eastAUSmilk value in membership
The most common question I hear when talking to a farmer about becoming a member of eastAUSmilk is what value do I really get for my money?
The answer is actually a lot. Many see eastAUSmilk as necessary to ensure government, processors and retailers take the views of the dairy industry seriously when making policy decisions around the farm gate milk price, environment, animal welfare, a fair market to trade our product in and the general right to farm. There has been a tremendous value returned to the farm gate milk price with the end of $1 a litre milk and the introduction of the mandatory code of conduct that has seen considerable genuine competition for milk.
Would these things have been achieved without a strong member-based industry organisation? I would say no.
Yet there are many more benefits in being a member of eastAUSmilk than just the big picture achievements for the whole dairy industry.
We offer many direct services including employment advice through a qualified consultant, discounted NLIS tags, irrigation system efficiency testing, electricity pricing comparison to get the best deal and one of our partners can provide advice on a solar system to give you the quickest payback not just the most expensive system. Perhaps the most important is our team can assist in identifying funding opportunities and assisting in completing the forms correctly for disaster relief and other government grant programs.
Our key projects at the moment that often follow on from direct services in the form of grants are the Digital Activity Monitoring Program (cow collars), Farm Business Resilience Program (drought preparedness including infrastructure grants) and Energy Savers Plus which includes grants for improving energy efficiency after the audit of systems.
In coming weeks many of you will see our new membership packs out in the dairy community and all I can say is being a member of eastAUSmilk will bring a bucket load of value to your dairy business.
Matt Trace - President eastAUSmilk
View Fort home-bred cow takes 2022 International Dairy Week Holstein championship
Taking the International Dairy Week Holstein championship was special for the Templeton family with the cow View Fort Dictator Dottie being a third-generation animal bred on their farm at Tarwin, Vic.
The Templetons - Matt and Nicola and Matt's parents Bruce and Jan - have enjoyed considerable success at IDW over the years.
View Fort Dictator Dottie took all before it at this year's event, claiming the Australian Grand Champion Cow award, as well as the Holstein championship.
In 2020 the Templetons also took the double with an Avonlea Holstein cow.
But this year's win was especially satisfying with the winner View Fort Dictator Dottie the embodiment of their View Fort Holsteins breeding philosophy.
Matt Templeton said being a home-bred cow meant a lot.
His father imported the cow's granddam as an embryo from Canada in 2006.
He had been impressed with embryo's dam Bridgeview Gibson Dottie when he saw it before the Royal Winter Fair.
Bridgeview Gibson Dottie went on to win the long-time production cow class in Canada.
"She's a 96-point cow - and just a cow that exemplifies what we try to breed for still today," Matt said.
"Just overall balanced dairy quality and very good udders, that's the main thing.
"We milk cows every day of the year and udders is how we make money."
Eight-year-old View Fort Dictator Dottie had had five calves and was a no-fuss cow in the herd.
Nicole said Dictator Dottie was a great herd cow, who had two daughters and two granddaughters in the herd already.
"She's a prolific breeder and we think the ideal dairy cow," she said.
Matt said they hadn't yet decided what was next for the cow.
Dictator Dottie calved only in November and was on heat the day before the show.
The Templetons milk a rolling average of 240 cows in their herd in Gippsland.
Matt said after a wet season, it had finally dried out in December and would hopefully roll through to autumn.
"But we don't need another wet winter," he said.
Holstein judge Murray Sowter, Moss Vale, NSW, said it was difficult to go past the aged cow for his champion.
"A cow that just about ticks all the boxes for me, a cow that is beautifully balanced, hard topped, long necked, open of rib and a particularly nice mammary," he said.
"Her correctness of structure, the youthfulness of her udder, the strength of her attachment and her overall style and balance just gets her to the top of the show today."
Red cow takes intermediate champion
The intermediate champion was a red Holstein, Eclipse Altitude J Princess - Red, exhibited by Robsvue Myponga, SA, and Busybrook Holsteins, Oamaru, New Zealand.
The classy junior two-year-old swept all before it in the intermediate class taking the red intermediate championship and best udder, as well as the overall intermediate championship and best udder.
Eclipse Altitude J Princess - Red was also named overall red Holstein champion of the show and reserve interbreed intermediate champion.
None of the owners was able to attend the event with work commitments keeping the SA connection away and COVID restrictions preventing the NZ contingent from attending.
One of the owners Rob Walmsley, Robsvue, Myponga, said the partners had picked up the champion sight unseen at the dispersal sale of master breeder Richard Hull's Eclipse Holsteins at Jancourt East in June.
The heifer was sold due to sexed Mirand-PP for $9000.
"We liked her pedigree and thought she could turn into something but never imagined she'd turn out that good that quick," Mr Walmsley said.
"We are pretty blown away."
Mr Walmsley said despite not being able to attend it had been a real buzz to watch the event's livestream and be a part of the win.
"You always go to IDW with dreams and ambitions and it doesn't always come off but sometimes it does," he said.
He also praised the efforts of Mal Nikora and Kelly Bleijendaal, who prepared the animal for the show.
"We took her across to Gippsland just before Christmas ... and they got her ready," he said.
Mr Walmsley wasn't sure yet what was next for Eclipse Altitude J Princess - Red, which calved in November.
They might carry the young cow through to the Victorian Winter Fair or might look to flush it.
"It would be good to get some embryos back to our partners in New Zealand," he said.
Judge Murray Sowter said he was impressed by the overall correctness of the heifer.
"This junior two-year-old is an outstanding heifer," he said.
"She's a beautifully balanced heifer, an unbelievable correct set of feet and legs, and has the ability to walk around her udder.
"She got such a beautiful top and extension of neck and the height of the rear udder."
Junior championship reward for show specialists
The junior Holstein champion Lightning Ridge Thunderstorm Nico was exhibited by a young couple who show cows as a hobby.
Kelly Bleijendaal and Mal Nikora, Longwarry, Vic, who own the heifer with Busybrook Holsteins, NZ, both work in the dairy industry but are not dairy farming.
Ms Bleijendaal is a calf rearer while Mr Nikora works for genetics company STG Australia.
The pair have been involved in showing for more than 10 years and have taken three strings of animals to IDW as a couple.
The raise their small herd of 15 show animals on the farm on which Ms Bleijendaal works.
Ms Bleijendaal said the championship win was unexpected but was a great reward for the work they put in to preparing their animals.
The picked up the champion calf at the Lightning Ridge Genetics sale in December for $8000, after having previously worked with and being impressed by its dam.
"We liked the family," Ms Bleijendaal said.
"She has six generations of excellent behind her and she's just a pretty fancy heifer herself so we thought she'd have a bright future."
Judge Murray Sowter said the calf "has a wonderful frame and style and width, so hard on top".
Fonterra pays NZ farmers record milk price
Fonterra New Zealand has lifted Kiwi farmers’ milk price to a new record. And Aussie farmers are asking what it means for them.
