issue 19: october 2011

Krone improves efficiencyPage 33

Succession planning: Avoiding the pitfalls Pages 12-13

WANTEDApply to the Australian dairy industry Pages 6-7

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SA Business of the YearPage 25

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DAIRY NEWS AUSTRALIA // octoBer 2011 3

NEWSThis issueISSUE 19: octoBer 2011

Gippsland farmer cam Delbridge continues to save money with his Muck runner.

30

the charles family won the tasmanian Dairy Business of the Year award.

23

Gippsland farmer Steve ronalds has cut his annual power bill by $3200 with his Green cleaning machine.

20

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BEgA ChEESE will complete a merger with Tatura Milk Industries (TMI) by the end of the year.

Bega bought 70% of TMI in 2007 for $38.8 million and will purchase the remaining 30% for $42.7 million.

The southern NSW-based Bega bought the northern Victorian company in 2007 during a time of losses and prolonged drought.

Bega Cheese executive chairman Barry Irvin recently told ABC Radio that TMI has turned into a profitable growth area of the Bega group. TMI contributed $15.6m to Bega’s full-year net profit of $21.7m last financial year.

“TMI gives us a good balance and expands our not only our geographical footprint within Australia, but also our market reach internationally,” he said.

“TMI is famous for nutritional infant formulas, growing up milk powders, and cream cheese.”

A meeting of Tatura shareholders is scheduled for December, and the deal is expected to be completed before the end of the year.

Irvin outlined the proposed deal to the Australian Stock Exchange this month.

In a statement Irvin said the Merger Implementation Agreement had been signed and would be subject to approval by TMI shareholders and a court later this year.

“The merger will involve the issue of two Bega Cheese shares in exchange for each Tatura Milk redeemable preference share,” he wrote.

“This will result in the issue of 24.1 million new Bega Cheese shares to approximately 320 current Tatura Milk RP shareholders. Once issued, these shares will rank equally with existing Bega Cheese shares including entitlements to dividends.”

Two TMI supplier directors will join the Bega Cheese board following the merger.

In a letter to shareholders, TMI

deputy chairman Rick Cross said shareholders would vote on the plan at a formal meeting.

“Changes to Tatura Milk’s constitution will also need to be

approved by shareholders in order to enable the merger to proceed,” he wrote.

He said the scheme booklet would be sent to shareholders in mid-November for a meeting to be held in mid-December.

It’s the second major announcement in less than a month from Bega, who

signed a contract with Coles last month to supply 19,000 tonnes of cheese to Coles to fill its entire range of Coles branded cheese products.

That agreement will see Bega increase its milk demand by 70 million litres. This will be sourced from existing and new suppliers in NSW and Victoria.

Bega will manufacture and package natural cheddar, processed cheddar and mozzarella cheese products for Coles under a five year contract. The cheese had previously been sourced from New Zealand.

This Coles deal will represent about 10% of the Bega Cheese business and Bega plans to upgrade its Coburg plant, which it purchased in 2008, to meet the contract requirements.

Bega seals Tatura Milk deal

The merger will involve the issue of two Bega cheese shares in exchange for each Tatura Milk redeemable preference share.

Bega Cheese executive chairman Barry Irvin expects the deal to buy the remaining shares of Tatura Milk Industries to be finalised by the end of the year.

DAIRY NEWS AUSTRALIA // octoBer 20114

NEWS

ThE fALTERINg US and EU economies and favour-able milk production condi-tions across the world are placing downward pressure on Australian farmgate prices.

No Australian processors have announced price step-ups since June.

Dairy Australia has maintained its $5.10 - $5.50kg milk solids (MS) forecast range for south-ern full year prices in last month’s Situation & Out-look update but its expec-tations are now toward the lower end of that range.

DA industry analyst Damian Richardson has told Dairy News Australia there are three main rea-

sons why prices are soften-ing.

“The US and EU econo-mies are struggling; the seasonal reduction in Chi-na imports; and increasing supplies from US, EU, NZ and Argentina,” Richard-son said.

“Perhaps the biggest risk

to commodity prices is low-er dairy consumption in the US and EU.

“The US and Europe are experiencing dampened domestic demand at a time of strong growth in milk production.

“Both economies are stagnating into potential economic recessions, and as a result, consumer de-mand is softening. US con-sumers look to be shifting away from fluid milk.

“If demand weakens in the US and Europe, these conditions are likely to re-sult in surplus dairy prod-uct and a downward af-fect on dairy commodity prices.”

Richardson said these

factors are not support-ing a positive environment for strong farm-gate price growth in Australia and farmers should keep an eye on these markets to track where commodity prices are headed.

He said China remains the primary driver behind global whole milk powder

markets but that imports have been light over the last few months. Reduced volumes have cozme off a very high demand period in prior months and reflect a seasonal slowdown, he said.

The improving supply outlook is also acting as a burden on international

prices with milk production in the US, EU, New Zealand and Argentina increased.

After a tough season last year, New Zealand milk production has increased 12.2% on the same period last year.

“Output is expected to re-main well above a year ago with solid growth in milk

flows for the balance of the season,” Richardson said.

Milk production in Ar-gentina has also been very strong, increasing by 15.9% increase compared to the same period of 2010. The forecast for total 2011 is a rise of around 10%.

World changes soften farmgate forecast, p19

Good seasons, poor economies hurt local prices

WhILE gLoBAL dairy commodity pric-es continue to drift lower, there are posi-tives in the data, say analysts.

The first Fonterra GlobalDairyTrade auction of the month saw average prices fall for an eighth consecutive time. The average price fell 1.6% compared to the sale held a fortnight earlier.

The average winning price fell to $US3449 ($A3631) a metric tonne, the lowest since August last year, when prices reached $US3080 a tonne.

Whole milk powder fell 0.7% to $US3309/t in the latest sale. Skim milk powder dropped 0.3% to $US3193/t.

Anhydrous milk fat sank 3.5% to $US3703/t and milk protein concentrate rose 0.5% to $US6713/t.

Rennet casein fell 7.2% to $US8181/t, butter milk powder rose 3.2% to $US3075/t and cheddar fell 4.9% to $US3800/t.

However, BNZ economist Doug Steel said prices are still about 20% higher than the 10 year average.

While the GDT result was “more of the same” and a “continued drift low-er” it was quite encouraging it hadn’t dropped more given the pressures on the market, he said.

Those include a strong start to the NZ season, a 2.1% jump in America’s August production year on year – higher than expected – and high export volumes from both the EU and US.

Low stocks relative to consumption is

the reason dairy commodity prices are “by and large holding pretty firm, as are grains too,” despite the supply side pres-sure and demand concerns due to the financial fears weighing on the US and EU economies.

Steel notes the US Department of Ag-riculture is forecasting a fall in produc-tion in 2012 due to higher feed costs.

“That’s probably the main reason why the long-term contracts (March-May

2012) are at a premium to the short-term.”

However, Steel said given the world fi-nancial market worries, he wouldn’t put “a great degree of certainty on anything at present.”

Rabobank’s Dairy Quarterly report, released mid-September, spells out the uncertainty, and paints a bearish picture of prices.

“As we enter Q4 (October-De-cember) market pricing will be heavily influenced by the size of

the surpluses generated by the EU and US, the strength of the Southern Hemi-sphere spring peak, and buying activity by key importers, especially China and Russia.

“Balancing the market will likely prove challenging without further price falls.”

China is expected to resume import buying “with vigour” but while Russia also faces supply shortages its demand is likely to be down on a year previously.

“Solid buying” from the Middle East, North Africa, South East Asia and Brazil is expected.

“Rabobank expects key importers to soak up almost record volumes of pro-duction in Q4 but pushing above the levels set 12 months prior appears to be beyond their capacity. And that, for sell-ers, is likely to be a problem.”

The report says outlook hinges on China’s demand.

global prices drift but still historically high

Dairy commodity prices are drifting but still about 20% higher than the 10 year average.

Damian Richardson

Increased international supply, particularly from the US, EU, New Zealand and Argentina, could negatively impact local farmgate prices. Photo: Clancy Burn

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DAIRY NEWS AUSTRALIA // octoBer 2011 5

National herd, milk production rise

hoLSTEINS SoLD to $7200 and averaged $2777 at Glenmar Holsteins ‘Changing of the Guard’ dispersal sale, near Mount Gambier, SA, late last month.

The Youngs sold 165 registered Holstein and 20 commercial cows and heif-ers as well as nine bulls, to a top of $7200, and average of $2777.

The top price Hol-stein, Glenmar Tallent Rosebloom, was rejoined to Ginary Jack and was by a Tallent dam out of Durham.

Buyers were repeat clients Chris and Mary Gleeson, Elmbanks stud, Koroit, Victoria. At the time of sale, the cow was producing 54.5 litres of milk, with a cell count of 52 and a class of 90.

“We came back to

support Adrian and Sue Young after purchasing quality cows in the past that have gone on to do extremely well,” Chris Gleeson said.

“She was our only purchase for the day and we are extremely happy to come away with such a top Holstein.”

Other top sales included $6300 for Glenmar Durham Rosebloom, also rejoined to Ginary Jack, producing 42.9 litres with a cell count of 67, and $5700 for the rejoined Tiger Farms Tallent Ding.

The Glenmar herd consistently averages over 9000 litres, with many lots sold producing over 11,000 and 12,000 litres annu-ally. Calving dates ranged from mid-to-late October, through to April next year.

The commercial lots at-tracted an average of $2091

holsteins make $7200as glenmar disperses

DECLININg CULL cow and live export sales point to a rebuilding of both the national herd and annual milk production.

Latest figures show a gradual im-provement in milk prices last financial year and a similar price predicted this financial year have encouraged farmers to stop culling and get milking.

The recent Dairy Australia National Dairy Farmer Survey – where 340 of the 1000 dairy farmers surveyed in the February-March survey were re-interviewed in late August – showed cull cow sales were down 7% compared to the same time last year.

This is down 16% on the 8-year average as farmers retained cattle where

possible to take advantage of relatively strong milk prices and improved seasonal conditions around most of the country.

Live dairy cattle exports eased 9% to 73,800 in the 12 months to June 2011.

60% of those surveyed anticipate their herd numbers to remain the same as predicted in March, 25% expect a smaller herd size while 14% intend to increase their herd.

Australian Bureau of Statistics herd size data also indicates higher numbers of heifers at June last year, suggesting some herd rebuilding may occur this year.

Dairy Livestock Services auctioneer Brian Leslie said demand for

replacements has increased since August but farmers are sticking to pre-sale budgets.

“I see a strong demand for cows around $2000 but once the price moves to $3000 it changes,” Leslie said.

“People want to buy cows but they still have a budget. Ordinary cows are making more than they should compared to top cows.”

Leslie said good chopper cow prices are enabling farmers to sell two cull cows for a good quality, younger replacement.

“In August/September, once it became clear there would be water in northern Victoria and the paddocks in Gippsland and the South West dried

out, and people could assess their feed, demand increased.

“A lot of farmers still have a lot of silage from last year too, which helps their cost of production. If you have feed, you can afford to get some extra cows to help fill the vats.”

Australia’s milk production finished 1% higher at 9.1 billion litres at the end of the season – with the last five months in positive territory.

DA’s current forecast milk production remains on track with growth of around 1.5% to 9.25 billion litres expected for the current financial year.

The greatest challenges farmers identified over the next six months included seasonal conditions

(nominated by 20% of respondents), milk price (18%) and cost of inputs including electricity and fuel (10%).

Expectations for growth have changed little since the earlier survey – at least nationally.

By 2013/14, 47% of resurveyed farmers expect herd production will be greater than 2010/11, slightly more than they had forecast in February-March (44%).

However, there were more significant regional shifts with fewer farmers expecting to increase production in western Victoria and Western Australia than previously, while more farmers were contemplating growth in south-east Queensland and South Australia.

and the bulls averaged $2533 for an overall total sale reaching $488,700.

Auctioneer Brian Lesley, Dairy Livestock Services, said the sale was “very strong” and “an indication of where the market is cur-rently at”.

“Over the years, Glen-mar has selected several outstanding females and

males from the successful Donach herd of Keith Gor-don, these bloodlines set a wonderful foundation and have bred extremely well,” Lesley said.

Attributing the sale to promising seasonal condi-tions, he said it was well supported by local, as well as Gippsland, northern Victorian buyers.

Glenmar stud principals Sue and Adrian Young with Chris Gleeson, Elmbanks Stud, Koroit, Victoria, who paid top price of $7200 at the Glenmar dispersal sale.

Brian Leslie

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DAIRY NEWS AUSTRALIA // octoBer 20116

NEWS: labour ShortagE

rick Bayne

WITh moRE than 20 grandchildren spread across four dairy farms owned by the Place brothers around Camper-down, Victoria, you’d think there would be a few aspiring farmers ready to take over the reins.

Apparently not.The offspring have other careers in mind, leaving the

brothers to ponder what will happen to their farms when it’s time to move on.

Terry Place, along with his brothers Ray, Glen, Chris, Stephen and Peter, raised the issue of succession planning when they took part in WestVic Dairy’s `kitchen forum’ program.

Between them the six brothers own four dairy farms in the area, continuing a family tradition that reaches back to their grandfather who was a soldier settler in the area.

WestVic Dairy’s new investment plan for 2011-12 has taken up the succession planning issue, with a `managing transitions’ program set to be rolled out using farmer levy funds early in 2012.

Managing transitions is an extension and research project to assist farm businesses to plan and move from one business phase to another, such as; from self operation to ̀ employing’ a share farmer, from leasing to farm owner-ship, or transferring between generations.

Terry Place said he was pleased that the ageing popula-tion of farmers and the need for transition planning was being addressed.

“Everyone is in the same boat when it comes to planning for the future,” he said.

“It’s getting harder and harder for a young bloke to get started in farming. The costs are becoming prohibitive and they can’t get the backing. It’s not just the cost of the land; it’s also the infrastructure and the cattle and the price of

ThE govERNmENT and the dairy industry must look at deep-seated issues in the agricultural sector and regional communities and work together to address them to attract future employees.

Farm viability, attractive working conditions on farm and vibrant, sup-ported communities are essential if dairy is to win its fair share of new workers.

In the industry’s official submis-sion to the Victorian parliamentary inquiry into attracting and retaining young labour, Dairy Industry People Development Chair Lynne Kosky said all strategies must be based on deep-seated issues.

“Farm viability is critical to at-tracting young people,” the submis-sion said.

“Dairy farms will only be attrac-tive places for young people if they are able to achieve an acceptable standard of living, invest to counter the declining terms of trade, and invest to match broader community increases in earning.”

The submission said working

conditions on dairy farms must match those of other jobs on offer, or young people who start in dairy will not stay.

“Flexibility (in work hours and timing), personal growth and devel-opment (including career paths) and enjoyable work environments are reported as key conditions that em-ployees valued alongside pay rates that are competitive for farming.”

Vibrant communities are an important factor in retaining a rural workforce as opportunities for partners and family members often make or break the decision to stay.

“Access to hospitals, recreation facilities, casual and permanent employment off farm are all needed.

“An adequate dairy service sec-tor is also important. This is an interdependent relationship - there must be a sufficient number of farms in a district to sustain a viable, well-serviced dairying community.”

Swan Hill agronomist Rob Sonogan told the hearing in Swan Hill that an agricultural pathway through the education system was

necessary.“To give agriculture the impor-

tance it deserves it definitely needs a more positive image, and one of the most effective ways would be there.”

Sonogan said many ageing farm-ers have asked him in recent years whether he knew of any young person keen to farm their land.

“I really feel there exists a role for some co-ordinating body to “pair-up” such situations and this op-portunity could greatly assist those younger ones that want to farm but see the initial cost as too great an obstacle.”

Sonogan said young progressive farmers should be paid to promote the image of farming.

“They are soon over-used and quickly drop away. The main reason for this is that no-one is prepared to pay them what they are really worth and while they want to assist promoting farming, their business suffers and so do their finances. Consultants are often paid $120/hour for their time in these situa-tions.”

labour to give you a hand.

“It’s a matter of try-ing to build up some capital and then find-ing a way to ease your way into the industry, maybe through share farming or similar programs.

“The average age of farmers around here

is over 50 so it’s something we need to think about.”The Place brothers fit into this category.“Between the Place family we have 34 grandchildren but

at this stage not one of them wants to go on the farm.”Terry himself has four children; two are nurses, one an

electrician and one a builder.He milks 380 cows on his Pomborneit farm. Between

them the brothers milk more than 1500 cows within 10 kilometres of each other.

