’s forecast price range of $5.10-$5.50kg/MS. The comments were made during the recent

round of milk price stepups announced last month.

MG lifted prices 10c/ kg fat and 20c/kg protein – its second of the season – taking their weighted average price to $5.22/kg MS, while Fonterra raised their prices by 8c/kg fat and 20c/kg protein.

Fonterra GM Milk Supply Heather Stacy said the outlook for the rest of the season was good.

Warrnambool Cheese and Butter (WCB) announced their second milk price step-up of the current season –8c/kg fat and 20c/kg protein – with another milk price review

for suppliers due in April.

Burra Foods has announced a second stepup of 10c /kg milkfat and 25c /kg protein – lifting their average annual price to over $5.05/kg MS. Burra also said its key markets of Japan, South East Asia and the Middle East were performing

well and reflecting firm demand.

Tatura Milk has announced a loyalty payment for the first half of the season of 8c/kg fat and 20c/kg protein, with a further milk price increase for the months of February to June of 8c/kg fat and 20c/ kg protein.

Heather Stacy

UDP has raised its price by 20c/kg fat and 40c/kg protein lifting its season average weighted price to $5-42 /kg MS. Longwarry Food Park has lifted its milk price by 7c/kg for fat and 17c/kg for protein.

The news was not so good for northern suppliers of Parmalat, which renegotiated the contracts of all its dairy farmers in south-east Queensland and northern NSW. All contracts between Parmalat and its suppliers were due to expire at the end of 2012. However the company contacted farmers late last year to inform them they wanted to bring

forward renegotiation talks by one year.

Farmers can now continue with their current contract conditions at the same price per litre until the end of 2012 with no guarantee that another contract will be offered, or they could sign a new three-year contract effective from January 1 that would see them receive 3c per litre less than the current rate.

Some farmers are expected to lose $70,000 a year on the new contracts.

Parmalat has said the new contracts provided continued certainty of price and volume until 2014.

WCB seeks more milk for Coles deal

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COLES AND Warrnambool Cheese and Butter signed off on a five-year contract last month to supply an exclusive dairy brand to its supermarkets nationwide.

The new brand - Great Ocean Road - will be rolled out in May to 550 Coles supermarkets dotted throughout Australia.

Branded milk will be stocked in Victorian shelves while a range of branded cheeses will be distributed interstate.

The Great Ocean Road brand will launch in Coles with Tasty, Extra Tasty, Vintage and Light 500g cheddar cheeses, and a Tasty and Light 500g Shredded cheese.

It will also offer a full range of fresh milks, including full cream, light, skim and flavoured.

Warrnambool Cheese and Butter CEO David Lord estimated the Great Ocean Road partnership with Coles would see WCB

source an additional 50 million litres of milk from dairy farmers each year for the five years of the contract.

“This is the start of a new strategic relationship which is good for Coles and good for WCB,” Lord said.

“With this five year deal, WCB continues to build its consumer branded business.

“For WCB, this is new business with our own brand. It requires additional production which means new investment and jobs for the region.”

Lord said the Great Ocean Road brand paid tribute to WCB’s long history within the region.

“WCB has been based at Allansford on the Great Ocean Road for over 120 years.

“This new dairy brand brings that provincial story to customers, with a great-quality, great-value dairy range.”

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

NEWS // 13

Floods lift fodder consumption RECENT WIDESPREAD rain across

the east of the state will impact the nutritional value of dry pastures, meaning livestock may require increased volumes of supplementary fodder to maintain existing production levels.

The Australian Fodder Industry Association says the short term consumption of fodder has increased in regions where flooding has occurred.

Those affected still have access to their onfarm supplies although some cannot access stacks or pits and have been forced to buy in hay for their short-term needs.

Farmers have reported that pasture quality for coastal dairies is falling and increasing volumes of home grown fodder is being fed to cows.

The AFIA said more trading activity will begin as we enter autumn, with the timing of the autumn break dictating how long this continues for and how prices are affected.

Straw is now being baled in southern grain growing districts, according to the AFIA. Availability will be quite variable across the country and is determined by the portion stained from rain that fell post harvest. Straw availability will be limited in Western Australia, the central

west of NSW and southern Queensland.

Irrigated lucerne crops are into their third and fourth cuts with good curing conditions in SE Australia providing an opportunity for high quality hay. Trading activity is increasing in eastern states as buyers who typically rely on outsourced fodder, are being proactive about shoring up their supplies for their summer and autumn needs.

The AFIA said the pressure on cereal hay prices remains in all southern Australia regions exacerbated by reduced volumes of hay cut in 2011. Vetch and cereal hay is in limited supply in the eastern states but the quality is very good.

Vetch, which is popular in south eastern states dairies as a protein source, is also in limited supply.

There were reduced sowings in the Mallee and Wimmera regions of Victoria and a large percentage of crops that were sown have been ploughed in for green manuring.

The AFIA expects a lift in lucerne hay production, given increased plantings during the autumn and spring as well as good water availability in all irrigation districts.

However, hay is being exported to Japan for the first time which will influence demand, especially

with less expected to flow from the US. The AFIA said buying opportunities in the paddock are over for winter crop hay types. However, as third and fourth cuts of

lucerne come into play, it expects there will be fresh opportunities to purchase directly out of the paddock where the seller is generally more open to negotiation.

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

14 // NEWS

Fonterra protests raw milk grab must supply 200m extra litres of milk each year at a cheaper price over the next three years. Competing processors would then have to rely on their own supply agreements.

Fonterra is unhappy having to provide more milk to its competitors, including multi-national companies with their own supply competing against the NZ cooperative in international markets.

Fonterra chairman

Henry van der Heyden said the Government had not listened to submissions from Fonterra suppliers.

“The surprise factor was 200 million more litres over three years needs to go to independent processors which will ultimately be exported.

“It is not about the domestic market, it is about the export market.

“There are about six processors buying from us for export; four of the six

have foreign ownership from outside New Zealand.”

NZ Primary Industries Minister David Cater said he was disappointed with Fonterra’s reaction.

“Within three years (foreign owned companies) will no longer be eligible for that milk. Current legislation allows them to access that milk ad infinitum.”

Fonterra Shareholders Council chairman Simon

Couper said the proposal defies logic.

“There is no successful example in economics where a business is forced to subsidise its competitors.

“Furthermore, the Government provides no guarantee the extra milk proposed to be made available to competitors would bring benefits in the form of cheaper milk to the New Zealand public or that the profits generated would

remain in New Zealand.

“The suggested threeyear finish is a good step.

But how can farmers trust that in three years this aspect won’t be changed, given that last year the minister assured farmers there would be no increase to our 600 million litre DIRA obligation?

“The Government’s legislation proposes New Zealand farmers subsidise increasingly foreign-owned, established processors who

do not need DIRA milk to compete.”

New Zealand’s second-largest dairy processor says the proposed time limit will stifle opening of new processing plants.

Open Country Dairy chairman Laurie Margrain said newer companies wouldn’t cope without Fonterra milk. They couldn’t become effective competitors in the marketplace in the three year period, he said.

NZ dairy farms in demand

TR MA NE EA ST W TM IT EN IS T

THE NEW Zealand Government has proposed dairy regulation changes that would force Fonterra to give more of its raw milk to competitors.

When Fonterra was formed in 2001, legislation was enacted ensuring a maximum of 5% of milk collected be handed to its competitors, to avoid a “monopoly” situation.

Among a raft of suggestions, the NZ Government has proposed Fonterra

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among the winners in a steady climb of the rural property market, says PGG Wrightson Real Estate general manager Stuart Cooper, New Zealand.

The bigger farms were more impacted by the downturn, but are getting the biggest benefit with Stuart Cooper the recovery.

“With dairy you have it to a lot of other things. got the return of the big People learnt a lot about farm market.” Cooper says. “There was very little what happened after the global financial crisis. And going on a year ago; now people have changed their it is starting to pick up again. That has a big effect approach and adapted to a on Canterbury, Southland brave new world. “ Farmers and farmer and Waikato where most groups in the market are of the big farms are.”

All sectors and areas are recovDairy is seen as ering steadily to the most positive a good business level in four years investment. The but it’s “nowhere fundamentals for near a boom.” dairying are good.

Buyers are more disciplined using a corporate strucand business orientated. ture to give them the dis“People are doing their homework; they are bring- ciplines to manage the investment, giving longeving in advisors and have a ity to recovery plans. lot more equity. Before it Cooper says he is was sometimes no equity at all. There’s strong focus seeing a balanced market where neither buyers nor on fundamentals, cash sellers are holding the flow and those sorts of upper hand. things.”

Real Estate InstiDairy is seen as a good business investment. “The tute rural market spokesman Brian Peacocke says fundamentals for dairydemand for top dairy ing are good, the outlook farms is outstripping is good and it’s a good supply, helping to underinvestment particularly when you start comparing pin prices.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

WORLD // 15

Specialist livestock agency servicing Australia’s dairy industry Vicstock, with its head office located in Geelong Victoria covers the dairying districts of Gippsland, Western and Northern Victoria, the Riverina in NSW, Tasmania and the South East of South Australia.

Our core business of supplying various domestic and export abattoirs with dairy cows and calves is continuing to expand, as does the export heifer market and the private sale market which enables us to supply a complete service for the dairy/beef industry.

These young heifers at Fonterra’s Hangu farm are now part of the milking cows at Yutian.

Fonterra’s second China farm opens PETER BURKE

FONTERRA HAS just commissioned its second dairy farm in China and begun work on a third farm. The new farm is performing ahead of expectations, says the man in charge of the co-op’s overseas farming ventures, Peter Moore.

He told Dairy News production is up 4-5% on expectations. Minor teething problems had occurred, but nothing major. “Animal health has been particularly good.”

The newly commissioned farm, Yutian One, is in Herbei province near Beijing.

Moore said the farm currently has 1000 cows and mature heifers in milk and another 900 due to calve in the next two months.

“We hope by this time next year to be milking 3000-3200 cows. If you take into account the young stock and supporting stock we’ll have about 5500 animals on the farm.”

Changes have been made to Yutian One, based on what was learned from the first and pilot farm at Hangu which is similar in size.

About 2800 cows are being milked there but the

setup is different from the new farm.

“I’d expect the new farm to perform significantly better than the pilot. This improvement is based on what we learned from the first farm. The start-up has been smoother and milk

Peter Moore

"There is individual cow identification, allowing individual production data off each cow." production per cow has been quite a bit higher.

We’ve got better systems and processes on this farm which enables up to monitor cow performance a lot more closely,” he said.

One major difference between the two farms is in the milking parlour. The

pilot farm is similar to an average herringbone shed in New Zealand, while the parlour at the new farm looks more like those seen on American feed-lot farms.

“At the new farm there is individual cow identification, allowing individual production data off each cow, which you can’t do at the first farm. This enables us to make better decisions about which cows are going to perform best in the system. It also means we can tell how much milk each cow is producing and the return we’re getting on the feed we’re giving them.”

The cows, run in mobs of 200 at Yutian One, all have electronic collars and the data from each animal is fed into a central database. Moore says they could have put in more sophisticated technology, but the data being collected now is a huge improvement on what happened at the pilot farm.

Yutian One employs about 100 local people.

Local farmers are contracted to grow maize silage which is a major feed component for the farm.

