agribusiness 2010

76
Agribusiness Chain Volume 10 Number 1 2010 •BEEF•FUTURE FARMING•WATER•SUSTAINABILITY & ENVIRONMENT•RURAL PROPERTY MARKET•EDUCATION & TRAINING•BEST PRACTICE•FARM MACHINERY & EQUIPMENT•CASHFLOW MANAGEMENT•IRRIGATION•LANDSCAPES•WINE & VITICULTURE•RESEARCH•BREEDING•SOILS•SALINITY

Upload: executive-media

Post on 27-Mar-2016

248 views

Category:

Documents


8 download

DESCRIPTION

agribusiness journal

TRANSCRIPT

Page 1: Agribusiness 2010

AgribusinessChainVolume 10 Number 1

2010

•BEEF•FUTURE FARMING•WATER•SUSTAINABILITY & ENVIRONMENT•RURAL PROPERTY MARKET•EDUCATION & TRAINING•BEST PRACTICE•FARMMACHINERY & EQUIPMENT•CASHFLOW MANAGEMENT•IRRIGATION•LANDSCAPES•WINE & VITICULTURE•RESEARCH•BREEDING•SOILS•SALINITY

Page 2: Agribusiness 2010

DEFENDER

M&P LR7065

110 CAB CHASSIS* 130 CAB CHASSIS*

130 CREW CAB CHASSIS* 130 CREW CAB HCPU

110 STATION WAGON 110 CREW CAB PICK UP

WE’RE BACK

110 HARD TOP 110 HIGH CAPACITY PICK UP

1800 858 545 www.landrover.com.au

For over sixty years Land Rover has backed Australia. From the Snowy to the Kimberley, FNQ to Tassie. Now Land Rover

announces the Defender model line up: five 110’s and three 130’s. From two seats to seven. With all new powertrain, anti

stall, and all new levels of comfort, including air conditioning as standard. So maybe it’s time you put Defender back on

your wish list. With an all new line up and tray back options, the timing couldn’t be better.

*Rear tray bodies pictured on 110, 130 Cab Chassis and the 130 Crew Cab Chassis are for illustrative purposes only. These vehicles are supplied as a Cab Chassis, consult your dealer to supply and install a tray prior to registration.

Page 3: Agribusiness 2010

CONTENTS

AGRIBUSINESS CHAIN V10#1 • 1

3 Beef Industry

9 Cattle, Meat + Livestock

10 Future Farming

12 Cashflow Management

14 Agricultural Chemicals

23 Risk Management

26 Best Practice

30 Sustainability + Environment

40 Education + Training

42 Salinity

45 Farm Machinery + Equipment

52 Water

53 Crisis Support

54 Rural Property Market

60 Irrigation

63 Landscapes

64 Innovation

66 Research

67 Breeding

69 Soils

70 Crops

71 Weeds

72 Wine + Viticulture

Published by:

ABN 30 007 224 204

430 William Street, Melbourne VIC 3000Tel: 03 9274 4200 Fax: 03 9329 5295Email: [email protected]: www.executivemedia.com.au

Editor-in-Chief:

Ric NavarroEmail: [email protected]

Advertising Enquiries:

Phil HaratsisTel: 03 9274 4200Email: [email protected]

Printed by: Arena Printing Pty Ltd

Front Cover: Goulburn-Yass Superfine WoolBreeder John Ive, measuring dam salinity onhis property, Talaheni. Read John’s DamSalinity Report Card on page 42.Photo by Graham Tidy, The Canberra Times.

The editor, publisher, printer and their staff and agentsare not responsible for the accuracy or correctness ofthe text of contributions contained in this publicationor for the consequences of any use made of theproducts, and the information referred to in thispublication. The editor, publisher, printer and their staffand agents expressly disclaim all liability of whatsoevernature for any consequences arising from any errorsor omissions contained in this publication whethercaused to a purchaser of this publication or otherwise.The views expressed in the articles and other materialpublished herein do not necessarily reflect the views ofthe editor and publisher or their staff or agents. Theresponsibility for the accuracy of information is that ofthe individual contributors and neither the publisher oreditors can accept responsibility for the accuracy ofinformation which is supplied by others. It is impossiblefor the publisher and editors to ensure that theadvertisements and other material herein comply withthe Trade Practices Act 1974 (Cth). Readers shouldmake their own inquiries in making any decisions, andwhere necessary, seek professional advice.

© 2009 Executive Media. All rights reserved.Reproduction in whole or part, without writtenpermission is strictly prohibited.

VO

LU

ME

10

NU

MB

ER

1AGRIbusiness

Page 4: Agribusiness 2010

2 • AGRIBUSINESS CHAIN V10#1

ST HILDA’S SCHOOLINVITATION

A Top Queensland Performer in NAPLAN and OP 1-15 Results

St Hilda’s Head of School invites prospective families to tour the new $5 million Centre for Scientifi c Learning and Research.

The centre’s creative design, featuring six teaching laboratories, is equipped with the latest information technology and offers students an incredible facility for the study of the Sciences.

To book your tour, contact the Registrar on 07 5577 7232or email [email protected]

St Hilda’s School is an Anglican Diocesan day and boarding school located on a magnifi cent 14-hectare campus in central Southport.

The School has strong traditional links with Australia’s rural communities and is committed to innovative teaching programs catering for the learning needs of girls.

Boarding Bursaries are available for Years 6 to 12.

SHGS1206

Modern spacescreated by St Hilda’sSchool for interactivelearning and researchThe Gold Coast’s St Hilda’sSchool opened its $5 millionCentre for Scientific Learningand Research, a ‘green’designed learning space forcreative teaching.

“Students are no longerpassive in their learning,” saidHead of School, Mr PeterCrawley. “Active students,creating and nurturing theirlearning, inevitably means realresearch is undertaken at school. We needed a building that wouldallow us the freedom to develop this learning style.”

The facility’s six laboratories allow students to engage in long-termexperiments. Every lab connects to the internet, has a set of laptopcomputers and interactive whiteboards that increase student andteacher flexibility. The modern document readers have photographiccapabilities that can capture to microscopic levels. Air conditioning andelectricity are earth�powered.

At the opening, The Archbishop of Brisbane, The Most Reverend DrPhillip Aspinall spoke of the importance of science to the modern world.

St Hilda’s School has converted its old laboratories into classroomsfor interactive learning for the Middle School.

St Hilda’s School is an Anglican Diocesan day and boarding school for girlslocated at Southport on the Gold Coast. The 14-hectare campus is home to 1250girls from Pre-Preparatory to Year 12. Boarding is available for Years 6 to 12.

For more informationMargie McGregor, Marketing Manager (07) 5577 7255.

The Fully Serviced Liquid Supplement For Cattle

Why Supplement with PROLIX?Why Supplement with PROLIX?Why Supplement with PROLIX?

✓ Convenient Paddock Service by Trained Servicemen✓ 500 Litre Feeding Troughs Supplied at no Added Cost✓ Safe Urea Feeding with “Bonded Urea”✓ Consumption Control using “Sweet & Sour” Concept✓ Price Security with Fixed 12 Month Pricing per Litre✓ Protein, Energy, Vitamins & Minerals are all Included

To Find Your Local Prolix Agent

FREECALL 1800 777 097FREECALL 1800 777 097FREECALL 1800 777 097

Available throughout Southern & Central QLD and NSW & Victoria

Page 5: Agribusiness 2010

BEEF INDUSTRY

AGRIBUSINESS CHAIN V10#1 • 3

OFFICES AT THESE LOCATIONS

WHAT DO WE OFFER...

CAREER OPPORTUNITIES

FREE CALL 1800 808 782email: [email protected]

www.rite.com.au

T DO WE OFFWHAAT

T DO WE OFFER...

T TOFFICES AAT

Charters T

n. while you learnrEa

CAREER OPPOR

TIONSTHESE LOCAAT

owersters TTo

TUNITIESCAREER OPPOR

owereet, Charters TTo131 Gill StrMt Isa

eet, Mt Isa, QLD 4825 Phone: 07 4743 4599Shop 3, 12 Marion StrAlice Springs

eet, Alice Springs, NT 0871 Phone: 01/75 Smith Str

FREE CALL 1800 808 782email: info

.rite.com.auwww

owers, QLD 4820 Phone: 07 4787 4933Mt Isa

eet, Mt Isa, QLD 4825 Phone: 07 4743 4599Alice Springs

90 9259 88eet, Alice Springs, NT 0871 Phone: 0

FREE CALL 1800 808 [email protected]

.rite.com.au

owers, QLD 4820 Phone: 07 4787 4933

eet, Mt Isa, QLD 4825 Phone: 07 4743 4599

9

Kinross Wolaroi School, Orange

Coeducational from Pre-Prep to Year 12 with separate boarding sites for boys and girls from Year 7...

www.kws.nsw.edu.au59-67 Bathurst Rd, Orange 2800

Ph: 02 6392 0300 or [email protected]

Carbon Neutral Beef –An Inconvenient TruthBy Andrea Koch

(continues over page)

Page 6: Agribusiness 2010

T his statement sums up the growing rhetoric againstagriculture, and in particular beef and livestock,from many in the world who are concerned about

climate change. Much of the debate emanates from a report published

by the United Nations Food and Agriculture Organisation(UN FAO) in 2006, Livestock’s Long Shadow, whichattributes 18 percent of global green house gas (GHG)emissions to livestock, more than that generated globallyby transport. In Australia, agriculture is attributed withcontributing 16 percent of national GHG emissions, 75percent of this from livestock, mainly in the form ofmethane from ruminants. Methane is about twenty timesstronger than carbon dioxide in its greenhouse effect, sowhen methane emissions are converted to “carbondioxide equivalent” (CO2e) as a common denominatorfor measuring GHG emissions, methane tends to tip thescales.

As advances are made in strategies to reduce fossilfuel based energy and transport, the next big focus forclimate change mitigation is on the food system, withbeef being singled out for particular attention. Anti-meatcampaigns are multiplying, with a multitude of moviessuch as Meat the Truth, websites and books suggestingthat we humans must drastically reduce or even stopeating meat altogether, in order to mitigate seriousclimate change.

