dairy news australia february 2016

LUCK AND GRIT

MG nabs Coles cheese deal from Bega PAGE 9

Siblings Luke Fitzpatrick and Sharon Hannah

saved their dairy from res in Waroona, WA last

month, one of 20 a ected in the region .

PAGE 8

www.lely.com.au innovators in agriculture

Want a first class seeding solution?

EFFICIENT & TROUBLE-FREE SOIL PREP!

The Tulip Multidisc combined with a Polymat Compact is the perfect solution for efficient high speed seed bed preparation and sowing in one pass while remaining fuel & power efficient.

Phone Lely Australia today for more information on 1300 946 306

LUCK AND

MG nabs Coles cheese deal from Bega PAGE 9

FEBRUARY, 2016 ISSUE 66 // www.dairynewsaustralia.com.au

MINE THREATExpansion could end farmPAGE 6

PARCHED PASTURETips for renewal PAGE 28-29

PHOTO: KERRY SHORE

SKIOLD & Vacuum Milling Solutions www.vacmillsolutions.com.au

CONTACT:Phone: 0755 477 588 [email protected]

&

SKIOLD DISCMILLS

More utilisation out of your grain!

Mill pinched or small grain

Mill two or three different grains at once

Quiet operation

Easy to adjust grinding degree

Minimum maintenance

Exceptional durability on wearing parts

Low power consumption

Capacity up to 12 t/h

No V-belts or chain drives

Two grease nipples one pump every 500 hours

Tried and approved by Australia's best farmers!

European quality and manufactured

CALL US FOR MORE INFORMATION!

Dai ry NewS aUSTraLia february 2016

news //3

news3-9

IDw2016 10-11

worlD12-13

arounDtheregIons 14-15

opInIon 16-17

markets18-19

management 20-21

breeDIngmanagement22-23

anImalhealth 24-25

pastureImprovement 26-31

IrrIgatIon 32

machInery&proDucts33-34

VDL fight not over. pg.07

Is fortified milk worth it?. pg.24

Jersey snares IDW win. pg.22

Much Smaller, Shorter and Less Expensive Than You Think!

ALL THE SMALL THINGS ADD UP WITH THE FAIR GO DAIRY FEED PAD

www.wastenot.com.auBetter feeding, higher production.

Call 1800 808 685 for a free information pack, DVD or consultation.

Our customers have found: Much less mud and pasture damage Much less feed wasted Saves time and labour - Fill every 3 days Use whole rolls, big squares, silage or fibre No tractors or wagons tied up

Better utilisation of lush pasture Better butterfat test use of fibre Increased production Improved conception/retention rates Gives battlers a Fair Go Lifts the tail out of the mob

WN074_90x260_SF.indd 1 7/06/11 9:01 PM

FarmerscoulDhave access to more water at cheaper prices with planned changes to the Water Act 2007.

The Australian Dairy Industry Council (ADIC) believes changes accepted by the Federal Govern-ment will give farmers more flexi-bility to trade water, but says more amendments are needed.

The ADIC has lobbied for increased trading flexibility for Commonwealth Environmental Water Holders and believes the Federal Governments support for the recommendations of an inde-pendent review is positive news for dairy farmers.

However, while the government is supportive of all the recommen-dations not all will be fully adopted.

Chair of the ADICs re-formed Water Taskforce, Daryl Hoey, who farms in northern Victoria, said the response was a positive first step but greater improvements in the implementation of the Act and the Murray Darling Basin Plan are still required.

There will be continual meet-ings over the next few months

while weve still got a chance to change the legislation before the June 16 deadline, Mr Hoey said.

Were trying to get the poli-ticians ahead of the game rather than only responding when head-lines appear in the paper about water prices.

Mr Hoey said dairy was a flexi-ble and responsible user of water.

We have adapted our prac-tices to be more water-efficient. However, reduced access to water resources is already putting pres-sure on dairys productivity and profitability.

Under the original legislation when water holders sold water, the proceeds had to be used to buy additional water in another part of the market.

Mr Hoey said this had been eased and holders can now use money from water sales to improve infrastructure or invest in technol-ogy that can achieve similar results but with less water.

Our argument has always been that farmers have had to make huge improvements in the way they use water so its not just us going into the market all the time buying water for what we need to do. The environment needs to be under

the same sort of rules. They need to improve the way they use water too, rather than just purchase water all the time.

This means the environment wont have to purchase as much water to get the same environmen-tal outcomes.

Theyre not in the market push-ing the price up which means there will be more water for farmers to purchase and hopefully cheaper as well.

Mr Hoey said flexibility for water holders was the key to help-ing the industry remain viable and ensuring a balanced approach to achieving environmental outcomes in the Murray Darling Basin.

The governments stated commitment to continue to work towards achieving a total 650GL supply offset is positive.

Achieving the full amount through environmental works means more water stays in the irri-gation pools, he said.

Mr Hoey said there were still concerns about ambiguous word-ing in the Act.

That the government didnt agree with submissions to amend the Act to unambiguously state a triple-bottom-line objective or to

strengthen the current implemen-tation of the legislation is of con-cern. Such an approach is critical, Mr Hoey said.

There is a need for a robust evaluation of environmental, eco-nomic and social impacts before considering an additional 450 giga-litres (GL) of water being taken from agriculture.

The ADIC is also concerned the impacts of water sales are consid-ered only at a farm level.

If the farmer sells the water and gets his money the authority says there has been no impact but the impact is going to be felt at a regional level because you have less business in small towns, less kids at school because there are less farm-ers, and less water in the region. Its a poorly worded part of the Act.

Mr Hoey said water prices had come off from pre-Christmas highs.

Thats the market responding to farmers refusing to pay the prices that were being asked, he said.

It was up to $280-$300 but you can buy small parcels for under $250. Farmers would still like to see it back closer to $200 or less. Hope-fully with the rains weve had and a good autumn the price will drop even more.

Water plan still needs workrIckbayne

DAI RY NEWS AUSTRALIA FEBRUARY 2016

4 // NEWS

LIVESTOCK SELLER Michael Goldby has seen first hand the enormous promise the Chinese market holds for the Australian dairy industry.

Mr Goldby, from South West Farmers based in Portland, south-west Victoria, joined a delegation to China in late 2015 with local government, education and agricultural officials.

What he saw made his head spin.The group visited the Ground

Dairy Group, a company that includes property development, food manufacturing, telecommunications and finance, and has assets worth $7 billion and employs more than 5000 people.

Its food manufacturing business includes dairy, brewing and modern agriculture products, such as liquid milk, cheese, yoghurt and more than 100 other dairy products, and organic crops of vegetables.

The dairy is the largest manufacturing enterprise with 48 assembly lines for dairy products.

One dairy milks 10,000 cows and 15 other dairies each milk 1000-plus cows.

Theyre one of the biggest in China; theyre massive and theyre looking for product and heifers, Mr Goldby said.

The delegation also visited the

Haoyue Meat Company which slaughters a million cattle and 200,000 sheep each year and processes 600,000 tonnes of feed. The company showed interest in more Australian-bred cattle.

Since returning to Australia Mr Goldby has been encouraging local businesses to learn more about trading with the booming Asian markets.

He is already following up on one

export order.I was absolutely impressed by

what I saw, he said. There are huge opportunities in both dairy and beef.

Mr Goldby said some local farmers were keen to pursue options; some were sceptical.

The markets there and its growing and theyre absorbing more product. It can only be beneficial going forward if we seize on the opportunities, he said.

They want to be involved with Australia. If we dont supply them someone else will. We have the leading edge because of our clean-green image; thats what they want.

Mr Goldby said he was impressed by the scale of operations in China and their long-term vision.

You might have a picture in your head but with the scale of everything I saw you could add another three noughts at the end of every figure and you still wouldnt be close, he said.

We met with government officials and theyre planning 20 to 30 years down the track for food security. We need to see past the next election cycle.

Its all about food security for them. There are a lot of people to feed

and their eating and lifestyle habits are changing.

Mr Goldby said Chinese officials believe the Free Trade Agreement (FTA) will make it much easier to do business.

All those things are coming in to play and our local farmers can be the first to benefit.

With burgeoning demand for milk powder, raw materials and value-added product, Mr Goldby sees great opportunity for processors to capitalise, with potential for 25% growth.

Its probably too difficult for individual farmers but for processors the market is huge absolutely massive.

It was an eye-opener for me. My head was spinning all week.

The tour itinerary also included visits to technology companies, a university and a meat company. The delegation was organised by Warrnambool City Council.

Mr Goldbys local municipality, Glenelg Shire Council is encouraging local business and industry to learn about the benefits of FTAs and to look at how the regions food and fibre can be traded on the world stage.

First hand China visit a head spinnerRICK BAYNE

IN BRIEF

Beston extends reach in AsiaBESTON Global Food Com-pany, whose interests include both dairies and dairy process-ing facilities in South Australia, has announced a joint venture with the Sunwah Group in Hong Kong for the marketing and distribution of BFC food and beverage products in Hong Kong, Macau and certain parts of Southern China. In announcing the Joint Venture, the chairman of BFC, Dr Roger Sexton said the arrangements which have been put in place, filled a gap in the companys Asian distribution platform.