Kiwi dairy giant Fonterra has lifted the 2021-22 forecast milk price paid to its New Zealand farmers by 50 cents to a new mid-point of NZD $9.20 per kilogram milk solids.
The move is set to capture the attention of Australian farmers keen to know if Fonterra’s Australian arm will follow its parent company’s lead.
As it stands southeast Australian dairy farmers are being paid about $7-$7.30/kgMS in Australian dollars, equal to about NZD$7.40-$7.70.
A Fonterra Australia spokeswoman said at this stage the company was sticking to its current schedule and would not be reviewing Australian farmgate milk prices until next month.
The Weekly Times is trying to contact other local milk processors for comment.
Fonterra NZ’s decision follows a tightening of global supply dairy supplies, which lifted last week’s Global Dairy Trade index to 1397, a level not seen since March 2014.
The NZ Fonterra Co-operative Group issued a statement today declaring it had lifted this season’s forecast farmgate milk price range from NZD $8.40-$9.00/kgMS to NZD $8.90-$9.50 per kgMS, up from NZD $8.40-$9.00 per kgMS.
It’s the highest price Fonterra has ever paid farmers, since it was formed in October 2001.
NZ Fonterra chief executive Miles Hurrell said the price lift was “the result of consistent demand for dairy at a time of constrained global milk supply.
“In general, demand globally remains strong – although, we are seeing this vary across our geographic spread.
“Overall, global milk supply growth is forecast to track below average levels, with European milk production growth down on last year and US milk growth slowing due to high feed costs.
“It’s a similar supply picture in New Zealand. Earlier this month we reduced our forecast milk collections for 2021-22 from 1525 million kgMS to 1500m kgMS due to varied weather and challenging growing conditions.
“While the higher forecast Farmgate Milk Price does put pressure on our margins in our consumer and foodservice businesses, prices in our ingredients business are favourable for milk price and earnings at this stage. As a result, we remain comfortable with our current 2021/22 earnings guidance of 25-35 cents per share.”
Mr Hurrell said there are a number of factors the Co-op is keeping a close eye on, including growing inflationary pressures impacting on operational costs, the increased potential for volatility as a result of high dairy prices and economic disruptions from COVID-19, particularly as governments respond to the .rapid spread of the Omicron variant.
GDT results from last week show butter prices have risen from US$4458 in July last year to US$6158 last week.
Whole milk powder have also risen by 5.6 per cent in the two weeks leading up to last Tuesday’s auction, while skim milk powder jumped 5 per cent.
Dairies impacted by heavy rainfall and flooding
Recovery and repairs are underway for the Gympie, Wide-Bay and Burnett regions after being affected by ex-tropical cyclone Seth last week. Floodwaters that impacted the region affected the accessibility of highways, bridges, and creek crossings. This caused significant logistical issues for feed trucks, milk tankers and worker accessibility to farms.
Dairy farms around the region were impacted with varying severity with farm roads washed away, irrigation systems damaged and fences taken down or caught with debris. Flood water also affected some of our hay and crop producing farmers with paddocks inundated and crops waterlogged. A full damage report is yet to be compiled as assessments and recovery is still underway.
The impacts of a weather event such as this will continue to be experienced by our farmers well after the flood water recedes with ongoing cell count or mastitis issues caused from the combination of compromised cow health and change in environmental conditions.
Flood waters can also have a long-term impact on the farm through weed seed and nutrient deposits where floodwaters have sat as well as the removal of nutrients from runoff and erosion. This may have an impact on the short- and long- term soil health, influencing soil carbon, calcium, and magnesium ratios and available phosphorous.
More information and resources on long-term flood impacts can be found on Growcom’s Agrilearn website under the NDRP: Floods program.
Category B assistance has been activated and is available to flood affected famers in this region, which entitle farmers within the declared disaster areas to fodder freight subsidies and concessional loans to ensure business continuity.
Grants jointly funded by the Commonwealth and Queensland Government have also been made available. Funding of up to $50,000 for primary producers, small businesses and not-for-profit to assist with the repairs and recovery efforts from the floods.
To find out more information about financial assistance, funding eligibility or to update us on flood damage please feel free to contact us.
Jade Chan, Project Officer eastAUSmilk
RAT supply: Agribusinesses to run out of tests as government seizes orders
“I’m pretty angry if I’m honest” said one agribusiness executive after the government seized his company’s rapid tests. See more reactions here.
Major agribusinesses say they are “angry” the government has seconded their orders of rapid antigen tests and they expect to run out of supplies within weeks.
Meanwhile farmers and packing house staff say they are driving hours every day in search of tests to keep their businesses running, but are coming home empty-handed.
Burra Foods chief executive Stewart Carson said he was “trying to look after (his) workforce as best (he) can”, but he found out on Friday his order of 400 tests had been seconded.
“It’s great for the government to say close contacts can return to work if they have a RAT (rapid antigen test), and then we have ours, plus a number of other companies as far as I know, seconded,” Mr Carson said.
“I’m pretty angry if I’m honest.”
He said he currently had 10 per cent of his workforce off due to Covid and had enough supplies of rapid antigen tests to get through the next week but after that “I don’t know what we’ll do,” he said.
Catherine Velisha has been trying to find rapid tests for her workers.
Fruit and vegetable suppliers have also been hit hard by the shortage of rapid tests.
Velisha Farms managing director Catherine Velisha, who runs farms and a packaging and distribution business in Werribee South, said she was down 50 per cent of her workforce due to staff either testing positive to Covid or being a close contact of someone who had tested positive.
She said a number of her staff would be able to return to work if she could find rapid tests, but despite trying to source tests from a number of local stores, she hadn’t been able to find any.
“With the new directives we’d be able to bring the workforce back a bit quicker if we’re able to get those rapid tests, but unfortunately it’s been a real battle,” she said.
“So what we’ve got is new directives, but unfortunately not the tools to implement those new directives.”
Her remaining staff were working extra hours to try to meet orders.
”You’ve got a stress on the workforce when you’ve got 50 per cent of the staff covering the other 50 per cent. You can do it for a few days, but how long is it feasible?” she said.
Emma Germano says major businesses could run out of tests within weeks. Picture: Aaron Francis/The Australian Victorian Farmers Federation president Emma Germano said she was fielding calls from dozens of farmers in the same situation.
“The new directives that have come into place are completely irrelevant to our industry,” she said.
“There is a huge amount of frustration for many growers who have contacted us with the same issue.
“People are driving into town every day (looking for tests).”
“A lot of the larger businesses I’ve spoken to say that they’ve got supply but it is only going to last two weeks or three weeks.”
Source: Else Kennedy, The Weekly Times, 17 January 2022
VFF income crashes: Peak farmer body suffers $305,450 operating loss
The Victorian Farmers Federation is staying silent despite financials it lodged with ASIC showing a significant operating loss.
VFF president Emma Germano refuses to comment on the federation’s 2021 finances.
The Victorian Farmers Federation recorded an operating loss of $305,450 in the 12 months to September 30 last year, a slight improvement on the $445,162 loss of 2020.