“No one wants to milk cows anymore,” he lamented. “People look back and see how hard the previous genera-tion worked. It’s not like that today but they want to go off to uni or into trades.”

“It’s difficult for a lot of farmers to find people.”Terry also supports another WestVic Dairy initiative

In2Dairy, which aims to attract more trained staff into the industry.

“Anything that helps grow a bit of interest and get more people with some training has got to be good.”

Terry plays his part in trying to advance the dairy indus-try as a participant in the Cows Create Careers project. “I have been involved with taking calves into local schools for the past four years. It’s a good start to get them interested in dairying.”

“I think that any project which introduces young people to the industry should be encouraged.”

And Terry says farming is a good career.“It hasn’t been a bad life for me. Like most farmers I love

being my own boss and in charge of my own destiny.”Courtesy: WestVic Dairy

Dig deep to address real issues

The six Place brothers are looking at transition planning with none of their grandchildren likely to take up farming.

Brothers forced to plan transition

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DAIRY NEWS AUSTRALIA // octoBer 2011 7

NEWS: labour ShortagE

gIppSLAND DAIRY farms created 340 new positions last financial year. The real problem was filling them.

It’s a story repeated across the country. Many farmers find it hard to attract and also retain employees, from farm assistants to managers, stifling growth of the individual business and the national industry.

A Victorian bipartisan parliamentary inquiry into farm employment visited Gippsland dairy farms last month and heard submissions from the region’s stakeholders.

Gippsland produces 1/3 of Victoria’s milk and 23% of the nation’s milk. The 2.1 billion litres of milk produced by its 1700 dairy farms in 2010/11 is valued at more than $840 million at the farm gate, and over $1.2 billion after processing, making it the largest agricultural commodity in Gippsland.

GippsDairy executive officer Dr Danielle Auldist told the inquiry demand for employees on Gippsland dairy farms is currently outstripping supply.

“All the evidence points to a substantial problem in Gippsland,” she said.

“The number of dairy farms wishing to employ people increased from 57% to almost 70% in the three years to 2010, with one in five dairy farms planning

to hire more staff in the past financial year.

“At the same time, research shows the strongest dairying districts in Gippsland have lower unemployment rates than the rest of Gippsland, with strong competition in the job market from the construction industry.”

Research conducted over several years has revealed that more dairy operations were looking to employ workers, but there were not always enough employees to fill positions.

Farmers have also asked for assistance in knowing how to recruit people and then manage them effectively. They want a central register for employers and employees and share farmer or lessee opportunities.

Auldist believes the industry must create the right conditions to attract workers and retain them on the farms.

“Good employers

develop their staff and give them every reason to become long term and highly valued employees,” Auldist said.

GippsDairy has developed a project, based on discussions with hundreds of farmers, that it hopes will find long term answers to the employment problem.

The project, which is being supported by Dairy Australia aims to:• Create a stream of

replacement milkers that can address immediate problems and late em-ployed full-time by local farmers.

• Support farmers in being good employers by use of employment tools

and attendance at courses. •Supply a support-ed job advertising process using the GippsDairy web site and promotion in the local media.•Raise awareness of career pathways

in the dairy industry by building relationships with schools to promote the industry as a career option.

• Boost training in dairy farming systems by linking interested people with appropriate train-ing options through National Centre of Dairy Education Australia.Auldist said the project

has been developed this year and now is a perfect time to collaborate with the State Government to implement it.

Gippsland farms create 340 new jobs

Farmers want help in recruiting people and managing them.

Farms wanting employees rose from 57% to 70% in three years.

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GippsDairy executive officer Dr Danielle Auldist says all evidence points to a substantial problem in Gippsland.

DAIRY NEWS AUSTRALIA // octoBer 20118

NEWS: Milk WarS

A SENIoR Parmalat execu-tive says milk sold for $1/litre is not sustainable in the long-term.

Parmalat supply chain manager Vince Houli-han told the Queensland Dairyfarmers Organisation conference last month that Coles had deliberately used milk in its “Down, Down” discounted products adver-tising campaign because it would appeal to customers.

“They discounted 6000 products, the one they focussed on was milk,” Houlihan told the audience

of 200 farmers.“Milk matters. They

picked on it because it matters.

“They had to single it out if they wanted to win the battle. Without milk, people will not go to the supermarket.”

Parmalat owns the Pauls brand of drinking milk, which has lost market share since Coles and Woolworths slashed their house brand milk prices to $1/l in January.

Beaudesert farmer Peter Biscoff told the conference

Andrew Burnett, Gympie; Ken and Susan Rough, Kenilworth; Stephen Siebenhausen, Pittsworth.

Julie and Errol Gerber, Lockyer Valley; Adrian Peake, QDO CEO.

Mary and Peter Rohan, Kerry; Bill Gulbransen, Mt Mee.

QDo annual conference

we let this continue, they can fire up more trucks as more milk will be needed from a lot further afield.”

Greg McNamara, chairman of northern NSW-based co-operative Norco, said Coles will not achieve its goal of lifting its Queensland milk supplies by 100m litres by cutting prices.

McNamara said it needed to work with the Queensland industry while it was still here.

“That $1 a litre devalues us, it is a lack of recognition in what we do,” McNamara said.

“Farming based skills are learned, they are passed down through the

generations. Young Farmer Groups want to be told they’re doing a good job.

“Look at the pork industry. Retailers are now saying we need to restart the pork industry. Do you know how hard it is to do that once it’s gone?”

McNamara said a sus-tainable dairy industry in Queensland and northern NSW requires on-farm investment; processor investment; research, de-velopment and extension; a long-term commitment from retailers to create a sustainable industry; and strong leadership.

McNamara said proces-sors must invest in the last litre of milk they receive.

Lion, formerly National Foods, now pays its suppli-ers a Tier 1 price for milk it has a market for, and a lower Tier 2 price, which is effectively cost price and shipped on.

Cheap milk unsustainable: Parmalat“Coles discounted 6000 products, the one they focussed on was milk. Wihout milk, people will not go to the supermarket.”

that supermarket discount-ing will see the demise of the Queensland fresh milk industry if it is allowed to continue.

“With the price signals we’re getting, there is no confidence in future invest-ment.

“Coles say they are con-cerned about food miles, if

Parmalat supply chain manager Vince Houlihan

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DAIRY NEWS AUSTRALIA // octoBer 2011 9

NEWS: Milk WarS

CoLES mERChANDISE di-rector John Durkan stuck to the company line in front of a hostile crowd at the Queensland Dairyfarmers’ Organisation annual con-ference last month, stating that his company was com-mitted to supporting the dairy industry.

Two hundred farmers filled the room, waving placards reading “A fair price for milk”.

It was the first time they had the opportunity to question Coles manage-ment about its decision to drop its generic milk price to $1/litre on Australia Day.

Durkan took to the stage to the backdrop of the 1980s hit song, The Only Way Is Up. A large backdrop of the infamous Coles “Down, Down” logo (with the big red hand) was placed behind him.

Durkan was defiant, opening his address by saying “it’s been a tough year for us as well”, in refer-ence to flood-ing of some Coles stores in Queensland in January.

Coles sells 341 million litres of milk products in Queensland, including 100m litres of drinking milk.

“We have to ship in some milk from interstate. We would love to do it all here,” he said.

He said the decision to cut prices on 6000 of their items in store was to win the trust of customers who said they did not trust supermarkets to give good value.

Durkan said Coles paid its contracted processors more money before it dropped the price of retail milk in its stores.

“One of the largest increases we gave was in Queensland. More money has gone back into the industry from our perspec-tive in terms of milk.”

In closing his presenta-tion Durkan said: “We are committed to supporting the dairy industry.”

Harrisville farmer Paul Roderick took Durkan to task when questions were taken from the floor.

“I think you need to acknowledge that there has been some affect, that it’s been a direct result of that discounted milk,” Roderick said.

“We’ve seen a shift from branded sales into the private label and with a cheque that’s linked to branded milk sales then that’s had an effect and I think that’s a point that you need to take on board.

“I want to put that point across whether Coles is in a position to acknowledge that.”

Durkan said from Coles’ figures, its decision to cut prices shouldn’t have affected farmers that sup-ply milk to its contracted processors.

“I’m not trying to avoid (the question), I just don’t have that information.”

Roderick responded: “Well if you weren’t aware, you are now.”

Since the Coles decision and the response from Woolworths and other supermarkets to drop their milk prices, Australian Dairy Farmers say retail milk value has lost $77m, while the QDO says for every two litres of super-market branded milk sold at $1/l, 22-28c is stripped from farm gate returns.

Gympie farmer Andrew Burnett described Durkan’s performance as “well rehearsed”.

“He had done his homework. He danced around the hard points like supply and demand for the Queensland industry and the emotional points about how vulnerable the supply chain is.

“Delegates didn’t take much substance from his presentation.”

Burnett said his business had lost tens of thousands of dollars since the price wars started.

Durkan sticks to script in Qld

“It’s been so dishearten-ing that the announcement was made on Australia Day only a week or two after flood waters subsided from our property.

“The timing couldn’t have been worse. So emotionally and finan-

cially we’re over this year already.”

Burnett said with pro-duction costs in Queens-land of 54c/l, supermarket brand milk should be 50c/l dearer to increase value in the supply chain to provide a return to the farmer.

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6. Australian farmers lose 6-8 % of their calves every year on average (CSIRO)

DAIRY NEWS AUSTRALIA // octoBer 201110

NEWS

AUSTRALIAN DAIRY Farmers president Chris Griffin told a public hearing of the senate in-quiry into the impacts of supermarket price decisions that the market had been corrupted by supermarket discounting.

“Coles is trying to spin the line that they are absorbing the cost of their unsustainable mar-ket tactics,” Griffin told the inquiry.

“Dairy farmers do not believe them because this is not the effect that we are seeing in the

market.”Griffin told the senate committee the

price war was reducing sales of branded milk, bringing less money into the sup-ply chain.

“Processors and dairy farmers who supply the drinking milk market rely on the margin from branded milk sales for their profitability,” he said.

“Competition from unsustainably-priced Coles home brand milk is tak-ing market share away from branded products and thereby reducing the overall return on the fresh milk sup-ply chain.”

Griffin also said consumers were purchasing less long-life milk and more fresh milk because “they can

afford to buy extra and then throw some out”.Queensland Dairyfarmers’ Organisation

president Brian Tessmann told the inquiry more than 20 Queensland dairy farmers have left the industry since the price war began in January.

He said although Queensland had been short of milk supply since January, with milk being imported from interstate at a higher cost, the price of milk had dropped.

“Unlike the prices of fruit and vegetables, where prices have increased dramatically with the loss of supply, milk is short but prices have actually dropped.

“We see this as a market which is not func-tioning properly and in fact, is failing.”

Griffin told the inquiry the pricing strat-egy would have long-term impact on farmer returns. Farmers in northern NSW, Queens-land and WA were already being impacted with some being offered contracts at lower prices this season.

Griffin said the decision has had very little impact in Victoria, where 10% of the state’s milk is used for the drinking market, but a re-duction in farmers in the north could skew the market.

He said there was a 1 million litre milk deficit

in Queensland as a result of natural disasters and farmers exiting the industry and this had to be found from other sources.

“This milk is shunted up from NSW and NSW milk is replaced by Victoria and Tasma-nia,” he said.

“That is now potentially taking milk from a very buoyant export market, which Victorian and Tasmanian farmers are experiencing now.

“We don’t want milk to go into an unviable structure created by supermarkets and away from the lucrative export market.”

Griffin said milk was being used as a loss leader to get customers through supermarket doors. “We haven’t seen any loss of profitability from supermarkets across the board because they can make their profit from other items, in their case.

“We’re hopeful the Senate will take into con-sideration recommendations we’ve made and have a mandatory and enforced code of con-duct enforced by an ombudsman that covers the entire value chain so everyone in that chain gets a fair price.

“If that’s the case, we will get benefits from the industry as a whole.”

The deadline for the report has been re-scheduled to November 1.

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DAIRY NEWS AUSTRALIA // octoBer 201112

NEWS: SuccESSioN plaNNiNg

liz coTTon

SEEkINg pRofESSIoNAL advice from a range of sources and starting early are important factors in planning for the future of a family’s dairy farm business, according to an industry expert.

Pauline Brightling, leader of Dairy Australia’s The

People in Dairy program, says planning for the future of a dairy farm business involves complex financial, legal and operational issues.

“It is important to seek professional advice to deal with the complexity involved and to get a range of perspectives,” Brightling says.

“Plans need to consider

the unique circumstances of the people and the business.”

Brightling says there are numerous important issues to take into consideration when looking into succession including taxation implications and options, retirement income planning, personal risk management insurances and contingencies

(income protection and death cover), provision for active and non-active family members, financial implications of transferring ownership of the business and people joining or leaving the business and appropriate structures.

“Each adviser has their own area of expertise. Rarely will one individual,

or a single profession, be able to provide all of the advice that is required.”

Brightling says dairy advisers with human resource training specifically tailored to the industry are a great first option and The People in Dairy website (www.thepeopleindairy.org.au) contains a full list of advisers in each state.

“These consultants can help with the people issues that occur on a dairy farm, as well as defining objectives, evaluating the business and exit strategies; reviewing financial implications; helping resolve conflicts and confusion; assist in employee transition management and help develop the business continuance plans and strategies.

“They can also have input into the overall op-erations planning.”

Accountants can assist with issues such as mini-mising capital gains tax, estate and other taxes for all parties.

There are two profes-sional accounting bodies, both of which represent accountants across a broad range of skills: the Institute of Chartered Accountants and the Certified Practicing Accountants Australia.

“Given the regional basis of dairy farming, it is often the case that the ac-countants who have most experience in our industry will operate from regional centres,” Brightling said.

“Word of mouth from other farmers or advisers may be the best way of connecting with the right professional accounting as-sistance for each individual farm business.”

Financial planners can provide a broad range of financial advice.

Advice can be given on investment strategies for personal assets outside of the business or for funds from the sale of

the business.The adviser can help

develop an appropriate strategy for investment and retirement funding. Many financial planners can assist with Centrelink advice and insurance mat-ters (income protection and death cover).

Rural Financial Counsel-lors offer a free service to farm businesses under financial hardship on a range of issues; the federal government has an-nounced that funding for rural financial counselling services will continue at least until 2015.

A legal adviser can help the team chart a course of action by advising on legal issues as they arise. Once a succession strategy is determined, the legal ad-viser can play a key role in drafting partnership agree-ments, buy- sell agree-ments, employee equity agreements, create trusts and restructure corporate capital.

A key role for the legal adviser is assisting with the development of the estate plan for distribution of assets upon the death of an individual.

A bank or fund manager will have an interest in the impact of succession on the business debt and future performance. They may also play a role if financ-ing is a requirement in the plan.

“When planning for the future of the dairy business it is important to recognise ‘who owns what’ from a business perspective, and the level of equity each individual may have in the business,” Brightling said.

“For some businesses this can be quite complex.

“The ‘Taking Stock’ pro-gram can make this easier. You can either complete the Taking Stock worksheets, or have an accountant or external adviser do this for you. Follow the links from The People in Dairy website.”

External advice aids smooth transfer

Useful weblinksthe Grains research and Development corporation has developed a comprehensive guide to succession planning titled: A Guide to Succession: Sustaining Families and Farms. It can be downloaded from www.thepeopleindairy.org.au

Youth central has some resources to help manage your finances: www.youthcentral.vic.gov.au

rural Law on line has some excellent information and an online forum: www.rurallaw.org.au/resources/farmSuccessionplanningforumReport.pdf

the conflict resolution Network has a range of practical tips and reading materials (DVDs and cDs): www.crnhq.org

Pauline Brightling

DAIRY NEWS AUSTRALIA // octoBer 2011 13

External advice aids smooth transferkEEpINg IT simple and being proactive about succession planning can take the stress and uncertainty out of passing on the family farm.

“Every family’s situation is different, but we wanted to open the lines of communication and make sure everybody’s views and opinions were heard before making any changes,” Glenmar Holsteins’ Adrian Young said.

Late last month, Adrian and wife Sue, Glencoe, SA, took their first step in the succession process when they held their on-farm ‘Changing of the Guard’ stud dispersal, to make way for daughter Angela and her husband Ben to run the family dairy farm.

“It was quite an event, for the stud and for the family,” Adrian said.

“We sold the entire herd – bar around 100 cows that we will lease to Angela and Ben so that when they begin, they can maximise their production – and it was mixed emotions as we parted ways with over 20 years of breeding and work.

