NEWSLETTER - Australian Fodder Industry Association

NEWSLETTER
September 2006 Australian Fodder Industry Association Inc.
Supplies on the Brink
In the first week of September, production
outlook is on a knife edge. In excess of 90%
of NSW is in drought. This dry extends into
southern Qld yet Central Qld is enjoying
more favourable conditions.
Like much of NSW, Victorian irrigation
allocations are very low in all districts and
lucerne, maize and sorghum production will
be challenged by high water prices during
the summer months. Yet again there has
been no early break to produce the clover
and medic hays in the Mallee and Wimmera.
Silage is being cut three weeks early in
Gippsland yet conditions in Western Vic
appear better than most. In Tassie conditions
are dry as well, (driest Aug for 100 yrs in the
north) although some chance for a catch up.
SA and VIC both had reasonable starts to the
season but are both badly in need of rain.
Conditions have slipped dramatically late in
the season and some SA oaten hay crops are
baled already.
Exporters report that WA has had very good
late rains after a very slow start but will still
yield a below average crop. In an export
context, yields for oaten hay across all states
will all be below average.
As supplies tighten, dependency on hay and
straw supplements will increase. These
conditions create even greater need for AFIA
projects such as hay/straw transport reform.
(Further details see page 4)
Inside:
Chairman’s Notes 2
AFIA Activities 2
District Reports 4
Vale – Alan Kaiser 9
Super Conditioner Trials 11
Contractor Benchmarking 13
Export Market Report 14
In Brief 15
Member Profile – Gary Johnston 17
Dairy Farmer Hay Buying Behaviour 18
The Red Bus Tour - Poem 19
Date Claimers
Date Event Venue
6 Feb Regional McMillan College
2007 Seminar Warragul Vic
25/26 2007 National Novotel Pacific
July 2007 Fodder Bay Resort Coffs
Conference Harbour NSW
2007 Conference and Tour
The planning for next year’s conference at
Coffs Harbour is under way and is to be
combined with a two to three day farming
tour of the Hunter Valley, Liverpool plains
and the New England area. Details will
follow.
AFIA Newsletter September 1

From Charlie Williams Jenharwill Baling
Elmore Vic.
I would like to thank all who participated in
the tours and conference in Darwin. The
positive feedback has been very good, and it
has greatly strengthened AFIA’s standing as
a “truly Australian” organization. I am sure
many of you will venture back in the near
future. Thanks to Anne and Colin for their
organization and planning, and to all who
had enough faith to have a go.
Dan Halloran, of Northern Ag had a very
positive input, and I am sure he will be justly
pleased with the result. The many sponsors
who participated can surely see the benefit
from being part of the organization, and I
thank them and encourage them to continue
to support us.
The top end tours were a fabulous success,
with many looking forward to perhaps the
same again next year. It was great to see so
many couples enjoying the mix of
agriculture, tourism and networking, and a
great pleasure to be with such a happy group.
I thank the territory Government (DPIFM)
for their financial support, but cannot help
but think of the missed opportunity by the
The following provides a snap shot of recent
activities of the AFIA.
Chemical residues in hay
AFIA and export members have been busy
addressing the new laws regarding residues
on imported feeds into Japan. Maximum
residue limits (MRLs) now are in place for
imported feeds including hay and all growers
of export hay and straw need to be mindful
of the sensitivities the Japanese have to
certain chemicals.
Due to the differences of MRLs between
Chairman’s Notes
minister to
mix with the
very best of
Australia’s
fodder
producers
and
exporters,
with regard
to promoting
agriculture in
the territory.
AFIA Activities
Once again the season is on the brink, with
most areas desperate for rain. I can only
hope that by the time you read this the
heavens have opened a little, and we can
once again scrape through.
The great success of the conference must not
blind us to the tasks in hand, as it is our
obligation, and indeed vital to our industry
that we focus on our major priorities, that is
transport, levy and IPP. We will be diligent
in our efforts to sign off on these projects as
soon as possible.
I wish the new committee all the best and
thank you all for your support.
Australia and Japan, it has been identified
that desiccants present a risk of breeching
Japanese limits. Export hay crops should not
be sprayed with these chemicals late in the
season.
Due to an environmental problem with
vegetable production in Japan, export hay
and straw growers need to be aware of limits
placed on the use of clopyralid used in
Lontrel, Growers are advised to contact their
export hay processor for further details of
limits placed on all chemical treatments.
AFIA Newsletter September 2

