DNA May 2011 by Rural News Group

NFF outlines food security plans Page 8

Larger Kuhn feeder Page 33

Feed pad expansion Page 25 issue 14: may 2011

Would you cover this in trees? Carbon tax offset scheme farcical PAGEs 6-7

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DAIRY NEWS AUSTRALIA // MAY 2011

NEWS

Watch your calves TAKE OFF Producers should look for maximum efficacy against the youngest liver fluke possible when choosing a product for the control of liver fluke. High levels of efficacy will minimise the liver damage caused by the migrating young fluke and in the process minimise the economic losses resulting from the disease.

This issue Issue 14: MAY 2011 Bega Cheese executive chairman Barry Irvin says the company’s public listing could raise $375m.

Inject profit into your wallet

Interest rate rise could hurt prices INTEREST RATE rises – foreshadowed for later

Western Victorian farmers Adam and Natalie Roberts were named Employers of the Year.

A weight gain study by independent parasitologist Dr Joe Boray has clearly demonstrated the economic advantage in removing early immature flukes. In that study 4, animals treated to remove early immature flukes 1-2 weeks postinfection had greater weight gain than animals treated 4-6 or 8-12 weeks post-infection. Over 20 weeks, the average body weight of the early treated group was 8kg heavier than the group treated 4-6 weeks post-infection and 13kg heavier than the group that had the fluke removed when they were mature.

in the year – could adversely affect Australia’s competiveness in the international market place and place pressure on opening farmgate prices. Although the Australian dollar continues to set new trading records, smashing through the US$1.10 barrier this month, the latest hike in the Australian exchange rate remains in line with most other major currencies – including the Euro. However, Dairy Australia analyst Joanne Bills says rising interest rates could increase the attractiveness of the Australian dollar relative to other currencies. “This would put us out of step with other dairy exporters and importing countries. It would have an effect on Australia’s competitive-

ness and be of greater concern.” The international market has been relatively stable for much of the past year, and remains tightly balanced. International milk prices in Fonterra’s fortnightly auction – the globalDairyTrade (gDT) trade weighted index – rose 0.1% in early May. The average winning price rose to $US4293 from US$US4280 a fortnight ago. That followed a fall of 2.4% in April and a fall of 8.2% in mid-March. Despite those declines, prices remained at elevated levels. Bills says while the high Australian dollar does impact the final farmgate price negatively, the current situation is preferable to one in which our currency is much stronger than our competitors or customers. “With a reasonably stable international mar-

Dean Thorpe admits he farms on virtual beach sand on the SA coast.

News ��3-15 Opinion ��16-17

Control the destructive new generation of liver flukes.

Agribusiness ��18-19 Management ��20-24 Animal Health ��25-29 Machinery & Products ��30-33 motoring ��34 Rounding up the cows on Brian Tessmann’s property in Queensland South Burnett district. Page 4.

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ket, the weak US dollar will serve to hold up international dairy commodity prices,” she says. Looking forward, Bills says the current uncertainty surrounding the US economy, and currency markets in particular, may require a more cautious approach to early season prices. “Company hedging strategies will be important in minimizing the impact of further rises.” While expectations of increased supply may see commodity prices soften slightly in coming months, Bills says strong demand is likely to absorb projected increases in export availability. “While a lower Aussie dollar would give us all more comfort heading into next season, a stable international market outlook should still provide good returns - as long as our currency doesn’t get too far ahead of the pack.”

DAIRY NEWS AUSTRALIA // MAY 2011

news

More support for milk ombudsman Nat Foods buys more milk in south, less in north

CONSUMER

ADVOCACY

group Choice and the Australian Food and Grocery Council support the Queensland Dairyfarmers Organisation’s call for a supermarket ombudsman. The call comes as part of the Senate Economic Committee’s inquiry into discount milk pricing. The QDO lodged 10 recommendations to the Senate Economics Committee last month, including: • Establishing a mandatory Australian Drinking Milk Code of Conduct to deal with the complex relationship between farmers, processors,

distributors and retailers. • Appointing a commissioner to head the Australian Drinking Milk Code of Conduct. • Having the government amend the legislation to strengthen the anti-competitive price discrimination provisions and to introduce a competition and sustainability ‘effects test’. Choice and the AFGC say a supermarket ombudsmen would create “transparency and fairness” along the supply chain. AFGC CEO Kate Carnell says there is an urgent need for a supermarket ombudsman.

The Senate Economics Committee received a response from Coles the day before it was due to table its report.

“The ombudsman would ensure regulators enforced their rules,” Carnell says. Choice CEO Nick Stace questioned whether recent actions from the major supermarkets are a sign of genuine competition or a short-term strategy that may erode competition

further and see price rises in the future. The Committee was supposed to release its finding last month. However, it sought an extension of its reporting date and will now release an interim finding on May 20. It will then collect and assess

further information and examine developments in the dairy industry as they occur for its final report, which will be tabled by October 1. The Committee received 151 submissions in addition to its public hearings. Chair, Senator Alan Eggleston, says the committee was aware of the public interest in the findings, but also had to balance this with the quality of the analysis. “Many of the issues which are the subject of this inquiry require ongoing scrutiny. There are complex interactions between farmers, processors and

retailers; and short-term effects may differ significantly from medium-term effects.” The committee also only received Coles’ responses to their questions on notice the day before it was due to table its report. It did issue one interim finding, calling on the Government to table a formal response to the Senate Economic Committee’s report: Milking it for all it’s worth—competition and pricing in the Australian dairy industry by May 13, which will be a year after it was tabled. There has been no response from the Government to date.

Pressure mounts on northern farmers NSW farmers MARKET FAILURE is threatening

to trigger another wave of farmers exiting the northern dairy industry. Farmers are disillusioned that the milk price is distorted and not reflecting the reality of supply and demand, says Queensland Dairyfarmers’ Organisation President Brian Tessmann. The farmgate price is under downward pressure from supermarket discounting at a time when milk is in short supply in the aftermath of disastrous flooding and extreme weather events. “Milk cheques for many dairy farmers have already dropped in Queensland due to the milk price war, despite claims to the contrary by Coles,” Tessmann says. “A lot of farmers have been holding on, hoping for an improved price signal in the new financial year.” He says with the market in fact going the other way, a lot of people will be seriously considering their future and farmer morale is at a very low ebb. “We’ve lost our manufacturing base in Queensland and are totally reliant on the fresh market. Our industry has been reduced to about 600 farms, scattered in small pockets around the State.” If the northern dairy industry suffers further contraction, processors will have the added expense

QDO president Brian Tessmann

of shipping milk from southern regions where there is no great surplus, especially on a year-round basis. Tessmann says the QDO is advocating an inquiry into the milk discounting war by the Australian Competition and Consumer Commission.

“We believe there also needs to be a mandatory Code of Conduct for drinking milk in Australia to deal with the complex relationship between farmers, processors, distributors and retailers. “It needs to be headed by a Commissioner with the power to apply a sustainability test to any contract

within the supply chain. The Commissioner will need to be able to direct mediation and also to arbitrate.” Tessmann says collective bargaining by farm supply groups also needs to be strengthened. He says farmers are extremely frustrated at the slow pace of action by government with the interim report of the Senate Inquiry released on April 20 just adding to delays. “We understand that the Senate has an extremely difficult task with this inquiry – especially with Coles only responding to questions on notice a day before the interim report was due. “However farmers, especially in Queensland, are being really hurt by the milk price war and the longer the delay in getting any action, the greater the impact.” Tessmann says comments by Woolworths CEO Michael Luscombe that his company will not be the first to move its milk prices upwards highlighted the urgency for the Government to act. “Clearly there is a standoff between the major retailers. And dairy farmers are the ones caught in the crossfire.” He urges consumers concerned about the supermarket pricing tactics to buy processor branded milk.

show their pain

NSW SOUTH Coast dairy farmers, from Gerringong to Bodalla and the Southern Highlands, have placed over 100 signs on roadside paddocks and farm gates to raise community awareness about the detrimental impact the Coles discount milk campaign is having on the dairy industry and the community. Local farmer David Boyd says farmers in the Illawarra, Shoalhaven, South Coast and Southern Highlands are united in fighting to save the dairy industry from Coles’ attack. “We are asking consumers to help us to remain sustainable by buying branded milk,” Boyd says. “Farmers in the south coast believe that the Australian Government and the ACCC have both failed by allowing Coles to continue to abuse its market power.

“Coles is not the saviour of the Australian consumer. What shoppers save today they will be paying for in the future.” Boyd says Coles’ short-term marketing campaign will lead to long-term collateral damage and will impact NSW farmers directly as fresh milk is devalued, processors are squeezed, farm gate prices are dropped and the ability to produce fresh milk daily becomes unaffordable and unsustainable. Boyd says the number of signs along the south coast aim to show how widespread the effects of this marketing ploy will be. “Farmers can persevere through some extremely tough times – drought, fire, flood, GFCs and rising commodity prices – but this marketing ploy threatens the survival of our dairy farmers and our industry in the region.”

NATIONAL FOODS will purchase more milk at

a tier one price from Dairy Farmers Milk Co-operative suppliers in Victoria and SA next year, but significantly less in Queensland and NSW. DMFC chairman Ian Zandstra says contracted supply falls of 4 million litres in Far North Queensland and 38m litres in South East Queensland were due to National Foods losing the contract to supply Woolworths’ private label drinking milk contract last September. The fall of 33m litres in NSW is due to factory closures by National Foods. In total, National Foods will purchase 870 million litres (with a 10% variance either way) from DFMC suppliers at a tier one price. Zandstra said National Foods faces a challenging consumer market, making negotiations pretty tough. “The negotiation process was drawn out over several months and included two sessions with an independent mediator. “Nonetheless, both sides stuck at it and we have been able to achieve what the board considers is a mutually beneficial commercial outcome.” In summary, National Foods will purchase 51m litres from Far North Queensland, 95m from South East Queensland, 149m litres from north Victoria/Riverina (10m litres more than last year), 177m litres from Western Victoria/ Mt Gambier (same), 67m litres from central SA (3m more) and 333m litres from NSW – subject to the retention of their Woolworths contract. National Foods will bid for the NSW Woolworths contract, which expires on August 30,

but should they fail to win it DMFC has agreed on a new deal. Contingency measures include working with National Foods and third parties to find a highvalue home for the impacted milk volumes. National Foods general manager milk procurement, Murray Jeffrey, says the agreement is a good result for a long-term and sustainable milk business. “It is critical our business has the right amount of milk for our manufacturing needs, especially in the Northern States where excess milk has plagued the ability of manufacturers to return profits in these states.

“National Foods has worked extremely hard to mitigate the impacts on-farm for contract realignments.” In Far North Queensland, National Foods has secured agreement to co-pack 9 million litres of milk for Parmalat’s private label contract with Woolworths, which means the contract has been decreased by just 4 million litres. “We recognise that whilst changes to the AFD are positive in some states. Both South East Queensland and NSW volume decreases will have a bigger impact and we will be working closely with our supply groups to manage these outcomes,” Jeffrey says.

Burra, WCB raise prices GIPPSLAND-BASED Burra Foods announced its third step-up for the season last month, raising its price for milk solids by 12c/kg – bringing its annual weighted average price to $5.25/kg of milk solids. The increase includes a 7c/kg increase for butterfat and 17c/kg rise for protein. “We are seeing global commodity prices coming back and showing signs of easing, so we are keeping our eye on that,” says Burra Foods commercial manager Dale O’Neill. “We expect another step-up later this year or early next year.” Meantime, Warrnambool Cheese and Butter have also lifted its milk

price to $5.40/kg of milk solids. This represents a lift of 20c/kg for protein and 10c/kg for butterfat and will be paid retrospectively for milk supplied from the beginning of the financial year. “Dairy supply and demand fundamentals remain sound and in recent months we have seen continued stability in dairy prices,” WCB CEO David Lord says. It is the second step-up for WCB suppliers this year and an increase from January’s price of $5.25/kg of milk solids. The rise in milk payments is in line with Dairy Australia’s prediction in February of an average of $5.30-$5.50/kg of milk solids this season.

US levy could add $20/t to exports A NEW US levy on dairy imports could add as much as $20/t to Australian exports, according to Dairy Australia. All dairy exports to the US, from August 1, will attract a new levy imposed by US dairy farmers but opposed by global exporters. The levy of 10c/ cwt (45.5kg) on all dairybased imports into the US will help pay for dairy research and consumption. After 10 years lobbying by the National Milk Producers Federation (NMPF), the final ruling was released last month by the US Department of Agriculture (USDA). It levies cheese and butter products, and dry ingredients such as casein and milk protein concentrates. The National Dairy Board will collect the money for nutrition research, consumer education, ‘issues management’ and building demand for dairy consumption. Murray Goulburn spokesman Robert Poole told Dairy News Australia the co-operative is disappointed by the US Government’s decision to apply the Dairy Import Assessment Levy. “Although the cost of this levy to MG is relatively low, these additional costs of doing business soon add up and impact our capacity to pass returns on to our dairy farmershareholders,” Poole says. Dairy Australia Trade and Strategy Manager, Chris Phillips, says

the quota is not WTO compliant. “It’s an unfair tax because our access is restricted on quota. The levy will be spent on promotion but if consumption increases we can’t capitalise.” He says the levy reduces the profitability of selling to the US, but strong world demand meant there were many other options available. “It’s a negative, but it’s not going to change the world. It’s more about the principle of people imposing these restrictions as other countries may adopt it.” Fonterra agrees, saying the decision sets a precedent when most countries are looking to open trade barriers. “It is particularly hard to understand when the US itself is a net exporter of dairy products, and the third-largest dairy exporter in the world, and has more to gain from removing trade impediments than from imposing them,” a Fonterra spokesman said. The International Dairy Foods Association, representing processors, is concerned how other countries will respond. “We trade with 150 countries and continually advocate for open markets and trade policies that comply with international laws,” IDFA president Connie Tipton says. “This international tax does not help expand our US dairy export markets and has been widely opposed by our trading partners.”

DAIRY NEWS AUSTRALIA // MAY 2011

news

carbon tax: news

Tax will cost MG millions

CFI favours tree plantations

AUSTRALIA’S LARGEST dairy proc-

THE FEDERAL Government will help facilitate the sale of

essor, Murray Goulburn, says a carbon tax will cost it millions – which will be passed back to its suppliers. Spokesman Robert Poole says the co-operative cannot significantly cut its emissions because producing long life and powdered milk is very power intensive. “A carbon tax in Australia doesn’t influence the world market price,” Poole says. “As everyone should know milk prices in Australia are predominantly driven by that. He says the price in the international dairy market, including Australia, isn’t going to change because of a carbon tax. “Therefore any costs that it (the car-

bon tax) imposes we have to wear and that means our farmers have to wear them.” United Dairyfarmers of Victoria President Chris Griffin says Poole’s comments echo its concerns on how a carbon tax will impact negatively on farmers, through inputs and processing, regardless of agriculture’s exclusion from direct charges under the tax. “While direct emissions from agriculture remain excluded from the carbon tax, the indirect costs on our businesses will be substantial,” Griffin says. “The dairy industry is hugely reliant on base-load electricity – particularly in the processing of dairy products for export.

“Victorian farmers have no way to pass on the additional costs Mr Poole is talking about and are not flagged to receive compensation under the tax. Griffin says, like other industries, the dairy sector’s concerns are heightened by the lack of detail being released by the government. “Additional information, such as

the rate at which the tax will operate, would at least inject some certainty into the debate and allow farmers to better prepare. “Calculations by our organisation indicate that a $20 carbon price would cost the dairy industry over $45 million per annum. This would work out to a $5000 charge for each Australian dairy farm per year.” A promise to exclude the agriculture sector’s emissions will be short-lived claims NSW Farmers’ Association President Charles Armstrong. “Recent comments from Professor Garnaut have indicated the exclusion will only be in place until the complexities of any scheme are resolved,”

Armstrong says. “However, the cost of producing food will increase regardless of whether agricultural emissions are excluded.” He cites the Australian Farm Institute estimates that the farm sector will see a 9% decrease in farm cash margins as a result of higher fuel, electricity, fertiliser, transport and processing costs. “The Gillard Government has recognised a need to compensate consumers who will be forced to pay more for basics such as electricity, but has failed to recognise farmers would be in the same boat. “There hasn’t been any consideration about how farmers would cope with a massive jump in input costs.”