However a $1.6 million gain on the revaluation of its assets, including the VFF’s Collins St headquarters, allowed the federation to claim an overall surplus of $1.35 million for 2021.
The VFF’s books show the value of Farrer House rose by $598,414 over the year to reach $30.88m despite a major slump in demand for rental space in Melbourne’s CBD.
But while the asset revaluation delivered a surplus, the VFF’s total income fell from $10.4m in 2020 to just $6.7m in 2021.
While the revenue loss may seem severe, most of it was made up of government grants that simply flowed into the VFF’s coffers and back out the door again to farmers – in the form of quadbike roll bar and cattle underpass rebates, as well as biosecurity and safety program grants.
It has meant that while government grant revenue fell from $5.34m in 2020 to just $2m in the 12 months to September 30 last year, it had little impact on the federation’s core finances.
All up the VFF handed out just $116,976 in rebates last year, compared to $4.33m in 2020.
Farmer member levy and subscription revenue remained relatively stable at $3.501m in the 12 months to September last year, compared to $3.545m in 2020.
The VFF did suffer a significant drop in revenue from commercial agreements, which fell from $1.3m to $851,905.
Rental income from Farrer House fell from $1.8m to $1.4m as Covid restrictions suppressed demand for office space in Melbourne’s CBD.
But these losses were offset to some degree by Covid stimulus funding of $280,032 last year, plus a one-off injection of $350,525, generated from the sale of the National Farmers Federation’s Canberra offices, in which the VFF held a stake.
VFF president Emma Germano refused to answer questions on the financials, stating “we want to ensure our members have the first opportunity to hear directly from the VFF at next month’s (Feb 23) AGM”.
“As a courtesy to our members, we will not be releasing further information until this date.”
However the VFF financials are available to the public, after being lodged with the Australian Securities and Investment Corporation on December 20.
All up over the past two years the VFF has received $849,532 in what it’s financials describe as “Covid stimulus” funding – mainly JobKeeper payments.
An absence of Covid support payments and VFF’s loss of a majority of its largest chicken-meat farmer members — who each paid an average of more than $3000 in membership levies annually — are expected to place further pressure on finances this year.
Communication expenses have already been halved from $233,057 in 2020 to $122,738.
But IT support costs have surged from $243,111 to $350,797 in 2020, while over the past two years, while in the past, while consultants fees jumped from $739,344 to $916,467 and Promotional, newsletter and project expenses rose from $110,905 to $365,133.
Source: Peter Hunt, The Weekly Times, 18 January 2022
International Dairy Week 2022 at Tatura: Your guide to the results
Interbreed Intermediate champion
CHAMPION: Jersey cow, Kings Vale Joel Made, Roger Perrett
National Holstein Show Intermediate champion
CHAMPION: Eclipse Altitude J Princess, Red, Robsvue & Busybrook
RESERVE: Byrne Lea Octane Buttersnap, Rowlands Park
HONOURABLE MENTION: Avonlea Tatoo Dixie, J & C Gardiner
Red & White Intermediate champion
CHAMPION: Eclipse Altitude J Princess, Red, Robsvue & Busybrook
RESERVE: Gorbro Unstopabull Admire, Gorbro Holsteins
HONOURABLE MENTION: Lightning Ridge Cmd Dback Barbara, J Jennings & B, E & R Thomas
Declan Patten and Bradley Cullen were not even primary school age when International Dairy Week began three decades ago.
Now the dairy duo are running the nation’s most prestigious cattle show, which kicked off this week in Tatura.
Mr Cullen, 27, and Mr Patten, 33, were set to take over the reins last year from IDW founder Brian Leslie before the pandemic put a logistical spanner in the works.
However, the event kicked off on Sunday and the new team, which includes co-ordinator Stacey Leppert, have ushered hundreds of farmers and exhibitors to the Tatura Park.
Mr Cullen, who grew up on a dairy farm along NSW’s south coast, has previously attended IDW as a photographer as well as an exhibitor.
“Brian (Leslie) has established an event which is so highly regarded throughout the dairy world,” he said.
“When the opportunity came up to take over the management of Dairy Week, we were really keen to get started. We want Dairy Week to be a celebration of our industry. It’s so well regarded within our sector but we hope in the coming years to get more people outside of dairy involved and understanding how the sector operates.”
Mr Patten, originally from Gippsland, has spent the past decade working in the dairy sector both in Australia and on an American farm outside Chicago.
“Pre-pandemic, I was heading over to the US pretty frequently,” he said.
“There’s a real pride in agriculture in America and an understanding of the importance of dairy that we want to bring here to Australia.”
Source: Alex Sinnott, The Weekly Times, 20 January 2022
Input costs are squeezing dairy margins again
With the end of the drought and an improvement in farm gate milk price the dairy industry has been increasingly positive about its future. But just when everything seems to be aligning the record increase in fertiliser, chemical and steel prices have dampened the mood.
While each individual has varying usage, efficiency and agronomy practices there is no doubt that the astronomical increases are chewing into the bottom line significantly.
I asked one of our Scenic Rim members Ross McInnes to have a look at the numbers. Some of the calculations of involving farm usage multiplied by the increase in urea prices on farm are showing an increase to cost of production of more than 3.5 cents per litre.
This does not take into account the price increases to many chemicals such as Glyphosphate or the significant increase to the price of steel for infrastructure and maintenance. It’s quite realistic and not overstated to say on farm we are looking at an increase to the cost of production in excess of 5 cents per litre.
This is unprecedented outside of a natural disaster such as drought and it seems there is little relief in sight.
We are told this is a market reaction due to the increased price of gas used for urea production. We are also told local production won’t make a difference as the urea price is set internationally. Some are even suggesting this is a result of the new low carbon economy. While we are investigating all of these issues at eastAUSmilk one thing is very clear for our farmers. To continue to produce milk at current levels they will need good access to affordable fertiliser and chemicals very soon, or an increase to the farm gate milk price.
Matt Trace, President eastAUSmilk
Membership of your advocacy body
The importance of any industry advocacy body is the breath of its membership. This is particularly so when you are discussing issues of policy with politicians and other stakeholders. To be able to represent a broad spectrum of the dairy industry from the southern border of NSW to the tip of Queensland is vitally important as it substantiates those policy matters that we wish to progress. The upcoming federal election and state elections to be held thereafter will provide a platform from which policy issues can be annunciated with those in government and opposition and those who have a way to influence policy outcomes.
Over the coming months, the members and district councils of eastAUSmilk will be called upon to provide support to not only influence outcomes in the political arena but also provide advice and guidance on issues of policy that need to be considered for further discussion. Your membership entitles you to be involved with those discussions. We encourage you to continue to support eastAUSmilk as we continue to grow and represent your views before government, opposition and other industry associations.
We encourage you to assist non-members in becoming a member of the dairy industry body that best represents your views before those who make the decisions that impact upon your dairy farming enterprise. Information regarding membership can be obtained by contacting the eastAUSmilk office.
