Dairy News Australia July 2023

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Wet years ease the way

BY ISABEL DANDO

AFTER SUCCESSIVE seasons getting used to the wetter conditions that La Niña weather events bring, most of the country is due for a big shift with an El Niño event expected later this year.

Being one of the key climate drivers of rainfall patterns here in Australia, this change always brings potential to upset the apple cart.

However, resources built up over the past three years are likely to provide some insulation for domestic input markets.

While there is speculation around the severity of any potential event later this year, the one certainty is that El Niño conditions typically suppress rainfall across eastern Australia over the winter and spring.

Australian agriculture is somewhat prepared though.

One of the greatest legacies of the past three years has been continually improving water availability and resources built within water storages.

While the potential for drier than average conditions across large parts of the country is a concern, the wet seasons together with carryover rules in irrigation districts, have already underpinned availability for the 202324 water year.

Further improvements to determinations later into the season, however, hinge on future inflow conditions.

Temporary water prices are also at the mercy of inflow conditions.

If average or better inflow conditions occur over the coming months, minimal price movement is likely, while demand remains subdued.

If below average inflow conditions and rainfall prevail, we are likely to see some upward price movement, however, current resources and water availability will keep this in check, at least over the short-term, as prices continue to fall despite demand from water users increasing in recent months.

Heading into the 2023-24 water season, temporary water prices across northern Victoria and in the Murray Irrigation system are currently 56 per cent and 13 per cent below May last year, at $10/Ml and $2/Ml respectively.

A good autumn break and timely follow up rain has made for a decent start to the winter cropping season.

Fodder prices remain significantly elevated, and this is likely to continue while reliance on last season’s supply remains.

Looking ahead though, over the course of the new season, this will be increasingly mitigated by the expected return to average production, together with adequate on-farm feed supplies and low water prices.

While domestic water and feed input prices are more directly influenced by our climate and weather outlook, fertiliser values remain much more at the whim of geopolitical volatility and global supply pressures.

After the incredibly elevated prices of the last two years, falling natural gas prices and quietening purchasing demand around the world have contributed to an easing of fertiliser prices in recent months.

Compared to May last year, global indicative prices for diammonium phosphate (DAP), urea and muriate of potash (MOP) have fallen 36 per cent, 51 per cent and 30 per cent respectively.

Coupled with cheap irrigation water and strong water availability looking forward, falling prices are likely to incentivise increased purchasing and application rates this year, with a consequent boost to both crop production and the quality of pastures and homegrown feed.

So, in weighing up the potential for drier conditions to negatively impact the input markets that dairy farmers actively operate within, it is important to consider the events of the past three seasons.

Although this likely shift to drier El Niño will weigh on the availability of water and the production and supply of feed, resources built up over this same period are likely to mitigate the worst of it and support farmers through this change.

Global indicative fert ili ser prices

Diammonium phosphate (DAP)

Urea Potassium chloride/muriate of potash (MOP)

Milk prices hit new heights

BY GEOFF ADAMS

FARM GATE milk prices are headed for a new record if the trend during June continues.

According to the Milk Value Portal, the average farm gate price for southern Australia had lifted to about $9.15/kg milk solids in late June, compared to around $9 for the same time last year.

As Dairy News went to print, before the June 30 deadline for signing up to milk supply agreements, some processors were offering up to $10/kg MS, with some conditions.

Fonterra revised its opening price early in June by lifting it 35 cents to $9/kg MS for the 2023-24 season.

Saputo Dairy Australia advised suppliers on June 22 of a revised opening weighted average milk price of $9.15 to $9.30/kg MS for exclusive supply.

This is an increase of 17¢/kg butterfat and 34¢/kg protein. The revised milk price for exclusive supply is available to suppliers in the Northern region, South-West Victoria and South Australia region, Gippsland region and Tasmania (including King Island).

Australian Dairy Products Federation executive chairman John Williams said analysis by the federation and Fresh Agenda confirms that Australia’s dairy processors will continue to pay extremely competitive prices for milk throughout the 2023-24 season, despite the fact dairy commodity prices are significantly lower this year than they were 12 months ago.

“These are without doubt the highest on record opening milk prices in terms of the announced expected average milk prices that will be paid in the major southern regions this season, with a weighted average expected price of $9.15/kg MS,” Mr Williams said.

He said processors had taken broadly similar approaches to the pricing of milk this season, with relatively minor structural changes in milk supply agreements, especially in specific regional price incentives.

“These are very challenging times for Australian dairy processors,” he said.

“They are competing for milk supply in a shrinking national milk pool, and they are also competing with lower cost product both on the export and on the domestic front.

“On top of this, they are also contending with exorbitant overhead and input costs, (inclusive of energy, labour, transport and raw milk).

“Australian dairy processors are currently paying in the order of 20 per cent higher farm gate milk prices in Australia compared to New Zealand.

“This clearly places Australia at a competitive disadvantage not only in export markets, but it is also being reflected on our supermarket shelves with New Zealand-made cheese and butter priced significantly cheaper than Australian-made products.

“We know that imported products from New Zealand are up 22 per cent year-to-date (February 2023) and imports from the US are up 46 per cent.”

The Milk Value Portal run by the federation, has a range of price information.

Lactalis reviewed its offer to suppliers in Victoria and Tasmania, lifting the weighted average price for flat milk to $9.30/kg MS and for seasonal milk to $9.10/kg MS.

Australian Dairy Farmers Cooperative lifted its average farm gate price to $9.40/kg MS, averaging $9/kg MS for July to December 2023 and increasing it to $9.80/kg MS for January to June 2024.

PRICES NO SURPRISE SAY FARMERS

Brothers Markus and Phil Lang are second generation owners of Lang Dairies at Tatura, in northern Victoria.

Like all dairy farmers, they spent most of June talking about the prices processors were offering for the 2023-24 season.

The brothers supply Bega and said the price was a drop they were expecting.

“We have just come off a record price from last year, so we are not surprised things have backed off a bit,” Markus said.

“But of course, every bit that’s added is

LOOKING AT GLOBAL NUMBERS

As of June 1, the Oceania commodity milk value — a forward milk price indicator — was $6.47/kg MS versus $9.15/ kg MS for June 1 last year, or 29 per cent less.

At the same time, the Australian wholesale commodity milk value indicator was $8.28/kg MS — 17 per cent down from $9.99/kg MS on June 1 last year.

This reflects the disconnect between domestic wholesale prices and Oceania fundamentals due to the shortage in local milk production and major retailer pricing and sourcing practices for private label cheese.

From the Australian Dairy Products Federation

Bega Group has also lifted its price for suppliers on one-year contracts from an average of $9/kg MS for South Australian and Victorian suppliers while its farm gate price lifted to $10/kg MS for Bega Valley milk suppliers

Bulla Dairy Foods was offering prices between $9 and $9.80.

Bulla’s dairy and procurement general manager Rohan Davies said they had lifted their price and were keen to attract new suppliers.

cream on top for us.

“We also have come off a record year financially, plus consider there were the floods.”

Markus said the return of fertiliser prices from record highs was also helpful.

“Fertiliser has come back down. We were paying up to $1500 per tonne last year, but now it’s down to about $700.

“The prices of things are always going up but we’re getting more efficient every year.

“That’s my job as a business owner.”

Invergordon dairy farmer Ian Canobie said he and his wife were satisfied with the prices being offered by Bega.

“Having said that, we are planning to retire at the end of this season, so it won’t really affect us as much as other people,” Mr Canobie said.

“But I think everyone without a lot of debt will do well, particularly as there was so much water last year.”

Dairy farmer Markus Lang said the prices being offered by processors were expected after last year’s record offers.

Photo: Andy Wilson

The season looks ready to start with record farm gate prices.

Hoping for a strong season

BY GEOFF ADAMS

LANCASTER DAIRY farmers Mark and Charlotte Stevens are looking forward to the next financial year, but they don’t need a repeat of last year’s flooded spring.

The couple is about to start the second year of a two-year milk contract, with a price that is in the range that the other processors are now offering.

Last year should have been outstanding, but multiple factors have impacted northern Victorian farmers like the Stevens and pulled back their returns.

High input prices have eaten away at the profits and the exceptionally wet spring lopped off an estimated 25 per cent in production volume.

The frustration, as Mr Stevens points out, is that they were unable to capitalise on the higher prices.

Fertiliser, chemical and fuel prices all increased at rates far higher than inflation, and coupled with delivery delays, made for a frustrating time.

“Fertilisers went through the roof,” Mr Stevens said, before it eased off later in the season.

Getting quality hay was also a problem.

“There was too much flood damage to the crops.”

Their fuel costs also increased by about 30 per cent, and Mr Stevens estimated chemical costs, in some cases, doubled.

They expect to milk a peak of about 350 cows at 16-hour intervals for some parts of the year.

The practice is common in New Zealand, and Mr Stevens said the milk production had been the same as the regular twice daily intervals and with no cell count penalty.

When the spring calving surge hits they will revert to the more traditional pattern.

Labour has been challenging, but the Stevens have been fortunate to be able to recruit an apprentice, and they employ a fulltime manager.

Ms Stevens, a former business manager, said while it was useful to have agriculture skills, it was more important to have a good attitude.

“Experience is beneficial, but attitude is everything.”

The Stevens, who migrated to Australia from the south Island of New Zealand in 2015, are part of a discussion group which they find both challenging and rewarding.

FONTERRA TACKLES INDUSTRY CHALLENGES

The challenges of operating a milk processing company were discussed at an industry breakfast hosted by Fonterra Australia on June 14.

It was part of a series of breakfasts held across Victoria, and provided an opportunity for industry stakeholders to hear about the direction of the company and the season ahead. It was followed by a suppliers lunch later in the day.

Guest speakers included managing director René Dedoncker, Farm Source manager Matt Watt and Fonterra Australia Suppliers Council chair Alan Davenport.

