The Present and Future for eastAUSmilk
As the son of a dairy farmer, I was brought up with an awareness of the day-to-day issues affecting this industry. From when I was able to attend our local branch meetings, I have always been actively involved in our organisation. Firstly, as a member, then delegate, branch president, district councillor and board member to now president of eastAUSmilk.
I enjoy being actively involved and hopefully at the end of the day I am helping make a positive difference for our dairy farmers. One thing that I do know for certain is that if we don’t have organisations like eastAUSmilk, to fight on our behalf, our dairy industry would be in a seriously worse off state. Whether it was the dollar a litre fight with the supermarkets or the now compulsory dairy code of conduct we have in place, or the many week to week issues that our organisation fights on our behalf. For example, just recently the Processors organisation has been approaching the government saying that the Dairy Code of Conduct needs to be substantially changed to allow them to reduce the price paid to farmers. Also, with the recently announced government enquiries into the supermarkets, we as farmers (not just dairy farmers) know very well the problems with trying to get anything near a realistic price for our products under the current system.
As President, I am often told that it is my task to talk the industry up. My response is fairly simple. If us as dairy farmers, are making a real sustainable living on our farms and (God forbid) even a return on our investment, that is when the industry will talk itself up.
In Australia, total milk production peaked a number of years ago at just under 12 billion litres. This year the forecast is around 8 billion litres. Australia is now a net importer of dairy products. I repeat, Australia is now a net importer of dairy products. If these facts and figures don’t bring a reality check to government and consumers, I don’t know what will. The government and banks especially need to rethink how we can finance young people to get them into the industry. If they genuinely want a dairy industry, then their approach and response need to change dramatically.
I would encourage all dairy farmers, if you are not already, to become members of eastAUSmilk, so that we can work positively together for our industry.
By Joe Bradley, eastAUSmilk President
eastAUSmilk - time for member’s involvement
The first anniversary of the amalgamation of Queensland Dairyfarmers Organisation and Dairy Connect in forming 'eastAUSmilk' occurs on 1 December.
It has been an exciting 12 months under the guidance of Matt Trace and the members of the interim board and interim district councils.
The values that underpinns the organisation, as highlighted by the 'AUS' in the name, being 'Advocacy, Unity and Service', have provided a positive and collaborative way in bringing together dairy farmers from two states under one umbrella.
As has been said, unity of numbers and unity of purpose provides the foundations of a strong and united organisation enabling it to effectively advocate before government and other stakeholders within the dairy value chain.
With the terms of the current members of the interim board and district councils coming to an end on 31 December, eligible members of eastAUSmilk are encouraged to consider standing for their district council and/or for the board.
Nominations are now being received until Sunday 13 November and you may obtain a nomination form for your district council and/or for the board from Lynelle Rogers by emailing her on ea@eastausmilk.org.au or by phone (07) 3236 2955. Alternatively, you may download the nomination form(s) from the eastAUSmilk website at https://www.eastausmilk.org.au/board-and-district-councillor-nomination-forms
If more nominations are received than positions available in either the district councils or the board, then elections will be held to determine those who will be elected.
The board of the eastAUSmilk recently amended the boundaries of the 6 District Councils to ensure inclusivity of the members within the two States, which are now:
• the Northern – Central Qld District;
• the Burnett - Gympie - Moreton Qld District;
• the Scenic Rim – Lockyer Valley Qld District;
• the Darling Downs Qld District;
• the Northern NSW District (North Coast - Mid North Coast – Lismore - North Inland); and
• the Southern NSW District (South Coast - Sydney basin - Inland).
Involvement of the members in the democratic process of any industry association is vital for its well-being and corporate governance. I encourage you to consider becoming involved within your organisation.
If you have any questions, please feel free to contact your representative interim board member whose contact details may be found at the eastAUSmilk website or by contacting the office.