Hay Bale Tagging
After a short break the push for a hay tag and
applicator is back on track. The AFIA has
successfully sought funds to develop a
prototype applicator that will fix a nylon tag
to the string of any large square baler. The
traceability offered by the tag is intended to
be used for addressing the spread of weed
seeds, inventory management, QA, and
monitoring ARGT.
The tagger is being developed in Victoria by
Geelong engineers AustEng in conjunction
with AFIA member Noel Payne. A
manufacturing-ready device is expected to
be refined during the upcoming baling
season.
Hay/Straw Transport
A third and all-encompassing research
project seeks to address the dimensional
limits placed on hay transport in Australia.
The project is being jointly funded by
RIRDC and industry. The leading transport
engineers, The ARRB Group are about to
finalise their report.
Once complete, a report is expected to
propose national reform of hay and straw
48 ft drop deck semi
Some of the seven vehicles tested in the recent transport project
transport to the National Transport
Commission (NTC). The objective is to
avoid the current confusion between the
many laws and guidelines that are preventing
the efficient and safe transport of fodder.
Industry Partnerships Program
The Australian Government is offering
industries access to a program to fast track
innovative ideas. In May this year, the AFIA
had applied for funds to bolster membership
programs. The application sought to increase
AFIA membership through a suite of new
member programs and benefits.
Although this application was not successful,
the fodder industry, through the AFIA, has
been invited (as one of only two industries)
to reapply for funding in the next
November/December round.
Contractors Code of Practice
With funding received from the Victorian
Department of Primary Industries (VDPI),
AFIA is progressing with the development
of a weed hygiene code of practice for
contractors involved in the fodder industry.
A forum was held in Bendigo on 22 August
to consider the practicality of adapting the
various programs available
as the basis of a code of
practice. The forum
included fodder industry
contractors and
representatives of the diary
industry, the NSW DPI, the
Weeds CRC and the Vic
DPI.
Feedback received from
the forum will now be used
to develop a pilot weed
hygiene code of practice to
be trialled later this year or
early in 2007.
PO Box 4022
Balwyn, Vic, 3103
Phone 03 9890 6855
Fax 03 9890 2353
Web: www.afia.org.au
Email : anne@afia.org.au
AFIA Newsletter September 2006 3

District Reports
Queensland
As we write this newsletter it has been
officially announced that southeast
Queensland is experiencing the worst
drought on record – worse than the
federation drought that lasted from 1898 to
1903. This is apparently prompting the QLD
government to consider declaring a state of
emergency to take control of water
management out of the hands of local
councils (farmonline.com.au Mon Aug 7).
Growing season rainfall for winter crops is well below average in most areas
But the fodder industry doesn’t need
statistics to tell us how bad things are. We
spoke to Lindsay Evans and Mike Collins to
get first hand accounts of how things look on
the Darling Downs – and it’s not good.
Lindsay says things are very ordinary around
Jondaryn: “there’s no grass and no subsoil
moisture; some people have taken a risk and
dry sown, but this is unlikely to yield much
feed”.
There has been some recent rain, but this has
been very patchy and of little value. Lindsay
himself has received 20 millimetres for July,
but this from six falls so is virtually useless.
Others have received falls of up to 3 inches,
but these have been in such small areas that
full paddocks cannot be sown. In the 12
months to June, the area has received 10 of
its usual thirty-inch rainfall.
In response to the dry conditions sorghum
stubble, usually left in the paddock, is being
AFIA Newsletter September 2006 4

aled and sold to feedlots to provide
roughage for cattle. All other hay available
for sale has been sold with the most recent
lot of millet hay thought to be sold for about
$280-300/mton farm – a premium of
approximately $100 from a few months
before.
Lindsay estimates that this season’s fodder
availability for the Darling Downs will be
reduced by at least 60 per cent, and most will
come from irrigated crops.
But having irrigation is no guarantee; water
availability has been cut to about 70 per cent
of allocations.
Mike Collins from Clifton tells a similar
story. He says there is very little prospect for
hay crops on the Darling Downs, saying the
late sown crops at least have potential to
produce a small amount of grain, but no hay,
and that the next hope is for hay produced
from summer crops.
Good rains that have recently fallen in
northern NSW, just 100km from Mike’s
property, adding to the frustration of the
poor year.
Mike also says there is no hay available for
sale in his area and that hay is now being
sourced from southern NSW – south of
Jerilderie – to supply the local market.
New South Wales
Trish Kiddle from Coolah, about 90
kilometres from Mudgee, reports that things
are pretty quiet in her area with regards to
hay. Although it has been cold with some
heavy frosts, there has been some growth in
the oat crops, which has seen a decrease in
demand for hay.
Conditions around Coolah are dry. While
there has been some good falls, they have
been patchy and have not provided enough
moisture to for producers to move into
spring with any confidence. Trish says west
of Coolah is better than north, but everyone
is looking for rain. An indicator of how long
it has been dry is that the river that runs
through Coolah has not run for six years.
On farm hay prices for hay around Coolah
are about $150-170 / tonne for oaten hay and
around $300 / tonne for good quality lucerne
hay (prices are plus GST). However, there is
not much hay available for sale. Many
producers are holding off selling to see how
the spring develops and some are holding off
for an expected spike in the autumn market.
The biggest market for hay in the Coolah
area is the dairy market, but demand from
beef growers is increasing as they try to
achieve contracted weight targets for their
cattle through supplementary feeding.
This change in the demand has seen good
demand for good quality cattle hay, that is,
lucerne hay with 5-10 per cent grass content,
or maybe has with less than perfect colour.
About 200km south west of Coolah, in the
Forbes area, Gary Johnston is experiencing
similar conditions. While there has been
reasonable rain through June, it has been dry
into July and there has been no rain for three
weeks. This season has been dryer than last
year’s and the temperatures for August have
been higher.
Gary says that hay in the Forbes area is
almost unprocurable in either small or large
bales, but there are small quantities of very
low quality hay available, but much of this is
likely to be traded between farms rather than
into the resale market.
Supply constraints in the Forbes area is
seeing some hay sellers sourcing hay from
northern Victoria to supply their regular
clients. This trend is inline with comments
made by Mike Collins from southern QLD
where hay is being sourced from southern
NSW to supply the QLD market.
From an irrigation perspective, Gary says the
AFIA Newsletter September 2006 5