Fonterra opened the season with a milk price of $8.65/kg of milk solids, but soon lifted the price to match rival Saputo who opened at $9 — a softer market setting was blamed for a slightly lower opening price down from $9.50 last year.

Mr Watt spoke about this season’s market challenges, which included reduced demand from China, however, a

shrinking Australian milk pool and a lower Australian dollar has offset some of the global negativity.

“The Australian milk pool has contracted to a 1995 level of production of around 8.1 billion litres which has led to competition for milk domestically,” Mr Watt said.

Last season’s wet spring smashed production data, with Fonterra supply in northern Victoria only now returning to positive production figures this month, however Victorian production figures as a whole are up three per cent and Tasmania 12 per cent.

“Globally we are not seeing supply growth and the availability for manufacturing milk looks set to fall under six billion litres,” Mr Watt said.

Mr Dedoncker spoke about the difficulty of running a business in the current climate.

He said increases in core costs — diesel, energy, labour and packaging — were costing the company an additional $25 million a month or $300 million a year.

He spoke about the importance of matching milk supply with assets and demand to future-proof the company in this difficult climate.

“We choose what we make to create

repeatable demand across multiple channels.”

He also spoke about the importance of the Fonterra Australia Suppliers Council, whose overarching role is to represent the interests and views of Fonterra suppliers across Victoria and Tasmania.

Initiatives through the council include the Proud to be a Dairy Farmer program and Get to Know Fonterra program, which includes a two-day overview of Fonterra Australia.

The council also encourages active participation in supplier meetings, industry forums and conferences, along with a desire to foster the next generation of farmers.

Mr Davenport said being involved in the council was extremely rewarding, particularly when it comes to the next generation.

“It encourages farmers to take a wider look at the industry and build important connections for your own business,” he said.

Fonterra Australia’s Farm Source director Matt Watt and managing director Rene Dedoncker were in Moama on June 14 as part of a northern Victoria industry breakfast.

Charlotte, Elsie, 9, and Mark Stevens on their Lancaster farm.

Top auctioneer gets a gong

BY GEOFF ADAMS

BRIAN LESLIE was just a young lad when a prominent livestock manager asked him what he wanted to do.

“I want your job,” Brian replied.

And he got the result in spades. Brian has become Australia’s leading dairy auctioneer and holds records for the highest priced dairy cow auctions, including one heifer which sold for $250,000 at International Dairy Week.

He also demonstrates encyclopedic knowledge of cow families, being able to recite pedigrees going back for multiple generations.

The skill was developed as a young boy.

“I was never that interested in school (he left at 15), so Dad encouraged me to read things like the Dairy Journal, and that’s how it started.”

Last month Brian received an Order of Australia (OAM) in the King’s Birthday honours list, for services to the dairy industry.

He has been intimately acquainted with the dairy industry, being born into a dairying family in West Gippsland, milking cows, being a dairy breeder, volunteering with a breed society, exhibiting cattle and judging in the ring.

Brian has left an indelible mark on the

Australian dairy scene, as a key founder of International Dairy Week and a director for more than 20 years.

He was a former co-owner of 21st Century Genetics, the owner of Brown and Leslie Dairy Agency and a recipient of the Les Bunn Memorial Award in 2008. He was a founding director of Dairy Livestock Services in 2008 where he still leads the dairy sales team.

Beginning with Gippsland and Northern agent Daryl Brown before he turned 16, Brian credits a large part of his success to working with knowledgable mentors, good people and many successful breeders.

He’s very conscious of the opportunities he was given as a young man, and in return, he has invested some of his time into encouraging the next generation at youth camps.

“I was lucky to get involved with pretty solid people in the dairy industry, so I wanted to give back to the kids.”

Brian established the inaugural All Breeds Dairy Youth Camp in 1987.

He went to Canada when he was 20, working with industry auctioneers and travelled back and forth over the next 20 years.

As for his prodigious memory for pedigrees, Brian says he reads a lot and has been fortunate

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Brian Leslie, with raised gavel and microphone, in his element. Dairy

to have a photographic memory.

“I have enjoyed it; it comes naturally to me; I’ve been doing it for a long time. I’ve been talking about cows I have sold for more than 40 years.”

Brian’s selling patter at the podium can be mesmerising for the uninitiated.

He introduces each lot with a description of the cow’s traits and genetic background.

The pace of his presentation rises and falls as he takes the bids and he frequently stops for a ‘break’ when he reminds bidders of the extensive genetic history, without having to refer to notes.

Then, back into it, with a machine gun delivery of the bids, leaving anyone in the room under no illusion that if they don’t bid, it would be a wasted opportunity.

Although working for a vendor when he’s a selling agent, Brian says he doesn’t compromise on the advice he gives prospective buyers.

“If I don’t think it’s a good fit for a buyer, I’ll tell them that’s not the one for you.”

Asked about his career, Brian frequently uses the words, “lucky” and “fortunate” and always says he loves the job.

Brian, 59, is married to Diane and they have a daughter, Rachel. He lives at Kialla near Shepparton in northern Victoria.

Contributions

Letters should be concise and carry the name and town address of the author, as well as a contact phone number, not for publication.

Brian Leslie, OAM.

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Monitoring is ‘magni cent’

BY AUDREY HAYES

SCOTT BROWNE has been working on his family farm in Gippsland for 15 years.

A lot has changed since he started using a cow monitoring system last season, opting for ear sensors because of the accuracy of the data.

It hasn’t just changed his work life, but his personal life as well.

“Once you get it all set up and going you think ‘why didn’t I do this earlier?’,” Scott said.

Being a cattle farmer initially wasn’t Scott’s passion. But after completing a building apprenticeship, he returned to work at the family farm and has been there ever since.

“I thought ‘I might give farming a go’, but I didn’t really want to milk cows. I always liked tractor work and that sort of thing. Now I’m the opposite. I like cattle work now and only like driving tractors a bit.”

Scott and his wife Bec are raising their children on the family farm. His parents are still involved in the business. Mum helps around calving time, and Dad still goes down to the shed every morning to do the last bit of milking.

Bec, who works as a schoolteacher, helps on the farm when she can with calving and milking.

“We’re pretty lucky, the worker we’ve got has been with us for three years, and then I’ve got a couple of relief milkers, so it takes the pressure off,” Scott said.

They run a mixed operation, with the farm separated for dairy and beef. Scott started using a cow monitoring system in 2021 to help with ease of operation.

“We used to put stickers on the back, and I’d always have to paint some cows, and I was over that. I’d always miss a few and I just wanted to be more accurate. A lot of times with them I’ve found a cow would rub the sticker off, so you’d never know whether to join.”

Scott went all-in with an ear sensor system for the first year, trusting that it would work without the need for added tail painting or stickers.

“We put them in about four-to-five months before joining, so we could collect a bit of data. I got that tip-off from a mate; he also put his in a bit earlier before joining.”

Scott said it was also an easy installation around that time. “It was good to do it in a dry period when there wasn’t so much going on.”

They installed Easy Dairy drafting gates at the same time. “I didn’t have any of that sort of stuff, but I’m finding them magnificent — best money I’ve spent.”

The monitoring system they use is CowManager, which has multiple modules for monitoring specific aspects of cow health and herd behaviour.

“We just use the Fertility Module (for heat detection) at the moment, and I’ve got a nutritionist that helps with nutrition advice. If my cows look healthy and they’re milking well, then I’m happy.”

When asked how his first joining with the

CowManager ear sensors went, Scott has one word: “magnificent”.

“I was able to just feed my calves and all that extra work and know the cows were getting caught, that’s a big plus. I wasn’t running around like a headless chook at any point, and I didn’t have to catch the cows manually with the auto draft gates. It took all the stress out.”

That added ease also came with improved results for the farm.

“We had the best results we’ve had in a long time. Our empty rate usually sits in the 20s, but this time it was about 17 to 18 per cent.

“The cost of things like CowManager always threw me a little, but there’s no comparison from no system to what we’re using now, it’s like chalk and cheese.”

Scott and his family are focusing on making things on the farm easier, and the cow monitoring system has helped a lot in making everyday work more efficient. It’s taken away some labour as well, which has been a huge stress reliever for Scott.

“It’s just been less work in the dairy with no tail paint. This year is the first year we’re doing all spring calving — we usually do split calving — but we got rid of all that and made it all one calving which has made it easy too.”

Scott’s excited to see what the system will bring him in the long run.

“I was sort of just feeling my way through it the first year. I’m excited to see how much we can improve again this year.”

Scott Browne’s dairy farm in Gippsland.

Photo: Yield Marketing

Sale shows Jersey demand

JERSEY AUSTRALIA’S Dairy’s Finest showcase sale has highlighted the growing demand for Jerseys with a strong increase in prices.

The sale average of $5800 with a top price of $13,000 represents a significant increase on the 2022 result of $5461 with a top of $9000.

Jersey Australia members have also dug deep to aid cancer research, raising $44,000 in honour of member Robert Bacon who died from cancer earlier this year.

The showcase sale and charity auction were held as part of Jersey Australia’s annual general meeting and conference at Coffs Harbour in May.

The top price of $13,000 was achieved by Lot 2, pick of the pair of two daughters from the 2023 International Dairy Week champion, Impression LR MB Vanahlem Festive-ET from sellers M. and L. Flemming, Luke Randle and F. and D. Borba.

It was purchased by a New Zealand partnership of Bellbrook Holsteins and Rachel Stewart.

Equal second highest price of $10,000 was achieved by Lot 5 Loxleigh Valant Bella EX91 Max, sold by the Akers family and purchased by Broadlin Jerseys, and Brookbora Eileen 141, sold by the Bacon family’s Brookbora Jerseys to John Lindsay from Hastings Jerseys, Wauhope.