The third Fonterra dairy farm, 7km from the second farm, is due to be commissioned by late October.

Our newly appointed Tasmanian team has also expanded, with 7 agents now servicing the whole of Tasmania, specialising in dairy, but also servicing the beef and sheep grower sector. We offer a personalised agency service through our one to one on farm dealings, benefitting both the vendor and the purchaser.

We have a good market for cull cows, bull and bullocks, as well as some exclusive export heifer markets into China and South East Asia that are being cemented through our Vicstock International team consisting of Mr Will Crozier (Managing Director), Mr Harold Sim and Mr Bruce Tang.

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

16 // OPINION RUMINATING

EDITORIAL

Government’s inaction a spineless decision tiger that is the Australian Compeinto the dairy industry made 31 rec- tition and Consumer Commission (ACCC), stating it will not take any ommendations to Government.

These recommendations were action because it is satisfied with its monitoring process. almost unanimously weak.

The ACCC has already proven They “referred” or “suggested” or “proposed” options, none of which itself ineffective against the tacwould help farmers claw back mar- tics of the major supermarkets and gins from the duopoly of Coles and admitted at the inquiry that it had not monitored other items in the Woolworths.

But if the recommendations are supermarket to see whether they weak, then how best to describe the were offsetting price cuts on staples Government’s response, tabled qui- such as milk.

Yet the Government says there etly on a Friday in a bid to avoid scruare no problems because the ACCC tiny.

The Government’s response was says so. pathetic. It was inconsequential. It stood for The Government has nothing. left farmers on their own Of the 31 recomagainst the supermarkets, mendations the Government has agreed in giving them the green light principle to seven and to further reduce the profit “noted” 24. margins of its suppliers.

Noted – another Although farmers, members of term for “we have read the recomthe ADF and state dairy bodies have mendation”.

This has been a waste of time for raised the awareness of the issue – all those who prepared submissions and continue to do so at Government level and through the media and those who fronted the inquiry.

It has also been a kick in the – the Government won’t take it any guts. When a Government calls an further.

It has left farmers on their own inquiry, those who invest in it are given hope that they may be listened against the might of Coles and Woolto, that there may be some hope of worths, giving the powerful duopoly the green light to further reduce the a fair go. profit margins of its suppliers.

This wasn’t to be the case.

Coles has already shown it will go The ADF presented solid evidence of the impacts of the super- further with its actions against fruit markets’ decisions on farmers. This and vegetable suppliers, advertising was supported by statements from discounted produce to attract consumers to their stores. the processing sector.

Somebody needs to show some It was all disregarded.

The Government has instead spine – but the Government has hitched its wagon to the toothless shown it won’t be them.

THE RECENT Senate inquiries

MILKING IT...

A bird? A plane? No, another inquiry We’re waiting for another Senate inquiry. It shouldn’t be long now.

With the nation’s fruit and vegetable growers the new victim of Coles’ strong-arm tactics of paying producers less in a bid to entice consumers into their store, we expect the Government to launch an inquiry into how it will affect those at the bottom of the supply chain.

Why deal with the issue of supermarket power when it can simply look concerned and handball the problem to a Senate committee to “investigate”. Recommendations wouldn’t be tabled for at least nine months and then the Government could “consider” them.

This would enable the Government to deal with any problems in the next electoral cycle.

So get ready – the new inquiry shouldn’t be long now.

Would you like pollutants with that?

It staggers us but there are still consumers who wonder why we don’t import more cheap produce from other countries.

They could start by talking to WA farmer Peter and Anne Hector, who own and run Mundella Foods, which produces award-winning yoghurt and other products.

The couple were visiting China four

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 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.

years ago and saw a woman working on the plough while her children were planting rice crops.

“Next door, up the hill a little way, was a big shed where a chap was taking apart old computers for lithium,” Peter said. “When it rained, the water would wash down over all those old computers and into the rice crops.

“We have to ask the question, Australia – where do you want your food to come from?”

We’ll buy ours here, thanks Peter.

US President Barack Obama

Got milk, Mr President?

When in trouble, we try and lighten the mood with a joke. We’re in good company as none other than US President Barack Obama did the same in his recent State of the Union address.

With the economy struggling and unemployment high, the President told the faithful that his Government had abolished a 40-year-old rule that could have forced some dairy farmers to spend US$10,000 a year proving they could contain a spill.

Somehow, milk was classified as an oil. The President then went with his punch line.

“With a rule like that, I guess it was worth crying over spilled milk.”

The response was as ordinary as the joke, but we don’t think it will stop him being re-elected.

Take a load off Wayne It can’t be easy for Federal Treasurer Wayne Swan to try and get the country back in the black, like the Opposition insists it should.

However, the University of SA has the answer for him – just get everyone to eat more dairy.

New research says at least two billion dollars could be slashed from the annual healthcare budget if Australians increased their dairy intake.

Just like that. Start eating more dairy and we’ll be back in the black.

Perhaps Mr Swan should hit the road spruiking dairy’s health benefits – it would be more beneficial than most actions from both major political parties these days.

Oh she’s wet alright Gippsland farmer Campbell Chapman told us it had been a wet summer in Gippsland – following record rainfall from most parts of the district last year.

How wet? “We were trying to make silage in November and there were ducks swimming on the silage paddocks.”

Yep, that’s gotta slow you down.

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

OPINION // 17

Nothing ethical in starving the poor THERE IS a growing gap

CHARLIE ARNOT

Natural Resources Conservation Service shows that farm and ranch productivity in the US has increased dramatically since 1950 while the use of resources required for production has declined markedly. Farmers in 2008 produced 262 percent more food with 2 percent fewer inputs, compared with 1950.

Those of us fortunate enough to live in affluent societies should celebrate the vast array of food available to us. We have

plistic to assert that a certain type or size of farm or food production system is inherently better than another, because safe, nutritious, and affordable food is produced in a variety of ways.

To meet the needs of a growing population, we need to support continued innovation, responsible production, processing and distribution - because that is the real ethical choice for people, animals and the planet.

Charlie Arnot is the chief executive officer of the Centre for Food Integrity based in Missouri in the US. The CFI is a national nonprofit organisation dedicated to building consumer trust and confidence in today’s food systems. Arnot will speak at the Australian Dairy Conference on Wednesday, February 21. See www.australiandairyconference.com.au for more details.

To feed a global population expected to exceed 9 billion people by 2050 - 2 billion more than today - technology will need to continue to play a vital role. In fact, projections from The World Wildlife the United Fund is an active Nations, accounting proponent for more for increased intensive agriculture. wealth throughout the developing the option of buying conworld, say we will need to ventional, local or organic double food production by food and those of us with mid-century to meet those access to land can enjoy needs. the harvest of our own The agricultural sector can and should do a better job of assuring consumers that even though farming systems have changed, most According to Norman garden. farmers’ commitment to responsible food production has not.

Borlaug, the father of the But it is overly simgreen revolution, that means we have to produce more food before the end of this century than the previous 10,000 years combined.

The only way we can do so is through the responsible use of technology, the same way agriculture has increased production to serve the needs of growing populations around the world since 1950.

That is why organisations such as the World Wildlife Fund are now active proponents for more intensive agriculture.

Dr Jason Clay, the senior vice-president of market transformation at WWF, says we need to double the number of calories produced on the land presently in use by 2050 if we want to preserve our ecosystem and biodiversity. We will put the environment at risk if we Relative Forage Ratings - compared to industry standards * FEATURES BENEFITS choose to reject systems wINTER SPRINg ToTAl FlowERINg ME NdF ExTRA ExTRA No. oF that allow us to produce High yielding More feed for your pasture investment ANNUAl MJ/KG CP % MEAT MIlk RyEgRASS yIEld yIEld yIEld TETIlA = 0 DM % more food using fewer natvAlUE vAlUE TRIAlS High winter yields Provides feed when it’s needed most ural resources.

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between farmers and consumers. It was a recurring theme in a dozen meetings I had with hundreds of agricultural leaders in Australia recently and mirrors what is happening in the US. Consumers such as Voiceless founder Brian Sherman have expressed their concerns about how food is produced, in newspapers and other media.

The author and Voiceless patron J.M. Coetzee has even called for radical changes to the food system. But they risk dangerous unintended consequences.

In fact, placing restrictions on the food system that inhibit farmers’ ability to produce more food with fewer resources will limit the availability of healthy, affordable food choices for all of us.

Unfortunately the greatest impact will be on those who can least afford it.

In Australia and the US, the food debate often pits city dwellers against rural neighbours. Today’s consumers are generationally and geographically removed from agriculture and any time there is a gap between performance and expectations there is the potential for misunderstanding and conflict.

But it’s time to reject this brand of culinary colonialism, which does little more than inflame and alienate consumers with a legitimate interest in farming and food.

The agricultural sector can and should do a better job of assuring consumers that even though farming systems have changed, most farmers’ commitment to responsible food production has not. We should increase the transparency of today’s farming.

But if farmers were forced to rely on the food production methods of the 1950s, as some are suggesting, tens of thousands of Australians would go hungry each day. In fact, limiting the ability of agriculture to continue to innovate and improve productivity will also increase the cost of food, limit food availability and bring marginal land into production, risking serious environmental degradation.

the power to grow

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

18 // AGRIBUSINESS

Mundella teaches Lion a lesson be a Holden or a Ford – we want to be a Rolls Royce where quality comes in.

“Yes, we are dearer, but our prodAT A glance, it may seem the Austra- ucts contain no preservatives or artifilian dairy industry is becoming increas- cial ingredients.

“We aren’t mass producers but we ingly dominated by multi-nationals but small and medium-sized businesses are produce value for money and quality expanding from the foothold they have that is justified in our pricing structure.”

And with the news in October secured in the processing sector.

Peter and Anne Hector’s award-win- last year that Mundella Foods won a national contract to proning Mundella Foods at duce Coles’ sour cream, Mundijong, WA, is one the company will require example of a mid-size an additional 1.8 million operation with big preslitres of milk annually ence – and it continues from local farmers. to go from strength to Peter said the news strength, winning the was testament to the fact Risk Management Award that small and medium at the 2011 NAB Agribusimanufacturers can comness Awards for ExcelWHO: pete with national and lence.

Anne and Peter Hector multi-national organisaThe Hectors bought WHERE: tions on quality and prethe business back from Mundijong mium produce.

Lion (then National WHAT: “We may not have Foods) in 2005, having Value adding the capacity to be mass sold it four years earlier producers of cheaper to pursue other opporproducts, but we can create a point of tunities.

“We saw that jobs at the factory were difference when it comes to premium in jeopardy and the business was in real and niche products, quality.”

One product Peter is particularly need of rejuvenation – it was producing milk and yoghurt, but not taking excited about is Mundella’s probiotic advantage of niche markets and value yoghurt drinks.

“Probiotic drinking yoghurt contains added products - so we decided to take up the challenge and re-build the busi- about 15 billion beneficial live cultures ness, including expanding into a range per 100ml serve - this is up to 100 times of yoghurts and drinking yoghurts con- more than other competitors’ products.

“We are also one of the first compataining the health-giving properties of nies to use probiotics. We are always probiotics,” Peter said.

The business buy-back has been a looking at ways to value add to our raw resounding success, with the business product and find new markets, big or achieving an annual growth of more small.”