Reaching the dry patches in Solid Set Irrigation
A Mount Mee dairy has implemented an irrigation energy management opportunity from the energy audit report they received through the Energy Savers Plus Program Extension. Through the program the business received a dairy shed energy audit, carried out by AgVet Energy, as well as an irrigation energy audit, completed by The Energy Guys, both engaged by QDO.
Replacing the pump, changing the pump location to shorten the mainline and changing sprinklers in the solid set irrigation system has increased the pumping, water, and labour efficiency.
eastAUSmilk Project Officer, Jade Chan, and I visited the site and conducted a performance test on the irrigation to evaluate the actual energy savings and outcomes achieved since implementing a recommendation from the energy audit.
The previous irrigation system did not perform well, and uniformity of the irrigation was very poor, with 20% of the area receiving nil or minimal irrigation applications. Now the dry area has been reduced to just 2% with the wetted diameter almost doubling from 7.2 to 14m.
The catch can data shows the distribution uniformity has significantly improved from under 14% to over 62%. Similarly, the coefficient of uniformity has also been improved from 43.5% to now over 78%.
The main saving for the business has been the increase in irrigatable area and improved uniformity of water application. Across the 4.4Ha an increased in pasture production of around 18 tonnes of dry matter annually could be expected.
The new system almost halved the pumping time; however, uses 541kWh more energy increasing the business’ electricity bill approximately $122 annually. The new pump has a higher energy draw 20kW per hour. With the system flow rate of 17L per second it runs for 220 hours to deliver 13.5mL, a total of 4,409kW per annum. The old pump’s energy draw was 9.6kW per hour with a flow rate of 9.3L per second it pumped for 403 hours to achieve the same 13.5mL, a total of 3,868kW per annum.
The total expenditure for the business to implement the upgrades was just over $30,000. Valuing the increased pasture production at $7,500 and minus the $122 increase in electricity bill the calculated payback period of this investment is 4.1 years with a return on investment of 24%.
There will also be a significant labour saving for the business that was not considered in the calculations. The increased flow rate allows for two lines of sprinklers to be run where previously only one line was operated at a time which will close to halve the labour required to irrigate the area.
Torie Harrison – eastAUSmilk Project Officer
Looking forward and a little looking back
What a year of contrasts it has been in the northern dairy industry. From drought and empty silage pits to a widespread improvement in seasonal conditions combined with increasing milk prices mid- year, things have turned around very quickly. In recent months the record increases in fertiliser and fuel prices have taken away some of the confidence, but overall things are looking up.
Yes, we have seen and continue to see exits post drought and I have no doubt the strong beef price is allowing for a smooth transition for some. But where to from here? Do we as individuals and as industry just take a breath and solidify our current position, or do we look to the future and invest in our business and grow?
Looking at the cycles of our industry since deregulation I believe now is the time for those who are keen to grow their business and look to the future. We have a solid demand for milk from the major processors and have seen this drive prices up this year. With the latest retailer increase to generic milk pricing $1 a litre milk is now absolutely dead. In part, thanks to consumers and the past efforts of QDO and Dairy Connect. All of this means we have no downward pressure on farm gate milk price in the short to medium term in QLD and NSW.
Yet we still face challenges ahead. With the new consumer and retailer focus on ESG (environmental, social and governance) requirements that includes traditional environmental concerns as well as emissions, animal welfare and general social licence to operate we must be prepared to adapt. As in the past advocacy must step up and ensure the transition to new practices is done in a way and with enough assistance to have a net positive effect on the farmers hip pocket.
With the newly formed eastAUSmilk there has been a renewed optimism around the northern dairy industry and what advocacy can do to help farmers get back on the front foot. We have a positive agenda and will be focussed on not just survival but developing a thriving and prosperous dairy industry that we can be proud of.
Matt Trace, Chair eastAUSmilk
Andrew Forrest buys $108m slice of Bega Cheese
Mining billionaire Andrew Forrest has bought a significant share in Bega Cheese, extending his food empire even further.
Key points:
The iron ore magnate buys 6.6 per cent of Bega Cheese worth $108m
While Bega shares rise 5 per cent, the year ahead could be challenging
There is talk of Bega launching a takeover of Fonterra's Australian operations
One of his companies, Tattarang AgriFood Investments, purchased more than 20 million shares in Bega Cheese this week for about $108 million.
It gives him a 6.6 per cent share of the dairy company and makes him its fourth largest shareholder.
Just a week ago Bega Cheese shares fell 10 per cent off the back of a rocky forecast for next year.
It reported in a statement to the stock exchange that the impact of the pandemic had been "extensive and significant".
This was due to lockdowns, factory shutdowns, increased safety and testing requirements, major cost increases and shortages across the supply chain, it said.
There had also been changes in key markets like China affecting the sales of infant and toddler dairy products.
But the company's share price was up 5 per cent on the final day of the year, and 33 per cent over five years, emphasising its successful transition from a farming cooperative into something the nation's richest people want to be involved in.
Why is Forrest getting into dairy?
Australia's second richest man, Mr Forrest has been diversifying his assets beyond the massive iron ore operations where he made his wealth.
He has bought shares in aquaculture, alternative foods, several large cattle properties and bought the iconic Australian clothing company RM Williams in 2020.
He also owns significant property assets and is involved in major new hydrogen projects.
Dairy farmer welcomes investment
One of Bega Cheese's original shareholders is farmer Phillippa Russell — the family property was one of the first farms that established the former cooperative in 1899.
Ms Russell said "it's a good thing" to see Mr Forrest taking a stake in the company.
"He's showing his confidence in agribusiness and food products."
The higher share price was also a nice new year surprise for shareholders, she added.
"A lot of mum and dads out there own Bega Cheese — it's still an Australian company. I'm very proud of it and I think it's still got a long way to go."
Does Forrest have an eye on Fonterra?
There is speculation that Bega could launch a takeover bid for the Australian arm of New Zealand dairy company Fonterra.
Analyst Jonathan Snape from Potter Bell looked at the potential for a deal, noting that Fonterra's milk supply had shrunk by 30 per cent over three years and it lost $1.8 billion from its Australian operations last financial year.
Fonterra announced recently it was turning its attention back on its New Zealand operations.
In his report, Mr Snape said Bega would have to borrow to pay for an offer for Fonterra but that it was an attractive deal because it would enable it to regain control of the Bega Cheese brand which had been sold to the NZ dairy giant.
"Bega has a strategy to own iconic brands, and the opportunity to repatriate the Bega brand, while adding Western Star, would have to be compelling."
More broadly, the dairy industry has made a big turnaround after some tough years, so it is not surprising that Mr Forrest is taking a slice of what could be a tasty pie in the next few years.
Bega dairy farmer Will Russell aims to lift profits with homegrown feed
A combination of data, research and technology play a huge role in the success of this NSW Bega Valley dairy business.
Will Russell has some long-term plans for his family’s dairy farm.
Production growth, a lift in cow numbers and a profit boost are priorities but farming in the NSW Bega Valley — he understands the need for cost control and the importance of maximising homegrown feed.