From the Australian livestock farmer’s perspective, thismust seem ludicrous, yet another assault on farmerswho are already struggling with drought, decreasedterms of trade, increased input costs, succession issuesand in some cases, banks hovering with threats offoreclosure.

Whether you agree with the notion of human inducedclimate change or not, that fact is that the world is nowslowly grinding its way towards economies which relyless on the emission of carbon dioxide and othergreenhouse gases to provide energy – be it fuel,electricity, or food. The agriculture and food productionsectors will be required to make adjustments in thistransition, just as the energy and transport sectors are.

The proposed Australian Carbon Pollution ReductionScheme (CPRS) is not adding much comfort to thefarming sector, with the treatment of agricultureremaining uncertain. The Australian government hasstated that it will wait until 2013 before deciding whether

to include the agricultural sector as an emitting industryunder the scheme. So far, almost all of the debate hasfocused on the emissions side of the scale, that is therole of agriculture in producing GHG emissions, and thepoint in the market chain at which entities are required tohold permits to emit GHGs.

The future of agriculture in a GHG obsessed worlddoes not look bright. As it currently stands, carbontrading is all downside for the Australian farm sector.

There is hope however, which has been ignited and isnow being flamed by the Carbon Farming movement inAustralia and internationally. The hope lies in the otherside of the scorecard which is the role of agriculture inreducing GHG emissions. Agricultural systems and landmanagement practices for crops and pastures whichlead to the sequestration of carbon from the atmosphereinto long lived soil organic matter pools are slowly beingrecognised as a major “sink” for carbon. What is slowlyemerging is that the farming system used makes all thedifference between food and fibre which is “carbonnegative” versus food and fibre which is “carbon neutral”,or even “carbon positive”. These practices, which can bereferred to collectively as “carbon farming” are theantithesis of the high GHG emitting, industrial agriculturalsystems which are the basis of the 2006 UN FAO report.

As these systems slowly gain recognition, and thepotential of soil as a significant sink for the existinglegacy load of CO2 in the atmosphere, interest fromfarmers is mounting. “Growing” soil carbon while theygrow food and fibre may lead to an additional revenuestream in the form of carbon credits. Instead of justbearing the cost of GHG emissions, farms which aredemonstrably sequestering soil carbon will generatetradeable credits in the carbon trading market. Whetheror not these soil carbon credits are tradeable under theCPRS will depend entirely on whether, after 2013, theagricultural sector is permitted to generate and trade insuch credits. Until that happens, soil carbon creditsremain tradeable in Australia on the voluntary market,which is not insignificant.

So what is carbon farming? It is not a silver bullet, buta range of farm land management practices which leadto the net sequestration of carbon out of the atmosphereand into the soil. These practices have in common aseries of basic principles, including:• Maintenance of 100 percent ground cover

BEEF INDUSTRY

4 • AGRIBUSINESS CHAIN V10#1

“A vegetarian in a Hummerproduces fewer carbon emissionsthan a meat eater in a Toyota Prius”A child, from the film Meat the Truth.

Page 7: Agribusiness 2010

GRACEMERE SALEYARDSweigh up the difference

GRACEMERE SALEYARDSFor fifty-six years the Gracemere Saleyards has been used as a marketing vehicle by cattle

producers to trade livestock whether they be prime or store cattle to a bevy of buyers

competing in an open market. This time honoured tradition has witnessed little change other

than the introduction of liveweight selling in the late 1970s. Liveweight selling saw the

imposition of curfews with carriers having to deliver stock before the 9pm deadline [twelve

hours prior to the commencement of sale].

Improved facilities have seen enhanced service delivery with new selling pens,

unloading/loading ramps [single & double deck], truck-wash, clearing dip, high-mast

lighting, selling ring, agent offices, buyers lounge, cafeteria, toilets, conference facilities,

undercover arena, stables, small stock facilities, truck parking and car parks, reticulated

water and sewerage.

What does the future hold for producers? In the past two decades many producers have

sought to maximize their returns by selling direct bypassing saleyards. This has seen the

demise of a number of saleyards and the development of new facilities in many of the

regional centres. Issues of animal welfare, environmental controls, and safety all add to the

changes incorporated in a modern selling centre and it is apparent these changes will

continue as the industry develops. The modern producer is taking advantage of technology

whilst developing skills in better managing his or her business. Saleyards are no different,

embrace change, use it or lose it.

Page 8: Agribusiness 2010

BEEF INDUSTRY

6 • AGRIBUSINESS CHAIN V10#1

• Reduced soil disturbance such as zero till• Increased soil biota, by reducing application of

chemical pesticides, herbicides and fungicides. • Utilisation of deep rooted perennials as grazing

fodder, or in conjunction with cropping• Increased biodiversity, both in flora and fauna• Increased farm and soil hydrology

Carbon farming covers a fairly broad church ofsystems and approaches and farmers who utilise thesesystems have experimented with various aspects of oneor more of these methods to work out what suits theirfarm the best. What is common to all of them however, isthe increased levels of Soil Organic Carbon (SOC) thatare generated.

There are a number of recognised land managementsystems which come under the banner of carbonfarming, and which utilise these principles in variousways. These include:• A range of grazing management systems and

approaches which regulate the time and intensity ofstock access to pasture, followed by long periods of

time for plant recovery• Pasture cropping, a zero till, direct drill system of

planting annual crops into perennial pastures• No kill cropping, a system which utilises Coulter type

implements to sow into existing plant and litter cover• Water management systems which manage the

overall hydrology of the farm, including naturalsequence farming and Yeoman’s Keyline System

• Biological Farming, a range of natural products usedto stimulate the growth of soil biota

• Composting• Restoration of grassy woodlands by planting trees as

supplemental livestock fodderThe good news is that Australia has some amazing

“Carbon Cockies” who are already putting the theory intopractice, with incredible results. Farmers across Australiaare now utilising these systems across a wide range offarm types including beef, sheep, cropping, mixedcropping and livestock and horticulture. For some ofthese Carbon Cockies the key issue has been landregeneration, for others drought proofing has been theprime motivator to make the change to these systemswhich work more closely with the ecology of the land.The benefits to these farmers extend beyond justincreasing soil carbon.

WA farmer Bob Wilson is a member of the Evergreen

Group of farmers who are focusing on growingperennials to combat erosion and salinity. Wilson has hadgreat success with growing deep rooted evergreenperennial tagasaste in the sandy soil of his farm in theWest Midlands region, 400 km north of Perth. Farms inthis region have suffered with significant salinity anderosion problems under “traditional” farming methods.Using tagasaste as fodder for cattle, and also as a windbreak has reduced erosion to zero and helpedsignificantly with managing salinity issues. Wilson’s farmhas maintained an income in the significantly drier yearsthat the west has experienced in recent times (therecords show that climate change has already hit thehardest in that region of Australia). By implementingcarbon farming methods, Wilson and other farmers usingthis approach have actually reversed the grave threat ofdesertification of this particular region by building andmaintaining soil health and preventing sandy topsoil fromblowing into the sea.

In Western NSW, farmers Col Seis and Bruce Maynardhave spent the past twenty years developing innovative

cropping and grazing systems which utilise deep rootedperennials. Seis practices “pasture cropping”,maintaining native perennials and cropping directly intothe thick litter that they produce. He has discovered thatperennial and annual species grow happily together.Sheep are also grazed in this system. His chemicalinputs are dramatically reduced, which lowers the overallcost of production. Seis has been measuring soil carbonon his property for a number of years, and notes that inaddition to increasing soil carbon, the ecological functionof the soil has improved, which has led to increased soilwater holding capacity and improved nutrient availability.

Maynard has taken a similar approach. His “no kill”farming system also utilises native perennials, buteliminates chemical and fertiliser inputs and usestyneless Coulter type implements to sow dry in order tominimise land disturbance. Input costs, including fuel, aresignificantly reduced. Diesel use for example has beenreduced by 80 percent. Maynard’s system also utilisestime control grazing, and he is finding that increasedplant biodiversity supplies secondary compounds tocattle which can assist rumen function and reducemethane production.

Tim Wright from the Northern Tablelands in NSW is apioneer of cell grazing, and has spent seventeen yearsdrought proofing his farm by increasing stock levels but

Images of Michael and Louisa Kiely on their farm in Gulgong, NSW

Page 9: Agribusiness 2010

AGRIBUSINESS CHAIN V10#1 • 7

The Port of Brisbane is Australia’s premier beef handling port delivering product to the Asian market quicker than its Southern counterparts.

The port provides infrastructure to store and ship chilled and frozen meat worldwide to the major destinations of Japan, the

USA east coast and South Korea.

Brisbane handles 56% of the country’s containerised market, of which 35% is chilled and 65% is frozen. In the past 12 months

to June 2009, shipments of meat through the Port of Brisbane totalled 51,554 teus up 2% compared to the previous year.

Over 30 shipping lines are actively involved with the export of beef through the Port of Brisbane, and the port’s two container

stevedores, DP World Brisbane and Patrick Terminals, offer over 2,350 reefer points. Patrick is increasing its reefer plug

points from 1,124 - 1,348 to accommodate future growth in the trade.

The Brisbane Multimodal Terminal the logistical interface between rail, road and sea offers exporters an effi cient and reliable

supply chain network, with the capacity to store over 80 containers at any one time.

The two new emerging markets of East Asia and South East Asia continue to drive volumes, compensating for the decrease

in volume to the more traditional market of South Korea. Queensland, as the nations largest beef producer with 12.2 million

head of cattle in June 2008, is a major driving force in Australia’s export beef market.

The Port of Brisbane Corporation is optimistic about long-term growth, and is committed to the continued investment in

port infrastructure that will help sustain Australia’s trade well into the 21st century.

If you’ve got beef to export, why not speak to Australia’s leading beef port? At the Port of Brisbane, we

provide specialist advice and logistical assistance to all customers of our world-class, purpose-built

facilities. For more information please contact our Business Development Manager, Andrew Brinkworth.

P: +61 7 3258 4728 E: [email protected]

We’re built for beef.