In 2010 Mundella began exportthan 17.9%, which Peter attributed to the company’s “strong brand recogni- ing its products to Asia, and last year, tion and support, exceptional quality, secured a contract to supply breakfast quality management and expansion into yoghurts to Qantas for all flights out of Perth, and some Cathay Pacific flights new markets”.

“We can’t be – and we don’t want to out of Perth.

LIZ COTTON

Mundella Foods owners Peter and Anne Hector.

Right: WA’s Mundella Foods has won this champion yoghurt award five times.

Below: Milk is sourced from company owners Peter and Anne Hector’s own dairy (below) and four other local farms.

Along with its business expansion, petent and experienced management Mundella has taken out a swag of indus- team that has assumed the key leadertry awards including Australia’s Cham- ship roles, with the family board operpion Yoghurt five times. It was also ating at the strategic level.

Four local dairy farmers currently awarded the Australian Grand Dairy Champions title for three consecutive supply the manufacturer, which uses around 20,000 litres a day. years.

“As we continue to expand, we will Mundella products are distributed through IGA, Woolworths, Coles and be seeking high quality milk from more smaller boutique retailers throughout local farmers,” Peter said.

WA, South Australia and Victoria.

“The awards have really Four local dairy farmers helped us ensure that as a currently supply the small to medium sized com- manufacturer, which uses pany, we can still be a domiaround 20,000 litres a day. nant market force.

“We can back up our He believes the secret to Mundella’s claims that we produce the best quality products because of our national success lies in its “team culture” and awards and therefore, can compete for “ability to value-add, differentiate and fridge space with the big guys,” Anne seek new markets and better prices for premium products”. said.

And it all starts on the farm, he said.

And like the proverbial cream, Mun“We are very in-touch with our farmdella’s business and products continue ers, they are not just names in book, to rise to the top.

The Hectors have appointed CEO without them, we – along with our prodDavid Day to lead the company into the ucts - cease to exist, so we want to do future as they take a small step back in a everything in our power to look after bid to enjoy more time with their family them.

“In turn, they reward us with their and friends.

Mundella’s inroads to succession loyalty and meet our needs in terms of planning have given the business a com- reliable, premium produce.”

In return for loyalty and a commitment to supplying the best quality produce, Mundella pays its farmers “above the going price” and works with them to help achieve the highest quality milk.

Peter said the better-than-going prices paid by the company “helps farmers with their budgeting and purchasing decisions” and “ensures greater financial security, which is crucial in dairy farming”.

He is also a believer in supporting the local community that supports his business, something he said often “falls by the way side when big companies come to town”.

“Sure, we could buy our packaging cheaper from overseas, but we want to support the local suppliers and in turn, they support us.”

Owning as well as running Mundella ensures the business runs sustainably.

“We aren’t just manufacturers,” Anne said.

“We are dairy farmers ourselves, and as such, we understand the pressures, the day-to-day frustrations, the production problems and the climatic issues that arise in dairying.

“This greater understanding helps us work with farmers more effectively to achieve both parties’ goals,” she said.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

AGRIBUSINESS // 19

World milk growth hurting prices THIS MONTH’S Situa-

tion and Outlook Update describes a fairly steady outlook for most drivers of farmer profitability, although there are some clouds gathering on the horizon.

The Update focuses on six key market drivers of farm profitability.

These drivers are in some instances related, and can affect both the income and cost side of dairy businesses.

So what are the drivers, and why are they important?

The table (right) summarises the drivers and describes their impact.

Their status refers to the current effect on the operating environment for - and profitability of - Australian dairy farmers.

As always, there is a mixed outlook for these drivers, however the global economy, supply and exchange rates are the areas of most concern.

International economic issues are being widely reported across all media, and would be expected to influence demand for dairy and other commodities.

However, demand has remained remarkably stable.

While Chinese imports of whole milk powder slowed in 2011, total Chinese dairy imports increased more than 20% to a little over one million tonnes.

Sales to other key importing regions in South-East Asia, Russia and the Middle East remain consistent.

Consumption in troubled European and US markets has also proved

resilient, a positive for international market balance.

While demand is steady, increasing supplies to the international market is having a negative impact on dairy commodity prices.

All major milk production regions around the world are increasing output in response to improvements in farmgate prices in the past two years, and generally favourable seasonal conditions.

With supply growth likely to outpace demand over the next 12 months, commodity prices will continue to come under pressure.

The final result for farmgate prices and incomes will depend heavily on exchange rate movements, particularly the strength of the Australian dollar against the US currency – in which most dairy commodities are traded.

Major bank forecasts are for the dollar to remain high, and currency markets generally to be volatile – this is likely to be a negative in terms of next year’s opening price.

On the cost side, the most positive driver is the outlook for input prices, which provide a significant opportunity for protecting farm margins in the coming year.

In particular the record Australian winter crop in 2011, combined with carryover supplies and building international stocks mean ample grain is available to dairy farmers, and prices will continue to slide.

For the full Dairy 2012 Situation and Outlook

Driver

Impact ■■

Global economy

Global demand Australian market

GLOBAL IMPACT JOANNE BILLS February Update report, go to www.dairyaustralia. com.au Jo Bills is Manager - Strategy and Knowledge with Dairy Australia.

Global supply Inputs

■■

Demand for commodities (including dairy products and farm inputs) Influences currency movements for different exporting and importing regions (see driver 6)

Negative

Import demand for commodities Influences prices of dairy commodities

Steady

■■

Important determinant of returns in domestically orientated dairy regions

Steady

■■ ■■

Supply of dairy product to the international market Influences prices of dairy commodities

Negative

■■

Cost of major inputs such as grain, fertiliser and fuel

Positive

■■

Affects competitiveness of dairy exporters Influences affordability of dairy imports Determines the returns to local exporters - and therefore farmers in exporting regions - in Australian dollars

Negative

■■ ■■

■■

Exchange rates

Status in February 2012

■■

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

20 // MANAGEMENT

Soybean silage fills feed gap BERNIE REPPEL

“BEEF ‘N’ Beans” – not a food recipe,

but a catchy name for a system of planting cash crop soybeans ahead of improved pasture on beef cattle farms – has become a well established technique on the North Coast of NSW. Less publicly, the region’s dairy industry has also recognised the value of this summer legume option.

Soybeans have been a key element in the summer feed program of the Casino dairy farm of Sam and Fleur Tonge and manager Paul Judge for a number of years.

The Tonges and Judge, who supply Parmalat, aim to supply milk at a constant level throughout the whole year.

“The strength of the farm is its ability to produce feed from a pasture based system,” Judge said.

“We have a good and reliable water allocation from Toonumbar Dam, west of Kyogle, so, in general, dry times are manageable.

“However the most difficult times are either in extreme wet weather or extremely hot weather, when it is very difficult to satisfactorily feed the cows solely on pasture.

“This is when the silage becomes very important.”

Judge said while the farm can harvest a significant amount of its silage needs from the winter pastures, he and the Tonges are very pleased with the quality of the soybean silage that they make in summer.

The aim is to make about 800 round bales, which should provide reasonable feed security for the next year.

Soybeans had proved a useful summer legume in the crop rotation, but there had been problems with cow peas and Dolichos lablab through diseases associated with heavy clay soils and wet summers.

The soybeans seemed to be more tolerant to diseases but are perhaps more difficult to establish at planting time.

According to Tonge, Judge has developed a reputation for his abilities with record keeping and on-farm feed budgeting.

“That reputation, coupled with the history of the farm, prompted NSW Department Primary Industries and BGA Agriservices to base a trial here to test a new variety of soybeans devel-

WHO:

Sam and Fleur Tonge, Paul Judge WHERE:

Casino WHAT:

Soybean trials

Farm manager Paul Judge and property owner Fleur Tonge in their Hayman soybean crop.

oped by the Australian Soybean Breed- in keeping with standard industry pracing program in a commercial dairy tices.

The crops were cut for silage in situation,” Tonge said.

The Australian Soybean Breed- March and were made into round bales.

The key observations and concluing program is funded by the Grains Research and Development Corpora- sions from the trial were: tion (GRDC), CSIRO and NSW DPI, ■■ Hayman produce a lot more biowith the actual trial developed and commass – 11tonnes of shoot dry pleted by Dr Natalie Moore from NSW DPI, Grafton, in The aim is to make 800 association with BGA Agriser- round bales of soybean vices agronomists Mark silage to provide feed Carter and Dominic Hogg.

The trial compared the security. new variety Hayman and the most commonly used variety for silage matter/ha compared to 8.7 tonnes production on the NSW North Coast, shoot dry matter/ha by A6785 Asgrow A6785. grown under the same conditions Crop establishment was into a and harvested at the same stage of chemically prepared seedbed using a maturity, mid pod fill.

■■ Hayman matured more slowly at precision planter.

Weed and insect control regimes the end of the season than the curwere similar for both varieties and were rently available grain types of soy-

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cially available for the summer plantings in 2012/13.

Judge said, as with most things in dairying, the cows are testing critics of the quality of feed and he is pleased with how the herd has eaten the Hayman soybean silage.

“Having a contractor chop the crop in the bales has improved the dry matter intake for the cows,” he said.

“The herd has coped well with the hot weather and I believe that the Hayman variety is an appropriate choice for us to use in our summer silage program.

“I am very keen to try it in a grazing situation once seed is commercially available. I suspect that the taller plant and slower maturity will be advantages.

“Hayman’s harvest time works in well with having our ground ready for ryegrass in late March. It is a crop that fits neatly into our feeding system.”

bean, allowing an extra 10-14 days for hay and silage making compared to A6785. (This is beneficial in coastal areas like the NSW north coast, where wet weather can delay operations.)

■■ Feed value analysis of hay and silage showed that Hayman’s nutritional values were similar to A6785 and acceptable for dairy silage.

■■ Although producing more biomass and being taller than A6785, Hayman has less tendency to lodge, an important trait in the NSW north coast climate.

■■ Due to the late maturing characteristic in this environment, and its excellent grain quality (clear hilum, large seed size and high protein) Hayman will likely have a secondary role as a grain variety for very late sowing dates in the region.

Hayman seed is expected to be commer-

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

MANAGEMENT // 21

Farmers share one vision STEPHEN COOKE

CLUSTER FARMING

is being promoted as a viable option to restore northern Victorian dairy farms that had stopped production and a partnership in Kyabram has fast become a ringing endorsement of the concept.

A Cluster Farm brings together the land, water, livestock, machinery and human resources from more than one farm.

At its simplest, it could be one neighbour who is committed to continuing in the dairy industry leasing the farm next door: at its most complex, it would involve the resources of several properties under one management umbrella.

In the case of John and Bev Shepherd and Gino and Maria D’Augello at Kyabram, it involves the utilisation of two properties – one formally used for growing lucerne for the district’s farms and the other a dairy property.

Neither party in the new partnership are strangers to the area. Gino was raised on a dairy farm located next door to his current 120ha property, while the Shepherds had previously farmed in Mooroopna North for 11 years until 2006.

The Shepherds sold their dairy farm to move to Port Macquarie, running some beef cattle and spending time on the ocean.

However, finding you’re a long time retired, they decided to return to dairying in northern Victoria because of its affordability compared to western Victoria and NSW and because of their familiarity with it.