“But we want to give them the best start on the farm and a chance to pave their own path and so from that aspect, it was exciting.”

The Youngs have three children; 26 year-old Josh, who works locally at paper mill Kimberly Clark, Dillon, 19, an apprentice boiler maker and Angela, 28.

Adrian’s father purchased the original 90ha Glenmar property on prime dairying land at Glencoe, near Mount Gambier, some forty years ago.

Adrian joined the family business after leaving school at 16 and became a partner in the business with his parents.

“I was the only child interested in carrying on the dairy so it was a fairly simple procedure to creating the partnership. We transferred all the cows into the partnership and 23 years ago, mum and dad wanted to retire so Sue and I took over. It was a fairly simple process back in the day.”

The Glenmar dairy has been improved over the years with the purchase of three centre pivots and a new 20 aside double up herringbone dairy in 1998. The Youngs also purchased 120ha of land opposite their farm in 2002, which bought

the total holdings to over 200ha, including 92ha of dryland and 30ha under pivot. The dairy milks around 300 cows.

In 2002, Angela was due to complete her two year advanced diploma in agriculture, majoring in dairy farming at a Victorian university. Her partner, Ben Largo, was in partnership in his family’s dairy in Victoria.

“We had early discussions with the family about what everyone might want to do and it was evident that Angela was interested in the dairy industry. Josh was happy in his work and Dillon was also heading in a different direction but also helps around the farm,” Adrian explains.

Some 18 months later in 2004, after Angela had completed her studies, she and Ben began buying their own cows,

some of which came from Ben’s family dairy and some from Glenmar.

Later that year the couple took on a small share of the Young’s family farm after talking with both families, their local accountants and banking institutions.

“Although this was a good arrangement at the time, Ben and I wanted to be our own bosses and so decided to lease land half an hour away at Allendale, where we could expand the herd and try our luck,” Angela says.

“After five years, we began to look more seriously about succession at Glenmar. We were contemplating leasing a farm in the Western District but mum and dad were keen for us to take on the family property and it seemed to be the right fit for all of us.”

NEWS: SuccESSioN plaNNiNg

Adrian and Sue will lease the farm and 100 cows to Angela and Ben, which will bring the herd up to 330. Adrian has work lined up on a beef property, handling and managing younger cattle and Sue may look for part-time work locally, but the couple will help out on Glenmar while Angela and Ben get settled.

Adrian concedes timing was the “biggest challenge”.

“Once things were put in place and we’d gone over aspects of the changeover, it all became a lot clearer, but there is always uncertainty about the unknown, especially when you have known a certain way of life for over 30 years.”

The Youngs didn’t seek out succession planning advice initially, “because we didn’t want to make it hard – the thought of lawyers and mediation seemed unnecessary in our situation”.

“We spoke to our accountant and bank manager, friends, people at the industry level and gained information from Dairy Australia’s succession planning guides,” Adrian says, but concedes that there is value in getting specific succession advice before entering into a succession plan.

“Perhaps we should have gone through a course initially, as speaking to other families, there seems to be good value in getting advice at the outset.

“It is certainly something we will look to do when we do decide to retire permanently.

“For the meantime, however, I am confident that we’ve reached a point where everyone is happy with the changes taking place.

“We really want to see more young people taking up a career in dairy and feel that we’ve perhaps contributed to that in some small way.”

Dispersal signals changing times

Ben Largo and Angela Young, with children Connor and Shae. Angela is the next generation of the Young Family to run Glenmar dairy, Glencoe, SA.

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BoNLAC SUppLY Company’s 1300 dairy farmer shareholders in Victoria and Tas-mania will receive a fully franked dividend of 8.4 cents per supplier share this month.

BSC chairman Tony Marwood said the dividend was equivalent to an unfranked dividend of 12 cents per share.

“BSC was in a position to pay the divi-dend as result of interest payments on the Unsecured Capital Notes we have invested in Fonterra Australia,” Marwood said.

“Fonterra’s Australian business has managed better than some to manage the perfect storm of recent high commodity prices which had to be absorbed and retail price wars pushing down the consumer prices of dairy products.

“While dairy margins have been under pressure for everyone, a solid performance by Fonterra’s commodity business acted as a natural hedge to the retail margin squeeze helping to deliver a closing milk price from Fonterra for the 2010/11 season which was the second highest milk price ever.

“Now, with this dividend coming on the back of the strong closing price, BSC suppli-ers are experiencing a good financial boost to their business.”

The dividend applies to shareholders who currently supply milk to Fonterra and

will be paid as part of Fonterra’s milk pay-out on October 15.

At the same time, Mr Marwood said that BSC was commencing a shareholder con-sultation process to consider its future milk supply arrangements and investment in Fonterra as the current supply agreement with Fonterra expires in 2014.

“We would like to understand from our shareholders what they want from any fu-ture arrangement, what sort of organisa-tion they want to be part of, how their busi-ness can best be supported and what sort of commercial options may be open to us.”

WESTvIC DAIRY has attracted nearly $700,000 of external funding during the 2010-11 financial year.

The regional dairy devel-opment agency has been able to successfully supple-ment industry levy funds to develop local programs to address needs identified by local farmers.

WestVic Dairy chairman John Dalton said feed, fertility, people issues and milk prices were the top concerns listed by local farmers at 15 kitchen forums held during the year.

“We have framed our operating plan for 2011-12 to address these issues,” he said.

During the past year additional funds have been sourced from local, state and federal governments, CMAs and other sources to add value to the levy contribution made by the region’s dairy farmers.

“We aim to double the level of cash we have to in-vest in dairy products and support farmers and their priorities,” Dalton said.

For the first time WestVic Dairy achieved total income of at least $1million during 2010-11. It easily surpassed its aim of doubling the farmer levy contribution by attracting outside funding.

Dalton said that at the moment the agency was

managing 15 different projects that will advance the local dairy industry.

“The dairy industry is a third of the south-west’s economy and research and development is the key to keeping abreast of the op-portunities and challenges that confront us,” he said.

Over the past year WestVic Dairy has invested in a variety of projects to address farmer needs, including soil acidity, Focus

Farm, careers coordina-tion, financial literacy, milk from moisture and young dairy development programs.

Dalton, who started his second year as chairman at the annual general meeting in Warrnambool on September 16, said the

local industry had experienced floods and was still recovering from high debt loading from the GFC step down a couple of years ago and a strong Australian dollar.

However, he added that good summer/autumn conditions, strong demand for products and improving milk prices had helped the local industry.

Lisa Dwyer was elected deputy chairman and Graeme Martin, from near Colac, was elected as a new board member to replace Peter Musson from Macarthur who stood down after six years of service to WestVic Dairy.

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Feed, fertility, people issues and milk prices were the top concerns listed by local farmers.

Tony Marwood

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DAIRY NEWS AUSTRALIA // octoBer 2011 15

NEWS

alan harman

foREIgNERS oWN 11% of Australian farm land and 9% of water entitlements for agricultural purposes.

The Australian Bureau of Statistics says all states showed high rates of Australian ownership of agricultural businesses, ranging from 99% in Queensland to 96% in Tasmania.

The state with the highest proportion of land held entirely by Australian owned businesses was Victoria, with only 1% of its 12m ha not

Australian owned, while the Northern Territory had the lowest proportion with 24% of its 59m ha foreign-owned.

Local ownership of water entitlements for farming is 100% in NT, 98% in SA, 89% in NSW and the ACT and 69% in Western Australia.

With Australians concerned over an apparent Chinese agricultural land rush for dairy farming and coal mining, Assistant Treasurer Bill Shorten said the bureau survey provides hard data about the true extent of foreign ownership of agricultural businesses, land and water for the first time since 1984.

“It is vital we protect the national interest and continue to strike the right balance between attracting foreign investment and ensuring Australia’s agricultural sector and food security are maintained,” Shorten said.

“We will continue to ensure foreign investment remains appropriate to Australia’s current and future policy challenges.”

The Senate rural affairs and transport references committee is looking at the Foreign Investment Review Board’s national interest test that does not consider investments worth less than A$231 million.

The bureau’s land ownership estimates are based on a survey of 11,000 agricultural businesses. It says the survey results are broadly comparable with levels of foreign ownership of agricultural businesses and land collected in the agricultural census of 1983-84.

Estimates from the survey indicated the total area of agricultural land in Australia on December 31, 2010 was 398m ha. Of this total, 353m ha, or 89%, were entirely Australian owned, 45m ha had some level of foreign ownership and 300,000ha had an unknown ownership status.

Of the land with some foreign ownership, 168,500ha were owned by businesses which had less than 10% foreign ownership, 22m ha were owned by businesses with between 10% and 50% foreign ownership and 23m ha were owned by businesses which had more than 50% foreign ownership.

The bureau says it estimates the number of agricultural businesses at 135,600 with 133,600, or 99%, entirely Australian owned. That left 1,300 with some level of foreign ownership and 732 with an unknown ownership status.

Overseas ownership steady at 11%

mary wiTsey

gERmAN INvESToRS, through Aquila Group, have spent at least $100 million snapping up thousands of hectares of Southland dairy land in the past 18 months.

Their most recent ac-quisition includes a 417ha property at Riversdale ($14m) and a 220ha farm at Otautau ($6.5m), publicly approved last month by the Overseas Investment Of-fice.

Since March 2010 the OIO has approved 12 dairy farm purchases in South-land, totalling 3643ha, for $105 million.

Aquila Group manages various funds, providing investment management services to hundreds of German investors. It uses New Zealand-owned dairy investment and manage-ment company MyFarm to oversee capital devel-opment and manage its Southland operations.

MyFarm director An-drew Watters says though Southland land is no longer cheap, it appeals to inves-tors because it is produc-tive, the size of the farms is economic and the climate is favourable.

“A farm system will per-form in Southland year in and year out at relatively high levels.”

And despite local farm-ing community worries he believes the German in-vestors are good owners. “These funds are here for an investment purpose; it’s not about land-grabbing. So as long as the investment goes in... and they’re good local citizens, it should ben-efit New Zealand.”

MyFarm currently man-ages 30 farms in Southland – the majority owned by New Zealand syndicates – and in the past year has employed eight extra staff in the province.

“The real estate market simply tends to be more ac-tive in Southland than in other areas.”

He also points out most Southland farms bought by German investors are larger, milking 700 or more cows.

“The sales evidence shows New Zealand inter-est lies in farms of 600 cows or fewer, so this gives us an opportunity in a part of the market that hasn’t been ac-tive. Some of these farms need $10 m to $15 m in equi-ty and other than the New Zealand Super Fund there’s been no fund interest in New Zealand, so you’ve got to find larger investors overseas in the absence of New Zealanders.”

He also suggests if these farms had not sold to overseas investors the deals might not have proceeded. The sales bring financial benefits to Southland. “There’s a lot of economic activity happening in Southland that might otherwise not have occurred.”

The two most recent farm purchases created four new jobs on farm, with $2.5 million in capital de-velopment, including the construction of a cowshed, housing and effluent man-agement systems.

Although he admits re-turns from the farms will flow back to the German in-vestors “all of the economic activity happens in South-land.”

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opiNioNRUmINATINg

EDIToRIAL

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.

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Slick JohnnyCoLES mERChANDISE manager John Durkan left Queensland farmers dizzy with the amount of spin in his presentation at last month’s Queensland Dairyfarmers Organisation conference.

He showed more front than Myer by telling farmers: “It’s been a tough year for us as well.” He was referring to the flooded Coles stores throughout Queensland but unsurprisingly he received little sympathy.

In summary, Durkan told the placard-waving crowd: “We are committed to supporting the dairy industry.”

His 30 minute presentation was remarkable for saying so much without saying anything at all, providing an insight into how he performed at the recent Senate inquiry.

good point, well madeThERE WERE articulate arguments made to John Durkan from the Queensland farmers in attendance, as well as some unbridled venom to leave him a little uneasy.

The best point came from Harrisville farmer Paul

Roderick who asked Durkan to retract his statement that $1/litre milk does not hurt farmers’ bottom line.

When Durkan said he wasn’t trying to avoid the question, he just had no evidence that it was hurting farmers, Roderick stood up and told him that it had definitely affected his income.

“That’s a point you need to take on board. If you’re not aware, you are now.”

Durkan can’t say he hasn’t been told – although we’re sure he’ll still spin future answers.

Spread it on thickgooD NEWS for those who like to spread their toast with a thick layer of butter – it could be good for you.

New research shows breakfasts rich in regular-fat dairy foods, including cream and butter, have been found to lower the levels of risk indicators for heart disease and diabetes.

The research involved 13 overweight or obese adults who were given different dairy meals. None of the dairy foods increased any of the markers of inflammation in blood which

are risk indicators for heart disease and diabetes

Breakfasts rich in cream, butter or low-fat milk actually lowered marker levels.

Dairy Australia dietitian Glenys Zucco said a growing body of evidence from observational studies suggests regular-fat dairy foods have a neutral or even beneficial effect on risk of heart disease and diabetes.Research like this is going to help Glenys sell the message to consume more dairy even easier.

mILkINg IT...

Richie mcCow’s picksRUgBY fEvER has now reached cow paddocks.

Inspired by England’s now-deceased octo-pus Paul (fabled match picker during the soccer World Cup) New Zealand has its own ‘Richie Mc-Cow’.

Northland calf owner Kyle Underwood had hoped Richie would follow in Paul’s tentacle steps by picking the winners of each game.

But he failed his first test, picking the All Blacks to beat Australia in the recent Tri-Na-tions decider. (At least he was patriotic, his owner says.)

But Underwood retains faith in the young bull, insisting he would rather Richie was loyal than right. “Imagine a black-and-white cow not going for the All Blacks and choosing Australia. That would not have gone down well,” Under-wood told the New Zealand Herald.

Despite his wrong prediction, supporters have rallied to the ‘Support Richie McCow’ Facebook page, now showing at least 950 ‘likes’.

Richie is also predicting World Cup outcomes for the New Zealand Herald.

ThE vICToRIAN parliamentary inquiry into farm employment has been flooded with submissions.

It’s a credit to the Victorian Government to shine the spot-light on a critical problem that would deter economic growth at farm, state and national levels if left unaddressed.

Demand for employees on dairy farms across the country is currently outstripping supply and this problem will get worse if not addressed.

Research over a number of years has revealed that more dairy operations want to employ workers but there are not enough employees to fill positions. It also shows creating the right con-ditions to attract and retain workers are critical.

Good employers develop their staff and give them every rea-son to become long term and highly valued employees.

Dairy Australia knows this. Its program, The People In Dairy, provides advice on how farmers can achieve this.

The shortage of employees needs addressing but is far from bleak.

GippsDairy has developed a project after consultation with hundreds of farmers, which will:• Support farmers in being good employers by use of employ-

ment tools and attendance at courses. • Supply a supported job advertising process using the Gipps-

Dairy web site and promotion in the local media• Raise awareness of career pathways in the dairy industry by

building relationships with schools to promote the industry as a career option

• Boost training in dairy farming systems by linking interested people with appropriate training options through National Centre of Dairy Education Australia.It is confident raising the industry’s image by improving and

highlighting its professionalism will attract more employees. It is then up to employers, with support, to retain them.

The Australian Dairy Industry Council, through Dairy Aus-tralia, has already conducted its own research and begun to pi-lot programs to identify solutions.

It has said some issues to be overcome are deep-seated and involve the viability of individual dairy businesses. Affordabil-ity of agricultural land is another issue that must be addressed.

These are areas which need strong industry-Government re-lations.

A Government that is aware of the strength and problems of the industry can offer critical help when needed.

ADIC is confident interventions by industry and government can make a real difference to the attractiveness of the industry to the next generation.

It admits it won’t be easy but the solutions are there. It is im-perative that the parliamentary committee assess these solu-tions in its report and that the Government acts.

Employment solutionsrequire govt support

DAIRY NEWS AUSTRALIA // octoBer 2011 17

opiNioN

ThIS YEAR’S floods and above average winter rainfall in parts of Australia provide a stark re-minder of the importance of understanding and managing on-farm risks.

While many farmers clearly understand the operational risks of their businesses, putting a dol-lar figure on those risks is impor-tant to determine the best way to mitigate them.

The first step is to under-stand your farm’s normal ‘cash flow cycle’, i.e. knowing when cash comes in and goes out of your farm’s bank account. For farmers, a cash-flow cycle will typically be one ‘season’ or a year (although account needs to be taken of effects over a number of years, such as destocking for droughts).