ACN 124 048 522portbris.com.au

Page 10: Agribusiness 2010

BEEF INDUSTRY

8 • AGRIBUSINESS CHAIN V10#1

grazing them intensely for short periods of time. Hisaverage paddock size has gone from 240 acres to 32acres. Wright argues that traditional European basedapproaches to grazing do not provide enough time forsoil and pastures to recover from droughts. By allowingpastures sufficient recovery time following intensegrazing, the hydrology of the soil is improved, leading toincreased water holding capacity which is maintainedduring dry periods.

Ann Williams is a member of the Conservation Farmingand No Till Association (CANFA). Williams hassignificantly increased carbon and nematode levels in thesoil on her Central West NSW farm, by implementing NoTill in combination with composts. She has been soimpressed by the improvements to her soil and resultingyields that she is now undertaking a master’s researchprogram at the University of New England to investigatethe biological properties and soil amendments in the NoTill cropping system.

These farmers and others have showcased theirapproaches at the annual Carbon Farming conferences,held in Orange NSW over the past three years. Theseconferences, convened by Carbon Coalition leadersMichael and Louisa Kiely, are a gathering of farmers,scientists from CSIRO and universities across thecountry, government agriculture and climate changedepartments, Catchment Management Authorities andvendors who have cottoned on to the potential of carbonfarming, and are now working collectively to ensure thatagriculture does not get left behind in the great climatechange debate. The Kielys have worked tirelessly to getsoil carbon sequestration onto government and scientificagendas and have networked internationally to ensurethat Australia is leading the world in the development andrecognition of carbon farming practices.

Of major note at the 2009 conference was theannouncement that it is now easier for carbon farmers togenerate tradeable credits on the voluntary carbontrading market in Australia. Prime Carbon operates thescheme, providing baseline benchmarking of carbon

levels on registered farms, and conducting ongoingmeasurement and audits to determine increases in soilcarbon levels. Credits are collectively marketed by PrimeCarbon to companies that are seeking to offset theirGHG emissions. Prime Carbon envisages that by 2013,one million hectares of Australian farming land will beconverted to carbon farming practices. It aims to providethe benchmark for regionally focused carbon exchangeprograms in Australia.

SA farmer Errol Koch who has been farming in upperSouth Australia for over fifty years, attended the CarbonFarming conference in 2008. He is not too sure about allthis “climate change business”, but he came away fromthe conference filled with hope. After ten years of dryseasons and sparse spring rains, with neighbours whoare on a knife’s edge with bank finance and farmers inthe region on suicide watch, it was a wonderful thing forhim to listen to the “Carbon Cockies” get up and talk,farmer after farmer, about how excited they are to befarming. They shared their stories about the rejuvenationof their land, the drought proofing of their farms, and theincreased profitability of their businesses.

Carbon arming is the reply to the anti-beef andagriculture rhetoric. The goods news is that carbonfarming systems are not only good for the climate, theyare also good for Australian farmers, and that is goodnews indeed.

For more information:http://www.carbonfarmersofaustralia.com.auhttp://www.carboncoalition.com.au/http://www.canfa.com.au/http://www.pasturecropnokillcrop.comhttp://www.evergreen.asn.au/http://www.primecarbon.com.au/

Written by Andrea Koch, Sustainable Food Advisor, Sydney [email protected] Koch is a writer, educator and adviser with a specialist focus on sustainable food. She works with government, business and consumer groups on finding sustainable solutions to issues of food security, urban food supplies and sustainable agriculture.  Andrea can be contacted at [email protected], or on 0408 030 081.

Page 11: Agribusiness 2010

How resilient areAustralianlivestockproducers?This extraordinary decade has

thrown challenge after challenge, yet

Australian livestock producers have

responded to them all with gusto.

The 8-year drought (including two one-in-one

hundred year events), BSE and food safety

scares, volatile currency markets and now the

global credit crisis and recession have all been

extraordinary on their own, let alone in the same decade.

Yet Australian producers have expanded beef and

lamb production since 2000 by making changes such as

increased specialisation in breeding, growing or finishing;

building feedlots; adopting drought strategies; and

making feeding and breeding changes and general cost

savings.

Market signals have played a major role in ushering in

these changes, with generally strong prices on offer for

the right article. Unlike previous severe droughts and

market downturns, prices did not fall below the cost of

marketing stock and producers generally ensured that

stock were turned off before it was too late.

Meat & Livestock Australia’s (MLA’s) market

information is designed to assist producers (and those

businesses upstream and downstream) in making

successful strategic production, marketing and

investment decisions. MLA Market Information can be a

useful input into vital decision making.

Just visit www.mla.com.au/marketinformation, email

[email protected] or phone 1800 675 717.

Producing, buying or selling livestock?

Stay on top of the latest

livestock & red meat market

news, analysis & forecasts in

Australia & around the world.

Read MLA’s publications for the latest news and statistics – Meat & Livestock Weekly, Cattle & Sheep Industry Projections, Red Meat Market Reports, and many more.

Get up-to-the-minute information on MLA’s website www.mla.com.au

77% use MLA Market Information to stay informed

56% use it to help make buying/selling decisions

96% find it valuable to their business

97% rate it as accurate and timely

Can you afford not to be informed? More informationPhone: +61 2 9463 9301Email: [email protected]: www.mla.com.au

* results from MLA Market Information subscriber survey – conducted in August 2009

red meat market news

daily & weekly livestock market reports from the National Livestock Reporting Service

on-line access to one of the best red meat databases in the world & ABARE farm data

overseas market information & detailed export data.

Talk with MLA’s specialised market analysts

CATTLE, MEAT + LIVESTOCK

AGRIBUSINESS CHAIN V10#1 • 9

Page 12: Agribusiness 2010

FUTURE FARMING

10 • AGRIBUSINESS CHAIN V10#1

D espite several external elements overwhelming theAustralian agricultural industry, the sector has managedto boost its production. The gross total value of

Australian agricultural manufacture increased 4.4% from 2007–08 to $45.2 billion in 2008–09. The increase was attributed toimproved seasonal conditions in some areas, but varied fromcommodity to commodity and region to region.

Australian farms directly employed 317,730 people fromNovember 2008, though a decade of drought has resulted inapproximately 90,000 job losses. As the nation’s largest foodand fibre exporting territory, Victoria generates 26 per cent ofthe nation’s total goods produced, valued at $9 billion perannum.

According to the City of Greater Geelong’s Bulletin report,the estimated annual total output for the Barwon region’sAgriculture, Forestry and Fishing sector is $794 million.

Ensuring our agricultural future remains robust means we willneed to replenish approximately one-third of farmers within thenext ten years due to an ageing workforce, according toVictorian Farmers Federation (VFF) president Andrew Broad. MrBroad says the primary focus for the VFF is ensuring farms arebrought back to full production, lobbying the government forassistance for drought-ravaged farmers and farming safety,rather than focusing on re-skilling those leaving the sector.

“We’re not in the space where we’re re-training; we’re in the

space of giving farmers skills and market knowledge andunderstanding.”

While it hasn’t been the VFF’s core role to assist withadvancing technologically, the VFF has worked closely inpartnership with Geelong’s Southern Farming Systems. “We’veprovided a lot of market intelligence, so we’re helping peopleunderstand the market and how to grow their business andincrease their profitability,” Mr Broad said.

The VFF believes there needs to be a significant effort inregional development to diversify regional economies not just inGeelong and Ballarat, but in towns like Horsham, Kerang,Ouyen and others, to encourage investment in farming.

Victorian farmers have proved resourceful in the face ofprotracted drought and

economic downturn by adopting innovative crop productionmethods. In particular, the grain sector has developed animproved no-till technology, better spray management and hastrained in how to calendar sow. Dairy sector farmers have alsodiscovered how to milk on minimal water allocations, and forthe land sector, farmers have learned how to grain feedlivestock.

“It’s been really quite dramatic, the ability of the farmer toadapt in a dry environment,” said Mr Broad, who reports thatthe procedure of altering crop-sowing dates has also provedeffective.

After a decade of drought, incredible pressure from an aggressiveinternational marketplace and years of uncertain income, the Australianfarming industry may yet have reason to be optimistic. Recent rains andnew drought funding provisions may herald that the worst has passed,but a decade of job losses and an ageing workforce means the sectormust undergo a massive recruitment program if it is to survive.

Future of farminga question of scale

Page 13: Agribusiness 2010

FUTURE FARMING

AGRIBUSINESS CHAIN V10#1 • 11

“We farm almost completely differently on our farms, from agrain’s perspective, than what we did ten years ago. In the pastwe used to wait, we used to get earlier rains and so we’d bemore reliant on clover-based pastures and grass-basedpastures; now we actually sow a batch of oats-type pastures.We’re on no-till, whereas it used to be full cultivation. We’re onwider row spacings, we’re using press wheels, and we’re usingGPS technology, higher break-out times, differing fertilisers, GM(genetic modification) technology and differing marketingtechniques,” he said.

In fact Mr Broad reports that it’s an understatement to saythere have been some superior advancements made over thelast five years within the agricultural industry.

“If you compare agriculture with any other industry, we’reactually the leaders at adapting to change and new technology.We’re by no means dragging our feet; our productivity gainsare unparallel to any other industry across the country. Ourbiggest concern at the moment is we’ve had a run of dry years.We’ve now got a reasonable low price and we want to maintainthat youth in our industry because some of the greatestproductivity gains are achieved by farmers who are thirty-fiveand under.”

A primary focus for the VFF is attracting new blood toagriculture, which is a constant challenge.

“In my area there are not a lot of young farmers farming, butthen you step out from my area a little bit and there’s plenty. Soit sort of peaks and troughs, but then we’ve got to look a littlebit more at how we support our younger farmers.”

Research agronomist, Rohan Wardle with Southern FarmingSystems, who is predominantly involved in the grain sector,delivers a more dire prediction: “I think the last ten years ofdrought has pushed a lot of youth away from the industry,which we’ll probably never get back. We need some goodhousing, because they often pretty much get a dog box. Andstarting off on a pretty crap wage is always a way of keeping[young workers] for one day and they’re gone the next.”

