Devondaler-June-2015

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2 JUNE 2015 DEVONDALE MURRAY GOULBURN INTERNATIONAL MARKET REVIEW Prices down but decline has slowed International prices $US/MT FOB THE results of Global Dairy Trade (GDT) Event 140 which concluded on 19 May 2015 produced a GDT Price Index which was down by 2.2 per cent. While this is the fifth successive decline in the index, the rate of decline has slowed with the participation rate increasing to 162 buyers from a low of 127 on 1 April. The result on Whole Milk Powder (WMP) was down 0.5 per cent suggesting that prices in this category may be stabilising which is positive given that this represents nearly half of the total volume on offer at this event. Prices were down in all categories other than Butter Milk Powder (BMP) and Lactose where volume traded was minimal. The result of this auction event continues to reflect a weak market where buyers are still coming to terms with the forward direction on prices. The weakest category at present is Skim Milk Powder (SMP) where supply exceeds demand The Devondaler is published by Devondale Murray Goulburn Editor: Robert White (03) 9846 5188 or 0427 329 815 tophill@optusnet.com.au and supported by milk growth in major producing regions. Milk production in the EU is still increasing and expected to be just as strong as last year. Year-on-year milk production in the EU is currently down, however early reports suggest that April numbers are well up on forecast. In the USA, April milk production figures confirm growth of 1.75 per cent over last year with declines in drought-hit California more than off-set by gains in the more traditional milk production regions. The Australian dollar continues to trade strongly and even strengthened, following the drop in the cash rate of 25 basis points announced by the RBA on 5 May. This highlights that the Australian dollar rate is influenced more by the actions of the US Federal Reserve, where continued delays to the much publicised first rise in interest rates since the Global Financial Crisis continue to support our dollar. Any significant easing in our dollar is likely to be dependent on the timing of this rate rise in US which is now likely to be September 2015 at the earliest. The latest weakness in the Euro is also likely to maintain downward pressure on commodity prices in the short term. The ongoing absence of Russia and China remains a concern. With China’s milk production reportedly up five per cent and retail demand down in China, a recovery in this market appears increasingly unlikely in 2015. Russian sanctions expire early August 2015 however most EU producers and trade experts believe that sanctions will continue beyond August 2015. While the overall sentiment remains weak, it is likely that we are at or near the end of the current easing cycle. Many buyers report they are covered for supply in the medium term. Therefore we do not expect a significant improvement in prices until there is either a supply side event to curtail production or a return of key buyers to bolster demand and restore balance to global trade. ● Mal Beniston is MG’s General Manager Ingredients Key Results: MAIN PRODUCTS SMP down 3.6%, average price $US1992/MT WMP down 0.5%, average price $US2390/MT AMF down 4.8%, average price $US3337/MT OTHER PRODUCTS Butter down 3.2%, average price $US2911/MT BMP up 3.2%, average price $US1930/MT Cheddar down 7.1%, average price $US2745/MT Lactose up 0.9%, average price $US50 Rennet Casein down 0.4%, average price $US6067/MT Don’t take a risk with risk management Advertising and classified enquiries: (03) 9040 5000 Murray Goulburn Co-operative Co. Limited, Level 15, 2 Southbank Boulevard, Southbank, Victoria 3006 Phone: (03) 9040 5000 MG suppliers and employees are welcome to submit photograps and editorial for consideration. Deadline is the 24th of each month. The Devondale Murray Goulburn Twitter account is online now at @DevondaleMG RISK is something we all face every day. It’s part of the normal rhythm of life. But it is a bit sobering to think that farms remain one of the most dangerous of all workplaces. And with National Farm Safety Week starting on July 20, it is timely to consider how safe your farm is. Each month, the Devondaler runs a column on farmer health, highlighting issues confronting each and every Devondale Murray Goulburn supplier. A couple of issues ago, the Devondaler highlighted how simple it is to be cut down by a staph infection after a supplier was hospitalised when a small open wound was exposed to milk infected with mastitis. In the past month, both Worksafe and Farmsafe have highlighted the fact that tractors and quad bikes remain the greatest killers on farms. An accident is just that. Something that was unexpected. But in too many cases, failure to understand and manage risk means that an accident is more a case of irresponsibility. I am encouraged by the number of farmers I now see wearing helmets when they ride both a two wheel bike and/or a quad bike. But there are still too many instances where I have seen a quad bike used as a racing machine, rather than the valuable farm tool that it can be. Farming, and dairy farming in particular, can be a lonely life. Many hours are spent in paddocks or in the milking shed on your own. This, in itself, creates risk. A fall, an attack by stock or even a cardiac arrest can leave a farmer vulnerable. Let people know what you are doing on a particular day and where you will be. The mobile phone can also be a wonderful safety tool and regular calls can provide reassurance at both ends of the line. Children also need to be educated in farm safety. Dams and channels may be fun in summer heat but they are also dangerous. Tanker drivers cannot always see everything that goes on around them when they arrive at a farm, so teaching children to be alert and aware is critical. MG has introduced a Goal Zero program to cut workplace injuries in factories and offices and the themes that form the key parts of the program could easily be followed on farm. As National Farm Safety Week approaches, let’s not be yet another statistic to add to the fatality list.
