Director elections are due

As recently advised by letter, this year elections of Directors are due to be held in three of the co-operative’s five regions.

All active members will be entitled to vote in these elections which will be held by postal ballot commencing in September this year.  The results of these three elections will be announced at the conclusion of the 2019 Annual General Meeting to be held in November this year.

The three regions are:

1. Region One Far North Queensland Currently represented on the board by Director James Geraghty
2. Region Two South-East Queensland & Northern NSW Currently represented on the board by Director Andrew Burnett
3. Region Five Victoria/ Riverina Currently represented on the board by Director Bernice Lumsden

In accordance with the Rules, the newly elected Directors for each region will be elected for a term of four years expiring at the conclusion of the 2023 Annual General Meeting.

Further information and the appropriate forms including the nomination form and notice of candidature may be obtained by emailing the Co-operative Secretary at mark.kebbell@dfmc.org.au, phoning 0432 046 768  or writing to:

Co-operative Secretary, Dairy Farmers Milk Co-operative Limited

Level 4, 65 Brougham Street, Geelong, Vic 3220

Supplier meetings well attended

During July, DFMC held supplier meetings across all our regions. These events were well attended by local members keen to hear more detail about our recent price announcements, as well as a general industry and DFMC business update.

The DFMC board and management welcome the interaction and strong questioning from our members across all regions. Being open and transparent across the supply chain is an important part of what we do at DFMC.

NSW and Queensland

Seasonal conditions are varied across our regions but in general our farmers continue to battle the effects of the ongoing and widespread drought. In NSW the season is extremely tough, with some slight reprieve in recent weeks in the southern area but large challenges in central and northern NSW. Early indications for the southern Australian grain crop are positive at this stage.

Queensland really is a tale of two halves in terms of the season. Like northern NSW, southern Queensland is terribly dry, apart from the coastal area north of Brisbane. In far north Queensland the first six months of the year have been extremely wet with pasture production limited by lack of sunshine in most cases.

We really do live in a big diverse country! Across all regions we understand the ongoing challenges our farmers face, however I am continually buoyed by the positivity and passion our members show for DFMC and the wider industry.

– Tony Burnett

Victoria and South Australia

Echuca and Whorouly were again the venues for the Victorian DFMC supplier meetings, with both attracting good representation from suppliers in each region.

A tough season and plenty of competitor activity encouraged lively discussion at the Echuca meeting. The kinder seasonal conditions in the North East meant that there was as much interest around the potential sale of Lion as any other topic.

The continuation of Market Milk Support through supermarket contracts in South Australia was of interest at the Yankallila meeting, held at the home of the Tigers. Suppliers are relatively happy with both price and season, although it was generally agreed that both needed to continue to play ball.

School holidays meant a small turnout at the Mount Barker meeting, which featured a special guest appearance from former director Rick Gladigau!

– Dom Baxter

Left to right: Michelle Godden, Scott Lumsden, Bernice Lumsden, Jade Jones, Stuart Winchester, Andrew Wilson, Steve Fisicaro, Ryan Delay, Greg Dealy

Milk Supply Agreement extended

DFMC’s all-important Milk Supply Agreement (MSA) with Lion Dairy & Drinks (Lion) has been formally extended by a further three years with an Amendment and Restatement Deed that runs through to 30 June 2022.

As the document name suggests, the core elements of the current MSA are largely being restated with some amendments.

Chairman Andrew Burnett said “The Board is forever mindful that dairy farming is a long-term commitment.  This extension to our MSA continues to provided value and security for our members in an ever changing dairy landscape.  As we begin the new financial year, milk price and purchasing policy will continue to be critical to our members.  The MSA provides a great framework for our negotiations and we are confident of delivering a strong competitive milk price.”

Details of the MSA will be shared with members in upcoming pricing letters and at supplier meetings in July.

Agribusiness leader joins dairy farmer co-operative board

Former Dairy Australia director John McKillop has been appointed as an independent director to the board of the Dairy Farmers Milk Co-operative (DFMC) – one of the largest remaining true co-operatives that represents dairy farmers in Australia.

Mr McKillop’s skills will complement the experiences of the DFMC board who aim to ensure DFMC farmers continue to get paid fair prices for their milk.