Scholarship opportunity APPLICATIONS for the Rural Industries Research and Development Corporation Horizon Scholarship 2016 are now open. The Horizon Scholarship is for young people who are passionate about agriculture, with a keen interest in the future of ag industries and who are ready to expand their networks and learn new skills. Applications close February 19. Visit www.rirdc.gov.au for more information.

THE Australian Livestock and Rural Transporters Associa-tion (ALRTA) and National Transport Insurance (NTI) have launched a 24hr national hotline to coordinate emer-gency responses to incidents involving heavy vehicles carry-ing livestock. ALRTA national president Kevin Keenan said LivestockASSIST establishes a rapid national emergency response service so that we can minimise harm to drivers and animals in the rare event when things do go wrong. It includes response options such as vehicle recovery, medi-cal assistance, driver repatria-tion, trauma counselling and message referral services. Special requirements when an incident involves livestock will also be provided for. The national number is 1800 4 ALRTA (or 1800 4 25782).)

New hotline for transport incidents

Michael Golby pictured with two of his hosts at Ground Dairy Group.

Dairy Equipment Co Ltd

EFFICIENT &AFFORDABLE

1300 767 [email protected]

Reduce teat spray usage! AND FOR THE

HERRINGBONE...Better than a manual teat sprayer and no labour unit. Two nozzles deliver highly accurate bursts of teat spray.

Labour saving device

Highly accurate

Low teat spray usage

The original Teatwand 400 remains in the product range.

Reliable and durable

Optimal droplet size

The better alternative

Distributor for:


NEWS // 5

THE AUSTRALIAN Competition and Consumer Commission (ACCC) has begun action against Woolworths, alleging the supermarket giant abused its bargaining position when seeking payments from Tier B suppliers as part of a strategy to reduce its profit shortfall in December 2014.

The ACCC alleges that Wool-worths management approved a scheme in which Woolworths sought to obtain payments from a group of 821 Tier B suppliers broadly defined as a group of non-market leaders in their category to its supermarket business.

Woolworths category managers and buyers contacted a large number of the Tier B suppliers and asked for Mind the Gap payments from those suppliers for amounts (ranging) from $4291 to $1.4 million, to support Woolworths. Not agreeing to a payment would be seen as not supporting Woolworths, the ACCC said in a statement.

The ACCC alleges that Woolworths did not have a pre-existing contractual entitlement to seek the payments, and either knew it did not have or was indif-ferent to whether it had a legitimate basis for requesting a Mind the Gap payment from every targeted Tier B supplier.

It is not yet known whether any dairy companies were targeted because,

according to the Statement of Claim lodged by the ACCC, Woolworths had no accurate written record of which sup-pliers were approached, which suppliers agreed to make payments, how much money they contributed or on what basis the suppliers agreed to make the payment.

The allegations claim Woolworths sought about $60.2 million payments from the suppliers, expecting that while many suppliers would refuse to make a payment, some suppliers would agree. Woolworths ultimately captured about $18.1 million from these suppliers, according to the ACCC.

ACCC chairman Rod Sims said the Mind the Gap payments were uncon-scionable in all the circumstances.

A common concern raised by suppli-ers relates to arbitrary claims for pay-ments outside of trading terms by major supermarket retailers.

It is difficult for suppliers to plan and budget for the operation of their busi-nesses if they are subject to such ad hoc requests.

The ACCC is seeking injunctions, including an order requiring the full refund of the amounts paid by suppli-ers under the Mind the Gap scheme, a pecuniary penalty, a declaration, and costs.

The proceedings follow broader investigations by the ACCC into allega-tions that supermarket suppliers were being treated inappropriately by the major supermarket chains.

In a statement, Woolworths said it had been fully cooperating with the ACCC during the course of the inves-tigation.

We believe our conduct was consis-tent with Australian and international industry practice to engage regularly with suppliers over product and cate-gory performance.

Woolworths believes in working cooperatively with suppliers.

Woolworths was the first major supermarket to agree to sign the Gro-cery Code of Conduct and is currently implementing the Code across its busi-ness.

Woolworths has until February 15 to submit its defence, with mediation between the parties to start in July.

ACCC takes action against Woolworths gap payment

FARMERS ARE being encour-aged to have their say on the impact of misuse of market power and the establishment of an effects test spe-cifically an amendment to Section 46 of the Competition and Consumer Act recommended by the Harper Review Panel last year.

The recommendation would see the Act changed to improve its effec-tiveness and weight so that any cor-poration with a substantial degree of market power cannot legally engage in conduct that lessens, or has the effect of lessening, competition in the market place.

On January 28 the Minister for Agri-culture and Water Resources, Barnaby Joyce, called for producers to have their say on the issue, before the close of deadline on Feb-ruary 12.

This government is com-mitted to rectifying sup-plychain issues and fostering a competitive and transparent busi-ness sector so that all participants in the market place are treated fairly, Mr Joyce said.

I want any farmers who have experienced anti-competitive behaviour to share their

ideas. Submissions close on February 12 and its important any measures introduced are informed by the

experiences and ideas of people in the agriculture sector.

Australian Dairy Farmers president Simone Jolliffe said ADF was continu-ing its call for the Federal Government to adopt stronger misuse of market power laws to foster a more compet-

itive business environment.Addressing the misuse of market

power is crucial in determining the Australian dairy industrys future profitability and sus-tainability, Mrs Jolliffe said.

Farmers need every opportunity to improve their negotiating power for prof-

itability and returns at the farm gate to be achieved.

Treasurer Scott Morrison said the discussion paper was necessary to bring the parties closer together on the issue.

The section 46 debate had

devolved into a binary argument - either the full Harper or the no Harper.

But there are a range of points that exist between those two options that could reinvigorate the debate on the Harper Reviews proposal with a view to bringing parties closer together on the misuse of market power provi-sion, Mr Morrison said.

To view the discussion paper and make a submission or comment, visit www.treasury.gov.au/Consulta-tionsandReviews/Consultations/2015/Options-to-strengthen-the-misuse-of-market-power-law

Have your say on misuse of (super)market power

MADELEINE BRENNAN

I want any farmers who have experienced anti-competitive behaviour to share their ideas.

Barnaby Joyce

A DARLING Downs family have staked their future on a new multi-million dollar farming system only to discover it is now under threat from an encroaching coal mine.

Noel and Fay Wieck and their son Grant and his wife Kylie planned to build a new concrete feed pad on their property Chelmonte at Brymaroo, but it quickly morphed into a massive free-stall barn complete with robot milkers.

The nearby Acland mine had been slated for closure but by the time the first of their Illawarra

cows were housed in 2013 the political winds had changed.

Plans for a mine expansion have been revived with the opening of three new open cut pits, the closest of which will be just 1.5km from their boundary.

Our limited groundwater supply is crucial to our survival and modelling has shown there will be a permanent drawdown on aquifers up to 8km away, Noel said.

When we went ahead with our development there was a guarantee from both sides of politics that there would be no mine expansion.

Expansion of the New

Acland coal mine was first proposed in 2007 and drew a hostile community and political reception.

But a scaled down version was given conditional approval in late 2014 by the (QCG) in the dying days of the Coalition Government.

QCG Barry Broe found there were 357 registered underground bores in and around the mining area which could be affected.

He set conditions requiring proponents to enter into make-good arrangements with potentially affected groundwater users, including provision of an alternative water supply. A draft Environmental

Authority was issued for the project in August last year.

Following a period of public submissions, objections will now be heard by the Queensland Land Court, with 10 weeks set aside from March to May.

There are supposed to be make-good provisions to cover any losses, but once water is drained from our aquifer the place simply wont be viable for dairying, Noel said.

We will be left arguing for compensation and forced to walk away from our property which has been in the family almost 100 years.

Its a very stressful

time when we are still bedding in our new dairy facility which isnt even up to full capacity yet.

We are totally reliant on eight bores which give us stock and plant water and only limited irrigation capacity.

In a separate process, the Federal Government is also reviewing impacts on

surface and groundwater in the region.

The independent expert scientific committee in its second report last December said there were still significant issues unresolved in a revised groundwater modelling response provided by the company.

A spokeswoman for

the New Acland said the company was unable to comment while project was before the courts.

Final approval for the mine expansion will rest with the Queensland Government which will have to issue a new mining lease. Wiecks make every drop count, p. 20.


6 // NEWS

THE NSW Government has released a right to farm policy which it says will support farmers to operate their busi-nesses without conflict or interference from other land users.

NSW Minister for Agriculture Niall Blair said the policy represents a com-prehensive, state-wide approach that includes a series of clear actions to help address right to farm issues.

The actions in the policy include: Reinforcing rights and responsibili-ties; establishing a baseline and ongo-ing monitoring and evaluation of land use conflicts; strengthening land use planning; ensuring ongoing reviews of relevant environmental planning

instruments (include consideration of options to ensure best land use out-comes and to minimise conflicts); improving education and awareness on management of land use conflicts; and considering potential future legislative options, should additional government intervention be required.

