Dairy Connect

Dairy Connect Supporting a viable, sustainable and profitable Australian dairy industry. Advocates for a sustainable and profitable Australian dairy industry.

01/09/2023

The Australian kelpie lost the use of her hind legs in a farm accident six months ago, but thanks to a custom-made set of wheels, Ali is back at work doing what she loves.

01/09/2023

TUFF is a two-day workshop for farmers, fishers and rural blokes to take two days to relax, connect and reflect on what’s important.

During the workshop participants will explore strategies and tools for:
• Navigating life challenges.
• Exploring work/life balance – identifying places for change and achievable actions.
• Dealing with difficult situations and conflict.

TUFF is brought to you by the NSW DPI who will cover accommodation, meals and activities during the workshop. The only cost will be travel to and from the venue.

If you, or a rural bloke you know, needs to re-charge - fill out the form to register
https://docs.google.com/forms/d/e/1FAIpQLSct7g86zVZIByWjPt6XQ4dwcsuHKKaJprnoR6F2Un0iNQoKBA/viewform?pli=1

To speak to someone directly call Henry Goodall on 0438 744 267, email [email protected].

01/09/2023

“Remember to get your applications in for the Dairy Cattle Underpass Scheme (CUPS)! Applications are being assessed and will close on 8 September 2023

If you are, (or know) a producer who would benefit from an underpass or warning signs and lights on farm, now is the time to submit applications in order to be considered for approvals!”

More info and to apply

The 2023 Dairy Research Foundation Symposium will be held at Sydney Uni Camden Campus (Liz Kerkohan Conf Center) on 7/8 ...
29/08/2023

The 2023 Dairy Research Foundation Symposium will be held at Sydney Uni Camden Campus (Liz Kerkohan Conf Center) on 7/8 Nov. The theme is ‘A lot more than CARBON’, re what can be done to address future pressures related to Cows. Info & tickets available at the link below.

Dairy Research Foundation 2023 Symposium A lot more than just ‘Carbon’ Day(s) : Hour(s) : Minute(s) : Second(s) 7th – 8th NovemberCamden | NSW Program Snapshot Get Tickets About the 2023 Symposium The 2023 Dairy Symposium will be held at The University of Sydney’s Camden Campus (Liz Kerkohan...

Price rises not over yet for VegemiteJessica Yun 24 August 2023Shoppers will be forking out more for grocery basket stap...
25/08/2023

Price rises not over yet for Vegemite

Jessica Yun
24 August 2023

Shoppers will be forking out more for grocery basket staples owned by Bega Group, including its Dairy Farmers and Pura Milk products, Vegemite and its flagship cheese brand, in the months ahead as the food group faces higher operational costs.

Bega Group’s executive chairman Barry Irvin said impending price rises would be “nothing as dramatic as we’ve seen in previous years”, but that operating costs like energy, logistics and fuel were still putting pressure on the company, which was unprofitable for the 2023 financial year.

“There are some rises in our business. Obviously, we look to try on each of them, but inevitably, some of them do have to be passed through,” Irvin said.

Irvin declined to comment on the size or percentage of the expected price rises, but said the increases would be spread across its portfolio of brands.

“I wouldn’t say that any of them are actually more protected than any other. They all absorb a share of costs,” he said. “We obviously consider carefully how we can mitigate the cost to the consumer and indeed, even how we can effectively take opportunity of promotions of products.”

Spikes in global dairy prices, dwindling milk supply, and escalated costs in fuel and energy saw Bega Group’s earnings and profits nosedive over the past year.

While revenue rose 12 per cent to $3.4 billion, higher interest rates and a 30 per cent increase in the farmgate milk price were responsible for driving Bega’s normalised profits down 38 per cent to $28.5 million and earnings down 11 per cent to $160.2 million for the 2023 financial year. Two of its bulk commodity plants were revalued, leading to a $230 million write-down that resulted in a statutory loss of $229.9 million.

The losses haven’t deterred investors, however, who sent the share price 1.25 per cent higher to close at $3.23.