Speak softly, but carry a big stick AS HEAD of the National Farmers Federation, Jock Laurie will represent Australian farmers in negotiations with the Federal Government on its proposed carbon tax. Laurie has already drawn criticism from NFF’s members – the statebased farmer representative groups – for not opposing the carbon tax outright, as they have done. However, Laurie says condemning the carbon tax outright would hinder negotiations with the crossbenchers in the Federal Parliament who are critical to Prime Minister Julia Gillard’s attempts to launch the carbon tax by July 1, 2012. Laurie says the NFF will oppose any proposal that places the competitive position of farmers at risk. “The NFF’s members have been rightly voicing farmer’s dismay over the impacts of a carbon price on their ability to compete on international and domestic markets, even with agriculture’s direct emissions being excluded from the scheme,” he says. “The reality is that a carbon price works by sending a signal to consumers to reduce their usage of energy and energy-dependent products such as fuel, fertiliser and machinery – all vital inputs to farming businesses. Laurie says compensation for

How it works THE GOVERNMENT, Greens and independent MPs are working on details of the carbon tax, to start in July 2012 ahead of a full emissions trade scheme, and the levels of compensation for industry and households.

low to middle income households will not cover these additional “For many farmers, options to energy costs for businesses, leaving reduce their exposure to these farmers, as price takers energy related costs or to in the market place and attain offsets are limited or feeling exposed. “The NFF realises non-existent.” that to date, scant details have emerged about the Government’s at how we’ve changed our farming carbon tax design, particularly surrounding the critical practices, which is all about storing issues of transport fuels and food carbon and moisture retention, over the past 20 years. processing. Laurie says as an industry farmers “For many farmers, options to reduce their exposure to these energy have done more than most. However, related costs or to attain offsets are if they even question the fact that carbon tax could potentially be limited or non-existent. “We will work with the an issue, then they are labelled as Government in good faith to mitigate deniers. “Our industry has probably done the risks from these and other issues, but this does not detract from our more in this field than any other position that we will not support any group. Have a look at all the other policy that hurts Australian farm industry sectors, have a look at the Australian community as a whole, and businesses.” Laurie says it is frustrating that tell me the big changes they’ve made anybody that questions the proposed in the way they live or do business, to carbon tax is immediately labelled a store carbon and make productivity better,” he says. “It’s never recognised. climate change denier. “The fact is, that agriculture has Not at any point have I heard someone been more active in this space than say those farmers in the last 20 years probably any other industry in have actually been at the forefront Australia. Go back and have a look and they’ve done a good job.”

The Government wants a fixed price on carbon for three to five years, before moving to a full emissions trading scheme, under its plan to cut emissions by 5% of year 2000 levels by 2020, and to help fight global warming. Treasury documents, released in April, said a $30 a tonne price on carbon would add between $11 and $16 to weekly household bills, or push up prices by between 1-1.5%. The Government’s key climate adviser, Ross Garnaut, has suggested a starting price of

between $20 and $30 a tonne. The Government has promised generous compensation to export-exposed industries and to householders who face higher costs, but has yet to detail any assistance. Meanwhile, the opposition Liberal Party and big business have run a strong campaign against the carbon price, and the country’s powerful trade union movement – which is allied to Gillard’s government – has also warned it would oppose the plan if it leads to job losses.

carbon credits on domestic and international markets under its Carbon Farming Initiative. When announcing the scheme, Prime Minister Julia Gillard said there is currently no uniform way for farmers and landholders to generate carbon credits to sell into international markets. Under the CFI, the Government will legislate rules for the recognition of carbon credits that can then be sold on domestic or international markets. This means farmers will know in advance exactly what they need to do to generate credits that are internationally recognised and available for trading. Under the scheme, Gillard says farmers will be able to enter into agreements with businesses to plant a certain number of hectares of trees on less productive parts of a farm. Over time, as the forest matures and stores more pollution, credits will be issued then verified by a new independent regulator. Once verified, these credits could be sold into domestic or international markets. Buyers could include Australian companies wanting to offset their emissions. Gillard says the market will determine the price of the credits, but international credits have sold for up to $20/t over the past 18 months. The PM says the Government will provide farmers, landholders and forestry growers with the tools to understand how to generate carbon credits. NSW Nationals Senator Fiona Nash says the CFI threatens prime agricultural land. “I am very concerned that we’ll see a shift in land use for the worse, with prime agricultural land being replaced with forestry,” she says. “What’s to stop a multi-national company from buying up productive farmland and planting trees to offset its emissions and boost its environmental credentials? There is scant detail on how these threats will be managed. In

CFI no help to dairy farmers THE PROPOSED Carbon

Farming Initiative will not benefit dairy farmers, according to a Dairy Australia submission to the Government. The submission says the proposed CFI legislation should be enhanced to enable higher levels of participation by Australian dairy farmers. It says this could be done without weakening the integrity standards set in the proposal. The submission says dairy farmers will not benefit under the proposed CFI because: • The high value of dairy land (about $12,000$17,500/ha) makes carbon sink planting prohibitive, except on areas that are too steep for grazing or are adjacent to riparian areas. On most dairy farms, these areas have already been revegetated. • Flaring of methane is also likely to be cost prohibitive except for a few total mixed ration dairy farmers. • Soil carbon sequestration is also unlikely to be an option. However, broadening

the integrity standards to include the concept of emissions avoided (per unit of output) credits would create opportunities for a far greater number of dairy farmers to contribute. Emissions avoided (per unit of output) credits will require a producer to generate the same unit of product at an agreed reduction in emissions intensity. Dairy industry abatement strategies are already available that if implemented could reduce emissions intensity per unit of product by 15-22%. These include feeding oils in summer, nitrification inhibitors and feed optimisation. However, under the proposed guidelines of the CFI, these abatement strategies that reduce the emissions per unit of product can increase productivity and may result in increased profit. The guidelines suggest such practices will be ineligible as they may result in material increases in agricultural productivity or business profitability, and if there is additional production on the farm, this may be seen as creating additional emissions.

The Carbon Farming Initiative could see prime farm land planted in trees.

fact, there is scant detail on how this program will work.” Nash says her concerns have been confirmed by a CSIRO report’s findings, saying food production areas within the lower Murray Darling Basin could be replaced with trees. “The CSIRO report shows a dramatic change in land use from agriculture to `carbon sinks’ of trees in the MurrayDarling, starting at just an $11 carbon price,” she says. “What worries me the most is the Labor government will use the scheme to justify the inclusion of agriculture in a carbon tax. “The CFI contains more questions than answers.”

DAIRY NEWS AUSTRALIA // MAY 2011

news: Food security

food security: news

Food Production first priority: NFF

Australia could become world leader in food production POPULATION PROJECTIONS indicate the world

NATIONAL FARMERS Federation

president Jock Laurie has called on the Federal Government to think of Australian food production first when implementing all future policy. Laurie says a policy vacuum is seeing prime agricultural land turned into housing estates and mining and this has to stop. “If you go into NSW and Queensland, there is coal seam gas mining in many areas. “In the Liverpool Plains, NSW – some of the best farming country in Australia without a doubt – that could be put into mining,” he says. “You just sit down and scratch your head and wonder where we’re going. “What’s the policy? What’s the Federal Government’s desire to He says an analysis of how much destroy good agricultural land?” food is required could then provide Laurie says all future policies pertaining to the Murray-Darling Basin, a benchmark for food production policy. the proposed carbon tax, research “We produce enough food now to and development, the mining-agrifeed between 60-70 million people culture interface, and the growth of so some may say food production is peri-urban areas, should be devised not an issue. People say we can rewith food production in mind. “We have to set our goal first and ensure those policies we bring in, don’t damage the main goal – which is all about A policy vacuum is seeing producing food.” Laurie says nobody knows prime land turned into what impact current policy work on the MDB, the carbon housing estates and tax, R&D, mining and urban mining land. expansion will have on food production. He’s also concerned a piece-meal approach seems to duce food production to concentrate have been taken instead of a holistic on the environment, but if we don’t approach. provide food for the world, someone “We have to get (politicians and else will. policy makers) to think they need to “Don’t we want to be in that posiset the goals to begin with, then turn tion? We are in the ideal position to around and work out how to put supply food throughout Asia.” them together.” Laurie says two examples of poor Policy must address not only policy could significantly damage Australian, but world food requireAustralia’s competitiveness in world ments, in 2050, when the world food production. population is expected to grow to 9 “The carbon tax is one of those billion people.

New rules will prevent prime agricultural land in NSW and Qld from being mined.

Qld develops food policy

pieces of legislation that if we don’t get right, we’ll add another layer of cost to production that other agricultural sectors around the world don’t have. “We are also deeply concerned by the draft recommendations of the Productivity Commission’s review of the Rural Research and Development Corporations (RDC) that point towards a dramatic reduction in funding for agricultural research. He says the NFF is adamant that innovation from research and development plays a vital role in boosting production and sustainability in agriculture. “The Government must avoid a piecemeal approach to reforming rural research and development that looks to pick off funding for various research delivery mechanisms in isolation. “That kind of scatter gun approach will not lead to the best outcomes for Government policy or the best on-the-ground outcomes for farmers. “Instead,” Laurie says, “a coordinated response is needed that looks across research delivery in the rural sector and identifies where streamlining can best occur.”

THE QUEENSLAND Government is taking the first steps down the long road of developing a food policy for the State. The first Dialogue for Action Forum, chaired by Agriculture Minister Tim Mulherin, was held last month and stakeholders from the farm gate, processing and retail sectors attended. Queensland Farmers Federation president Gary Sansom also attended the meeting and says the Government requires a vision statement and policy framework that reflects the significant importance of a viable and expanding agricultural production and food processing sector. “It must provide a reference point against which all other policies being developed – directly or indirectly – must be judged that are likely to impact on food production in Queensland,” Sansom says. “Essentially it is rather like the need to do a regulatory impact statement only it relates to policy including both those policies that are supportive and those that have the potential to ad-

poses to be kept off limits to mining. The Queensland maps trigger further assessment to see if the land is strategic cropping land. Mining projects can be stopped if they are proven to be on strategic cropping land and they permanently alienate the land. This SCL legislation is the There are now land use main efforts to plans for certain areas resolve the impasse, and as of NSW and Qld. part of the public debate over the legislation, tive outcomes for the myr- the Queensland Resources iad of other challenges that Council undertook a study of the potential of the Darconfront farmers.” The Queensland and ling Downs for both mining NSW State Governments and agriculture. The study projected the have both started the process of protecting prime ag- future value of the two ricultural land from min- industries per annum by 2020, based on 2009-10 ing. The new NSW govern- prices, and claimed that ment has started a process the value of mining would under which there will be be a little over $16bn, while land use plans for certain agriculture would be worth affected areas, while the $2.2bn. The QRC also claims that Queensland government has released a series of in 2020 the mining output maps that outline what the of the Darling Downs regovernment calls strategic gion could deliver the state cropping land, which it pro- $1bn in royalties. versely impact.” He says there is a blueprint for coal seam gas and given its significance there should be a blueprint for agriculture. “It would be an excellent outcome if a future food policy acted as an umbrella policy that ensured posi-

needs to produce an additional 70 million tonnes of food each year and Australia has the ability to become a key player in helping address that shortfall. This startling figure was revealed at last month’s National Sustainable Food Summit in Melbourne. More than 300 delegates, including primary producers and Dairy Australia, attended the inaugural summit. Its aim was to share ideas that could inform a vision for Australia’s food system in 2030; to examine the challenges and constraints of the current food system, and explore opportunities for change that would support a transformation to a resilient, adaptable and sustainable food system. Speakers included Julian Cribb, author of The Coming Famine; NFF president Jock Laurie; Professor Richard Hames of the Asian Foresight Institute; and Australian Food and Grocery Council CEO Kate Carnell.

Delegates were asked whether they could assume Australia’s food production system is resilient in the face of compounding future challenges, including population growth, resource limits, land degradation and climate change. They were told the current food system in Australia is characterised by an unsustainable reliance on emission-intensive fossil fuels in both production and distribution. In a world of rising energy prices, diminishing resources and a price on carbon, a system heavily reliant on oil for fuel and fertiliser will also result in higher food prices. Population projections indicate the world needs to produce an additional 70 million tonnes of food per year – more than the current total annual output of Australia. If the demands for more food are not met, more people go hungry. Lack of access to affordable food threatens political stability and promotes unrest, including increased numbers of refugees and war.

Population to reach 10 billion THE WORLD’S population is projected to surge past 9 billion before 2050 and then reach 10.1 billion by the end of the century – if current fertility rates continue at expected levels, according to United Nations figures. Most of the increase will come from so-called “high fertility countries,” mainly in sub-Saharan Africa, but also in some nations in Asia, Oceania and Latin America. The 2010 Revision of World Population Prospects, prepared by the Population Division at the UN’s Department of Economic and Social Affairs (DESA), shows that a small variation in fertility could lead to major long-term differences in the size of the global population. Based on the medium projection, the number of people in the world – currently close to 7 billion – should pass 8 billion in 2023, 9 billion by 2041 and then 10 billion at some point after 2081. But a small increase in fertility could mean a global population of as much as 15.8 billion by 2100, while a small decrease could result in an eventual overall decline in population to 6.2 billion by the end of the century. Hania Zlotnik, director of the Population Division, says the populations of many countries are ageing and will continue to do so as their fertility rates decline. The population of countries classed as low-fertility or intermediate-fertility – including China, Russia and many countries in Europe – will peak well before the end of the century. Life expectancy is expected to rise across all categories of countries, particularly as better treatment for HIV/AIDS cuts early deaths in many sub-Saharan African countries. Global life expectancy is projected to increase from 68 years to 81 by the years 2095 to 2100. Zlotnik says the world population will surpass 7 billion at some point later this year.

Therefore, food insecurity in the world – particularly the AsiaPacific region – threatens Australia’s own security. Australia must value its own food security and recognise its interconnectedness to global systems. Delegates were told Australia is a wealthy country, currently

producing more food than it needs and that it should play a key role in building a sustainable and resilient food system – both locally and globally. Australia should aim to become a world leader in sustainable, low-input agriculture, exporting sustainably produced, high-quality food and

sharing expertise and knowhow with the world – particularly its experience of food production under climate variability and climate change. It also should leverage Australian expertise globally, influencing the international food agenda and linking to global initiatives.

Delegates were told with the development of a coordinated approach to food production and security in cities and regional towns, Australia can set itself up as a world leader in peri-urban and urban food production. This will free-up public land for agriculture and incorporate water

recycling and varied production techniques into buildings and urban developments. The Australian food sector should be supported to incorporate life-cycle analysis across supply chains to identify opportunities for improved resource efficiency, cost efficiency and productivity.

DAIRY NEWS AUSTRALIA // MAY 2011

news

US seeks greater EU access US cell count standards will be aligned with EU standards by 2014.