The third annual Dairy’s Finest showcase sale attracted strong in-person and online audiences.

The sale was managed by Mitch Flemming and Daniel Bacon and conducted by Dairy Livestock Services auctioneer Brian Leslie and online through Elite Livestock Auctions. Mitch said it was a great result that reflected the growing popularity of Jerseys.

“It was a very pleasing result,” Mitch said.

“I watched it online and there was a lot of bidding activity, which was great to see.

“Jerseys are growing their stake in Australian dairy and this continued interest augers well for their future.”

In a separate charity auction, nearly $44,000 was raised for the Peter McCallum Cancer Centre in Melbourne as a tribute to long-standing Jersey breeder Robert Bacon.

Robert with wife Sandra and their family farmed the world-renowned Brookbora Jerseys at Tennyson in north-central Victoria.

Brookbora Jerseys has been a regular top herd on genetic merit, champion breeder and exhibitor at major shows across Australia and a breeder of many elite bulls in AI.

The auction was organised by Luke Wallace and Mitch, and Dairy Livestock Services and Elite Livestock Auctions and catalogue designer Hayley Boyd donated their services.

Luke said Robert left a lasting legacy on the Jersey breed and wider dairy industry both within Australia and across the globe.

“Brookbora helped to strengthen belief in Australian Jersey genetics here and overseas,” Luke said.

“We had terrific support from AI companies and breeders who donated on very short notice to this charity auction for a cause that everyone supports and terrific support from bidders.”

The auction featured all donated lots, including embryos and semen, paintings, prints, accommodation vouchers, calf feed, calf coats and a number of lots from the Dairy’s Finest sale also donated a percentage of the sale price.

Jersey Australia’s annual general meeting and conference were hosted by the Beautizone Jersey Cattle Club.

During the AGM, Lisa Broad was returned as president and Geoff Akers was appointed vice-president to replace outgoing member Brian Wilson, while Con Glennen was welcomed to the board.

Lot 5, Loxleigh Valent Bella 7210, sold for $10,000.

Photo: Andrew Cullen

Lot 14 was six heifers from Kings View Jerseys.

Photo: Simon Tognola

He’s gone but not forgotten

BY SOPHIE BALDWIN

THE DAIRY community is always well known for supporting their own, so it came as no surprise when Brookbora Jersey’s Robert Bacon died early this year, the industry jumped on board.

For wife Sandra and children Michelle and Daniel, that support resulted in raising an eye-watering $44,000 for cancer support through a special auction ‘In Memory of Bert’, held after Jersey Australia Dairy’s Finest Showcase Sale, in Coffs Harbour in May.

“Originally we didn’t know the auction was happening, but a couple of family friends had got together and it just grew from there,” Sandra said.

With some vendors donating a percentage of their sale proceeds and industry bodies donating goods and services, the auction ended up exceeding all expectations.

“In the end they had to put a stop to donations due to time constraints with the auction fast approaching,” Daniel said.

Both Sandra and Daniel attended the auction and were simply overwhelmed by the support.

“We were up the back of the room and we had tears rolling down our faces, it was very emotional for us on so many levels,” Sandra said.

Sandra had asked Robert when he was sick what would he do if he had all the money in the world? His simple reply was “donate it to cancer research so no-one else has to go through what we have”.

The family is now honouring his wish.

Sandra, Michelle and Daniel acknowledge while Robert would be embarrassed by all the fuss, he would be quietly delighted by the amount of money raised to help others.

“Dad was always a quiet achiever and just got on with the job,” Daniel said.

Sandra said his loves were always family, farming and friends and particularly over recent years, spending time with his four grandkids.

When it came to farming it was breeding cows and growing grass that Robert excelled at.

“Dad was always continually focused on improving the bottom end of the herd using every tool available from genomics to classification to cell count,” Daniel said.

Robert Bacon, principal of Brookbora Jersey Stud, in whose honour a charity auction raised $44,000 for cancer research.

He’s gone but not forgotten

Continued from page 11

“He loved data and, in the end, bred over 300 excellent cows.”

Robert’s dedication to breeding also saw the Brookbora herd hold the title for number one BPI herd, number one Jersey herd and premier breeder. They also have AI bulls in use around the world.

The Bacon family foray into dairy farming at Tennyson, in north-central Victoria, began in 1948 when Robert’s grandparents purchased the home farm.

In 1963 the Brookbora herd was registered.

In 1980 Robert left school to work on the farm. Initially Robert farmed with his brother Colin but in 2001, Robert and Sandra took over running the business — which now encompasses 283ha and a herd of 300 cows.

“Robert was proud of the fact he had finally gotten the farm and herd in order,” Sandra said.

Despite being a non-smoker, Robert was diagnosed with a rare form of lung cancer in February 2022.

While Sandra said she would sell everything tomorrow to have Robert back, she said at least Robert did have time to continue to mentor Daniel and pass on his knowledge.

Daniel will be the fourth generation to farm at Tennyson.

Robert enjoyed the camaraderie of showing cows. One of the last events he was well enough to attend was the Rochester Show where he saw Brookbora Vanahlem Enchantress win

Supreme Champion Cow.

“That was one of the last places he was able to visit,” Sandra said.

With the auction over, the family is

continuing with its fundraising efforts by participating in Run Melbourne in July with a team to honour Robert’s memory.

“Robert would be embarrassed but secretly

pleased by all the support and as a family, we just hope all this fundraising will be able to make a real difference and help someone else,” Sandra said.

Supreme Champion Cow at this year’s Rochester Show was Brookbora Vanahlem Enchantress owned by Robert, Susan and Daniel Bacon and led by Kayla Bradley. It was one of the last events Robert was able to attend.

Farmer hosts MP visit

SENIOR FEDERAL Labor MPs visited a dairy farm in Queensland recently to learn about issues affecting the industry.

Glamorgan Vale dairy farm Tim Beattie hosted Treasurer Jim Chalmers, Agriculture Minister Murray Watt and local MP Shayne Neumann.

The three Labor MPs were given a thorough briefing from Mr Beattie on how the enterprise operates, and the issues impacting dairy farmers. eastAUSmilk president Matt Trace, board member Kay Tommerup and member Errol Gerber were also on hand to help ensure the visitors took away the best possible understanding of industry issues.

The eastAUSmilk team pressed the MPs on many issues of importance to dairy farmers, including the behaviour of major retailers, inadequacies of current competition regulation and the Dairy Industry Code, business resilience and planning, on-farm technology uptake, and animal welfare.

The four dairy farmers spoke first-hand of the fears of dairy farmers across three states at the proposal for Coles to purchase milk processing plants from Saputo in NSW and Victoria.

Such an unprecedented level of control over the supply chain would allow Coles to severely impact the business of competitors, and once more drive farm gate milk prices down to poverty levels, as Coles and Woolworths did with dollar-a-litre milk, the group told the MPs.

The Australian Competition and Consumer Commission is currently reviewing the proposed purchase but can review only narrow competition issues.

eastAUSmilk wants the Federal Government to address this proposed purchase by looking more broadly at fairness, the need for a sustainable and profitable dairy industry, regional community resilience, and the community’s ongoing demand for locally sourced fresh milk.

Federal Treasurer Jim Chalmers.

Photo: Lukas Coch/AAP

The eastAUSmilk team pressed the MPs on many issues of importance to dairy farmers, including the behaviour of major retailers, inadequacies of current competition regulation and the Dairy Industry Code, business resilience and planning, on-farm technology uptake, and animal welfare.

NEWS IN BRIEF

Made by Cow closes doors

Raw milk brand, Made by Cow, has gone into voluntary administration.

The NSW-based company announced on May 28 it was ceasing production and had appointed KordaMentha as administrator.

The company marketed its products as the world’s first safe-to-drink raw milk.

Chief executive officer Wade Porter said the decision to close the doors had been made “with a heavy heart”.

“In this climate of uncertainty, growing interest rates and inflation, the business has faced economic uncertainty and supply chain challenges and, as a result, the very tough decision has been made to cease production,” Mr Porter said.

“Our morning coffee will never be the same, but it’s sure been good while it lasted.”

The brand was launched in 2016 and was on shelves in a number of outlets, including Coles and Woolworths supermarkets.

PURA lightens the load

PURA has reduced the amount of plastic used to produce all its two-litre milk bottles in South Australia, making PURA two-litre bottles among the lightest in Australia.

Each PURA two-litre bottle will now be reduced by one gram less plastic, making the total bottle weight just 38 grams compared to the older bottles at 39g. This contributes towards removing eight tonnes of plastic annually from circulation.

The reduction of plastic from milk bottles in SA now aligns it with the PURA milk bottles manufactured in other states.

Since 2019, PURA has removed more than 425 tonnes of plastic from its two-litre milk bottles nationally.

The reduced plastic ‘Better Bottles’ now applies to all variants, including Full Cream, Light Start, Lactose-Free Full Cream, Lactose-Free Light Start, and Skimmer in the two-litre bottles range.

Holstein Highlights heads west Holstein Australia is heading to Bunbury in Western Australia for its annual general meeting and awards dinner in September as part of Holstein Highlights 2023.

West Australian regional chair Lachlan Fry said interstate visitors could expect a warm welcome from WA members and a program that showcased the best of Bunbury and surrounding regions, some great restaurants and wineries and some prime WA herds.

“Our members are really excited to be hosting HA members from around the country for this year’s Holstein Highlights,” he said.

“We’ve pulled together a great program with visits to Carenda and Angelis Holsteins, a great venue for the national awards dinner — Bunbury’s Dolphin Discovery Centre overlooking Koombana Bay — and visits to some great wineries and attractions at the top end of the Margaret River region.”

Holstein Highlights Bunbury ’23 will run from Tuesday, September 19 to Thursday, September 21.