situation is bleak. Wyangala Dam has had no
inflow and only 40 per cent of the carryover
is available for irrigation as part of the
drought contingency plan.
While very little hay is trading, Gary puts
the market for prime lucerne hay at around
$290-330 / tonne for big bales and around
$10-12 per bale for small bales. Second
grade lucerne is nominally trading at
between $200 and $290. Prime, or export
quality, cereal / oaten hay is selling for
around $160-170 / tonne (all prices are plus
GST).
Continuing with the theme of dry and patchy
conditions, Philip Hanna of
Berrigan on the border
between NSW and Victoria
says the crops in his area are
‘real bad’ and crops are
starting to ‘go back into the
ground’. Having said this,
Phillip says areas to the north
and the south received good
rain during July.
From a hay market perspective,
Philip says that before the rain,
about a month ago, you
couldn’t have enough hay there
was so much interest, but since
the rain the market has ‘died in
the butt’. Before the rain hay
was selling for $220-250 /
tonne for lucerne hay and
around $180 for oaten hay
(prices are plus GST). But
now, very little is selling.
As with other areas, access to
irrigation water in the Berrigan
area is limiting hay production.
The Hume Weir is around 24
per cent full and there is zero
irrigation allocation.
Along the river and up the
Hume Freeway from Philip’s,
Bill Fife, transporter,
wholesaler and retailer of hay in the
Goulburn area, confirms he too is travelling
to buy hay, but says there is good quality and
good volumes if you are willing to travel.
In August Bill said he was buying cereal hay
in northern Victoria for around $120-140 /
tonne and chaff quality lucerne hay for
around $220-230 / tonne, but this is more
difficult to source.
As a transporter, Bill noted that fuel is now a
much bigger part of his costs. Previously, as
a rule of thumb, fuel was about a quarter of
total costs, but now it is more like a third.
AFIA Newsletter September 2006 6

Victoria
Brett Radcliffe from Kerang in northern
Victoria sowed his hay crops dry during
June and early July and received two inches
of rain while they were at the AFIA
conference mid July, but he needs additional
rain to finish his crops.
While the rain improved conditions for the
crops in the ground, it did not change the
market for old crop hay. Before the rain very
little was being sold – most sheds had
already been emptied – and the rain did little
to bring any additional hay onto the market.
Brett estimates that good quality lucerne hay
would sell for $225 / tonne; poorer quality
lucerne hay for $180 per tonne, and rain
damaged lucerne hay for $160 / tonne (prices
are plus GST). But very little has been
changing hands.
Buyers of hay have shown a strong interest
in new season hay. Brett says he could ‘sell
all his expected production tomorrow, but he
is waiting to see what the price of water is
before making any selling decisions.
In addition to uncertainty over irrigation
water, Brett says he needs rain by the first
week of Spetember; otherwise he will be
relying mostly on irrigated crops for his hay
production this year.
Further southeast, in Gippsland, the fodder
situation is a different story.
Paul Wilms in Drouin says he has received
two inches of rain in the early August and
with warmer temperatures, of up to 17 and
18 degrees, and fertiliser being applied to
pastures, he has seen demand for hay drop
right away.
The two inches of rain has topped off what
has already been a good season and Paul
expects to start the silage making season
around 15-20 September, which will
continue through to the end of November.
Mick Marshall of Hayfield, also in
Gippsland, gives a good example of the
effect the rain has had on his transport
operation. Before the rain, Mick says he was
bringing in 10 B-doubles of hay into the area
each week, but since the rain this has all but
stopped.
Mick says he was delivering oaten hay to
Gippsland for around $195 / tonne and grass
hay for around $185 / tonne. He said much
of this was coming from the eastern
Wimmera where hay supply did not seem to
be a problem.
In addition to oaten hay and grass hay, Mick
says he had been delivering barley straw into
the same area for around $140-150 / tonne.
The barley straw has been used as a binding
agent for stock feed.
In the south western Victoria David
Manifold of Camperdown says ‘it’s a long
way off being a good season’ as growers
await the next rain. David says the season
has been OK to this point, but more rain is
definitely needed for crops to stay healthy.
‘If it stops raining now, it could become
highly stressful’ David said.
David says the uncertainty of the season
makes it impossible to predict where new
crop markets will be; however, he says
prices for hay already in the shed have
dropped in August as the warmer weather
has seen grass grow and demand drop in the
south west dairy areas.
David says that there is not much old crop
hay trading at the moment, but he says small
volumes of high quality vetch hay – 9% ME
plus and 15% protein plus – are selling for
around $180 ex farm, pasture hay for around
$120 per tonne and lower grade vetch for
around $140-150. All prices are plus GST.
AFIA Newsletter September 2006 7