Shaughn Morgan, Co-CEO eastAUSmilk
Feed in tariff need for ROI on solar for dairy
A dairy in the Lockyer Valley region, milking 250 cows, has implemented a photovoltaic (PV) system and management opportunity based on the energy audit report the farm received through the Energy Savers Plus Program Extension. Through the program the business site received a dairy shed energy audit carried out by AgVet Energy and an electrical site analysis performed by Solar Energy & Battery Storage Solutions (SEBSS) as well as an irrigation energy audit completed by The Energy Guys, all engaged by eastAUSmilk.
The goal of the business is to reduce electricity costs by implementing a PV System and making maximum use of the energy generated by the system to reduce energy imported by the grid.
Thanks to data provided by SEBSS performance monitoring of the Solar PV system, I was able to evaluate the savings and outcomes achieved from the farms investment.
Monitoring the farm energy use from June to August 2021 the load was 314 kWh/day with an average 271 kWh/day being supplied by the grid. With average grid supply cost of 20 c/kWh the 43 kWh being supplied by PV the system conservatively achieves a grid annual saving of $3,139.
As the business was on demand tariff 44 no income was being generated from the excess solar being fed into the grid. The business aims to move to a consumption tariff, so we explored the potential income from an expected feed in tariff of 7.84c/kWh.
With the average utilisation currently of 44% annually the PV system is expected to export 30,660 kWh. Potentially generating just over $2,400 per year.
With the increase of solar utilisation expected due to irrigation through summer the income generated through solar export will be reduced; however, this means the total business savings provided by the system will be higher as the export rate of 7.84 c/kWh is far less than the grid supply rate of 20 c/kWh. Provided that irrigation occurs during sunlight hours to make the most of the PV output.
The total expenditure invested by the business was $37,000. With over $3,000 in annual savings from reduced grid supply the calculated payback period of this investment is 11.78 years with a return on investment of 8.5%.
If the business is able to generate income from the PV export the total annual savings $5,542 would reduce the calculated payback period to 6.68 years with a return on investment of 15%.
Solar Energy & Battery Storage Solutions (SEBSS) can provide a comprehensive electrical data analysis for your business, Paul Reynolds on 0414 636 099.
Torie Harrison – eastAUSmilk
A change of the guard at eastAUSmilk
It’s a sign of a healthy organisation when a quality member of the team can stand down and is readily replaced by an equally capable person. That’s exactly what has just occurred at eastAUSmilk. Gary Wenzell stood aside in June to concentrate on his farm and family commitments. I know Gary was disappointed he could not see out his full term, but these things happen in life, and he has made the right decision for his family. From the entire team at eastAUSmilk we wish him all the best and thank him for his dedicated service through the difficult times of the last couple of years.
As per the constitution the district council of Scenic Rim/Lismore was to appoint a replacement and after much interest Kay Tommerup has been appointed. I have known Kay for many years, and she will be a great addition to our team. Kay and Dave have a long history in the dairy industry as is evident by the near vintage NORCO supplier sign on their front gate. However, what has impressed me is the unique perspective Kay will bring to the board around what makes a profitable dairy farming business.
After many years of dairying in the traditional model of “it’s all about milk” Kay and Dave decided to move into Agri-tourism with open days and farm stays, and direct to customer sales. They have been immensely successful. I’m sure with many difficulties along the way but they have in the end found a pathway to profitable farming that is resistant to the variance in weather. In more recent times they have also moved into on-farm processing with the development of their own creamery and the subsequent sale of products such as cream, butter, and ice cream.
While this path is not for everyone it’s the different way of thinking backed with a successful track record that will make Kay a valuable addition to our team. I welcome you Kay and am looking forward to working with you in the interests of our dairy industry.
Matt Trace, President eastAUSmilk
Installing a water chiller and solar pays off for dairy
A dairy in the Darling Downs region, milking 280 cows, has implemented a photovoltaic (PV) system with load shifting through chilling water management opportunity based on the energy audit report the farm received through the Energy Savers Plus Program Extension. Through the program the business site received a dairy shed energy audit carried out by AgVet Energy and a further assessment carried out by Websters Group followed by an electrical site analysis performed by Solar Energy & Battery Storage Solutions (SEBSS) all engaged by eastAUSmilk.