Once you know what a nor-mal cash flow cycle looks like for your farm, start to consider how to manage unexpected is-sues that will affect the cash flow cycle.

The most important scenario to understand is the ‘break-even point’ – the minimum cash that you can receive during one cash-flow cycle without requiring in-troduction of external cash such as more borrowing.

Knowing when and how much cash is going in and out of your farm means you can then start to identify the risks likely to af-

fect that cash flow, and identify a solution appropriate to manag-ing those risks.

One risk for farmers is interest rate changes. Interest rates are now low so it would be prudent to assume they will soon rise. So a buffer should be built into budgets for that likely increase.

Also, several ways exist to limit the affect of interest rate increases, such as fixed rate loans and various hedging in-struments. If your business is particularly sensitive to interest rates, this increases the priority for using surpluses to pay down debt.

First, understand what inter-est rate you are able to afford and for what duration. Knowing this will help you to identify the ap-propriate solution.

The other big risk is about production levels; knowing the break-even point is crucial. Many things could affect your individual production rates, such as floods, drought and availability of feed.

Broadly speaking there are two strategies for mitigating these risks.

First, having a ‘capital solu-tion’ in place. Essentially that means having access to cash or borrowing capacity to cover any unforeseen expenses. By using surplus cash to pay down debt, you create debt capacity within

your overdraft facility that can then be redrawn to cover unex-pected costs that may arise. This type of working capital solution will typically provide relatively easy access to cash at short no-tice.

Alternatively, invest in a per-manent solution, such as irriga-tion for drought-prone farm ar-eas or conserved feed to call on. This solution usually requires a larger amount of expense up-front and the payoff will come via more consistent and prob-ably increased productivity, as well as potentially reducing the impact between seasons. For

example, by maintain-ing stock condition and retaining capital stock in drought conditions you may produce more in the seasons that follow.

This is often the dif-ferentiating feature that separates high performing

farms from those at a medium and low level. Climatic or eco-nomic events do not disrupt the business, and the focus on the long term plan and the concen-tration on the things that con-tribute to high performance is maintained.

There’s no one solution to on-farm risk management. Every farmer needs to identify the risks on their farm and deter-mine how much they are pre-pared to pay to address that risk. Remember there is always a cost to risk-mitigation and it’s impor-tant to understand the cost of the solution and the cost of do-ing nothing.

Graham Turley is managing director, Commercial & Agri at ANZ.

graham Turley

Get a grip on yourfinancial risks

ChINA’S AvERAgE annual per-person con-sumption of meat increased from 20kg to 50kg between 1985 and 2000. By 2030 it is estimated the figure will be 120kg per person (similar to that of Americans and New Zealanders) for the urban population, but rural people will still be eating only 40kg; the Chinese average will be 85kg per person per year.

Milk consumption is currently no more than 10 litres per capita per year, in comparison with 84 li-tres for the average American and 90 litres for the

average New Zealander. The Chinese consump-tion of butter and cheese is negligible whereas in the US 2.1kg of butter and 16kg of cheese are con-sumed per person per year, and New Zealanders consume 6.3kg butter and 7.1kg cheese each.

If the Chinese westernisation of diet continues to dairy products in the same way that it has in meat, an awful lot of cows will be needed.

China is already concerned about environmen-tal pollution and impact of agricultural produc-tion systems on waterways. Its constitution stip-ulates that “the state protects and improves the

living environment and ecological environment, prevents pollution and other public hazard,” but it has a population increase of 13 million people a year. Urbanisation is increasing as well, increas-ing pressures on the peri-urban productive land that provides about 70% of current dairy and veg-etable needs.

Now at least 900 local rules and regulations ap-ply to environmental protection and management of resources. However, enforcing the regulations is difficult. The government has acknowledged the rapid growth of the economy has been at the expense of even faster damage to resources and the environment; China’s environmental prob-lem is actually a crisis, and immediate action is required.

The government’s goal is to increase agricul-tural production sustainably and control pollu-tion at source. This is possible with the increasing number of modern housed-animal facilities such as those being developed by Fonterra near Beijing. For these dairies greenhouse gas (GHG) emission per kg of milk solid are best practice and point sources of pollution can be captured. For the tradi-tional small dairy herd, however, GHGs are three times greater than best practice, and the potential for contamination of waterways with effluent is high. The case is similar for piggeries; although there are some efficient production houses.

At least part of the problem is that farmers in China are regarded as ‘peasants’. They are mostly poorly educated and because children have been encouraged to seek education in cities, and not come back, the rural population is ageing. Cor-porate farming with housed animals is being dis-cussed openly.

The western world’s greatest potential to as-sist China in moving into sustainable agricultural production is likely to be through precision agri-culture and engineering. Housing animals and processing the edible product (milk and meat) near the population hubs makes sense but only if sustainable methods of bringing in fodder and managing effluent can be developed.

In the meantime, animal protein for human consumption can still be exported to China with a small GHG footprint – and the food is known to be ‘safe’.

Jacqueline Rowarth is Professor of Pastoral Ag-riculture, Massey University, NZ. She attended the annual China Association of Science and Technol-ogy Conference in Tainjin.

China needs help to overcome problems

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DAIRY NEWS AUSTRALIA // octoBer 201118

agribuSiNESS

ShAREhoLDERS IN the Hast-ings Valley Dairy Co-operative have voted to sell its Wauchope dairy factory to Indian company Sungrow Australia.

A bid in June of almost $3 mil-lion by Sungrow Australia was endorsed by the board and late last month won the support of 92% of members.

Co-op chief executive Phillip Bryant said the deal – $2 million for the plant, equipment, land and buildings and $950,000 for the value of the stock on hand – is a win for farmers and guaran-tees the future of dairy process-ing in Wauchope.

The sale does not include the ownership of brand names,

trademarks and recipes devel-oped by factory staff and man-agement, which will be licensed to the purchaser for continuing manufacturing.

Bryant said local dairy farmers would benefit from the sale and the future of dairy processing in Wauchope was secure.

The Hastings Co-operative Ltd

is owned by at least 8900 share-holders and supports 12 local dairy farms. It was established in 1916 by a group of local dairy farmers who brought their milk to be processed and fresh fruit and vegetables to be marketed.

The co-op said jobs at the fac-tory will also be secure.

Sungrow has said it will in-

ject extra capital and resources into the factory to increase milk production, build a milk powder plant, and add Indian dairy prod-ucts to the current range of Hast-ings Valley Dairy Products. It in-tends to export at least 50% of its manufactured dairy products to the Gulf countries.

Sungrow chairman Chipra-

sean Gulave said in June the company would export cheese to Dubai.

“This is a manufacturing company wanting to start dairy business here in dairy cattle and dairy processing making liquid milk and milk powder. All dairy product will be exported to Gulf countries,” he said.

Sungrow buys Hastings Valley dairy factory

BUmpER gLoBAL prices, good work by Fonterra’s overseas businesses and the co-op’s sturdy hedg-ing of the high Kiwi dollar has secured NZ farmers their highest-ever payout: NZ$7.60/kgMS (less reten-tions) and 65 cents/share distributable profit for the 2010-11 milk season.

The payout (before reten-tions) is NZ$1.55 ahead of the prior period’s NZ$6.70 and exceeds the previous record of NZ$7.90 in 2008.  The cash payout (milk price plus dividend) of NZ$7.90 is also a record – NZ$1.53 higher than the prior pe-riod’s NZ$6.37. 

Rural New Zealand will benefit hugely from the NZ$10.6 billion river of cash flowing to farmers, says chairman Sir Henry van der Heyden. (This sum is NZ$2.4 billion more than in 2010 and NZ$1.5 billion more than Fonterra’s previ-ous best year in 2008.)

“That money flows back into the local economy as farmers reinvest in their businesses and buy more

farm supplies and equip-ment. An independent re-port last December by the New Zealand Institute of Economic Research (NZI-ER) found the [payout] ben-efits… extend well beyond farmers, as they spend about 50 cents of every dol-lar earned on locally pro-duced goods and services.”

The farmgate reflects the recent strength of world dairy markets, van der Hey-den says. Prices in some cat-egories reached or neared historical highs during the year.  And Fonterra’s hedg-ing shielded farmers from the worst of a stronger New Zealand dollar.

“We also benefited from record milk production, as some of the best autumn conditions in recent years offset poor weather in many regions earlier in the season.”

The 30c/share dividend equates to 69% of adjusted distributable profit, in the co-op’s stated range of 65-75% of profit after one-off items and other factors.

Net profit rose 13% af-

ter tax, to NZ$771 million (NZ$685 m) even after pay-ing farmer shareholders 29% more for the milk they supplied, says former chief executive Andrew Ferrier.

“Although the business was impacted by higher dairy ingredient prices and a fragile global economy, our underlying profitability showed solid growth over last year due to improve-ments within our ingre-dients businesses and the strength of our consumer brands.”

Normalised earnings from sales of standard and premium ingredients were 36% higher than the pre-vious year, an encourag-ing result in the face of a much higher farmgate milk price, Ferrier says. Earnings growth reflected higher ef-ficiencies in manufactur-ing and supply, a refined product mix and growth in higher-margin premium in-gredients sales.

Consumer business sales hit a new record of NZ$6.1 billion. A standout here is Asia/Africa and the Mid-

dle East, where normalised earnings rose 12%, Ferrier says.  “High quality nutri-tional and foodservice so-lutions [are leveraging] our power brands Anchor, An-lene and Anmum.”

Australia/New Zea-land earnings fell 17% to NZ$252m (A$303m) because of “fiercely com-pressed margins.” Earnings

were unchanged in key Latin American markets (NZ$119m).

Forecast payout for the current 2012 season and 2012 financial year is a farmgate milk price of NZ$6.75/kgMS and distrib-utable profit in a range 40-50 cents/share, reflecting a “softening of global com-modity prices since early

Record river of cash for NZ farmers

record results for fonterra• 13% higher after-tax profit: $771 million.

• 19% higher revenue: $19.9 billion – a record.

• Dividend rises to 30 cents/share, a 3 cents/share (11% up on last year’s 27 cents/share).

• Strongest-ever balance sheet: borrowing ratio of 41.8% (44.9%).

• Record collection of 1346 million kgMS raw milk in the 2011 season (5% up on the prior season).

• Dairy exports for the year totalled 2.1 million tonnes, another record.

Brands business suffers

A mILk price freeze in New Zealand affected Fonterra’s consumer business earnings.

The Australia and New Zealand (ANZ) business rev-enue increased 14.6% to NZ $4.4 billion, but gross profit fell 13.5% to NZ $333 million. Trading was hit by various factors in Australia and New Zealand, the co-op says.

“New Zealand operations experienced a decline in volumes resulting from price increases that reflected the cost of higher commodity prices. In February 2011, Fonterra Brands froze the price at which it sells liquid milk to retailers, absorbing cost increases until January 2012.”

Ice cream maker Tip Top, a division of ANZ, grew sales strongly but product losses during the Christch-urch earthquake cost NZ $3 million.

Consumers in Australia and New Zealand remained cautious in their food shopping looking for value and price ‘knockdowns’.

Sales in Australia of higher margin products such as cheese, butter and yoghurt helped the business

The ANZ segment includes a division collecting milk from Australian farmers and making ingredients mostly for export. This division did well, exceeding the previous year’s earnings because of ingredients prices.

Fonterra holds the largest market share in dairy consumer business in Australia and New Zealand and “given its primary exposure to mature markets and the particularly difficult conditions this year, ANZ has done well relative to some of its peers in Australia and New Zealand”.

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DAIRY NEWS AUSTRALIA // octoBer 2011 19

agribuSiNESS

IN ThE Dairy 2011: Situa-tion & Outlook - September Update, Dairy Australia maintained its $5.10 - $5.50kg milk solids (MS) forecast range for southern full year prices.

However, in recognition of changing market condi-tions, expectations are now toward the lower end of that range. Several reasons for this are detailed below.

At the latest globalDairy-Trade auction on Septem-ber 20 prices dropped to their lowest level in more than a year. The trade-weighted average price for all products was down 2.1% from the previous auction and it was the seventh straight decline.

Looking to the future, the September release of the Rabobank Dairy Quarterly forecasts that international dairy prices will ease as major economies slow and dairy product surpluses build on the world market.

Further, the latest Dairy Australia survey of spot export prices also saw most products continue their downward trend from the last survey, including butter (-4.3%), AMF (-7.7%), SMP (-4.1%) and WMP (-2.7%).

There are three main reasons why prices are softening: the US and EU economies are struggling; the seasonal reduction in China imports; and in-creasing supplies from US, EU, NZ and Argentina.

Perhaps the biggest risk to commodity prices is lower dairy consumption in the US and EU.

Both economies are stagnating into potential economic recession and as a result consumer demand is softening.

US consumers look to be shifting away from fluid milk and this is reflected in Federal and Californian data showing estimated milk use volume for May to July 2011 being down 2.4% from 2010 and 4.3% from 2009.

In the IMF’s biannual World Economic Outlook (September 2011), Euro-pean growth for 2011 was cut from 2% to 1.6%. The IMF US forecast for 2011 growth reduced to 1.6% from a 2.5% forecast made in June. Reduced growth in both major economies will tend to make local consum-ers more conservative with less spending on product groups like dairy.

China remains the pri-mary driver behind global WMP markets. Imports from China – especially

whole milk powder (WMP) – have been light over the last few months. However, the reduced volumes came off a very high demand period in prior months and reflect a seasonal slow-down.

The IMF expects the Chinese economy to grow at 9.5% for 2011 and 9% for 2012. This assumes the government’s efforts to curb domestic inflation do not negatively impact the growth.

The improving supply outlook is also weighing on market sentiment. US milk production, according to the USDA, for year-to-date at August was up 1.6% at on the same period of 2010.

The latest World Agricul-tural Supply and Demand Estimate (WASDE) report forecasts milk output in 2011 at 86.2 billion litres, an increase of 1.5%. This forecast may be challenged if feed costs continue to escalate and commodity prices fall further.

Milk deliveries in the EU are quite strong. Intake in the first seven months has already been about 2.3% or 1.8b litres higher than in Jan-July 2010. Total deliver-ies in Jan-July 2011 for the EU-27 were 80.5b litres.

In the first six months of 2011, New Zealand milk production was up 12.2% from last year. During the period June 1 to August 15, milk production was running ahead of the same period in 2010 by 9.9%. Output is expected to re-main well above a year ago with solid growth in milk flows for the balance of the season.

Milk production in Argentina has been very strong at 3.4b litres for YTD June. This is a 15.9% in-crease over the same period in 2010. The forecast for total 2011 is a rise of around 10% to a level of 10.5bn litres.

The US and Europe are experiencing dampened domestic demand at a time of strong growth in milk production.

Positive signs are also coming from the southern hemisphere indicating a strong dairy season.

If demand weakens in

global iMpactdaMiaN

richardSoN

World changes soften farmgate forecastthe US and Europe, these conditions are likely to result in surplus dairy product and a downward affect on dairy commodity prices.

These factors are not supporting a positive environment for strong farm-gate price growth and are worth keeping an eye on to track where commod-ity prices are headed.

Damian Richardson is industry analyst with Dairy Australia.

DAIRY NEWS AUSTRALIA // octoBer 201120

MaNagEMENt

gIppSLAND DAIRY farm-er Steve Ronalds expects to save at least $3200 in annu-al energy costs after install-ing Green Cleaning – a new system to clean milking machines that saves energy, water and chemicals.

Ronalds is one of the first farmers in the world to have

a commercial Green Clean-ing system installed at his Jindivick farm.

Early tests indicate sav-ings in electricity for heat-ing water of 74%, water savings of 42% and an es-timated reduction in green-house gas emissions of 44 tonnes annually.

He expects the unit to pay for itself in about eight years, but with rising power costs and futher refine-ments to the system, this could be sooner.

Ronalds and business partner Andrew Ronalds operate two dairy farms at Jindivick in West Gippsland

under the business name Dairy Cropping Australia. He has been farming for nearly 20 years and is the fourth generation farmer on the 140ha farm he and Andrew lease from his par-ents.

They have a split calving herd of 70% Jersey and 30%

Holstein cows, peaking at 400 milkers. The recently build cow shed is a herring-bone 20 aside double-up with rapid exit gates.

Dairy Cropping Australia is one of the first farm busi-nesses in the world to have a commercial Green Clean-ing system installed.

Green Cleaning systems operate at lower tempera-tures, re-use the wash solu-tions and utilise energy ef-ficient principles to deliver substantial operating cost savings for farmers.