South Australia
The windy conditions in early August would
“blow a dog off the chain” in the Mid north
of SA. Peter Rodda of Maitland said there
have been showers recently but a good
general rain is needed to boost the late crops.
In mid August, conditions were considered
mild and crops were growing and in need of
a rain. Generally grain and hay crops were
considered to be in average condition
without any great disease or pest issues this
season. Wintaroo are the major variety of
oats sown for hay in the state.
In the south east of SA conditions are dryer
and there has been a lot of hay moving in
and around the region. According to Nick
Miles of Naracoorte, good quality lucerne
hay is still available for $200/mt on farm
although cereal hay is not really trading at
present.
Rural Solutions SA reports that paddock
feed is minimal in the upper south east and
stock owners are supplementary feeding
from adequate hay stocks.
Western Australia
Poor production conditions in Western
Australia this year have been well
publicised, but recent falls have improved
conditions in some areas.
In mid August Mike King from Gilmac said
the York region – roughly the Avon Valley –
had three falls of 10-20 millimetres since
mid July. These rains freshened up the crops
in the area, but more rain was needed to
maintain yield and increase bulk density.
Mike said some areas to the north and east
have missed out on these rains and these
crops are struggling. Around Merredin
where average yields are approx. 3.75-
4.5t/ha, yields were expected to be more like
3.0t/ha. Around New Norcia where average
yields are approx. 5.0t/ha; yields were
expected to fall to around 3.0t/ha.
As a broader guide, Mike says that within a
within a 300km radius around York he
expected yields to be around 80 per cent of
their average. Mike also highlights that final
yields will be very much dependent on the
conditions for the remainder of the season.
Ed Blanchard of SP Hay had a similar
assessment of the situation for the Western
Australian hay producing areas. Ed said the
WA crop growth was about six weeks
behind and he was seeing some early-sown
crops running to head in northern areas.
‘It is impossible to predict what oats will be
available for grain and what will be available
for hay. This will depend largely on the
height of the crop when it goes to head and
growers won’t make a decision to bale or
harvest until mid-September, Ed said.
‘If we don’t get two inches in the next three
weeks in the Northam area, a large
proportion of oat crops could go for grain.
In terms of hay trading, it appears very little
is taking place. For old crop, there is very
little for sale. Mike King says some parcels
might trade for around $250/t, but this is
rare. Ed agrees the trades are rare and says it
is really only those with high value stock
such as stud stock and feedlotters who are
buying hay.
The new crop market is not yet clear. Both
Mike and Ed say export market conditions
have not changed much with demand
remaining relatively strong; however, the
price that is ultimately paid could depend on
a combination of variables including the
Aussie dollar exchange rate and final
domestic production.
AFIA Newsletter September 2006 8

Fodder Industry Loses Great Supporter
Many AFIA members were saddened to hear
of the passing of one of its great supporters,
Alan Kaiser, highly respected animal
nutrition researcher with the NSW
Department of Primary Industries.
Alan commenced his career as a cadet with
the NSW Department of Agriculture in 1965
and soon after began his research into animal
nutrition as a Livestock Research Officer at
the Wollongbar Agricultural Institute.
From Wollongbar, Alan spent three years in
Hurley, England on a Meat and Livestock
R&D scholarship and then returned to take
up a position in Wagga where he worked on
a range of projects that contributed greatly to
our understanding of ruminant nutrition.
Alan’s work has been acknowledged in
Australia and internationally. From a fodder
industry perspective he has been
instrumental in bringing the fodder and dairy
industries closer together.
He was the driver of the
Top Fodder program which
commenced in 2003 and
has been a great advocate
for AFIA since its
inception.
One colleague of Alan’s,
Peter Flinn, says ‘for many
years Alan was Australia’s
leading silage researcher
and his passing leaves a
major gap in Australia’s
silage research and
development’.
Professionally Alan was recognised as being
a pleasure to deal with, open minded,
approachable and a great contributor to the
fodder industry. From a family perspective
he was husband to Bonnie, father to Gavin
and Tara and grandfather to Ryan, Tyler,
Isabella and Hannah, each of whom he was
besotted with.
He will be greatly missed.
AFIA Newsletter September 9