The goal of the business was to reduce electricity costs by firstly lowering supply from the grid and secondly, with the reduced grid supply, transitioning from the demand tariff to a consumption tariff such as Tariff 20.
Implementing the solar system along with water chilling allows for increased solar utilisation by the business as large portions of the business’ energy use occurs outside of daylight hours with milking. Excess solar energy is used during the day to chill water and then the cold water is used through a plate cooler to reduce the temperature of milk before it reaches the vat offsetting energy use by the refrigeration system.
Monitoring the farm energy use from July to October 2021 an average PV energy utilisation of 67% was achieved.
The total load was 319 kWh/day with an average 210 kWh/day being supplied by the grid. With a grid supply charge of 29.46 c/kWh and a 109 kWh being offset by PV the system conservatively achieves an annual electricity bill saving of more than $11,700.
Additionally, on average 53.92kWh were exported daily at a feed in rate of 6.581 c/kWh the PV system is generating export income of over $1,200.
The total expenditure invested by the business was about $76,000. With over $12,900 in annual savings from reduced grid supply and income generated from solar PV export the calculated payback period of this investment is 5.9 years with a return on investment of 17%.
Implementing the 30kW PV system the grid supply has been under 272 kWh/day. Four consecutive months of this reduced grid supply makes the business eligible for a consumption only Tariff such as T20. This will provide the business further annual savings reducing the payback period and increasing the returning on investment.
Solar Energy & Battery Storage Solutions can provide a comprehensive electrical data analysis for your business, Paul Reynolds on 0414 636 099.
Torie Harrison – eastAUSmilk Project Officer
Breaking down the benefits of solar on farm
A dairy in the Burnett region, milking 160 cows, has implemented a photovoltaic (PV) system and management opportunity based on the energy audit report the farm received through the Energy Savers Plus Program Extension. Through the program the business site received a dairy shed energy audit carried out by AgVet Energy and an electrical site analysis performed by Solar Energy & Battery Storage Solutions (SEBSS) both engaged by eastAUSmilk.
The goal of the business is to reduce electricity costs by implementing a PV System and making maximum use of the energy generated by the system.
Prior to implementation, the main energy use areas: shed, dairy, pump, homestead, and effluent pump were all operating off a separate NMI account, each had a daily service fee and meter charges.
To maximize the benefits of a 30 kW PV system and reduce grid charges three NMIs were merged. Thanks to data provided by SEBSS performance monitoring of the Solar PV system, I was able to evaluate the savings and outcomes achieved from the farms investment.
Monitoring the farm energy use from July to October 2021 the load was 156 kWh/day with an average 90 kWh/day being supplied by the grid. With 66 kWh being supplied by PV the system conservatively achieves a grid annual saving of more than $5,000 in addition to exporting excess PV energy of more than $2,000 annually.
The total dairy load is expected to rise as the business increases irrigation through the summer months. Provided that irrigation occurs during sunlight hours to make the most of the PV output, the savings will be higher.
The PV system is generating average 153 kWh/day or 56 MWh annually. The average daily utilisation of the PV yield is 43% from July to October. With the feed in rate received of 6.583 c/kWh the annual generated income from exported PV energy is around $2,094.
With the increase of solar utilisation expected due to irrigation through summer the income generated through solar export will be reduced; however, this means the total business savings provided by the system will be higher as the export rate of 6.583 c/kWh is far less than the grid supply rate of 22.5 c/kWh. There is potential to achieve a higher PV utilisation through further consolidation of NMIs such as merging the effluent pump into the NMI of the Dairy. The effluent pump has a load of 20 – 30 kWh/day which would increase the utilisation factor to 59%. This would reduce export earnings by $574 but increase grid savings by $2,000.
The total expenditure invested by the business was $46,000. With over $7,000 in annual savings from reduced grid supply and income generated from solar PV export the calculated payback period of this investment is 6.28 years with a return on investment of 15.9%.