“John brings a wealth of business knowledge and experience from a range of different industries,” said DFMC Chair Andrew Burnett. “With an ever-changing dairy landscape, experience from outside our own industry is vitally important.

“John is well qualified to chair our Audit and Finance committee, has sound knowledge in human resources and will be extremely valuable in continuing to strengthen our relationship with our processing partner Lion Dairy & Drinks.”

With more than 350 members from more than 250 farms in Queensland, New South Wales, Victoria and South Australia, DFMC provides security in milk contracts to its members.

Together, DFMC supplies over 270 million litres of milk every year to Lion Dairy & Drinks in a long-term partnership which provides a quality product to Lion and security to dairy farmers.

“Whilst it is undoubtedly a challenging time for the dairy industry, there will be opportunities for groups such as DFMC to carve out new and exciting supply agreements as access to milk becomes more difficult to secure,” said Mr McKillop.

“I am delighted to have been selected for the board of DFMC and look forward to working with the executive team and the rest of the board in the years ahead.”

Mr McKillop has years of experience in large and complex negotiations across agribusiness including working for Hassad Food, Clyde Agriculture and Stanbroke. He was an independent director of Dairy Australia from 2012 to 2018 during which time he chaired their Human Resources Committee, and was a member of the Audit and Risk Committee and the inaugural Dairy Farm Investment Forum.

DFMC’s current independent director John Bywater, elected to the Board in 2011, has decided to stand down and will leave at the end of June 2019. This allows for a five-month handover which will be invaluable given the vast experience John Bywater has brought to the co-operative.

“We’re looking forward to working with John and getting results for our farmers,” said Mr Burnett.

Media information

Sophie Clayton or 03 9670 6599 at Currie Communications.

DFMC Chair Andrew Burnett and Independent Director John McKillop are available for interview.

Prioritising health: A fit mind is fit for business

Whether it’s extended dry conditions or floods, farmers continually face challenges that affect their businesses. Key to seeing tough times through is keeping your mind and body fit so that you can plan, prepare, manage and cope with any situation that may arise.

DFMC’s Executive Officer, Mark Kebbell, is urging members to be responsible and proactive about their health .

“Climatic events like drought add a lot of pressure to farm management and sometimes mental health can be put on the backburner while the immediate threats to business are handled,” said Mark. “But at the end of the day there is no dairy and no business without a healthy, fit and able dairy farmer.

“I want to encourage our members to look at some of the expert advice and useful resources that are available to help you look after yourself and, in doing so, look after your business.”

The National Centre for Farmer Health (NCFH) has a range of resources that assist farmers in managing their physical and mental health. Here is their list of tips to ‘Mind Your Mind’ as published in their ‘Managing Health on the Farm’ booklet:

  • Keep active – Regular exercise can boost your self-esteem and can help you concentrate, sleep, and look and feel better.
  • Eat well – What we eat may affect how we feel. Your brain needs a mix of nutrients. In order to stay healthy and function well, just like the other organs in your body. A diet that’s good for your physical health is also good for your mental health.
  • Get enough sleep – When you’re a busy worker on the land, life is hectic. We don’t give our bodies as much rest as they need to fully function. Pretty soon we find ourselves running on empty. Sleep is not only good for the body, but it is also good for the mind. A well-rested body and mind can accomplish great things.
  • Drink sensibly – We often drink alcohol to change our mood. Drinking is not a good way to manage difficult feelings. Stay within the recommended daily alcohol limits.
  • Talk about your feelings – Talking about your feelings can help you stay in good mental health and deal with times when you feel troubled.
  • Keep in touch – Strong family ties and supportive friends can help you deal with the stresses of life.
  • Ask for help – None of us are superhuman. We all sometimes get tired or overwhelmed by how we feel or when things don’t go to plan.
  • Take a break – A change of scene or a change of pace is good for your mental health. It could be a five-minute pause from cleaning or driving the tractor, or a half-hour lunch break at work. A few minutes can be enough to de-stress.
  • Do something you’re good at – What do you love doing? What activities can you lose yourself in? What did you enjoy doing in the past? Remind yourself that you are fabulous – Don’t let deadlines get you down. Remind yourself of all the things you have accomplished and don’t get caught up in problems or the things that were/are out of your control.