The potential water sav-ings, allowing Ronalds to make the best use of his high quality water, was a key driver towards install-ing the new technology. Rain water is collected and stored on farm but can run

short in drier years.Power savings, and

therefore cost savings, was the other reason Ronalds decided to install the sys-tem.

“If the price of the units is reasonable, the payback pe-

riod should be quite quick, and will justify the capital outlay of the business,” he said.

The fully automated sys-tem was supplied by GEA Farm Technologies and was commissioned in February.

The system comprises three purpose-built, fully insulated 750 litre plastic storage tanks to separately store the rinse water, al-kaline detergent and the acid sanitiser solutions. A controller, chemical dosing system, water supply and pipework to connect the tanks to the wash line are the other components.

The system uses a heat recovery unit and is de-signed to utilise waste heat from the refrigeration sys-tem. The heat is recovered in a separate 450l tank which can heat water to around 50 degrees C during each milking. This water is used as source water for the rinse tank, to re-circulate and heat the stored alkaline solution, and to top up the hot water service.

Green Cleaning systems operate at much lower tem-peratures than convention-al hot wash systems. The primary source of water heating for machine clean-ing is the heat re-capture unit, with the conventional hot water service available for back-up if required. Ex-cellent insulation and en-ergy efficient design mini-mises standing heat losses.

The detergent concen-trations are automatically monitored and the tanks are dosed with chemicals and topped up with rain water as required.

The system only needs a small daily volume (about

700-800 litres) of good quality, clean water for the pre-rinse and to top-up the cleaning solutions.

An early analy-sis revealed the amount of elec-tricity used for

heating water has been re-duced by 74%.

Ronalds has also noticed a significant reduction in the time it takes to cool his milk since the system was installed. On hotter days the cooling time is being re-duced from 1 ½ hours to an hour. This bonus saving is being delivered by the heat recovery unit (on the refrig-eration system).

The volume of water Ronalds uses for cleaning the plant has been reduced by 42%, saving the farm 0.33ml of good quality wa-ter per year. Greenhouse gas emissions will be re-duced in line with the en-ergy savings.

Ronalds and his milk company rep, Dale Lang, from United Dairy Power, have been keeping a close eye on milk quality dur-ing the start up phase. Al-though some adjustments are still being made to the chemicals, the plant has been cleaning well and the milk quality has remained in the premium band. This is expected after every milking as the system uses a consistent regime.

“With increasing elec-tricity prices and incon-sistent water availability through the seasons, this technology makes sense. Dairy Cropping Australia is always looking to make savings where we can and improve overall business efficiency.”

Green cleaning cuts power costs

Who: Steve ronalds WhErE: Jindivick What: Green cleaning

Left. Steve Ronalds expects to save $3200 in annual energy costs with his new milking machine cleaning unit.

Below. The system comprises three purpose-built, fully insulated 750 litre plastic storage tanks to separately store the rinse water, alkaline detergent and the acid sanitiser solutions.

An early analysis revealed the amount of electricity used for heating water has been reduced by 74%.

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MaNagEMENt

ALThoUgh ThEY run Holsteins and Jer-seys in their herd, the McDowall family aims to keep the two breeds as pure as pos-sible.

To achieve this goal they have moved away from the common practice of using a Jersey bull over maiden Holstein heifers and have instead made a major investment in sexed semen using selected calving ease sires from the ABS Sexation program.

Kevin and Frances Mc-Dowell, with sons Paul and Peter, milk 530 cows (65% Holstein, 35% Jersey) at Childers Cove in south-west Victoria.

They foresaw the advan-tages of sexed semen early in its introduction to the dairy industry and are now reaping the rewards, with a large number of qual-ity heifers bred for type and production traits they want-ed to build into the herd.

The McDowalls are av-eraging 90% heifer calves. This year 170 heifers from the herd have been submitted to sexed se-men in first-round joining, using both blan-ket and PG programs.

Tim and Neville Pulham of ABS Aus-tralia are responsible for the AI work on the heifers and for scheduling and managing the synchronisation program, while the McDowalls undertake most of the AI work on the mature cows.

Eventually, the family plans to milk

around 1000 cows split into two herds, one managed by Peter and the other by Paul. A new rotary is currently under construc-tion.

This year they bought in 150 heifers in order to fast-track the expansion program and these were also joined to sexed semen.

With milk factories offering price incen-tives to farmers who can produce milk on a flatter curve, the McDowalls run a split

joining program, submitting 80% at the end of May and the remainder in November.

Irrigation enables them to grow pasture throughout the year and to milk through the late summer and au-tumn to take advantage of the higher milk price.

The split calving pro-gram has the added bonus of enabling them to carry over empty cows, and heif-ers that are lighter or late, to the next joining.

Sexation sires are select-ed on type, pedigree and calving ease (Holsteins).

Sires used over the heifers this year were Focus, Isley and Dragon for the Holsteins and Legal for the Jerseys.

As the cost of sexed semen has decreased over the past five years, the variety of sexed sires available has increased.

The McDowalls expect to be using sexed semen in preference to buying in replace-ments in order to ensure the quality of the herd continues to improve as they expand.

Sexed semen fuels expansion

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Ensiling after the wet

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Waiting for paddocks to dry out gives you time to think about cutting crops for silage.

Crops such as oats, barley, wheat, triticale and ryecorn which have been affected by unfavourable weather can be ensiled.

They are best either cut at either flag leaf/boot-early ear emergence for a higher-quality silage, or at soft-dough stage for a higher yield/lower protein and energy.

Advice delivered through Project 3030 suggests that with the carryover stocks of cheaper, poorer-quality hay from last year, many farmers might find it better to sacrifice some yield and go for an earlier cut of higher-quality material.

Cereals should not be harvested at the clear liquid/early milk stages. At this stage the soluble sugars in the plant are being converted into starch in the heads. The nutritive value at this stage is often reduced and palatability of fodder made at this stage is sometimes greatly reduced.

The stage of growth of the crop at harvest will determine whether it is mown and wilted before harvesting or direct cut and ensiled as a ‘standing’ crop.

Cutting height is usually 7-10cm above ground level. Cutting higher will slightly lift the nutritive value, but reduce yields.

A higher cutting height will also keep the mown swath higher off the ground, allowing more airflow under the crop and create a slightly faster wilting rate.

A higher cutting height will also reduce the risk of soil contamination from other equipment operations such as raking.

However, cutting at greater heights will leave behind increased levels of stubble which creates a problem of removal in the future and preparation for the next forage.

Harvesting at the flag leaf/boot to early ear emergence stage (18 to 22 per cent dry matter) will require the crop to be wilted to reach the desired dry matter content before harvesting.

Using a roller-type mower conditioner is recommended to crimp/crack the stems which will encourage quicker wilting.

Wilting rate will be increased by 20 – 40 per cent compared to mowing only. Conditioned stems will also allow a more reliable and easier ‘picking up’ by harvester and baler pick-ups. Unfortunately high-yielding crops will be relatively slow to wilt even if conditioned. In all cases, leaving the windrow as wide and thin as possible, and in a ‘fluffy’ state, will increase the wilting rate substantially.

The dry matter content of wheat, barley and triticale at the soft dough stage of growth will be in the desired dry matter range as a standing crop range. They can be either direct harvested with forage harvesters fitted with cutting fronts or pre-mown and immediately picked up by the forage harvester.

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DAIRY NEWS AUSTRALIA // octoBer 201122

MaNagEMENt

years and keeping it in a leafy productive state.

Lane said ryegrass was still the mainstay of dairy pastures in southern Aus-tralia and well managed ryegrass pastures were critical. Chicory is one choice of many forage op-tions and has strengths and weaknesses which must be explored.

Willow Grove farmer Andrew Balfour has grown chicory for the past six years. He said it is now an important part of his farm-ing system with about 15% of his farm sown to chicory.

He noted that it grows well on his sandy soils but does not persist well on wetter river flats.

Longwarry farmer John Versteden turned to chicory when his ryegrass pastures were suffering continual and extensive damage from cockchafers.

He has grown chicory for 2 ½ years and has around 20% of his pastures in a chicory and ryegrass mix and an additional 12% in pure chicory stands.

He said he was extremely happy with the perform-

ance of chicory on his farm but noted that it did not respond well to irrigation with effluent.

“I think the high levels of salt might have knocked it,” he said.

Buln Buln farmer Darryl Hammond sowed chicory for the first time a year ago and believes it to be “an outstanding forage option, very well suited to our farm.”

In the past Hammond had planted turnip and mil-let crops but found them difficult due to establish-ment issues and pests.

“It has been fabulous for us, I have never seen any-thing like it,” he said, not-ing that his use of chicory had coincided with the best season in 40 years.

Sown together with red clover, chicory is proving a success with cows happy to graze it.

The information session was run as part of The Fu-ture Ready Dairy Systems project. Further notes of the day are available from Gillian Hayman on 0428 345 493 or ghayman@dcsi.net.au

Farmers spruik chicory success

INSECT pEST numbers are at their lowest spring levels for several years but farmers are being warned not to become complacent.

Cesar Sustainable Agriculture consultant Stuart McColl told a Grassland Society Pasture Update at Kyneton, Victo-ria, last month that pest numbers were at their lowest for many years.

“Seasonal weather conditions don’t appear to have been conducive to insects but there will be a build up in spring with the warmer weather,” McColl said.

“In particular, farmers should start to look out for aphids, caterpillars and snails, but at the same time be careful not to spray the good insects.

“There are more beneficial than bad insects. A vast amount of the insects seen in paddocks are not pests to crops and pastures,” he said.

“Insecticides are often not selective and when sprayed may kill many beneficial insects as well as the pests tar-geted. In some cases, chemical sprays are simply a waste of time and money.”

McColl said farmers should properly identify insects and try to attain a good idea of their relative abundance across the paddock, rather than “just start spraying when they see a pest”.

“Incorrect identification of pests is a common problem for farmers who haven’t been trained in the field,” he said.

McColl advocates an integrated pest management sys-tem which includes chemical spraying but takes a holistic approach involving cultural controls, such as weed control, crop rotations and altering seeding rates and time of sow-ing when possible.

“The timing of any chemical application can also be very important. You need to be smart in how you use chemicals and it is wise to seek expert advice,” Mr McColl said.

“It is important to have chemicals as part of your plan but you must use them wisely. For example if the red-leg-ged earth mite is a common pest, farmers should now be starting to consider spring spraying to achieve some con-trol for next autumn,” he said.

Dairy farmers John Versteden, Darryl Hammond, Andrew Balfour, Tyran Jones and consultant Neil Lane, who all spoke about their success with chicory.

gIppSLAND DAIRY farm-ers discussed their success with chicory as a forage option at a workshop at Trafalgar last month.

Intelact Consulting’s Neil Lane discussed the latest research results and said chicory has proven itself against the scourge of cockchafers and during longer periods of dry condi-tions.

Chicory does not provide a great feed source through wet, cold winters; it thrives in spring and summer and after autumn rain.

“Ryegrass struggles past temperatures of 27 degrees, chicory will persist long after rye grass shuts down due to heat,” Lane said.

Lane has been involved in forage trials in partner-ship with the Department of Primary Industries 3030 project. He said chicory’s other strengths included resistance to attack from pasture pests, high nutritive value and ease of establishment.

Challenges of manage-ment include persistence into the second and third

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DAIRY NEWS AUSTRALIA // octoBer 2011 23

MaNagEMENt

WILLINgNESS To seek advice and try new management methods is the cor-nerstone of the Charles family’s success.

Darron and Veronica Charles, who milk 320 cows on 120ha in partnership with Darron’s mother, Lorraine, at Maw-banna, northwest Tasmania, won this year’s Tasmanian Dairy Business of the Year award, recording a return on assets of 6.2%.

Darron is the fourth generation of his fam-ily to dairy farm in the district. His parents, Bernard and Lorraine, bought the Mawbanna farm in 1989 and en-tered a share farming arrangement with James and Tammy White.

When the Whites left in 2000, Darron and Veronica made the de-cision to return from the mainland, where Darron was working as a diesel mechanic, and start milking.

They started as 30% sharefarmers with 180 spring calving cows – produc-ing about 900,000 litres of milk in their first year. (Bernard and Lorraine moved into Smithton about six years ago, as part of the succession plan, with Ber-nard passing away three years ago.)

They quickly learnt much had changed since Darron was younger.

“It’s changed a lot, dairy farming, since the late 80s to when I came home in 2000,” he said.

“Urea’s a new thing, and stocking rates had gone through the roof and eve-ryone had to become more efficient, be-cause the expenses have gone through the roof in the last 10, 20 years.”

They realised effective farm manage-ment – particularly pasture manage-ment and nitrogen use - would be criti-cal to their success so began to expand their knowledge.

They learnt much from their neigh-bours and took part in TIAR (Tasma-nian Institute of Agricultural Research) activities, including the pasture work-shop and discussion groups. They have also participated in the benchmarking

program since 2000 and enrolled this year in DairyTas cash flow budgeting program.

They have worked diligently to suc-ceed in certain areas they believe are integral to profitability. They aim to be a low cost winter milker – monitoring the milk price and feeding only if it is prof-

itable – and are flexible with their management so they can adapt the system to the season and milk price.

The farm is now pro-ducing about 1.6 million litres from 350 milkers through a diet of pasture and winter and summer crops.

The rotation length is set to coincide with leaf stage of ryegrass. This results in a 16-18 day rota-tion in spring, 21-24 days on irrigated pasture over summer with the dryland rotation length depend-

ing on rainfall but sometimes as slow as 60 days. Rotation extends to about 70 days in winter.

Target grazing residuals are 1500-1800kg dry matter/ha and dry cows are used to graze the paddocks if target re-siduals are not met.

Darron measures the pasture cover of the farm using a plate meter, usually on a fortnightly basis, although this can be weekly or monthly depending on pas-ture growth and time available.

The Charles’ have participated in a soil fertility monitoring project which mapped the soil fertility of their farm.

This map showed that phosphorus levels were high on the farm and as a re-sult, fertiliser inputs – and costs - have been reduced.

The regular pasture measurement allows growth rates to be monitored to ensure that there is no reduction in pasture growth as a result of lower fer-tiliser inputs. Darron believes preparing a nutrient budget before any addition of fertilisers will save around $30,000-$60,000 a year. They plan to conduct regular soil tests, with some selected paddocks only needing testing every

two to three years.The farm has 69 hectares of K-line ir-

rigation (29ha was installed this season) with a water storage capacity of 300

megalitres. Irrigation usually starts in mid-late October.

Crops are grown mainly for winter feed (20-30 hectares) but sometimes a cereal crop is grown for summer feed. A paddock is cropped for three years alter-nating between a brassica and a cereal.

Crops are fed to the cows from May to September with the target ration being 4kg DM of crop, 4kg DM of silage, 4kg DM grain and 4kg DM of grass per cow

per day during this period.The herd is predominantly

Friesian but there are an increas-ing number of crossbreds.

The herd is split calved with au-tumn calving starting on March 28 with the heifers and any carry-over spring cows, and on April 10 with the mature cows.

Calving start date for spring calving heifers is July 20 and for mature cows August 1. About 30% of cows are calved in autumn with the remaining 70% in spring.

The cows are milked through a 30-a-side, swing-over herringbone dairy. A grain feeding system was installed in

2003 and automatic cup removers in 2009.

The Charles’ are looking to expand milking numbers to 450-460 and will achieve this through purchases – they bought about 50 young heifers last year – and their breeding program.

The herd has been AI’d for about 30 years. This season the Charles’ have used sexed semen with the cows for the first time.

There is potential on the farm for further development by clearing trees. Recently a new area of 24ha has been cleared with 10ha being sown to pasture.

Continued expansion will depend on who the Charles’ supply next financial year – with current processor National Foods capping how much they will take – but with the right processor behind them, their future growth looks assured.

Darron believes preparing a nutrient budget before any addition of fertilisers will save $30,000-$60,000 a year.

Who:

Darron, Veronica and Lorraine charles WhErE:

Mawbanna What:

Dairy Business of theYear

Advice puts Tas farmers on top

Veronica, Darron and Lorraine Charles are expanding their operation at Mawbanna in Tasmania’s north west.

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DAIRY NEWS AUSTRALIA // octoBer 201124

MaNagEMENt

AN ANALYSIS of Bryan and Jo Dickson’s Holstein herd has highlighted the degree of insight genomic testing gives into a cow’s genetic make-up, compared with pedigree in-formation.