Farming is struggling to compete with the mining industry,which unlike the rural industries experienced boomingconditions and attractively high wages over the past decade.

Attracting and retaining young farmers is not simply aboutnumbers. With youth comes new ideas and a greater interest innew technologies, which brings productivity gains like thosethe industry has recorded over the past year.“Variable rate technologies and all that kind of thing is certainlydriving a lot of productivity gains and ways of bringing youthfulpeople back into the industry for sure,” Mr Wardle said.

Though from a financial standpoint, he believes governmentshould fund the majority of training and luring people to workon farms to guarantee the quality of our future food supplies.

“The problem is that fluctuating grain prices and fluctuatingreturns makes farmers hard to invest in; in training and in staff,”said Mr Wardle. “They can afford them this year, but they can’tafford them next year; they’ve invested all these dollars intraining and it walks out the door.”

Fortunately, he says hi-tech advancements have been alifeline for some.

“Technology in the cropping industry has certainly pulled a lotof guys out of wool and into cropping because of GPS andyield mapping and all these things that they can automaticallyget a response to. It’s like ‘righty-oh, I know what my crop’sdoing; I can see what’s happening in my paddock, I know howI can improve that next year, pretty much,’ so they certainly getthat automatic response which is fantastic.”

However, Mr Wardle said farmers aren’t devising new waysto live off the land.

“You’re either a dairy farmer or a sheep farmer or you’regrowing crops or you’re doing both. But other than that…it’spretty limited. I think you’ll find that a wool-classer will be awool-classer for a while and might do a bit of shearing andthen they might go home and grow a few crops, but other than

that, that’d be as far as it goes.”Meanwhile president of the Royal Geelong Agricultural and

Pastoral Society (RGAPS), David Heath, offers a localstandpoint. He says Geelong agriculture operates slightlydifferently in that most of the farming land around the city is runby part-time farmers who work in town. Their holdings aresmaller areas and pressure from people buying rural land forlifestyle reasons and suchlike has meant full-time farmers in theregion are far fewer.

Yet, says Mr Heath, many of those farmers are also farmingon a far broader scale than before, often share-farming orcontracting or running many of those areas purchased forlifestyle purposes.

“Geelong isn’t a big farming community. For starters, there’sonly farm land to the north. We haven’t got the double mass.Even Ballarat is a far bigger agricultural town than Geelong.And we have so many other industries going on that agriculturedisappears out of the perspective a bit,” Mr Heath said.

While there’s been debate as to what extent Australia’s $4.6billion dairy industry — Australia’s third largest agriculturalsector — is in crisis, Mr Heath says the dairy industry ispractically non-existent in Geelong due to drought and fiscaldecline.

“It’s contracted back to the wetter country, going furthersouth. So there’s virtually no dairying in the Geelong region;you’ve gotta go to the other side of Winchelsea, around Colacto find it — there are a few dairy operations but not manyabout.

“With the last 10 or 12 years that we’ve had on top of theeconomic conditions we’ve had this year for dairying, manypeople have dropped out of dairying and are running moreextensive-type cattle/sheep operations or croppingoperations,” he said.

Mr Heath also agrees that the ageing population is a concernand points to the difficulty of drawing young people to thestock industries. Evidence of the decline can be seen – in astate that used to boast a thriving wool industry, there is noteven one full-time person person teaching wool classing inVictoria.

“Some of the trade-type services like wool classers are goingto be difficult attracting people to. It’s also difficult to attractgood young workers for diesel machinery apprenticeships,”said Mr Heath. “The one bit where I do get a little bit worried isabout wool classers and where they’ll all come from. But it’sbeen talked about. All my working life I’ve heard this: ‘I don’tknow where we’re going to get the shearers for the sheep,’ butI’ve yet to see sheep left with wool on them.”

Overall, as operations grow larger and more efficient,opportunities reduce as a consequence, though Mr Heathbelieves abundant good training is available within agriculture.“We still have a very vital, vibrant agricultural sector despiteeverything and with far less people in it. And they are generallyfar better trained and working just as hard as they always did,achieving far more with far larger equipment,” he says. “There’sless stock numbers and far more cropping, which has beenone of the declines in people working in the industry becauseyou need more labour when you’re working with stock thanyou do with crops, and the increase in area under crop anddecrease in area under livestock has had a fair balance onthat.”

Mr Heath says that as no group adopts technology fasterthan farmers, they can use technology rather than labour to getthe job done. He also refutes that access to technology isinadequate, as suggested by a recent parliamentary report.

“It [the technology] mostly comes from private resource andwe pay dearly for it,” Mr Heath said. “We use all thosetechnologies. I work with a cropping operation house. All ourwork is on satellite guidance; agronomists are doing all thework. It’s quite phenomenal the scale we work on.”

Terry Broun Jnr

Page 14: Agribusiness 2010

CASHFLOW MANAGEMENT

The availability of cash is critical for businesssuccess through good and bad times. Being outof pocket can have a domino effect on other

parts of the business.According to Khan Horne, General Manager of

Agribusiness at NAB, businesses need to tighten theirbelts when conditions are tough to squeeze cash outof the business while still remaining profitable.

“If a business has cash available there may beattractive investment opportunities that can be fullymaximised in the short or long term,” he says. “If themoney will be needed in a few months for planting orrestocking, there is no point locking it up long term,but that doesn’t mean it can’t be put to good use.”

High interest Business Cash Maximiser accountscan be a good short-term solution, as can termdeposits.

Farm Management Deposits are a good option ifcash is available over a longer period.

The right leversWhen looking to maximise your cashflow, noteverything can be changed at once. As such, careneeds to be taken in considering what levers can bepulled to improve it in the short, medium and longterm.

Mr Horne offers five tips to help businessesmanage their cashflow:

1. Understand the difference between cash inthe bank and cashflow.

Cash in the bank is only a ‘point in time’measurement, before paying creditors, overheadsand fixed costs. Cashflow is more dynamic, andtakes into account income being received andexpenses being paid out over a period of time.

2. Control and reduce operating expenses. Make sure you fully understand the true cost and

profitability of everything you do, and how it aligns toyour business plan. Talk to staff to get their buy-inand ask them to help you to identify and reducecosts.

3. Release cash invested in fixed assets. Capital investment in production technology will

help to boost business efficiency over the long term.

However, prioritise purchases and look at how theseassets are funded, as there may be alternatives suchas leasing.

4. Manage risk to protect profits and createcertainty.

Protecting your future cashflow from the effects ofexternal influences can be a smart move. Riskmanagement solutions can include fixing interest,hedging exchange rates and taking a forward positionon prices. The right insurance – for people as well asbuildings and equipment – is also important.

5. Use your networks. See what the neighbours are doing, attend

courses, and keep learning. It’s also a good time tobe talking to your team of experts -your accountant,financial adviser and your local NAB

Agribusiness Banker - about your business, whereyou want to take it and what the economicenvironment means for you.

The biggest challengeCashflow was chosen as the biggest challenge facingagribusinesses in a survey conducted by NAB andGalaxy Research in April 2009, with 56% of 914agribusiness respondents (owners of managers of abusiness employing 1-29 people) selecting it as a‘challenge’, and 37% nominating it the ‘biggestchallenge’.

Agribusiness respondents also listed drought andclimate change as challenges to be faced in thefuture.

NAB has been helping farmers and otherbusinesses manage cashflow for more than 150years. NAB’s agribusiness bankers are specialistswho understand the cyclical nature of the industryand the challenges being faced.

NAB Agribusiness can provide assistance andinsights to help review the current situation of youragribusiness and plan for the future.

For more information, contact your local NABagribusiness banker, call 13 10 12 or visitnab.com.au/agribusiness.

Cashflow a key challengefor agribusinessDrought and climate change may get all the press, but cashflow managementlooms large among the major challenges facing agribusinesses.

Important Notice: NAB has not taken into account your objectives, financial situation or needs and recommends that you consider whether anyadvice in this article is appropriate for your circumstances.

About NAB AgribusinessNational Australia Bank (NAB) Agribusiness employs more than 580 agribusiness banking specialists in 110 metropolitan and regional locationsAustralia-wide. The Agribusiness team use their local and industry knowledge to better understand the unique environmental and economic needsof farmers and businesses beyond the farm gate - whether they provide inputs into agriculture or process, distribute or market primary produce.NAB’s flexible range of agribusiness products and services is delivered by listening to and working with customers, to tailor the best packages andadvice for their businesses. For further information please visit www.nab.com.au/agribusiness.

12 • AGRIBUSINESS CHAIN V10#1

Page 15: Agribusiness 2010
Page 16: Agribusiness 2010

AGRICULTURAL CHEMICALS

14 • AGRIBUSINESS CHAIN V10#1

It is estimated that 1 in 5 Australianhouseholds have a used automotivebattery on their property, which poses

a serious environmental and health risk,particularly when we consider that 98%of a used lead acid battery is recyclable

CenturyYuasa, Australia’s oldest andmost recognised automotive batterymanufacturer has launched a NationalBattery recycling program designed tohelp reduce the impact of scrap batteries

and help protect the environment forfuture generations.

Steve Hermann, General Manager ofCenturyYuasa’s Automotive division says:

“As a responsible business it isimportant that we manage the ‘cradle tograve’ process of manufacture,distribution and responsible disposal ofused batteries.

In many cases we have found thatpeople are simply unaware of how orwhere to dispose of their used batteriescorrectly and as a result we often seebatteries discarded with householdwaste, at local refuse sites or dumped onroad sides.

Our scheme provides motorists,homeowners and businesses with theoutlet and resources to dispose of andrecycle their used batteries correctly.Through a national network ofCenturyYuasa approved battery recyclingcentres people are encouraged to returntheir used automotive batteries forrecycling and responsible disposal.”

Help create a cleaner Australiawith Century BatteriesUsed lead acid batteries contain hazardous materials which if not handled correctlycould prove harmful to humans, wildlife and the local environment.

