Growing Opportunities for Australian Red Breeders
Writes John Harle, Genetics Australia.
Article courtesy of the Red Cow Magazine.

Australia is still a dry country. Many dams, big and small, are still storing more air than water. Yet many Red breeders now have a spring in their step. What is behind this? What can red breeders now do to position themselves to gain the most from the opportunities that are now starting to develop?

There is no doubt the last five years have been tough. That is now behind us.
Some positive factors are now starting to emerge. These include: -
1. Better milk prices paid by some factories.
2. An improvement in feed and seasonal conditions in some areas.
3. Better profits being achieved by some red breeders.
4. A growing recognition by many within the Australian dairy industry that modern Red
genetics can contribute to farm profits.

Better Milk Prices Received by Some Farmers
It is very positive to read about “step ups” in payments made by some dairy companies. It is apparent that team members of some milk factories are hard at work throughout the world,
getting export orders at better prices and the benefits are flowing on to the suppliers of their factories. What is positive is that when one milk factory lifts its prices, its competitors have to
do the same or risk losing suppliers and declining or being taken over.

An Improvement in Seasonal and Feed Conditions
Conditions may not be brilliant but in most areas the position is better than the total drought situation of recent years. I encourage all dairy farmers to work with competent nutrition and financial advisors. When income and profit increases, it is important to achieve the most from those hard earned extra dollars. It is important to monitor what is happening on your farm and to check out what others are doing by participating in discussion groups and by attending
worthwhile conferences.
In many areas there is now increasing competition for irrigation water and it is becoming more expensive. It will be interesting in the next 10 years to observe the developments and strategies used by top irrigation farmers to achieve high profits from this resource.

Better Profits achieved by Some Red Breeders – How and Why?
It is stating the obvious to say that with better milk prices, lower feed costs and better seasonal conditions, margins and profits should improve.
I believe there is a lot more to the improvement in profits of Red breeders than these factors alone. An important point is that Aussie Reds are hardy cattle, bred to suit Australian conditions. They are medium sized cattle with good production, good components, produce milk with low cell counts, are easy calving and generally get back in calf easily. Genetically, most of the Aussie Reds have inherited a very strong base of genes from the successful Scandinavian programs. I have always liked the philosophy of the Scandinavian or Nordic approach. I think it is realistic and honest.

Consider as an example: Swedish Red

– Keeps you in the Black.
Production +
Health +
Calving Ease +
Fertility +
Longevity +
= PROFIT.

In a few words – this says what needs to be said. Clearly and concisely, this statement points out important aspects of dairy farm management that we all need to focus on.
We all need systems that are sustainable – but I can only repeat what has already been said many times, “It is hard to be green, if you are in the Red.” I realise the Total Merit Index systems developedoriginally in Nordic countries have been structured to suit their situations and to help their farmers breed profitable cattle. Fortunately, in Australia in recent years the
Australian Dairy Herd Improvement Scheme (ADHIS) has developed Australia’s own total merit index system – The Australian Profit Ranking index or APR. This is designed to help Australian dairy farmers breed profitable cattle right here in Australia.
When farmers are considering which bulls to include in their proven teams I always suggest they give serious consideration to the 10 highest rated red bulls with ABVs and ABV(i)s (Interbull proofs) marketed by Genetics Australia before looking elsewhere. These 20 high profit bulls have an enormous range of strong points and you can use Genescreen (Freecall 1800 039 047) to avoid inbreeding and doubling up of faults.

There are at least Three Ways in which Many Red Breeders are currently Increasing Profits

1. Higher income from higher production of milk, protein
   and fat – achieved by using teams of high APR rated
   proven bulls and Genetics Australia’s progeny test bulls
   ñ both selected for high profit and high profit
   potential.
2. Higher income from selling cull cows in good body
   condition. Red cows to be culled will gain body
   condition with suitable feeding and management and
   this can substantially improve income.
3. Higher income from Red bull calves – either reared on
   the farm as vealers or steers, or sold to other calf
   rearers to be reared on and later sold as vealers or
   steers.

A Growing Recognition by many people in the Australian Dairy Industry that modern Red Genetics can contribute to farm profits
In the last 12 months there have been many new dairy farmers investing in significant amounts of semen from high profit Aussie Red sires.
It is an obvious question, what has given these successful farmers who usually use Holstein-Friesian and Jersey genetics the confidence to invest in high profit Aussie Red genetics?

I believe there are at least two answers – both of which are important and relevant.

1. These farmers have observed that many of the pioneering Aussie Red breeders are succeeding. One important fact is that heifers sired by Aussie Reds and in calf to Aussie Reds calve far more easily (on average) than Holstein heifers in calf to Holsteins. What maybe of greater importance is that in some mixed herds, most cows sired by red bulls have got back in calf relatively easily and that the vast majority of empty cows at the end of the season have been sired by Holsteins. I am not suggesting that this applies in every year in every mixed herd, but it has been reported in some large mixed herds.
2. Initial reports of the large scale trails in California. The fact that organised cross breeding is succeeding there is giving some Australian dairy farmers the confidence to include some Aussie Red genetics in their programs here, whereas previously they used mainly Holstein and Jersey genetics.