Shifting loads to using more PV, when possible, can save the dairy more than $10,000 per year. The Return on Investment will improve to better than 33% with a Pay Back Period of under 3 years.
Solar Energy & Battery Storage Solutions can provide a comprehensive electrical data analysis for your business, Paul Reynolds on 0414 636 099.
Torie Harrison – eastAUSmilk Project Officer
Farmer engagement to set eastAUSmilk priorities
This year the dairy exhibitors put in a tremendous effort to prepare the cattle and attend the show. They battled with both the wet weather conditions and the staff shortage issues stemming from Covid-19 at home on their farms. It was an amazing to see them band together and put on an exception dairy display and particularly special this year as Sydney Royal Agricultural Show celebrated 200 years of the show.
Watching the dairy judging and walking through the shed the quality in the animals presented was exceptional. The judges gave praise to the exhibitors and all breeds were complimented on their various traits when the Supreme Champion was named. The ultimate award went to the Jersey breed.
EastAUSmilk Project Officer, Torie Harrison, and I attended the show which for many was their first introduction to eastAUSmilk. The engagement with farmers was very positive, we were able to make important inroads into the understanding and awareness of the what the organisation does and how this is vital to the long-term future of the dairy farmer and their industry.
It was a great opportunity to meet the farmers we are representing, to gather feedback on the organisations current work and hear from the grassroots what priorities eastAUSmilk should focus on for the year ahead.
It was a pleasure to be hosted by Max Wake and family of Benleigh Brown Swiss. Max is the longest serving dairy shed captain at the Sydney Royal Agricultural Show. Over lunch with Max in the Cafeteria he shared some of the history of the show. Max has attended the show every year since 1966. Although Max was only able to attend the show for 1 day in 1973 as he had just returned from his honeymoon.
Before heading home, we travelled to the South Coast with Ruth Kydd, the board representative for the region, engaging with more farmers in the region.
The continuous wet weather has put a huge strain on the dairying business and people in them. Loss of production and compromised animal health with lameness and milk quality issues is common. Most farms are also 6 to 8 weeks behind in planting Winter pasture and crops with a significantly smaller area being planted as it is just too wet to access some parts.
We hosted a dinner in both Shoalhaven and Jamberoo which were well attended. It was an important event for us to consult with more grassroots farmers but more important particularly at this time for farmers to come together to ensure the social and mental resilience of the industry.
Special thanks to Tim Cochrane for organising our visit to the South Coast. EastAUSmilk will be engaging with farmers in all areas of NSW in the coming weeks.
Lynelle Rogers – eastAUSmilk Executive Officer
Dairy Levy Poll – Lets all take notice
With the results in from the Dairy Levy Poll the farmers who pay the levy couldn’t have made their thoughts any clearer. An overwhelming majority of those who cast their votes backed the no change option. This was some 71% of voters who participated. A convincing result such as this can only occur when the alternative options provided are not to the liking of the voters. Possibly more disappointing is the option recommended by LPAC to farmers of an increase of 20% to the levy only received 15% of valid voter support. This raises the question was LPAC listening to the levy payers and is it the right mechanism to decide levy options in the future?
Some will no doubt say it’s not a judgment on the performance of LPAC who selected the options or Dairy Australia who receives and spends the levy funds, but rather a sign of tough times in the industry. I think this would be a naïve and unproductive approach. Farmers have not seen value in their levy and that’s why they have not backed an increase. As farmers are aware the only way to deal with a problem or as we often call it “a stuff up” is to acknowledge the error and deal with it head on. That’s what industry needs to do right now. Let’s put on the listening ears and take direction from the most important people in the industry, the levy paying Dairy Farmers.
What eastAUSmilk will be taking from this result is not the opportunity to tear down individuals or organisations who seem to have lost their way as farmer representatives in recent years and through the entire levy poll process, but rather a much-needed circuit breaker to wipe the slate clean and get it right from now on.