The Shepherds visited a handful of farms early last year, wanting to buy something that could run up to 300 cows. The farm they would eventually buy seemed financially out of reach as it could run 400460 cows.

“It would have made things tight for us to finance the property and

stock,” John said.

“Otherwise it ticked all the boxes, it was two hours from Melbourne, five minutes from Kyabram, the dairy was good, it had a good layout and capacity for further development.”

They met their accountant and friend, Gino, for lunch on the day they were returning to Port Macquarie.

WHO:

John and Bev Shepherd; Gino and Maria D’Augello WHERE:

Kyabram WHAT:

Cluster farming

On recognising the farm in the real estate flier they had with them, discussion would turn to Gino and Maria’s desire to move into the dairy industry and how

D’Augellos’ property is either used to feed the partnership’s cows or sold. Dry cows and replacement heifers are also run on the property.

“Our skills complement each other,” John said.

Gino manages his own accounting business in Kyabram and John said this experience was a big advantage as it provides a different point of view.

“I’m not pessimistic,” Gino said. “I look for ways to complete the task, not why it can’t be done.”

John said: “The partnership gives us both a sounding board to bounce ideas off. We also have regular debriefing sessions, as well as sitting down at the end of the day and having a chat.”

The partners were pleased to source 300 crossbred (FriesianJersey-Illawarra) cows all from one herd.

Their focus is on maximising milk solids per hectare and John said the crossbred cows had proven very economical.

They will also meet their criteria of calving easily.

A Cluster Farm brings together the land, water, livestock, machinery and human resources from more than one farm. a partnership could help both parties.

Half their 120ha property had previously been leased but the lessee’s decision to move on spurred Gino into exploring his options with the Shepherds.

John and Bev purchased the property last August and both couples formed a partnership – Shepello Farms – where costs and profits are shared equally.

The business purchased 300 crossbred cows and all decisions – including 12 water troughs that would be placed on the Shepherds’ farm – are made in the best interests of the business and future returns.

Hay and silage produced on the

When John and Bev first moved to Australia from New Zealand, they were forced to buy their herd of 400 cows from 30 different properties and were pleased not to have to repeat this process.

They had to train their new herd to adapt from a rotary dairy to a Herringbone but have achieved this, in part by putting feed in bins in the dairy to encourage them to walk through and get used to the sound and smells.

The business has now employed two staff that work across the two farms and both partners are keen to expand the cluster concept down the track, using it as a vehicle to help young farmers move into property ownership.

Maria and Gino D’Augello and Bev and John Shepherd have combined their resources in a Cluster Farm arrangement to the benefit of both parties.

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Your ballot paper must be returned by 16 March 2012. For more information visit www.dairypoll.com.au or call Stuart Madden on (03) 9694 3896 if you haven’t received your ballot paper.

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“In every one of these trials the performance of Helix has been exceptional, with consistently high yield performance across trial sites and across seasons. We have also noted strong persistence to date.”

“Another factor to come through for Helix is palatability. The cows consistently graze it preferentially. We put this down to the meadow fescue in its breeding background.”

“Helix will find a strong fit in higher performing dairy, sheep and beef farms in higher rainfall regions or under irrigation. However, because it is midheading, it is also highly suitable for areas that don’t receive such reliable spring rains, and perhaps into slightly more marginal areas where some of the other perennial ryegrasses don’t perform.”

Performing on farm Ben Kenna milks 380 autumn calving Friesian cows on 700 acres at Noorat in the Western Districts of Victoria, and is a firm believer in Helix.

Ben points out a paddock of Helix that he is especially impressed with, commenting “It is always ahead of other paddocks in the round. Previously the paddock had never performed and was full of barley grass. I have tried other grasses in the paddock, but have only had mixed results! Sowing it down to Helix has been a great improvement. The Helix is very dense and productive, so it competes well against weeds. It is softer and finer and the cows clean it up better than older grasses – especially around heading time.”

Ben is mindful of choosing varieties with good persistence; a lesson he learnt the hard way when a competitor tetraploid variety he was using was only lasting 2 years. “Some of my Helix paddocks are 3 years old and they are just as dense as the year they were sown!”

Pathfinder Angus principal Nick Moyle, keeps a keen eye on every part of his business. He runs 1500 stud and commercial Angus breeders plus 2000 prime crossbred ewes, on 7000 acres of owned and leased country on 5 different farms from Hamilton to Naracoorte SA. Nick knows that to produce top quality bulls he must feed them the best quality pasture possible, so they can achieve their true growth potential.

Nick has been watching closely a local pasture trial run by an independent agronomist and a consultant at Penshurst, to see which variety works best in his local environment. “Helix has topped the trial there and its performance has improved as the trial has continued. So last year I sowed a paddock to Helix and have been extremely happy with it. It was very vigorous to establish from sowing and the plant numbers quickly thickened up to a very dense pasture.”

“I know that it out-yields other top quality ryegrasses that I have tried, and it has grown even more feed than I expected. The biggest benefit though is its persistence.”

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

MANAGEMENT // 23

Quick soil fix if repaired at correct time BALA TIKKISETTY

SOIL SCIENTISTS have found compacted soil can reduce the amount of dry matter in pasture by 200kg per hectare per month.

Compaction is when the soil is compressed or squeezed by animal treading although vehicles and farm machinery also contribute to this problem.

However, aerating the compacted soil at the correct depth and time can increase the amount of dry matter by about 30% within six months and about 50% after eight months.

Other problems caused by compaction (and pugging) include more frequent and persistent surface ponding, increased sediment, and nutrient and effluent losses through surface run-off.

It also means it takes longer for pasture to recover after grazing, and weed invasion often occurs in the bare sites pugging and compaction creates.

Problems like these can be minimised by: ■■ Reducing stock density, especially on sensitive, e.g. wet, paddocks.

■■ Not feeding out on sensitive paddocks.

■■ Constantly monitoring pugging and compaction during at-risk periods and moving stock off before damage occurs.

■■ Having multiple exits from paddocks.

■■ Grazing the back of the paddock first.

It is important to cultivate soil at the right time - when the moisture content isn’t too high or too low.

To assess soil’s moisture content, take a piece of soil (half the volume of an index finger), press it firmly and roll it into a ‘worm’ on the palm of the hand until it’s about 50mm long and 4mm thick.

It’s the right time to cultivate if the soil cracks before the worm is made.

If the worm can be made the soil is too wet.

Clods that are too dry won’t break down when cultivated and won’t pro-

vide a good seedbed.

An easy way to keep up to date with soil condition is to carry out a visual soil assessment (VSA) at least once a year.

Excessive nutrients and fertiliser use can contribute to nitrogen leaching and phosphorus run off, degrading surface and groundwater quality.

So wise use of fertiliser in these systems can increase agricultural yields, maintain soil health, nutrient balance and protect the environment.

Farmers can reduce the amount of nutrients leaching or running off pasture by ensuring they prepare a nutrient budget.

Farmers should: ■■ Apply fertiliser when the grass is in an active growing phase.

■■ Make sure fertiliser isn’t applied near waterways.

■■ Leave a grassed buffer strip between paddocks and waterways – the strip filters the nutrients before the run-off reaches the water.

■■ Control run-off from tracks, races, feed and stand-off pads.

Another important issue for soil health management is how the animals are wintered.

Several studies indicated that degradation of soil and most of the nitrogen losses to water from grazed winter forage crops occur in a nitrate (N) form and are transported via leaching rather than overland flow.

Losses appear to be exacerbated by the high density of urine patches that are deposited at times of the year when plant growth rates are low and drainage is high.

Consequently, on a per hectare basis N leaching losses from grazed winter forage crops are high relative to losses measured under pasture.

The effectiveness of the nitrification inhibitor Dicyandiamide (DCD) in reducing nitrogen leaching from urine patches deposited during grazing was evaluated in several trials in New Zealand the last few years.

Results from these studies show the treatment of the soil with DCD, at recommended doses, was effective in reducing nitrate leaching from the urine patches in a grazed pasture soil.

In addition to the environmental benefits of decreased nitrate leaching, the treatment of the

soil with DCD also provided good agronomic benefits with increased herbage dry matter yield from increased nitrogen retention in the soil and improved nitrogen utilisation by the plant.

Bala Tikkisetty is a sustainable agriculture coordinator at Waikato Regional Council in New Zealand.

Bala Tikkisetty

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Tiller density is key to pasture performance. The more tillers a plant produces, the higher the potential yield and persistence — and the denser the pasture canopy, the less potential weed invasion.

Cropmark Seeds has an Italian ryegrass that trials and farmer

experience show is excelling in this department.

Sonik has been scientifically evaluated in 23 on-farm trials throughout Victoria and lower NSW. Cropmark agronomist for Gippsland and Northern Victoria, Adam Sheedy, says the variety really vindicates his

company’s breeding focus on tiller density.

“Right from the first trials, it was very obvious that Sonik had significantly higher tiller density than other Italian and annual ryegrasses we compared it with.”

“We undertook a tiller count analysis

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“I have used Sonik for 6 years now. It is quick to establish, has good tiller density compared to other varieties in my own onfarm trials, and very high quality feed in winter and spring. My cows seem to prefer the Sonik over other varieties and milk very well on it.”

Neville and Ruth Kydd – dairy farmers, Finley, NSW

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in six of these trials and Sonik had 20% higher tiller density than the next highest variety, but up to 50% more tillers than other varieties tested.”

This might not be immediate obvious from a casual glance, he says.

“Plant growth habit can be deceiving. Some grasses, through their very upright growth habit, may look flashy and impressive, but unless they have high tiller density, the yield simply won’t be there.”

“We are seeing this on farms throughout the region. Sonik is showing consistently higher production across autumn, winter and spring – and, where rainfall allows it, it will persist for a good 18 to 24 months or more.

Its high metabolisable energy content is also showing up in excellent livestock performance, be it liveweight gain in lambs or milk in the vat.”

Farmer feedback is bearing this out.

Dairy farmer Peter West milks 320 cows on 121 hectares near Lance Creek in South Gippsland. “I have used Sonik now for six years now and keep coming back to it, as it is a proven reliable performer that simply grows more feed. It is reliable and establishes as quickly or quicker than any other varieties I have used. The leaf maintains it’s quality for longer into spring too.”

“The cows lift in production when they are on Sonik paddocks compared to the older varieties on my property and they eat the paddock evenly from fence to fence. It can persist for up to 2 years here and I get 2 cuts of heavy silage every year. I cut 1100 large round bales of quality silage in 2 cuts off 100 acres of the Sonik.”

Neville & Ruth Kydd, who are dairy farmers near Finley in southern New South Wales, are also strong supporters of Sonik on their property. Neville comments “I have used Sonik now for 6 years now. It is quick to establish, has high tiller density compared to other varieties in my own on-farm trials, and produces very high quality feed in winter and spring.”

“I will do 2 cuts this year of quality silage and because it doesn’t go to seed early, it will give me greater quality later in the season - or a greater window for quality silage.”

“My cows seem to prefer the Sonik over other varieties and they milk very well on it. With Sonik we get great value for money, best yields and economical rates.”

For further information on Sonik, contact Cropmark Seeds.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

MANAGEMENT // 25

Three feeds a day lifts production “The labour, lifestyle and management benefits farmer experience has associated with an AMS confirmed that a threeare best achieved if cows way grazing system works better on farms with auto- move on their own.