The dairy and cheese giant will pay a fully franked dividend of 7.5 cents per share for the 2023 financial year, which is down from 11 cents the year before. The final dividend will be paid on September 21.

In a tightening economic environment where shoppers are turning to private-label brands, Bega’s well-know brands managed to hold its own, according to its results.

“We retained our market leading position in the yoghurt, milk-based beverages and spreads categories, with our yoghurt brands now accounting for more than 25 per cent of the high-growth yoghurt market,” executive chairman Barry Irvin and CEO Pete Findlay wrote in a joint address.

The dairy giant is paying attention to the popular trend of plant-based products. Earlier this year, it launched a plant-based cheese range that attracted online criticism from some shoppers.

After being pushed out of the plant-based beverages market, Bega has struck a deal with Milklab maker Noumi, another loss-making ASX-listed company, to distribute the popular plant-based milk to 30,000 customers a week.

The $1 billion business is considering how else it can enter the plant-based space, with Irvin earmarking Dare iced coffee as one of the brands that could release a plant-based milk offering.

However, the ASX-listed company expects more difficulty on the road ahead, warning of “relatively flat” financial performance for the 2024 financial year, normalised earnings to fall between $160-170 million (similar to what it unveiled this year) and expects a more positive outlook in the “medium term”.

UBS director Evan Karatzas said Bega’s 2024 financial year profit guidance was “broadly in line” with pre-reported commentary. “Cash generation improvement in FY24 [will be] a high focus after disappointing this year,” he wrote in a note.

E&P Capital retail analyst Phillip Kimber noted Bega’s share price had recovered 12 per cent since its June trading update and anticipates the share price will remain around current levels.

Dairy and cheese lovers be warned: some of your shopping basket staples will get more expensive, according to Bega’s executive chairman Barry Irvin.

Congratulations to former NSW Dairy Farmers Association CEO & Dairy Connect Life Member Winston Watts and his wife Jan f...
14/08/2023

Congratulations to former NSW Dairy Farmers Association CEO & Dairy Connect Life Member Winston Watts and his wife Jan for their 60th Anniversary. A truly beautiful milestone!

OPINIONThe fake meat fad has finally been exposed as a complete waste of moneyBy Ben MarlowAugust 10, 2023Last year, a t...
10/08/2023

OPINION
The fake meat fad has finally been exposed as a complete waste of money
By Ben Marlow
August 10, 2023

Last year, a top executive at one of America’s biggest alternative meat product manufacturers was arrested for sinking his teeth into another man during a road rage incident in Arkansas.

Douglas Ramsey, chief operating officer of Beyond Meat, later pleaded guilty to punching the motorist and biting him on the nose. The confrontation took place in a car park following an American football game after Ramsey accused the victim of bumping one of the front tires of his SUV.

For a company dedicated to weaning people off meat, it’s hard to think of a more unfortunate bit of publicity than one of your top bosses trying to tuck in to a potential customer.

But then this is an outfit with a penchant for fatuous hipster babble such as “help humans eat nutritious” and “eat what you love”, so you can understand if Ramsey thought he was being encouraged to eat meat rather than stop consuming it. Or perhaps, after being forced to consume nothing but faux-flesh made from beetroot juice and methylcellulose for months on end, he craved some real bone and gristle.

Another possibility is that Ramsey was angry after seeing the state of Beyond Meat’s share price, and concluding, like many other people, that the fake meat fad is nothing more than another venture capital-fuelled waste of money.

It’s certainly hard to conclude otherwise after an abysmal set of financial results wiped an eye-watering 19 per cent off its already battered share price. Sales have collapsed by nearly a third in the last three months alone, the company is burning through cash and forecasts have been torn up.

The California-based company was supposed to be the poster child for the vegan movement but instead it risks becoming a symbol of the worst excesses of the cheap money era of the last decade.

Beyond Meat debuted on the Nasdaq stock exchange in May 2019 at $US25 per share. The listing received the enthusiastic backing of Wall Street, yet got the full Silicon Valley treatment.