Registrations close September 1. To book, go to: https://neartail.com/au/ holsteinhighlights2023

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PURA two-litre milk bottles in South Australia now contain less plastic.

Milking the muster for ideas

BY JEANETTE SEVERS

GIPPSLAND DAIRY farmers were out in droves on June 7 for the annual GippsDairy Muster.

With a theme of ‘Rethink Develop Grow’, this year’s muster was held at Yarram with speakers, a panel of dairy farmers and workshops to milk for information and ideas.

The focus of the day was discussing how to identify common issues in the dairy industry — whether that be in the industry, in the workplace, or in the broader community — and how to relate those to food security.

Keynote speaker Oli Le Lievre brought attendees back to their first positive memory of agriculture, and inspired them to hold onto that emotional connection.

He seeks to inspire people to connect with farmers by retaining a positive memory of food or agriculture.

Farm consultant Matt Harms then brought dairy farmers David and Penny Conn, Tim Jelbart and Aubrey Pellet to the couch, talking about ownership structures, wishlists and how to manage and mentor people.

Tim Jelbart, who farms in the Inverloch district, employs 20 people (including himself) in 18 equivalent full-time positions.

In the 2023 year, this team worked a compounded 37,000 hours of labour.

Tim said it was important to identify skills gaps in the labour force, but the most

important skill was interacting with people. Everything else was teachable.

“We provide opportunities for all our staff to participate in courses, and we make sure we allow the time on the roster to enable them to develop their skills,” he said.

“It’s also important to give people ownership in their tasks. We’re very clear on roles and responsibilities.

“If someone is interested in water management, I’ll roster them to that task. If they’re interested in pasture, that’s what they get to do.

“Knowing this, and rostering staff to these responsibilities, is also an opportunity to have a conversation with them.

“It’s a shared interest that then becomes a way to connect with them in the workplace.”

David Conn said their strategy was to invest in land and infrastructure, and provide managers with autonomy. The couple own dairy and beef farms in two states, with a mix of contract manager and sharefarmers in place.

“We provide a lot of autonomy to our managers and sharefarmers,” he said.

“We like to think we can run anything by computer and phone, wherever we are in the world.”

Nevertheless, he and Penny were available 24-7 to their managers and staff.

The couple has a basic philosophy about investing in infrastructure.

“We make sure we provide the capital to improve and maintain infrastructure on all our farms,” David said.

Aubrey Pellet talked about how important it was to understand cultural differences between people.

Some of those cultural differences were around work ethic, where employees were committed to the workplace; and on rostered days off were still in the workplace.

Some of the people he employs were born and raised outside Australia.

Tim Jelbart said one of the key learnings he took from the succession process that saw him become a director of and take over  managing the family farm five years

ago, was it is never too soon to have those conversations.

“We’re already having succession conversations,” he said.

The afternoon was a mix of breakout sessions, where blue sky ideas about the dairy industry were workshopped by participants.

Attendees discussed animal activists, climate change, the future of veterinarians in rural Australia, and how to retain staff and provide them with a pipeline (if they want it) towards wealth creation or at least stability in employment.

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Penny and David Conn of Noorat were on the dairy farmers discussion panel.

Mike O’Brien of Denison and Tim Jelbart of Inverloch. Tim was also on the panel.

MILKING COWS IS EASY; PEOPLE ARE HARD

People attend the GippsDairy Muster and other networking events to gain new ideas and enthusiasm for their roles as dairy farmers.

That was the summation from muster dinner MC, Stu Griffin, who — with wife Belinda — has a dairy farm at Westbury.

“Milking cows and growing grass is easy,” he said.

“Increasing business size is linear to what you’re doing, or planning to do.

“Employing people is the challenge, and getting the skills to develop people and teams is necessary for our business.”

That was the introduction to two guest speakers. One, Aaron Thomas, spoke about building resilience. The other, Sally Murfett, spoke about her experiences advising people about employment structures.

Aaron said one of the challenges he constantly dealt with is “getting out of my own way”.

That led him to successfully applying for the Australian Rural Leadership Foundation program, supported by a Gardiner Foundation scholarship.

“The ARLP has helped me to identify a clear path for myself. I’ve learned leadership is about listening,” Aaron said.

That has enabled him to consider what he wants his future in the dairy industry to look like, and work towards that goal.

Sally Murfett spoke about the opportunities and challenges of employing people.

In particular, 50 per cent of the available workforce were millennials and their employment expectations were changing the employment landscape.

“They want to know why they should work for you above anyone else,” Sally said. Extrapolating this into the workplace, owners and managers heavily influence team engagement.

“Build your awareness of how you show up and your effect on other people,” Sally said.

“The manager can have a 70 per cent influence on absences, task completion and workplace safety.

“An employee is 10 times more likely to quit a job based on the culture in the workplace — how they feel about that job when

they wake up to go to work.”

Sally also pointed out up to 2.5 hours a day can be wasted in the workplace by miscommunication or poor communication about roles and responsibilities and tasks that need completing.

“Create systems that work, hire the right people, and get out of the way of your teams.”

Farm consultant Matt Harms with Aaron Thomas of Yarram. Aaron was one of the dinner guest speakers.

Benn Thexton of Thexton Farms, Gormandale, and MC of the GippsDairy Muster, Ross Anderson of Anderlea Dairy, Denison.

Shane and Liz Byrne of Murray Dairy, with Sally Murfett, guest speaker at the dinner, and Stu Griffin of Westbury, who was also MC for the muster dinner.

Robert King of Alberton with Graeme and Andrea Barlow of Yarram. Photos: Jeanette Severs

Ken Lawrence of Jindivick, and a GippsDairy director; Peter Fort of Burra Foods and a GippsDairy director; and Matt Coleman, Riverslea.

Zoe Alexander of Thexton Farms, Gormandale and Jenni Collings of Anderlea Dairy, Denison.

GippsDairy chair Lauren Finger, of Yanathan, welcomed attendees to the annual muster.

Malisaa and Ian Nicol of Yarram.

Helen Jones of Foster and Rosalie Coleman of Riverslea.

Jess Knight, of Stratford,

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The majority of attendees were dairy farmers at this year’s GippsDairy Muster, held at Yarram.

Photos: Jeanette Severs

Paul Mumford, of Won Wron, reported back to the group on workshop discussions.

GippsDairy executive officer Karen McLennan and Paul van Heerwaarden, Dairy Australia director and recently retired Bega Group chief executive officer.

Shayne Hyman of West Gippsland Catchment Management Authority with Kate Mirams of Newry.

Learn to be people farmers

BY RICK BAYNE

DAIRY FARMERS might think they are in the business of milking cows, but a leading Australian business consultant says they’re really in the people business.

“If they can’t get someone to milk their cows, they’re screwed,” author, keynote speaker and business consultant Mandy Johnson said while visiting south-west Victoria in June to present a WestVic Dairy workshop on helping dairy farmers ‘Win the War for Talent’.

Mandy says dairy farmers have to be positive and proactive in selling their farms as a good place to work.

“In the 20th century we had more people than jobs, now we’ve got more jobs than the right people,” she said.

“We’re all in the people business now whether you know it or not, and that includes dairy farmers. Competing for employees is now as difficult as competing for customers.”

Mandy said farmers had to re-think how they attract and retain staff because traditional hiring methods weren’t working.

“Hiring is now a sales process; they have to think about what people want, not what they want.”

She used an example of an airport advertising for security staff that highlighted that people must be prepared to work 24-7.

“There was not a single benefit advertised to attract a person to apply.

“You can’t just say what you want and not think about it as a sales process ... you have to inspire and engage people.”

Mandy has been working with dairy farmers for about five years, speaking at Dairy Australia conferences and also running a People and Culture accelerator program.

She helped one NSW dairy farming couple in their mid-70s who had been forced to return to milking their cows because they couldn’t find milkers.

“They were advertising ‘must be able to milk’ so we changed it to all the benefits of working for them on the farm and they filled every position.”

When recruiting, Mandy said farmers needed to look for attitude.

“Most recruit for work skills so they don’t have to train people, but recruiting for attitude is how we determine whether someone is great and going to be a stayer.”

Mandy recommends looking back on past performance, not just relying on an interview.

“The two things I really look for on CVs is past achievements because if they have good past achievements, they will be enthusiastic and will be good learners.

“The second thing I look for is solid job tenure because that shows perseverance. If people constantly turn over, there’s a reason. If you get good people from the start, it avoids all the HR issues.”

She also advises farmers to act quickly.

“Great people are like really good houses in the property market — they don’t hang around for long.

“In a tight labour market like it is now, if you hire within a week, you get great people and you don’t get into bidding wars because you’ve moved faster than everyone else.” Mandy said hiring remained a big issue for many dairy farmers, but they can improve their skills.

“A lot of farmers are introverts so they don’t like the people stuff, but once they increase their skill level with sessions like this, they find they enjoy it and start to get better at it.

It’s all about providing practical tools they can immediately use, not fluffy stuff.”

WestVic Dairy extension officer Matt Wood, who co-organised the workshop at Cobden, said the return of backpackers was very welcome, but the market for more skilled farm hands and managers remained very tight.

“There is no doubt that the shortage of skilled employees is a significant issue on many dairy farms,” he said.

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Business consultant Mandy Johnson urges dairy farmers to sell themselves as good employers to work for.

Working to retain workers

BY ANDY WILSON

STRATEGIES FOR staff retention were highlighted at this year’s Dairy Australia Murray Muster in Shepparton on May 31.

Key speakers from within the dairy industry spoke on a range of strategies undertaken by companies to ensure employment opportunities delivered for both workers and employers.

Regional extension officer Shane Byrne told the audience of about 200 that survey evidence strongly suggested that attracting and retaining of staff was a continual problem in the industry and urged employers to consider re-framing the ways of looking at a problem.