For more information on the Century Yuasa recycling program or to find your nearestapproved Battery Recycling Centre call Century 1300 650 702 or go to:www.recyclemybattery.com.au

Page 17: Agribusiness 2010

FUTURE FARMING

AGRIBUSINESS CHAIN V10#1 • 15

The Farmerwants a futureSpecial Feature: Adapting to a Changing Climate

Page 18: Agribusiness 2010

FUTURE FARMING

16 • AGRIBUSINESS CHAIN V10#1

Plenty to think aboutMost farmers are already weather obsessed. They have to be.Their livelihood depends on the right mix of temperatures andrainfall. Timing is everything. There’s talk of ‘good years’ and‘bad years’ but not much talk of a ‘normal’ year anymore — ifthere ever was such a thing.

Because of this long history of dealing with changeableweather, farmers have developed a great deal of skill inmanaging variations in climate. But what if some of thesechanges become permanent? What does a hotter, drier, morevariable climate mean for Australia’s $33 billion agriculturalindustry?

According to one of Australia’s leading scientific researchers,climate change is already having an impact on the way we farmin this country.

“Looking at average temperatures across Australia, a coldyear now is a warm to hot year in the time of our grandparents.At current trends of temperature increase, it’s probably onlynine or 10 years away before the coldest year we experiencewill be hotter than the hottest year ever experienced by ourgrandparents,” says Dr Mark Howden from the CSIRO ClimateAdaptation Flagship.

“When you think of it like that, it’s pretty inconceivable thatwe could keep doing the same things exactly the way we usedto do,” Dr Howden says.

It’s not hard to find examples of how Australian farming isalready responding to changes in climate. There’s cropping inplaces previously considered too wet for crops, and farmersmoving away from irrigated crops into livestock. There’s alsothe example of a peanut company which expanded itsoperations into the Northern Territory where it’s wetter.

“We’re already seeing responses both at an individual leveland at a company level,” Dr Howden says. “Some farmerswould say explicitly they’re not doing this because of climatechange and that they don’t believe in climate change, butnevertheless they’re having to change their practices. In asense it by-passes the issue of what’s causing these variationsin climate. Farmers are going to have to change theirmanagement anyway.”

In 2007, Dr Howden shared a Nobel Peace Prize for hiscontribution to the Intergovernmental Panel on ClimateChange, which identified Australian agriculture as particularlyvulnerable to changes in climate.

The panel’s report warned of potential negative impacts onthe amount of produce, quality of produce and reliability ofproduction, and on the natural resource base on whichagriculture depends.

These conclusions are based on projections of hotter, drierconditions across much of Australia, including temperatureincreases between 0.6 to 1.5 degrees Celsius by 2030 andbetween one to five degrees Celsius by 2070.

These projections, on the CSIRO website, say rainfall oversouthern Australia is expected to decrease by 10 per cent,while northern area may see changes between minus-10 andplus-five per cent. This rainfall is expected to be more intenseover most areas in summer and in autumn, and in northernareas in winter and spring.

In its submission to the House of Representatives inquiry intoagriculture and climate change, CSIRO says primary industriesneed to anticipate these changes, be prepared for uncertainty,and develop and implement adaptation strategies now.

Calling for an unprecedented level of forward planning, theCSIRO submission tells the Primary Industries Committee thatthe impact of climate change and the need to adapt arealready unavoidable. In some cases, large scaletransformational responses will be necessary “which mayinvolve the translocation of entire industries”.

Chairing the inquiry is Dick Adams (Member for Lyons,Tasmania) from the island state famous for its fresh produce,wine and cheese. He’s confident the inquiry will throw somelight on the direction needed to minimise the risks andmaximise the opportunities.

“Farming has a long history of changing in this country but,given climate change, this committee wants to look at the waywe use land, soil and water in a new way so we understandwhat climate change means to agriculture. We’re keen to seewhat people are already doing, what people think we should bedoing and what direction we should be going,” Mr Adamssays.

The future offarming in Australia,and our access tothe freshest food atthe best price, willdepend on how wellfarmers adapt to thechanging conditionsthey face on land.Story: Georgie Oakeshott and Geoffrey Maslen

(continued on page 18)

Page 19: Agribusiness 2010

0252

9

Incredible engineering

Wide Span Sheds engineering sets the standard

in pre-engineered cold form steel buildings in

Australia.

Our purlin and girts are supplied with added over-

lap for the strongest connections and our unique

rafter over haunch system is industry recognised

for its efficiency.

Our built-up portal buildings are engineered to

peak efficiency using the latest international

design codes coupled with innovative design

and engineering techniques.

Fantastic value Wide Span Sheds robust computer system allows

you to instantly design and customise your new

shed, warehouse, workshop, equine arena, sta-

bles, barn or building while in our pre-engineered

and efficient design environment.

This ensure economy, efficiency and value without

the need to compromise on your design or inclu-

sions.

1300 94 33 77

www.sheds.com.au1300 WIDE SPAN

Discover Wide Span ShedsAustralian owned and operated, Wide Span Sheds

is an industry-respected national supplier of

pre-engineered steel buildings for domestic, rural,

equestrian, commercial and industrial purposes.

Wide Span Sheds structures include machinery

and storage sheds, barns, stables and animal

quarters, garages, workshops and homes as well

as a range of commercial and industrial buildings.

Genuine qualityWe pride ourselves on the quality of our steel

building kits. Wide span Sheds utilise BlueScope

Steel exclusively in our cold form steel buildings

with structural members comprising GALVASPAN®

450+ MPa cold-rolled sections and high tensile

sheeting in a choice of profiles in ZINCALUME®

and COLORBOND® options.

Wide Span Industrial uses a built-up portal system

for larger, more complex structures. This offers

near limitless design options for your next large

scale steel building project.

GALVASPAN®, COLORBOND® and ZINCALUME® are registered trademarks of BlueScope Steel Limited.

Delivery and constructionOur cold form steel building kits are supplied

from over 20 locations in Australia with delivery

taking 4-6 weeks from start of manufacturing. Our

built-up portal structures usually take 6-8 weeks

depending on the complexity of the building.

Wide Span Sheds use Shed Builders Australia

for construction where required as an additional

service. No obligation quotations are available with

your purchase to ensure you have a clear idea of

your final project cost.

Professional adviceWe provide professional advice on buildings custom designed and manufactured to exceed your expectations.

Call now on 1300 WIDE SPAN (1300 94 33 77) for quality advice.

Quality rural & industrial sheds Discover 100% Australian Wide Span Sheds

Genuine people deserve the genuine shed.

Page 20: Agribusiness 2010

FUTURE FARMING

18 • AGRIBUSINESS CHAIN V10#1

“Putting our resources into black holes is not where thefuture is and is not a good way to spend the public dollar. Ithink the Australian people would rather be assistingenterprises that have a business plan looking to the future; thatwill adapt to climate change and the issues that confront us inthe next 20 to 30 years. We’ve also got to look at theopportunities at the enterprise level and look at where we’regoing in a world sense. I think farmers will get left behind if theydon’t adapt and look for opportunities.”

Adapting to climate change in the wheat industry, forexample, includes changing the planting times to suit the newconditions, changing row spacing and planting densities, andusing new technologies to concentrate water into the crop.

“We’re just starting a program to have these climate-readycrops available to be rolled out in the future, so rather thanwaiting for the future to hit us, we’re trying to be prepared forit,” he says.

Of more immediate concern to the National Farmers’Federation, however, is the government’s mitigation strategy toreduce greenhouse gas emissions.

In its submission to the inquiry, the peak farming organisationis warning that the immediate challenge of adapting tomitigation policies may be a far greater challenge for farmers

than adapting to climate change itself.It says the government’s proposed carbon pollution

reduction scheme has the potential to reduce the value ofAustralian agricultural production by $2.4 billion per annum by2020, and $10.9 billion per annum by 2030 compared to whatwould otherwise be the case under a business as usualscenario.

The farmers’ federation says over 1.6 million jobs, 20 percent of our exports and the vast majority of the food weconsume depend on the ability of our farmers to meet climaticchanges. It has called for increased research, a new model fordrought support, and national coordination of research,development and extension services.

It is also calling for massive funding boost to improve ourforecasting capability, steering the committee towards adrought information system in the United States(www.drought.gov). That system provides information rightdown to local county level on soil moisture, rainfall, run-off,stream flows and early warning systems, with a priority onpreparedness.

This kind of information rich farming will be critical to thefuture success of agriculture. According to Dr Howden, futurefarming will be more opportunistic, risk sensitive and targeted,

where famers are not just doing the same thing year after year,but are varying according to the circumstances.

“Even under the worst climate change scenarios we’ll stillsee agriculture practiced in this country, but it could look quitedifferent to what it is now and be practiced in different places,and the detail of that practice will be quite different indeed,” hesays.

“The demand for agriculture and food products generally isgoing to increase because of increased economic growth andaffluence in countries like China and India, but also becauseour population across the globe is growing rapidly. We’relooking at having to double food production by 2050 andbecause we only have a limited amount of agricultural land thatmeans we’re going to have to significantly increase ouragricultural production.”

So rather than a bleak future of drought and despair,successful management of climate change should lead to aproductive and lucrative future for farming in this country.

It’s a sentiment echoed by a Wall Street veteran who recentlytold an Australian television audience that agriculture is aboutto become one of the most exciting industries in the world.

According to Jim Rogers, CEO of Rogers Holdings, peoplewho produce real goods will be the ones driving Lamborghinis.

His advice to anyone interested in making money is simple: gobecome a farmer.

Beyond doubtWithin Australia’s farming community, among men and womenwho are ever-watchful of the land that is their livelihood, thereare doubters.

Almost one in five farmers surveyed in Tasmania is openlysceptical about climate change — a scepticism fuelled by theirrecent memory of a potential disaster that became a fizzler.

“They distrust scientist to the extent that they believe climatechange is just another ‘Year 2000’, invented for media hypeand money,” says Frank Vanclay, a professor of rural andenvironmental sociology at the University of Tasmania.

“Many farmers were required to outlay much effort and costto become Y2K compliant and they now feel duped by whatthey perceive as a scam. This distrust creates a great deal ofresistance to even considering the idea of climate change,”Professor Vanclay says. “Arguably farmers need to prepare forclimate change in order to create benefits and avoid costs. Yetresistance to taking action to adapt to projected changes inclimate or to mitigate emissions is widespread.”