There are two vital questions for all industry bodies not just Dairy Australia to answer very soon. Is LPAC the best way to set future levy options and have the levy funds been spent in the best interests of the farmers who pay the levy?
Matthew Trace President eastAUSmilk
Who is going to pay?
We are starting to see the effects of the Russian – Ukraine conflict with fuel prices crashing through the $2 per litre barrier. Australia’s 26 million people use about 34 billion litres of fuel each year or about 1,300 litres per person. Based on the fuel price increases we have seen since last year, that’s an increase of about $1,000 per person.
While that sounds bad enough, that’s assuming that costs incurred by primary producers, transport and other businesses can be passed onto consumers.
Unfortunately getting markets to work in an open fashion is nearly always more hope than reality. It’s an undeniable fact that Governments of all persuasions want cheap food for the population. If too much is spent on food, it simply does not leave enough for discretionary spending and for Governments to tax us in some other way.
It is highly unlikely that the Australian Competition & Consumer Commission (ACCC) will make any decision that has an adverse effect on consumers.
If fuel was the only commodity that was increasing in price, it might be bearable, but this comes on top of fertiliser, chemicals and steel reaching extraordinary prices. Agricultural industries are still recovering from multiple drought years only to be hit with horrific flooding this year.
The latest figures from the Queensland Dairy Accounting Scheme (QDAS) show that the average QDAS farm spent $60,000 last year on fertiliser and fuel. That figure will at least double this year. The biggest impact on dairy costs might still be coming with upward pressure on grain markets already seen this month.
What happens in Ukraine this month is extremely critical for grain prices. The Autumn planted wheat should be fertilised now for a June harvest and the Spring planting should be near completion. How much of that is actually getting done is anyone’s guess.
As bad as this situation is, it’s also an opportune time with a federal election looming for our dairy advocacy groups to ask the question of our political leaders and everyone in the dairy supply chain – “are you prepared to pay a sustainable price for high quality Australian grown produce? “
“Well, are you?”
Ross McInnes – District Councillor eastAUSmilk
Lismore floods - a farmer’s perspective
Peter Graham of Rich River Farms, Coraki in New South Wales knew this flood was going to be a significant one due to prior rainfall on the Thursday, Friday (300ml), Saturday (500ml) which came down from the three catchment areas, that were already full, into the Wilsons River.
Sunday night at 5 minutes to 10 Peter received a text from a friend to say there is a lot of water coming your way mate, so be prepared. The three catchments upstream were at record levels of 15.4 meters.
Never has this level of water been seen before.
On the home front internet was intermittent so Peter couldn’t even check the BOM, but when he finally did it hit home for him and his family.
Living on a flood plain and experiencing the levels of previous floods, Peter had some idea what he and his family were in for, but not to the magnitude of what did happen, such was the amount of water and speed in which it was travelling.
‘Compare this flood to other floods it would normally take 12 hours to fill our basin, this flood took 4 hours’.
When Peter arose on the Monday morning, across the gully he saw 100 odd cows stranded, which didn’t want to move and to get to the cows was going to be a mammoth task. Experiencing a moment of anxiety after seeing the cows he had no answers as to how to get to them – only hope that they would be safe in the long term.
What goes through your mind at that moment?
Peter feels very fortunate today as he reflects on the past weeks, he knows he has lost a few cattle where he leases property but can’t get to that property at the moment to see the aftermath.
On the Sunday night after the storm Peter had no power for 9 days due to a generator malfunction and not being able to source another one immediately. He has been milking once a day for the past week and his first load of milk was picked up on Saturday morning.
With the ongoing issue of dealing with mud, mastistis, machinery issues and the list goes on this flood will go down in history for all the wrong reasons.
The enormity of the situation becomes apparent and raises some very valid questions as to ‘why am doing this’? Because I love being a dairy farmer and I love my cows!