“The bottom line is that employment is very competitive at the moment and so in order for dairy farmers to attract and retain staff, they have got to do something different to meet the needs of the employees,” Mr Byrne said.

“Staff tend to be wanting meaningful work, flexibility and career path training,” he said.

“Our dairy farmers do not really score highly in those areas.”

Dairy Australia regional engagement coordinator Phoebe Dillon has been able to undertake study for her Certificate IV in Agriculture whilst working full-time and said the advantages of doing both included her being able to understand farmer’s needs.e

“I am talking to dairy farmers all the time in my job, so I use my study heavily in that regard,” Ms Dillon said.

“A lot of young people who are passionate about the industry really want to do a good job and also want to learn.

“I’m studying a good program and there are a lot of people in this area who are keen to have a crack.”

Coomboona Dairy featured as a showcase item with regards to how the company has successfully employed and retained migrant workers.

Uniting Victoria business development worker Samantha Biles said hiring multicultural

staff would bring benefits to a business when managed thoughtfully.

“Simple ideas can overcome some basic barriers,” Ms Biles said.

“You can overcome language barriers, for example, by arranging shifts where a family member who can translate is working alongside those who struggle with understanding.”

The work of Ms Biles was crucial in establishing employment for the Byigero family.

Jean Byigero and his son Alex spoke as part of a panel about how Coomboona Dairy had employed their family of four.

The Byigero family fled the Democratic Republic of Congo in 2008 and their journey to Australia involved eight years in a Namibian refugee camp.

Alex said he had only been able to find two days of work in another job before being hired to join his family.

“One of the challenges as a refugee was that it wasn’t easy to find a job,” Alex said.

“Samantha really helped me; she is the number one person who does everything for us.

“And the dairy’s management made me feel comfortable. They put me on a shift with my parents.

“I enjoy looking after the cows and everyone likes milk.”

In addition to playing the key role of translator for his parents, Alex is given challenging tasks.

Continued on page 22

This year’s Dairy Australia Murray Muster highlighted challenges that dairies face in attracting and retaining staff. Coomboona Dairy has capitalised on the support of Uniting Victoria in securing the employment of the Byigero family, including Alex (left) and Jean Byigero.

Continued from page 21

“They put me working on things that I couldn’t do but I always get support.”

Through an interpreter, Jean spoke highly of his son.

“Anything he can do, he will do it,” Jean said.

He also said the support from Uniting Victoria and from Ms Biles was crucial to his family’s success.

“Any problem we have, we go to Uniting; they are our provider,” he said.

Coomboona Dairy HR manager Rose Philipzen said the rapport among the company’s staff had been inspired by the Byigero family’s story.

“We can’t help but be humbled by what these guys have been through and now what they are doing in Australia,” Ms Philipzen said.

Ms Philipzen said the wellbeing of people was just as important to the company as the wellbeing of their cows and the company embraced people to enhance the workplace culture.

“We recognise what staff value the most and we enjoy celebrating success and milestones being reached,” she said.

“Our plan is to provide opportunities for staff to develop skills across all aspects of our business and to provide reliable and long-term opportunities.”

Ms Philipzen said the result was that staff were willing to continue working for the company.

Jean’s family agrees with that sentiment, given the challenging journey they have made.

“It was very difficult to wait for Centrelink, so I am really happy that I found the job first,” he said.

“I was very proud to get that job.”

Empower your sta to

BY ANDY WILSON

MITTA DAIRIES general manager Richard Hamilton likes to tell a funny anecdote about one of his secrets to retaining good staff.

It is one of many tips this former Olympic rower had up his sleeve when he spoke to dairy industry representatives at this year’s Murray Muster in Shepparton on May 31.

At Mitta Dairies in north-east Victoria, his style seems to be working.

“You need to acknowledge what your staff have,” Richard told the crowd of about 150.

“And you need to celebrate your product.”

The anecdote involves Richard once telling an employee who needed some words of encouragement that the driver filling his milk truck nearby only had a job “because of what you do”.

“Do you realise that the bloke driving that truck only has a job because of what you do?” he told the employee.

The encouragement grew in the conversation, which soon included the fortuitous employment of staff at anywhere from cheese factories to fast-food outlets.

As the list grew, so too — we were told — did the employee’s self-esteem.

On the following Monday, Richard asked the staff member how his weekend was.

“Well, I spent the whole weekend walking into all the local shops selling food and was telling everyone behind the counter ‘you only have a job because of me’.”

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• Only lasts as long as the average cow, but more likely to die on farm

• Struggles to get pregnant on time, and consistently struggles with mastitis

Top 10% Productive Life

• Moderate sized cows not getting any taller, with functional udders

• Making industry leading production with high solids

• Lasting nearly five months longer in production than the average, and being a valuable cull cow

• Extremely fertile and having less mastitis than others

Bottom 10% Productive Life

• Cows with plenty of frame, strength and getting taller each year

• Struggle to keep up with average milk production

• Last barely long enough to cover rearing costs, and potential to die before being culled

• More mastitis and cell count than the factory wants, has significant struggles with becoming pregnant

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Baby Olivia stole the show at this year’s Murray Muster in Shepparton. Her parents Zac Lea and Jerrica McLaren both work at Mitta Dairies, and they praise the efforts of general manager Richard Hamilton on how he understands the importance of balancing work-life challenges.

Photo: Andy Wilson

to feel like champions

“Every business competes with others on recruiting staff,” he said.

“And you need to recognise the work-life balance that everyone has.

“So, if someone needs some time off the roster and you grant it, you say to yourself ‘if I lose a bit of money with them here, it’s an investment because they’re going to be useful later in the year because they love their job’.”

Showcased at the event was the success story of two of Mitta Dairies employees.

Jerrica McLaren was 20 weeks pregnant when first employed by the company, something which might normally make an employer pause.

Jerrica’s personal initiative seemed to match Richard’s.

“If someone was willing to help me, then I am going to work for them,” Jerrica said.

“Richard is supportive of all staff, and he certainly supported me.”

Jerrica shared the story of her experience with the audience of industry representatives who had gathered to address the statewide employee shortages in the dairy industry.

“Why should we stop someone’s dreams and passions?” Jerrica said.

“If you provide understanding of family needs, then I think you’ll succeed in getting people to work for you.

“At Mitta, every effort is made to give time off for personal reasons, and when I ask for it, I am listened to with no judgment.

“Richard is supportive of all staff, so everyone there is willing to continue working for them.”

Richard enthuses his staff to be fearless in the face of personal challenges and draws upon his rowing career for yet another story.

The championship medal-winning junior crew he coached once sank their boat in a vicious headwind during a race.

This true story has a serious ethos behind it.

“The more you empower your staff to feel they are contributing to society then why would they leave?” Richard said. He also said that sensible sharing of production data with staff empowers them to feel a part of the business.

Empowerment is Richard’s strong suit and at the Murray Muster he listed many s trategies he has that are genuine and successful.

When baby Olivia arrived later in the year, the support continued with the tot accompanying her mother at the dairy and being allocated a crèche area.

“Olivia is allowed to go into my work and into a safe and warm environment, and this is what gives a good work-life balance.”

Jerrica’s partner Zac Lea was then employed at Mitta Dairies and works in a range of tasks, with the former carpenter even helping renovate rental homes on the property.

This burgeoning family now feels part of a larger one.

“No matter how strong the headwind is, everyone is a world champion in something, but no-one has ever told them that, and yet that’s the secret to working toward a team, whether it be sport or a dairy farm,” Richard said.

“Often the biggest thing is that when someone comes through a tough challenge, no-one ever says to them ‘well done, you have done well’.

“These days, everyone is quick to judge, but I see value in understanding the journey they are on.

“I don’t see it as a threat or a problem, but other employers often do.

“They say ‘we can’t do this, and we can’t do that’.

“And I want to challenge them on that one.”

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Richard (far right) draws on his experience as an Olympic rower to nurture and inspire his staff. His motto is subtly empowering: “No matter how strong the headwind is, everyone is a world champion in something”.

Photo: Mitta Dairies

Mitta Daries general manager Richard Hamilton sees value in understanding the journey his employees are on. “The more you empower your staff to feel they are contributing to society then why would they leave?”

Photo: Mitta Dairies

Bene ts of synchrony programs

BY DR GEMMA CHUCK

SYNCHRONISING COWS for reproduction is a frequently used management practice in dairy herds.

Why should you use synchrony programs?

Easier heat detection: Heat detection aids such as scratchies and tail paint tend to be more reliable when many cows are showing heat at the same time. Cows showing weak or subtle signs of heat (oestrous) may be able to be detected more easily when many cows in the group are also showing signs of heat.

It is important to remember that some synchrony programs have a fixed time for insemination and do not require heat detection for the first insemination. However, good heat detection after the initial insemination can be a critical factor to achieve overall good herd reproductive performance.

Accurate observation and application of heat detection aids are important for the full duration of the AI period.

Earlier detection of non-cycling cows: Synchrony programs involving heat detection can allow earlier detection of heat during the AI period. This means that non-cycling cows to be identified and therefore treated earlier. Pre-mating heat detection can also work well for some herds.

Any cow that has not displayed a heat by day 21 into the mating period should be examined

by a vet. Delaying examination of these animals will have a negative impact on economic performance of the herd.

Tighter calving pattern: Synchrony programs can result in simultaneous mating of cows over a shorter time frame which can help tighten the calving pattern. The earlier cows calve, the more likely they are to get back in calf at the subsequent mating period. More heifer calves born early: Early-born heifers have the advantage over later-born heifers in that they are more likely to achieve target weights for joining. Having a good replacement rate of heifers allows a greater

ability to selectively cull cows with problems.

Efficient use of labour: On many farms, having a tight calving pattern allows more efficient use of labour and better observation of calving cows. Transition feeding is also easier to organise with groups of cows calving at a similar time.