Where to From Here? – Looking into the Crystal Ball - Growing your business
My predictions include: -

• Milk factories will continue to pay reasonably good prices for milk with good protein content and low cell counts and will be looking for additional supplies of high quality milk.
• There will be increased profit potential from your red bull calves, either by selling them to rearers or rearing them on your farm and marketing them as vealers or steers.
• Demand for well bred, well-grown Aussie Red heifers with good pedigrees will increase.
• The question remains – what do existing red breeders need to do to get in a position to grow their business and benefit from these opportunities?

Suggestions

1. Good Housekeeping – get the herd and farm into good order.
   Do basic things well. Develop a profitable red herd using feed and management systems appropriate to your situation. Herd record and use the data. Use a team of
   highly rated top proven red sires and support the Genetics Australia Aussie Red progeny test program. Sell your culls to the meatworks or beef breeders NOT to other dairy farmers. Keeping the farm tidy is a good advert as well.
   Rear sufficient heifers and once your herd is up to size and of a high standard, try to have some animals of several age groups available for sale. It will pay to advertise your herd in the area you are targeting for sales of heifers, cows or bull calves for
   rearing or as stud bulls.
   
2. Check your own situation for possible “bottlenecks” or anything that may restrict your plans and profits. As a starter, consider your bails, dairy and calf-rearing facilities. I have talked to a few farmers recently about possibly rearing a few more heifers or rearing a batch of bull calves and it is obvious that the calf rearing
   facilities on some farms are inadequate and are probably long overdue for replacement and improvement.

Summary
I remain convinced there will be opportunities for increased income and profits on many farms with red cows. It is a matter of getting into a position to benefit from opportunities in your area.

BULL UPDATE
I wrote extensively about our Red proven sires in the April/May edition so I will now aim to briefly update the position following the release of the August Australian Breeding Values.
Demand for Red semen is growing significantly. We are selling more semen of locally proven Aussie Red sires in Australia. We are exporting more semen from these bulls to South Africa and we are importing and selling more semen of highly rated bulls from both Denmark and Sweden. Also we are having a very good year as regards demand for our Aussie Red progeny test semen with more doses ordered and an increase in the number of progeny test cooperators. With increasing world demand for semen from the very best proven red sires, it is important we build up Genetics Australia’s Aussie Red progeny test program as quickly
as possible.

Proven Aussie Reds with ABVs
Our most popular Red bulls with ABVs now include SKOLE 3395,

ARBLAWRENCE,TBRUNO and ARBJIM. SKOLE 3395 has now replaced Backgard as the highest ABV rated red bull ever with a publishable ABV. The only negative aspect is that
all the semen of SKOLE has now been sold. However, SKOLE has been a very worthy team leader and we plan to commence marketing a newly proven son of him, sourced from Svensk Avel, K LENS 1678, early next year.

If you missed out on the semen of SKOLE, check into ARBJIM. He is not related but he has a very similar type of proof and with an APR of 138 is the highest rated red sire progeny tested in Australia.

FYN AKS joined this elite team with an ABV in May and more data was added in August. FYN AKS is a high protein, high milk bull with an outcross pedigree and a lot to offer Red breeders. A recent highlight was one of his daughters, PANORAMA CARNATION 30, bred and exhibited by Keith and Annette Dorries from Oakey in Queensland, first winning her class and then later winning the best udder and attachment under 3 year old, and then Junior Champion Illawarra at the 2005 Brisbane Royal Show, against strong competition. I hope this gives more Illawarra breeders the confidence to include FYN AKS in their proven team.

Proven Illawarras with ABVs
We have recently sold the last few doses of RUTHLES, which had been our Red team leader for type.
Our most popular Illawarras continue to be LGBUTTLER, BYGOLD, WILLOWGARD and REDOAK. It is very pleasing that both WILLOWGARD and REDOAK continue to have very good ratings for temperament.
Some progeny of both BYGOLD and LGBUTTLER are continuing to perform very well in the show ring. At the recent 2005 Brisbane Royal another heifer bred by Keith and Annette Dorries, PANORAMA ANGELINE 9, sired by BYGOLD, became the reserve Junior Champion
Illawarra behind their FYN AKS daughter, CARNATION 30. As the final class of the day and topping off a great showing by the Dorries family, PANORAMA ANGELINE 8, sired by
LGBUTTLER, won the Champion Illawarra Udder and Attachment and then became the Champion Illawarra cow. LGBUTTLER has certainly sired many show winners – now winning in the senior classes as well as the Junior classes.

Aussie Reds with ABV(i)s or Interbull Proofs
Team leaders PETERSLUND and ORRARYD 1433 continue to be high demand sires. BOTANS 3829 and our new Danish sire,VEST DELTA, have also found a place in many proven teams. HEDAKER 1398 has an excellent proof for improving daughter fertility and we plan to promote him heavily in the months ahead.
We recently selected a new elite sire from Denmark,ASCONA (NDL TULIP X TBRUNO), and his semen is now available. I plan to promote ASCONA heavily in the coming months. He has a good all-round production proof, high Danish ratings for milking speed and temperament,
and is one of the highest rated, if not the highest rated Red bull proven in Denmark for improving the mammary system.

Summary
We are very proud to offer a great team of Red bulls to Australian dairy farmers. At the same time, I propose a vote of thanks to the many Red progeny test cooperators in Australia,
Denmark and Sweden. I know I am speaking for all three organisations, Genetics Australia, Dansire and Svensk Avel when I thank the progeny test cooperation for their previous
support and mention that we all look forward to their continued and indeed, growing support, in
the future.