Bryan and Jo’s herd, Emu Bank Holsteins, is ranked in the top 10 for Australian Profit Ranking (APR). The couple farms with Bryan’s parents, Graeme and Shirley, at Terang in Western Victoria. Their 700-cow herd is bred entirely to artificial insemination (AI).

Dr Jennie Pryce compared the genomics relationship with the pedigree relationship of 49 cows in the Dickson’s herd. She was particularly interested in five full ET sisters (three pictured above). They were daughters of the French bull Roumare and Emu Banks Bullbar Pepita.

“Based on pedigree, we’d expect these daughters to share 50% of their DNA, and their ABVs based on parent average would be identical,” Pryce said.

But their genotype results revealed more genetic vari-ation than that. There are 70 Australian Selection Index (ASI) dollar units difference between the highest and low-est ASI sisters.

Mr Dickson said he would use the information to select the best two sisters to be flushed for embryo transfer.

“These cows are now on their first lactation so I’ll use a combination of production and genotype data to select the best two for flushing this season,” he said. “But the real value of genomics will be to genotype young females, so we can be more selective about which heifers to flush.”

Dickson plans to have about 30 heifer calves genotyped each year.

“We’ll have all our stud heifers genotyped as calves – that’s about 10% of the herd. The information will be re-ally useful for selecting the best young candidates for our embryo transfer program.”

He also sees potential value in the use of genotyping fe-males to confirm parentage and manage in-breeding.

Dairy farmers can now submit samples for genomic test-ing for cows in Australia, through the Holstein Australia service.

Testing highlightsgenetic variation

gENomICS IS expected to fast-track genetic gain in the Australian dairy indus-try, with predictions that its use for sire selection could double the rate of genetic gain in herds.

However, there are also benefits from genotyping females.

The initial uses of ge-nomic technology will be seen at the bull level with pre-screening of young sires and marketing of ge-

nomically tested bulls rap-idly becoming the norm.

However the next appli-cation of the technology – the testing of cows – will be at the farm level.

Dr Jennie Pryce, a senior research scientist with the Victorian Department of Primary Industries and a key member of the Dairy Futures CRC research team, says genotyping females for pedigree breeders could be a useful tool for heifer

sales, selecting the best re-placements, mating plans to control inbreeding and confirming parentage.

In time its application as a breeding tool for com-mercial heifers and cows will increase as both the reliability of the test and increases and costs come down.

Genomic testing allows a heifer’s breeding value to be calculated from birth. The reliability of this ABV(g) can

be as high as 60%.“That’s equivalent to a

cow with many lactation records and is a much high-er reliability than an ABV based on a heifer’s pedigree alone, which is about 30%,” she said.

Pryce said genotyping young heifers provides greater reliability and greater confidence to farm-ers when making breeding and culling decisions.

This technology also

enables breeders to evalu-ate the merit of full siblings which to date would only be based off parent average and therefore the ‘best’ ani-mal could not be readily de-termined. It will also allow for greater analysis of cow families in breeders herds.

As a result pedigree breeders may also use ABV(g)s in their mating plans to select females for flushing and to work out the best combination of

Genomics improving female selectionbull-cow matings.

Pryce said genotyping young heifers would also alleviate concerns over po-tential preferential treat-ment as the genomic part of the breeding value would be unbiased.

“This could result in higher rates of genetic gain in breeders’ herds and po-tentially greater sale prices for genotyped heifers or embryos. The idea is to maximise a specific breed-ing objective – such as APR – while constraining in-breeding.”

Pryce expects genomic testing of sires will see farmers using larger num-bers of bulls for shorter periods of time. Genera-tions will turnover more rapidly potentially making it harder to keep track of pedigrees.

“Genotyping gives us a

much more precise esti-mate of inbreeding than can be achieved with pedi-gree. So genotyping females may become a useful tool when using mating plans to manage inbreeding.”

Genomic testing can con-firm parentage with 100% certainty if the parents have also been genotyped.

“Using genotyping to work out parentage may be particularly useful for herds where large numbers of calves are born over a brief period, making it lo-gistically difficult to work out the sire and dam of every calf and to control in-breeding,” Pryce said.

ADHIS and Holstein Australia are investigating the delivery of such a serv-ice with more information regarding parentage dis-covery to be detailed in the coming months.

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DAIRY NEWS AUSTRALIA // octoBer 2011 25

aNiMal hEalth

liz coTTon

kEEpINg IT simple, making decisions based on labour and maximising on-farm efficiencies has proven a winning formula for third generation dairy farm-ers Kym and Kate Bartlett.

The Jervois Irrigation District family were recently named top dairy farmers for Central South Australia in the fifth annual Dairy Australia Australian Dairy Business of the Year awards.

“We try to run a very simple and streamlined operation and most of our decisions come back to labour: for ex-ample, we recently purchased an air seeder which makes it faster to get over paddocks and a new rake, for the same reason,” Kate said.

“When we feel that an investment will mean more time for Kym and I to do other jobs and increase our productivity while still being cost effective, we will make that purchase.”

The Bartletts are among the top 12 dairy businesses in the country, achiev-ing a return on capital of 9.3% and pro-ducing 1919kg milk solids/ha and an average of 25,555 litres of milk/ha/year from their herd of 220 pedigree Holstein cows.

Kym has worked on his family’s dairy farm since leaving school. When the couple took over in 2003, the first project was to install a new dairy: a sin-gle operator, fifteen aside with automat-ic rapid exit. The farm is flood irrigated, produces its own hay and sources grain from a local farmer.

The operation has one part-time staff member who milks three afternoons a week and most Sundays, freeing up Kym’s time to do other jobs around the farm, while Kate keeps a hand on the business side and stays involved with local industry groups, including chair-ing the Jervois Irrigators Trust and as a member of the Future of the Lower Mur-ray Swamp Group.

This year marks the second win for the family, who has entered the compe-tition for four years and ranked in the top three dairy businesses three times.

What makes the win even more com-pelling is the fact that up until twelve

months ago, the Bartlett’s home region of the Lower Murray Irrigation District was battling some of the worst drought conditions on record – and had done so for over four years.

Dairy farming in the grip of drought meant adapting quickly and scrutinis-ing every business decision but the Bar-tletts considered their situation a lucky one.

“We were very lucky going into the drought because we were in a secure financial situation so we could make business decisions without some of the stresses that others faced.

“We were also lucky because Kym knows his land so thoroughly, having grown up here and worked the land with his father for so many years before tak-ing over.

“This was a huge benefit and some-thing that you can’t buy, his instincts and the decisions we were able to make on the back of that knowledge were in-valuable.”

This inevitably meant carrying on business as “normally” as possible and without resorting to excessive spending on infrastructure.

“We had to adapt to what the drought threw our way – when we couldn’t grow grass, we supplementary fed. But even with this regime, we kept to a simple, low-cost system: no labour, no feed wag-on, no infrastructure and no feedlot.

“It was as close to a home-grown grass system as we could make it with cows fed bought-in hay in the paddocks and concentrate in the dairy. We continue to move the fence every day just like in normal times.”

The drought also meant that short term decision making became the norm but they keep thinking forward to a long term future. Although the drought has passed, the changing environment con-

tinues to impact how decisions are made on the Bartlett’s dairy.

“We just can’t look too far into the fu-ture, especially with all the unknowns surrounding water; so we just work with what we have, while we have it, and try to learn from the past and keep positive about the future.

“We tried not to buy infrastructure just for the drought but rather adapt as best we could to the drought and plan a future without drought. We purchased additional land when it became available knowing it would help in or out of drought.”

Feed availability was one of the main concerns during the drought.

One piece of infrastructure the Bar-tletts did buy during the drought, a pump for the edge of the river, was pur-chased so that an allocation could be drawn to irrigate one or two paddocks from the usual twenty.

Hay was bought in where it had never been before. Up to 14 bales a day were being fed out during the peak of the

drought, compared to today where one or two bales are being fed out.

The trialling and planting of dryland lucerne was a successful move to re-place the losses in irrigated feed.

Two years ago the lucerne was over-sown across irrigation land and “really helped” the cows maintain milk produc-tion through the drought. The concern now, however, with a high river and normal water table is will it survive with wet feet.

As the moisture profile of the soil dropped dramatically during the drought, large cracks began to form on the Bartlett’s farm land, some up to half a foot wide and up to a meter deep.

The hard soil and cracked laneways also posed a threat to the cattle, with lameness becoming apparent after a while.

“We re-rubbled the laneways earlier this year, but we were concerned about flood as the water was up to the top of the levee bank and after the stress of drought we were not sure the levee would hold, but we couldn’t go through another winter without doing it,” Kate said.

Prior to the drought, the Bartletts had

worked for three years on The Lower Murray Rehabilitation Project.

Under this project all water had to be metered as it left the main river channel and all runoff had to be held, and re-used, on the property during irrigation season.

For the Bartletts this meant putting in three metered siphons at the river’s edge and new delivery channels with new watering infrastructure.

Land was laser levelled for even water flow and to maximise water efficiency using flood irrigation. All runoff water was captured and directed to a re-use pond that they then ran a pipe and riser delivery system off, that then watered land not adjacent to the river edge deliv-ery channels

Despite the challenging conditions that have prevailed for much of the fam-ily’s dairying life they look to the future with optimism.

“We have begun re-lasering our ir-rigation land that was damaged in the drought and are moving back to per-manent pasture. We think the Lower Murray Irrigation Area, that is Below Lock One and above the lakes, is a great dairying area.”

Key decisions help battle drought

Who: Kym and Kate Bartlett WhErE: Woods Point What: SA Dairy Business of Year

Drought-induced hard soil and cracked laneways posed a threat to cattle, with lameness becoming apparent.

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DAIRY NEWS AUSTRALIA // octoBer 201126

gRoUND BREAkINg research by Vic-torian scientists has provided the key to eliminating ryegrass staggers in live-stock.

Researchers at the Department of Pri-mary Industries used new $2.5 million mass spectrometry equipment to un-lock the secrets of endophytes, or fungi, found in many pasture grasses.

The research means DPI scientists now know which endophytes can be safely added to pasture grass seeds to improve pasture productivity without

risking stock health.Ryegrass staggers is a serious problem

in livestock grazing perennial ryegrass dominant pastures in summer and au-tumn, sometimes causing significant stock losses.

The condition occurs when stock graze on pastures with grasses contain-ing fungal endophytes which produce certain harmful chemicals known as alkaloids. However, the fungi also pro-tect the plant and help to boost pasture productivity.

Project leader Professor German Spangenberg said seed companies were already inoculating pasture seed with fungi which were known to reduce the risk of staggers while also increasing pasture productivity.

“What this latest research means is that we know which combinations of fungi carry zero risk of causing ryegrass staggers but can also help to boost pas-ture productivity,” Prof Spangenberg said.

“In the foreseeable future we will be

able to provide seed companies with the information they need to inoculate seed with fungi that achieve productiv-ity gains that are well matched with the grass varieties but carry no risk of caus-ing staggers.”

Prof Spangenberg said scientists and agronomists already knew that certain strains of the endophyte fungus Neo-typhodium lolii were the main cause of ryegrass staggers.

He said through the research, the scientists now know how to better com-

bine the best endophytes with elite vari-eties of grasses.

The mass spectrometry platform es-tablished also underpins other research undertaken to help further boost pas-ture productivity, water use efficiency and to breed pastures better matched to ruminant livestock.

“There is potential to breed pasture varieties with less lignins, which reduce digestibility, and higher carbohydrates, biomass and nutrient quality,” Prof Spangenberg said.

aNiMal hEalth

AUSTRALIAN DAIRY cows are eating more grain/con-centrate supplements despite better pasture conditions, ac-cording to a new Dairy Aus-tralia report.

The average grain/concen-trate feeding rate on Austral-ian dairy farms in 2010/11 increased 2% on the previous year, from 1.58 to 1.66 tonnes/cow/year according to the 2011 Dairy Feeding Update. This continues a long-term trend.

Younger farmers fed their cows more grains/concen-trates than those aged over 40.

On average, larger herds were fed higher rates than smaller herds, although all herd sizes recorded slight in-creases.

Slightly more than half (54%) of farmers nationally chose to graze their herds and feed more than 1 tonne grain/concentrates in the dairy bail (feeding system 2 - see dia-gram below). This resulted in an average 6310 litres and 476kgMS/cow.

While farmers using Par-tial Mixed, Hybrid and Total Mixed Ration feeding systems (feeding systems 3, 4 and 5 - see diagram below) represented only 18% of all farmers na-

tionally, they produced 26% of total annual milk production.

The dairy industry’s total feed grain requirement was around 2.5m tonnes per year.

Dr Steve Little of Grains-2Milk said farmers continued to prefer to spot-buy their grain/concentrates as re-quired.

“However, more farmers with 300+cow herds used for-ward contracts – up to 26%, compared with 15% the previ-ous period. Among extra-large herds (500+ cows), the propor-tion was 36%, up from 21% in 2009/10.”

More farmers bought grain/concentrates directly from a stockfeed mill and fodder directly from a farmer; fewer bought through a merchant or trader.

Nationally, 65% of farm-ers implemented a transition feeding program pre-calving. However, only half of these used an approach which might provide cows with all the nu-tritional components of an integrated transition diet, and well over half did not feed the transition diet for long enough to gain the full cow health, fertility and milk production benefits.

On-farm capital invest-

ment in feed systems was unchanged from 2009/10 at 10% of respondents, with the number intending to invest in the next 12 months also very similar to last year.

The study, prepared by Dairy Australia’s Grains-2Milk program, provides an

overview of current market conditions and a snapshot of on-farm dairy feeding man-agement practices.

It used information from Dairy Australia’s Dairy 2011 Situation & Outlook report and 2011 National Dairy Farm-er Survey.

feed facts• 19% of farmers in Tasmania fed grazed

pasture only, which was considerably higher than in all other regions (ranging from 1% to 7%).

• Gippsland and Tasmanian farmers are the lowest users of partial mixed rations (PMrs) (5%).

• More farmers in northern Victoria/Riverina, NSW and Queensland used a PMr or hybrid feeding system using a feedpad/mixer wagon (feeding systems 3 and 4) than elsewhere in Australia (31-33%).

• Queensland farmers, especially in far north, were Australia’s lowest buyers of hay and silage (37-38%).

• Investment in feed systems in 2010/11 nationally was highest in SA (22%).

• Farmers in the Bega Valley were the most likely to purchase hay and silage (81%). And, at 78%, more Bega-district farmers than anywhere else fed cows a pre-calving transition diet.

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DAIRY NEWS AUSTRALIA // octoBer 2011 27

aNiMal hEalth

IN LAST month’s column, I wrote about the importance of keeping an open mind when looking at the symptoms of illness in the herd, and the important role that your veterinarian should play to ensure that you are treating the right disease with the right medication.

The reason for this is that it is actually the complex interaction between the cow, her environment and the bugs on the farm which must be diagnosed and treated.

I often wonder why we visit some herds frequently, diagnosing all manner of problems and working up plans to try and treat and prevent them, yet down the road is another farm we may only visit once every blue moon to pull out a rotten calf.

Has this other farmer cracked the code, and do they genuinely have no other problems, or is the actual problem a lack of looking?

I suspect it is actually the latter because in my conversations with the local knackery workers they tell tales of how they are run off their feet.

I know that most farm budgets are pretty tight and cutting back on calls to the vet for cows seen as a “lost cause” may seem like a good place to make savings. However, not making a diagnosis is almost always costing more money than investigating a problem.

These “involuntary culls”, as we euphemistically refer to them, represent a valuable resource to either diagnose herd level problems which cause sudden or lingering deaths, or even just to monitor trace mineral levels.

When I graduated, I was lucky enough to be able to submit samples to the regional vet lab network, at no cost to the farmer. Sadly, over the years state governments have cut back on vet lab services to save money, and the vibrant regional laboratory network was sacrificed at the alter of economic rationalisation.

Recently here in Victoria we have had access to some funding to assist in investigating significant diseases or unusual events.

I suspect similar things are available in other states.

Dairy farmers pay millions of dollars in industry levies and taxes. I strongly believe that you are entitled to demand a reasonable surveillance network, especially as recognition grows of the strong links between animal and human health with particular respect to emerging diseases.

Recently, using this funding pool, one of my colleagues visited a herd with anaemic, weak fresh cows.

It would have been reasonable for him to diagnose phosphorous deficiency, and continue to his next call, but because of the SDI funding, he collected samples and a diagnosis of Theileriosis was made.

Theileriosis is a blood borne parasite which has been causing problems for some time now in Queensland and NSW but it had not been diagnosed in the Goulburn Valley.