Artificial breeding in heifers: Synchronising heifers to calve earlier than the adult cows can improve reproductive performance in the next mating period. As well as reducing the number of bulls required, artificial breeding of heifers can utilise sexed semen which can increase genetic gain.

Synchronising allows more efficient planning of treatment and insemination of heifers without the need for constant heat detection. This is useful when heifers are not close to the dairy. Why shouldn’t you use synchrony programs?

Synchronising cows or heifers is not a silver bullet for an extended calving pattern.

Synchronising may be part of the solution to the problem but there are many other aspects to consider.

You should discuss the benefits and costs of synchronising with your vet before deciding if it is the best option for your herd.

Synchronising alone is unlikely to help if:

Cows are only recently calved.

Cows are in poor condition and are not cycling.

Heifers are poorly grown and are well below target weight.

There are limited resources to handle a large number of cows and heifers calving over a short time in the future.

There are many different types of synchrony programs, utilising different reproductive hormones and with variable degrees of intervention.

The expectations also differ, and it is important to discuss the options with your vet well before the planned start of mating.

Dr Gemma Chuck works for Apiam Animal Health in the dairy operations team where she writes technical service programs for farmers and vets.

INDUSTRY MOURNS MIKE TAYLOR

Dairy industry champion and former Murray-Darling Basin Authority chair Mike Taylor has died.

Mr Taylor worked for the Australian Dairy Industry Council from the late 1980s and served as its chief executive officer from 1990 to 1992.

He steered the industry through both the Kerin Plan and the subsequent Crean Plan, which were early steps towards deregulation.

He returned to the industry as chair of the Gardiner Foundation from 2010 to 2015.

ADIC chair Rick Gladigau said Mr Taylor brought invaluable experience to the dairy industry from his time working as a senior public servant.

Mr Taylor held senior roles in the

Victorian Department of Agriculture and Department of Natural Resources and Environment. He also served as secretary of the Commonwealth Department of Agriculture, Fisheries and Forestry.

“Mike was a long-time stalwart and friend of the Australian dairy industry, and his knowledge and guidance will be missed by all,” Mr Gladigau said.

“Mike’s experience and ability to transcend the public and private sectors was highly valued by those who worked with him at ADIC.”

Mr Taylor was Murray-Darling Basin Authority chair at the beginning of the Murray-Darling Basin Plan, resigning from the position in December 2010, just two months after the authority released the plan.

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Should you use synchrony programs in your herd?

Mike Taylor during a visit to Shepparton, in his time as MDBA chairman.

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With the Australian red meat and livestock industry’s carbon neutral target set for 2030, it’s becoming increasingly important for producers to implement practices into their livestock programs that will help to reduce methane output.

One of the first steps producers can take to reduce their livestock’s methane output is through the introduction of nutritional supplements into the feed programs. This is where producers are turning to OrganiPro.

“We’ve seen fantastic results since OrganiPro was released onto the market, and we’re pleased to offer supplements that aid in the reduction of methane output, while also improving production and profitability for producers,” Performance Feeds national sales manager Peter Cush said.

“It’s important for producers to know that they can continue to work towards carbon reduction targets, without compromising on peak livestock productivity and performance.

“In fact, evidence suggests that reduction of methane must be accompanied by production gains for a weight gain strategy to be economically successful.”

Performance Feeds’ goal is to produce quality nutritional supplements that suit the needs of any operation. OrganiPro is a key example of this.

OrganiPro is a highly palatable, loose lick nutritional supplement that has been designed to boost livestock production systems and reduce methane output.

OrganiPro’s key ingredient, Agolin, aids in the reduction of methane output in grazing cattle year-round by optimising the function of the rumen.

University trial data has found that Agolin will also improve feed efficiency, weight gain and cow milk output, while also reducing methane output by about 10 to 14 per cent.

Formulated to promote frame and bone growth in cattle by maintaining their intake of phosphorous for energy metabolism, OrganiPro contains phosphorous, calcium and magnesium and critical macro minerals. Supporting the macro minerals are trace

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According to the Department of Primary Industries and Regional Development in Western Australia, methane emissions in livestock represent a gross energy loss from feed intake of about 10 per cent.

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Incorporating Performance Feeds’ organic nutritional supplement OrganiPro into the year-round nutrition program of livestock ensures producers can move towards carbon reduction targets without sacrificing the productivity of their stock.

ACO Certification has certified OrganiPro as a ‘Certified Allowed Input’ that can be used on properties certified to the National Standard for Organic and Biodynamic Produce Standards. OrganiPro has also been assessed and found compliant with the USDA National Organic Program and NOP.

THAT’S A WRAP FOR SILAGE WRAP

Dairy Australia’s innovative Silage Plastic Recycling Trial in western Victoria has been successfully completed.

The lessons learned are now being used to work with private industry to develop a long-term solution for responsible disposal of plastic on farms.

The objective of the silage recycling project was to develop a practical and cost-effective solution for managing farm plastics, and dairy silage wraps and covers.

The project, which was supported by the Commonwealth’s National Product Stewardship Investment Fund, ran for more than two years.

It started with desk-top studies and investigations into international bestpractice prior to moving into a pilot trial in western Victoria.

Following an expression of interest process, close to 160 farms volunteered to participate in the trial, with 90 farms chosen to take part.

The pilot trial began in April 2022 and by the time it was successfully completed in March 2023, 64 tonnes of silage plastic

— equivalent to around 50,000 silage bales worth of plastic — were collected and recycled.

This plastic waste, which would otherwise have gone into landfill, was then processed into material that could be used to make a range of recycled plastic products.

The trial tested three different on-farm plastic storage methods and farmers

were offered the option of a paid on-farm collection service or free drop-off at one of five local waste transfer sites.

Ultimately, the project allowed Dairy Australia to identify a preferred farm plastic collection and transportation model. This has been tested by farmers, meets the requirements of recyclers and is competitive with existing practices.

Dairy Australia’s manufacturing innovation and sustainability program manager Ian Olmstead said the trial was positively received by the farmers involved.

“There is overwhelming support for the continuation of a silage plastic collection and recycling scheme for the region,” Mr Olmstead said.

“The project team worked closely with key stakeholders including plastic suppliers, plastics re-processors, dairy and cattle farmers, and other successful product stewardship schemes to ensure that the systems developed remain practical for farmers and commercially realistic for all involved.”

ɋ To learn more about OrganiPro, speak to your Performance Feeds territory manager or go to: www.performancefeeds.com.au

As a result of this project, Mr Olmstead said Dairy Australia was currently working with commercial company Plasback, which will seek to build on the silage plastic collection service offered to date in western Victoria.

Plasback operates a successful collection service of plastic wastes for rural communities in New Zealand.

“Plasback will take the lessons learned from the Dairy Australia trial — as well as what has been learned from their own experience previously operating a silage plastic recycling scheme here and in New Zealand — to offer Australian farmers a sustainable service for plastic disposal,” Mr Olmstead said.

Details of Plasback’s eventual service offering are currently being finalised.

It is anticipated that collection and recycling services will initially be offered in Victoria, before expanding to other regions nationally depending on demand and availability of suitable local collection and recycling infrastructure.

Performance Feeds national sales manager Peter Cush.

Silage wrapped bales. Rye Grass at invergordon.

For the latest information on Methane production and rumen-protected fats, please see the June 2023 edition of Dairy Global on-line.

Pastures can save the planet

BY DR LES SANDLES

FANCY THAT. The fabled ‘greener pastures’ are, in fact, greener pastures — for the planet. The irony is just too enticing not to be this month’s focus.

I ventured the idea that dairy can save the planet last month and admit, on the surface, it may seem a little optimistic. Notwithstanding, let’s entertain the possibility for just a moment.

Earth-friendly practices and sustainable and/or regenerative ag specialists advocate (more-or-less in order):

ɋ Always maintain groundcover. If not green and growing, at least a thick mat of armour — tick.

ɋ Maintain or increase diversity in pastures and crops, that is, multispecies. Rye/clover pastures almost qualify (two principals with attendant weeds), and the popular inclusion of plantain and chicory better yet — almost a full tick of that box.

ɋ Include livestock (a) and employ them in an intensive grazing rotation (b) — two ticks there. And maybe even a third as cows eat a lot and crap a lot and that is good s**t for the planet.

ɋ Plant species that sequester (munch) a lot of atmospheric carbon (C). Store it and/or pump it into the ground for storage there — hmm, I reckon that’s up to another four ticks, but I will need to explain how-so.

When the conversation is about great C

“harve-stores”, the ignorant assumption is that trees own this niche.

However, trees grow slowly at first before picking up momentum and plonking a heap of C down later in life as wood, and a bit more as root systems — trapping about 11 tonne/C/year above ground and a bit more below.

Oh, and then we cut a decent bunch of them

down to burn (where does that C go?).

True, some continue growing and others are stored in our houses as frames and floorboards and so on, but the accounting of trees in the C equation is typically more than generous.

How does pasture stack up in comparison?

Pretty well as it turns out, even with some lazy mathematics.

Long-term ley pastures are frequently demonstrated on par with forestry for capturing C.

Such pastures are not highly productive dairy sustenance, and this is an important distinction, as well-managed dairy pastures have a yield potential in excess of 35 tonne/DM/ha and such yields gobble up and lot of C, and importantly a lot of nitrogen (N) also.

Tragically, the potential of dairy pastures, and the dairy industry to positively impact the planet is lost in, as Shakespeare might lament, the “much ado about nothing” that is methane as I explained last month.

What is relevant is that cows eat C ley pastures — and lots of it.

And to keep them fed, we need lots of grass, and that means lots of CO2 removed from the atmosphere.

In summary, productive pastures are inherently fantastic for the planet, and that’s a massive tick.