Bought-in feed is expensive because it’s trucked from hundreds of kilometres away, while seasonal conditions mean resowing paddocks is an annual expense.
That’s why in the three years since he returned home to his 160-year-old family farm, he’s concentrated on the farm’s feedbase, while improving his pasture management and irrigation knowledge.
Thanks to his parents, Rob and Pip, Will understood these as the profit drivers for their grazing enterprise – he’s just applying some modern tweaks.
“Mum and Dad had taken the farm from 80 cows in a walk-through dairy to 300 cows milking in a 20-a-side swingover and made huge steps in terms of per cow production and the quality feed grown on farm,” he said.
“They did exactly what I’m trying to do. They used the technology of their day to do it and I’m using the latest data, research and tech to keep on pushing those things further and further.”
Will farms with his family at Jellat Jellat, near Bega, milking 300 mostly registered Illawarras across a 125ha milking platform.
About 89 per cent of this area is irrigated using a combination of a centre pivot, bike shift sprinklers, K-Line pods and two new hard-hose travelling irrigators.
BEST PRACTICE
Returning home after studying and working as an engineer, Will sought industry courses to learn about best practice irrigation and ways to maximise grazing management.
He’s since reduced the number of paddocks on the farm from 30 to 21, to adjust the number of hectares offered more easily in each paddock to match feed availability.
When it came to irrigation, he was introduced to the concept of “readily available water” or RAW and the affect this has on crop and pasture yields.
RAW is a measure of the water available for extraction by plants and varies between soil types, crops, and season – dictating how often irrigation is required.
Will now calculates the ideal RAW for the farm’s varied crops and pasture species using soil moisture probes and applies water accordingly.
This measured and managed approach to pastures and irrigation has paid dividends with yield increases across the board.
Consistency is his next yardstick.
“Depending on the season we’d previously grow maize crops between 40-70 wet tonnes per hectare, now we want to be up at 70 wet tonnes a hectare as a benchmark every year,” Will said.
“We don’t want fluctuation. We know if we do the things in our control right, we can get up to 70 wet tonnes a hectare and then the whole system works.”
Irrigation is a key to the Bega Valley dairy industry as its often more cost effective to grow and ensile feed, even with the yearly expense of resowing annual pastures than buying fodder from “out west”.
For the Russell family, 15ha of maize (corn) grown each year provides the feed security for their pasture gap in late autumn and early winter, while improvements to their pasture-base – lead by irrigation upgrades – is lifting the amount of directly grazed feed.
FEED FOR THOUGHT
In the past few years, the Russells have decreased the proportion of kikuyu in their milking platform from a peak of up to 80 per cent (100ha). At 60ha now, it represents about 54 per cent and is oversown with annual ryegrass for winter feed. Italian ryegrass and a “new experiment” of 25ha of perennial ryegrass makes up the rest.
Thanks to an upgrade to a hard-hose irrigator, assisting irrigation reliability, Will’s having a “a real crack” at keeping perennial ryegrass alive for at least three years to improve overall pasture quality.
During the past two years the Russells have utilised 10 tonnes/ha of kikuyu and annual ryegrass under their centre pivot, and this is something Will also wants to improve by adding oats to the oversow mix.
“Without a doubt growing more tonnes of whatever crop we put in ground, annual ryegrass or corn, it will directly push down the cost of tonnes grown,” he said.
“Most of the costs – seed, irrigation infrastructure, water rights – are fixed so putting fertiliser and water on at more of the right time and quantity will grow more fairly cheap tonnes and it should dilute those high upfront fixed costs, we should see a drop in feed costs per dry matter grown.”
Will herding some of his cows.
Another pasture management tweak has included using low levels of glyphosate to suppress the kikuyu in early March to assist with the establishment of annual pastures.
This practice has been important to grow a winter feed wedge – vital to increasing the proportion of grazed feed in the herd’s diet.
These small changes have delivered improvements for two important business metrics- per cow production and the grazed portion of the cow’s diet.
PRODUCTION RISE
Per-cow production has increased from 460-470kg of milk solids to 510kg of MS, with Will aiming for production to match the herd’s average 550kg liveweight.
The grazed portion of each cow’s diet has increased from two tonnes/cow to 2.4 tonnes/cow.
Aiming for 2.5 tonnes/cow, Will said this would be supplemented with “just over” two tonnes per cow per lactation fed in the bail and homegrown silage.
“That’s where I think we can keep a relatively low cost of production by – as first priority – always focusing on quality grazed feed into the cow,” he said. “Once we’ve met that requirement, then we can look at growing and conserving silage. We don’t want to have any of the farm in corn just sitting there growing a silage crop when cows could be eating off that paddock.”
As Will and his family consider expanding their herd to 400, he’s conscious of matching feed to cow numbers.
“During the next three to five years if we can show that we are consistently putting an extra 100 tonnes DM away in the pit each year we should be able to milk another 25 cows and work up from there,” he said.
“But if we ever hope to sustainably milk more cows in the future, we probably should have more off-blocks to grow fodder and bring it back to the farm, freeing up more grazing area over the spring and summer where corn is grown currently.”
Will said purchasing or leasing more land to grow corn would be a better investment than relying on bought-in feed.
“We already have a system in place to grow it, conserve it and feed it out,” he said. “It’s very little risk, we control it, know what to do with it and how to grow quality feed from corn. It’s also cheaper feed than buying it out west and we are not at the whim of the market. We want to build our ability to grow homegrown feed before we build herd numbers.”
eastAUSmilk outlines its priorities
The leadership of former QDO president Brian Tessmann was acknowledged at eastAUSmilk's first board meeting last week.
New dairy lobby group eastAUSmilk has outlined its priorities, with an emphasis on fresh milk producers.
The organisations board of directors held its first meeting last week.
This provided an opportunity for the new group, representing eastern seaboard dairy producers from the southern border of NSW to the tip of Queensland, to meet to discuss issues challenging the industry.
President Matt Trace said the opportunities arising from the merger of Queensland Dairyfarmers' Organisation and the Dairy Connect Farmers Group were profound.
"They represent a strong platform from which to represent dairy producers with a unity of purpose before government, retailers, processors and industry stakeholders," he said.
"The inaugural eastAUSmilk board meeting illustrated that we had far more in common than what a 'false border' represents across agriculture generally and dairy specifically.
"Fresh milk producers face many common issues and we will be putting forward strong policy positions on issues including 'truth in labelling'; standardised milk sampling, testing and calibration of equipment; environmental and climate sustainability and enhancing the industry mandatory code of conduct.
"All of which will lead to eastAUSmilk seeking strong farmgate prices to ensure a viable dairy industry now and into the future."
Advocacy and lobbying will play a vital part of achieving positive and pro-active policy outcomes in those areas of concern to dairy farmers.
eastAUSmilk co-CEO Shaughn Morgan said the Federal election next year would provide an opportunity to seek commitments from the government, opposition and independent senators to commit to the recommendations of recent Senate and State Parliamentary Committee Inquiries.