US DAIRY farmers are backing a proposal to lower the national somatic cell count standard in a bid to increase access to European markets. Under the plan, cell counts would be lowered to 400,000 cells/ml of milk in 2014, which would align US standards with EU SCC standards. The US National Mastitis Council says the EU wants all farm milk used in US exports to member countries to hold to the same SCC standard as EU producers. It says annual losses in net milk income/cow from subclinical mastitis are about $US200/year. “For every clinical case of mastitis in a herd, there are likely 15-40 cases of subclinical mastitis and these cases may be responsible for up to 70% of production losses.” The council believes lowering its SCC standard will increase access to European markets, encourage producers

to remove inferior animals, improve farm management practices and increase the quality of US milk. “This may enable the US to be more competitive in other foreign markets as well,” the council says. But it cautions the move should be made carefully and in phases – so as not to inhibit US price competiveness or further strain dairy producers and supporting agencies. The biennial National Conference on Interstate Milk Shipments is expected to endorse the proposal and send it to the US Food and Drug Administration for sign-off. National Milk Producers Federation (NMPF) president Jerry Kozak says it has not – until now –supported efforts to reduce This may enable the SCC standards. US to be more But he says now is the time to reduce competitive in other those limits, over foreign markets. three years, to more closely align the US with world standards. He points out national SCC averages are already in the range of 227,000, so the impact of this change would be felt mainly by the 11% of producers who sometimes exceed a 400,000 limit. “A three-year phase-in would give farms that may be at risk of non-compliance the opportunity to make management changes so they are not vulnerable,” Kozak says. “And let’s face it; this new threshold is the future for domestic milk supplies and the international market. “We have to demonstrate a commitment to make changes for the better, because this way the terms of change is under our control.”

Tas floods cause milk losses FLOODING IN Tasmania last month has caused milk losses as bridges and roads have been washed out. Properties on the island’s east coast flooded twice in a fortnight after torrential rain, with up to 150mm falling in one night. Many of these properties were also flooded after unprecedented rainfall events in January. The floods caused at least $200,000 of damage to Rushy Lagoon farmer Rodney Moore’s property. Moore also had to tip out 75,000 litres of milk because of the inability of Fonterra tankers to access his property because of damaged infrastructure. Fonterra will reimburse him for the milk, but the floods caused extensive damage to his irrigation system. The State and Federal Governments made disaster assistance available to Tasmanian farmers who were flooded in January, but farms which have been flooded several times since aren’t eligible for the grants. The Tasmanian Farmers and Graziers Association say this latest flooding shows the need for better

support. Rains have also swamped the autumn harvest and are now significantly affecting dairy and other animal sectors. TFGA chief executive Jan Davis says there is no provision, state or federal, to compensate farmers for accumulating losses through a particularly bad season. “So we can have one flood or one cyclone and some farmers may get some assistance, but when it just keeps raining – as it has since January here – we are stymied after the first round of assistance,” Davis says. “This has to be rectified. It is unrealistic to say that assistance has to be linked to one particular climatic event. She says the torrential rains in January, March and now April show just how seriously an already bad situation can deteriorate. The floods also caused 30% of the state’s potato crop to be washed away. Meanwhile, farmers are still waiting for the water to subside to plant winter crops.

Qld farmers battle mastitis, milk loss

Victorian dairy farmers located in flood plains are eligible to sell their properties to the Government.

Govt will buy nth Vic farms on flood plains FARMERS ALONG flood plains north of Kerang, particularly Benjeroop and Murrabit West, will be given the opportunity to sell their properties to the state government as part of a $12 million voluntary buyback scheme. Victorian Minister for Water, Agriculture and Food Security, Peter Walsh, recently announced plans to reinstate the flood plain around parts of the Loddon and Little Murray Rivers in areas north of Kerang. Walsh says a local steering committee made up of stakeholders will look at what areas qualify for active flood plain management money, which will be a substantial element of the overall amount of $21 million pledged for rural flood assistance. The Minister says this money will be used to either buy properties from those who want to voluntarily sell and relocate somewhere else, reconfiguring the flood courses on that particular land, or to pay farmers who are prepared to give up land to become part of a flood path. The Victorian In the latter case, Government has compensation for the change in value committed $12 of their property will million to the be offered – with a voluntary buy-back covenant placed over the land to be a desscheme. ignated flood path in the future. The voluntary program will begin on July 1 and run for 12 months; buybacks will be managed by the Rural Finance Corporation. The number of properties that may be involved has yet to be assessed. “There is a flood study for that area done in the mid ‘80s that has never been implemented, and a number of people talked about the fact that the flood paths need to be opened up,” Walsh says. Once the changes are made to the land, in a way that is agreed to by the community, the Minister says the land in question will most likely be placed back on the market – but with flood covenants over the land where there will be designated flood paths. He says in the future this land would most likely be broad acre or dry land grazing, so when there is a flood ‘there is somewhere for the water to go’. Walsh says it is essential to develop a long-term plan that will protect communities such as Benjeroop and Kerang by

ensuring floodwaters have somewhere to go in future events. “We now know that many of the properties which flooded in January have been built on an active flood plain, which has severely diminished property values,” he says.

IT WILL be next spring before many of the state’s dairy farmers will begin to get back on their feet after this summer’s floods, according to Queensland Dairyfarmers’ Organisation President Brian Tessmann. Weather events have disrupted milk production across most dairying regions, affecting almost every dairy farmer in Queensland. “Farm infrastructure has been badly knocked about, feed systems disrupted and herd health has suffered,” Tessmann says. “There is a milk shortage as farmers struggle to make quota and get their cell counts back down.” Tessmann has experienced the impact first hand at Coolabunia, in the South Burnett district, where he milks 150 cows in partnership with his brother Gary. His family has been dairying in the region since 1897. After more than a decade of severe drought – with even stock

Infrastructure losses have added to everyone’s feed costs.

drinking water in short supply – their property has experienced a wave of flood events. Since a small flood in March 2010, their fertile creek flats have been inundated four more times leading up to the colossal rains in January with water cascading off the hills wiping out crops and infrastructure. “The losses have added to everyone’s feed costs and with milk incomes under pressure the QDO has never been so busy fielding calls for assistance from people who need help to recover.” The Queensland Farmers Federation has been calling dairy farmers to ascertain the extent of the damage. QFF policy officer Brad Pfeffer says farmers are experiencing ongoing mastitis and other herd health issues and are overwhelmed with the

scale of repairs. “They have lost a lot of confidence, which has been compounded by the milk price war,” Pfeffer says. Rain has eased in southern Queensland after a wet summer and early autumn, although it continues in Far North Queensland. Farmers are eligible for Government grants of $5000 and $20,000 – although many have proven reluctant to access the $20,000 grant, which requires the money to be spent first. “Farmers don’t want to spend the money on a contractor then get their claim knocked back. The QDO has put on staff to help farmers navigate through the paperwork to access loans,” Tessmann says. “The Government has also put on flood recovery officers to help farmers.”

Too dear! NZ milk price investigated AN INVESTIGATION has been launched

into fresh milk pricing in New Zealand. However, unlike Australia, the investigation is to determine whether milk prices are too high! Milk in New Zealand currently retails from between NZ$2.10 to $NZ2.40 a litre. Dairy industry leaders see no need for an inquiry into milk prices, saying the rise in domestic retail prices is linked to global markets paying near-record prices. They say the consumer backlash has been fuelled by politicians and urban media. This has led to suggestions the dairy industry should have spoken up publicly to counter consumer concerns about milk prices. Fonterra CEO Andrew Ferrier says he can’t see a need for the inquiry because the system of pricing milk is clear. “Anyone is welcome to look into the system. It’s clear what the system is,” Ferrier says. “When looking at the issue of local milk prices, one has to look at milk prices over time. Milk prices always track the world market and at times when they go up consumers feel the squeeze. “But generally when world prices go up you see margins going down on the processing and selling of liquid milk and that’s what you’re seeing now.” New Zealand’s Commerce Commission, which would conduct any inquiry, is currently examining the case for an inquiry. No timing has been referred too. Only two pricing inquiries in NZ have been conducted previously – one into gas distribution and the other into airports.

The commission says with milk there are potentially three market levels to investigate: supply of raw milk to processors, manufacture and supply of milk products, and retailing of milk products. It will review the operation of each of these levels and consider whether it should hold an inquiry. Professor Jacqueline Rowarth, Massey University, NZ, has criticised the inquiry, saying milk in New Zealand is cheap and represents good value for money. Ferrier says Fonterra has reduced its margins down to buffer the high cycle of the dairy market. “But the reality is it’s a cyclical market. The world is buying dairy products on that market and New Zealand is no different from anyone else in the world. Sometimes dairy products will be more affordable and sometimes less affordable.” Ferrier says it’s not the role of the Government to subsidise an agricultural product, rather, they should work to free up international trade, which will create an environment with less volatility and more stable prices. DairyNZ CEO Tim Mackle says some people in New Zealand are suffering in the present recession and economic environment. He says any price increase makes life hard for consumers, but the issue is straight forward – a reflection of international markets. The Fonterra Shareholders Council says some of the calls for the inquiry have come from competing processors, all or partoverseas-owned.

UK farmers demand supply chain reform UK FARMER organisation,

National Farmers Union is encouraging dairy farmers to lobby their MPs and milk buyers to ensure fairer milk contract terms. They are also calling for an end to unfair commercial practices in the dairy supply chain. NFU dairy board chairman Mansel Raymond says the UK dairy market is not working and farmers are losing out. “The British dairy industry should possess many advantages ranging from growing demand to efficient milk producers and a good climate for producing milk. “Yet the industry lurches from crisis to crisis and has suffered over a decade of under-investment and low profitability.” He says undoubtedly the biggest problem is the one-

sided milk contracts farmers are obliged to sign with milk buyers. “These contracts offer little to no certainty or clarity on the way milk prices are calculated, they lock dairy farmers in for long notice periods of up to eighteen months, provide no ability to supply milk to any other buyer, and have no exit clauses to get out of a contract if the price drops to an unsustainable level.” The European Commission says it recognises that contractual relationships between milk producers and purchasers are fundamental to ensuring fairness in the dairy supply chain. It has come forward with a package of measures, which include improvements to milk contracts. Raymond says this could make a real difference to the

way dairy farmers sell their milk and negotiate with milk buyers. “There are some exciting proposals on the table which would strengthen dairy farmers’ position in the food chain and introduce new minimum standards for milk contracts across the EU. “It is vital that farmers call on their MPs and dairy companies to take action now to eliminate unfair commercial practices and improve milk contracts. He says a ‘do nothing’ approach will see dairy farmers continue to be deprived of their fair share of profits in the food chain. “This will lead to underinvestment, lower milk production and will mean that dairy farmers continue to leave industry at an alarming rate.

DAIRY NEWS AUSTRALIA // MAY 2011

news

Confidence fuels machinery sales AGRICULTURAL EQUIPMENT and machinery sales – often seen as a barometer of confidence levels – have rebounded this year. Following a lull after the Government’s investment allowance grant expired and testing weather conditions, Australia’s largest lender to the agri sector – NAB Agribusiness – has seen a 10% surge in asset finance this year, compared with the first quarter of 2010. NAB Agribusiness general manager

Khan Horne says this reflects a general improvement in farmers’ financial returns and optimism for the 2011 season. “Despite rain damaging last year’s winter crop and ongoing drought in Western Australia, this year agribusinesses have already sought more than $158 million in asset finance for agricultural equipment from NAB Agribusiness alone,” Horne says. He says improved production conditions, high commodity prices and the

strong Australian dollar reducing input costs have put farmers in a strong position to upgrade their machinery and equipment. “We’re expecting even more capital expenditure activity in the lead up to the end of financial year and encourage customers to seek advice from their accountants and bankers well before June 30 to set up terms and repayment schedules that best suit their business.” Horne says avoiding a repeat of last year’s harvest, when many farmers

were left with grain in the field, is also driving sales. “Farmers were left waiting on contractors when they were held-up on previous jobs due to weather conditions and we believe many farmers are looking at buying their own equipment to ensure more control over the timing of significant activities,” Horne says. But he says it is important to realise that buying equipment outright is not the only option. “Farmers should consider leasing

Green Cleaning saves $6000/year INTRODUCING A Green Cleaning system on dairy farms will pay for itself after three years, a recent Future Ready Dairy Farms (FRDS) project demonstration day at Wangoom, Vic, has been told. The systems, which have been introduced on only a few farms in south-west Victoria, will eventually lead to an average net benefit of $6000 a year. Gabriel Hakim, from AgVet Projects, says while the machines cost more to buy the savings will quickly overtake this initial outlay. Long-term savings include a 70% reduction in electricity to heat water, 60% cut in water used for cleaning, and 10-30% less chemicals used for cleaning. The system will also help to cut greenhouse gas emissions by 46.6 tonnes a year. AgVet Projects is conducting an energy audit of Pine Hill Dairy at Wangoom where the FRDS field day was held on April 20. Farm owner Alistair Adams says only preliminary results of the audit are available, but they were look-

ing good. “It is early days but the preliminary data indicates it has definitely been beneficial,” Adams says. He has introduced the system as a long-term cost, energy and labour saving initiative. “So far it is working on all three counts.” Meanwhile, Hakim says about 35% of Pine Hill Dairy’s dairy energy costs came from the milk cooling process. “Milk cooling and water heating are the big users of energy in the dairy, so if you want to make an impact that’s where you’ve got to focus.” He says the Green Cleaning systems are more energy efficient than conventional cleaning systems because they use lower temperatures (about 50 degrees, down from 85), re-use cleaning solutions and utilise renewable energy for heating. “It’s a no-brainer,” Hakim says. “Once you get your head around the numbers it is clearly worthwhile both for the environment and economically.

and hire purchase as well as borrowing, and determine which is the most tax effective strategy for their business and cash flow. “It’s also essential to explore the pros and cons of locking in interest rates prior to delivery, hedging currency movements and matching payment cycles against cashflow. “For many operations this could also mean prioritising debt reduction, topping up superannuation and contributing to Farm Management Deposits.”

Zinc control for mice WEST AUSTRALIAN

Gabriel Hakim of AgVet demonstrating how the new Green Cleaning System operates.

“It will cost about $20,000 more to install, but after about three years you start to see the savings take over. If you look at the total cost of ownership over 10 years you’ll save about $60,000.” Hakim says milk quality and plant hygiene are not affected by the changes. “You can clean quite effectively with lower temperatures. Quality is maintained, it’s not an issue. These are not like the home-made systems that were around 15 to 20 years ago.”

He says further developments are planned. “Ideally we would like to see the system work from as low as 30 degrees once the chemistry catches up with our aims.” The Green Cleaning project is being managed by AgVet Projects on behalf of GippsDairy, and is supported by the Victorian Government’s Sustainability Fund and the Gardiner Foundation. It includes major Australian dairy equipment and chemical suppliers as project partners.

Brian and Caroline Reidy on their farm in Sligo, western Ireland.

chemical company 4Farmers has applied for an emergency registration of zinc phosphide to control expected mice plagues across the country. The company’s application to the Australian Pesticides and Veterinary Medicines Authority has so far received the support of the Victorian Farmers Federation. If approved by the APVMA, access to the zinc phosphide – like other agricultural chemicals – would be available to appropriately accredited farmers with Agricultural Chemical Users Permits. VFF Grains Group President Andrew Weidemann says the Australian east coast grain belt faced a significant mice plague with farms in South Australia, Victoria, New South Wales and Queensland expected to be hit hard over the coming months. “The extent of the expected plague, combined with the fact that there are only two providers of mice control chemicals in Australia, may result in both significant shortages in

chemicals as well as high costs for grain producers,” Weidemann says. “The high costs of existing bait and shortages in supply resulted in ineffective treatment of last year’s plague which has only exacerbated the problem this year.” He says the application to APVMA seeks to register a zinc phosphide product that will allow farmers to treat their own seed and effectively produce their own mice bait. “The point of applying for an Emergency Use Permit is to ensure there is adequate supply and that it is affordable for farmers to access and treat this plague effectively. “ Existing treatments costs about $10/kg applied at a rate of 1kg/ha, meaning a cost of $10/ha per application; whereas if approved the new chemical could result in costs being reduced to about $2/ha. “This is a significant saving to the farmer which should result in more effective treatment and control,” Weidemann adds. “Farmers have great difficulty in accessing this chemical due to its lack of affordability, supply, and suppliers.”