To be sure, our pastures need to be ‘greener’ — hopefully I have given you a sense of why.

Next month I will explain how to achieve highly productive, earth-friendly pastures. ɋ Dr Les Sandles is a renowned thought leader and provocateur in the dairy industry Best known for his role in revolutionising nutritional and pasture management practices, Les has turned his attention to the ‘last frontier’ — transmogrifying the forage production system into a C-munching machine.

Productive pastures are good for the planet

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Role of rumen-protected fats

BY DR RICHARD KIRKLAND

TOTAL GLOBAL greenhouse gas emissions from livestock are estimated to account for 14.5 per cent of total anthropogenic emissions and 40 per cent of this is accounted for by enteric methane from ruminants.

Most (about 90 per cent) of the enteric methane has its origin in the rumen through the process of microbial methanogenesis.

Methane has a much shorter life-time than CO2 in the atmosphere, which makes it an attractive target for shorter-term gains in global warming reduction.

In addition to the environmental implications, ruminal methane production also represents a considerable loss of energy to the animal, ranging from 2 to 12 per cent of gross energy intake of ruminants, though values between 3 and 7 per cent are more realistic in intensive dairy production.

Ruminal methane is produced as a by-product of fermentation of feed components by rumen

microbiota (bacteria, protozoa and fungi) to volatile fatty acids (VFA) in the rumen.

It is strongly influenced by dry matter intake, which determines volume of fermentable feed substrates and fermentability of feed.

Methane gas produced is eructated (burped out) by the animal, facilitating removal of excess hydrogen from the rumen. This is a natural process essential to the continuation of anaerobic rumen fermentation and microbial growth.

Fermentation of different energy sources in the rumen leads to alternative patterns of VFA production.

Fermentation of fibrous material in the rumen drives acetate and butyrate which lead to a net release of hydrogen, whereas increasing proportion of concentrates in the ration and development of starch-fermenting microbes leads to increased propionate production (an alternative hydrogen sink) and reduced hydrogen release for methane production. Furthermore, increasing concentrate supplementation and starch intake can decrease

ruminal pH leading to inhibition of methanogenic growth.

In contrast to other nutrient sources, dietary fat is unique in that it is not fermented to VFA in the rumen.

This characteristic offers a specific method of increasing energy supply without adding to fermentation-induced hydrogen production in the rumen.

However, the potential for methane mitigation using ‘rumen-active’ lipids is limited due to negative effects on animal production. In particular, the risks of reduced fibre digestibility, feed efficiency and formation of trans fatty acid isomers that cause milk fat depression with increasing rumen-active fat sources need to be considered.

Rumen-protected fat supplements

In contrast, rumen-protected fats were developed to overcome the negative effects on rumen fermentation and fibre digestibility associated with unsaturated ‘rumen-active’ oils.

Their development enabled supplementation of ruminant diets with lipid to increase energy density without the negative intraruminal and production effects associated with ‘free’ oils, with additional benefits including the ability to deliver a greater proportion of biologically-active unsaturated fatty acids (for example: C18:1, omega-3) through the rumen to the small intestine.

Rumen-protected fat supplements offer a unique approach to methane mitigation efforts.

As established ingredients for improving production and fertility aspects in dairy and other ruminant diets, a beneficial effect on methane reduction is achieved more as a ‘side-effect’ in addition to the performance gains for which these supplements are typically used for economic return.

With minimal effect on ruminal environment or microbiota, the primary mechanism for rumen-protected fat-mediated reduction of methane is via direct replacement of fermentable organic matter in the diet to reduce substrate availability for hydrogen production.

Established research work from the United States evaluated the effects of replacing 2.95 per cent ground maize with rumen-protected fat (Megalac; calcium salts of fatty acids) targeted to supply about 454g of fat supplement/ lactating cow/day.

Fat supplementation increased milk yield by 2.3 kg/cow/day and reduced daily methane production by 7.5 per cent, translating to a 13.7 per cent reduction in methane intensity. Non-lactating cows had a tendency for lower methane per unit of gross energy intake (-5.1 per cent).

Rumen-protected fats with specific fatty acid profiles are also commonly targeted to improve fertility, with mechanisms including increasing energy supply, increasing progesterone production, and improving quality and survivability of fertilised eggs.

Improved fertility traits can translate to fewer replacement animals needed which has major implications on methane production at farm level.

In summary, rumen-protected fats are widely used in dairy and other ruminant diets to provide an economic return through enhanced productivity effects.

The indirect effect on methane reduction should be considered as an additional benefit without additional cost to the producer, and with expected persistent effects through the period of use.

Dr Richard Kirkland is a ruminant nutritionist and global technical manager for Volac Wilmar Feed Ingredients, based in the United Kingdom.

Dr Richard Kirkland.

Fertiliser more a ordable

FARM FERTILISER affordability is starting to improve across the globe, with a likely recovery in application in some regions in 2023, according to Rabobank.

However, in most cases, demand will take some time to return to pre-pandemic levels.

In its latest fertiliser outlook report, the global agribusiness banking specialist said most fertiliser prices were gradually returning to their historical averages, after skyrocketing over the past two years due to the impacts of COVID-19 and the Russia-Ukraine war.

The report, titled Improved Affordability Ahead, said global fertiliser prices had begun to trend higher in 2021 due to supply chain constraints resulting from the pandemic.

Affordability deteriorated further when fertiliser prices set new record-high levels after Russia invaded Ukraine, reducing supply from the region and also resulting in higher production costs.

By that time, Rabobank analyst Vitor Pistoia said “reasonable prices for agricultural commodities were the only reason fertiliser didn’t become as unaffordable as it was in 2009 during the global economic crisis”.

Prices continue to remain above average for a number of agricultural commodities, due to tighter stocks, he said.

“The combination of still-positive commodity prices and lower fertiliser prices is helping fertiliser affordability for farmers,” Mr Pistoia said.

“Although globally, ‘consumption’ may take two or three years to recover, and the speed of recovery will depend on how long the current positive cycle lasts.“

For Australia, the Rabobank report said, in recent years, fertiliser demand had grown despite the price hikes, as the country enjoyed good seasonal conditions and a surge in grain and oilseed production.

“Every year since 2020, G&O (grain and oilseeds) yields have exceeded the previous year’s production, with 2022 winter and summer crop seasons combined reaching an historically high 72 million metric tonnes, a 130 per cent surge,” the report said.

“At the same time, cropping area increased 27 per cent from roughly 20 million hectares to 25.5 million hectares.“

Mr Pistoia said good weather driven by La Niña and investments in crop management had underpinned this “phenomenal growth”.

Apparent fertiliser demand in the same period moved from 5.4 million to around 6.6  million metric tonnes, a 21 per cent increase, according to the report.

“Although the conditions for the 2023 crop seasons are a bit different, they do not signal a reversal in the trend of historically-high cropping area and a significant application rate,” Mr Pistoia said.

“The drop in farm input prices is greater than that of commodity prices, and this is slowly improving farmers’ buying power.”

GET IT RIGHT, RIGHT FROM THE START.

Rabobank analyst Vitor Pistoia says the combination of still-positive commodity prices and lower fertiliser prices is helping fertiliser affordability for farmers.

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Data supports probiotic use

NEW DATA from an agricultural probiotic company has shown cows using its feed supplement produced more milk and improved in fertility.

Terragen undertook its own ‘Big Cow Project’, a longitudinal study on 122 cows over 16 months on an operational dairy farm in Harrisville, Queensland.

Cows were split into treatment and control groups, with the treatment group given a baseline 10ml dose of Terragen’s feed supplement MYLO, and two subgroups split into different diets.

Terragen chief operating officer Joss West said the data collection on milk yield and fertility was recently finalised.

“After calving, treatment cows had 10.1 per cent higher average milk yield and 8.1 per cent higher average peak milk production,” Dr West said.

“Also, the number of days for cows on MYLO to first insemination was just under 65 days, or 9.6 days shorter than the control group. The calving interval in the treatment group also tended to be shorter.

SKIOLD DISC MILL THE ORIGINAL

knowledge of MYLO’s benefits for dairy cows and calves and its potential to reduce methane emissions, is the company’s largest research study to date.

Terragen’s milk yield increase of 10.1 per cent is its most numerically significant, compared to a 3.3 per cent increase from a 2019 University of Queensland study using 13 cows, and a 1.3 per cent increase seen from a 2021 study, conducted at Ellinbank SmartFarm in Gippsland, Victoria.

Dr West said Terragen’s new milk yield and fertility data from Harrisville highlights the potential for MYLO to give producers substantial return on investment.

“The potential a cow may get in calf sooner is a major indicator of profitability on the dairy farm,” she said.

“This is largely because of cost savings associated with reduction in non-productive days and reduced operational costs of reproductive intervention.

“It also leads to longevity in the herd and a subsequently higher lifetime productivity.”

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“What’s most promising about this data is the p value for both sets of statistics is less than 0.05, proving statistical significance.

“For the first time Terragen can scientifically verify MYLO improves fertility outcomes in cows, something farmers had been telling us for some time.”

The study, designed to further Terragen’s

Terragen will present these findings at the Joint International Congress of Animal Science to be held in Lyon, France in August.

Other outcomes from the study — including MYLO’s ability to reduce methane emissions and improve calf growth — continue to be analysed, and Terragen expects to produce additional conference abstracts and journal publications from this work.

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The 16-month study was conducted on an operational dairy farm in Queensland.

Dr Orlando Ramirez at work on Terragen’s

Next generation of tedders

KRONE AUSTRALIA has announced its new, easy-to-store Vendro T900 Trailing Tedder, replacing the KWT882 and making harvest and cropping even easier for farmers.

Krone Australia product manager Ash Swayn said the eight-rotor T900 Vendro Trailing Tedder was perfect for large-scale silage making.