Also available is the Lion Dairy Pride Farmer Support Program, which offers free confidential counselling to you and your families. This can be accessed 24/7 by calling 1300 687 327.

Members may also be interested in the following:

 

Reference

Phillips, T., Hatherell, T., & Brumby, S. (2018). Managing Health on the Farm. National Centre for Farmer Health, Western District Health Service, Hamilton.

 

Update on drought fund

The drought conditions suffered by suppliers in many regions have been, and continue to be, very trying. Lion Dairy & Drinks introduced a temporary wholesale price increase on 1, 2 & 3 litre fresh white milk and with the support of participating retailers in New South Wales, Victoria and Queensland created the Be True Blue Farmer Drought Fund. All fund proceeds have been distributed to Lion Dairy & Drinks dairy suppliers through DFMC or directly to farmers in drought affected NSW, South East Queensland and Northern Victoria. 

DFMC chairman Andrew Burnett joined with Lion Dairy & Drinks Agricultural Procurement Director Murray Jeffrey and another LDD dairy supplier to form the Fund’s Oversight Committee. The Committee met monthly to ensure the accuracy, independent assessment and transparency in the payment process. Ernst & Young were also appointed as the independent auditors of the Fund.

The program has come to an end, with the last fund payment made on 15 February 2019.

“I can’t thank Lion enough for the program, the money was a real help to farming cash flows,” Andrew said.

“The fund has distributed just under $3.5 million, which is clearly significant.”

DFMC is conscious that many farmers are still facing very tough weather conditions.

Meet a director: Adrian Dauk

Self-sustaining dairy businesses are the key to a thriving industry, says DFMC Director Adrian Dauk.

Blinkbonnie Dairy on South Australia’s stunning Fleurieu Peninsula is home to Adrian, his wife and business partner Holly and their four young children. In the pursuit of increasing their dairy’s profitability and strengthening efficiencies, Adrian and Holly have been gradually introducing automation into the business.

“We’ve increased the herd from 180 cows to over 250 in the past three years,” said Adrian.  “The more you improve your efficiencies, the more scope you have to make those kinds of decisions.

“Profitability in business is directly linked to efficiencies.”

Adrian and Holly have introduced automated feeding and an automatic draft to improve cow flow, boost cow comfort and allow staff to work more efficiently. Automatic calf feeders have resulted in consistent growth rates and calmer calves. In the long term, Adrian and Holly would like to investigate smart collars and milk meters.

“There’s a big role in the industry for young people, especially in automation because you need to be tech savvy and interested in automation,” Adrian said.

“We know time on-farm isn’t free, so an efficiency gain of 1 to 2 percent is going to help businesses be self-sustaining, which means we won’t be as susceptible to outside pressures like the price of grain, hay or water.

“I think the more self-sustaining we can be, the brighter the future will be.”

Adrian began dairy farming in 2007. His passion for the industry meant that by 2016, he had joined DFMC’s board as a Director.

“I felt that particularly in my region, people are very busy, and I had the time and support that allowed me to put my hand up,” Adrian said. “You can’t have an impact on the industry if you’re not involved and I like being able to help other farmers who don’t have time to commit outside of their business.

“I think being younger, it’s almost my job to keep everyone on their toes and enthused,” Adrian joked.

“I enjoy being able to help make decisions that keep DFMC moving forward.”

Cream of the crop at milk quality awards

Winners of DFMC’s National Milk Quality Awards were announced at our AGM and convention in November. The awards, held in honour of long-serving Far North Queensland Farm Services Manager Ian Stewart, are now in their 18th year.

DFMC believes that farms providing milk of exceptional quality should be recognised as the ‘cream of the crop’. A full list of regional award winners is below. To qualify for the awards, farmers must have NOT received any demerit points for the year, must have supplied milk for the full twelve months of the 2017/18 financial year and be current members of the co-operative.

For the second year running, we congratulate Kaid and Jo Hawken from Leitchville in Northern Victoria for winning the National Milk Quality Award. Supplying three million litres of milk at a 4.41% fat and 3.53% protein with a 72,000 somatic cell count (SCC) is an exceptional effort.