“Researchers around matic milking systems (AMS) than the traditional the world have tried a variapproach of offering cows ety of ways to motivate cows to move around the two fresh pasture breaks farm, and there’s no doubt, a day.

FutureDairy researcher, food is the most reliable incentive.”

Nicolas Lyons, found Cows in an AMS are that offering feed in just as well fed as cows in three allocations every a conventional system, 24 hours increased averwhere they typically have age milk production by access to two fresh pad20%, increased milkdocks a day. ing frequency by 42% and The only difference is improved AMS unit utilithat AMS cows are offered sation by 17%. their daily feed allowance Experience on comin three smaller ‘portions’ mercial AMS farms supeach day. ports these findings, with Trials conducted by all pasture-based AusLyons found offering cows tralian AMS farmers curfeed in three fresh porrently using a three-way tions a day meant they visgrazing system. ited the dairy and were FutureDairy project leader, De Kendra Kerrisk, Farm layout for an said a threeway grazing automatic milking system was relsystem should atively easy to manage, as long allow for three-way as the laneways grazing. and farm layout were designed milked more often, and for it. there were fewer cows “It is really important that farmers who are plan- that went for an extended period (18 hours or more) ning an AMS, design the between milkings. farm layout to allow for This resulted in more three-way grazing,” she milking sessions per hour said. and more evenly distrib“It is not particularly uted cow flow through the expensive, or difficult to include at the design stage AMS units during the day but it’s much harder if you and night.

The combined effect have to go back afterwards was a large increase in and rearrange the farm operational efficiency of layout.” the AMS units.

Three-way grazing These gains occurred could include three fresh in cows at all stages of lacbreaks of pasture a day, or tation. In contrast, in a two pasture breaks and two-way grazing system, a feedpad with a loafing milking frequency tended area.

Kerrisk explained that to drop off towards late three-way grazing is cenlactation. tral to motivating cows to “More frequent movemove regularly and volment of cows allows the untarily around the farm, farm manager to be more taking themselves to the selective about which dairy to be milked, and cows are drafted for milkwalking back to the pading and when this occurs,” dock afterwards.

Kerrisk said.

RESEARCH AND

FutureDairy researcher, Nicolas Lyons, found a three-way grazing system works better on farms with automatic milking systems than the traditional approach of offering cows two fresh pasture breaks a day.

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

26 // ANIMAL HEALTH

Dedicated calf rearer helps growth installed in the roof.

“In between calvings the shed is fully stripped, cleaned and sprayed WHEN THE Telford family increased with Virkon S so it has time to ventilate their milking herd to 1800-head, they before the shed is filled again with wood made the decision to employ a calf chip at a depth of 450mm.

“We also use Nature Clean to mainrearer to manage their calving.

The move has saved them both time tain hygiene in the calve pens. When and money and ensured the best out- the shed is cleaned out we then use the wood chips again on our laneways to come is achieved for their calves.

Wendy James was employed three maintain them, improve cow flow and years ago to rear dairy and beef calves, foot health.”

Telford said once calves are collected manage cow and calf records and herd testing and manage general animal and their records are taken down, they health on the Telford’s Mundoolun are moved into the shed where they Dairy at Mount Schank in South Aus- receive an iodine spray on their navels and a probiotic paste straight away, tralia’s South East.

In the 2011 spring calving, James before decisions are made about colostrum. reared around 670 calves.

He said it is possible to determine Travis Telford, who runs the dairy with his family and staff, said she plays a whether a calf has had colostrum from key role in ensuring young heifers reach its mother and any further colostrum intake is based around this observation. the dairy in prime condition.

“It’s a method that we’ve used for a “Wendy has done a great job in ensuring all our calf rearing runs while and we’ve had a very good strike smoothly and efficiently,” Telford said. rate.”

Calves are then put into pens of “Her keen sense of observation has meant that of all the calves she has five; ensuring small calves are not put in the same pen as bigger reared, we have only calves so they are not lost around 10-12 in total competing for food. while the calves were in While in the shed, the shed last spring.” calves are fed 2 1/2 litres In preparation for of calf milk twice a day the dairy herd increase and have access to fresh and increase in calves, water, straw and a calf the Telfords converted museli. Healthy Calf an old hay storage shed Plus is also added to the into a purpose calf rearWHO: milk. ing shed.

Telford family “In the first two Telford said the deciWHERE: weeks it is important to sion was both practical Mount Schank feed the calves twice a and economical, with the WHAT: day, particularly so that open sides making it easy Calving program they can be supervised to keep clean and easy to by the rearer more readventilate.

“We can shed the calves cheaply ily and any problems can be identified promptly. without compromising production.

“Sick calves can then be separated “The shed is protected from the elements but due to its open front, allows to minimise the risk of any diseases us easy access for cleaning and it has spreading.

“By having the sick calves in their plenty of ventilation.

“The walls, floor, posts and feeders own separate pens, they are easier were sprayed with Virkon S - a Virucidal to monitor. We also get tests done as broad spectrum spray that kills bacte- soon as possible and jump on any illria – at the outset. Misters were also ness before it has the chance to spread.

LIZ COTTON

Travis Telford with “stage 2” calves; once the calf shed has reached capacity, or calves reach 4-5 weeks of age, they are moved to nearby, acre sized, outdoor yards with around 30 other calves. Once they are outside they are fed five litres of calf milk once a day, with Bovasol added to the milk.

“The most common time to discover sick calves is after a week or two when all the calves are feeding well and one suddenly stops drinking or becomes fussy.”

Calves stay in the undercover shed until it reaches its capacity of 200, or until they reach 3-4 weeks of age, whereupon they are moved to acresized, outdoor yards with around 30 other calves.

Once they are outside they are fed five litres of calf milk once a day, with Bovasol added to the milk.

“Since we have been adding this we have seen a postive response with better, stronger and healthier looking calves.

“Instead of the museli, the calves are transferred to our own calf mix which we make ourselves.

“By doing this we can add what minerals we like and change the compostion to what is best suited to the calves’ needs and to what feeds we have on hand.”

The calves stay in the yards until

they reach 10-12 weeks and are trained to troughs. The Telfords have also planted shelter belts to further protect the calves from temperamental South East weather.

Following a poor conception rate last autumn, the Telfords increased their calving to three times a year.

This has meant extra attention to detail on the calf rearing system. Travis said the success of autumn calving will continue to determine whether the dairy does an additional calving in a given year.

The Telfords also raise Friesian bull calves and grow out Angus steers for the export and bullock markets, with the majority being sold to bull beef operation Coola, at Kongorong.

Most heifer calves are retained for the dairy, but up to 110 head a year are exported to China.

“Last year we sold 50 heifers to China and made $1300 a head, this year we are registering cattle which should add another $300 to that sum,” Telford said.

The cost of getting a heifer calf on the ground is around $105 with the artificial insemination and ranges from $1800-$2000 for everything involved in getting the heifer into the dairy system.

But the Telfords are also working to save more money on the most expensive item in the dairy – power costs by becoming self-sufficient with their energy supply over the next two years.

“We are putting in three wind turbines on the property which will not only make us self-sufficient, but allow us to put power back into the grid.

Power bills have rocketed in recent years and the cost of putting the turbines in can be recovered, we estimate, within four years.”

The self-sufficient mantra also extends to the dairy’s wider operations, with all earthworks, silage, pasture renovation and ground preparation, roads and maintenance done by the family, which includes Travis’s parents Trevor and Lyn, his brother Justin, two herd managers, a maintenance worker and seven milkers.

Ph: 1800 333 010 Fax: 1800 024 267 Email: sales@clf.com.au

     See our website for more informaon www.clf.com.au 

IN UDDER WORDS...

Mobile tipping crush proves popular RICK BAYNE

A NEW mobile hydraulic tipping

crush is revolutionising how hoof trimming cows and bulls, and infusing teat seal in heifers, is done in southwest Victoria.

The Vet Group has introduced the imported Riley Tipper Crush and local farmers are unanimously impressed by its ability to make the job easier.

There are only a handful of the crushes in Australia and this is the only one to be based in south-west Victoria.

The Vet Group is using the tipper to simplify its hoof trimming service and expand its heifer teat sealing program.

Dr Bill Morgan from The Vet Group said the hydraulic tipper was safe and comfortable for animals and vets.

“It is like a normal crush but when the animal walks in its head is secured and the hydraulic hoist tips it on its side,” Morgan said.

“The legs are secured and it gives us good access at hip height to its feet.”

Morgan said the equipment made in the United States was a new design which improved occupational, health and safety on farms and made it easier to address lameness, one of the region’s biggest animal health problems.

“Many farms don’t have suitable livestock handling facilities so this has a lot of value for everyone,” he said.

“The tipper crush holds them firmly but comfortably.

“As soon as the cow is secured in the tipper it lies quietly.

“Lameness is one of the big animal health issues in our region and there is a big demand for services, so to make it easier and safer is a great bonus.”

While hoof trimming is the main use of the tipper, it is also being used for teat sealing procedures.

Morgan said teat sealing was growing in popularity and working well in the prevention of mastitis.

“It effectively puts a plug in the teat and stops the entry of bacteria at the point of calving,” Morgan said.

“It is an important initiative for milk quality and from an animal welfare perspective.”

He said trials showed the benefits of putting a teat seal into heifers.

“We infuse the teat seal around 30 days before calving. The use of a teat seal on heifers is quite revolutionary in the impact it has on mastitis at calving.”

Morgan said farmers were impressed by the new tipper machine.

“They are unanimously impressed with it and can see the benefits,” he said.

Plan to prevent scours There are few things more depressing than walking into your calf shed and finding half of your young heifer calves, the lifeblood and future of your operation, sick and scouring. Suddenly you worry about lost genetics, treatment costs, calf welfare, and stress on calf rearers. How bad is this problem going to get before it comes good?

If scouring calves were a problem for you last spring or autumn you can expect major issues again this autumn, unless you plan ahead. Many of the pathogens that cause scouring in your young calves survive for long periods in the environment and are present from season to season in carrier cows.

Properties who have implemented vaccination programmes continue to reap the reward. With lower rates of scouring calves and much healthier, well grown calves who don’t have that initial setback that scouring calves do.

The animal’s head is secured as soon as it walks into the crush.

Technical Services Coopers® Veterinarian, Dr. Damian O’Brien, states that “Salmonella continues to be a major issue on many dairies, as does E. coli in young calves. Both of these are preventable through vaccination of pregnant cows, as long as colostrum management is addressed and calves receive a good volume of high quality colostrum early on.“ “Herd vaccinations should commence at Dry Off, or shortly afterwards (6-8 weeks before calving), and then cows will receive annual boosters 2 or 3 weeks before calving.”

“Hygiene is another area we have been concentrating on, encouraging producers to thoroughly clean and disinfect sheds between batches of calves, and to think about shed design and type of bedding used. As dairies increase in size, overcrowding can occur in the calf shed, increasing pressure and increasing the incidence of calf scours,” Damian said.

The hydraulic hoist tips the animal on its side.

“Proper diagnosis of the cause is the beginning of a plan and it is important to continue to monitor through regular testing. We encourage producers to regularly discuss their calf rearing management with their vets to make sure they are doing everything possible and implementing action plans, not only for treatment but also vaccination programmes for prevention,” Damian went on to say.