Seeking succession planning answers Down Under GAIL HENSHAW BORN-AND-bred Irish

dairy farmer Brian Reidy is passionate about succession and land transfer. The 2009 Peter Daly Nuffield Scholarship winner visited New Zealand, Australia and the US to study the subject. Reidy (31) grew up dairy farming in Sligo, western Ireland. After a farming apprenticeship at Agricultural College Multy Farnham, County Westmeath, he returned 11 years ago to the family farm. “Peter Daly was a forward thinking farmer,” says Reidy. “The Peter Daly Trust was set up by a group of Irish dairy farmers following his death.” Scholarship winners get $23,000, then have 18 months to travel, research and gain information about their chosen topic, meeting as many farming/agricultural people as possible. He or she must ultimately deliver a paper on their subject. “Generally people choose a topic they are passionate about,” says Reidy. “For me that was succession and land transfer, because land succession and the transference of land is a huge problem in Ireland. I realised there are similar problems around the world. “In Ireland only 7% of farmers are aged less than 35; five years ago it was 13%, and worryingly 50%

as there is always so much relationship history between siblings. “It is paramount all members of a family get around the table, and lay plans for succession on the table. Everyone’s views need to be heard, who gets what needs to be decided and agreed upon, and the transfer must be planned. Without this openness and transparency things are likely to implode.” The Reidys last year visited Trevor and Stacey Munsoon in Canterbury. He had come to New Zealand from Ireland 10 years before. “He started his working life “In Ireland only 7% in New Zealand as a dairy farm of farmers are aged worker and less than 35; five years built a dairying career from ago it was 13%, and scratch, workworryingly 50% of our ing his way up to assistant farmers are over 60.” farm manager then manager. “Today Trevor is 50:50 sharemilkgreat relationships with ing a 670 cross breed herd Nuffield scholars from and continuing to build these countries.” equity.” In Victoria, Australia, They then met Wendy they met Paul and Lisa and Lyndsay Marshall Mumford who farm 450 at their holiday home at Jersey cows, having taken Rotorua. over the farm from his Reidy says the Peter Daly parents. “Here began my learning Nuffield Scholarship has about the huge importance opened doors, introduced him to people and given of openness among farmhim access to information ing families,” Reidy says. “Openness and transpar- he would never otherwise have had. ency is critical in succes“On a personal level I sion planning, especially of our farmers are over 60. “Little is being done to address this problem; it’s like there is a big white elephant in the room, yet everyone is ignoring it.” In December 2009 the scholarship enabled Reidy and his wife Caroline to travel to Australia and New Zealand looking at how dairy farmers manage succession, the transfer of land, and how each country encourages future farmers. “I had always wanted to visit New Zealand and Australia because of their proactive approach to land transfer and I had built

can recommend being a Nuffield Scholar; it’s been brilliant.” When awarded the scholarship he felt empowered, believing he could make a world-changing difference. “I don’t know now if I can do much about changing the situation, but I will be writing a strongly worded paper. There is a huge problem in Ireland, and there are not enough people coming into farming. I will be making recommendations on a personal level. “I learned a lot about how farming businesses are run. The New Zealand approach, in particular, grabbed me. “Couples work together, husband and wife or partners; I haven’t really seen that the way I saw it in New Zealand. “I was taken with the simplicity of how New Zealand and Australian farms operate on grass. [And in both countries] lifestyle and work/life balance is critical to dairying success; it was a key factor on all the farms I visited. “In Ireland land succession and transfer are not really happening and it’s a huge issue. Land transfer and succession can get complicated because of different social and historical links. “My belief is land transfer to farmers should happen when they’re in their 20s or early 30s, when they are at their peak.”

DAIRY NEWS AUSTRALIA // MAY 2011

opinion

animal health

Scepticism mounts on carbon tax

Ruminating

editorial

Govt must look big picture

milking it... Roll up the sleeves AT THE recent media lunch featuring National Farmers Federation president Jock Laurie, Victorian Farmers Federation Deputy President Meg Parkinson proudly stated her organisation had already opposed the proposed carbon tax and wanted to know why the NFF hadn’t done likewise. Laurie won most of the crowd over when he said the NFF actually had to work with the independents, integral to any deal Prime Minister Gillard gets up, to get the best deal for farmers. Essentially he was saying: Do you want to posture or do you want to roll the sleeves up,

work with people and get the best outcome possible? Pragmatic and sensible – two qualities we don’t see a lot of in Canberra.

Playing them at their own game LAURIE ALSO told the Rural

Press Club of Victoria lunch that the NFF, and farmers, would be quickly painted as “climate change deniers” if they came out and flatly opposed the carbon tax. He said he didn’t understand the science behind climate change, but the government has decided a carbon tax must be established and the NFF has to work with them to get the best outcome. Other industry advocates wanting the best outcome for their industries will spin their

message as best they can and farmers must do the same. Laurie described the carbon tax as a tax on food production and this is a message farm groups should ensure is repeated through the media at every chance.

Nats load the gun YOU KNOW the Nationals are back in power when the first budget of a new Coalition Government includes a feral pest bounty. In the Victorian Government’s first budget, since being elected last November, and for the first time since 2003, a fox bounty has been introduced. Bag yourself a fox and earn $10; bag yourself a wild dog and claim $50. Victorian farmers can only

hope these sensible solutions to problems in agriculture continue on bigger items over the Government’s term.

Blame it on the cows ETHIOPIA SACKED its national soccer team’s British coach Iffy Onuora one month after a 4-0 thrashing by Nigeria in an African nations Cup qualifier. An Ethiopian spokesman says Onuora was relieved of his position on “disciplinary grounds”. Apparently Onuora told the media he had to clear a herd of cows off a pitch for the team to train. “I’m not aware of a single training pitch where you find cows,” the official said indignantly.

Horsing around on a cow WHEN REGINA Mayer’s parents dashed her hopes of getting a horse, the resource-

ful 15-year-old didn’t sit sulking in her room. Instead, she turned to a cow called Luna to make her riding dreams come true. Hours of training, treats, cajoling and caressing paid off. The two now regularly take long rides in the southern German countryside, and jump a makeshift hurdle of beer crates and painted logs. It all began two years ago, shortly after Luna was born on the Mayers’ farm at Laufen, minutes from the Austrian border. At first, during walks in the woods, Luna wore a halter. Then Mayer slowly got her cow used to human contact and riding equipment. Now they’re soul mates, spending afternoons together when school is out.

THERE’S NEVER been a more important time for the Federal Government to look at the big picture when preparing policy. This big picture includes: climate change; emissions trading; food production; exports; R&D; the Murray-Darling Basin and the environment. And yet these areas are all being addressed separately. Carbon trading is at the forefront of the current Federal Government’s mind. It wants to implement legislation next year come hell or high water. How will it do it? By adding bits and pieces from those needed to pass it through the lower house and the Senate. Prime Minister Gillard does not have an ideal working environment, reliant on the independents. But would she carry more clout if she showed a vision for the country that would benefit future generations? That would be real leadership, something missing in Canberra from both parties. Hard work now could secure food production and a healthy environment, while underpinning export growth when a growing world population needs us. It requires a holistic approach and the strength to change the current political direction of responding to polling and trying to please everyone. Instead of making a comment to meet the needs of the 24 hour news cycle, the Government must look long-term to see what food production is required in 40 years and the best way to achieve it. If the environment needs more water, then invest in R&D to find the best way to deliver sustainable production for each megalitre. Climate change policy should also be made in terms of how to limit impact on food production. If it requires further R&D, invest now as part of a holistic approach – not down the track in a piece-meal fashion. Decisions like these will also improve Australia’s economy. Australian farmers currently produce enough food to feed 70 million people. That demand is only going to increase as the population is expected to grown from six billion to nine billion people by 2050. There is not enough food to feed the world now, let alone in 40 years. Good policy must be made to ensure Australian farmers can continue to do what they do best, produce the best quality food in the world. Prime agricultural land can no longer be sacrificed for housing estates or mining for short-term profit. Farmers must be recognised for their contribution and provided the support to do what they do best. We all know the world is going to need more food - the Government needs to start planning for that now.

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Gary Sansom THERE IS a mounting chorus of dis-

sent against the Federal Government’s carbon tax. This is reaching levels comparable to those we saw in 2009 and 2010, when the policy contributed to the downfall of an Opposition leader and a Prime Minister and the debate was about an emissions trading scheme. As wide as the criticism of the carbon tax has become, I can only speak for the farm sector when I say that Queensland rural industries have very deep concerns about the current direction of this policy. Farmers are practical people and they can generally accept when difficult reforms are necessary and in the long-term best interests of the nation. But so far, the Government has failed to provide a credible argument that the carbon tax is a necessary reform for the future. Farmers are equally sceptical about suggestions that difficult reform automatically translates into necessary reform. Dealing with the weather every day,

farmers accept that they are exposed to climate variability and climate change. But we also think that if we are going to tax Australia’s carbon-dependent industries – of which we have many – then we want to be able to see what this is going to do to reduce greenhouse gas emissions and global warming. We haven’t been shown that. Arguments about ‘leading the world’ only fuel the suspicion that Canberra has become disconnected from the realities of regional areas and has overinflated Australia’s importance – when compared to the emissions of developing economies such as China and India. Especially when Australia only contribA CSIRO study says a $36/t carbon price would see farmland in the Murray utes less than 3% of global greenhouse Darling Basin planted to trees. gas emissions. The Australian Government is there to look after Australia’s national inter- about farm businesses? Even if direct is still very little detail about how it will ests. If we need to do our part in reduc- farm emissions are excluded from be- work and how practical it will be. Cering global emissions, then we need to ing taxed, the indirect costs stand to be tainly the jury is still out on soil carbon sequestration as a means of offsetting see a global effort – not a unilateral one. huge. If it costs an extra $800 per year to costs. The farm sector is rightly concerned Beyond the farm gate, when you conrun a home, I dread about the flow-on efto think how much sider the energy inputs required in food fects of a carbon tax. There is still very Recent media little detail about how more it would cost to processing, the carbon tax would place run poultry sheds, or huge cost pressure on the entire food reports state that a dairy, or a network value chain. Treasury has mod- the Carbon Farming Kate Carnell, CEO of the Australian of electric irrigation elled that a $30/t Initiative will work. Food and Grocery Council, confirmed pumps on farm. carbon price would While the Carbon Farming Initiative that the carbon tax would make Auscost households $800 per year. Households are being told they will be com- is being sold as the solution to farmers’ tralian products less competitive and pensated through the scheme; but what concerns about increased costs, there cost jobs.

I am also concerned by another preliminary CSIRO study indicating that a $36/t carbon price would see farmland in the Murray Darling Basin planted to trees. If it became economically attractive to plant trees on productive farm land then our ability to grow fresh food close to consumers would be crippled and local consumers will find themselves paying for food to be imported or at the very least transported vast distances to market – ironically burning carbon all the way. Any greenhouse gas reduction incentives need to work with existing land use and encourage low emission farming systems that incorporate trees into economically strong farming businesses. The carbon forests legislation clearly needs to be changed to recognise multiple, small plantings on riparian zones for example – rather than simply provide incentives for large scale forestation often on cropping land. Ultimately, farmers are prepared to do their part when it comes to sensible climate change policy, but we need an outcome that does not impact upon farm viability and profitability. Above all, it must not jeopardise Australia’s ability to produce quality food and fibre at competitive prices. Gary Sansom is president of the Queensland Farmers Federation.

DAIRY NEWS AUSTRALIA // MAY 2011

Agribusiness

agribusiness

Bega float could raise $375 million RICK BAYNE ONE OF Australia’s oldest and largest dairy

when they do come along.” Irvin believes most existing Bega shareholders will stay and use their cashed-up status to reinvest in their businesses. “The initial reaction is they will stay and are very excited by this opportunity. “We believe many shareholders will reinvest the money back into their business. They will be more financially secure and more likely to invest or expand, or look at succession planning.” He says it will give shareholders the opportunity to realise the value of their shares if they wish to take advantage of that. “It will improve their financial strength and we believe improve the local economy.” Bega plans to retain all its production facilities and could use the extra funds to improve infrastructure or look at new markets. “We see this as the right time to make the move,” Irvin says. “There are limited numbers of food companies listed on the exchange, but there is increased interest in global food security and we believe there

companies is tipping increased financial strength for shareholders and more development opportunities after it is publicly listed on the Australian Stock Exchange in July. Shareholders of Bega Cheese Limited, Australia’s fourth largest dairy company, have approved a constitutional change to allow an Initial Public Offering, with predictions that they stand to benefit from an influx of capital. Analysts have tipped the float to be worth around $375 million and say it could stimulate substantial investment in the Bega region. Bega Cheese is working with its advisers and aims to have its prospectus lodged with ASIC before the end of May and to close the offer at the end of June – to enable a listing in early July. In overwhelmingly approving the float with about 90% support, the company’s 150 farmer-shareholders have also acted to protect Bega’s local identity. Sharehold- Shares will be capped so that no ing restrictions will be in place for at least five shareholding can be greater than 5% years, with options for and four dairy farmers will fill the a five year extension – and a majority of direc- eight board positions. tors will be farmer supwill be more opportunities and a period of pliers. Shares will be capped so that no share- growth.” Irvin says the “local flavour” of Bega will holding can be greater than 5% and a minimum of four dairy farmers will fill the eight be retained. “We will be a listed entity and will have board positions. Bega follows Warrnambool Cheese and shareholders not from our region, but we Butter as another major player in the Aus- have safeguards in place to protect the baltralian dairy field to be publicly listed. Ex- ance and focus of our local culture.” Deputy chairman and local farmer Max ecutive chairman Barry Irvin says the decision to list on the ASX was an important Roberts says the co-operative structure has served Bega well, but has “run out of its day in Bega Cheese’s history. Irvin says the listing will create a new useful life”. “Bega has always had a philosophy of level of financial strength for existing shareholders and “position Bega Cheese creating wealth for its shareholders and for opportunities that will inevitably come this is a continuation of that philosophy,” from further industry rationalisation and Roberts says. “It will be a tremendous rethe ever growing international dairy mar- lease of value that has been built up over the past decade. ket place”. “It will be an enormous boost to the Bega has annual revenue in excess of $800 million, key customers in dairy gi- balance sheet for shareholders and we ants Fonterra and Kraft and a substantial believe it will stimulate significant growth export business into Asia and the Middle in the region. It has been very pleasing to East. Irvin says the float will strengthen see such a resounding positive vote for the Bega’s ability to respond quickly to devel- listing.” Roberts says structures are in place to opment opportunities. MILKING, EVERY twice size then thanks Grant ! I will keep perfect local ownership of Bega. “We had gone asDAY far as we couldthe by using “A sale was never an option. As much as bank debt,” he says. “There are no specific opportunities identified at this stage, but you can guarantee such a thing, we believe t we will now be better positioned to move the shareholder cap and board structure

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Focus must switch to profit margins Kerry Ryan

Bega executive chairman Barry Irvin says the company had expanded as far as possible by using bank debt.

• Easier herd testing • Automatic drafting, pre-draft and post-draft • Drafting only options

will ensure local ownership continues.” Bega Cheese’s corporate adviser David Williams, of Kidder Williams, says the company is still considering the quantum of the raising but was close to making a decision. “Monies raised will be used for debt reduction,” he says. Williams says it is too early to speculate about potential share values. “It will be a significant liquidity event for the region and will help Bega to be better prepared financially to respond to any rationalisation of the market.

“It will be a wealth provider for shareholders. Some might take the opportunity to exit the industry, but most will stick with it and use that money to reinvest.” In the past decade, Bega Cheese has grown to be the fourth largest dairy operation in Australia, and the largest cheese “cut and pack” operation in the Southern Hemisphere. Bega employs nearly 1400 people at its NSW operations and at plants in Coburg, Tatura and Strathmerton in Victoria. In the year ending 30 June 2010, EBITDA was about $55m and revenue was $829m.