Agricultural land covers almost three quarters of the state, which means it will mix with other uses but we are determined to make sure our farmers can get on with the business of farming and reduce some of the conflicts which may arise, Mr Blair said.

We made a clear commitment to investigate the right to farm issue. This

policy will help develop better plan-ning strategies that are more compat-ible with agricultural activities.

NSW Farmers welcomed the release of the policy which was a result of a pre-election agreement between the NSW Farmers Association and the NSW Lib-eral and National Parties.

NSW Farmers conservation and resource management chair Mitchell Clapham said the policy represented a significant step forward in a long battle in recognising farmers lawful ability to continue producing food and fibre for NSW and global consumers.

Right to farm is a long standing policy of our members and means that

where farming is occurring lawfully, it can continue to occur, Mr Clapham said.

The policy includes measures to address the situation where someone moves into an established farming area and subsequently lodges repeated com-plaints with the local council about the pre-existing farming activities.

In some local council areas, com-plaints are made on a weekly basis, causing stress to farming families and in some instances pushing farmers off the land.

The reality is, farming can be smelly, it can be noisy but we need to recognise most farmers are operating within the

law and producing fresh food and fibre for a growing population.

In particular, the importance of near-to-market fresh produce in peri-urban areas means that we need to embrace these farms and not attempt to harass the farmers until they leave, Mr Clapham said.

Mr Clapham said that right to farm issues would only increase as urban sprawl continued to effectively steril-ise productive agricultural land.

Its not a quick fix but a compre-hensive long-term policy solution and we look forward to continuing to work with the NSW Government on this issue and hope that other states follow suit.

NSW policy tackles right to farm disputes

Grant Wieck inside the familys upgraded dairy. PICTURE: GORDON COLLIE.

GORDON COLLIE

Mining expansion clouds farms future

iDAIRY

For more solutions to make farming ezy... FREE Ph: 1800 124 034 Go online: www.technipharm.com.au

*Conditions apply. All prices exclude GST, Insurance & freight.

ONLINE SPECIALwww.technipharm.com.au

MILK CHECKERHigh SCC? Possible penalties and treatment cost? Test for infections with instant results.Instant indication of infection level, instant results on treated and retested milk before it goes back into the vat. Ezy Quik and instant results

MAGNATIONNothing grows grass like Rainwater.Now you can create RAINLIKE waterWant to know more? Contact us today

TOP TECH HIGH LIFT GATECows hard to get into the dairy parlour for milking? The Top Tech high lift gate is sensitive and does not bulldoze the cows.A reliable management system resulting in less stress for cows and staff.

SPEED SENSITIVE TEATSPRAYERCow teat condition abismal? Cost of treatment and labour for manual spraying high?Invest in an automatic teatspray system.All your cows teatsprayed correctly every milking and a reduction in labour and cost.

ECOBAG Storage of effluent is taking a whole new turn with an ECOBAG Cost effective with limited engineering needed.Almost no smell and no crusting ever PLUS the added benefit of less evaporation of valuable N!

DAIRY HANDLER + GROOMERNZs most popular Hooftrimmer. Lame cows and treatment a real hassle? Cow care and staff safety compromised?Get a professionally designed hoofcare handler. Cows lame feet treated early and staff kept safe.

we make farming ezyPACIFIER

NEW...NEW...Scan the Code using your

smartphone .

Fresh cows on the platform?

A neuro immobiliser relaxes the cow and a relaxed

cow will get used to milking more easily.

Reduced labour, less staff frustration and better overall

animal wellbeing.

NEWWalk through headlock

NEW...NEW...Scan

Normally$1795

NormallyNormallyNormallyNormallyNormallyNormally$1595

ANIMAL CONTROL UNIT

Special$1195 N0RMALLY $1495

*Conditions apply.

PACIFIER

Fresh cows on the platform? A neuro immobiliser relaxes

the cow and a relaxed

staff frustration and better overall animal wellbeing.

$1595$1595$1595

ANIMAL CONTROL

TH1848M 25-8-15

cond

ition

s m

ay a

pply

, all

offe

rs p

lus

GST

and

frei

ght,

all I

P ri

ghts

rese

rved


NEWS // 7

TASMANIAN BASED business woman Jan Cameron was in Canberra last week lobbying to stop the sale of Van Diemens Land (VDL) Company to Chinese entrepreneur Lu Xianfeng.

The current owner, New Zealands New Plymouth District Councils Taranaki Investment Management Ltd, has sold the business comprising 30,000 cows covering 20,000ha over 25 farms on the far north-west coast of Tasmania, to Mr Lus Moon Lake Investments for $280 million, $30 million more than the failed TasFoods bid in which Ms Cameron was an investor.

The sale is subject to a decision of the Foreign Investment Review Board, which was expected at the end of January. At the 11th hour Ms Cameron has launched a new proposal through which she plans to underwrite a locally-owned bid that will match the Moon Lake offer.

According to her office, Ms Cameron wants Treasurer Scott Morrison to step in as he did with the mooted sale of the Kidman properties to the Chinese.

Ms Camerons media spokesperson declined to comment on the progress of the lobbying blitz, referring Dairy News to an article in The Australian on February 2 in which Ms Cameron is quoted as saying:

The Chinese are under so much pressure to feed their 1.2 billion people, theyre acquiring the land they need to control the agricultural production. Theyre doing this for their food security at the cost of our food security... Once the Chinese buy this land, it will never be resold.

The article says Ms Cameron is claiming the Chinese entrepreneur who has agreed to buy the business for $280 million is a front for the Chinese state.

Mr Lu, 45, who purchased an 85% stake in Australias Kresta Blinds in 2014, made his fortune

retailing seafood in China before founding the sunshade manufacturer APLUS. His spokesman told the Australian media Mr Lu was keen to find other opportunities on the island state.

Our plan is to invest in the property; we believe there is massive potential there and so we want to unlock that and we have the capacity to bring in any required capital to do that, the spokesman said.

Circular Head mayor Daryl Quilliam said: The fear that Chinese people will come and work on the farm and take Tasmanian jobs is ludicrous. Im not fearful at all. I think therell be more dairies and more local jobs and theyll look after the land.

Feelings have been running high on the north-west coast.

There is community support for Mr Lus proposal, Mr Quilliam said. He wants to develop tourism; hell spend money developing the dairy property and irrigation systems. Hell leave some bush and fence off the Tasmanian devil habitat area.

Hes met with council and weve seen some of his plans, which are not publicly available. Hes going to keep the present management.

According to the Tasmanian The Mercury newspaper the Circular Head Progress Group has warned potential investors not to get involved with Ms Camerons proposal saying her potential investment in Australias largest dairy farm would not be welcomed.

There would be a community backlash against anyone involving themselves with her bid, said group president John McNab. Banks and other potential investors have now been warned that to disregard the communitys feelings on this may be at their own peril.

Mr Quilliam said:

RICHARD MEREDITH

Cameron push to halt VDL While wed love to see it Australian owned, Jan Camerons track record on environmental issues and at Triabunna has turned many Tasmanians against her.

Ms Cameron, the founder of the Kathmandu outdoor clothing which she sold in 2006, was earlier involved in a joint bid with Wotif founder

Graeme Wood to turn the old Gunns woodchip mill on Tasmanias east coast into a tourist resort, before the two fell out.

Tasmanian Liberal Senator Eric Abetz

weighed in, labelling Ms Camerons campaign as almost xenophobic and a deeply troubling attempt to circumvent proper process.

He warned the cringe-worthy campaign could prejudice the

advantages conferred on Tasmania from free-trade agreements with China, Japan and Korea.

A bevy of independents senators have added their voices to

the nationalistic fervour opposing the sale to Mr Lu, in an attempt to put pressure on the government to intervene.

They include Tasmanian independent senator, Andrew Wilkie, Nick Xenophon (SA), John Madigan (Vic), Jacquie Lambie (Tas) and Glenn Lazarus (Qld). The Greens have referred the proposed VDL sale to a Senate committee.

Tasmanian Greens Senator Peter Whish-Wilson said the committee would seek submissions and details from a range of stakeholders around potential concerns.

As far as I know the senators havent spoken to him (Lu) Mr Quilliam said. They certainly havent spoken to me.

Dairy industry bodies,

Australian Dairy Farmers and Tasmanian Farmers and Graziers said they considered the sale a commercial issue and did not wish to make further comment.

Meanwhile, the legal stoush between TasFoods and the owners of VDL over its failed bid to buy the property has been

resolved.In a statement to

the ASX, TasFoods announced it had reached a settlement agreement with the current owners of VDL, New Zealands New Plymouth District Council. The settlement will see TasFoods get cash compensation of $1.25 million.