Professor Vanclay and his PhD student Aysha Fleming were

Page 21: Agribusiness 2010

Give this notice to your doctor today to start the discussion

Taking multiple medicines* for your heart?

If you take multiple medicines for high blood pressure

or high cholesterol, there are now combination

options available. Options that can reduce

the number of tablets you take

and the money you pay.

Is a combination heart pill right for you?

I’d like to discuss my treatment* for high blood pressure or high cholesterol. Please advise me if a combination heart pill is suitable.

* Various medicines could include: calcium channel blockers, ACE inhibitors, angiotensin II receptor antagonists, beta-blockers, thiazide diuretics, potassium-sparing diuretics, alpha-blockers, statins, bile acid binding resins, cholesterol absorption inhibitors and fi brates. Pfi zer Australia Pty Limited, 38-42 Wharf Road, West Ryde, NSW 2114 MES0945

Page 22: Agribusiness 2010

FUTURE FARMING

20 • AGRIBUSINESS CHAIN V10#1

among the first to make a submission to the Primary IndustriesCommittee inquiry into climate change and agriculture. The tworesearchers conducted a survey of apple growers, dairyfarmers and farming consultants. Professor Vanclay says thatalthough the research was based in Tasmania, he believes theresults are widely applicable elsewhere across Australia.

Despite the minority of farmers who claimed change wasanother Y2K scam, most of those interviewed accepted it wasoccurring and about half said they had noticed the effect onthe Tasmanian landscape as well as on their farms. Yet, whileacknowledging the reality of global warming, only on in fivethought it was caused by human activity and a third were evenundecided.

“They were distrustful of government actions taken topenalise farmers, especially during times of drought andfinancial strain when they are already struggling,” theresearchers say in their submission. “They were angry that theircurrent efforts to be environmentally sustainable were not beingrecognised or valued, especially as carbon stores in pasture,soil, orchards or shelter belts will not be recognised, at leastunder current plans.

“Some (34 per cent) are worried about the future of theplanet to the point that their concerns inhibit action. They feel

overwhelmed, that the planet is already on a path todestruction, or they feel it is beyond the scope of their lifetimeto create a solution and that it will be a problem for futuregenerations.”

The challenge facing the House of Representatives PrimaryIndustries Committee is to identify appropriate governmentaction to tackle the manifold problems climate change raises.

“The impacts of climate change are not just biophysical, theyalso have economic and social dimensions,” says thesubmission to the inquiry from the Climate Change ResearchStrategy for Primary Industries network.

The network is a collaborative partnership between ruralresearch and development corporations, state andCommonwealth primary industry departments, and universityexperts. It says there is a role for government to “assistindividuals and communities moving from declining industriesto emerging ones, while minimising social dislocation anddysfunction.”

There will need to be greater investment in rural research anddevelopment, commercialisation, extension and training, thenetwork says, to develop and equip the next generation ofresearchers, decision makers and leaders in the fields ofagriculture, natural resource management and climate change

Tipping Point

A better understanding of human impact on land is vital in helping

to determine how humankind should work that land in the future.

For the past 20 years, Peter Gell has been collecting core sample

two and three metres deep into the earth from sites across

south-eastern Australia. The cores contain material that has built

up over hundreds and even thousands of years. Back in their

laboratory at the University of Ballarat, Professor Gell and his PhD

students study the different layers they collect to determine the

changes that have occurred over these long periods.

They are able to build up a picture of climate variations and what

the vegetation was like stretching back beyond the arrival of

Europeans to the time when only Aborigines occupied the land, as

they had for perhaps 50,000 years. “I’ve deliberately focused on

the last couple of thousand years of change to provide more of a

context for people to understand the impact the arrival of

Europeans had on our landscape,” Professor Gell says.

“We want to understand what the baseline ecosystems were like

and what the natural responses were in a landscape where

Indigenous people lived with nothing like the technology we have.”

Professor Gell is a “palaeo-ecologist”, an expert on terrestrial and

wetland ecology, fire and vegetation history — and climate change.

As Director of the Centre for Environmental Management at

Ballarat, he is also convener of a national network examining the

impact of people on Australian ecosystems, as well as heading an

international network on the effect of humans on the world’s lakes.

“I try to compare what Australia has experienced in the recent

past with current forecasts to get some idea of how scary the

rapidity or magnitude of change is for the future.”

As part of his research, Professor Gell has uncovered evidence

that the incidence of fires increased dramatically with the arrival of

Europeans after the 1830s. Contrary to conventional beliefs, the

first squatters burnt the land far more regularly than Aborigines ever

did, he says.

“Victoria’s early settlers turned most of the original forests into

woodland and most of the woodland into grassland so, although

the total ‘fuel load’ has decreased, conditions for bushfires within

the remaining forests are different now than they were 300 years

ago.”

Some biologists believe the Earth has reached a tipping point

where human impact on the world’s ecosystems has been so

severe, it is too late to prevent a global disaster. Despite all he

knows about what has happened to Australia in general and the

Murray River basin in particular since Europeans arrived, Professor

Gell is not as pessimistic as some.

He takes heart from the work of Brian Walker, a research fellow

with the CSIRO’s sustainable ecosystems. Dr Walker is renowned

for his work on resilience: the capacity of a system to absorb

disturbance and to undergo change while still retaining essentially

the same function, structure, identity and feedbacks. He

co-authored a 2006 book with David Salt, Resilience thinking:

Sustaining ecosystems and people in a changing world (Walter

Reid: Books).

“We might have reached a tipping point but that doesn’t mean

we are on an inexorable slide into the abyss,” Professor Gell says.

“We may have just kicked over to a different system but as that

system is likely to be less productive and sustaining, we have to

work out how the new system operates and what it takes for

humankind to continue to exist.”

Page 23: Agribusiness 2010

FUTURE FARMING

AGRIBUSINESS CHAIN V10#1 • 21

sciences.“Farmers cannot rationally respond to climate change and

adapt to its likely impacts without basic information about whatchanges may occur in their climates and the implications of thisfor their agricultural practices,” the network’s submissionstates.

The network also sees a need for social analysis to considerthe impacts of climate change on rural communities and tobetter target government’s social spending in thosecommunities.

The capacity of rural communities to respond to changingcircumstances is also addressed in other early submissionssent to the Primary Industries Committee. A network in Victoriacalled the South West Climate Change Forum has devised asystem to assist its rural community, including farmers. Thegroup says its success comes from the forum working withlocal, regional and state government departments andauthorities to develop what it calls “climate change adaptationstrategies throughout Victoria’s south-west”.

The forum evolved from discussions among westernVictorian dairy farmers about the lack of planning to prepare forclimate change. The first meeting of interested parties occurredin June 2007, culminating in the group’s formation. It now hasrepresentatives from water and catchment managementauthorities, the main regional primary industries of dairy,seafood, timber, cropping and livestock, plus groups with aninterest in sustainability.

Members of the forum have spoken to more than 500primary producers at industry field days and to more than2,000 rural people involved in primary production at workshopsand other meetings. Through articles in newspapers and mediacoverage on television and radio, the group estimates thatinformation on climate change specific to the region andprimary producers has reached most farmers in the south-west.

In pointing to the applicability of the forum model, thesubmission notes that most government agencies and industrygroups associated with primary production were looking forleadership on climate change and welcomed agrassroots-driven organisation taking responsibility for deliveryof information to their member and stakeholders. It highlightsthe importance of a “single entity collating and coordinatingclimate change information for primary producers that isrelevant to the region and its primary industries and provides aconduit for information and funding from governmentagencies.”

“It helps minimise duplication, encourages cooperation andpartnerships and created a high profile hub for the membersinvolved. [The forum] is viewed by stakeholders as agile,motivated and proactive which has contributed to the supportthe forum has won. Industries and agencies have welcomed anindependent and ‘neutral’ body which was initiated and isdriven by the grass-root members.”

Submissions have also arrived from individual farmers. Onecame from Dr Kath Cooper and Mike Elleway, farmers andseed-growers in the South Australian Mallee country. The twourge governments across Australia to provide more support forthe farming community, declaring that the country “needsfull-time, professional, career farmers who are able to live, ableto buy food, get health care, have their children educated, havea holiday from time to time, and have access to affordablewater, power, communications and transport”.

“Career farmers need income security. If farmers are in areasonable financial position, it is amazing how well they canadapt to the impacts of climate change and produce wellwithout further help. The government needs to enable farmingto become a sufficiently financially rewarding activity. Farmerscan still produce a lot in a variable climate, but their productionneeds to be rewarded, particularly in consideration of theirever-increasing input costs. Some food production may need

to be subsidised and/or a minimum price guaranteed.”The Cooper-Elleway submission argues that farmers are in a

good position to do environmental work for the benefit of thegeneral population and payment for this would contribute to afarmer’s viability despite variable seasons. For example, theycould help control pests such as foxes, rabbits, cats, goatsand other feral animals. They could also clear weeds such asbox-thorns on and off their properties, fence off scrub andwatercourses, and sow sand hills with trees to reduce erosionand increase biodiversity.

“All this costs money and time, and as farmers get poorer,less of these activities are possible. So help keep farming viableby paying for environmental work. Other on-farm activities,such as hosting wind and solar electricity farms, should besupported [and] governments need to enact policies toencourage more locally-based farming support industries.”

The submission makes a plaintive plea to reverse the effectsof globalisation by keeping the manufacture of farm machineryin Australia. Local manufacturers can act more quickly andappropriately in responding to the needs climate changeimposes, rather than having to rely on sourcing all agriculturalmachinery needs from overseas, the writers argue.

“Local business can maintain and quickly adapt theirmachinery for fighting bushfires, ameliorating flooding fromcyclones and, as when needed, when preparing for a war.Farmers and local manufacturers need to be helped to remainviable. Incentives need to be given to stay rather than allowcompanies to move offshore to find cheap labour.”