Asian demand fuels record NZ exports Fonterra New Zealand has recorded its highest ever month for exports with 229,000 tonnes of its dairy products leaving New Zealand shores in March. Gary Romano, Managing Director of Fonterra Trade & Operations, says the record shipments are the result of continued growth in global demand for high quality dairy products from New Zealand. “Our supply chain team were effectively closing the door on an export container every 2.6 minutes. That’s equivalent to 560 containers a day.” “As a result of this effort we expect the

record month will inject around $1.2 billion into the New Zealand economy,” he says. While it was a tough start to the dairying season with drought, floods and snow storms, recent warm wet weather has boosted dairy production in New Zealand. “But the real driver for the export record is the ongoing strong demand from China, South East Asia and the Middle East,” Romano says. “In these regions, we are seeing the emergence of the middleclass with more discretionary income and a desire for more nutritious foods. Dairy fits the bill.”

casts of strong product prices in the primary sector contrasts starkly with the human and economic consequences of local and international events. These happenings are certain to fuel volatility in our farming and wider economy. Farming businesses need to be wary of jubilation – or, worse, complacency – as milk, meat and fibre prices rise to record levels. Market uncertainty driven by economic fallout from earthquakes, food safety concerns and political unrest in oil producing countries has potential to flow through to cost structures. Assessing business prospects solely on income risks inadequate response to cost pressures and possible challenges from interest rates. For these reasons, I challenge those in agribusiness to focus less on product prices and more on profit margins. I have experienced a number of business cycles where premature declarations of victory-based buoyant product prices have resulted in missed profit opportunities. International milk prices look particularly strong at present. As in the past these will almost certainly be accompanied by upward pressure on key input prices. Unplanned or unjustified exposure to feed, fertiliser and energy costs can quickly erode trading outcomes. Priority must be for farming operations to focus on their competitive advantage and apply maximum effort to areas within their control. The first focus area must be to optimise the profit performance of pasture based systems. Successful farms work to capitalise on their natural advantage. They maximise the benefits of reliable rainfall or irrigation water, a temperate climate and ability to grow significant feed. These can be manipulated to generate tighter control of operating costs and protect profit outlook. Taking the easy option of simply buying feed to fill deficits and generate production (often for the sake of it) will not allow farmers to capture opportunity. Challenging climatic

Celebrating product prices is only one side of the equation.

conditions and improving product prices have resulted in much higher use of purchased feed in many operations this season. This is severely impacting margins. My preliminary analysis of clients’ 2011 financial results suggests costs are running 10-20% higher than budgeted. Other high risk cost areas are where payments are made for services based on percentage of revenue rather than being linked to profit margin. In particular, sharemilking contracts need to be managed proactively. Unless these are monitored to ensure a sustainable result there is a risk they will lose contact with the economic realities the business faces. I have recently seen farm owners who bought feed to protect production hand over much of the benefit to sharemilkers who may not have shared in this cost. This is particularly the case where share farming agreements are predominantly for labour and don’t share the wider production costs. It is also important to closely monitor the trends of interest rates. The economic shock of international and local adverse events is still being absorbed by markets. Given this comes right behind the global financial crisis, it is likely reduced ability for banks to access funds and impact of international credit ratings will come into sharper focus. Current lower floating interest rates may be helping many cash flows at present. However, locking down a proportion of debt to eliminate exposure to interest spikes may be timely, especially for those still working hard to consolidate their balance sheets. Celebrating product prices is only one side of the equation. It is essential there is an equivalent focus on assessing the benefits of farm inputs so the cost price margin remains balanced. Kerry Ryan is a New Zealand based agribusiness consultant.

Raging Aussie dollar could spoil the party the Australian dollar’s strength AS THE current season draws and much more to do with the to a close, many farmers in general weakness of the US southern Australia will be turneconomy and currency. The ing their thoughts toward the latest hike in the Australian 2011/12 season and the opening exchange rate is more or less in price announcement. line with most other major curThe international market has rencies - including the Euro. The been relatively stable for much global impact currency of our major market in of the past year and remains joanne bills Japan has also strengthened. tightly balanced. While expecThis is important as currency tations of increased supply may see commodity prices soften slightly in coming movements are part of the story behind the hismonths, strong demand is likely to absorb pro- torically high US dollar dairy commodity prices we are currently seeing. With the currencies of jected increases in export availability. all supplier countries rising, exporters will be So the outlook is pretty positive – right? The other key driver of farmgate price in seeking stronger US prices to maintain returns southern Australia is the exchange rate, and it in their local currency. At the same time, imseems capable of spoiling the party. The dollar porters have a greater capacity to pay for imhit US$1.10 early this month – a record high for ported goods at a given US dollar price. While the high Australian dollar does impact our currency. This latest jump has been widely reported the final farmgate price negatively, the current in the media, with overseas travellers rejoicing situation is preferable to one in which our curand exporters lamenting. However, it’s impor- rency is much stronger than our competitors or tant to understand what is prompting this un- customers. With a reasonably stable international market, the weak US dollar will serve to precedented rise in the Aussie dollar. In fact, this latest peak has little to do with hold up international dairy commodity prices.

Looking forward, the current uncertainty surrounding the US economy, and currency markets in particular, may require a more cautious approach to early season prices. Company hedging strategies will be important in minimizing the impact of further rises. If the interest rate rises foreshadowed for later in the year come about, this could increase the attractiveness of the Australian dollar relative to other currencies – and put us out of step with other dairy exporters and importing countries. This would have an effect on Australia’s competitiveness and be of greater concern. While we will continue to monitor currency movements, the current situation highlights the need to understand what is driving these movements and how others in the international market are being affected. While a lower Aussie dollar would give us all more comfort heading into next season, a stable international market outlook should still provide good returns – as long as our currency doesn’t get too far ahead of the pack. Joanne Bills is Dairy Australia’s Manager Strategy and Knowledge.

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DAIRY NEWS AUSTRALIA // MAY 2011

management

Employee investment pays off Plan ahead to restrict winter damage IT CAN only be described

Rick bayne ADAM AND Natalie Roberts like to look at dairy farming from both sides of the employment equation. As share farmers they see themselves as employees, but when it comes to the day-to-day running of the farm they are also employers. And they’re good employers, too. They were recently named Employers of the Year at the Great South West Dairy Awards, with judges praising their positive work culture and excellent communication with staff. The Roberts employ two fulltime staff members and two part-timers on their farm near Camperdown in south-west Victoria. They put communication and trust high on their agenda in fostering good working relationships. “Trust is a big part of it, we leave the guys with a big responsibility when Natalie and I leave the farm,” Adam says. “If we go away we have a lot of trust in them. They certainly have the expertise and experience to earn that trust.” Both Adam and Natalie hail from dairy farming backgrounds and now share-farm their 320ha property in a share arrangement with Natalie’s father – Denis Place – and grandmother, Norah. With three children aged between nine weeks and 3 ½ years, there are now four generations of the Place family linked to the land. Adam was raised on a dairy farm at Brucknell, further south towards the Great Ocean Road. The Roberts started their share arrangement in 2004 with a 34% share of the farm business and progressed to a 50-50 split about three years ago. From July this year they will enter a leasing agreement.

“That will give us 100% control over all the operations and expenditure,” Natalie says. “The next step will hopefully be to buy the place, but you have to build up equity over time before you can do that,” Adam adds. Herd manager Colin Maslin has worked with the Roberts family since the share farming agreement started. Justin Mason joined more recently and undertakes maintenance, repair and tractor duties. Milking 550 cows keeps them all busy, but Adam says he maintains a “calm and approachable approach” to being an employer. “We take a low-key approach, don’t get too carried away with anything,” he says. “We try to look at things from the employee’s point of view. Because we’re share farmers we’re effectively employees as well, so we can see both points of view. It gives us a good perspective.” Adam says you need to understand the needs of employees as individuals and try to accommodate them as best you can. While they are praised as employers, the Roberts are equally quick to point out the role played by their employees in maintaining a successful farm. “We’re lucky that we’ve got confidence in our guys so we can step back and let them do their thing,” Adam says. That is part of an important philosophy adopted by Adam and Natalie in giving employees responsibility for their area of work. “If you don’t have some feeling of ownership for your work how can you be motivated?” Adam asks. While there is daily communication on the farm, there are also more formal annual staff appraisals and monthly meetings. “The appraisals are handy to sit back and review things. At our monthly meetings we review

as an amazing season. Regular rainfall has seen the best pasture growth for many areas in recent memory. As we head into winter the obvious downside of all this rain and its impact on soil moisture levels will start to become more of a management challenge. What can we do to effectively manage these conditions and minimize the negative impact it can have on pastures, stock performance and on our staff team? As with any management issue the time spent planning strategies ahead of time will help significantly when winter and wet conditions arrive. So what are the key areas we can look to manage when conditions get wet?

Pastures

Natalie and Adam Roberts, with children Grace and Harvey, were named Employers of the Year at the Great South West Dairy Awards.

Who:

Adam and Natalie Roberts Where:

Camperdown What:

Employers of the Year

what has happened over the last month and also look forward to what is coming up. “They’re really a road map of what is happening. People don’t want to have surprises so it’s good to talk about things in advance.” Good ideas come from good communication. “We’ve just installed a new yard blaster system,” Adam says.

“It came up at a meeting that it took an hour to clean the yard and so we got the blaster. Now it takes 15 minutes.” The Roberts adopted the review and meeting system after Adam completed a People in Dairy course, and they encourage others to follow in their footsteps. “It’s a good way to learn how bigger players in dairying

and other industries are doing things,” he says. The course also espoused the importance of occupational health and safety which has flowed into the farm’s outlook. “Good OH&S is essential not only to protect yourself but most importantly to have a safe working environment for everyone,” Adam says. Natalie had some work time off the farm as a professional hairdresser, but is now busy on the property maintaining the books and raising their three young children. Adam tried his hand at artificial insemination for 12 months and undertook a two-year farm exchange in Ireland “which was where I got my passion for grow-

ing grass and making milk”. They are now committed to a future in the dairy industry. “It has its ups and downs, but if you level it out over five years you generally make a good living,” Adam says. “You’ve got to ride out the tough times and make the most of the good times. You need a fair vision of what is ahead but we see huge growth potential.” The award judges praised Adam and Natalie’s HR and OH&S compliance, and also highlighted their employee development, regular performance reviews, training, customised operational procedures, and offering a flexible work environment with a strong work-life balance.

The impact on pastures is clear, in wet conditions it becomes easy to ‘make a mess’ and damage pastures, soil structure, gate ways and access to trough water. To minimize potential damage to pastures it is useful to identify feeding areas, where supplement can be fed without causing significant damage to the paddock, this could include a suitable hilly paddock or using feeding areas along an old lane, a wooded area etc. Plan suitable standoff areas if you need to have cows removed from pasture to save damage. Access to water and room to lie down is important. One of the challenges in

farming focus gavin mcclay winter and early spring is that pastures are grazed on a longer rotation length, meaning having stock on a smaller allocation of grazing area each day and lifting the grazing intensity. When grazing conditions are good, consider giving cows more supplements and less pasture as they will utilize them much better. So when conditions do deteriorate you can afford to allocate a little more pasture to cows and reduce their grazing intensity a little rather than having to feed even higher amounts of supplements.

Stock The wet winter’s impact on cows can be very challenging, especially for cows that are milked through the winter and spend a lot of time walking on lanes and on concrete yard areas. Pay attention to maintenance of laneways, especially the first 100-200 metres into and out of the dairy. Ideally maintenance and preparation work should be completed before really wet conditions arrive – as working on laneways once damage has occurred can become very difficult. Ensure water can drain off the lanes and top up

Online water management tool A NEW online calculator will help dryland farmers calculate their annual water balance by determining the amount of water they use and how much can be stored on their property. Farmers need a bucket and stopwatch to measure flow rates. By entering the details into an online table, the website will then calculate the requirements for stock drinking water, dairy shed wash down, household and garden needs – as well as water needed for spraying, cleaning equipment, cleaning feed pads and fire fighting. It also calculates dam volumes, water available from catchment run-off and the amount of water that can be harvested from rooftops. The web-based tool was developed by the Department of Primary Industries Victoria (DPIV) and supported by Dairy Australia. DPIV dairy extension officer Benita Kelsall says the amount of water that can be harvested from rooftops can be considerable and tends to surprise people. “The amount of water animals’ drink is another surprise,” she says. “People don’t realise how much stock drink and it’s often a big amount.” Access the farm water calculator at: www.new.dpi.vic. gov.au/agriculture/farming-management/soil-water/solutions/calculator

some of the exit surface to help cows flow. Walk down your lanes in thin soled shoes and feel for problem stones which will cause issues for your cows. If you can feel them through your feet, we know cows will feel the impact far more significantly. The use of products like bark, sand, rubber belts, or rolled out hay bales can be useful to help keep cows moving and provide a ‘safe’ area for them to walk through if conditions aren’t suitable to put down

your normal laneway material. Talk with your vet about possible strategies to ensure good hoof health and the right treatment when cows do get affected. Prevention strategies could include foot bath products through to feed additives to harden the hoof. Have a planned management strategy for any cows that do develop sore feet. Ensure they are removed from the main herd immediately and grazed in a nearby area.

Work through these issues with staff, so any one of your team will indentify cows early and minimize the long term impacts. Consider keeping some pasture ‘up your sleeve’ near the dairy so you can allocate good levels of pasture to problem cows. When allocating supplements to cows, take an accurate assessment of supplement and pasture wastage. It is not uncommon to see 20-50% supplement wastage in tough weather

conditions. This impacts the cows not only in their energy intakes, but also that they may be left ‘hungry’ and more likely to roam around the paddock and do more damage. For those joining cows through the winter, consider the impact of wet conditions on your bulls and ensure you have enough bull power to manage when bulls have sore feet as well.

Staff

Keep talking to staff about these issues. Having their input into

prevention strategies will mean a higher level of engagement when the issues do arise. Keep a close eye on staff rosters and time off to keep you and your team fresh. When conditions are cold and wet, be flexible with what non-essential tasks need to be completed. Gavin McClay is a dairy business consultant based in Victoria. He can be contacted on 0425 825 288, atgavin@gavinmcclay.com. au or via his website at www.gavinmcclay.com.au

DAIRY NEWS AUSTRALIA // MAY 2011

management

Sand and salt air belie productive farmland Colin Menzies DEAN THORPE admits he farms on “vir-

tual beach sand” right on the coast at Meningie, SA – but it’s sand that sees amazing growth rates when cattle graze on pastures there, especially lucerne and veldt. Thorpe says it’s probably the best country in the state for growing out cattle. And plenty of others agree, including the Pacitti family, of Misty Brae Holsteins, who send all their heifers from six months of age to the property before returning to the herd. They swear those heifers couldn’t get a better start. However, it’s not high carrying capacity land. “On irrigation country they talk about 10 cows to the acre, we run 10 acres to the cow,” Thorpe jokes. To complicate matters, the country is “non-wetting sand” or sandy soil that re-

pels water, leading to inconsistent moisture in the topsoil and severely limiting the germination of crops and pastures. It also requires the addition of some trace elements. “In summer time you can make a hole with your hand, fill it up with water and it will sit there for a long while – then it just disappears and it’s bone dry underneath,” Thorpe says. “All the upper south-east has got nonwetting sand on it. We’ve just learned to work it when it’s wet and then seed it – as it’s the only way we can get it to germinate.” Thorpe says they use a “Mallee mix” or “scrub mix” fertiliser, which contains not just nitrogen and phosphorous, but also zinc and other trace elements. This is also used when they renovate lucerne paddocks. It sounds like tough country, but Dean, his wife Bev and their son Jarrad, have a successful dairying venture (Balara Hol-

Soil repair fuels breeding program rick bayne MOST FARMERS would be

Who:

The Thorpe family Where:

Meningie What:

“Beach sand” farming

Dean Thorpe says the country on the coast at Meningie, SA, is probably the best in the state for growing out cattle.

steins) on 690ha of dryland farm. They also have another two run-off blocks of almost 800 hectares nearby that are also used to raise beef. This area near the Coorong benefited from the nearby opening up of the 90-Mile Desert by the AMP Society in the 1950s, when CSIRO research showed just what could be done with trace elements and a reliable water supply. Not that the Thorpes have anything like reliable water provision. Two years ago they received half the annual average rainfall of 450mm. Last year it was double. Previously, the Thorpes accessed a private water scheme from nearby Lake Albert for stock and dairy use, but the lake dried out so radically and became so saline during the drought that it couldn’t be used. “At places it [Lake Albert] went out one and a half kilometres. In the town of Meningie it was probably out six or seven hundred metres from the shore,” Thorpe says. Now, with more water entering the Murray, Lake Alexandrina is full and the Murray mouth and Coorong are looking pretty healthy again. He says the SA Government “had given up on Lake Albert” three years ago when they built a “bund” separating it from Lake Alexandrina. The idea was to allow more water to get to the Murray mouth by sacrificing Lake Albert. No-one anticipated there would be so much water flowing down the Murray, so 70m of the bund at Narrung had to be removed to allow the flood water to flow into Lake Albert. It was nearly back to normal within a week Thorpe says that even now with Lake Albert almost full, there are still pockets of salinity. The fresh and salt water haven’t yet mixed properly. “It will still go from 4000 to 14,000 [ppm] in a day, but it’s gradually mixing in and we’ll be back to using it shortly.” Of the properties in the Meningie area with irrigation entitlements, none has had water in more than three years. Even now, with water in abundance, those who still have their entitlements are only on a 67% allocation. Those who sold off their water entitlements saw their land values plummet. Meningie was once a large dairying area. At one stage it produced a third of the state’s milk. Now there are only a handful of dairies and you suspect it’s only the clever ones with big hearts that remain.