“Many producers don’t realise just how much calf scours costs when reduced growth, calf deaths, diagnosis and treatment costs are added up. Coopers’ investigation found that a typical herd of 200 with an 18% incidence was losing $5200 a year due to calf scours.”

The Vet Group technician Don Kerr trims hooves in comfort. The legs are secured, providing good access at hip height to the animal’s feet.

For more information on dealing with calf scours call Coopers on 1800 885 576 or talk to your local vet. ® Registered Trademark

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

28 // ANIMAL HEALTH

Look now for facial eczema risk GWYN VERKERK

FACIAL ECZEMA (FE) occurs when grazing animals eat pasture containing large numbers of spores from the fungus Pithomyces chartarum. They contain sporidesmin, a toxin which causes inflammation of the liver and bile ducts.

The damage is incremental, and disease occurs both from short-term ingestion of pasture with high spore counts and longterm ingestion of pasture with more moderate spore counts.

January to May are the high risk months for facial eczema.

ANIMAL HEALTH GWYN VERKERK While the cow’s liver has some capacity to heal and regenerate, there is often long-term compromise of its function.

One immediate effect of exposure to sporidesmin is a drop in production and there may be transient diarrhoea.

Real farmers. Real results.

MOO MOO DAIRIES FORBES, NSW A TESTIMONIAL BY CLAYTON ALLEY www.performanceprobiotics.com | Phone 1800 118 872 What Performance Products do you use and how do you use them in your system?

Healthy Herd Hoof Boost, used in our grain mix which is fed during milking.

What are the benefits you have seen since using Performance?

Since switching over to a pro-biotic product our herd health has improved; in particular with the cows feet as we have seen no cases of sore feet or foot-rot during the wet months when we would see a few cases normally pop up. Mastitis cases in our herd have also basically disappeared as the product has made a noticeable improvement to the cows overall immune system. In turn, conception rates have also improved.

Can you put a ‘monetary’ figure on these benefits?

Its hard to put an exact figure on it; but with no vet bills (having only a bottle of penicillin on hand just in case), not having any cows held out of the vat from withholding days or having cows held up with lameness and a saving on semen, an estimate of savings on my farm would be approximately $5000-$7000. However, I foresee the long term results to be much greater as how can you put a price on your herd’s health?

Would you recommend Performance Probiotics to another farmer?

Most definitely!

Are there any other comments you would like to make about Performance Probiotics product range or services?

“Since switching over to a probiotic product our herd health has improved; in particular in relation to the cows feet. We have seen no cases of sore feet or foot-rot during the wet months when we would normally see a few cases pop up”.

As far as a service to the farmer I have found performance probiotics to be the best by far and a pleasure to deal with. Any of the competitors will be hard pressed to get me to leave as I believe that when you find a great product you should stick with it as your farm will benefit from it short term and long term.

THANKS TO CLAYTON ALLEY AND MOO MOO DAIRIES FOR THEIR ONGOING SUPPORT OF PERFORMANCE PROBIOTICS.

The toxin is concentrated in bile where it generates free oxygen radicals (super-oxides) which cause massive cellular damage especially in the bile ducts.

This damage blocks the flow of bile, allowing the light-reactive substance phytoporphyrin (also known as phylloerythrin) to accumulate in blood and tissue fluids making the animal photosensitive.

Phytoporphyrin is produced during microbial fermentation of the green plant pigment chlorophyll in the rumen but is cleared through the bile when liver function is normal.

When it accumulates, if lightly pigmented skin is exposed to sunlight, the resulting deep tissue burns to produce the characteristic skin lesions of FE. This disease process has a time lag, so skin lesions do not become evident until 10-14 days after spore ingestion.

Severe skin lesions do not heal well, and cows may develop ‘skin horns’ on affected areas.

Sometimes the toxin causes circulating red blood cells to break down and blood pigments will stain the urine red (red water).

Sporidesmin is also excreted through the kidneys and can cause cystitis and frequent urination.

Only about 10% of affected animals show clinical signs: for every clinical case there will be 10 cows with sub-clinical FE4.

The extent of subclinical disease can be monitored by measuring levels of gamma glutamyl transferase (GGT) in blood which is closely correlated with the amount of liver damage.

Levels of 250 IU/L indicate moderate damage.

Sub-clinical FE cows may show clinical signs after cumulative doses of toxin, or they may lose production and body condition, be unable to regain condition after drying off, or suffer liver failure and “spring eczema” (photosensitisation signs) early in the subsequent season.

Predicting risk

WE BUILD HEALTHY COWS

Spore numbers increase in summer and autumn; January to May are the highrisk months. Conditions are favourable for spore production when over-

night minimum grass temperatures stay at or above 12°C over four consecutive nights, and humidity is high, e.g. with drizzly rain (4-6 mm/48h), or when soil is kept moist by irrigation.

In natural outbreaks, spore counts usually show one or two small increases over several weeks, followed by a major rapid rise when the right weather conditions occur.

Given that young spores contain more toxin, pastures are more toxic when conditions promote rapid fungal growth.

Conditions for spore growth are also conducive to pasture growth: the amount of dead plant material in the base of the pasture increases, providing an ideal environment for spore production.

The risk of exposure to the toxin is traditionally predicted by counting spores, which look like microscopic hand grenades, in pasture washings.

This gives a useful prediction of risk, but there are two caveats: ■■ Fungal growth does not occur evenly across a farm, or indeed across a paddock. Counts may be higher in ‘hot spots’ such as sheltered hollows, alongside hedges, and on north-facing slopes of hills.

■■ The toxin will leach as spores age, a process accelerated by heavy rain, so counts may over-predict risk.

While district counts can be used as a general guide, spore counts for individual paddocks are needed to predict risk accurately.

The general recommendation is that preventative treatments begin before pasture spore counts rise above 20,000/g pasture.

Counts of 40,000/g or more should be considered toxic and control measures will be required to limit liver damage.

Laboratories and veterinary clinics have established processes to collate pasture spore count information over summer and autumn.

Local variations can be large however, and farms with a history of FE outbreaks should do their own monitoring.

Gwyn Verkerk is a Dairy NZ senior scientist.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

ANIMAL HEALTH // 29

Watch for bulling lameness FRED HOEKSTRA

HOW IS your mating going? I am doing an AI run again this year so I thought it would be a good idea to talk a bit about lameness that is more specific to this time of the year, i.e. lameness in front feet and lameness in bulls.

It is normal to get more lameness in front feet at this time of the year than at other times. Cows are bulling and when they come off the ridden cow they land on their front feet. This produces more trauma than normal walking. There is no ‘suspension’ in the front feet, in common with the feet of humans. But whereas a human can create ‘suspension’ by bending the knees, a cow can’t do that, so enormous pressure comes on the locomotion apparatus when they do land on their front feet.

Did you know that you would break your legs if you jumped off the back of a truck with your legs straight? The amount of pressure the average person would put on their feet by such a jump is about 1000kg. No wonder major damage would occur if you kept your legs straight. Similarly a lot of force goes on the front feet of a cow when they ride another cow. A lot of the lameness in the front feet is ligament damage but we do get more hoof problems as well.

This does not mean this sort of lameness is caused only by physical force.

Again, the cow must have weakened claws from laminitis and then physical force will make the problem worse resulting in lameness. If it was caused only by physical force we would see a lot more problems because, whereas most cows come on heat, not many go lame in their front feet. We can’t stop cows riding each other. We actually don’t want to stop it so we have to look at the stress levels on the cows and make sure tracks and holding yards are stone free.

Lameness in bulls is slightly different. A few things are happening with bulls when they arrive on the farm and when they go with the cows. For one, the environment is totally different – different food, routines and lifestyle. I don’t think the testosterone levels have an effect on laminitis but all the other changes currently do. We have some physical problems as well. The wear pattern in animals that walk only on pasture is different from animals that walk on hard surfaces.

When bulls suddenly walk on hard surfaces their hooves wear faster, and it will take about six weeks for a bull to adjust the growth rate to the wearing rate, so many bulls end up with thin soles. The solution to this is to have enough bulls to be able to rotate them and make sure you use them in short bursts.

Hoekstra is managing director of Veehof Dairy Services Services in New Zealand.

It’s normal for cows to get more lameness in front feet at this time of year.

How many calves will scours cost you tHis year?

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Can you afford not to vaccinate?

For further information, please call us on Toll Free 1800 885 576 ® Registered Trademark

www.coopersanimalhealth.com.au Fred Hoekstra

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

30 // MACHINERY & PRODUCTS

Robots handle 500 milkers but I’m now free to look IN A truly remarkable after the calving and transition, Robert Henother priorities,” Henningsen from Mingpool, ningsen said. “I don’t via Mt Gambier, SA, has have to put the cups on.” gone straight from a tenHe admits that it a-side herringbone shed hasn’t got much easier. to the largest cluster of “You’re learning what robot milking machines in Australia.

WORKING CLOTHES the cows are learning.

CHRIS DINGLE We are not hands-on, When Dairy News not seeing every cow, Australia visited in early December he was about to put in the so you pay more attention to the comeighth Lely robot and his third in-shed puter, particularly in picking up the signs of environmental mastitis.

Cosmix automatic feeder.

“I spend more time on the computer Henningsen used to milk 250 cows up until June 2010. He is now about to than I do in the shed. The more you’re on it, the more you get used to it.” milk 500 and virtually on his own.

The milking shed is a very open affair He looks after all the milk harvesting process by himself, with one casual with a high flexible roof for better light helper coming in three days a week, and air flow.

Henningsen’s original seven Lely mainly to clean down and move around Astronaut robot milkers were commisthe milk for the calves.

“I’m always here with the heifers sioned all at the one time in June 2010.

WHO:

Robert Henningsen WHERE:

Mingpool WHAT:

Automated milkers

This latest installation is the fifteenth Lely robot milker installed by Dairy Tech South East of Mt Gambier, spread over three local dairies.

It’s been a fairly steep learning curve for Lely Australia as well as the dealership and the farmers.

Dealer principal Rob Ciavatta said the milking process is “absolutely perfect”.

“For instance, yesterday the robots milked 1000 cows with just two failed milkings.

“Rob Henningsen is our oldest automatic calf feeder customer and has had an absolutely exceptional run. He now has two feeders, each with four stations and is feeding 450 calves at any one time.”

Training for the robots involved walking the cows through the units with feed to get them used to it, and allowing the computer’s memory to locate the teats and match them up with each cow’s neckband transponder.

Both Ciavatta and Henningsen said they were surprised at how quickly the cows learnt and accepted the system.

Jurgen Steen is Lely Australia’s manager for dairy equipment and he explained that a milk line configuration unique to Australian dairies is to cater for our seasonal calving system.

They have set up a preventative maintenance schedule where each robot is serviced three times per year, plus Lely Australia provides a 24 hour support team.

Henningsen’s rationale behind this level of automation was to build herd numbers and individual production levels.

He said the original decision to go for robots was to solve the problem of labour.

“Trying to get people to work in the dairy was very difficult. We had to find a Above: Robert Henningsen’s eighth Lely A4 Astronaut robot milker at Dairy Tech South East’s workshop, awaiting delivery.