Lynelle Rogers – Executive Assistant eastAUSmilk
Invisible Dangers after a Flood
It seems like we can’t catch a break, first the fires, then the drought and now floods. Farmers have been affected all around South East Queensland and North East NSW where there is a big clean-up job and damage assessments underway. However, these wet and humid conditions that follow a flood event are the ideal environments for bacterial diseases to thrive posing a risk to yourself as well as staff who are assisting with clean up.
In previous floods the rates of Leptospirosis, Melioidosis and mosquito borne viruses (Ross River, Barmah Forest virus etc) increase. Incubation periods are 5-15 days for Leptospirosis, 1-21 days for melioidosis and 2-15 for mosquito borne viruses although symptoms can present up to 30 days after.
Symptoms include:
Leptospirosis – flu like symptoms, red eyes, stomach pain, vomiting, diarrhoea, cough, yellowing of skin and eyes, skin rash
Melioidosis – Fever, pain/swelling, chest pain, headache, stomach pain, joint pain, all depending on where the infection is present
Mosquito Borne Virus - headache, fever, joint or muscle pain, skin rash, fatigue and nausea
Minimising your risk:
Cover cuts and abrasions,
Wear gloves where possible and wash hands thoroughly before eating, drinking and/or smoking
Shower thoroughly after contacting contaminated floodwaters, soil and mud
Application of insect repellent, especially dawn & dusk; wearing loose, light coloured clothing
Use respiratory protection (P2 or higher) if possible to minimise melioidosis infection
Various Government and Non-government assistance is available and the list continues to grow for those who are affected by the floodwaters.
Government:
Disaster recovery payment - $1000 per person, $400 per child under 16 for eligible LGA’s
Emergency hardship assistance grants - $180 per person, $900 for families of 5+ persons
Extraordinary Disaster Assistance Recovery Grants - $75,000 for flood affected producers
Disaster assistance loans – Up to $250,000 for 10 years
Not for profit:
Rural aid – financial aid, fodder, farm army and counselling
Lions NEED4FEED – assistance with emergency fodder
Drought Angels – financial support and farm assistance
BlazeAid – resurrecting fences and clean up
Please feel free to contact with the team at eastAUSmilk on 07 3236 2955 or Jade on 0437 923 398 if you need any assistance with application forms, resources and/or want to register for BlazeAid to come to your property to help with fencing.
Jade Chan – Project Officer eastAUSmilk
Let’s set our own future
On December 1, 2021, eastAUSmilk began with the merging of QDO and Dairy Connect Farmers group. It is a new concept that allows a fresh start and a chance to do things a little differently. While we have a strong presence and long history in both QLD and NSW it's time to have a good look at what we do well, and what we can do better.
One of the important tasks that eastAUSmilk will need to complete over the coming months is to develop a strategic plan. This may sound a bit boring, but it is actually important for our company and our members. A strategic plan will identify why we exist and what we want to achieve for our members. It's a chance for the board, the company and members to identify issues we need to address and then prioritise.
This is not something that the board and staff of eastAUSmilk can do alone. We need the assistance and insight from our members, and our potential members, on what direction we should take.
Over the past 5 years there has been a strong focus on retail pricing given $1/L milk. Both QDO and Dairy Connect that make up eastAUSmilk played a central role in removing $1/L milk and now all milk is at least $1.30/L. The price is now moving up, which is sensible given increases in costs of production, without the anchor of a fixed retail price. Moving forward, we need to decide what else to focus our attention on in the next few years.
We will undertake an extensive consultation process with our members and potential members. We will listen to what our farmers think we should do and we will ensure that these views are properly taken into account. We will not ignore what farmers tell us but embrace your feedback.
Member meetings will occur across QLD and NSW during March and April. I strongly encourage all interested dairy farmers to attend and have their say. Dairy farmers will be notified about the details of proposed meetings in March.
Yes you have been asked for feedback many times by many in the dairy industry and I too feel that we have not always been listened to. This is a chance to be heard by a growing organisation that values your opinions.
Please contact your eastAUSmilk directors or staff if you would like to know more.
Matthew Trace– President eastAUSmilk