AFIA Newsletter September 2006 10

Super Conditioners - Muck or Magic?
Since the introduction of super conditioners,
farmers and contractors have debated their
effectiveness. A recently competed research
project has addressed the issues of costs and
effectiveness of super conditioning on hay.
The consultancy company, Rural Directions
coordinated a RIRDC-funded project during
last year’s hay making
season. The focus was
not on recommending
the best machine type.
A 10-11 tonne/ha crop
of Riel oats at Clare in
SA was selected for the
trial. Each of the 10 0.6
ha plots were assessed
for moisture decline
from cutting to baling,
degree of crushing,
windrow structure, dry
matter yield, time to baling, hay quality and the
overall delivery score and grade.
The treatments involved 6 super conditioners
and 1 mower conditioner, used at three
Machines under test at the Clare.
different times: (day of cutting, 2 days after
and 4 days after cutting). Ideal weather
conditions were experienced during the trial.
Moisture decline - There was a distinct
fluctuation in moisture between am and pm
samplings. This demonstrates the need to
check hay regularly to get a true picture of its
readiness to bale.
Windrow Structure- There
were differences between
treatments in windrow shape
and structure, and also the
amount of ‘sag’ in the
windrow over time. The
earlier treatments tended to
sag more than the later
treatments. This impacted on
air flow and humidity and in
the windrow.
Hay Colour - All treatments received the
maximum colour grade, differences in the
combination of curing time and windrow
structure resulted in different levels of
bleaching.
Treatment Roller type Model Front Propulsion Day Speed
1 Small Steel John Deere Sickle bar SP 0 6.5
4995
kmh
2 Smooth Steel/ Smooth John Deere Sickle bar SP 0 5 kmh
Steel
4995
3 Steel/ Rubber New Holland Discbine SP 0 8 kmh
interlocking
340
4 Broad Ribbed Steel/ Haymax Finger tyned TT 2DAC 9 kmh
Smooth Steel
pickup
5 Broad Ribbed Steel/ Haymax Finger tyned TT 4DAC 9 kmh
Smooth Steel
pickup
6 Large Steel/ Large Hydra- Roller pickup TT 2DAC 9 kmh
Steel Rubber coated squeeze
7 Large Steel/ Large Hydra- Roller pickup TT 4DAC 9 kmh
Steel Rubber coated squeeze
8 Rubber/ Rubber Macerator Finger tyned TT 2DAC 9 kmh
followed by Ribbed 6610 pickup
9
Steel/ Steel
Rubber/ Rubber Macerator Finger tyned TT 4DAC 9 kmh
followed by Ribbed 6610 pickup
10
Steel/ Steel
Steel/ Steel interlocking Recon300 Roller pickup TT 2DAC 9 kmh
AFIA Newsletter September 2006 11

Time to Baling (Days)
Degree of crushing - There were
significant differences between the
treatments in crushing of knots and florets.
The more aggressive treatments crushed
more knots and florets
% crushed
Time to Baling - There was a strong
correlation between knots crushed and time
to baling; the greater the crushing of the
knots, the quicker the time to baling. The
difference between the treatments in baling
time was significant.
10
8
6
4
2
0
100
Treatment 1
80
60
40
20
0
Treatment 1
Treatment 2
Treatment 2
Treatment 3
Treatment 3
Treatment 4
Knots and Florets
Treatment 5
Treatment 6
Treatment 7
knots florets
Hay Quality- There were differences in
hay delivery score between the treatments,
largely due to ADF.
Points to consider - Conclusions are yet to
be finalized. The results are only from one
season, one set of machine settings and the
project was conducted under ideal
conditions. The results may vary if
conducted under adverse conditions. The
project will need subsequent years’ data to
validate the current results.
Treatment 8
Knots Crushed vs Baling Time
Treatment 4
Treatment 5
Treatment 6
Treatment 7
Treatment 8
Treatment 9
Farmers need to consider machine setups
and roller gaps, windrow position and
structure, and how this influences a
windrows ability to shed water. Other
points that will impact on a growers’
choice include:
• Labour resources
available
• Timeliness of
the operation
• Ease of
transport of the
machine
• Likelihood of
weather damage
• The need to
shorten the risk window
Treatment 9
Treatment 10
Key Findings
The key messages to come out of this
project include:
• The more knots which are crushed the
quicker the dry
Treatment 10
Time to baling knots
down time to
baling
• The structure of
the windrow is
as important for
hay quality and
dry down time
as the machine
itself
• There is a
myriad of set up
adjustments that
can be made on
any given machine which will alter the
end product
• A more aggressive machine set up
will achieve quicker dry down of the
hay, however there may be
implications for weather damage.
• All super conditioner treatments
were baled before the mower
conditioner treatment
For further details and the full report go to
the RIRDC website www.rirdc.gov.au, or
contact Patrick Redden on (08) 8842 1103
AFIA Newsletter September 2006 12
100
80
60
40
20
0
Knots Crushed (%)