Far North Queensland

  1. Laceview Pty Ltd
  2. P & VA English
  3. KF & SC Collins
  4. J & S Geraghty
  5. MB Daley Pty Ltd

South East Queensland

  1. DA & CG Vonhoff
  2. MC & JM MacDonald
  3. Crouch Farming
  4. RL & SL Skyring
  5. ME IW & WD Pukallus

New South Wales

  1. Beaulands Pty Ltd
  2. WG & AJ Sherborne
  3. Jim Strong
  4. MacArthur Stanham Holdings P/L
  5. The Gee Partnership

South Australia

  1. Jared & Megan King
  2. The Bartlett Family Trust
  3. Blinkbonnie (SA) Pty Ltd
  4. JR & JP Fisher

Victoria

  1. GR & JR Hawken Pty Ltd
  2. BD & KL Mitchell
  3. JC & NT Smith
  4. Northvic Farms
  5. JH & BA Dealy

Congratulations also to suppliers from both the Northern and Southern regions who have achieved fantastic bulk milk cell count (BMCC) averages for the October/November period.

 

2018 milk quality awards

Milking keeps Lex Emerson on the move

Calcium-rich dairy foods are often recommended as a natural booster of bone health, but Far North Queensland dairy farmer Lex Emerson is incorporating dairy into her fitness routine in an unexpected way.

At 75, Lex still milks the cows every day and helps to manage the farm business.

Christened Alexandra but known her entire life as Lex, this 75-year-old continues to take the lead in milking her family’s 160-cow herd.

“I milk full-time – twice a day, every day,” the third-generation dairy farmer Lex says. “It keeps me healthy. I have osteoarthritis so I need exercise. If I wasn’t doing that now, I probably wouldn’t be able to walk; it’s as simple as that.”

Dairying runs through Lex’s bloodline. Her parents and grandparents (the Graham and Chapman families) were in the industry, as was her late husband Keith’s family (the Emerson family).

Lex’s father-in-law Bob Emerson arrived in the Atherton Tablelands in 1908, having driven 1000 cattle more than 1800 kilometres overland from Lismore in northern New South Wales. Despite half the mob having been lost to tick fever when they reached Mt Garnet, the Emersons went on to establish one of the region’s earliest dairy farms.

At the time the family supplied milk to the Malanda Butter Factory – a facility that led the way in dairy processing on the Tablelands and was the forerunner of Lion Dairy & Drinks’ site today.

By comparison, the Graham family were relative latecomers, settling the Tablelands a decade or so later.

“My father was only a baby when the Graham family arrived on the Tablelands – one of 12 children,” Lex says. “Dad loved showing cattle and when he first left school he used to go around the shows, travelling with the cattle on the train to look after and feed them. He always loved shows and milking competitions in those days – going to the exhibition in Brisbane.”

The extended clan has been dairying at Jaggan, on the Atherton Tablelands near Cairns, for more than a century.

Lex’s cousin, Ross Chapman, has a dairy farm not far from the Emerson property.

“The Chapman side of the family came from Scotland to Gympie; my grandmother’s people were Danish. My grandfather thought there were no more selections to be had down Gympie way so when he and my grandmother were first married they came further north to find land. They had two selections here; he had one and she had another. Now we have four blocks altogether that were originally selected.”

Lex’s family history in dairying in Far North Queensland dates back to 1908.

The Chapman and Graham name changed to Graham and Emerson in 1962, when Keith and Lex moved back to the family farm in partnership with Lex’s parents. Lex has lived on the farm ever since.

“Things were tight and tough at times but we always managed. I don’t care who you are: you have your hard times, your hard seasons,” she says.

And now, one of Lex and Keith’s four sons, Wayne, is continuing the tradition. While Chris, Raymond, Mark and sister Maree have pursued off-farm careers, Wayne has chosen to work beside Lex, sharing responsibility for managing not only dairy but also beef cattle.

“Keith loved cattle and so does Wayne, just like his father,” Lex says. “It’s something within. We’re part beef here these days as well; we’re not all dairy.”

For milking, the Emersons run a blend of Aussie Reds, Friesians and crossbreds. “We’re mixed today,” Lex says. “When deregulation came in we bought some Jerseys to up the milk fat and protein levels, and we’ve crossed them through some of the others.”