Jan Cameron

Other models also available

Contact ALLAN WILKINSON 0400 260 540 | [email protected]

AUSSIE SUPER COMBY

NEW SUPER AUSSIE COMBY DESIGNED SPECIALLY FOR AUSTRALIA CAPABLE OF CARRYING 8 FOOT BALES ACROSS THE FLOOR

Robertson building Feedout Wagons since 1977

Super Comby EX

Side Feed 2000 Wagon

Square Bales Round Bales Silage

Super Comby EX

Super

Our plan is to invest in the property; we believe there is massive potential there and so we want to unlock that and we have the capacity to bring in any required capital to do that.

Moon Lake Investments

DAIRY FARMERS work hard but nothing can prepare you for a bushfire.

Siblings Luke Fitzpatrick and Sharon Hannah (pg 1) spent four days fighting fires last month on the family dairy farm at Waroona, about 100km south of Perth.

We were awake for 40 hours and then had to set our alarm and get up every hour to put out spot fires, Sharon said.

This fire brought us closer together than we ever thought possible.

The 140ha property was one of 20 dairy farms damaged by the devastating Waroona-Harvey bush fire in early Jan-

uary. The Fitzpatricks lost about

5km of fencing and 50ha of pasture, but saved the dairy, livestock and two homes on the property.

Ill be honest mate, its bloody terrifying. I cant say it clearer than that, Luke said.

As the fire was coming my wife was putting out spot fires around the house with water out of the pool in a bucket.

Lukes wife Vicki evacu-ated with the couple s two young children. Luke, Sharon and six friends stayed to fight the blaze.

My worker Leigh, he was awesome, and my sister too, she was amazing, Luke said.

Its emotionally draining because you are on the edge of losing your livelihood and everything youve worked for.

Its really made me realise what a fantastic community we have around here, to have all these people come in to help, its quite overwhelming.

Despite the damage Luke considers himself one of the fortunate farmers.

When things had calmed down around here we went into Yarloop and around that area and it made me feel very fortunate, very lucky that someone was on our side because many farmers and the town of Yarloop were annihi-lated, he said.


8 // NEWS

Farmers face long recovery after WA blazeDAIRY FARMERS burnt out by last months bush fire in in south-west Western Australia are expecting to feel the impact of the damage for at least another 12 months.

The bushfire, which was caused by lightening strike in early January, killed two people and destroyed 140 homes in the town of Yarloop south of Perth.

About 400 farms around the shires of Waroona and Harvey were also dam-aged, including 20 dairy farms.

The damage included burnt fencing and loss of standing dry feed and fodder.

WAFarmers Dairy Council estimates it will cost the affected dairy farmers an average $70,000 per farm to replace the lost fencing, with the worst hit facing damage bills of about $200,000.

Dairy Council president Phil Depi-azzi said most farmers were covered by insurance for fodder losses but not for the fencing damage.

Quite a number of the boys have got insurance but not enough to cover the size of the disaster, they are well and truly under insured as far as their fenc-ing goes, he said.

Most guys are OK on the fodder side of things, most guys have got insurance there and thats covered it, plus weve had good donations of fodder.

But that might get a bit tight later on because we didnt have a great finish to the season and because quite a lot of dry feed has been burnt, those guys are going to need hay to get their animals through to the end of May or whenever we get the rain.

Dairy farmers around the area were also forced to dump an estimated 1 mil-lion litres of milk after power cuts and road closures disrupted processing and milk collection.

Luke and Vicki Fitzpatrick were among the affected farmers, the fire burning paddocks and fencing on their dairy farm about 100km south of Perth.

Despite the significant damage to their property, Mr Fitzpatrick said they were among the more fortunate farm-ers.

I dont know how the whole farm didnt go up to be honest, even now theres black leaves across all the pad-docks, he said.

We didnt lose any animals, but we lost about 50ha of dry feed and about

5km of fencing.Mr Fitzpatrick said he has also had to

manage animal health problems since the fire, due to his180-head herd miss-ing three successive milkings.

My cell count went from 50 to 300 on that first milking and about a week later I had a mastitis outbreak, which Ive now got under control, he said.

I did get five cows with clinical mas-titis and one got black mastitis. So it just shows that dairy cows are right on the limit and a bit of stress and things fall over.

While the repairs to fencing and other farm infrastructure are now underway, Mr Fitzpatrick said it could take a year or more for some of the worst affected farms to repair their pastures.

Theres going to be an ongoing loss because you think about the area thats been burnt, theres no seed on the ground at all, he said.

Its a bit different over here than over in the east, weve got annual pas-tures and we rely on them to drop their seed on the ground so that it all regener-ates with the next autumn rain.

Now thats all gone so its basically a clean slate, its like concrete, theres

nothing there at all.It really depends on the individual

property, but we could be feeling the affects for a year or more.

Mr Depiazzi said WAFarmers is now seeking cash donations to immediately assist farmers.

The issue is trying to raise funds

and dish it our pretty quickly because the guys are obviously spending money now on fencing and they may have a few cash flow issues if they dont get a bit of assistance.

Donations can be made via the WAFarmers web page or by calling (08) 9486 2100.

Luke pictured with his wife Vicki and two children with hay donated by the community after the fi re. PHOTOS: SHARON HANNAH

THIS FIRE BROUGHT US CLOSER TOGETHER THAN WE EVER THOUGHT POSSIBLE

CAMERON WILSON

Tom 0419 851 543 | www.pichonindustries.com | www.grupotatoma.com

MIX AND MUCK Muckrunner has your feed pad machinery covered

Mix with Mixer WagonsMix with Mixer Wagons Muck with

Effluent Spreaders

Muckrunner has your feed pad machinery coveredNEW


NEWS //9

MG nabs Coles cheese from Bega

MURRAYGOUL-BURNhas won the five-year national private label contract to supply Coles brand Australian cheese, replacing Bega Cheese as the supplier.

Bega shares dropped by 11.5% on the back of the news but have since regained some ground.

MG managing director Gary Helou said the deal was part of the cooperatives ongoing push to secure critical mass in the Australian dairy foods market and would underpin and support the companys growth plans.

Ultimately these investments are being made to support our drive

to deliver sustainably higher and more stable farmgate prices and returns over the long term, Mr Helou said.

The deal and plans by MG to invest $145 million in its Cobram cheese plant were welcomed by United Dairyfarmers of Victoria (UDV) president Adam Jenkins who said it should give the industry more certainty.

From a UDV perspec-tive its always encour-aging when a major processer enters into a long-term contract, Mr Jenkins said.

It gives us some sta-bility and its recognition that the product we make is pretty good.

Its good to have one of the major Australian producers thats farmer-

owned take on that challenge.

Mr Jenkins said he didnt see a problem with MG supplying Coles brand products, which are traditionally margin-ally cheaper than brand names.

I think its quite excit-ing for them to be play-ing in this space and have

that long term contract. It bodes well for their suppli-ers and the industry.

Long-term Bega adviser David Williams said the company was better off without the contract.

If it was up to me, I wouldnt have even been bidding to keep this con-tract going because there is just no margin in the

thing for Bega. My attitude would be

get out of there as soon as you can, do your own brand, Mr Williams told Fairfax media.

This no-margin stuff where you are competing against MG, Fonterra and Saputo, is just not going to make any money.

For me, its a nothing

thing, in fact its a bloody good thing because we have now got milk that we can put into branded prod-uct stuff we are doing with Blackmores and other deals.

MG started a 10-year partnership with Coles in 2014 to supply daily pasteurised milk for its private label brands in Vic-

toria and NSW. The cheese deal will

generate about $130 mil-lion in additional sales each year and deliver a stable stream of profits to MG over the life of the contract, according to Mr Helou. What do you think of the deal? Email [email protected]

RICKBAYNE

Will $5.60kg/MS hold?WARRNAMBOOLCHEESEand Butter has told farmers it is maintaining the opening average price of $5.60kg/MS, saying that world dairy prices seem to have bottomed out and market conditions were rela-tively stable although there had been little improve-ment in prices to date.

WCB said the market may not see real recovery in the short term and recommended farmers remain cautious in their planning for the remainder of the year.

Meanwhile, Fonterra Australia milk supply man-ager Matt Watt has said it has been conducting its January review and will communicate the outcome to our suppliers.

As we flagged in the spring, the price outlook this season is not strong and we are recommending sup-pliers budget at current farmgate price.

Mr Watt said both domestic and international factors are currently being considered.

The global dairy market has been challenged for over 12 months now, with weaker Asian demand and higher European production off the back of a strong northern hemisphere season contributing to a signif-icant supply-demand imbalance, he said.

UDV president Adam Jenkins said $5.60kg/MS was in line with market expectations though still short of the benchmark $6.05kg/MS farmers were hoping for.

We were hoping for a step-up but thats not look-ing likely, he said.

The market is still very volatile and we under-stand that, but its going to be an interesting autumn in certain areas where its so dry that the cost of pro-duction of milk will be quite high and we hope they understand that.

Mr Jenkins reiterated his call for early informa-tion to help planning.

If it is going to be $5.60 then I applaud the com-panies for saying where it is. Thats a good early signal. At least you know where you are and if there are no step-ups we can look to the next lot of prices in the New Year.