The shortest submission so far is from Sandor con Kontzwho also says the solution rests with Australian farmersthemselves. In less than 50 words, Mr von Kontz tells thecommittee what the government should do: “Since I am asimple farmer please do not expect an elaborate submission.My idea is simple. I am absolutely positive that the answer tothe problem of climate change lays in our way of managingland. My idea is: pay farmers a basic wage for landmanagement which counteracts climate change.”

Pick of the CropDairy farmer Tom Pearce doesn’t know whether it’s climatechange or seasonal variations, but years of unreliable rainfallhave sparked an efficiency drive on his family farm, which isdelivering excellent results.

“We’re trying to be more efficient with less,” he says, “andwe’re still getting the same amount of milk.”

With 500 animals including 200 milking cows needingconstant care and attention on their dairy farm near Bega(NSW), the Pearces work “flat out” in the good times tomaximise the value of every drop of water and every blade ofgrass.

“The cheapest feed for us is grass, and without rain we haveto buy in grain and hay and that’s where it gets expensive,” MrPearce says. “So we have to adapt, and that’s why we’re stillhere.”

His attitude and leadership has won him a spot as one of thisyear’s Royal Agricultural Society of NSW Young Achievers, agroup of seven young Australians selected from across thestate for their contributions to their communities.

They all agree the weather is the biggest topic ofconversation amongst farmers at the moment. They alsobelieve younger farmers in particular are taking advantage ofnew techniques and technologies to improve farm efficiencyand sustainability.

While they come from a range of backgrounds with differentexperiences of life on the land, they all share a fiercedetermination to see farming overcome its many challenges tothrive and prosper.

Speaking at the Sydney Royal Easter Show, these “achieverstoday, leaders tomorrow” had a clear message for theparliamentary inquiry into agriculture and climate change:

Page 24: Agribusiness 2010

FUTURE FARMING

farmers are brilliant adapters, just keep them involved in thedecision making process.

Adapting to drier conditions for the Pearce family has meantbeing more careful with their water, getting maximum valuefrom their pastures and downsizing their herd slightly.

“I think farmers are good adapters as long as they’re involvedin the process and not forced to do things,” says Kellie Cooke,a milk supply officer on the NSW north coast.

“A lot of farmers are sceptics and you’re never going to getthem to come across [to climate change] but as along as youdon’t force them into things, and you work with them, they willadapt and it will be OK,” she says.

Two recent floods demonstrated to her the enormous impactweather has on farmers’ lives, regardless of how such eventsare labelled. Blackouts disrupted milking routines, while floodedroads made milk collections impossible.

“I know in most other areas in Australia it’s been getting a lotdrier, but for us it’s been either colder or wetter,” she says.

“If floods were going to become significantly more regular,then farms on the flood plains would have to move. Eventhough on the coast the high rainfall is ideal for dairy farming, ifit’s going to continually flood, meaning constant animal healthissues and soil issues, then they’re going to have to shift.”

Liz Pearson, raised in Guyra and now working for an animalhealth company in Cootamundra, believes farmers are veryresilient.

“I’m very optimistic about the future of farming, with thecompany I work for highly involved in developing technologieswhich are making farmers more efficient and sustainable,” shesays.

Through her involvement in the feedlot sector, she’s seenimprovements especially with water use, which will be good forthe industry’s future.

Junee agronomist Tim Stivens shares this optimism aboutthe future but thinks farmers have reached a point where theyare almost as efficient as they can be, and need policy supportfrom the government to guarantee their income.

“We can’t grow some products for the price we can importthem, and farmers don’t really have control over those sorts ofthings,” he says.

“Farmers are just about at the peak of their efficiency andthey need secure margins or prices to stay viable. Farmershave done just about as much as they can do. There needs tobe a policy framework to secure their future.”

He says farmers are already adapting to the changingclimate, with a massive shift away from conventional farmingpractices such as ploughing and sowing, to practices usingdirect drill machinery, water conservation, retaining stubbles,and running less livestock to retain ground cover and water.

Mr Stivens says some of the older farmers aren’t convincedabout climate change, but younger farmers are embracing newtechnologies and practices.

“If you talk to the older generations, those which arebeginning to step away from controlling the farms and workingthe land, they reckon climate change is a furphy. They think it’sjust a made up bureaucrat word to give someone a job inparliament.

“But talk to the younger farmers, those stepping in now whohave had experiences outside farming, they’re a bit more waryof climate change and the direction it’s going to pushagriculture. They’re trying to understand what it means, and iffarming is going to be viable in our area.”

To a large extent that viability will depend on rainfall, always abig topic of conversation in Riverina town of Leeton, whereShannon McCormack has spent the past 12 months workingwith farmers “doing it tough”.

“Being a strong irrigation area they’ve been struggling a lotwith water allocations and trading, and they’re really struggling.They want some rain and keep hoping and praying it willhappen.”

He says the younger farmers are “opening their minds” tonew and better practices and looking for more efficient ways tofarm, but it’s a constant contest between the climate andmoney.

Farmers and the impacts of climate changeThe House of Representatives Primary Industries and Resources Committee is investigating the role of government in assisting Australian farmersto adapt to the impacts of climate change.

The committee is considering how farmers are or could be adapting to climate change, and the potential impacts on downstream processing.It is looking into the role of government in assisting farmers to shift towards farming practices that promote resilience in the farm sector, andgovernment’s role in promoting research, extension and training that assists farmers to better adapt to climate change. The role of rural researchand development is also being examined.

(continued on page 24)

Page 25: Agribusiness 2010

RISK MANAGEMENT

Protect your income against production andprice risk with AACL

Progressive grain farmers are choosing the only product which provides true protection against all production risks. In addition to machinery, vehicles, home and even life insurance, more and more grain farmers are covering the main risk to their business – their production costs. With an AACL Grain Co-Production Contract, you’re covered against all perils including frost, flood and drought (post seeding). Protect your farm equity and ease your cash-flow at the times you need it most.

AACL is an Australian company that’s been assisting grain farmers protect their income since 1999. To find out more call 13 000 GRAIN or visit aacl.com.au.

Protection for your future and theirs.

AACL has been assisting grain growersto protect their income since 1999, withtheir unique product Grain Co-Production. Based on a model similar toshare farming, Grain Co-Production is ineffect an income protection and cashflow tool, the only one of its kindavailable to Australian grain farmers.

Grain Co-Production involves partneringinvestors with professional farmers to growgrain crops. Investors provide the capitaland the farmers provide the land,equipment and expertise. The investorsown all of the crop and harvested grainand the farmers share in any upsidereturns based on outperforming aperformance benchmark or Target Value.

Each season, the farmers are provided aguaranteed income on a contracted areaof their farm, with the majority of thepayment made at seeding time. The risksof growing the crop are borne by theinvestors, with the crops pooled andinvestors receiving a share of that pool,which is price managed by AACL.

Grain Co-Production effectivelyunderwrites the farmer’s income andprovides the farmer with more certainty

and a guaranteed worst case positionbefore the crop has even been grown—something Australian farmers have neverhad before. A Grain Co-Productioncontract can benefit farmers in all growingregions, including those in traditionally lowrisk, high rainfall areas. The contractstructure is tailored to suit the risk profile of

each farmer individually based on anumber of factors such as farming historyand yield volatility.

Currently AACL offers Grain Co-Production contracts to farmers for wheat,barley and canola across most growingregions of the Australian Grain-belt. AACL’shead office is located in Perth, WesternAustralia, with a satellite office inMelbourne, Victoria and numerousregionally based staff spread acrossWestern Australia, South Australia, Victoriaand New South Wales.

In 2009, AACL has invested $90 millioninto grain production, involving 240 farmerclients who have been contracted toproduce approximately 480,000 tonnes ofwheat, barley and canola.

Andrew McBain, AACL ManagingDirector says “AACL’s Grain Co-Productionapproach provides an option to reduce theimpact of production and price risk on afarmer’s income and assists in providingmore financial certainty”.

For more information about AACL or theirproducts please contact AACL on 13 000GRAIN or email [email protected] or go toaacl.com.au.

AACL’s Managing Director, Andrew McBain atthe 2009 Dowerin Field Day

AGRIBUSINESS CHAIN V10#1 • 23

Page 26: Agribusiness 2010

FUTURE FARMING

24 • AGRIBUSINESS CHAIN V10#1

“The climate’s got to be right for you to make the dollars,” hesays. “In farming, the highs are really high but when it’s low, it’sreally low.”

Tired of waiting for a break in the weather, some farmershave moved out of cropping into lambs, he says. Others havemade the tough decision to sell, which often comes withadditional heartache when properties fail to return the pricesthe owners thought they were worth.

It’s even worse when they can’t sell, even though they wantto, which Orange agronomist Melissa Lauff has seenhappening.

“I’ve been hearing farmers say ‘if we don’t get a good year,we’re out’, but then if it doesn’t rain land values are down andthey can’t sell,” she says.

“There are farmers who have lived their whole lives on theland and they’re saying this is the worst it’s ever been. They’reconstantly looking for new ways of doing things becausethey’re accepting this is the way it’s going to be, that it’s nevergoing to get back to how it used to be.”

She would like to see more financial assistance for farmerswhen times are tough to help them plant their next crop, or buytheir next lot of cattle, just until they’re “back on their feet”.

“In my area around Orange, the government has justcancelled drought assistance and a lot of people are upset

about it because we’ve had some rain but not enough,” shesays.

According to Patricia Cooke, from near Cowra, the seasonshave definitely changed. “You can’t plan as much as you usedto, and you just have to work day by day,” she says.

She would like the parliamentary inquiry to consider ways topromote information sharing, suggesting a series of ruralforums where farmers could get together with their mates todiscuss the challenges they’re all facing.

“Farmers are more likely to take it seriously if they don’t havesomeone dictating what they have to do. They need to be ableto get together to discuss things. It’s better that way. And if wedon’t do it now, who knows how our industries will keepgoing.”

Whatever the weather, young farmers like Tom Pearce willkeep doing the best they can to adapt, modernise, be moreefficient and sustainable, while also hoping for a return to morefavourable conditions.

“I guess it’s in the back of people’s minds, the climatechange thing, but we’re taking each day as it comes…and therainfall is always a day closer,” he says.