Following two very successful
benchmarking exercises, the AFIA is
members to participate in the Contractor
Benchmarking for 2006.
This benchmarking gives fodder contractors
and operators of large machinery an
opportunity to anonymously compare their
costs of operation to other comparable
members in other part of the country.
Baler Throughput (bales/baler/year)
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
12318 12500
2004
Avg
14000
1000
4780
AFIA Contractor Benchmarking 2005
Big Square Baler Throughput
9000
7667
6000
4000
5250 5500
19000
Contractor Benchmarking
6000
10000
The Most Efficient Way To Stack Hay
HAYING MANTIS FOR SALE
• Maximise your time - One Man Operation
• Scania 93H Automatic - in great condition
• Stack & Retrieve 8x4x4 and 8x4x3 square bales
• Stacks 10 8x4x4 bales 5 High & 12 8x4x3 bales 6 High
• Stack up to 70 bales per hour
3000
0
16000
1500
8000
• Replace 2 Trucks & 2 Loaders with One Machine
6750
0
12000
0 0 0
For price and further information please contact Leigh on 0408 369 745
AFIA Newsletter September 2006 13
13500
6500 6613
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2005
Avg
Contractor Identity Number
With fuel prices remaining high, high capital
costs of machinery and labour shortages in
country areas, this benchmarking has proven
to be a very useful management tool for
AFIA members.
Forms can be sent out on request or will be
soon available on the AFIA web site under
“Forms”.
Once these forms are completed and sent to
AFIA, we will collate the data and
send back a full comparison of all
costs in owning and operating
machinery. The identity of each
member will remain with the
member.
Please contact the AFIA office
before October 3 if you are interested
in the Contractor Benchmarking
Program for 2006.

Export Cereal Hay
Market Report
Australia now has a reputation for supplying
high quality, safe and reliable hay into the
Asian market, but challenges still exist if we
are to retain and grow this market. Rob
Lawson from the Balco Group provides an
overview of the current market situation and
an insight into the challenges ahead.
Exports to Asia
With exports of hay and straw averaging
close to 70,000 mt/month for December
2005 to April 2006, and an all-time record of
73,205 tonne for March, Australia has
cemented itself as a key supplier to the Asian
cattle industries.
Supplies of export hay reached saturation
point throughout May and June this year due
to the increased quantities exported from
Australia. The market has been slower for
the past 2 months but is expected to increase
Typical Japanese Dairy (Kyushu Island)
and return to “normal levels” during
September and October.
Other Exporters
Japanese demand slowed during July and
August due to a combination of the
incoming new crop from North America’s
and the lower consumption caused by lower
intakes during the hot and humid summer.
Our hay clients have reported the 2004/2005
crop to be good quality. They have also
reported some quality variances in the
2005/2006 crop due to weather damage
during harvest.
Exports of Chinese rice straw, while still on
the banned list in Japan, look likely to
resume again. However imposts like strict
fumigation protocols and heat treatment, due
to live insect failures and ongoing foot and
mouth disease concerns in China, will see
high prices and little demand in Japan.
In the short term, rice straw is unlikely to be
a threat to the ever increasing Australian
wheat and barley straw market in Japan. The
quality of straw will be a very important
issue to discuss with growers as sales
volumes increase.
North American Crops
The current US hay crops have continued to
be hit by weather damage with 100% of the
1st cut alfalfa wiped out. Early-cut US
timothy has also suffered rain damage. In
the meantime, Sudan grass has experienced a
good season and the quality of the hay is
reasonably good with fine stems.
Although Nth America expected a bumper
crop earlier this season, the volumes will be
similar to last season due to the cool weather
in the early stage of planting.
Canadian timothy has good growth so far
with enough snow water in the irrigation
area. Harvest occurs from the end of June
onwards.
AFIA Newsletter September 14

The Australian situation
The AUD ($0.76) has been remaining quite
high against the USD over the past 18
months and this will certainly affect the
price to growers in a tough year. Unlike
2002, the last difficult year we faced, when
hay was purchased at well above $200AUD
per metric tonne (off farm) the dollar was
much lower ($0.64). This year export prices
will be strong but will not make the same
prices made in 2002.
Hay Inspection on Wharf in Yokohama – Japan
Maximum residue limits critical
The Australian hay export industry is now
responding to Japan’s requirements for a
maximum residue limit (MRL). The MRL
regulates agricultural chemical residues
remaining in foods, including animal feed.
The accurate recording of chemical
application will be increasingly important
for us in order to ensure the quality and
safety of hay and straw. In addition, the
strength of the Australian hay and straw
export industry will be supported by
responsible application of agricultural
chemicals as safety is very important for
food as well as animal feed.
In Brief
JCB Wanted
A member is looking to replace a telescopic
loader damaged in an accident. If anyone has
a JCB 525B Telescopic Loadall available for
sale in any sort of condition particularly if it
was a 1994 model, please contact Adrian
McDonald on 03 5480 7344.
Aussies Expand into China
An Australian firm has spotted the
potential for a dairy boom in China.
Along dusty roads in the vast grasslands
of far north China, the Mengniu Austasia
Model Dairy Farm has almost 4,000
dairy cows.
Within two years it will have 10,000,
making it one of the largest dairies in the
world. The 590 hectares property will
milk a maximum of 6,000 milking cows.
It's a joint venture between China
Mengniu Dairy Industry (Group) Co (the
second-largest milk and milk-products
distributor in China), Australianregistered
Austasia Company (part of the
Indonesia-based Japfa group), and the
Salim Group of Indonesia.
And the rapid expansion of Western fast
food chains has stimulated the demand
for cheese, which is used in hamburgers and
on nachos and pizzas at the 1,758 KFC
outlets and 261 Pizza Huts in China. New
outlets open almost daily. Euromonitor
International's latest research shows that the
milk sector in China grew by 188 per cent
between 1999 and 2004. China has the
lowest per-capita rate of milk consumption
in the world an estimated two litres per
person in 2004 leaving room for significant
growth in the market.
John Griffith, Brisbane-based chief
executive of Austasia, says that the
motivation to invest in agriculture in China
comes from the fact that it holds 30 per cent
of the world's population but just 7 per cent
of the world's arable land. Source:
Australian Financial Review
AFIA Newsletter September 2006 15