Lex says she has seen consolidation and contraction across dairying on the Tablelands, where roughly 100 farms have tapered down to 43, in her view driven largely by milk pricing.

Sweeping views of the Emerson family farm, Malanda, Queensland.

She is assisted in the dairy primarily by 19-year-old Jessica Stonehouse, with backup from sons Wayne and Raymond whenever their workloads permit.

One of Lex’s teenaged grandsons is already showing interest in the farm. “Raymond’s on the railway in Cairns and is here a lot. His son Lachlan, who’s just turned 15, loves the farm. We’ll wait and see, but he comes up as often as he can – holidays and weekends.”

Lex is conscious of maintaining her physical health, having seen her mother experience osteoarthritis and a sister become paralysed by multiple sclerosis. “Given what my sister’s going through I’m very lucky,” she says of her own osteoarthritis. “At times it gets to be a bit much but generally speaking the milking is very healthy for me.”

Lex balances running the dairy and taking care of the property’s business paperwork with having an off-farm break occasionally. “I tend to go once a year to see Mark in Ballarat, Victoria, or Maree in Lake Cargellico, NSW.

“I do the business paperwork; Wayne does the cattle paperwork and the dairy. We split it between the two of us,” she says. “It works out.”

Lex says increasing digitisation is one of the biggest changes to have occurred in dairy farming in recent decades. “Everything is more computerised; in our day it wasn’t. You have to be up with that. It’s what’s expected.

“But, also farmers need to be very careful financially. You have to work out a plan to focus on where you’re aiming to go.

“We’re not stressed like young people starting off, coming in and having to work their way through. We’ve been there; we’ve done that. We’re just comfortable where we are at the moment.”

Automation, quality food a hit on TAS field trip

After DFMC’s convention, 14 DFMC suppliers headed to Launceston where the post-convention tour commenced with some beautiful scenery on the way to Lion’s state-of-the-art The Heritage speciality cheese manufacturing hub in Burnie.

DFMC suppliers sporting the brand new hats.

Led by Lion’s Tasmanian Farm Services Officer, Alistair Shepard, the group was given a detailed tour of the plant – which is the largest speciality cheese production facility in the Southern Hemisphere – and was able to meet master cheese maker Ueli Berger. Ueli is responsible for the 11,000 tonnes of brie and camembert produced each year.

The 150-million-dollar redevelopment of the Burnie plant has seen a large focus on robotic production, which Ueli credits to making a more consistent and higher quality product. However, Ueli emphasised that the human workforce is still vitally important in ensuring quality.

The tour was also lucky enough to visit Garry and Bev Carpenters’ robotic milking operation.

Built in an old hops processing shed, the eight-box robotic dairy milks a herd of 500 cows and was an interesting example of how new technology can be incorporated with existing infrastructure.

Also interesting was the ownership structure of the operation, with the Carpenters leasing the property from a Singaporean businessman but being responsible for implementing the infrastructure improvements.

The next morning saw the DFMC tour head to Quamby Brook near Deloraine, where the Dornauf family operate a 350-cow farm that features the world’s first fully automatic milking rotary dairy (AMR).

While participants watched on from the viewing room overlooking the dairy, owner Nick Dornauf provided insight into the development and ongoing operation of the system.

The world’s first commercial Automatic Milking Rotary (AMR) dairy.

One of the more fascinating aspects of the facility was that, when maintenance of the robots is required, the dairy can be operated manually to avoid excessive disruption to cow milking patterns.

Lunch was at another Dornauf-owned operation – The Christmas Hills Raspberry Farm – although Nick’s confession that he prefers to eat in his tractor cabs certainly raised some eyebrows!

Any doubts about the establishment were quickly erased as the tour group were treated to one of the best meals experienced for the week, with the raspberry sundaes proving a particular favourite.

The Dornaufs operate five dairies in the area, milking around 2200 cows. In May this year the Dornaufs commissioned a new one-person 60-unit rotary on their 600-cow Moltema property, at an investment cost of $1.7 million.

Featuring a robotic arm teat sprayer, the state-of-the-art installation greatly impressed the tour group, with nothing overlooked in its design and construction.

Nick explained that although the family was happy with their automated rotary, the decision not to build another was based on management capacity due to geographic considerations, with the Moltema property not well suited to automation.