For the Thorpes, it wasn’t their land value that dropped, but their net worth when two years ago they were effectively receiving 20 cents a litre for their milk at the end of a drought. With a herd that peaks at 180 milkers, it wasn’t worth feeding them to the maximum and production dropped. Worse, before the price slump, they had committed to a new 16-a-side, double-up dairy with auto ID and drafting. When work began they were receiving around 50¢ a litre for their milk. Half-way through construction the milk price had dropped to 20¢. Now with the drought over and better farmgate prices, the Thorpes are feeding more to the herd and Balara Holsteins is back to the 9000-litre mark – supplying Warrnambool Cheese and Butter. Their silage is all home grown, though hay and grain are bought in. The grain is mostly fed in the bail with a wheat/barley/canola mineral pellet – while a mixed ration of cereal hay, silage, potatoes and brewers’ grain is fed on the feed pad. “It’s whatever we can get,” Thorpe says. He says this season has been exceptional with the herd being unable to keep up with the “foot-high” lucerne growth. “It’s actually getting away from us because it’s starting to flower.” Around 80% of the Balara herd is classified. “Eventually, they are all classified. We don’t do them all as heifers at this stage because we couldn’t afford to do it all, it’s been too tight.” Thorpe says he has to ensure the cows have good feet and legs, because they walk more than three km through sand every day. Otherwise, it’s just a sound herd member he’s after. He uses the “upper end” of available sires; Shottle, Beacon and Denzel are some. This article first appeared in the Australian Holstein Journal. Reproduced with permission.

happy with having a herd ranked in the top 20 in Australia, but not Bryan and Joanne Dickson. Their herd is currently ranked 18th on ASI (APR), but the Terang farmers have their sights firmly set on making the top 10. And they are making constant adjustments to their farming practices to ensure they continue to climb up the ranks, with top quality soil a key ingredient in their success. They have made big inroads on the top 10 in the past two years, rising from being in the 80s to number 37 and then breaking into the top 20. “We would love to make the top 10, that’s our target,” Bryan Dickson says – adding he doesn’t expect the final ascent to be easy. The Australian Survival Index (Australian Profit Ranking) is the main breeding index for Australian dairy sires. The APR reflects traits that influence net farm profitability, including milk, fat and protein yields and nonproduction traits such as longevity, fertility, mastitis resistance, live weight, temperament, and milking speed. While the Dicksons have a strong emphasis on quality, they are also building up quantity. In 2011-12 they aim to run 1050 cows, with 725 from their home farm and 325 from a recently purchased property at Glenfyne. The Dickson family has farmed the Ayrford Road property since 1989, when Graeme and Shirley Dickson moved from near Bacchus Marsh with their three sons – Bryan, Neil and Chris. At the time, it was a 202ha farm, running 240 cows in a 32 unit internal rotary dairy. The herd steadily increased to 420 cows during the late 90s and leases and other farms were purchased, with Bryan managing the home farm in a family partnership. In 2002, a new 60-unit outside rotary dairy was built and the following year Bryan and Joanne purchased the neighbouring 121ha farm and began leasing the home farm from Graeme and Shirley. Bryan’s ambition to crack the top 10 in herd ranking kicked in at the same time,

and he adopted a “breeding, feeding and weeding” philosophy to help him get there. “Breeding with good bulls is at the top of my list,” he says. “We keep using top bulls and then we look at maintaining good soils for good feeding and getting rid of the poor performing cows.” The farm’s successful soil maintenance program was highlighted at a ‘Reducing Soil Acidity through Liming and Nutrient Best Practice’ field day on April 5, sponsored by Caring for Our Country and project managed by Glenelg Hopkins CMA and WestVic Dairy. A one-metre deep soil pit was excavated to show the different composition of the soil at different depth. The main farm had soil issues dating back to the 1990s, with soil tests showing Olsen P levels as low as 4. In 2000 the whole farm was soil tested with Olsen P levels as high as 68. The intensive soil testing program continues – with 10 to 12 sample paddocks tested each year. “We’re probably still using about the same amount of fertiliser as we did 10 years ago, but we’re more strategic in where we use it and only put it where it’s needed,” Dickson says. Urea is used strategically across the whole farm with no PKS applied on the higher testing paddocks. A rotation system has been adopted for spreading lime at 2.5 tonnes per hectare over about a third on the farm each year. With their fertiliser use following an environmentally-friendly course, the Dicksons are also doing their bit to improve their surroundings with regular and continuing planting of native shelterbelts and creek fencing. They also take care to protect the nutrients in their soil to promote a healthy growing environment. “We have a 60-day rotation and try not to overgraze over summer,” Dickson says. “In autumn and early winter we have a 45-day rotation. We try to graze as close as possible to the 3 leaf, because 50% of the ryegrass growth is between two and three leaf stage. “We use effluent extensively over summer which helps us cut down on fertiliser.” Dickson says he is closely watching the outcome of

Who:

Bryan and Joanne Dickson Where:

Terang What:

Soil Acidity

the use of compost on other farms before deciding if he would venture into that area. Pastures have been renovated and the farm had developed a feed pad, which has helped protect

the paddocks. “It cost a bit to set up but it pays off. It helps us to avoid pugging.” The farm hasn’t been doing summer crops for years. “We don’t do crops – I

don’t think they are cost effective for us. I think it’s better to leave them alone and let the carbon and organic matter build up in the soil. We’ve been getting good results with our system.” Those results include total milk production of 6.25 million litres on the home farm in the last financial year – at an average of 9330 litres per cow, butterfat: 234,369 kg with an average 350kg per cow, and protein 210,196 kg for an average 314kg per cow.

Joanne and Bryan Dickson with Bryan’s father, Graeme.

DAIRY NEWS AUSTRALIA // MAY 2011

Animal health

management

Catch crops can cover feed shortages Cow comfort critical to expansion CLIMATE VARIBILITY is

creating an environment where dairy farmers can grow opportunistic crops – or “catch crops” – to meet feed shortages, according to PGG Wrightson Seeds Development Manager Rob Salmon “All producers want a reliability of fodder supply,” Salmon says. “However, effectively achieving this comes down to a range of interplaying factors including seasonality, perenniality, pasture composi-

tion, protein/carbohydrate balance, pest management, soil moisture, water availability and utilisation, soil temperatures and so much more.” He says options for an early break can be vastly different to those used in a late break. “Therefore, making the most of a particular set of circumstances means an opportunistic brassica; cereal or annual ryegrass catch crop can fill a gap at a time of the year

when pressure on feed production can be at its highest.” Salmon demonstrated a range of winter fodders, including cereals and brassicas, from the PGG Wrightson Seeds research program at a recent field day. “Southern Green ryecorn has been one of the stars of the show,” he says. “Our trials have demonstrated that Southern Green planted as a catch crop provides quick feed in

Winteroo oats on the left and Southern Green forage ryecorn on the right, 45 days after planting. Southern Green’s ability to provide quick feed is obvious, as it’s ready for a first graze, but the Winteroo oats would be damaged if grazed at this early stage.

autumn, but can also provide large quantities of feed in mid winter. “We’ve also found that Southern Green excels

from a late sowing. If planted later it doesn’t want to bolt.” Trials also show that when it is mixed with rye-

grass, a synergy effect occurs in the first cut, and the benefits of ryegrass flow into the spring/summer. Salmon says annual ryegrass can play an important role in a winter feed plan. “Most annual ryegrasses are very competitive at producing winter feed,” he explains. “However, the differences become evident when they move into reproductive growth in spring.” He says while some varieties focus on reproduction and burn out after they have headed, others have an ability to grow new tillers after heading and move back into vegetative growth. “This adds value for the producer by moving back into leafy growth after a spring hay/silage and spreads the fixed costs of planting over a longer season and more grazing days.” Salmon says forage oats also have an important place in winter feed sys-

tems, as producers have flexibility and options. He says oats are a proven and well accepted fodder crop because they are such consistent performers. “For instance, Coo-ee forage oats are a finestemmed, late maturing type with a relatively low growing point. It’s a rapid grower with a good early yield that is suited to dual purpose grazing and hay/ silage.” Salmon says the research findings demonstrate that nothing beats forage brassicas as a catch crop if there is an early break. “They smashed everything. The findings show that following an early break, Appin leafy turnip produced more dry matter than everything else in the trial. “Forage brassica have very fast growth rates in warm soils. However, growth rates are slower when soil temperatures drop later in the autumn.”

Babylon on top ABS AUSTRALIA’S bull, Indijks Babylon, continues his run in the top Holstein spot in the most recent Australian Breeding Values Profit – Australian proven proof run. The UK-bred bull was the first Oman son to be proven in Australia. Indijks Babylon has an Australian Profit Ranking (APR) of 289 with 76% reliability. ABS Australia Dairy Product Manager and Sire Analyst, Russell Manton, says Babylon’s ratings for cell count, longevity and fertility make him stand out, and he has the added bonus of being suitable for heifer matings as well. “This Oman son offers the all-round package, producing easy-care cows that get back in calf. He has the added bonus of being an outcross sire that is also calving ease,” Manton says. Second and third place in this Holstein run have been claimed by Genetics Australia with Kaarmona Caleb and Manna Farm Del Santo. AgriGene bull, Sandblast knocked Valerian from the top position in the Jersey proof run – a position he’s held since April 2007. Bred in Australia by Noel Furze, Sandblast has an APR of 299 with 73% reliability. Sandblast is a Flowerpower son with added strength and capacity from nine generations of EX and VHC cows. Sandblast is 49 points ahead of the second-placed bull on the Jersey APR rankings, ABS’s Elton, and is also the highest Jersey bull in the breed for ASI and protein kilograms – and equal number-one for temperament and likeability. In the red breeds, Genetics Australia’s bull Arbbobdown (or Loden Bob) retained his number one position with an APR of 226 and 80% reliability. For all the latest ABVs, go to the Good Bulls Guide at: www.adhis.com.au

Rick Bayne SINCE SOUTHERN Riverina dairy farmers Rob and Gai

Singleton moved to the area in 1994 they have developed a strong appreciation for the value of cow comfort in their dairying operation. The Singletons moved 1260km south from Coffs Harbour to the Blighty area in southern New South Wales in search of a drier climate. They left behind mud-soaked paddocks that had to cope with 1750mm of rain every year, to start farming the relatively dry lands of Blighty where the annual average rainfall 350mm is supplemented by irrigation. “With the heavy rain around Coffs Harbour there was an inability to grow decent feed,” Rob Singleton says. “Here we have a drier climate and we can control things with irrigation.” However, it was the welfare of their animals and the opportunity for growth that put the sealer on the move. Study tours to USA in 2007 and 2009 confirmed their belief that cow comfort needed to be their number one priority. “I hate seeing cows slop around in mud. Cow comfort is our number one priority. You have to look after the herd and it will look after you.” Singleton believes that not only does catering to the needs and comforts of cows pay off in improved production, it also helps the industry in general. “It sets the right image for the industry if we are doing the right thing by our animals.” The Singletons arrived at their Blighty property, Kenara, with 150 dairy cows, but have since expanded their farm size and increased their herd to more than 750, with plans area per cow. “You don’t need them to be over-crowded; you try to give for further growth to top the 1000 mark. “We will go as far as our management system will al- them what they need,” Singleton says. “We’ve built the pens to hold 300-350 low,” Singleton says. cows but will look to add pens if we need to The current 669ha farm uses about grow. The feed pad has been an important 200ha milking area, a further 150ha irripart of our system.” gated and the remainder is dry land producThe Singletons manage the feed pad on tion. a daily basis over summer. The cows are The herd is about 60% Holsteins and fed total mixed rations from November 40% Jerseys. through to April. The remainder of the year “Our aim is to produce more milk and to they are fed ryegrass pastures and small achieve that we need to make sure our inamounts of forage supplements. The ration frastructure is right.” Who: consists of wheat, canola, lupin, lucerne Part of that ambition has been fulfilled Rob and Gai Singleton and ryegrass silage. by expanding the farm base to allow more “Getting a handle on feeding was one of home-grown feed and thus less reliance on Where: Blighty our main priorities when we came here,” outside supplements. Singleton says. The installation of a feed pad in 1998 has What: “We aim at a balanced ration – feed qualbeen another key to the farm’s feeding sucExpansion through feed pad ity is critical.” cess. Getting the irrigation right was another “The feed pad was fairly basic at the start high priority. with shade provided by trees and feed in “We got the irrigation laid out as quickly as possible troughs.” Since then it has expanded substantially, adding two when we came in (the farm had been previously used for more feeding pens with four square metres of corrugated grazing and sheep). All of the water is re-used and re-ciriron shade per cow and about 50 square metres of loafing culated on the farm.

Rob and Gai Singleton moved from Coffs Harbour to Blighty in part to improve their herd health.

“We have about 320ha of laser level irrigation but only use what is needed. We want to make sure we’re not interfering with the environment.” The farm has an 1829-megalitre water entitlement and in 2010 produced about 6.5 million litres and 500,000kg of milk solids and is aiming to further expand production. A veteran of more than 30 years in the dairy industry, Rob Singleton estimates per cow milk production has virtually doubled during those three decades, which he attributes mostly to improved cow management and improved feeding. “There have been a lot of positive changes over time. I like the industry; it has been good for us.”

DAIRY NEWS AUSTRALIA // MAY 2011

Animal health

‘Biological farming builds soil carbon’ PETER FLOYD REMEMBER GLADYS Reid? She

Gladys Reid

was the woman who in the 1970s insisted dosing stock with zinc would protect them against facial eczema. She was a registered nurse and so had medical knowledge and she had done a lot of experimenting with livestock. Nevertheless, she and her views were rubbished by the science establishment of the day. “Where’s the evidence?” they asked, knowing there was

no scientific evidence because nobody had done the work. I was a part of that. I remember chairing a meeting at Te Aroha, New Zealand, at which Gladys stood, way up the back, and told us about her experiences. I tried to get her to sit down and keep quiet but she refused. Talking with her later that afternoon I realised she had put a lot of effort into her work and there could be something in it. We all know science eventually proved her correct. (Reid died in August 2006). Today we have a parallel in the

Managing moulds and mycotoxins Morgan Hobin WET CONDITIONS over the past few months

It took a ‘non-scientist’ to jog the researchers into looking at zinc as a facial eczema preventative.