AFIA Newsletter September 16

Member Profile: Gary Johnston, Forbes NSW
Gary Johnston, lucerne producer and AFIA
member from Forbes in the Lachlan Valley,
central western NSW has recently been
announced as the NSW Farmer of the Year.
The award is initiated by the NSW Farmers’
Association, the NSW Government, the
Royal Agricultural Society and The Land
newspaper. The award acknowledges
agricultural excellence with an emphasis on
farmers who combine sustainability with
profitability.
Gary’s property, ‘Merriment’, is a mixed
irrigation property in the heart of the
Lachlan Valley. Gary and his family have
been growing lucerne on the farm since 1975
and now combine this with grazing and the
production of garden mulch.
The combination of highly improved and
irrigated production areas mean the farm can
reliably produce large volumes of the highest
quality lucerne, clover and cereal hay. Gary
custom-grows this fodder with a major focus
on maximum nutritional levels.
To prove the quality of his products Gary
has regular nutritional analysis conducted by
internationally recognised laboratories.
Gary receiving the NSW Farmer of the Year
2006 award from the NSW Primary
Industries Minister
‘As a result we have a solid 30 year
reputation as a preferred producer, processor
and supplier of the highest quality produce’
Gary said.
Adding value to his farm’s production Gary
has established the company, Earthco, for
the production and marketing of mulch and
fertiliser products. Gary organises the orders
and deliveries to ensure reliable service and
honest advice for his products.
In addition to producing and marketing
lucerne, Gary runs cattle, lambs and grows
2-3000mt of barley, wheat, oats and canola
in rotation.
Gary is also committed to developing a
sustainable production system. He has
planted 15000 trees on ‘Merriment’ and has
fenced off areas of remnant vegetation. Gary
is also a director of Jemalong Irrigation and
works closely with his local Catchment
Management Authority. As a result
‘Merriment’ has been awarded a range of
Landcare awards.
The home page of Gary’s website,
www.merriment.com.au, proudly displays
that he is an AFIA member. Gary sees this as
an important aspect of his business and
views the work that professional associations
do as being important to improve the product
quality and professionalism of industries.
AFIA Newsletter September 2006 17

Dairy Survey Reveals Hay Buying Behaviour
A recent comprehensive survey of dairy
farmers across the country revealed some
interesting facts regarding buying behaviour
of dairy farmers.
The survey conducted by Dairy Australia
asked the following questions:
Sources
With hay and silage which is fed to
your cows, do you grow your own, buy in
fodder from off farm, use both home grown
and bought in or other?
Where do you buy the majority of
your hay and silage from? Is it direct from
specialist hay growers, from other dairy
farmers, from a feed merchant or other?
When you purchase hay or silage, do
you mainly buy it as required, buy and store
in significant amounts on farm, forward
contract for later delivery or other?
all self
grown
50%
hay and silage source
not used
2%
both grown
and
purchased
41%
all
purchased
6%
Answers
• Approximately half the respondents
(51%) who feed hay and silage grow it
themselves, the others purchase from several
sources, but mainly from specialist growers.
• In WA, a high 67% grow their own
hay or silage and 19% purchase from
specialist hay growers. In contrast, 34% of
Bega respondents grow their own and 48%
purchase from specialist hay growers.
• In an interesting result, 58% of
respondents with extra-large herds grow
their own hay or silage, a significant 14
points higher than those with large herds
(44%), but similar to those with small (51%)
and medium herds (54%).
Implications
On most dairy farms, cows are fed at least
some hay and/or silage which is grown on
farm.
These results highlight the importance of
ensuring dairy farmers have considerable
knowledge of how to maximise the feed
value of both hay and silage.
It is notable that respondents with herds of
between 301 and 500 cows (the segment
most likely to increase production) are the
least likely to grow their own hay and silage.
Purchase behaviour
When you purchase grain or pellets,
do you mainly buy it as required, buy and
store in significant amounts on farm,
forward contract for later delivery, use
grains futures markets?
When you purchase hay or silage, do
you mainly buy it as required, buy and
store in significant amounts on farm,
forward contract for later delivery or other?
Answers
• Forty seven percent (47%) of
respondents mainly purchase
hay/silage as required, while 46%
typically buy significant amounts and
store it on farm.
• Respondents from Tasmania (63%),
nth Vic/Riverina, central/Murraylands
SA (53%) and south/central NSW
(51%) are the most likely to buy
significant amounts of hay or silage
and store it on farm.
• Purchasing hay or silage by forward
contract is significantly more common
among respondents with x-large (19%)
or large herds (16%) compared to
small (6%) or medium herds (8%).
AFIA Newsletter September 18