When they get the indications its important that they pass them on as soon as possible so we can all plan forward together.

Cropmark Seeds Australia Pty LtdFreephone: 1800 889 039

Freefax: 1800 889 037

SONIK IS AVAILABLE FROM YOURLOCAL SEED MERCHANT OR FARM

MERCHANDISE OUTLET

www.cropmark.com.au

For further information on Sonik, contact our regional agronomists:

North & East Victoria, NSW: Adam Sheedy 0428 132 096

Western Districts, SA, Tasmania: Bruce Hume 0427 607 375

Sonik fast, reliable winter feed

Sonik rapid establishment and strong winter activityTake the worry out of winter feeding.Sonik is the winter feed champion, with rapid establishmentand strong growth rates over autumn, winter and springproviding the feed platform you need for greatlivestock performance.

Sonik is ideal for over-sowing into run-out or damagedpastures, rejuvenating paddocks or for full cultivationas short term (1-2 year) specialist pastures.

Sonik has excellent tiller density for higher yield,persistence and better ground cover.

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

Trial Data


10 // IDW 2016

Fierce and fearless Bette inspires women in dairyEIGHTY-ONE YEAR old Bette Hall from Penola in South Australia has some sound advice for women in the dairy indus-try: Dont let the nay-sayers get to you. Stay positive.

Speaking to the full house at the inaugural Power of Women in Dairy-ing dinner held at Inter-national Dairy Week in Tatura on January 19, at which an award was named in her honour, Bette shared memories of her 57-year-long career in the dairy industry including overseeing the familys highly successful Palma Holstein stud.

She recalled one day a man wrote derogatory comments in the cata-logue about her entire sale offering, particularly her best cows.

I looked at what he said and I thought, that says more about you than me really.

Bette is a passionate breeder, astute operator and true lover of Hol-steins.

At first we were just a commercial operation, but I suggested to my husband Colin that we could improve the value of our herd by registering, which he agreed to on one condition: that he didnt have to do any paperwork.

She said she took the time to read everything that was happening in the breed, particularly the Semex Guide to Balanced

Breeding which I thought was excellent.

She always mated a sire to suit each cows unique traits, which she said worked very well most of the time.

I love working with cows on a day-by-day basis. I loved buying cattle and if I thought some-thing would suit our herd, Id buy it.

Bette said she and hus-band Colin managed a successful operation in what is not ideal dairy country.

We average 620mm a year mainly in the winter months, and five months of the year is without rain, she said. But we were able to cut good quantities of silage and hay and always took the time to analyse all the feed and provide for any deficiencies in the grain ration.

When Colin died in 1999, Bette managed the farm for another 12 years before deciding to sell her beloved herd in 2011.

The property is cur-rently leased as a beef operation.

In one of her many

canny business decisions, Bette said she waited for the right time to sell her share allocation in Warrnambool Cheese and Butter (WCB).

I made my most money when Saputo bought them out, she said. When they got to $9.20, thats when I sold.

Bette told Dairy News she thought dairying had got harder over the years.

I think its very sad that dairy farmers have to work such incredibly long hours for their income, and I think their workload now is quite unrealistic,

she said.The price that we

get for our product is always too low to pay for the incredible expenses involved in dairying, including the cost of water.

The prices havent kept pace with the changes in the industry.

Theres always some reason why we get less for our product.

Paying tribute to Bette on the night, event organ-iser and Torrumbarry dairy farmer Jade Sieben said Bette was an inspira-tion.

I dont think we had an easier decision than to name this award after you, Jade said.

You are a great cow woman, a great business women, a great mother and have a great sense of humour. Just what we all aspire to be.

Winner of the Bette Hall Power of Women in Dairy Excellence Award was champion Jersey breeder and Murray Goul-burn supplier Lyn Boyd from Brunchilli Farming Trust, Finley, in NSW.

Speaking to Dairy News after claiming another vic-

tory at IDW this time for Brunchilli Excitation Belle who took out the Inter-breed Junior Champion Award Lyn described her love of cows like a dis-ease.

Ive always loved beautiful cows and we l ove to show, she said.

In 2009, they won all of the in-milk classes at IDW, which she said was the most wonderful show of our lives.

IDW 2016 still turned out to be a good year, with the her daughter-in-law Brookes family taking out the supreme champion

cow, with Shirlinn Icy Eve, in addition to the junior champion win for Brun-chilli. (See more p.22)

The combination of Shirlinn and Brunchilli is pretty good, Lyn said.Lyn said accepting the Bette Hall was a great honour: I can die now.In addition to the award presentation and guest speakers including local finance guru Tracey Sofra - the event raised funds for a new scholarship which will allow a young woman to attend the World Dairy Expo in Wisconsin, USA.

MADELEINE BRENNAN

Lyn Boyd, Bette Hall and Jade Sieben pictured at the IDW Power of Women in Dairying dinner.

A Packo milk tank and system to suit all herd sizes, pick up schedules, and entry temperatures

Simple one button operation to activate either cooling or wash modes

Packos Patented fully automatic Rotojet cleaning system, ensures every square inch of the inside vessel is clean and hygienic.

The choice is yours- Direct expansion or a glycol chilling tank

Pre, instant cooling systems available

New & Secondhand systems / Wash system upgrades for any make-model tank

Dairy-Tech Refrigeration

Call Dairy-Tech Refrigeration today for a no hassle quotation

Phone 03 56623277 email [email protected] Web www.dairytechrefrig.com.au

The dedicated milk cooling specialistRegistered Packo Dealer Australia


IDW 2016 // 11

Jenny Wilson, Melva Tyson and Sarah Thompson, Murray Dairy at the Power of Women in Dairying dinner.

Kerry McQualter, NAB Agribusiness; Rose Philipzen, Moxey Farms; Carlie Osiurak, NAB Agribusiness.

Joclyn Mackie, Jade Sieben and Robyn Barber.

Event organiser Jade Sieben; Kerry McQualter, NAB Agribusiness; Bette Hall, South Australia.

Kirra Beattie, Kilbarchan Farm, Cobram; Melly Ann Salico, Kilbarchan Farm.

Cropmark Seeds Australia Pty LtdFreephone: 1800 889 039

Freefax: 1800 889 037

ZOOMTM

IS AVAILABLE FROM YOURLOCAL SEED MERCHANT OR FARM

MERCHANDISE OUTLET

www.cropmark.com.au

ZoomTM the kingof annual ryegrasses

ZoomTM is a specialist winter feed. An ideal break cropbetween maize and other crops, it is very quick to establishand shows exceptional autumn/winter growth and rapidre-growth. ZoomTM offers the advantages of excellentpalatability and high metabolisable energy content.

ZoomTM can provide multiple grazings over autumnand winter before being shut up for high qualitysilage in the spring.

TrialData

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

For further information on ZoomTM, contact our regional agronomists:




12 // WORLD

EUROPEAN DAIRY cooperative Arla Foods is receiving more milk from farmers than ever before.

The co-op also expects its 12,700 farmer owners to ramp up milk production in the coming years.

Unveiling its 2020 strategy last month, Arla Foods says the extra milk provides the business with opportunities for global growth to create value for its owners.

Since 2007 Arlas milk volume has grown from 8 billion kgMS to 14 billion kgMS thanks to mergers and (since April 2015), through organic growth in the milk production of Arlas farmer owners as EU milk quotas no longer exist. It is anticipated that Arlas farmers will grow their milk production by another 2.5 billion kgMS by 2020, giving Arla more

growth opportunities than ever before.

Its new strategy sets out to grow its business in eight global dairy categories and six market regions around the world, as the company moves towards 2020 as one effective and unified.

Arla Foods chief executive Peder Tuborgh says while it is launching a new strategy, there is no radical change of direction for Arla.

Over the past years we have prepared for this moment by expanding our size and our competencies. In Strategy 2020 we will focus even more on organic growth and growing our brands through innovation that focuses on what consumers and customers want and need. This will help us create the most profitable growth with our

farmer owners milk, Mr Tuborgh said.

Aria says consumers around the world are looking for ways to make their everyday lives healthier. Arla has now identified eight product categories that will be the central focus for the companys efforts to shape the dairy market by offering new products with natural ingredients, great taste and good nutrients that make it easier to live a healthy life.

The eight prioritised

product categories and Arlas aims are:

Butter and spreads: Be global leader in butter and spreads with world class products made from natural ingredients

Spreadable cheese: Lead in cream cheese made from natural ingredients and high quality processed cream cheese

Speciality cheese: Be leading player in speciality cheese with creatively crafted products and concepts

Milk-based beverages: Shape market for nutritious milk-based beverages made from natural ingredients for people on the go

Yoghurt: Innovate to build a strong natural goodness position for yogurts

Milk and powder: Lead and shape the milk and powder market with nutritious value-added and cost-competitive products

Mozzarella: Build global mozzarella position with high quality and cost-competitive products

Ingredients: Be the global leader in value-added whey.The global dairy

industry has developed by a speed seldom seen before, with millions of consumers changing their daily habits and preferences, he said.