You may read the rest of the Opinion at:

Beyond Meat was supposed to be the poster child for the vegan movement but instead it risks becoming a symbol of the worst excesses of the cheap money era of the last decade.

The climate-friendly cows bred to belch less methaneBy Rod NickelAugust 8, 2023ReutersWINNIPEG, Manitoba, Aug 8 (Reuters...
08/08/2023

The climate-friendly cows bred to belch less methane

By Rod Nickel
August 8, 2023
Reuters

WINNIPEG, Manitoba, Aug 8 (Reuters) - When Canadian dairy farmer Ben Loewith's calves are born next spring, they will be among the first in the world to be bred with a specific environmental goal: burping less methane.

Loewith, a third-generation farmer in Lynden, Ontario, in June started artificially inseminating 107 cows and heifers with the first-to-market bull semen with a low-methane genetic trait.

"Selectively breeding for lower emissions, as long as we're not sacrificing other traits, seems like an easy win," Loewith said.

The arrival of commercially available genetics to produce dairy cattle that emit less methane could help reduce one of the biggest sources of the potent greenhouse gas, scientists and cattle industry experts say.

Burps are the top source of methane emissions from cattle. Semex, the genetics company that sold Loewith the semen, said adoption of the low-methane trait could reduce methane emissions from Canada's dairy herd by 1.5% annually, and up to 20%-30% by 2050.

The company this spring began marketing semen with the methane trait in 80 countries. Early sales include a farm in Britain and dairies in the US and Slovakia, said vice-president Drew Sloan.

If adopted widely, low-methane breeding could have a "profound impact" on cattle emissions globally, said Frank Mitloehner, professor of animal science at University of California Davis, who was not involved in developing the trait.

Some dairy industry officials remain unconvinced about low-methane breeding, saying it could lead to digestion problems.

Canada's agriculture department said in an email that it has not yet assessed the methane evaluation system underlying the product but that reducing emissions from livestock was "extremely important."

Livestock account for 14.5% of the world's greenhouse gas emissions. Methane is the second-biggest greenhouse gas after carbon dioxide.

While farmers can feed additives to cattle to reduce methane production, their effects wear off once cattle stop eating them and they are not approved for use in the United States, Mitloehner said.

The low-methane breeding material is the product of a partnership between Semex and Canada's milk-recording agency Lactanet and based on research by Canadian scientists.

Lactanet in April released the world's first national genomic methane evaluation, and has produced results from Holstein cows and heifers on 6,000 farms, representing nearly 60% of Canada's dairy farms.

BREATH CAPTURE

The registry drew on seven years of research by University of Guelph and University of Alberta scientists to measure the methane of dairy cattle.

The scientists captured the exhalations of cattle to measure them for methane, and then compared the data against genetic information and milk samples.

Methane emissions from Canadian dairy cows vary widely, from 250 to 750 grams per day, said Christine Baes, professor of animal biosciences at University of Guelph, who worked on the project.

Selecting for the low methane trait could lock in lower and lower emissions for successive generations, she said.

"The breakthrough here is linking these different components to have a national breeding value estimation for methane emissions based on real breath of animals," Baes said.

"We also have genomic information and we match those up and create almost a telephone book to say, 'this animal has these genes and produces this much methane.'"

Semex is not initially charging extra for the methane trait, said Michael Lohuis, Semex's vice-president of research and innovation. He declined to provide sales projections but expects sales to remain slow until financial incentives emerge.

The Canadian government currently offers no incentives for low-methane cattle breeding, but the agriculture department said in an email that Ottawa is working to introduce offset credits for reducing methane through better manure management.

Some countries and food companies have begun to encourage farmers to move to lower-emitting cattle.

New Zealand will begin taxing farmers for methane from cattle in 2025.

Nestle (NESN.S) and Burger King parent Restaurant Brands International (QSR.TO) are tackling the methane problem in their supply chains by changing what cattle eat.

Mitloehner said he expects companies to eventually recognize low-methane breeding, too.

"Genetic change is permanent and cumulative across future generations so it can add up to substantive reductions," Lohuis said. "This is certainly not the only tool dairy producers can use to reduce methane on-farm, but it may be the simplest and lowest-cost approach."