While watching the miles pass by on our NT
Tour this year, Teresa Williams of
Numurkah Vic, jotted down a few
observations in verse. Thanks for your
talents Teresa!
The Red Bus left Darwin - the Holiday Inn
N.T., from Coffs Harbour? … John had a big grin
He thought it was simple, the jaunt of the year
But his mate didn’t say there was no second gear
Douglas Daly Research Jed and Peter reviewed
Our first Centre Pivot, where brolgas intrude
Hats on for the trip, and to Fleming for lunch
Locals brilliantly catered the 2pm rush
The queue for the bathroom’s a very long line
Ladies be patient: it’s one at a time
Éarly Storms’ Brett showed us hay in the bale
The bush-bashing bus was graffitied ‘’FOR SALE’’
Cavalcade, sorghum lots of Jarra grass
Free aquifer water - pristine, like glass
Into Knott’s Crossing at Katherine for tea
Peanuts, the Research Farm, more pivots to see
Out to the hay squashing factory we went
Marveling how they packed cubes to be sent
Number 5 worker’s impressive work rate
Inspired some millers to urge him to mate
It seems that he might be just great stacking feed
But it’s 350 grand if you want him to breed
Next morning we coached out to Cutta-Cutta caves
Where Liz answered questions that were still in our
brains
She thought we ‘were wondering’ -She tell us so,
right?,
The caves were exciting but not very bright
The keen shoppers left us deserting the bus
The World’s Biggest Classroom was waiting for us
Bronwyn’s experience at School of the Air
She shared (in 20 minutes) what they did there
Joanne did the research &, after the Ghan
We saw Spring Vale Homestead - life without fans
Then came Nitmiluk Gorge - a highlight for all
Cruising in daylight then dining aboard
A peaceful excursion, though Ashley wanted to prove
The crocs could be plastic ‘cos they didn’t move
The boat driver didn’t care for this remark
And drove our boat madly in to the boat park
He called ‘Brace yourselves!’ which led to a few
The Red Bus Tour
jokes
From sheep loving Kiwis or rude Aussie blokes
Streams gently rippling, Stars brightly glistening
AFIA tippling, Crocs quietly listening
Candles, fine linen, good wine (& beer) to drink
Two birthday boys thought they were special I think
Wild Wendi from Waaia, Tasmanians too
Charlie & Louis & some of the crew
Partied on through the evening (not quietly but
They had to retire when the bar there was shut)
The last that was heard from the drunks when they
left?
‘Happy Birthday to me’ sang out Gerard – then slept
The infamous Red Bus (without an AC pulley) and
the blokes who cant stay away from a tool box!
Next morning we headed out for Kakadu
The bus had a problem (Oh well, what is new!)
Luckily farmers can fix stuff you see
We arrived for our lunch the same time as APT
Our boat driver Tricia gave out safety tips
If we left the boat Pluto would be licking his lips
(I know that crocs can’t move their tongues, so I
guess
He wouldn’t be licking – anyway, I digress)
We came from Australia All Over (like Macca)
Everyone here is a BOM tracker
How come it was raining in NT in July?
Not only us, but no-one knows why!
‘Indigenous artwork’ is real hard to rhyme
So luckily for us I have run out of time
Exciting new scenes and fantastic new friends
We’re all happy campers, as this journey ends
We’ve all made it back from ‘the trip to the sticks’
The AFIA Pre-Conference Study Tour, 2006
AFIA Newsletter September 19

The AFIA Group at Douglas Daly Research
Farm
Our NT group at Jabiru
AFIA Tours 2006 – Photo Gallery
Whilst AFIA has used reasonable endeavours to ensure that the information provided in this newsletter is
accurate and up to date as at the time of issue, it reserves the right to make corrections and does not
warrant that it is accurate or complete. AFIA hereby disclaims all liability to the maximum extent permitted
by law in relation to the newsletters and does not give any warranties (including any statutory ones) in
relation to the newsletter
_____________________________________________________________________________________________
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A road train of cavalcade at Northern
Feed and Cube Katherine
Fascination at Alan Garstone’s Rhodes
grass operation at Kununarra
Colin Butcher WA, Owners Steve
Balkalian and his son and Charlie
Williams Vic checking cubes
Our Kimberley group at Kununarra
getting reacquainted with water!
AFIA Newsletter September 20