DEVONDALE MURRAY GOULBURN JUNE 2015 3 Education leads to better prospects By SHARON CAIN ROB Beverley, a recent graduate of Go Tafe in Victoria, believes the world is your oyster if you have education. Rob grew up at Dorrigo, near Coffs Harbour, on the central coast of New South Wales, where his parents Terry and Louise had a 23ha hobby farm. “We had four dairy cows and would milk them through a single milking machine and then feed the milk to calves,” said Rob. “Dad also worked on a dairy farm when I was growing up and I did a fair bit of relief milking to help out,” he said. The Beverley family decided that dairying would be their future and in August 2002 they bought a dairy farm in Katunga in northern Victoria. After leaving school, Rob started an engineering apprenticeship but gave that up after he was offered a job on a dairy farm. “I worked in a couple of farm jobs but it was not until I started working at Oxdale Dairies in Cobram under the guidance of Manager, Mark Edwards, that I really began to learn a lot,” said Rob. “Having someone who can lead and teach was a great help to me and I really appreciated that,” he said. “One day I got a call from Mum asking if I would be interested in coming back to the family farm to help with the possibility of taking over one day,” said Rob. Rob has been working on the farm for the past four years, assisting his father during the week and looking after the calves for his mum in the weekends. Rob has 10 cows of his own with a goal to start a Brown Swiss stud. He is joining his cows by AI to Brown Swiss this year. “They have good milk and good components so I think that is they way to go,” said Rob. Rob began studying towards certificate III Agriculture Dairy through Go Tafe in 2013 and has just graduated after achieving certificate IV. When Rob was in year 11 at high school he contracted Rheumatic Fever which progressed to Sydenham’s chorea, a medical condition affecting his nervous system and movement. After a long recovery, he had to repeat his year 11. “I didn’t really take year 12 seriously and that is the reason why I am working hard towards study now,” said Rob. “I look back and think I should have tried harder then. I didn’t, so I am going to make up for it now.” Apart from the day-to-day work on the farm, Rob breeds and shows a variety of chickens with the help of his wife, Melissa. “My grandfather had chooks when I was growing up and I used to go to chook shows then,” said Rob. “Our children help feed them and they all have their own breed of chooks to look after. When it comes time to sell them, Rob Beverley with his son, Jackson, 4, check out some of the new Brown Swiss stock on the farm at Katunga in northern Victoria. they get money to put into their bank accounts. “It gives them an interest and teaches them animal husbandry,” he said. Rod is furthering his studies this year towards a Diploma in Agriculture Dairy. “I wish I had known about the opportunity to study and complete these courses 10 years ago,” he said. “Had I known about this when I was 20, who knows where I would be now. If you can get the knowledge, you can turn it around to benefit yourself and others,” he said. Online advice to help cut energy costs New Cohuna MG Trading store Manager, Keegan Ryan. Keegan is new Cohuna store manager MG Trading at Cohuna has a new store manager, Keegan Ryan, who was appointed in April. Keegan has been with MG for more than three years and joins the Cohuna store from his previous position as assistant manager at Numurkah. “I had about eight months break after leaving school and had various jobs before applying for the role with MG Trading,” he said. Keegan was born and bred in Numurkah but said Cohuna had a strong community based on farming and sport. “It is very much like the town where I grew up and people have been very supportive since I arrived,” he said. Keegan has quickly got involved with the local Cohuna Kangas Football Club and has already won senior selection. He admitted that during his teenage years he wanted to join the police force but is now more than happy to be part of the MG Trading team. “It’s a real challenge and an opportunity for me,” he said. DAIRY farmers can now view quick and simple ways to save energy online, and potentially add thousands of dollars to their business bottom line, thanks to a joint venture of WestVic Dairy and Sustainability Victoria. WestVic Dairy secured funding through Sustainability Victoria’s Smarter Resources Smarter Business program last year to produce five 3-5 minute videos about how to save energy on farms. The videos are now available and were inspired by the Dairy Australia’s (DA) publication Smarter Energy Use on Dairy Farms. Focusing on simple, cost effective measures farmers can implement to reduce energy costs, the videos are part of WestVic Dairy’s Victorian Farmers View Simple Ways to Save Energy project. They cover the different aspects such as water heating, milk cooling, milk harvesting, general energy use on farms and low cost steps to reduce energy. The project’s goal is to encourage more dairy farmers to consider undertaking energy saving measures and build on the experiences and findings of the Smarter Energy Use on Australian Dairy Farms project. WestVic Dairy’s Executive Officer, Paula Doran, said the videos were another way WestVic Dairy was helping farmers increase business profitability on their farms. “High energy use is a necessary evil of dairy farming and contributes to high on-farm costs,” she said. “Not only does reducing energy use on farms improve profitability, it also ensures that we build a sustainable industry.” For more information about the videos, please contact WestVic Dairy on (03) 5557 1000 or email amanda@westvicdairy.com.au
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Devondaler-June-2015

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