We have analysed consumer needs and trends across dairy categories worldwide and have matched this with our

own biggest strengths. This has led us to pursue eight specific categories where we feel Arla can grow a leading position globally or regionally. Our strategic innovation and best resources will be poured into these categories.

Arla will pursue growth in these eight categories primarily through its three global brands of Arla, Lurpak and Castello.

It will also focus on six regions.

We have identified the markets in which Arla has the biggest potential to grow a long-term profitable business for our farmer owners. We are stepping up our efforts in the United States and Nigeria, while continuing to build on our

positions in Europe, the Middle East and China. We also remain hopeful that Russia will re-open for business, at which point it will still be a very attractive market for Arla, Mr Tuborgh said.

We are not pulling out of any markets that are not mentioned, but we will focus our innovation, investments and competences on those lead markets. Over the coming five years we expect about half of our growth to come from outside the EU as we grow market shares while the other half will come from within the EU as we grow in key categories and add value through innovation, Mr Tuborgh said.

More milk fuels co-ops growth

Arla Foods is looking to boost growth in six market regions.

Peder Tuborgh

RF Forage WagonCaters to all feed types, from grass to maize to whole crop cereal - long and precision cut, and both round or square bales. 9 - 25m3 capacity offers a size to suit any situation Extra large side delivery opening reduces blockages Simple, efficient feed rate control ensures optimum use of feed Remotely operated electronic scales takes the guess work out of decisions Proven strong and reliable design, providing operator peace of mind

Weve combined robust engineering and world class technology to enable you to precisely measure and deliver feed - day in, day out and grow the value of your herd in the long term.

Bale FeederThe thoughtful design and features of our Bale Feeders will ensure that you can easily feed out thousands of bales without a hitch. Trailing two-bale & one-bale linkage models cater to any sized enterprise Unique chain & feed bar design for optimum feeding out control Efficient and gentle loading system reduces time and extends machine life Compact design holds bales firm while feeding out and provides great manoeuvrability

MAKE BETTER USE OF YOUR FEED

TEL +61 3 9369 6548

FREE 1800 127 030

EMAIL [email protected]

WEB www.giltrapag.com.au Celebrating more than 35 years working with Australian Farmers


WORLD //13

NEWZEALANDdairy farmers will be forced to make more hard decisions in the season ahead, as the countrys processors slash their forecast farmgate milk prices to well below the cost of production.

On January 28, Fonterra reduced its forecast farmgate milk price for the 2015/16 season from NZ$4.60/kgMS to NZ$4.15/kgMS about $1.25 less than the average break even cost of production of NZ$5.40.

The January 28 announcement came as Westland Milk Products and Open Country Dairy also reduced their payout forecasts.

DairyNZ said the changes would mean NZ $67,000 less in cash revenue for the average farm producing 150,000kgMS or NZ$800 million across the sector.

Fonterra chairman John Wilson said global economic conditions continued to be challenging and were impacting demand for a range of commodities, including dairy.

Key factors driving dairy demand are declining international oil prices which have weakened the spending power of countries reliant on oil revenues, economic uncertainty in developing economies and a slow recovery of dairy imports into China, Mr Wilson said.

In addition, the Russian ban on European Union dairy imports continues to push more product on to the world market.

Mr Wilson said there was still an imbalance between supply and demand which continued to put pressure on global milk prices.

Since last September, prices on GlobalDairyTrade for whole milk powder (WMP) have fallen 12%, and skim milk powder (SMP) prices are down 8%.

Although New Zealand farmers have responded to lower global prices by reducing supply, that has

yet to happen in other regions, including Europe, where milk volumes have continued to increase, he said.

Chief executive Theo Spierings said while global demand remained sluggish, Fonterra supported the general view that dairy prices will improve later this calendar year.

However, the time frame for supply and demand rebalancing has moved further out and largely depends on a downward correction in EU supply in response to the lower global prices, Mr Spierings said. These prices are clearly unsustainably low for farmers globally and cannot continue in the longer term.

He said despite the current challenges, the co-op had confidence long-term international dairy demand will continue its expansion due to a growing world population, increasing middle classes in Asia, urbanisation and favourable demographics.

Mr Wilson acknowledged the reduction in the forecast farmgate milk price would be very tough on our farmers.

As we confirm the co-ops performance for the first half of the financial year, we will look at the best way to help our farmers cash flows, underpinned by the expected improvement in dividend returns and the financial strength of the cooperative.

Milk production across NZ to the end of December was down 2.6%, with some regions dropping production by up to 9%.

Fonterra Shareholders Council chairman Duncan Coull said the drop was a sobering blow.

Looking forward, our farmers will be expecting our cooperative model, which sees shareholders benefit from milk price and the value-add side of the business, to deliver for them in terms of the total available for payout.

Farmgate milk price cutsforce tough decisions in NZ

In the interim, he encouraged farmers to seek guidance and support on how to best navigate through the tough times.

DairyNZ chief

executive Tim Mackle said tough decisions were being made.

Farmers will be working extremely hard in their businesses and

that can affect health and wellbeing. Many will have to pick up extra work on their farms. Some will be looking for off-farm income opportunities.

They will be looking at all their options and banks will be joining in those conversations, he said.

Mr Mackle said although most farmers

had already done all they can to reduce costs, DairyNZ would be working with farmers to focus on tight and skilled pasture management.

Cropmark Seeds Australia Pty LtdFreephone: 1800 889 039Freefax: 1800 889 037

MATRIX IS AVAILABLE FROM YOURLOCAL SEED MERCHANT OR FARM

MERCHANDISE OUTLET

www.cropmark.com.au

TrialData

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

For further information on Matrix, contact our regional agronomists:



The benchmarkfor production and performance

Matrix Enhanced perennial ryegrass truly is the benchmark for production and performance onVictorian dairy farms. It is thoroughly proven, reliable, persistent and high performing.

Many farmers would argue that there is simply no betterperennial ryegrass. And the cows wont argue with that either.

They find it very palatable and eat it readily.

Farmers tell us the milk production lifts when the cowsare grazing Matrix.

Matrix is suitable for all pasture renovation, includingover-sowing.

Proven, reliable, persistent and high performing.


14 // AROUND THE REGIONS

Tasmania

THE TASMANIAN Farmers and Graziers Associa-tion is seeking information from any farmers affected by the recent bushfires.

Please let TFGA know if you, your neighbour, or your community has had bushfire damage, includ-ing: Infrastructure (fences, buildings), pasture and crop loss, livestock loss, utility issues (power out-ages, water).

The TFGA needs to have an idea of what the damage is and the cost to each business. The informa-tion will be collated to demonstrate to Government the extent of the bushfire damage to the sector. Con-tact TFGA Reception on (03) 6332180 or via [email protected] .

This image (right) supplied by Dairy Tas is from the Hofings farm at Mawbanna, in Tasmanias cen-tral NW region. The Hofings kept a close eye on a fire as it got close to their back fence of the top paddock with young stock.

Rain eased the fire threat in some areas of Tas-mania, but fire authorities have battled more than 70 fires in January, including the states World Her-itage Wilderness areas.

Western Victoria

WOOLSTHORPE DAIRY farmer and Victorian Liberal MP for the South-West Coast Roma Britnell (pic-tured fourth from right), had a busy Australia Day, including attending citizenship ceremonies. I was very pleased to officially welcome our newest citizens to Australia and to Moyne, from such a diverse range of countries, six of whom are working in the dairy industry. Go the dairy indus-try South West Coast!, Mrs Britnell said on her Facebook page.

Murray Dairy

A SERIES of Shed Days across the region will provide an opportunity for farmers to share information and get an informal overview of what decisions host farmers have made to deal with the dry season so far and their plans for autumn with water, bought-in feed and pasture man-agement.

The Department of Economic Development, Jobs, Transport, Tourism and Resources (DEDJTR) will cover the risks of establishing pastures and the lessons learnt from previous dry seasons. Sessions are being held in Naneella, Finley, Calivil, Stanhope, Waaia, Katamatite, Bamawm, Kyambram and Tongala. Visit www.murray-dairy.com.au or phone (03)5833 5312 or [email protected]

Tips in dealing with the dry

A ected by res?

New face of dairy in Oz

Grinning winnersPHILIP AND Edie Bradbury from Harston near Tatura, Victoria are the winners of the classic oval stockfeeder prize delivered on behalf of Waste-Not Stockfeeders and Dairy News Australia at last months International Dairy Week.

The couple (pictured below), who are retired dairy farmers but still run some Angus cattle, said the feeder will be very useful as the old hay ring they were using was wasteful and unsuitable for big square bales.

Mr Bradbury said it was one of the few things we have ever won and were delighted with the opportunity.

