“We are one week in and the major event I am here for is ‘International Dairy Week’ here in Shepperton. This consists of a major show exhibiting 1,200 dairy cows and a number of field days in the Victoria region of Australia.
"The mid-summer drought is now well established and the only green fields in sight are on those farm where water is still owned outright. Many farmers over the last few years have sold water rights to raise capital and are now faced with buying water annually, which is very expensive, or feeding conserved forage.
"I have visited several dairy farms whilst I have been here in Australia and they all seem to have managed their costs fairly well, with good business planning. We are seeing rape and wheat-meal being fed in parlours and little or no housing needed; labour is of course a major issue, as it is in most areas, and ‘back-packers’ seem to be the major source for employment, which comes with a relatively high staff-turnover.
"Milk prices are running at about 41cents/kg (about 22ppl), which is about 5 cents below the annual average. This is causing some problems but with a pretty secure export market it does not seem to currently be causing major problems. Cattle culls are on the up and good Holstein cows are making about AUS$1200 or more.
"We are staying on a farm at the moment and I am particularly interested to see the cattle ID system. All cattle have electronic tags, which have to be purchased by the breeder, but to do so you must declare your health status and location and this information is available to anyone with a reading instrument. The health status is amended as the herds health changes, whilst sex and breed are not deemed as that important. The data protection information does not seem to be so strict here!
"This week I held a presentation with Hank Van Exel from California; His milk prices have now fallen by -45%, but beef has gone through the roof with beef stocks at an all-time low. It was discussed how prices for beef crossed calves are very high and how California is in the biggest drought period for many years and water is a major issue. On Hank’s farm in 2012 his milk cheque did not cover his feed for 9 months of that year on his 2500 cow unit – it is good to feel that we aren’t completely alone.
"I have also managed to fit in a quick trip to a local supermarket, where whole milk was retailing at AUS$1.60/litre (about £1.90/4 pints). In the next few days we will be visiting the largest indoor unit here in Mount Gambier, which is very relevant as the big news over here is the perceived ‘super-dairy’ being built in Queensland by an owner from the mining industry."