"The Australian industry continues to confront issues that date back to dairy deregulation and now is the time to prepare for the future growth of the industry generally," he said
"The NSW Government and Opposition accepted the recommendation from the NSW Parliamentary Inquiry into the sustainability of the State's dairy industry in 2018 for the establishment of a NSW Dairy Advocate, a similar commitment federally to the establishment of a Federal Dairy Advocate, with statutory powers and an independent office to oversee the industry, with Australian Competition and Consumer Commission support and guidance, would send a strong message of political will for future dairy growth and sustainability.
"The commissioner would be a 'one stop shop' for the industry and would be an advocate with government as well as safeguarding the welfare of the dairy industry in conjunction with the mandatory dairy code."
The board also acknowledged the commitment, drive and passion that the former QDO president Brian Tessmann had provided to the dairy industry.
Mr Trace said Mr Tessmann's leadership assisted in the creation of eastAUSmilk and "was the catalyst that brought fresh milk producers together to be united and to grow the business of dairy".
"Together, we will move toward a collaborative dairy farmer cohort cooperating collectively for the good of the dairy industry generally."
Applications open for Woolworths dairy innovation grants
Woolworths is calling on Australia's dairy farmers to share their plans for on-farm improvement, with grants of up to $100,000 available through the latest round of Woolworths' Dairy Innovation Fund.
The second round of the $5 million Woolworths Dairy Innovation Fund is now open and seeking applications from farmers for grants to support on-farm projects that deliver innovation, efficiency and seasonal resilience.
In June, the inaugural round of the fund awarded more than $2 million in grants to 24 farmers across the country for projects including solar-powered desalination, milk sensor technology, fodder infrastructure, sustainability improvements, enhanced bushfire protection, herd monitoring technology and dairy automation.
Woolworths is calling on Australia's dairy farmers to share their plans for on-farm improvement, with grants of up to $100,000 available through the latest round of Woolworths' Dairy Innovation Fund.
Australian dairy farmers in the Woolworths supply chain, including those supplying vendor brands, can apply to the fund before February 20, 2022.
"We're calling on Australian dairy farmers to come to us with innovative plans that we can help bring to life through the Dairy Innovation Fund," Woolworths dairy merchandise manager Will Herron said.
"With improved conditions over recent seasons, future focused farmers are investing in technology and infrastructure to build resilient businesses that can prosper through seasonal challenges in the years ahead.
"We want to partner with farmers to help create the farms of the future that will continue to deliver quality dairy to Australians for generations to come.
"We've already seen the strength of ambition across Australian dairy farms in the first round of the fund and we look forward to backing another crop of innovative and impactful projects in this round."
Herd-monitoring collars
Victorian farmer Lisa Dwyer received $100,000 from the inaugural round of the Woolworths Dairy Innovation Fund earlier this year to rollout herd monitoring collars across more than 400 cows on the Purnim farm she runs with her husband, Eddie.
The grant will also fund a new automatic draft system on the couple's property.
The Dwyers supply to Fonterra and employ a team of six ranging in age from their twenties to seventies.
Mrs Dwyer said in the six months since they introduced the new technology she had already seen the benefits in early detection of illness and heat, which has improved animal welfare and breeding, boosted production and reduced costs.
"In the 18 years I've been dairying, this is the single biggest game changer we've come across and it's helping us foster a workplace that's progressive and rewarding for our team," she said.
"We've seen first-hand the benefits technology can bring to our business, our people and most importantly, our animals, and it wouldn't have been possible without the Woolworths Dairy Innovation Fund."
Mrs Dwyer is a vocal advocate for technological innovation across Australian dairy farms and encourages farmers to consider the strategic investments they could make with the assistance of a grant from Woolworths.
"While our industry's past has largely been driven by commodity exports, our future will be driven by a transition to high-value agricultural production - and that can only be achieved through clever and compelling technological innovation," she said.
United Dairyfarmers of Victoria president Paul Mumford said the Woolworths Dairy Innovation Fund allowed farmers to invest in substantial projects that would assist their farm businesses to be more profitable and sustainable into the future.
"These types of investments will not only improve the running of businesses now, but play a role in retaining and attracting farmers to the industry through greater on-farm efficiency to help balance modern family life," he said.
The Dairy Innovation Fund was launched in November 2020 to invest a total of $5 million in about 60 businesses over three years.
The fund was designed in consultation with peak industry groups Australian Dairy Farmers, Dairy Australia, National Farmers' Federation, Premium Milk Ltd and the NSW Farmers' Association Dairy Committee.
To read more about the fund and how to apply, visit woolworths.com.au
The 38-point list dairy will take to Canberra ahead of the election
COURTING CANBERRA: ADF strategy and policy director Craig Hough has released a 38-point list the peak advocacy body will present to politicians ahead of the federal election.
Australia's peak advocacy body for dairy farmers has released the wish list it will present to politicians in the run up to next year's federal election.
It's a long, 38-item, list and Australian Dairy Farmers' policy and strategy director Craig Hough said every single one was important and would boost members' bottom lines.
The big ticket items, he said, included the workforce strategy to help overcome labour shortages as well as climate change adaptation and mitigation.
Still, it was clear both he and ADF chief executive David Inall had a favourite: making sure the elderly get enough dairy in their diet.
"A new big ticket priority would be the fractures research and prescribing minimum standards in aged care around nutritional standards," Mr Hough said.
"That's a demand-side intervention but it plays into the issue around malnutrition."
He said research showing the risk of bone fractures could be reduced with dairy consumption, while deficiencies in the diets of aged care residents had been identified by the Royal Commission.
The finding made this, Mr Hough said, the perfect time for the federal government to develop national mandatory minimal nutritional standards for food provision in residential aged care.
The long-running campaign to stave off European claims that would prevent Australian dairy manufacturers using common dairy food names like Gruyere, on one hand while on the other, demand the word "milk" be reserved for dairy only, would continue.
"ADF is calling on politicians to address misleading product labelling and marketing, including from plant-based alternatives to dairy, as well as trade barriers and supply chain constraints," Mr Hough said.
Another delicate topic on the ADF election list concerns investment in research and development.
Pointing to flatlined productivity over the last decade, the peak body was an increase in agricultural R&D funds, but Mr Hough said it was not suggesting an increase in the farm levy.
Mr Inall said dairy farmers seemed content with Dairy Australia's work on genetics but ADF would seek more input on DA's direction.
"It's going to be a bigger project for us next year," he said.
DA had invited ADF to have "wider and deeper" discussions about its five strategic plans, which would begin in January.
To grow jobs and liveability in regional areas, the ADF will ask for $300 million in funding for the National Agriculture Workforce Strategy, which would include agriculture in the school curriculum as well as improving training opportunities.
It also wants government to encourage more exploration and development of fertiliser production in Australia.
Environmental strategies include investing in the recommendations of the Dairy Industry Adaptation Pathways and Northeast Dairy Climate Futures projects; implementing the recommendations of the Productivity Commission's evaluation of the Murray-Darling Basin Plan; and providing a second round of the Energy Efficient Communities Program - Dairy Farming Grants.