Subsequent discussion on the email list of the Australian Cattle Vets (where vets from all over Australia discuss their cases) has led to Theileria being diagnosed in Gippsland also.

Theileria is a parasite that has the potential to cause great losses to dairy farmers as there is no product registered for treatment in most Australian states. The dairy industry must use its resources to facilitate the registration of the treatment for Theileria, and should also lobby hard for further funding of disease surveillance and investigation.

However, ultimately it is time dairy farmers themselves recognise the

aNiMal hEalthrob boNaNNo

importance of making a diagnosis.

Whether it is calf diseases, mastitis, lameness or poor production, the solution is never just a simple shot of some drug. There are always management factors that can and should be addressed to try to prevent the problem occurring again.

When a sick or dead cow leaves the farm without a diagnosis or follow up, the opportunity to make

the changes required to prevent it happening again goes with her.

Your dairy veterinarian needs to be getting out onto your farm regularly in order to make that diagnosis. He or she can work with you, if requested, to prevent and not just treat diseases in your herd.

Rob Bonanno is president of the Australian Cattle Veterinarians Association and a director the Shepparton Veterinary Clinic.

Routine inspection detects disease

Not making a diagnosis almost always costs more money than investigating a problem.

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DAIRY NEWS AUSTRALIA // octoBer 201128

aNiMal hEalth

and what works for them.Interest in the Healthy Calves

workshops held so far in Gippsland, Tasmania and South Australia has been excellent. Participants

said the workshops “reinforced best practices” and provid-ed information and practices which could be “easily imple-mented and make a big difference to calf health”.

Colostrum management is one of the key topics covered in the one day Healthy Calves workshops and as part of this subject, farmers who attend are learning to use a simple tool called a Brix refractometer, a device used in viticulture to measure the sugar content of grapes, but dairy farmers are now using it to rapidly assess the quality of colostrums, he says.

“It has long been known newborn calves need good quality colostrum (the first milk produced by a cow after calving) to give them the best start in life. “

The workshop content is based on the practical experi-ence of Australian dairy farmers, animal scientists and vets. Topics covered also include pre-calving care, calf housing, nutrition, disease management and preparation for sale.

Better calf careAUSTRALIAN DAIRY farmers are continuing to raise the bar in their care of calves through hands-on work with calf rearing experts. Industry body Dairy Australia is rolling out workshops in dairy-ing regions as part of the Healthy Calves Program. It has a strong focus on the first week of life when the calf is most vulnerable.

Dairy Australia Healthy Calves project leader Jamie McNeil said the workshops arose from recent farmer surveys of calf rearing practices which found farmers were keen to learn more about best practices and calf management research.

“The workshops are designed to help farmers and calf rearers remain abreast of the latest de-velopments in calf rearing and raise awareness of recent changes in animal welfare standards and

regulations,” McNeil said.“The quality of calf rearing is

improving all the time, as farm-ers understand the value of rear-ing well grown, healthy herd re-placements and the importance of selling strong, fit and residue-free calves.”

The workshops, presented by leading dairy vets, also provide an opportunity for farmers to hear from each other about their calf rearing systems

Australian farmers are raising the bar in calf care with the help of a brix refractometer (right).

“It has long been known newborn calves need good quality colostrum”

hEAT STRESS affects herd milk production and in-come, but its impact on cow fertility, health and welfare last well beyond seasonal hot weather and can double a farm’s losses, says Dairy Australia, promoting its Cool Cows program.

It says most farmers notice falls in milk production when cows get hot. This results in substantial losses in milk income, but reduced in-calf rates, low milk protein and fat tests, liveweight loss, higher sometic cell counts, more clinical mastitis cases and other cow health problems further compound the losses. 

“If you can develop an effective heat stress man-agement program there are substantial benefits to be gained,” Cool Cows pro-gram leader Dr Steve Little said. These include higher summer milk production, increased 6-week/100-day in-calf rates, reduced loss of embroyos and  increased calf birth weights.

“The impacts on  cow fertility, health and wel-fare last well beyond the hot months.”

So how does heat affect milk production? Milk pro-duction drops 10-25% or more in high heat stress and 40% in extreme circum-stances, according to Dairy Australia.

Milk composition is af-fected by high-to-severe heat stress: milk protein percentage decreases by 0.2-0.4% and milk fat per-centage is more variable day-to-day, and may be se-verely depressed if ruminal acidosis occurs.

Milk quality is also af-fected. Sediment may in-crease if cows’ teats are al-lowed to be contaminated with mud and dung. Risk of udder infection increases, which, if occurs,  results in increased somatic cell counts.

It also increases risk to cow health. Risk of mastitis and laminitis, and ruminal acidosis and ketosis, also increase.

milk quality drops when cows face heat stress

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WhEN WAS the last time you calibrated your grain feeders in the dairy?

One of the often unforeseen problems with feeding grains to dairy cows is not so much the variation in energy and protein between each type and variety but rather the variation in ac-tual weight to volume between each load deliv-ered to the silo.

Mark Freeman of the Tasmanian Institute of Agricultural Research (TIAR) Dairy Centre says grain is usually bought by weight (for example, 30 tonne of grain is delivered).

“It is also usually fed by weight, where the cows receive 14kg dry matter (DM) of pasture per cow per day, for example, and we want them to

have intakes of 18kg DM/cow/day, so 4kg DM of grain is fed in the dairy to supplement the diet.

“However, grain varies in size and density – not just between types of grain, like wheat and oats, but also between batches of the same type of grain due to variety, climatic conditions and soil fertility. This means that the same weight of grain that differs in size and/or density will oc-cupy a different area.”

Freeman said this could mean a 20 tonne silo might hold 20 tonne of wheat but only 19 tonne of oats because of the different size of the grain. It could even mean the same silo could hold 20 tonne of one type of wheat but 22 tonne of a denser variety.

“This is important because when you look at your grain delivery system in the dairy, it generally also works on a volume rather than a weight basis. A set volume of grain is stored in a container and released when a cord or button is pressed or an augur will run for a set time dis-pensing a certain volume of grain.”

To address this difference in weight per vol-ume, grain density and weight is measured as kilograms per hectolitre.

Freeman said measurements of grain samples during last season has shown there can be dif-ferences of up to 40% in hectolitre weights be-tween different batches of grain.

“In practical terms this means that if you are not regularly calibrating the grain feeders, they could be delivering 40% more or less than what you have set them for. You may have set the grain feeders to deliver 3kg of grain per milking but they could be delivering anywhere from 1.8kg or 4.2 kg if they haven’t been calibrated to the dif-ferent densities of the grains.

“This can have implications on milk yield, with a drop in production as cows are being fed less than target, and animal health with cows being fed excess developing clinical or sub-clin-ical acidosis.

“It is therefore a good idea to regularly check the quantity of grain that is actually being deliv-ered through each feeder by weighing the grain and then adjusting the system to deliver the tar-get amount.”

Incorrect grain feeders can affect herd health

sue edmonds

A hEfTY dose of mastitis in an organic dairy herd can be very difficult to treat. So research and advice from Massey University trials pre-sented at a recent Waikato, New Zealand, or-ganic farmer and supporter group was welcome.

Mastitis prevention is better than cure, espe-cially in an organic herd, says Alan Thatcher of Massey University.

Thatcher, involved in a five year trial com-paring two small farms – one organic, one con-ventional – says because teat skin has no oil glands, it is prone to drying out. That makes it susceptible to damage, providing homes for bac-teria which can invade the milk duct where they breed and multiply.

Streptococcus uberis and Staphyloccus au-reus, two mastitis-causing bacteria, are normal

residents in many cows’ gut and faeces. Conse-quently, keeping the race close to the shed clean will help reduce transfer of bacteria into the shed. Thatcher says ensure the camber on both sides is a slope of 1:12 to allow rain to wash it clean and drain it.

Infection from pasture is less of a risk on all but the shortest rounds. “In pasture the bugs don’t live longer than two weeks, so with a longer rotation pastures are ‘clean’ by the next round.”

Stress, be it from inadequate feed, bullying, or weather such as persistent rain, can markedly reduce a cow’s immune response.

Staph aureus is mostly found on cow skin, and can be passed from cow to cow. Bullying of heifers when introduced to an adult herd can be stressful and allow bugs to be transferred.

When it comes to coping with Strep uberis, teat spraying is very important. Even when cups are rinsed or dunked in disinfectant between

cows, bacteria have been proven able to be car-ried across to the next nine cows. Not all of these would develop mastitis, Thatcher says, but the threat is there, because any flaw or nick in the liners will retain bacteria. He recommends changing liners every 2500 milkings (every cow milked = one milking) or twice a year.

Irregular pulsation leading to backjetting of milk can also cause bugs to be reintroduced to the udder. Inspecting teats, particularly on young cows, could show up machine inefficien-cy. Constant vigilance is necessary, identifying and keeping infected cows separate, and milk-ing them last.

A long dried-off period can help reduce sus-ceptibility. He recommends post-milking strip-ping of 50-60ml of any infected quarter, using a clean glove each time. Bugs can’t spread from quarter to quarter internally, so drying off one infected teat can help.

Prevention key with mastitis

SELECTINg DAIRY bulls with mastitis resistance can help fine-tune mastitis management in the long term.

Dairy Australia’s Count-down project leader John Penry said that although most mastitis control is achieved through manage-ment practices and the en-vironment, genetics does have a small influence on mastitis resistance.

“Genetic variation for cell count exists and some bulls have been found to produce daughters which are more resistant to mastitis than others,” Dr Penry said.

While the heritability of mastitis resistance is rela-tively low at 10%, the ben-efits are permanent and ac-crue with each generation.

This means an estimated 10% of the variation in the Australian dairy cow popu-

lation is due to genetics and the other 90% is due to the management environment of the cow.

“For little or no cost you can make a long term dif-ference to the level of mas-titis in your herd by select-ing bulls from the mastitis resistance list in the Good Bulls Guide,” Penry said.

Australian Breeding Val-ues for mastitis resistance – cell count ABVs – are avail-

able for AI bulls, based on their daughters’ cell counts.

Improving mastitis re-sistance involves selecting bulls with a Cell Count ABV which is more than 100—the higher the Cell Count ABV, the greater the masti-tis resistance.

The difference between the best bull (Cell Count ABV of 171) and the worst bull (Cell Count ABV of 20) is estimated to be $100 net

profit per cow per year. Most bulls have a Cell Count ABV between 78 and 122.

Cell Count ABVs are in-corporated in the Austral-ian Profit Ranking because mastitis lowers farm profit-ability.

“If mastitis is part of your breeding plan then look at a bull’s Cell Count ABV, or use the mastitis resistance list in the Good Bulls Guide,” Penry said.

Select bulls for mastitis resistance

A 20 tonne silo can hold 20 tonne of wheat but only 19 tonne of oats because of the different size of the grain.

IN UDDER WORDS...

Dealing with Mastitis during lactationThe start of spring is great for pastures – but can play havoc with mastitis.Wet muddy conditions increase dirt on the teats and damage teat skin, encouraging the entry of bacteria through the end of the teat.Coopers® Animal Health Technical Services Advisor Dr Damian O’Brien said that the challenge is now on to control increasing mastitis levels.“Mastitis costs dairy producers a lot of money and time, but by increasing the focus on mastitis management, producers can minimise the level of infection and the cost to their operation,” Dr O’Brien said.“When using lactating cow intramammary antibiotics it is important to consider the milk withholding periods. The longer cows are out of the vat the greater the overall cost of the mastitis event.”“For instance, some mastitis treatments keep cows out of the vat for up to 8 milkings longer than others which can cost approximately $48 in lost milking income. So not only is the broad spectrum of mastitis control vital for good management, farmers need to consider the total time out of the vat to truly realise the impact of lactating cow intramammary mastitis options on overall cost to the business.”Dr O’Brien said that key control priorities in muddy conditions include:• Keeping teats in good condition

with disinfectant and emollient • Regular milking equipment checks

and maintenance to ensure correct vacuum pressures and pulses

• Washing and drying dirty teats prior to putting cups on

• Monitoring for clinical mastitis, and treating affected cows

• Managing the dairy environment Dr O’Brien said producers should consult with their veterinarian for long term herd mastitis monitoring and control measures.“Your vet can advise you on lactating cow intramammary antibiotics that have both a broad spectrum of activity, and short milk withholding periods, to return your farm to full production as quickly as possible.”

For more information on dealing with mastitis call Coopers on 1800 885 576 or talk to your local vet.

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DAIRY NEWS AUSTRALIA // octoBer 201130

MachiNEry & productS

gIppSLAND fARmER Cam Delbridge, Fish Creek, says that when he bought his Pichon Muck Runner manure spreader 12 years ago it was the first in the district and since then plenty of farmers in the area have looked at it and bought one for themselves.

He says the unit has paid for itself many times over in fertiliser savings.

Delbridge and wife Sheryl milk 400 cows, mainly Holsteins, “with some reds thrown in” on a 50 unit rotary on what was originally a run-down beef block when he moved there from Korumburra with his parents.

“We changed it to a dairy farm and built a 20 unit swing-over, then 15 years ago we installed the current rotary shed.”

They have three children; Angus is eight, Tyson, 5, and Chelsea is just 18 months.

Delbridge was in Tasmania helping out with the Young Farmers organisation at the Agfest Field days when he met Tom Palfridge, a dairy farmer from Mt Gambier, who markets the Muck Runners in Australia.

Palfridge pursued Delbridge to look seriously at the French-made Muck Runner for a long time before he made the decision to buy.

They purchased a 10,500

litre auto-fill model, and Delbridge reckons it was a very good decision.

“It’s been the most trouble-free machine on the farm, and after 12 years you can’t say that about most farm equipment. A few parts replacements, and that’s it. We leave it outside because it is fully galvanised.”

The tank on the Muck Runner fills in about three minutes from the effluent pond, and then they spread the manure onto paddocks using the tractor’s PTO economy setting of 750 rpm.

Delbridge says it shoots out of the rear of the tanker like a peacock tail, about 12 metres wide.

One 10,500 litre load covers about one hectare at a reasonable speed and he estimates a 20 minute turnaround to the furthest paddocks on the farm.

They usually do 10 to 15 loads at a time. “Occasionally it may be up to 30 loads.”

In a normal year they

would use it every 2 to 3 weeks, and operate it with either a John Deere 6830 or 6630 but, as Delbridge says, “you could pull it easily with less horsepower.”

“We spread it over the paddocks by following the cows. In summer you can go onto any paddock you like after the cows come out of it.

“You vary the thickness by the speed of the tractor. In the summertime, if there’s no rain you need to be a bit sensible about when you let the cows back in, but usually it’s about two weeks later.

“We get a good response

from the pasture growth – otherwise you wouldn’t use it, would you?

“The Muck Runner has paid for itself many times over in fertiliser savings.

“You can miss that particular paddock in the fertiliser rotation, which is every six weeks in the growing season. And in this case, that’s been the last 18 months!”

During the dry years, some paddocks had no fertiliser on them for two or three years. Now they all get some level of blend.

Delbridge said the EPA has been on-farm to check out their manure-

spreading procedures and are satisfied with it all.

The main Fish Creek property covers about 160 hectares and they have a number of other

blocks for dry cows and for running a few bullocks. The Delbridges are keen on trading in beef cattle.

Like many properties in Gippsland it has been an extraordinarily wet year,

so they have some cows on agistment the other side of Yarram.

Earlier this year they had 200mm rainfall in one day and Delbridge says they’ve

had to fix the tracks three times now.

This year they have made about 3000 rolls of hay for their own beef and dairy cattle,

and to sell, plus pit silage for the dairy cows. They grow turnips for summer feed and buy in all their grain.

They feed 7kg per cow per day in the shed and are

currently getting about 30 litres per day with 3.4% protein and 3.6% butterfat.

“I’m happy with that, considering the place is a quagmire but having said that, we’ve never been under 4% fat before,” Delbridge said.

At this stage they are happy to stay with around the current number of cows.

Working Clothes focuses 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

No mucking about with manure spreader

Cam Delbridge and son Tyson with his Pichon Muck Runner manure spreader.

The tank on the Muck Runner fills in about three minutes from the effluent pond.

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DAIRY NEWS AUSTRALIA // octoBer 2011 31

MachiNEry & productS

New JD loaders fit all modelsNEW hEAvY-DUTY loaders from John Deere equally suit many sizes of the company’s new and older model trac-tors.

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

The H Series loaders, compatible with many John Deere tractor models, have different levelling options, non-self levelling (NSL) or mechanical self-levelling (MSL), depending on customer needs and legal/safety requirements.