Left: Robert outside the light and airy miking shed, which also contains the three Lely Cosmic auto feeders.

better way. Plus, instead of having cows standing around busting with milk they can come up any time to be milked.”

When he was thinking about the upgrade he went to see Simon Scowen’s five robot milker installation at Kongorong, south west of Mt Gambier.

“My main worry was putting the cups on, but it did it very efficiently, using lasers to locate the teats.

Each robot milks 20 hours per day and harvests 2000 litres.

A 1600 litre buffer milk tank system allows the robots to keep operating while the tanker picks up from the main vat. Ciavatta said this had been the only real area of service issues.

The robot’s readout includes a conductivity indicator for mastitis and they are working on fat and protein level measurements, which will come with the latest new "We had a good year machine. getting cows in calf after The automation has meant putting the system in." that paddock management has become of prime importance “This system realises the full poten- and Henningsen has needed to become tial for the individual cows. very proficient at that.

“Grain is fed evenly throughout the He admits that he is still learning. day, which has to be better for diges“We divide the property up into four tion and production. Since we put the paddocks, three grazing and one draftsystem in we had a good year last year ing, appropriately named A, B, C and D. getting cows in calf.”

“At any one time there are cows in all The cows can come up any time of three grazing paddocks. the day – as often as they like – to be “They are continually being drafted milked, and can then go to one of the onto a fresh paddock. It has taken 12 automatic feeders close by the robots in months to work out grazing rates.” the shed to get their total mixed ration.

They work on a high feed ration If the neckband reader recognises based on the cow’s production, rangthat they have been milked within the ing from 9kg/day for the heifers and up previous four hours, it drafts them away to 15kg for the high performers.

The best cows currently produce from the robot to either the feeders or between 62 and 70 litres per day. back out to the paddock.

JANTEC ELECTRONIC HERD IDENTIFICATION • Accurate cow identification • Automatic feeding • Voice and visual alerting system

• Automatic drafting, pre-draft and post-draft • Easy to use

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DAIRY NEWS AUSTRALIA FEBRUARY, 2012

MACHINERY & PRODUCTS // 31

Shed system cuts SCC and mastitis BARBARA GILLHAM

trol mastitis, such as dry cow therapy, proper maintenance of milking equipment and treating clinical lactation, the firm said the cornerstone has always been teat spraying which can be both time consuming and prone to human error if staff are less than thorough in what they are doing.

Developed in the UK, ADF Milking has been operating since 2004. The system, designed to disinfect the teat immediately after milking and sanitise the cluster between cows, has already proven popu-

MORE THAN 30 farmers turned out for a field day to see and hear how automation in the milking shed is helping one Canterbury, NZ, dairy farmer cut cell counts and combat mastitis.

Martin Early, Mayfield, had an Automatic Dipping and Flushing (ADF) milking system installed in his 54 bail, rotary platform in August last year. He said it’s one of the “best things” he has done on the highly productive spray irrigated farm.

An ongoing FARM FACTS problem with mastitis in the 920-cow herd Where: Mayfield, Canterbury. had driven Area: 395ha total; 239ha him to look milking platform.

Herd: 920, spring calved. for an effecProduction: 454,100kgMS tive method total; 495kgMS/cow, of controlling 1,900kgMS/ha. it, something Staff: 4.5 full time plus owner. he believes he Input level: System 4. has now achieved thanks to the lar overseas and is being system. used on farms in Europe, At the field day Early showed visitors the system the US and Canada. It was in operation and answered introduced in New Zeaquestions, saying his expe- land and Australia two years ago. rience with it has been The open day at the “excellent.”

Early’s farm allowed farmADF said Early’s experiences and opinion of the ers to talk with and quessuccess of the system echo tion ADF Milking founder, James Duke, visiting New those of other farmers Zealand. throughout the country.

“New Zealand dairy While most farmers farmers are a bit more caufollow traditional best tious than farmers overpractice methods to con-

Martin Early and ADF founder James Duke discuss the recent installation of ADF in the dairy shed.

seas and are looking at results,” Duke said.

“Mastitis is the biggest cost dairy farmers have and until now it was not easy to control, but looking at the figures they were generally happy with the

results they saw for ADF. “New Zealand is an exciting market and farmers here can benefit greatly from the ADF system.

It was made for people like New Zealand dairy farmers.”

Martin Early talks to farmers at the open day.

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

32 // MACHINERY & PRODUCTS

Upgrade on RTVs For those who want YOU MAY remember to serenade the cows when we featured Oliver and calves it has stanCarson’s two-seater dard speakers and preKubota RTV500 in our wiring for an optional Working Clothes column AM/FM/CD player. last September. Carson In that sector of the told us how useful it was industry, it is interestfor feeding or picking up ing to note that, despite calves, moving hay bales NEW PRODUCTS CHRIS DINGLE the ongoing controversy around and odd jobs over ‘crush protection around the dairy, particdevices’, sales of ATVs boomed last year, ularly in wet and muddy conditions.

Kubota has now introduced an up 18.4% on 2010. upgraded RTV1100 with cab, air conditioning, heater and defroster, and Kverneland Group sliding windows. They say it’s the first- up for grabs available utility vehicle engineered for There is still doubt over the sale of Norall-weather protection and comfort. wegian company Kverneland, whose The RTV1100 features a 24.8HP hay making products are well-known Kubota diesel engine and comes stan- in Australia. dard with variable hydrostatic transThe stable of brands – Accord, mission, power steering, front guard, Taarup, Kverneland, Vicon – originally 4-wheel wet-disc brakes, hydraulic bed- introduced here by the Gendore operlift system and over 500kg of cargo-load ation at Tooradin, are now distributed capacity in the .455cu metre cargo tray. by PFG. The unloaded tray height of 800mm Reports from overseas say that makes for easy loading.

Kubota seems to be a front-runner in It meets OSHA 1928.53 and SAE the sale although Australian manager J2194 Roll Over Protection standards, Mark Taylor says that he is not specuand additional features include retract- lating yet on any outcome. able seatbelts, a large under-seat storage One wonders where that may leave area, padded headrests and premium PFG as these brands are the mainstay of cloth seating. their hay and silage gear.

Beware the robot revolution As you can tell from our Working Clothes story this month, robot milkers really are the flavour of the year.

After a slow start and many industry reservations about Max and Elaine Warren’s installation in 2004, the last 18 months or so have seen an avid take-up.

Max was very much in evidence at Elmore Field Days on the Lely stand telling other farmers all about it.

Paul McGrath from GV Dairy at Shepparton reports that Peter Costello from Tongala is having good results from his two DeLaval VMS units and he also was happy to share experiences at International Dairy Week.

Grant and Leesa Williams from Hallora will be discussing their robotic decisions at the Australian Dairy Conference at Warragul next month (www. australiandairyconferences.com.au).

Plus Rob Ciavatta at Dairy Tech South East in Mt Gambier tells us he has had an enquiry for 12 Lely Astronauts for one dairy.

Machinery up and down Machinery sales for 2011 ended very

well, according to Alan Kirsten at Agriview, with tractor sales up 9% on the previous calendar year.

However, the market sector most popular for dairy farmers, 80 to 120 PTO hp, virtually stood still – Victorian sales in this range was within one unit of 2010.

Round and large square baler sales for the last quarter were one of the smallest on record, 35% lower than the same quarter of 2010.

Overall, 2011 was down 30% on 2011.

It reflects the situation that contractors in this part of the industry were hurting with activity down by one-third, mainly due to low hay prices.

Kirsten said that baler sales peaked in 2007 and have been declining every year since.

Having said all that, he is still optimistic for the coming year, with investing in machinery for productivity gains continuing to be a major priority (as we have witnessed in the growth in the robotic milking area).

Kirsten’s message still is; plan your purchases well ahead as supply is easing slightly.

Dairy Hog Case IH has announced that every PUMA LWB CVT tractor sold before the end of March will include a $14,250 Harley-Davidson Sportster 883. So for all those dairy farmers who’ve yearned to be a rebel it would seem to be too good a chance to miss.

Contact Chris on 0417 735 001 or email chris@springbankfarm.com.au

Bale up a deal.

Pre-order a new hay baler and save thousands for next season.

You want perfectly round bales. You want dense cores that stand up well and shed water easily. You want consistent, high-quality, nutrient-rich hay. Then what you really want is a John Deere 468 silage special round baler, loaded with all the features that make it

our best selling baler in Australia. Right now there’s even more reason to pre-order. Bale up your local dealer before the end of February 2012 for prices that will surprise.

Nothing Runs Like A Deere.™

JohnDeere.com.au/baleupadeal

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

MACHINERY & PRODUCTS // 33

New loaders suit all models HEAVY-DUTY LOADERS from

John Deere equally suit many sizes of the company’s new and older model tractors.

The new H Series loaders, which replace the previous loader models, have more cast-steel connecting points and better visibility, and they have integrated components that make installation and removal easier.

The H Series loaders, compatible with many John Deere tractor models, have different levelling options, non-self levelling (NSL)

or mechanical self-levelling (MSL), depending on customer needs and legal/safety requirements.

More cast-steel components in high-stress, high-load areas of the loaders helps them handle big jobs with ease and extend working life, a JD spokesman says.

“All major boom pin connection points are cast-steel for better pin alignment and reduced load stress which is an improvement over traditional bushing-type joints.

“We’ve also designed the H Series

‘One man easy’ balerwrapper

‘ONE MAN easy’ sum-

marises the running of a new compact baler-wrapper from Kuhn.

The company says its i-BIO baler-wrapper combination is a “light-weight, efficient and high-speed one-man” machine.

It weighs no more than 3.5 tonnes (unloaded), is “manoeuvrable and suitable for smaller tractors and ideal for small paddocks with narrow access and hilly areas.”

Isobus-compatible and using Kuhn’s patented IntelliWrap bale wrapping facility and new forage intake system (integral to the machine), the i-BIO requires no bale transfer during the making/wrapping process. Instead the

upper part of the bale chamber opens after bale formation and binding, allowing pre-stretchers (fitted on a crown gear) to carry out the wrapping.

The machine has a 2.3m wide pick-up.

The IntelliWrap system uses electronics and hydraulics to gain flexibility and control during wrapping. The system allows control of the percentage film overlap and enables the number of film layers to be set simply by pressing a terminal key.

The operator gets a good view, from the tractor seat, of all net binding, wrapping and discharge operations, without need for a camera. www.kuhn.com.au

with a lower torque tube and concealed oil lines within the loader boom to give it a cleaner look, improve over-the-hood visibility and reduce potential for damage to oil lines.”

In addition, John Deere has added integrated parking stands and pins into the loader which, combined with a single-point hydraulic connection system, allows the loader to be quickly removed or reinstalled with virtually no oil loss. www.johndeere.com.au

The new H Series loaders have more cast-steel connecting points and integrated components that make installation and removal easier.