Measurement of soil carbon annually and the demonstration of cause and effect are starting to give the biological approach more credibility. debate about soil carbon and biological farming. The pastoral science community appears convinced the only way to build up soil organic matter is to pour on the phosphate and nitrogen, and that many pasture soils are already ‘saturated’ with carbon and will not absorb any more. The idea biological farming techniques – using dolomite, seaweed extracts, compost and bioinoculants – can increase soil carbon and improve plant and animal health is said to be ridiculous. Where is the evidence? they ask. I’m pleased to say the evidence is accumulating, as I discovered in February at the international Soil Carbon Sequestration Stakeholder Workshop in Sydney. There the latest research in soil carbon was presented to farming and agribusiness representatives. It was preceded by a three-day summit of soil scientists from North America, Europe and Australia and one from New Zealand. Scientific opinion is starting to acknowledge the value of a more ‘biological’ approach to soil management and security. The change in mindset is caused by greater understanding of the role of microbes in providing a bridge between plants and soil particles and the ability and willingness to measure soil carbon deeper within the soil profile. Measuring soil carbon is providing evidence

some farm management practices can increase topsoil depth and subsoil non-labile carbon even in carbon-rich soils. On pastoral farms these practices include: • Reliance on permanent, multi-species pastures. • Avoidance of pugging and cultivation. • Increased grazing residuals. • Reduced production pressure with focus on sustainability and profitability. • Changed fertiliser regime to avoid soluble P and N and focus on balancing soil minerals. • The measurement of soil carbon annually and the demonstration of cause and effect are starting to give the biological approach more credibility. eCogent seeks to enhance profitability by sustainable production, and this focus led us to examine soil carbon in depth. If you can measure it you can manage it, and many eCogent members are doing that. For four years we have developed a practical measurement system and our experience so far indicates that, with the right management, a steady increase in soil carbon is possible and could result in carbon credits. Fortunately the Australians are onto it. Somewhere Gladys is nodding ruefully and smiling. Peter Floyd is the managing director of eCogent.

have been useful in sustaining pastures over the summer, but they have not been as kind to fodder such as hay and silage. There is a good chance that the feed in the yard has retained some of the moisture from the rainy days or it has absorbed some of the soil moisture. Hay bales that have a moisture content of 14–15% can promote mould growth. As mould grows, heat is produced, which can result in a dramatic loss of dry matter and total digestible nutrient (TDN). This translates into a loss of carbohydrates and a binding of proteins, which ultimately decreases the nutritive value of the fodder. There are a number of moulds that are commonly found in hay, but Aspergillus, Fusarium and Penicillium are of most concern, as they can produce mycotoxins that can dramatically affect livestock production. Mycotoxins are chemicals that are produced by certain species of moulds and they are toxic to animals. Visible mouldy fodder may or may not contain mycotoxins, but mycotoxins can be found in feed that does not have any visible mould. Mycotoxins can have a limited effect on animal

• Cellular death causing organ damage. The rumen tends to protect an animal from acute toxicity, due to its ability to destroy a large portion of most mycotoxins. However, this degradation can mask the acute symptoms which can result in undetected chronic problems such as those effects listed above. Determining if and what type of mycotoxin is present in fodder can be difficult, but some forage labs do have a mycotoxin test. However, one of the best methods to determine if the feed contains mycotoxins is to remove the suspect fodder from the diet and see if the animal’s symptoms disappear. Hay bales that have a moisture There are a number of feeding stratecontent of 14-15% can promote gies that can reduce the effects of mycotoxins, including additives that “bind” mould growth. the toxins; feeding optimal levels of nutrients, especially antioxidants; and sufficient levels of effective fibre to • Reduced nutrient absorption and impaired stimulate robust rumen fermentation. While all of these will help in the breakdown metabolism, reduced production, lower ferof the mycotoxin, they should be discussed with tility, lethargy and increased morbidity. • Alterations in the endocrine and exocrine a nutritionist beforehand. Reducing the incidence and concentration of mycotoxins in feed systems. • Suppression of the immune system, which can be done simply by being diligent in field and predisposes livestock to many diseases and storage practices. Morgan Hobin is a Dairy Extension Officer in may increase milk somatic cell count. A suppressed immune system may also cause lack SA with the Dairy Services Branch, made possiof response to medications and failure of vac- ble through a partnership between DPI Victoria, PIRSA and Dairy Australia. cine programs. performance, but they can also be extremely dangerous. In dairy cattle, mycotoxins are most likely to contribute to chronic problems including a higher prevalence of disease, poor reproductive performance and less than optimal milk production. The main effects that can occur if an animal has ingested feed containing mycotoxins are: • Intake reduction or feed refusal.

Seek advice on rare wet winter DPI PASTURE and Fodder Con-

servation Specialist Frank Mickan is warning dairy farmers not to underestimate the effects of a wet winter on pastures and production. Mickan says young farmers, in particular, who are used to operating in the dry conditions prevalent during the past decade, should talk to experienced farmers who had to combat mud in the very wet winters of 1995 and 1996. “The minute cows start to pug a paddock, remove them, there is no point in leaving them in any longer, as intakes won’t increase much,” Mickan says. “The pugging will worsen, and pasture production and quality will suffer. “There will be even less pasture next rotation and, if still wet, the problem will be drastically compounded. Mickan says problems associated with wet conditions include wrecked laneways, lame cows, mastitis, cows calving in the mud, skinny cows for re-mating and high levels of hand feeding. He provided the following check list to help farmers overcome the wet winter: • Ensure existing spoon and open surface drains are cleaned out (sprayed or graded) to ensure speedy water removal. • Ensure ends of sub-surface pipe drainage are clear of blockages. Allow at least 24 to 48 hours after the end of the rain event before grazing to allow the pipes to drain the top 30cm of the soil profile and regain its strength. • Repair sunken areas around water troughs and gateways, allowing the filling to pack down before it becomes too wet. • After a short grazing, use a tem-

Cows should be removed from a paddock the minute it starts to pug.

Young farmers use to operating in the dry should talk to experienced farmers. porary stand-off site to feed-out fodder: unused roadways, sand banks or old quarries are suitable sites. Segregate laneways to hold cows in small groups, stopping them walking back and forth. • Install a purpose-built standoff area that is accessible in all weather. Run-off should not en-

ter creeks, waterways, or ground water. Consider properly constructed drainage under the temporary site, a very permeable cover such as wood chips, sawdust or rice hulls. Get in early as these will be in short supply and prices will rise. • To prolong a sacrifice paddock, consider strip grazing the pad-

dock. If the feed-out cart has a side delivery system, drop feed under wire to stop cows fouling feed. • If you have small or large square bales of hay, drop the hay out several days ahead, in favourable weather, to limit tractor travel. • Some beef farmers are understocked due to the very high cost of replacements. Offer to improve their pastures by putting cattle on for short-term agistment or lease land, especially if the land is next door and can be milked off.

DAIRY NEWS AUSTRALIA // MAY 2011

animal health

Don’t let price Stress, poor nutrition cause lameness dictate dry cow treatment neil keating

A PROMINENT New Zealand hoof

There are many things to consider when selecting your dry cow treatment program and price should be the last consideration, rather than the first.

animal health rob bonanno

disinfected and the sample MANY FARMERS are collected carefully into a thinking about drying sterile container. Samples off – as spring-calved cows should be refrigerated imget close to the end of their mediately and submitted lactations. for testing ASAP. For some herds, the reOnce we have culture turn of muddy conditions results from the highest at, and around, calving last 10% of the herd we’ll have year, and throughout this a pretty good idea of the lactation has meant that mastitis pathogens which some herd cell counts are are present in the herd. the highest they have been An alternative to this apin many years. proach is a new test which The old rough rule of actually detects the DNA thumb is that for every of bacteria in a bulk milk 100,000 bulk cell count, sample. This test is very that means around 10% simple and no doubt will of quarters are infected. become a valuable tool So herds with a 250,000 for vets and herd owners, cell count have roughly 1 when determining which in 4 quarters carrying an dry cow therapy is best. intramammary infection. Armed with the knowlAntibiotic dry cow therapy represents the best edge of which mastitis bugs are present, we then chance to cure many subclinical mastitis infections. will determine the best dry cow strategies taking Over the years, I have been constantly bemused by the I never cease to dry cow treatment be amazed at the choices made by samples that some farmers purely on price, with little or people submit for no consideration milk cultures. for what is actually required. There are things like the length of many things to consider the dry period and level when selecting your dry of production at dry off, cow treatment program likelihood of environmenand price should be just tal challenge at calving and about the last considerawhether the cattle will be tion rather than the first. trucked or transported at Firstly, while we can get or soon after dry off into a rough idea of prevalence account. of infection by bulk cell Different bugs have count, individual cell different expected “cure” counts (ICC) are a more rates and the understanduseful tool to identify ing of this will greatly which cows, and how affect the choice of antibimany, are infected. Performing a whole herd otic, or even whether treatment is the best option. ICC will also allow us to Combination dry cow select which cows are the therapy using an antibiotic best candidates for milk dry cow therapy and a teat culturing. Milk cultures sealant is a strategy that should be an integral part has a lot of merit in some in selecting the most apcircumstances. This is a propriate dry cow product, great option for cows that optimum length of dry peare at high risk of leaking riod and possibly also help milk post dry off. with culling decisions. Like most things relating I never cease to be to your herd’s health, your amazed at the samples local dairy vet is your best that some people submit source of information, for milk cultures. I’ve seen advice and therapies to samples in vegemite jars ensure a safe, effective dry and with floating chunks period, and a thoroughly of faeces. These samples great start to the next are worthless at best and lactation. misleading at worst. Rob Bonanno is president To collect the best qualof the Australian Cattle ity samples, it is essential to ask your vet for advice or Veterinarians Association and a director of the Shepassistance. The teats must parton Veterinary Clinic. be thoroughly cleaned and

health specialist says stress and poor nutrition are the greatest causes of lameness in dairy cattle. Fred Hoekstra’s Veehof Dairy Services worked on 12,000 cows’ hooves last year in New Zealand. He says research conducted by his company (see story below) says the underlying issue of lameness is laminitis - a disease of the digital laminae of the hoof - and its causes. “Laminitis is symptomatic of an underlying disease affecting the live tissue in a cow’s claw,” Hoekstra says. “That disease has two causes: stress from bad

handling in sheds, and diet which does not promote hoof health. “Stress in cows results from dairy workers’ yelling at them and pushing them in yard. “The diet issue is, essentially, that you can’t feed for optimum hoof health in the context of wanting higher production. He says a healthy hoof diet would include a lot of ‘stalky’ material, but that wouldn’t get the farmer much milk. “Pasture-based diets do not produce perfectly healthy cows. We need more research into diet.” Hoekstra’s view on the cause of lameness is proving controversial in New Zealand as it challenges the more commonly held theories.

Survey shows lameness causes, incidence neil keating A SURVEY of New Zealand dairy farmers reveals herd management practices that appear to influence lameness, says Fred Hoekstra, of Veehof Dairy Services, New Zealand. The survey was part of a study testing the relationship between dietary fibre and lameness. The survey in Canterbury was done by nutritionist Wybe Kuperus, veterinarian Helwi Tacoma, Fred Hoekstra and research assistant MariusHans Troost, of Lincoln University. Kuperus says 342 questionnaires were sent out and, based on 108 replies, a relationship appears likely between how cows are handled on the way to the dairy and the incidence of feet problems. Cows pushed along, on the track and in the yard, showed increased lameness. Cows having to walk further than 1km to a dairy shed also showed higher incidence of feet problems. The message seems to be “no hurry, no worry,” Kuperus says. About 43% of herds were always allowed to walk to the dairy at their own pace, and this group showed less lameness than the 57% of herds not allowed to walk at their own pace. In the group always allowed to walk at their own pace, 56.5% had a lameness incidence of zero to 5%, 37% had an incidence of 6-15%, and 6.5% of herds suffered more than 15% of the herd lame. When cows were not always allowed to walk at

their own pace, 24.6% of the herds had zero to 5% lameness, but 62.3% fell into the 6-15% lameness category, and 13.1% had at least 15% of the herd lame. Higher use of a backing gate to push cows into sheds also appears to increase feet problems. In herds where the backing gate was moved at least 10 times, 24% had at least 15% of the herd lame. If the backing gate was moved less than 10 times, 5% of the herds suffered at least 15% lameness, and 43% had an incidence of zero to 5% lameness in the herd. Survey figures also showed that walking less than 1km to the dairy was associated with less lameness. This may be because more walking increases the chance of mechanical damage and increases the likelihood of human impatience in bringing in the herd. Other factors which became apparent in the survey: • Cows in small herds are less vulnerable to lameness. • Herds with more overseas Holstein-Friesian genetics may be more vulnerable to high incidence of lameness. • Herds fed grain recorded more lameness. • Herds walking on tracks • with a high crown (over 50cm height difference between middle of the track and side) had less lameness compared with herds walking on tracks with lower crowns. • Herds fed brassica seem more vulnerable to lameness; Southland herds fed brassica showed increased lameness during spring.

“I’m not trying to prove others wrong, but to get to the truth of this,” he says. “We’ve done some research and we will keep doing it. More farmers are now accepting what we’re saying.” After 16 years of hoof care in NZ – underpinned by his Diploma of Professional Training in Bovine Pedicure from Holland – Hoekstra is beginning to make waves about bovine lameness. Attending the recent international Lameness in Ruminants conference in Rotorua, NZ, left him with a whiff of academic egotism in his nostrils – the result of running his experience up against the science establishment’s thinking about causes of lameness. “Most people haven’t a clue what preventative or curative hoof trimming is

about,” he says. “They tend to lift the foot, see a problem – perhaps see pus or blood emerge – then they think they’ve got it.’ He says but just as you can’t buy a dentist chair and gear and set up as a dentist, similarly you can’t without training assume expertise in hoof trimming. “The way things are (regarding lameness) is different from how the experts say they are.” Hoekstra came to New Zealand 20 years ago after formal studying dairying in Holland then working briefly on dairy farms there. He came to NZ to find greater opportunity and began working in dairying. With little expertise in hoof care in

NZ at the time, he returned to Holland, took the hoof care diploma course, then came back and “took the plunge”, setting up his business. “Four years working on farms around New Zealand showed me farmers didn’t know enough about trimming hooves. He says they got away with less-thanideal trimming because soft pasture conforms to the shape of a cow’s hoof (the outer claw is larger than the inner) so differential weight bearing is not critical. “Contrast this with Europe where most cows stand much of the year on hard surfaces.” Hoekstra says this changing because of the country’s move to feed pads and cow housing.

DAIRY NEWS AUSTRALIA // MAY 2011

machinery & products

Forage harvester changes lives Selective spraying options increase GREG PEDDLE is a

Kim even has her own JD 5090R with a frontself-confessed machinend-loader to manage ery enthusiast - and the calf-feeding tasks. that’s not surprising. They now have 210ha After growing up on on the main property the family farm on the plus 165ha on another outskirts of Yarram block ‘over the road’, in east Gippsland, he and recently expanded headed off to do a motor mechanic appren- working clothes into a further 200ha chris dingle that is 1.4 kilometres ticeship and worked for away as the crow flies, the local Holden dealer but six kilometres by road. When for 4½ years. Peddle came home when he was 21 fully developed they will have 400ha to share-farm with his parents milk- under irrigation. “We bought that property for seing 185 cows. They made 14,000 bales in that first year. And Greg says that it curity and we are developing it so nearly killed him carting them in. As that we can grow all our own feed,” a result a round baler turned up soon Peddle says. “It has two pivot irrigators covering 200 acres and room for and the contracting started. Peddle and his wife, Kim, eventu- a third. Because we are on groundally bought all the cows and took over water we have 100% permanent allocation.” the management of the property. Peddle has been involved in a lot of They run through an expansive list of John Deere tractors and round hay contracting work. “In a good year we were makbalers that they have owned over the years, and have built up a strong ing 14,000 round bales, but as the relationship with their local dealer, drought dragged on, the hay contracting work virtually disappeared.” Windmill Ag at Meeniyan.