More cast-steel components in high-

stress, high-load areas of the loaders helps them handle big jobs with ease and extend working life, a JD spokes-man says.

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

“We’ve also designed the H Series with a lower torque tube and concealed oil lines within the loader boom to give it a cleaner look, improve over-the-hood visibility for the operator and to reduce potential for damage to oil lines during use.”

In addition, John Deere has added in-

tegrated parking stands and pins into the loader which, combined with a sin-gle-point hydraulic connection system, allows the loader to be quickly removed or reinstalled with virtually no oil loss. To give customers access to a wide va-riety of John Deere loader attachments, the company uses a common global car-rier that standardises equipment com-patibility worldwide.

“These are the most rugged, durable and versatile loaders on the market to-day,” says JD. “They are engineered to fit a wide variety of John Deere tractors quickly and easily and provide years of trouble-free operation.”

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WITh ThE agricultural industry striving to meet the 2012 national safety standards set by Safe Work Australia, Case IH is throw-ing farmers a lifeline by of-fering a free PRIME-LIFT loader with every JX or JXU tractor purchased prior to October 31.

Engineered specifically for use with Case IH trac-tors, the PRIME-LIFT loader dramatically enhances user safety, taking the guess-work out of loader opera-tion.

“The agricultural indus-try is one of four priority industries Safe Work Aus-tralia is focusing on under its 2012 strategy to reduce workplace injuries,” Case IH Marketing Manager Ker-ry McCauley said.

“Of the four priority in-dustries, agriculture has seen an 11% decrease in in-cident rates since the strat-egy commenced in 2002.

“This is certainly some-thing to be proud of, but we know the agricultural industry can build on this further. As one of the lead-ing equipment manufac-turers, farm safety is a key focus for Case IH and the

PRIME-LIFT loader is testa-ment to this with its range of optimal safety features.”

The PRIME-LIFT’s safety features include a loader self-leveling system which dramatically enhances visibility. Meanwhile, the precise mechanical level lift function eliminates negative angle creation throughout the lift cycle which reduces the chance of the tractor rolling over.

Farmers who take ad-vantage of this deal are eligible to take delivery of the adaptable and depend-able JX or JXU with a low 5.75% interest rate and no repayments for the first 12 months.

Built with loader work in mind, the JXU tractor is available in four models ranging from 86 to 113 Hp and a choice of 12 x 12 or 24 x 24 Power Shuttle trans-mission.

The down to earth JX tractor is also available in four models ranging from 59 to 89 Hp. Performance and value for money is guaranteed with the JX’s 20 x 12 Synchro Shuttle trans-mission. For those looking for a heavy duty small trac-tor, the JX Straddle comes in three models ranging from 56 to 76 Hp.

Case Ih offers free prime-lift loaders

Case IH is offering a free PRIME-LIFT loader with every JX or JXU tractor purchased prior to October 31.

The natural way of milking.Just like all our solutions for dairy farming, the new Lely Astronaut A4 milking robot has also been developed from a clear-cut starting point: the cow. The robot guarantees the highest achievable milk quality and thanks to its unique management tools you are in full control of your herd. Also designed with Australia’s grazing systems and larger herds in mind and therefore the Lely Astronaut A4 is ideally suited to Australian conditions. You can rely on the Lely Astronaut. And on us; 24/7.

It’s a Lely; the natural way of milking…

Live Life Lely!

Lely Australia Pty. Ltd., 48 Mackay St, Rochester, VIC 3561 Ph: (03) 5484 4000 Email: lelyaus@lely.com

www.thenaturalwayofmilking.com

SMARTER, FASTER, STRONGER!

innovators in agriculture

Please tick one or more of the items below and send to: Lely Australia PO Box 199 Rochester, VIC 3561Please send me the new ASTRONAUT A4 DVD.Please send me the new booklet “ASTRONAUT, a perfect fit for robotic milking down under”.I would like to find out how I can make robotic milking work on my farm.

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Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Phone . . . . . . . . . . . . . . . . . . . . . . . . . .

more freedommore controlmore milk

DAIRY NEWS AUSTRALIA // octoBer 201132

MachiNEry & productS

ELmoRE fIELD Days kicked off as we went to press with reports of solid enquiry from the dairy sector. Tim Lawrence from PFG says that he is looking forward to an interesting season, pointing out that enquiries are far more posi-tive than at the Henty Field Days, possibly because of the rain in between.

“The waiting is over and our sales programs are coming together on new Vicon balers,” Lawrence said.

There are also demonstrations arranged around the region of the interesting Simba line of tillage equipment, which

Rain sparks machinery inquiries appears to be very suitable for dairy operations.

On the Lely stand, general manager Clive Edwards said that there is more and more interest in robotic milking with the brand new A4 system on display.

This particular unit has been sold and will be com-missioned in Gippsland in November.

The dealership respon-sible for the installation is Traf Tractors, and dealer principal Murray Tuck said

that he is looking forward to an exciting time ahead.

They have an intense training session on the A4 arranged for the first two weeks of November with four people coming from New Zealand, four from Bega and two from Traf Tractors.

Traf Tractors have appointed Daniel Upston from Drouin to focus on the robotic milking side and Murray reckons that Daniel “is a good all-round-er on dairy.”

NEW productSchriS diNglE

Kubota has added power and deluxe features to its Basic L series.

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KUB7228.indd 1 6/10/11 9:56 AM

Lely was also demon-strating their new Welger 445 Master baler, plus Clive Edwards said there is strong interest in the new Welger Tornado baler/wrapper combination.

“Labour is always an issue for farmers and this variable chamber combi-nation offers savings in that area, along with more options for both silage and hay-making.”

good outlook for machinery salesALAN kIRSTEN at Agriview reports that this part of the year usually sees a lot of machinery deliver-ies, but it’s a little early as we go to press to gauge the situation for this quarter, although the indicators are solid.

“We have one of the best outlooks on machinery sales for a long time”, Kirsten said.

“There is plenty of enquiry on all areas of equipment. Any dampen-ing in demand is not due to the agricultural sector, but more about the world financial situation and other factors affecting the confidence to spend.”

He says that 2012 is shaping up to be a terrific year for the agricultural machinery industry.

New basic kubota modelskUBoTA hAS added power and deluxe features to its Basic L series with the release of new 32 and 38 horsepower L3200 and L3800 tractors (pictured). Both models are available with either gear drive or three range hydrostatic transmission and a 38 litre fuel tank.

Kubota’s new LA524 quick attach/detach front end loader and BH77 backhoe are performance matched to the L Series tractors. The LA524 level lift front end loader features a curved

boom design and boasts exceptional lifting power and bucket breakout force. The BH77 backhoe also offers a curved boom providing easy operation and visibility paired with a digging depth of 2350mm. An optional mechanical thumb further adds to their versatility. The BH77 backhoe is also quick attach/detach allowing the tractors to quickly convert back to a conventional tractor with three point linkage. Once the three point linkage is fitted a wide range of implements can then be fitted.progress on ma-nure systemWE REpoRTED in May that Lely in Europe had joined forces with Green Energy Technologies on the development of a sustain-able operational system to make optimal use of miner-als on the farm. The system is intended to process manure in a few days and means that less manure will need to be removed from the farm.

Lely says that the project is now taking a major step forward. Within the joint venture, GET and Lely will develop the system into a fully-fledged product, after which it will be sold and maintained under the Lely brand and through the Lely distribution channels.

During the coming months, the first AgriMo-DEM model will be thor-oughly tested and further developed to prepare the product for commercial installations.

They are convinced that the refining system has the potential to become one of the major solutions to current manure issues, not just for reducing emissions but also to allow farmers to become autonomous when it comes to their own energy production.

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

DAIRY NEWS AUSTRALIA // octoBer 2011 33

MachiNEry & productS

ThE USE of longer and stronger steel fence posts at closer-than-normal spacings of four metres, has given Gympie grazing family the Mulhollands a fencing solution that withstood the ultimate test - a flood submerging the low-lying paddocks to six metres above ground level.

Andy Mulholland’s family prop-erty Widgee Crossing has a 3km double frontage to the Mary River and Andy says this new fencing is the first on the place to have emerged undamaged from such a big flood.

“In the past we’ve found tradi-tional Y-shaped star pickets get bent over and even some of the timber fence posts get pulled out in the floods so we decided to go with War-atah GalStar Extreme posts when we replaced the fencing on the cul-tivation country last year,” he said.

“We used the hot dipped galva-nized posts 150mm longer than the traditional Y shaped steel pickets we utilized in the past.

When strung with four strands of Waratah 1.8mm high-tensile Longlife barbed wire, they literally stood up to the flood.

“When the water receded all we had to do was take the debris off the fence instead of rebuilding or re-pairing it like we’ve had to do in the past – the fence didn’t move at all.”

The property has been in the Mulholland family since the early 1870s and Mulholland hopes his switch in fence design will see a welcome end to the Widgee Cross-ing tradition of mending fences af-ter each flood.

“Fencing is an expensive piece of infrastructure and if you’re los-ing sections to flood every five or

six years, replacing it becomes a big regular capital expenditure and time cost. It’s now hopefully one we won’t have to make.”

“The black imported steel pick-ets we have used in the past were 165cm long and we drove them in the ground about 45cm. The silver

GalStar Extreme posts were 180cm long and we drove these in the ground about 60cm. By increasing the depth the post was driven by one third, the post’s resistance to overturning was significantly in-creased,” Andy said.

Tel. 13 1080

kRoNE hAS upgraded round balers for extra productivity this coming hay season.

Krone’s V1500 and V1800 Fortima variable chamber round balers were released earlier this year, and while their new modern design is appealing, the Ger-man designed balers are turning more heads due to several improvements to the inside of the machine.

A 2.15m wide camless pickup has been added with 5 tine rows, which has the Fortima baling faster than its predecessor the Krone Vario Pack.

Krone Australia Product Manager Lars Pasedag said that the Fortima uses 60% fewer parts than your typi-cal cam design pickup seen in other balers.

“It’s a superior design as the baler has less wear and tear while increasing its efficiency considerably,” Pasedag said.

“The chain and slat bale chamber system has been upgraded to intermesh with hay, straw and silage during baling to produce a denser bale”.

The system is known for its reliable work in all baling conditions, whether it is wet silage or dry baling conditions.

Bigger guide wheels instead of sprockets reduce noise of the chain and slat elevator and result in less chain wear, as the chain links do not change direc-tion as quickly. This also

makes the baler run much quieter compared to the Vario Pack baler.

The Fortima has an auto lube system for its chains, and greasing is made easy with accessible grease banks located on the baler.

A new electronics system

has been installed provid-ing intelligent diagnostics of key functions and pre-cise control of the baler.

“The new monitor design for the tractor cabin has some nice new features, it attaches magnetically and is very easy to operate.”

The Fortima V1500 baler makes bales from 90cm in diameter up to 1.5m in diameter, while the V1800 can make bales up to 1.8m in diameter.

The balers are available with an optional 17 knife cutting system which can chop material to 64mm in length.

Both balers are avail-able with an optional tandem axle system which is popular in wet and hilly conditions where stability is very important.

The tandem axle also allows for smoother trans-porting between paddocks which is popular with hay contractors.

Tel. 1800 334 653

krone increases efficiency in time for hay season

The baler has less wear and tear while increasing its efficiency considerably.

Flooding on the Mulholland family’s Gympie property, Widgee Crossing, from the Mary River.

Fences stand up to floodwaters

FREE PRIME-LIFT LOADER WITH EVERY JX OR JXU TRACTOR

Fancy a FREE Challenge Prime-Lift Loader*, low 5.75% interest rate and no repayments for the first 12 months?

Then hurry into your nearest Case IH Dealer, and don’t miss out on this great offer!*Conditions apply. 48 monthl term. Minimum 30% deposit required, monthly repayments, GST to be repaid in month 4. Offer expires 31st October 2011 or while stocks last on JX and JXU tractors. Offer cannot be used in conjunction with any other offer.

www.caseih.com1800 227 344

HURRY

OFFER ENDS

31ST OCTOBER!

DAIRY NEWS AUSTRALIA // octoBer 201134

MotoriNg

ThE NEW Peugeot 4008 will be released in Australia next year, with the compa-ny saying it is the ideal com-pact SUV for Australians.

Marketing manager Ri-chard Grant says the SUV is economical, stylish and easy to drive in the cit-ies; tough, reliable and ex-ceptionally flexible in the country.

“Australians have very specific and wide-ranging demands for these vehicles and there are a couple of 4008 models under devel-opment that are spot-on for us,” Grant said.

“Now it’s down to equip-ping these models suitably and negotiating the best possible prices for what is

arguably the most com-petitive car market in the world.”

He said the 4008 would be exceptional value for money.

Available items will in-clude many typical Peugeot touches, such as a pano-ramic glass roof, Bluetooth/USB connectivity and LED daytime running lights.

“The 4008 - in both two-wheel-drive and four-

wheel-drive - will comple-ment the existing 3008 and 4007 perfectly in the Peugeot model range, and all three will be on sale side-by-side,” Grant said.

“The compact SUV segment is exciting and growing and the 4008 will considerably broaden our appeal across the market.

“It will be our compact SUV while 3008 is our lux-ury compact offering. For its part the recently repo-sitioned 4007 will appeal to buyers who need some-thing a bit bigger, especially if they need to tow.”

Peugeot Automobiles Australia expects the 4008 to go on sale locally in the second quarter of next year.

ThE 2011 Honda Accord range has been refreshed, delivering more ele-gance, sophistication, additional fea-tures and greater value to customers.

Honda Australia marketing man-ager Stephen Collins said the Accord represents excellent value for money.

“Its spacious interior combines with superior comfort and handling with the perfect combination of pow-er and fuel economy.”

Since its introduction to Australia in 1977, the Accord nameplate has be-come a favourite with buyers and the motoring media alike.

The Accord was the first Japanese car to win the coveted Wheels Car of the Year award in 1977 and is Honda’s most decorated car globally.

The eighth-generation Accord won Drive Car of the Year in 2008 as well as Drive’s Large Car award the same year.

The Accord range offers buyers a choice of engines; a powerful 202 kW V6 with Variable Cylinder Man-agement (VCM) that allows the en-gine to operate on either six, four or three cylinders for maximum fuel and emission efficiency; and a 133 kW 2.4 litre four-cylinder engine that sips 8.7 litres/100kms (combined), an improvement on the previous figure, which was 8.8l/100kms.

The Accord’s exterior has been up-dated across the range, with the pre-vious black grille replaced with two chrome bars, along with a revised bumper design. At the rear, a chrome highlight strip across the boot-lid adds a touch of class.

Inside, the Accord has improved technology features including a USB port to allow connection of personal

music devices and A-pillar mounted Bluetooth. The Accord also has a new foldaway key design (jack-knife).

The Luxury variants are now equipped with satellite navigation, front parking sensors (V6L only) re-versing camera, a premium audio system with subwoofer, intelligent dual air-conditioning and new five twin-spoke 17 inch alloy wheels.

Honda refreshes Accord

peugeot releases new compact SUv

The new Peugeot 4008 will be on sale next year.

Don’t just seize the day.

JohnDeere.com.au/new

Change the way you work with the new John Deere 6R Series – our most versatile tractors yet. Models up to 154 kW of engine power (210 hp*), with a full 114 L/min hydraulic fl ow and up to 9,550 kg of rear hitch capacity, give you the muscle to handle big planters and deep tillage equipment. Need to move some materials? The all-new H360 and H380 Loaders were built specifi cally with these tractors in mind, giving you greater lift height and available single-point electrical and hydraulic connection. And when the day’s done, you can get home faster with transport speeds of up to 50 km/h.

Don’t just seize the day, transform it.

The all-new 6R Series Tractors with 125-154 kW of engine power (170-210 hp*).

Get to know the all-new 6R Series Tractors at our website or see your local John Deere dealer today.

Nothing Runs Like A Deere.™

Transform your workday with the 6R Series.

* Rated engine hp (ISO) per 97/68/EC.

There’s an easier way to create perfect bales

Own a bright future

Producing consistent, dense long-lasting bales doesn’t require a cloning operation. All you need is the New Holland BB9000 Large Rectangular Baler. It produces bales that can be stacked, loaded and sold with absolute confidence. So give yourself a scientif ic advantage, and bale with the best, the BB9000 Large Rectangular Baler from New Holland.

SEctioN hEad

DAIRY NEWS AUSTRALIA // octoBer 2011 37