Mr Inall said ADF would meet with key representatives of all the major political parties in 2022.
ADF hoped to enlist the state dairy organisations and their members in canvassing politicians, too.
"There's nothing more important than boots on the ground and farmers going into electoral offices out in their country towns," Mr Inall said.
As well as releasing the comprehensive election policy statement, the ADF would produce flyers and talking points for farmers keen to lobby their local members of parliament.
Source: Marian Macdonald, Queensland Country Life, 22 December 2021
Fond farewell to long serving QDO President Brian Tessmann
With the formation of eastAUSmilk the QLD dairy industry is saying farewell to not only the QDO name but also the long serving President Brian Tessmann. Having previously stated he would step down from state duties after finalising the recent QLD/NSW merger, he has as we have become accustomed been true to his word.
Brian was elected to the Wide Bay Burnett District Council of QDO in 1995 serving as District secretary until 2003. In 2000, Brian was elected to State Council serving first as Vice President before being elected President in 2009.
President Brian has seen the highs and lows of dairy advocacy and the industry in general across QLD.
From the devastation of deregulation, the millennium drought, 2011 floods, cyclones Yasi and Debbie, discount $1 a litre milk and the most recent drought there has always been something belting the QLD dairy industry while Brian has been at the table.
I know he feels that leaving at this time with the death of $1 a litre milk and a now solid farm gate milk price combined with buoyant seasonal conditions, there is a fresh hope and optimism of growth and prosperity for the QLD dairy industry.
Having been on the board with Brian the last five years I’ve gained an appreciation of his efforts that I could not have seen previously. Some of you may not know that Brian is an avid reader of history of to name a couple of things religion, war and conquest. He also has an exceptional memory to recall previous meetings, discussions and debates over dairy industry policy. The combination of these traits has meant that Brian has a tremendous depth of knowledge and understanding of what is the right policy position for the farmers he represents and also the smartest way of achieving that.
While his intellect has been a strength perhaps his greatest asset has been his will to fight hard for those he represents. If it’s in the interest of farmers he will never back down.
So on behalf of QDO and the now eastAUSmilk board, our members and the QLD dairy industry in general, I say thank you Brian for your service and commitment and to the personal sacrifice you and your family have made for the QLD dairy industry.
Matt Trace, Chair eastAUSmilk
eastAUSmilk: The hard work starts now
The first meeting of the eastAUSmilk board of directors was held this week providing an opportunity for the new dairy farmer industry body, representing eastern seaboard dairy producers from the southern border of NSW to the tip of Queensland, to meet to discuss issues challenging the industry.
President of eastAUSmilk, Matt Trace, said the opportunities arising from the merger of Queensland Dairyfarmers’ Organisation and the Dairy Connect Farmers Group are profound.
“They represent a strong platform from which to represent dairy producers with a unity of purpose before government, retailers, processors and industry stakeholders,” Matt said.
"The inaugural eastAUSmilk board meeting illustrated that we had far more in common than what a 'false border' represents across agriculture generally and dairy specifically.
"Fresh milk producers face many common issues and we will be putting forward strong policy positions on issues including 'truth in labelling'; standardised milk sampling, testing and calibration of equipment; environmental and climate sustainability and enhancing the industry mandatory code of conduct.
"All of which will lead to eastAUSmilk seeking strong farmgate prices to ensure a viable dairy industry now and into the future."
Advocacy and lobbying will play a vital part of achieving positive and pro-active policy outcomes in those areas of concern to dairy farmers.
Co-CEO of eastAUSmilk, Shaughn Morgan, said today that the Federal election next year would provide an opportunity to seek commitments from the government, opposition and independent senators to commit to the recommendations of recent Senate and State Parliamentary Committee Inquiries.
"The Australian industry continues to confront issues that date back to dairy deregulation and now is the time to prepare for the future growth of the industry generally," Shaughn said
"The NSW Government and Opposition accepted the recommendation from the NSW Parliamentary Inquiry into the sustainability of the State’s dairy industry in 2018 for the establishment of a NSW Dairy Advocate, a similar commitment federally to the establishment of a Federal Dairy Advocate, with statutory powers and an independent office to oversee the industry, with ACCC support and guidance, would send a strong message of political will for future dairy growth and sustainability.
"The Commissioner would be a 'one stop shop' for the industry and would be an advocate with Government as well as safeguarding the welfare of the dairy industry in conjunction with the mandatory dairy code."
The Board also acknowledged the commitment, drive and passion that the former President of QDO, Brian Tessmann, had provided to the dairy industry.
Matt Trace said that "his leadership assisted in the creation of eastAUSmilk and was the catalyst that brought fresh milk producers together to be united and to grow the business of dairy".
"Together, we will move toward a collaborative dairy farmer cohort cooperating collectively for the good of the dairy industry generally."
Matt Trace, Chair eastAUSmilk
Shaughn Morgan, co-CEO eastAUSmilk
Social responsibility push for dairies
Lactalis International, the largest dairy processing company in the world, hopes to have all of its milk suppliers around the globe signed up to its CSR project by 2025, he said.
DAIRY processor Lactalis wants farmers supplying it with milk, including Western Australian farmers supplying Harvey Fresh, to join its global Corporate Social Responsibility (CSR) project.
Three of its 14 Harvey Fresh suppliers are already part of a pilot CSR project to collect and analyse detailed data on their farming operations, Lactalis Australia's WA supplier relationships manager Carl Dinkelmann told last week's Western Dairy Spring Forum at Bunbury.
Lactalis hopes the other 11 in WA and the remainder of its Australian suppliers will voluntarily join the CSR project - once it is formally launched nationally in January - to have their farms independently audited at least once under the program within the next four years, Mr Dinkelmann said.
Lactalis International, the largest dairy processing company in the world, hopes to have all of its milk suppliers around the globe signed up to its CSR project by 2025, he said.
Currently, the CSR project collects data from dairy farms across 11 countries which produce 76 per cent of the global "Lactalis milk pool", Mr Dinkelmann said.
He explained the CSR project collected data on a range of dairy farm operational areas, with the ultimate aim of establishing best practices for its milk suppliers to enhance sustainability, minimise greenhouse gas emissions and preserve water resources, while improving animal welfare and food safety.
"(Lactalis) global have launched the project to reduce our environmental footprint, strengthen our positive social impacts and better answer to the increasing expectations of our clients and civil society," Mr Dinkelmann said.
"The idea is to try and get an indication of (greenhouse gas emission) outputs across the (dairy products) supply chain.
"It's not so much a carbon program, but an environmental program that is also looking at animal welfare, which is a huge part of our industry."
Mr Dinkelmann said there are two components to the project for Harvey Fresh and other Lactalis Australia dairy farmer suppliers who sign up.
One is an onfarm audit requiring farmers to complete an animal welfare questionnaire and allow an independent inspection and assessment of their operation and herds.