He said their granddaughters, from Brunswick in Mel-bourne, had a hand in the prize, helping the couple get the required signatures at the field day exhibits.

www.wastenot.com.au

www.logancontracting.com.au

AGRICULTURAL CONTRACTINGTHAT YOU CAN RELY ON

YOU CAN DEPEND ON US

HAYMAKING AND SILAGEMower conditioningRound and large square baling

Rotary rakingTubeline wrappingPit silage

SOWING AND CULTIVATION

Two large tankers easy on your tracks and paddocksLarge capacity pumps and agitators for superior mixing

EFFLUENT REMOVAL AND SPREADING

Mouldboard ploughingPower harrowingDirect drillingPasture and broadacre sowing

DiscingDeep rippingRock removalSpreadingSpraying

Let us take the pressure off you

Contact us for a no obligation free quote:Shane Hunter 0429 359 128 or Glenn Logan 0418 359 129Email us on: [email protected]

Logan Contracting, 364 Timboon Terang Road Ecklin 3265


AROUND THE REGIONS // 15

GippslandIts showtime!THE ANNUAL Korumburra Show will be held Febru-ary 13-14 at Korumburra Showgrounds, South Gippsland Highway. The show includes an animal nursery, animal events, equine events, exhibitions in the pavilion, ameni-ties complex displays, Miss Showgirl, sideshows, vintage car display, beaut utes, working horse and tractor rally, and a flyball dog competition.

Night time events include the South Gippsland Busk-ers Festival, fireworks display and sideshows.

For more email [email protected] The Foster and District Show will be held on Saturday,

February 27 at the Foster Showgrounds, Station Rd, Foster, featuring horses, cattle, alpacas, horticulture, food, art and craft exhibits, free family entertainment, show bags and rides, sheaf tossing, dog high jump and more.

Visit fostershow.wordpress.com or email [email protected] for more details.

New South Wales

DAIRY NSW will host two webinars about hiring and retaining staff. On February 10: Attracting staff: Practical tips to recruit the right people to your business. March 7: Interviewing and selecting staff .

Contact Cam Smith at Dairy NSW for more details or visit www.dairynsw.com.au to register. The sessions will go for one hour and there is no additional charge.

Get advice on hiring sta

LION DAIRY and Drinks issued a recall of a number of products manufactured on Saturday, January 23 at its Bentley dairy site in Western Australia as a pre-cautionary measure.

The company said the recall followed routine internal testing which showed a microbial count in excess of their quality standards.

No consumer complaints had been made regarding any of the products at the time the recall was issued (on January 26). Lion said it has undertaken addi-tional testing on all retention samples for these batches, and to date testing has found no evidence of any contaminant known to cause illness. Lion did not pro-vide further comment on the nature of the contamination.

Consumer inquiries: 1800 677 852

Western AustraliaProducts recalled

THE QUEENSLAND Farmers Federation and the Australian Renewable Energy Agency (ARENA) will present a Farming Energy Technology Forum on Febru-ary 16 at the University of Queensland Gatton campus.

The forum will explore the use of a range of renew-able energy technologies for process heat and biogas applications on farms and for irrigation systems. Regis-tration is free. Visit www.eventbrite.com.au/e/queensland-farm-energy-technology-forum-tickets-20858176367

Sub TropicalSave money on energy costs

DAIRYSA WILL host a series of presentations and workshops targeting the states niche dairy processors followed by dinner and a guest speaker.

The forum will help attendees gain insights into how cooperating and collaborating can build a business with-out compromising competitive edge.

What do consumers want? Are you export ready? How do good businesses build resilience?

These and other sessions will be covered at the forum on Friday February 26 at the Adelaide Hills Convention Centre in Hahndorf.

To register visit http://dairysa-niche-processor-forum.eventbrite.com.au

South Australia

Event targets niche processors

www.dairynewsaustralia.com.au

CHECK OUT THE LATEST NEWSAND INFORMATION AT

Dai ry News aUsTraLia february 2016

16 // OPINION

EDITORIAL

mILkIng IT...

RumInATIng

A mooving taleA LIFE-SIZED fibreglass cow was stolen from a primary school at Elizabeth Vale, South Australia, after police received a tip-off from a member of the public who had spotted the bovine artwork at a Hillbank address and rang Crime Stoppers. About 9pm on Sunday, December

27, Elizabeth Police attended the home and located the black, green and white cow in the rear yard. The fibreglass cow was stolen from the school in early December. The news was met with a flurry of bad puns on the SA Police Facebook Page such as: Udderly despicable, A mooving tale, You are milking this story etc etc

Here comes Spider MilkFROM camels to cacti its clear there is no end to the weird and wonderful things that can be milked. This time, its Australian Tarantulas, the big hairy spiders that nightmares are made of. University of Queensland researchers are milking the furry

arachnids in the name of research and the hope the venom might provide useful for a range of medical and biological purposes. A light electric charge is applied to the creatures 1-1.5cm fangs, causing the muscles to contract and discharge venom into a container. Researchers are regularly bitten in the name of science. It makes the odd kick from a cow seem positively pleasant

Humans next?THE worlds biggest cloning factory being built in Tianjin, China, will begin cloning cattle in six months. It will have technology sufficiently advanced to replicate humans, the head of the company, Xu Xiaochun, told AFP recently. It aims to clone a million cows a

year by 2020 to help meet the rising demand for beef in China, he says. The scientist and entrepreneur says cattle are only the beginning: they plan to clone thoroughbred racehorses, pet dogs and police dogs for searching and sniffing.

Wisdom of the eldersYOUVE got to hand it to the older generation for never being afraid of telling it like it is. When Dairy News overheard this comment from a grandmother to her grandsons as they looked in the sheds at Internation-al Dairy Week last month, we had to have a chuckle:

You cant be a farmer and not get sh*t on your hands. Trust me. Presumably the bemused children were not from a farm themselves

AdvertisingChris Dingle 0417.735.001

[email protected]

EditorMadeleine Brennan 03.9442.4514 or 0402.715.577

[email protected]

Publisher Brian Hight

Production Dave Ferguson Becky Williams

SubEditor Pamela Tipa

Publishedby RNG Publishing Ltd

Printedby Newsprinters Pty Ltd

Dairy News Australia is published by RNG

Publishing Limited. All editorial copy and

photographs are subject to copyright and

may not be reproduced without prior written

permission of the publisher. Opinions or

comments expressed within this publication are

not necessarily those of the staff, management

or directors of RNG Publishing Limited. WWW.DAIRYNEWSAUSTRALIA.COM.AU

HeadOfficeTop Floor, 29 Northcroft Street, Auckland 0622, New Zealand

Phone+64.9.307 0399 Fax+64.9.307 0122

PostaladdressPO Box 331100, Takapuna,Auckland 0740, New Zealand

WE LIVE in an age of scrutiny. From sport to politics to work and home life, it seems almost every news story relates to the increased exposure of formerly private realms to the public sphere in this age of smart phones, You Tube and electronic finan-cial transfers.

Just this summer alone weve seen phone and bank records uncovered to pursue allegations of match fixing in tennis. Scan-dals in cricket, soccer and Australian Rules have been similarly exposed.

Technology, which initially seems like a benign technology designed to improve efficiency of communication, is actually driving social change by making it easy for anyone to reveal prac-tices they believe unethical and which ultimately damage a sec-tors reputation regardless of whether the majority are doing the right thing.

Speaking at the launch of a new livestock transport emergency hotline last month Australian Livestock and Rural Transporters Association vice-president Graeme Hoare highlighted the cur-rent landscape:

The Australian community is increasingly conscious about animal welfare issues. When incidents occur on the roadside they are highly visible and just about everyone out there has a camera in their pocket, Mr Hoare said.

Yes, it may be the right thing to improve the ability of the transport sector to respond to livestock emergencies but was it the threat of public scrutiny that was the real impetus for change?

Late last year, New Zealands dairy industry was shocked to have distressing undercover video of contractors and abattoir workers cruelly mishandling and killing bobby calves.

It was not the first time video footage had been used by animal welfare activists to reveal malpractice in the farming sector.

This time, however, the industry was well prepared in terms of the procedures and processes it had in place around animal wel-fare to deal with crisis.

It also tackled the issue head on, with members from DairyNZ and the Federated Farmers meeting with members of SAFE to discuss the issues.

Without the footage, there may have been no meeting at all. The Australian dairy industry is similarly better prepared, with its Animal Welfare Strategy and calf induction phase out just two examples of its response to community expectations on the issue.

Technology is driving change. It is also shaping the narrative. The ship has sailed on whether we want to be scrutinised. The challenge is to ensure all our farms and factories can accept

that scrutiny with open arms and therefore shape how our story is told.

We are being watched


OPINION // 17

DURING THE recent Coles super-market vs Campbell Arnotts marketing dispute around the product Tim Tams, Coles managing director John Durkan made some interesting comments in relation to companies setting prices for their product.

Mr Durkan stated there was no jus-tification for Campbell Arnotts to lift the pricing of some of their biscuit lines by 10%.

In the free market of Friedman eco-nomics, the very same free markets our major political parties espouse to, a company has every right to set the price for their product.

Within this economic model it is up to the consumer decide whether or not they will buy that product at that price and competitive markets sort it out without interference.

In theory that is how a free competi-

tive market should work. Its an interesting comparison then

considering Mr Durkans reservations of the product supply sectors right to increase prices.