“We had been making our own silage, using a Strautmann Mega Vitesse that we later traded up to a Giga Vitesse. That operated for 18 hours-a-day for three to four weeks. And we pulled it with a JD7930.” During last year they purchased another JD7930 to run two loader wagons, but Windmill Ag invited them along to a farmers’ night to learn about John Deere forage harvesters. “I wasn’t really serious about it at the time, but it looked like a good machine that was easier to service and cheaper than its main competitor,” Peddle says. Two months later they did the deal for a 7450 self-propelled forage harvester. Mark Allott from Windmill Ag worked out the specifications and they took delivery in October 2010. It is fully equipped with all the extra lights possible, but because of its capacity it hasn’t been used at night. Peddle says that decision to buy the forage harvester “has changed our lives and taken the pressure off at harvest.” “The machine has a pretty fancy

East Gippsland farmer Greg Peddle on his John Deere 7450 self-propelled forage harvester.

Controlling the spout took about 20 minutes to learn.

infinitely variable transmission, and these forage harvesters are normally fourwheel-drive, but they built this one up as two-wheel-drive. They then needed to add some ballast to the rear end to avoid tipping up under some conditions.” Peddle says it is a simple machine to operate. Mastering the transmission was no problem, and controlling the spout took about 20 minutes. “It didn’t take very long at all to get used to it. In half an hour we were looking for more horsepower – and it already has 570hp. I was a little nervous to start with, but it turned out to be a non-issue. It’s a good automated system that is easy to drive. “We cut the crop with the front-linkage mower and rear mower-conditioner with auto swather, on the JD7930. “We have a 6.4 metre swath and run that into one windrow. We use an inoculant so that we can harvest it with a higher moisture content.

The harvester runs at 11 to 16 kmh and can fill the 26 cubic metre tipper body on the chaser truck in 2 minutes 40 seconds. “We used a front-mounted buck-rake on the other JD7930 and a 20 tonne excavator to roll the silage, but they couldn’t keep up. It’s the biggest silage bun you’ve ever seen – 95m x 30m x 3m.” He recently bought a second-hand JD9200 from Western Australia to be fitted with the buck rake for the coming season. “With the loader wagon we were averaging 350 hours per year. The forage harvester takes 80 hours to do 1½ times as much,” he says. He is grateful for the in-built metal warning system on the forage harvester, as there is plenty of old wire on one of the blocks. Working Clothes will focus on the performance of a new machine in the paddock each month. Send suggestions to Chris Dingle on 0417 735 001 or email chris@springbankfarm.com.au.

WE’VE BEEN having a look during the last couple of weeks at weed detection technology, where sensors mounted on a spray boom identify individual weeds and relay a message to fastacting solenoids linked to spray nozzles that then spray only the weeds at speeds of up to 25km/hour. It is mainly applicable to broadacre spraying at the moment where some operators are reporting a saving of up to 87% of herbicide chemical. However as the technology develops I can see a situation where it will become viable for smaller booms in pasture renovation applications. It’s worth keeping an eye on. In New Zealand we’ve heard about similar technology being used to measure, in real time, a crop’s nitrogen levels and apply liquid nitrogen requirements at the prescribed variable rate. This system is called GreenSeeker. Grant Yates at Southern Precision on 0428 430 259 has more information on the Weedseeker system (pictured).

Tier 4 coming The word on the tractor development scene is that next year we should expect to see the new Tier 4 diesel engines on tractors available in Australia, with second generation common rail fuel injection technology. Manufacturers say that meeting Tier 4 emissions legislation is a massive challenge, but also a huge opportunity for innovation to create tangible benefits for owners. These include reduced fuel consumption and cost of ownership and better reliability. Stand by to hear more about it as distributors herald their developments.

Plan for harvest You’ve heard it said it

before, and it bears repeating because this time it’s dead-set serious, if you are planning to buy new equipment for later this year and early next – make sure that you get your plans in place early. Higher commodity prices have meant that overseas agricultural business is ‘going gangbusters’, according to one industry informant. And, due to the earthquake, we are seeing shortages occurring in machinery coming out of Japan. Assess your capacity for the next hay/silage harvest

new products chris dingle and lock in your orders now. Prospects have improved after three years of subdued activity. Windrowers will be particularly difficult to source, but you haven’t missed out on new balers. If you have your name on one, you’ll get it for August/September. If not you may have to wait. On a positive note, with the strong Aussie dollar, prices of imported machinery have remained fairly stable and there shouldn’t be too many price rises.

A word of caution In these perceived boom times there is an influx of re-manufactured or second-hand tractors from overseas, known in the industry as ‘grey imports’. These may represent good value, but remember the old adage ‘if a deal sounds too good to be true, it probably is’. Be careful you may not be able to get the same local dealer support for parts and service that you would normally expect and the risks under OH & S can be substantial if they don’t meet our accepted standards.

Brevi tillage gear here Silvan Australia has taken on the importation of Italian-made Breviglieri rotary hoes and power harrows. These are said to be particularly popular overseas for farmers converting previously uncultivated ground for pasture renovation. They come in sizes up to seven metres working width and suit a wide range of tractor horsepower. You can see them at www.brevigleri.com or call Silvan on 1300 745 826.

Lifecycle-neutral dairy operations Clive Edwards, at Lely

Australia, tells us that, globally, Lely has joined forces with a group called Green Energy Technologies (GET), which has embarked on the development of a sustainable operational system to make optimal use of minerals on-farm. They say their AgriMo-

DEM system is a unique and compact concept whereby manure can be refined after a few days. It reduces emissions and ensures that dairy farms are self-contained in terms of energy production. This means that dairy farmers can apply a larger part of the minerals that are produced on-farm to their own land. Less manure, if any at all, needs to be removed from the farm. The joint venture is to ensure ‘lifecycle-neutral’ operations in the dairy business. Lely Australia had its

national dealer conference at Noosa and released their new range of Welger balers to the dealer network in March. This included product training and in-field demonstrations. More information on the new range is available from Lely on 03 5484 1055.

Landpower appoints tractor specialist Landpower has appointed tractor sales specialist, Paul Holdaway, to look after its Claas tractor

market. The company says the 37-year-old is arguably the foremost authority on Claas tractors in the southern hemisphere, having sold more than 200 units in New Zealand during the past six years. Paul will provide sales support and technical advice to Claas Harvest Centres and dealers throughout Australia from his new Melbourne base. Contact Chris on 0417 735 001 or email chris@springbankfarm.com.au

DAIRY NEWS AUSTRALIA // MAY 2011

machinery & products

Tas farmers install auto dairy TASMANIAN DAIRY farmers, the Dornauf

family, will be the first commercial farmers to install the DeLaval automated milking rotary (AMR) system. Three generations of the family – Ian and Jenny, Chris and Lynn, and Nick - run three dairy operations and milk 1100 cows. They are currently preparing a new site for the automated dairy, which will be built-up during the next 2-3 years to a 500-600 head operation in a voluntary cow traffic system. “We see this technology as being vital to the future of the dairy industry, and we are excited about being involved at the start of this revolution,” Chris says. “We see this move to large scale automated milking as a key milestone in our business development. He says the family invested in the AMR because they want to manage their farm in a way that allows them to focus on the cows’ performance rather than on the manual task of milking them. “I think this is the system that will help us achieve that goal.” The Dornauf’s pasture-based systems are supplemented with silage and concentrate. Production levels on their three properties fluctuate between 520-620kg milk solids per cow, per lactation. DeLaval’s Andrew Turner says the system was developed with three key customer benefits in mind - profitability, farm management and flexibility.

Aitchison releases new Grassfarmer range AITCHISON

Nick, Lynn and Chris Dornauf with DeLaval dealer Laurie Hooper at the Camden AMR site. The Dornaufs will have the country’s first AMR system installed on their Tasmanian farm.

He says the main components of the AMR are teat preparation, attachment and teat-spray modules, and two touch screens to operate the system, automatic cup backflush, automatic floor cleaning and safety systems. Turner says the first AMR systems will have up to 90 cow/hour capacity, depending on the number of robots installed. With as many as five robots that can be attached to the rotary. “I would like to acknowledge the collaboration with Future Dairy Project in Australia that has resulted in the successful development of this significant technology,” Turner adds.

The challenge to develop the AMR was to bring to market a flexible system that works equally well on all types of farming operations. Another goal was to offer a modular approach so dairy farmers can scale up - they can start with a lower level of automation and then increase as their business grows. “Less capital is needed from the outset,” Turner says. DeLaval is testing the AMR on farms in Sweden and Australia and plans more commercial releases in both countries during the year.

NEW

Grassfarmer tine drills include 14” coulters, frame stagger for superior trash clearance and newly designed 25mm straight tines. Aitchison have been making drills in New Zealand for 40 years. The company’s Australian Sales Manager, Brendan Prentice, says two disc drill models are now also available in the Grassfarmer range. Prentice says it was the first manufacturer that fitted an inverted t-boot to a tine and was instrumental in the development of this technology. “We also have the farmer end of the market well covered with our Grassfarmer range of disc

and tine drills,” Prentice explains. “With two frame sizes of 2.1 metres (seven feet) and 2.7 metres (nine feet) in either a tine or disc only configuration we are the accepted market leaders in this segment.” Prentice says the versatile drill can plant any seed, including small brassicas, with great accuracy. It also has a large hopper. The seeding rates are governed by a variable gearbox with a range of settings that accommodates sowing rates from as low as 1kg and up to 350kg/ha. According to Prentice calibration is also easy. Prices start at $14,950 plus GST for the GF2014 model Aitchison. Tel. 0400 540 300

Kuhn increases feed option with Primor CHOPPING AND distributing straw or big-bale silage, regardless of their consistency or quality, is easier using a new-model Kuhn Primor feeder/bedder. The trailed Primor 3570 holds 3 cubic metres, so it will carry two 1.5m round bales. It can feed any long-fibre forage and distribute bedding straw up to 18m through a top chute. The 3570 has a hydraulically operated regulator at the entrance to the feed rotor which adjusts throughput according to material quality, so maintaining working efficiency. Kuhn says the key to the Primor’s effectiveness is its robust two-speed gearbox. This typically runs at its lower rate for silage, and faster when distributing straw. A power shaft drives a four-strand power-band system, engaged/disengaged by a hydraulic cylinder. The power band provides a high level of power to the distribution beater rotor and acts as a safety device. The bed chain conveyor runs independently to draw material into the beater rotor. This can be run at varying speeds, and reversed, to control the flow of material into the distribution area. Feed or bedding straw come out the same top chute, height adjustable. An optional 300-degree swivelling chute improves ac-

Dairy cleaning system saves money A NEW milking machine

cleaning system available from GEA Farm Technologies uses less electricity to heat water, less chemicals and less water overall. GEA Farm Technologies, formally GEA Westfalia Surge, managing director Peter Maguire says the new re-use system offers dairy farmers reductions in operating costs, as well as reducing the amount of water and chemicals running to waste each milking. “One of the key saving measures is the Westfalia Surge heat recovery system on the refrigeration units, which heats water for free, using the waste heat from milk cooling,” Maguire says. “This hot water is used to maintain the temperature in the stored detergent water so water heating costs are dramatically reduced.” The system stores washing chemicals in three insulated wash tanks so the chemicals can be used for several weeks, rather than only used once. To avoid contamination of the cleaning solution, at the start of the detergent rinse cycle the first few litres is run to waste while the rest is recirculated, then saved and stored in the appropriate insulated storage tank.

The main wash controller is operated by a PLC which can be adjusted to suit any milking system. It also manages the wash program, as well as monitoring the detergent concentration and automatically adding either acid or alkali detergent as required to maintain the correct concentration. “Re-use systems have been around for many years. However, old systems were manually controlled and required careful management by the operators,” Maguire says. The big difference with this system is how modern technology provides automatic monitoring of the system so it is simple to use. “For today’s dairy farmer, the question is payback on the investment. Based on today’s prices for electricity, chemicals and water, the typical pay period is 5-7 years, but this will vary depending on the size of the milking plant and the existing dairy system. “With increasing costs for electricity, chemicals and water, plus the unknown effect of Carbon pricing on our industry, the return on the investment in this system will be even better in the future.” Tel. 1800 789 100

cess in tight spaces. The rear door of the Primor 3570 is hydraulically controlled, for self loading. All functions are controlled electronically from the tractor cab. Minimum power requirement is 70hp when the Primor 3570 is used for silage or haylage. Tel. 0447770171

DAIRY NEWS AUSTRALIA // MAY 2011

MOtoring

Holden’s new mid-sized sedan HOLDEN’S NEW medium sedan, the

Malibu, has made its international debut at the recent Shanghai Auto Show. Conducted by Holden’s sister brand, Chevrolet, saw the veil lifted on the new-generation model that will be sold in up to 100 countries – including Australia next year. Holden says the Malibu will be powered by a range of efficient 4-cylinder engines, highlighted by advanced exterior and interior design, exceptional ride and handling and outstanding safety features. It says the Malibu’s exterior design has taken inspiration from Chevrolet s iconic Camaro and Corvette muscle cars, with a wide stance, broad shoulders and integrated spoiler giving it impressive on-road presence. Inside, the dual-cockpit interior is finished with the use of premium materials, including soft-touch and textured surfaces and ice-blue ambient lighting along the centre stack dials, instrument panel and storage pockets. Malibu will offer a comprehensive range of safety features and has been extensively tested on a wide range of

road surfaces and conditions around the world. Holden Executive Director of Sales, John Elsworth, says Malibu reflected the same focus on quality and advanced technology as seen in the globally successful Cruze small car. “Malibu will represent another major step forward in the Holden product offensive when it arrives late next year, filling a gap in our model lineup between our leading Cruze and Commodore models,” Elsworth says. “We think it will really hit the mark.

From the Camaro-inspired exterior design and sleek interior to the dynamic performance capabilities, it is another great example of the sophistication we’re building into our newgeneration global vehicles. “We’ll offer high-performing fuelefficient engines, a high level of safety and a range of features and technologies to appeal to customers in the competitive mid-size segment.” Holden will release details specific to the Malibu model sold in Australia closer to its local launch in 2012.

New BMW Convertible hits Australian roads THE NEW BMW 6 Series Convertible has

arrived in Australia. The top-of-the-range V8 petrol engine 650i Convertible is priced from $248,300 while the six-cylinder in-line petrol engine 640i, which is available from August, starts at $194,300. BMW Australia managing director Phil Horton expects the new generation 6 Series to outsell the previous model in Australia. The 650i features 4.4-litre TwinPower Turbo V8 engine with High Precision Injection, which generates 300kW of power and maximum torque of 600Nm across a broad rev range between 1750 rpm and 4500rpm. Combined with the 8-speed sports automatic transmission which includes steering wheel paddles for manual shifting, the BMW 650i Convertible covers the 0-100km/h sprint in just 5 seconds – with a combined fuel consumption of just 10.7 litres per 100km. The 640i Convertible features a straightsix petrol engine with BMW TwinPower Turbo technology, and High Precision Injection, delivering 235kW and 450Nm of torque between 1300 – 4500 rpm. The BMW 640i accelerates from 0-100 km/h in just 5.7 seconds and consumes only 7.9 litres per 100km of fuel on the European combined cycle, while emitting just 185g/km of CO2.

Through the application of BMW Efficient Dynamics technologies such as Brake Energy Regeneration, High Precision Injection, Auto Start/Stop and Air Vent Control, the BMW 6 Series Convertible offers power without compromising fuel efficiency. Standard specification on both the 640i and 650i includes 19” V-Spoke alloys, adaptive headlights, Bluetooth, lumbar support, seat heating, Professional Navigation, Rear View Camera, front and rear Park Distance Control, Sports Seats, full-colour Head-Up Display, High-Beam Assist, Internet, Bi-Xenon headlights, cruise control with brake function, LED fog lights, USB, and interior and exterior metallic paint. Both models can be fitted with Adaptive Drive (standard on the 650i). This technology offers four driving modes – comfort, normal, sport and sport+ - to change vehicle response at the touch of a button. In addition to Adaptive Drive, both models can be fitted with Parking Assistant, which enables automatic identification of parking spaces and automated parking manoeuvres. The new BMW 6 Series features a host of luxury, safety and infotainment technologies from the BMW ConnectedDrive suite of innovations. The BMW 650i Convertible is available in Australian dealerships in May, with the 640i Convertible due to arrive in August.

DAIRY NEWS AUSTRALIA // MAY 2011

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