Other dairy experts said such an approach could be problematic.

Juha Nousiainen, senior vice-president at Valio, a Finnish dairy, warned that breeding cattle to burp less methane could create digestive problems.

Methane is produced by microbes in the cow's gut as it digests fibre, not by the animal itself, he said.

Back on his farm, Loewith is eager to see how the breeding decisions will play out.

"If it's something that you've doubled down on generation after generation, then the impact becomes more significant."

Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Caroline Stauffer and Suzanne Goldenberg

https://www.reuters.com/business/environment/climate-friendly-cows-bred-belch-less-methane-2023-08-08/

A Canadian dairy farmer's calves will be among the first to be bred with a specific environmental goal: burping less methane.

Breakaway dairy farmers want better value for their VFF dollarBy Andy WilsonAug 7, 2023Campaspe NewsThe head of the Vict...
07/08/2023

Breakaway dairy farmers want better value for their VFF dollar
By Andy Wilson
Aug 7, 2023
Campaspe News

The head of the Victorian Farmers Federation says she is working hard to discuss the proposed split of Victoria’s peak dairy body, with advocates agitating for change.

VFF president Emma Germano told Dairy News that conversations with the newly formed Dairy Farmers Victoria (DFV) were ongoing.

DFV president Mark Billing said the reason for the formation of the group, which comprises defecting members from the long-standing United Dairyfarmers of Victoria, was due to the peak body not receiving resources commensurate with memberships paid to the VFF.

“I think that dairy feels in some ways that it was subsidising VFF to cover their debt,” Mr Billing told Dairy News.

“We’d much rather be able to have control over our own destiny, but we still want a strong part to play in supporting VFF, whether it be resources or even financial support.”

Ms Germano said that discussions were “still fresh” and that she had been speaking with Mr Billing in good faith.

“At the end of the day the VFF will always stand to represent dairy farmers,” she said.

“How that industry representation is best for moving forward is obviously something that we have to have communication about to forge that path.

“The other thing is that this is a conversation that has been brewing for some time, and I think it’s a positive thing that it’s coming to a head so that we can sit down and work out this simmering tension once and for all.”

Mr Billing said currently the UDV had no staff, whereas in 2017 it employed four people.

“The main issue for us is the amount of money that’s going into VFF from Victoria’s dairy farmers, which is around a million dollars, and the fact that we have no staff which are dedicated to the dairy commodity,” he said.

The new organisation will not be under the umbrella of the VFF (as the UDV is) and is modelled on the South Australian Dairyfarmers Association.

“The SADA model has worked well for the South Australian equivalent of the VFF,” Mr Billing said.

He said it was important to note that the 180 dairy farmers in SADA had been able to employ more than three staff.

“We’ve got about 3000 dairy farmers in Victoria, and we have no staff.

“So something has got to change because we need to get value for the money that Victorian farmers are putting into advocacy.

“Given that we’re 64 per cent of the national milk pool, Victoria is very important.”

Ms Germano said the issue of resourcing was something the VFF board had been looking into.

“You cannot fund an operation on debt and that’s what has been happening for the best part of a decade and so ultimately what we have got to work out is how to allocate resources where we get the most impact,” she said.

“It’s no longer about whose voice is loudest at the table, how much they pay to be sitting at that table.

“The Victorian farming industry has to be unified in its approach to advocacy and most importantly we need to listen to the farmers.

“We have asked the farmers and they have told us categorically that it doesn’t matter where they are in the state, what it is that they grow or how big their operation is, what the VFF has to advocate for is the same.

“And we’re talking rates; we’re talking right to farm; we’re talking fair supply chains, roads and infrastructure.

“It’s the reason that the VFF exists in the first instance.”

Mr Billing said although negotiations so far had “gone nowhere”, he was confident of an outcome.

“We’re just waiting for VFF to mull over what we have briefed them on, and we are planning to have another discussion with them shortly.”

The head of the Victorian Farmers Federation says she is working hard to discuss the proposed split of Victoria’s peak dairy body, with advocates agitating for chang...