Lets look at the numbers across some sectors and the increases in prices and income they have seen increase since around say the year 1992:

0% - No increase in milk prices from the regulated price of 1992 in Brisbane to the price of supermarket brands today ($1).

+20% - Farmgate price of milk for dairy farmers in southern Queensland going into bottles this has increased by 20% or about 10 cents per litre since 1992. Out of the 9-10c extra, apart from the increase in input costs, there has been a direct cost of 3-5c due to the increased demands by processors and retailers for longer shelf life milk. This has resulted in more cows culled for mastitis and larger replacement num-bers needed.

+79% - Consumer Price Index (CPI) increase since 1992.

+80-90% - Increase in Murray Goulburn average export milk price in southern Australia (mainly Victo-ria and Tasmania). Contrary to claims made by Coles executives that all milk price movements are directly linked to the export price, Murray Goulburn has

seen an average increase of about 3.5% per annum compared with 0.7% in Qld, with domestic and export prices more often moving in opposite directions.

+153% - Increase in the average full time wage in Australia from $30,432 to $76,960 since 1992

+188% - Increase in pay of Mem-

bers of House of Representatives and Senators - our elected pollies in Can-berra have fared a little better than the average wage with their base salaries increasing from $67,715 to $195,130, with extra allowances on top of that.

+700% This is an estimated increase of executive packages in Aus-tralia. The figure however is difficult to quantify give the lack of transparency in executive salary reporting. A Sydney Morning Herald report stated that the average CEO package vs the average wage was 20 times in 1985, peaked at 94 times in 2007 and at 67 times in 2013. The average wage in 1985 was $19,760 so with the multiplier still 67 times that works out at 968%. According to media reports, former Coles boss Ian McLeod in 2013 had a base salary of $1.9million, but with bonuses received $19 million at the end of the year, setting a record for Australia.

It is clear who is the main benefi-ciary of this market domination, par-ticularly when you consider the recent long term contracts to a selected group

of dairy co-ops that supply the super-market branded milk.

Where does the long term milk pric-ing go with the 10 year contracts that are currently locking $1 milk in place?

I doubt that even the most passion-ate supplier shareholders of the large southern co-op will be happy for their milk to be sold, as the contract wears on, for 80c/litre or less in 2014 value?

It is commonly believed that the original deal was signed to allow their branded cheese back on Coles shelves after it had been largely removed several years earlier.

But the more recent situation of the supermarkets store brand cheese taking sales by selling for 30-40% less than theirs may have dampened some of the enthusiasm.

One thing is for sure; it is unlikely to propel farmers incomes at all, let alone by the national average.

One truth remains however and that is that the supermarket CEOs and exec-utives will continue to laugh all the way to the bank.

..the supermarket CEOs will continue to laugh all the way to the bank.

Winners and losers of dairy industry is all in the numbersROSS MCINNESvice-president, Queensland Dairyfarmers Organisation

FOR many months now there has been so much huffi ng and puffi ng from the ADF, UDV and some high profi le people about the benefi ts of the China Free Trade Agreement for dairy farmers.

This will prove to be like other free trade

agreements (FTAs), a big con job that will deliver not one cent extra to farmers.

So why do these people keep fl ogging a dead horse and at the same time do nothing about things like the corrupt payment system we have for our milk?

On a shopping docket from our local IGA store, two items caught my eye: Item one was skim milk powder (SMP) which cost $6990 per tonne equivalent. For this, I as a dairy farmer received $8360 per tonne. Forget about the processors cost

of collection, processing and distributing plus retail margin the loss is $1370. It is also well known that all our warehouses are full of SMP.Item two was butter, which cost $12,360 per tonne. For this I received $3340 per

tonne, a difference of $9020.

The consumer is prepared to pay 80% more for butter over SMP, yet processors pay farmers 250% more for SMP than butter.

As all processors pay within a cent or two of this

percentage, should we also be looking at collusion?

Under this system, the average Jersey farmer will be losing $700 per week or more.

In the December issue of Dairy News (page 4) the new ADF president Simone

Jolliffe said she was ready to represent. My question is: Who? Collusion and corruption, or truth and future?The time has come for a full government enquiry into the dairy industry. -Alec McKenzie, Timboon, VIC

A fair payment system is more important than free trade agreements

LETTERLETTER

For a special gift for a special person...How about a personal caricature

EMAIL Malcom Evans [email protected] Hayfeeders [email protected]

www.baleupfeeders.comPhone: 0458 590 766 Fax 03 5859 1137

New from Bale Up HayfeedersOur modular feed pad model, the next level in feed pads, comes in 4 metre units. Buy 2 bookend units and add as many open ended centre units as you need. No more feed on the ground and extremely low waste, and like all our feeders comes with our rolled corrugated floor.

Calf feeder $1980 inc gst

New from Bale Up HayfeedersOur modular feed pad model, the next level in feed

extremely low waste, and like all our feeders comes extremely low waste, and like all our feeders comes Standard cow feeder

$2200 inc gst

Bale-Up Hayfeeders

with our rolled corrugated floor.

$2600 incl GST per unit

Dai ry News aUsTraLia february 2016

18 // markets

tHe world economy has veered into some difficult and dangerous waters, suggesting 2016 will be a long hard year of slow recovery in prices in global food commodity markets including dairy.

The perfect storm has struck. Major food and oilseed commodity prices are at low points in the cycle with inventories high. Its not just food of course, oil and other major metal commodities are at prices not seen for about a decade.

On the demand side, China, the largest growth economy in the world, has the brakes on.

This year started with little change in OPECs production stance, and little hope for collaboration given new tensions between Saudi Arabia and Iran.

The outlook suggests a sustained petroleum glut, unless there is a strong surge in demand which Ill come back to later.

This is playing out like a game theory case study. The OPEC cartel started a price war to dominate the global energy market in the third quarter of 2014, signalling their intent to increase production and drive out competing alternate low-cost technologies (such as shale oil) and renewable production using corn and soybeans.

So much for the planet! This is about short-term painful price competition to knock out rivals, and ensure a finite energy resource remains the dominant choice for industry and consumers.

Prices have been driven to levels not seen since 2004, well below

the supposed break-even costs of production of crude oil for most major exporters.

Historically, there has long been a close correlation between crude oil prices and the prices for major food commodities, including dairy ingredients and feed grains.

On the demand side it makes sense weak economic activity reduces demand for fuel and can weaken some food markets.

While the trends lines move uncannily together, it doesnt mean oil is behind the changes in dairy and grain prices.

Dairy prices have slumped low due to excessive supply from abundant grass growth, low feed grain prices and the loss of a couple of big buyers from the global market.

Grains and oilseeds markets are well-supplied due to good weather in most major regions our enemy El Nino tends to be kind to many Northern

Hemisphere producers.Low oil prices can be a friend to dairy

producers. Cheap fuel can lower the costs of

milk production, reducing equipment and energy costs as well as the cost of fertiliser.

Low crude oil prices also make biofuel production less attractive, potentially ensuring more feed supplies which helps support margins, even when dairy prices fall. This has certainly been the case for Northern Hemisphere suppliers.

However, low oil prices have mixed effects on dairy markets.

In the developed EU and US economies, cheap fuel improves household budgets, freeing up a bit more cash for dining out.

Weve already seen US food service grow strongly in 2015 soaking up more cheese and milk. The question is whether it can keep that growth rate surging in 2016.

Lower fuel costs can improve economic prospects for countries dependent on fuel imports, lowering overall costs of manufacturing and transport, including shipping and improving the affordability of dairy imports.

On the other hand, there are risks for dairy demand, as low oil prices can harm the economies in some major oil-producing regions which are also large dairy importers, such as those in the Middle East, North Africa (together known as MENA), Russia and Venezuela.

Low oil prices have combined with sanctions to weaken the Russian economy, and have made a bad financial situation far worse in Venezuela.

The effect in these dairy markets will be uneven and hard to predict, as the dependence on oil, production costs, government food buying activities and the financial states of oil economies vary significantly.

But the developing world including MENA has a number of large dairy buyers that are also oil importers whose economies should benefit from lower fuel and energy costs.

Weak oil prices meanwhile also ensure low prices for palm oil, used widely as a competitor and substitute for dairy ingredients.

So on balance what does the future hold for oil prices and the global economy?

One important but odd indicator of economic conditions is the Baltic Dry Index of shipping costs.

The index has long been a forward indicator of the fortunes of the world economy, and is now the lowest since its inception in 1985.

This largely reflects the slowing of trade in and out of China as it transitions to a consumer-led economy from a trade-driven one.

It also reflects the build-up of capacity with the promise that China (and its hunger for two-way trade) would just keep growing.

The index suggests the demand side of the oil market will be sluggish for some time.

This points to a bigger worry, that the world economy will be adversely affected by the slowing of China more than the economists at the IMF and World Bank are currently suggesting.

Metal commodity prices are low largely because construction activity and industrial output in China have stalled.

Low metal commodity markets can harm several developed and developing economies, weakening

dairy news australia february 2016

Documents