GOOD NEWS FOR FARMERS! “Save big $ on Aitchison 3000 & 3100 Disc or Tine & Coulter Seed Drills during our 3000 series model run out sale”

PRACTICAL OPTIONS TO HANDLE EVERY SEEDING REQUIREMENT AITCHISON 3000 / 3100 SERIES TINE AND DISC DRILLS • 2.4m (8ft) sowing width, 16 run, or 3.0m (10ft) sowing width 20 run • 150mm row spacing • Seed and fertiliser box or seed box only • Linkage mount or trailed • Tine with disc coulter or 355mm concave disc • Seed bin dividers and agitator • Aitchison hectaremeter and rear tread board standard CONTACT YOUR LOCAL REESE AGRI AITCHISON DEALER FOR DETAILS FREEPHONE 1800 140 196 BRENDAN PRENTICE 0400 540 300 REESE ENGINEERING LTD GEELONG, VICTORIA EMAIL reeseagri@bigpond.com WEBSITE www.reeseagri.com.au

DAIRY NEWS AUSTRALIA FEBRUARY, 2012

34 // MOTORING

When you need to go very fast US ATV maker Polaris has launched another “extreme performance’ 4x4 side-by-side machine: the RZR XP 4 900 with grunt – 88hp.

Production is now underway in the USA.

Says Polaris, “The ultimate combination of power, suspension and agility is found in the RZR family.

“The RZR XP 4 900 is the most-capable, highest-powered, multi-passenger side-by-side with the longest wheel-

base making it the ultimate performance vehicle in the market place.”

It has many of the features of the RZR XP 900 launched last January: 88hp ProStar 900 twin engine, 3-link trailing

Honda CR-Z named Wheels Car of the Year HONDA’S ALL-NEW sporty

coupe, the CR-Z, has been crowned Wheels’ Car of the Year 2011.

Last month’s award sits alongside other accolades including Japan’s Car of the Year and Top Gear UK magazine’s Green Car of the Year.

The world’s first hybrid with a six-speed manual transmission, the CR-Z took top honours from a field of 28 models and 64 variants.

Wheels judges put the CR-Z through its paces over a week of intensive testing.

Wheels magazine’s award is the world’s longest continuously running Car of the Year Award.

Editor Bill Thomas said the CR-Z takes the idea of the car in a direction the magazine thinks it should go – it’s innovative, trendsetting, efficient and fun to drive.

“We think the spirit of Honda shines through. Cars don’t have to be ‘supercars’ to be fun.

“It’s the CR-Z’s balance of abilities – the combination of price, performance and fun.”

Wheels judge John Carey said the CR-Z was expertly engi-

neered, impressively efficient, had strong safety credentials and was also a genuine joy to drive.

“Endowed with the kind of handling and steering that invites involvement, the Honda puts a smile on the face of any driver who accepts the invitation.”

The 2011 Wheels Car of the Year Award is the sixth won by Honda.

The first was the original Honda Accord in 1977 and the first Japanese car to win the award.

Other Honda models to win include the Prelude in 1987, NSX in 1991 ( joint with Nissan Pulsar), Odyssey in 1995 and Accord Euro in 2008.

Honda was the first to introduce hybrid motoring in Australia with the launch of the first-generation Insight in 2001.

The CR-Z joins the Insight and the Civic Hybrid as part of Honda’s current hybrid offering.

While the hybrid category is still in its infancy in Australia, Honda has sold more than 750,000 Honda hybrids worldwide.

There are more than 400,000 Hondas on the road in Australia.

arm independent rear suspension (IRS) with 31.8cm ground clearance and 35.6cm travel, on-demand true AWD and low center of gravity; and a 271.8cm wheelbase.

“Polaris continues... developing highly sought-after vehicles that offer the ultimate combination of power, suspension and agility,” says Peter Harvey, country manager – Polaris Australia and New Zealand.

“With the instant success of the RZR XP 900 and the popularity of multi-passenger vehicles throughout the industry, it was a natural progression to develop an extreme-performing vehicle that four can enjoy.”

The 88hp ProStar 900 Twin EFI engine was built specifically for extreme performance and first installed in the RZR XP 900. The engine has dual overhead cams (DOHC), four big valves per cylinder and dual throttle bodies located close to the intake valves for fast throttle response and acceleration.

To handle this much power and still keep the ride smooth, the RZR XP 4 900

features a 3-Link trailing arm IRS. The 3-link design consists of two extra-long radius rods and a far forward-connecting trailing arm – strong yet light.

And, for the first time on a sideby-side, the RZR XP 4 900 will have 6.4cm-body Walker Evans rear shocks, the largest stock shocks on the market.

These deliver higher damping forces and avoid shock fade compared to a 2-inch body shock, thanks to a 35% larger piston area that reduces internal pressure and heat generation. The shock also contains 35% more oil to slow the rate of heat buildup.

Centre of gravity is low. The enginebehind-the-seat design and the placement of key components make for even weight distribution.

To provide precise cornering, the suspension’s radius rods extend deep into the wheel hubs and feature an uneven link geometry that optimises camber. This allows the tyres to lean into the corner through the suspension travel, and plant more surface on the ground for maximum control. www.polarissales.com.au

Compass leads new Jeep charge in Australia THE COMPACT new Jeep

Compass SUV is now on sale in Australia, combining sophisticated styling with capability, economy and value underscored by the introduction of two wheel drive variants.

Chrysler Australia CEO Clyde Campbell said the new Compass was a key element in building the Jeep brand in Australia.

The Compass boasts a host of interior refinements, with soft touch points and high quality materials along with improved ride and handling courtesy of upgraded steering and suspension systems.

It features a sophisticated new design, with cues coming directly from the brand’s premium icon, the multiple awardwinning Jeep Grand Cherokee.

Coupled with a tasteful interior, Jeep Compass offers a unique blend of premium styling, capability, efficiency and value set to broaden the brand’s stake in the compact-SUV segment.

Jeep said calibration improvements to the available continuously-variable transmission II (CVT2) provide drivers with better launch accel-

eration, smoother deceleration when coasting from 40km/h, improved pedal responsiveness and reduced engine revolutions per minute (rpm) when accelerating at mid-throttle.

The Compass also boasts more than 30 safety and security features, including standard electronic stability program (ESC), electronic roll mitigation, Hillstart Assist (with manual transmission), side-curtain airbags for all rows and available front-seatmounted side air bags.

The Compass offers several features, including the Uconnec® media centre with iPod interface, satellite navigation, power sunroof, a premium audio system with nine Boston Acoustic speakers, illuminated cup

holders, liftgate speakers and fold-flat rear seats.

Standard features include air conditioning, power windows, power locks, power/heated exterior mirrors, keyless entry, 17-inch aluminium wheels, fog lamps, cruise control, illuminated cup holders, a removable/ rechargeable light, outside temperature display, electronic stability control, front driver and passenger active head restraints, electronic roll mitigation, Hillstart Assist, all-row side-curtain air bags, anti-lock disc brakes, 60/40 fold-flat rear seat and sunscreen glass.

Prices start from $26,500, excluding government charges and dealer delivery, for the twolitre manual 2WD.

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As the name suggests, Zoom T M tetraploid annual ryegrass is fast – fast to establish and with rapid re-growth.

Cropmark Seeds’ advert for ZoomTM might be a bit over the top when it suggests that “any faster and it would get a speeding ticket” – but you can get the picture.

ZoomTM, a recent release from the Cropmark Seeds plant breeding programme, was bred as a specialized winter feed.

The key plant breeding objectives in breeding this remarkable grass were for speed of establishment, high growth rates and yields over the autumn, winter

and spring, and with high pasture quality for longer into spring.

A tetraploid annual ryegrass, ZoomTM is a specialized winter feed crop for farmers wanting bulk feed for 6–10 months before ploughing it up for a summer crop.

In trials conducted by Cropmark

Zoom – the king of annual ryegrasses TM

Trial Data

To view the performance of Zoom in trials, visit our web site: www.cropmark.com.au/Trial-Data.aspx

ZoomTM is the latest tetraploid annual ryegrass from Cropmark Seed’s plant breeding programme.

ZoomTM is a specialist winter feed. An ideal break crop between maize and other crops, it is very quick to establish and shows exceptional autumn/winter growth and rapid re-growth. ZoomTM offers the advantages of excellent palatability and high metabolisable energy content.

ZoomTM can provide multiple grazings over autumn and winter before being shut up for high quality silage in the spring.

For further information on Zoom, contact our regional agronomists: Western Districts, SA, Tasmania: Jason Hill – 0427 607 375 North & East Victoria, NSW: Adam Sheedy – 0428 132 096

www.cropmark.com.au

“The ZoomTM was really quick to strike and was very thick with plenty of leaf. We have so much extra growth, and were still getting more grazings off it after it headed.

The cows lap it up well due to its palatability and milk well on it.”

Jason Rixon – dairy farmer, Biggara Valley, North East Victoria

ZOOM IS AVAILABLE FROM YOUR LOCAL SEED MERCHANT OR FARM MERCHANDISE OUTLET

Cropmark Seeds Australia Pty Ltd Freephone: 1800 889 039 Freefax: 1800 889 037

throughout Victoria, Zoom T M has outperformed traditional Westerwolds annual ryegrass varieties in autumn, winter and spring.

It is later-heading than many of the traditional annual ryegrasses, +17 days relative to Nui. It stays vegetative for longer, carrying its quality longer into spring than the cheaper annual ryegrasses. And the Cropmark team say that in their trials ZoomTM has persisted slightly longer into the spring than traditional annual ryegrasses – a bonus for those wanting an extra grazing or to take a silage or hay crop off their pasture.

Farmers say they are getting multiple grazings off their ZoomTM paddocks over the autumn, winter, and early spring before shutting up for silage or hay.

One such farmer is Jason Rixon who milks 170 cows on 260 hectares in the Biggara Valley in North East Victoria.

“This is the first time I have sown ZoomTM as it was recommended to me by a local agronomist for its late heading date. I’ve always used Tetila until now, but after using ZoomTM this year, I will definitely use ZoomTM from now on.”

“ZoomTM is miles ahead of Tetila when you look at what you get per hectare. It was really quick to strike and was very thick, with plenty of leaf, giving us plenty of feed. ZoomTM has also outperformed the Crusader to this point.”

“I sowed it in late April and had 5 grazings off it, even though conditions were very wet. We have had so much extra growth off the ZoomTM, and due to its late heading we were still getting more grazings off it after it had headed.”

“The cows lap it up well due to the palatability and milk well on it too.”

Another such farmer is Jake Follett, who milks 500 cows on 250 hectares in Poowong North in South Gippsland.

“I have been using ZoomTM for 2 years now and will continue to use it again, as it performs really well on our sandy paddocks, and for longer into the season than other varieties.”

“We sowed 30 hectares of ZoomTM in mid March. It was quick to establish and jumped out of the ground. We’ve grazed it at least 7 times and have taken a good cut of silage off it as well, even after a wet winter.”

“Our cows milk really well on ZoomTM and seem to love eating it too.”

Seeds

WHAT’S ON THE CARDS FOR YOUR PASTURES?

You can’t predict the future, but you can plan for it.

You can’t always be sure what Mother Nature’s going to deal you. So it makes sense to plan now to have more grass when you need it most.

For over 70 years, we’ve been giving Australian farmers a hand in reducing risk by helping them plan and sow for the future. It’s all about getting the balance right. If you get the right mix and seed, you can enjoy more frequency of growth throughout winter and spring. Which is why we spend over $1 million every year on research to develop seed for Australian farming conditions.

Don’t leave your winter and spring pastures to chance.

To discuss your growth plans, call your local Pasture Specialist on 1800 421 868.

wrightsonseeds.com.au