“Dairy Australia meetingDairy Australia will hold its annual general meeting on November 28.The meeting will be held as ...
07/08/2023

“Dairy Australia meeting

Dairy Australia will hold its annual general meeting on November 28.

The meeting will be held as part of a farmer forum in Moama and will also be accessible online.

The forum and meeting will be interactive, providing the opportunity for farmers to engage over lunch and dinner, hear from other farmers and industry leaders on feedbase and climate, and find out more about the value Dairy Australia delivers to farmers.

There are four vacancies for the Dairy Australia Board. Two of the four vacant positions are for directors with milk producer skills, one is for a director with agribusiness, innovation and adoption skills, and another for a director with dairy supply chain and product promotion skills.”

Northern Rivers Uniting Church Cluster welcomes you to worship with the Bamawm, Elmore, Rochester and Dingee churches and Respect Tongala. Worship begins at 10am, wi...

Northern neighbour’s imports of Australian dairy growing significantlyAustralia’s number one dairy customer is China but...
03/08/2023

Northern neighbour’s imports of Australian dairy growing significantly

Australia’s number one dairy customer is China but a near northern neighbour is presenting tantalising options for exporters.

Alex Sinnott, The Weekly Times (3 Aug 2023)

Indonesia’s demand for Australian dairy is growing at a cracking pace with hungry consumers looking southward for milk.
The 2022 foot and mouth disease outbreak in Indonesia had a dramatic impact on domestic milk production, Dairy Australia says, and resulted in increased imports.

Domestic dairy production meets about 20 per cent of Indonesia’s requirements with the neighbour to our north rising up the Australian dairy export league table in recent years.

Indonesia imported $US164 million in Australian dairy in 2012, with a 46 per cent jump in the past decade to reach nearly $240 million in 2022.

Dairy Australia trade manager Charles McElhone said Indonesia’s per capita dairy consumption was growing at around 5 to 8 per cent per annum.

“Increased urbanisation, steady middle class growth and a rise in household incomes have caused consumption of dairy products to surge,” he said.

“Global dairy exports to (Indonesia) have grown by almost 25 per cent over the past five years.

“As Indonesia’s population continues to expand and consumers look to incorporate a more westernised diet, demand for dairy products has been increasing.”

Last month, a delegation from the Indonesian Government visited Australia to audit halal certifying bodies.

The delegation met with representatives from Australia’s Department of Foreign Affairs and Trade and visited eight companies in Melbourne, Sydney and Brisbane.

Mr McElhone said Indonesia had a five-year phase-in period for all food into Indonesia being certified halal, with a deadline of October 2024.

Australia and Indonesia are working on a ‘mutual recognition’ agreement that will allow Australian halal certifying agencies to continue to give the tick of approval.

But Mr McElhone said halal certification was only one factor in the road to gaining greater market exposure in Indonesia.

“Exporters looking to capitalise on Indonesia’s demand for dairy are often faced with several challenges,” he said.

“Indonesia’s population is dispersed across multiple islands, and poor infrastructure, particularly around cold storage, can make distribution difficult.

“Consequently, most companies are limited to areas such as Java, including both Jakarta and Surabaya, and Bali to service the tourism and hotel industries.”

Indonesia’s demand for Australian dairy is growing at a cracking pace with hungry consumers looking southward for milk.

Extract: According to the Food and Agriculture Organisation, about 20 per cent of all milk produced globally is either l...
31/07/2023

Extract:

According to the Food and Agriculture Organisation, about 20 per cent of all milk produced globally is either lost or wasted before it reaches consumers.
But one small business has found a way to not only reduce waste but have a big impact on the lives of school-aged children across the state.
"We started supplying the milk to schools as a way to manage waste when we first started because we never wanted to get rid of precious milk that had been bottled," Little Big Dairy Company director Emma Elliott said.
"We found we did have some excess stock as we were getting the handle on sales and how much milk we needed."

About a decade ago, a family-run dairy committed to providing milk for a school breakfast program. It's been fuelling kids ever since.

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Mascot, NSW

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