“The Krone Vendro T900 Trailing Tedder will help farmers working across a large area boost their harvest efficiency and improve their forage quality by controlling the wilting process,” Ash said.

“What separates Krone’s Vendro range from the rest is its OptiTurn Tines. The 3D design of the OptiTurn Tines on the T900 model allows for a thorough gathering and uniform spread of the material across the machine’s entire nine-metre width.

“With the T900 model, the new OptiTurn Tines with kinks in two places allows for a smoother and more uniform spreading of crop than we have previously seen. The tine arms of the adjacent rotors overlap generously, leaving no crop behind.

“The tines shafts vary in length, meaning the grass is literally lifted off the ground instead of being dragged along. This reduces contamination and the risk of moulding, resulting in a cleaner and high-quality crop.

“The Vendro T900 Trailing Tedder’s durable eight-finger clutch allows for frictional connections in any position. This provides a constant power flow and minimises the risk of damage

due to operator error, giving farmers peace of mind.”

Ash said thanks to its robust and lightweight design, the T900 Vendro Trailing Tedder was suitable for compact tractors, requiring a minimum of 50 horsepower, making it compatible with several machines.

Attachment and storage are made easy, with the machine folding to less than a three-metre width within a matter of minutes.

“The attachment is wide in the field but

narrow on the road. During storage, the rotors are folded down ensuring safe road travel between paddocks,” Ash said.

“Hydraulic dampeners are standard equipment for the Vendro 900 and ensure quiet running behind the tractor and improve tracking in the field, while maintaining stable positioning during transport.

“Hydraulic Preset Headland Position is also standard for the Vendro 900, allowing the user to pre-set the height to which

the machine is raised on the headland, in order to avoid tedding the same ground twice.”

In addition to these new features, the T900 Vendro Trailing Tedders still have the same well-known features as the KW range including OctoLink, a permanently lubricated gearbox which is mounted under each section and border spreading.

For more information, contact your local Krone dealer or visit: kroneaustralia.com.au

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Krone Australia’s new Vendro T900 Trailing Tedder.

Planter breaking new ground

IN 2018, Case IH launched the 2130 Early Riser planter into the Australian market, and now, thanks to customer demand, the brand is offering a new model suited to a variety of farming operations right across the country.

The 2110 Early Riser planter is from the industry-leading 2000 Series of planters that feature a unique row unit design and composition that ensures faster crop emergence and more uniform germination in a variety of crops.

“The 2110 Early Riser planter has a smaller configuration than the 2130, with two different configurations available: a six-row and an eight-row. Previously the smallest we did was 12 rows,” CNH Industrial Seeding and Tillage Australia and New Zealand product manager Andrew Kissel said.

“This new model really fills a need in the market for us, since 2018 when we first launched the Early Riser series, the most common question we got was: ‘do you have an eight-row version?’.

“So, now we have all the key features and benefits of the Early Riser in a smaller package that suits a wide variety of customer businesses.”

Andrew said what set the Early Riser apart was the combination of a rugged, uniquely designed row unit with the industry’s most accurate planting technologies, providing for high levels of efficiency and accuracy, whatever the conditions.

“The factor that differentiates this row unit from anything else in the industry is the ground-engaging components. It uses a

reduced inter-diameter gauge wheel that is pulled, instead of pushed like a lot of other machines on the market, giving the planter a much smoother ride,” he said.

“The Early Riser double disc opener uses a leading disc, instead of nose-to-nose, which gives us a narrower opening angle, taking less horsepower to pull and creating a softer side wall in the furrow for early root growth.

“The furrow-forming point and shoe smooth the bottom of the trench and keep it open long enough for all the seeds to get down to the same depth, delivering more uniform emergence.

“Our two-stage closing system follows along in and ensures good, consistent seed-to-soil contact and this is a big contributor to fast germination.”

In addition, automatic and in-cab adjustments help the operator to quickly adapt to unique field conditions and can be run through either an ISOBUS compliant or AFS Pro700 display.

Andrew said the cotton industry was a key focal point for the introduction of the new planter, but there were many opportunities beyond cotton.

“One of the great things about these machines is the range of crops we can plant with them, and plant very accurately,” he said.

“We have customers doing canola with them in the NSW central-west, corn in the NSW north-west and peanuts and soy beans in north Queensland.

“The 2110 Early Riser is such a flexible machine and incredibly accurate compared with a lot of others on the market.”

The new 2110 Early Riser planter was launched at FarmFest at Toowoomba in June. For more information, contact your local Case IH dealer.

The Case IH 2110 Early Riser planter has the versatility to suit a wide range of farming operations.

The new 2110 Early Riser planter was launched at FarmFest at Toowoomba in June.

Expo is an innovation hub

KUHN AUSTRALIA will once again play host to dealers and customers at the 2023 KUHN Expo, with the opportunity to see first-hand more than 30 of KUHN’s cutting edge agricultural machinery.

It will be held in Toowoomba, Queensland on Wednesday and Thursday, July 26 and 27.

KUHN Australia’s marketing manager Michael Murer said the KUHN Expo was a great opportunity to see and experience the KUHN machinery range in action on-farm, while networking with leading industry partners.

Attendees will be exposed to a variety of impressive live demonstrations, machinery displays and workshops led by KUHN product specialists.

There is also the opportunity for customers

to take part in a silent auction of the demonstration machinery, where a portion of the proceeds will be donated to the mental health support organisation led by Mary O’Brien called Are you Bogged Mate.

The event will showcase the full KUHN machinery range. Starting from the full hay and forage process, mowing to baling, stubble management and tillage, crop protection and fertilising, to livestock solutions.

The event will also highlight the newest additions to Australian shores — the VBP 7100 round baler wrapper combi series and the FC 13460 RA and FC 9330 RA mower conditioners.

KUHN Group’s VBP 7190 round baler wrapper combo was recently crowned as the winner of category nine at the 2023 Farm Machine of

TTMI CONTINUES TO EXPAND

A new Case IH dealer is now covering Tasmania’s north-west, with TTMI expanding its presence in the state.

TTMI, with locations in southern Victoria and central and southern Tasmania, has now taken on the north-west of Tasmania, with a new Case IH site based in Latrobe, Tasmania. The dealership opened on June 1. It will become the seventh Case IH location for TTMI, with other dealerships in Trafalgar, Maffra, Leongatha, Warrnambool

and Colac in Victoria, and in Longford and now Latrobe in Tasmania.

TTMI dealer principal Jason Henry said it was another significant chapter in TTMI’s history and they were looking forward to working with existing Case IH customers.

“The synergies of the TTMI regions help support the range of machinery we specialise in all of our seven locations across the most beautiful and agriculturally-productive areas of Australia,” Jason said.

the Year Awards, securing KUHN’s position as leaders in the hay and forage industry. The VBP 7190 was identified as being the most powerful and versatile machine in its category.

“We’re looking forward to welcoming everyone

“Customers in north-west Tasmania can expect we will bring the levels of service and support TTMI has become known for to ensure all of their requirements are met — whether that be for new machinery or ongoing service and maintenance — and we hope to expand the presence of Case IH, and the other seeding and tillage brands we represent, in the Latrobe region.”

Jason thanked outgoing dealer for the

to the 2023 KUHN Expo and sharing KUHN’s latest innovative technology,” Mr Murer said. Registrations for the 2023 KUHN Expo are open now. For more information and to register to attend, visit: www.kuhn.com.au/expo

region, TR & KR Shipton, for 40 years of service, and said existing customers in the area could be assured of a seamless transition period.

“For our TTMI customers in other areas, this most recent expansion is a new opportunity for our network to increase its buying power and build our parts and service departments, which is to the benefit of all our customers, right across all of our locations.”

A previous KUHN Expo held in Naracoorte, South Australia. This year’s expo will be in Toowoomba, Queensland.

Delays derail tax write-off

BY ANDY WILSON

FARMERS ARE frustrated by the Federal Government’s refusal to consider a common-sense reversal of a decision in the May 9 budget that sees the instant asset write-off threshold lowered to $20,000 from July 1.

The changes will see thousands of farmers, tradesmen and small business owners worse off if they are awaiting late delivery of assets which have been already ordered and paid for.

This means that farmers who had ordered vehicles or equipment only had until June 30 to take delivery and so benefit from the current scheme.

NSW Farmers has lobbied the government for an extension to be given to farmers still awaiting deliveries of heavy machinery and vehicles.

NSW Farmers president Xavier Martin said many farmers would be caught short through no fault of their own but due to lengthy supply chain delivery delays.

“People have ordered expensive equipment and placed deposits or paid outright under the belief they could use the instant asset writeoff,” Mr Martin said.

Federal Agriculture Minister Murray Watt wrote to NSW Farmers last week to advise no extension would be granted.

Mr Martin described the decision as “tineared” and that it would see farmers and small business owners thousands of dollars out of pocket.

“The right thing to do would be a grace period where anyone who paid for a tractor or piece of equipment before the budget was handed down, but whose dealer can’t get it to them by June 30, will still be able to claim the write-off,” he said.

“As it stands, this decision comes at the worst possible time for business, with soaring inflation and costs.”

Under the changes, assets would now have to be depreciated over many years.

According to the ATO’s website, the current scheme has been long advertised to end on June 30, 2023.

At present there appears to be no limit to the asset threshold.

The Tractor and Machinery Association of Australia has also been lobbying the

government to consider reversal of the policy in the short term, but executive director Gary Northover said the concerns had been received with a “very flat bat”.

“If farmers have placed orders and then don’t benefit from the current scheme, then they may cancel their orders,” Mr Northover said.

“In an economy which is tapering anyway, this is the last thing that farmers need.”

Farmers who did not take delivery of machinery and other pre-paid assets before June 30 will not be able to benefit from the Instant Asset Writeoff Scheme, which had its threshold lowered in the new financial year to $20,000.