The second requires the farmer to input a broad range of farming operational data onto a dairy module of the Cool Farms Tool digital platform which has a greenhouse gas emissions calculator as part of it.
The Department of Primary Industries and Regional Development also recommends the same digital platform be used by other farmers to self-assess their operations' likely greenhouse gas emissions.
"The onfarm assessments will look at things like is there enough water available (for cows to drink), how many troughs do you have, animal comfort including things like back scratchers - there are some farms that have them in holding yards coming into the dairy," Mr Dinkelmann said.
"They will also look at the condition of holding yards and the dairy.
"Then, on the sustainability side, it (CSR program) will be looking at your whole farm - dairy platform, pasture area, annual cropping program, how many trees you have in paddocks, energy consumption and whether it is from renewable sources, recycling of water and supplementary feeds."
Part of the interest in supplementary feeds was to determine whether they contained products like soybean and palm oil - responsible for modern mass deforestation to grow them as cash crops and blamed for contributing to global warming, he explained.
Lactalis's CSR program has already run for several years in France, the United Kingdom and Ireland - where farm employee health and safety and quality of 'work life' are also audited aspects of dairy farm operation - and some of the typical animal welfare questions farmers there answered were shown to the forum.
Animal welfare sample questions included about udder health, cows' productive lifetimes, mortality, use of growth-promoting substances, use of antibiotics and use of animal-derived protein in feed.
For calves the sample questions covered colostrum intake, fibre in feed, castration of male cattle, disbudding or dehorning and tail docking.
Onfarm audit assessments required inspection of a sample of lactating and dry cows, comprising 7-25pc of a herd, depending on herd size, an assessment sample shown to the forum indicated.
Observations to be recorded during assessments include human avoidance behaviour, body condition, cleanliness of yards and cowshed, lameness and skin changes.
Mr Dinkelmann said Lactalis Australia had already appointed a local independent assessor for the regular onfarm audits required by the CSR program after it is officially launched.
He indicated the data would be collected, processed, consolidated and used anonymously to try to establish national and international average performance indicators and to compare national and international statistics for "pools" of Lactalis supplier farms.
The intention was also to identify "priority onfarm sustainability topics" Lactalis could discuss with its supplier farmers and to "communicate best practices and related impacts" to suppliers, Mr Dinkelmann indicated.
"We will send all the information to France," he said.
"They will analyse all this information, they will break it down into individual countries, they will look at countries compared to each other, different farming systems and eventually information on what can be addressed onfarm will filter back to our farms here."
Mr Dinkelmann then joined DPIRD senior development officer Mandy Curnow and Murdoch University associate professor Fran Hoyle in a panel session on carbon accounting and farm greenhouse gas emissions.
The forum was told that while carbon dioxide (CO2) was the main greenhouse gas of concern in relation to global warming, farming in general and dairy farming in particular produced volumes of far more volatile greenhouse gases in methane and nitrous oxide.
One tonne of enteric methane (from cow burps) had the equivalent environmental impact of 28t of CO2 and 1t of nitrous oxide (produced by working the topsoil, spreading nitrogen fertiliser and from animal manure) had the same impact as 265t of CO2, forum guests were told.
While WA's CO2-equivalent (CO2e) annual greenhouse gas emissions from energy production had increased from about 35 million tonnes in 1990 to more than 80mt in 2019, agriculture's CO2e greenhouse gas emissions had reduced from about 12mt a year to about 8mt a year over the same period, they were told.
Of WA's agricultural CO2e greenhouse gas emissions, enteric fermentation (cow burps again) was the clear major source, but it had generally been in decline since 2005 because of reducing stock numbers.
Over the same period, the next major source of WA agriculture's CO2e greenhouse gas emissions, soils - but still producing less than half of enteric fermentation volumes - had remained about the same, allowing for annual variation for better seasons like this one when more area is cropped, figures presented to the forum showed.
Last year the six WA shire council areas which produced the most greenhouse gas emissions from agricultural cattle were Albany, Esperance, Busselton, Manjimup, Harvey and Augusta-Margaret River.
Rabobank's head of sustainable business development and previously its national farm support manager, Crawford Taylor, told the forum that consumer attitudes were changing and regulatory oversight of farming was increasing.
Global investors will increasingly require transparency on sustainability risks and availability and cost of capital will incorporate environmental, social and governance (ESG) standards criteria, Mr Crawford said.
Access to future markets or barriers to market could also be determined by ESG standards and globally "agri-corporates" were increasingly adopting ESG objectives, he pointed out.
"Supply chains need to adapt, innovate - including inside the farm gate," Mr Crawford said.
We can do all this on solar energy: Dairy farmer Julian Beiga will harness sun’s energy for freshwater
Instead of draining freshwater and energy from the local community, this Farmers’ Own dairy farmer will go off-the-grid while reducing his carbon footprint.
An innovative dairy farmer in the Manning Valley hopes his steps toward a greener future will inspire others in the industry to make the most of their natural resources.
Julian Biega – who has been farming on Mambo Island on NSW’s Manning River for 32 years – will use a $100,000 grant from the Woolworths Dairy Innovation Fund to install a new solar-powered desalination system to help meet his farm’s high daily water and energy demands without draining community resources.
“We use a lot of water on our farm, all dairy farmers do,” Mr Biega, who supplies Woolworths with milk for its Farmers’ Own range, said.
“We use 6000L just to hose manure off the yard each day – I have to do it by law because to have a clean yard so the cows don’t slip over, so they don’t contract things like mastitis.”
While freshwater supply from the region can be in short demand during periods of drought, the farm positioned at the mouth of the Manning River has access to a lot of salt water.
“Desalination is the most inefficient way of burning energy because it takes a huge amount to get the water out, to separate the salt,” Mr Biega said.
“So I did a lot of research on the energy we could use to run this system and realised we can do all this on solar energy.”
Using the money from the grant, Mr Biega ordered a “plug and play system” from Solar Water Solutions that when installed in January, will enable him to harvest 6000L of freshwater in daylight hours.
Mr Biega plans to collect and recycle the water used for cleaning the yard to use in his irrigation systems as a natural fertiliser.
“From that, I can grow more grass, the cows will eat the grass and turn it into of milk and I’m not being a burden to the community and I’m not competing for natural, valuable resources,” he said.
The plant will compliment Mr Biega’s recent upgrades to his dairy, including solar panels and LED lighting to reduce his carbon footprint.
Woolworths dairy merchandise manager Will Herron said: “The practicality and ingenuity of Julian’s project perfectly captures what our Dairy Innovation Fund is all about.
“He’s bringing in technology that will create a better future for his farm, boosting drought resilience and sustainability.”
The Dairy Innovation Fund will give away $5 million in grants to dairy farmers of three years to boost efficiency, innovation and seasonal resilience on Australian farms.
More than $2 million in funding was awarded to 24 Australian dairy farmers in the inaugural round of the grants this year.
Farmers have until February 20 to apply for the next round.
Source: Vanessa Croll, News Corp Australia Network, 13 December 2021