For more information, visit www.aph.gov.au/pir or [email protected] or phone (02) 6277 4500.(source: About the House)

Page 27: Agribusiness 2010

Claratyne.com.au

CLARATYNE® is a registered trademark.

ASMI/17158-11-09

Always read the label. Use only as directed. If symptoms persist see your healthcare professional.

2009

-11-

035

Live Claratyne Clear™.

Whatever the forecast, make it a clear day.

Take control of your allergies before they take over your day. With Claratyne you get 24 hours of non drowsy relief from the symptoms of hayfever and year round allergies. Just one daily dose and the forecast is clear.

Page 28: Agribusiness 2010

BEST PRACTICE

26 • AGRIBUSINESS CHAIN V10#1

B ut the journey has only just begun for this boutique oliveoil producer. Established in 2002, Camilo Olives havewaited until now for their first ‘on’ year – a year of full

production that has reaped great rewards. Camilo wasshowered with awards during the latter part of 2009 for itsquality olive oils, taking out a clean sweep of gold medals atthe Melbourne Show, and two silvers in Sydney – all before theofficial launch of the Camilo brand.

This is a remarkable achievement for such a young company.The olive groves for Camilo’s impressive oils were planted lessthan a decade ago, in 2002, on a property just outside ofGeelong.

Joan and Peter McGovern moved from Melbourne toGeelong for career reasons – Joan has a background in PRand communications – and set about a rigorous search for theright property. “We wanted at least 100 acres, a reliable supplyof water and a view because we had moved from Tasmania in1996 and really wanted a place we could enjoy as a lifestyle as

Camilo OlivesThe history of Camilo Olives issomething of an agricultural fairy-tale. The family-owned business,managed by mother and daughterteam Joan McGovern and AnneRathjen, has all of the elements of aclassic story – humble beginnings,some obstacles along the way, anda happy ending.

Page 29: Agribusiness 2010

well as an income generator,” says Joan. Establishing a nationwide name in olive oil was not their first

priority when the McGoverns arrived in Geelong, but, havingbeen inspired by a friend’s grove of a few hundred trees, theypurchased 136 acres of land nestled between the Inverleighflora and fauna reserve and the Leigh River, with the intention ofcreating a sizeable grove of their own.

When the decision had been made to establish the grove,the McGoverns were surprised (and delighted) to be told bytheir daughter Anne that she would pursue a Degree inAgricultural Business. While Anne undertook her studies, thefirst 20 acres of the grove was planted, and Camilo Olives wasborn.

For the first few years, the team at Camilo Olives were, asJoan says, “‘green’ to farming and to olives and took all theadvice received.” As with any new endeavour, the McGovernsdiscovered along the way that not all advice is good advice,having mounded their olive rows (creating a ‘hill’ effect along

the rows), only to have to mow them on a slant from that pointon. Says Joan, “we have learned to live with leaning on themowers but if we could, we would happily flatten the ground.”

One of the biggest lessons learned through the planting andcultivating process was the amount of water that was neededto grow olives – a difficult lesson to learn during an extendeddrought. “Our trees were planted early on in the drought years.Our irrigation system didn’t work for years, and it was only acouple of years ago that we could ensure that our treesreceived the water they had been begging for,” says Joan.“People tell us that olives don’t need much water, but they doduring their establishment years. Our seven-year old trees areprobably really only five years in maturity but they virtually sangtheir way through the last season and happily surrendered afantastic crop.”

Joan notes that ‘it takes five years to produce an oliveharvest of reasonable quantity, seven years to start breakingeven and 10 years to be in full production.” During the growingyears at Camilo Olives, the family set up a small processingplant on their property for future use, and used it to processolives for other growers, honing their skills at the same time.When it came time to harvest and process their own produce,Anne did most of the processing, which resulted in a finequality Ligurian oil that won a silver medal at the 2009 SydneyRoyal Fine Food Awards.

In order to ensure that Camilo’s brand would be establishedas soon as production commenced, the family worked oncreating labelling and a recognisable brand name image,assisted by a Melbourne design company. The result isbeautiful packaging, depicting an olive tree behind thecompany’s distinctive Camilo logo. Joan acknowledges theimportance of good branding. “We get a continuous stream ofcompliments for our branding, and I know that it helps to sellthe product.”

Beyond the branding, however, the product contained withinmust be superior quality as well, a feat that Camilo hascertainly achieved. “There’s nothing more important thanputting quality inside – and that has been our main aim sincethe inception of the grove,” says Joan.

Joan and daughter Anne set about training their palates torecognise a good oil. Both women trained to become VictorianSensory Panel members, which has stood them in good steadto identify a quality product – undoubtedly one of the reasonsthat Camilo has managed to achieve such high-gradeproduction so quickly.

The main olive variety at Camilo is Ligurian, and the othersinclude Kalamata, Pendolino, Corregiola and Koroneiki. In2009, Camilo produced three distinct extra virgin olive oils – aKoroneiki/Frantoio blend, the silver-medal winning Ligurian, anda Koroneiki/Barnea blend. The Koroneiki/Frantoio blend swepta lot of prize categories, including best in show at the 2009Royal Melbourne Show. The oil was awarded gold in thecommercial bulk robust category, won the commercialcategory championship trophy, and won the Victorian Trophy,which is awarded to the highest scoring of the Victorian-growngold medal winning oils.

Camilo also produces infused oils with hints of chilli, garlic,and even mandarin, as well as baked and pickled olives, and amoisturiser.

The family behind Camilo Olives is rightfully delighted thatthey’ve achieved such success from the effort that they’ve putinto their property. “Suffice to say we are very proud, happyand now running very hard to make sure that we meet ourcustomers’ needs, market demands, and make the most ofwhat has been a brilliant year,” says Joan.

If 2009 is anything to go by, the future holds only good thingsfor Camilo. With full production now underway, and thecompany growing out of its youth, Camilo is sure to prosper,and head towards that fairy-tale ending.

BEST PRACTICE

AGRIBUSINESS CHAIN V10#1 • 27

Pictured: Joan McGovern (right) with daughter Anne.

Page 30: Agribusiness 2010

BEST PRACTICE

O ne of the award judges, Ian Packer from the LachlanCatchment Management Authority said that this year’sgroup of eight regional finalists was very diverse, from

stock only through to cropping across every landscape and soiltype possible, from three regions within the catchments beingthe slopes, plains and tablelands.

The Central West, Lachlan, Murray and Murrumbidgeecatchment-based farmers were judged following nomination,with on-farm inspections by representatives of CANFA, theCatchment Management Authorities and the 2008Conservation Farmer of the Year winner, Matt McKenzie.

The Ives were selected from a group of three regionalwinners who included:• Slopes: Andrew and Delwyn Clifton, “Fairfield”, Corowa• Plains: Tony and Tanya Wright, “Bundy Downs”, Peak Hill• Tablelands: John and Roby Ive, “Talaheni”, Hall

Mr Packer said they saw evidence of a vast array ofinnovative ways to reduce inputs, monitor systems, addressclimate change and develop unique markets, and for all, soilhealth was a high priority.

Stubble maintenance and no till was high on the agenda toaddress soil structure, organic carbon and compaction,” hesaid.

In accepting the award last night Mr Ive said that while beingfocused on superfine wool production on their Yass Valleyproperty, in order to achieve those ends they need to look afterthe land to the greatest extent possible.

“We believe that if you can’t measure it, you can’t manageit.”

Receiving the award on his birthday, Mr Ive also won a$5,000 GPS guidance system at conference, donated by GPS-Ag. He made the comment at the dinner that he was not surehow the sheep would react to it.

For more information about the Conservation Farmer of theYear Award contact:Neville GouldMob: 0427 452 488Tel: 02 6845 1044 (CANFA office)Web: www.canfa.com.au

28 • AGRIBUSINESS CHAIN V10#1

Tablelands-based farmerstake out 2009 ConservationFarmer of the Year AwardAt the 2009 Conservation Agriculture and No-till Farming Association (CANFA)conference dinner in Dubbo, the winner of the 2009 Conservation Farmer of theYear Award was announced as being Murrumbidgee tablelands farmers, John andRobyn Ive from Hall.

ABOVE: John and Robyn Ive with CANFA executive officer, Neville Gould and CANFA chair, Anne Williams, receiving the 2009 Conservation Farmer of the Year Award inDubbo

Page 31: Agribusiness 2010

SURVIVAL OF THE FITTESTPANASONIC FULLY RUGGEDISED TOUGHBOOKS

Our Toughbooks are distinguished by their ability to survive the toughest of environments. It is the result of our uncompromising research and development. Since 1996 we have as the world leading manufacturer, built our notebooks to fit our customers’ individual needs delivering tailored, innovative business solutions, unavailable through alternative manufacturers, based on their requirements. Now with Intel® Centrino® 2 with vPro™ technology you can rely on extreme robustness and also long battery life, improved security technology and outstanding connectivity. After all, survival is not the only thing that matters.

EVERYTHING MATTERS.

Centrino, Centrino Logo, Core Inside, Intel, Intel Logo, Intel Core, Intel Inside, Intel Inside Logo and Intel vPro are trademarks of Intel Corporation in the U.S. and other countries.

CF-19

Panasonic recommends Windows Vista® Business.

www.toughbook.com.au

Page 32: Agribusiness 2010

SUSTAINABILITY + ENVIRONMENT

30 • AGRIBUSINESS CHAIN V10#1

An answer to climate changecould be right under our feet.Nature’s WayStory: Georgie Oakeshott

When the McKellar family started farming at ‘Inveraray Downs’ in northern NewSouth Wales back in the 1960s, the cultivators turning the soil in preparation forplanting were continually being clogged by giant earthworms.

Page 33: Agribusiness 2010

SUSTAINABILITY + ENVIRONMENT

F orty years on, those “three-foot worms” are long gone buta second generation McKellar is doing everything he canto get them back. Working overtime to restore soil fertility

and wishing he could start all over again, Cam McKellar regretsthe impact that traditional chemical farming has had on theirland.

“Basically we stuffed it,” he says of the soil which went froma healthy carbon level of three percent to under one percent in30 years.

The turning point came in the 1990s when costs werespiralling out of control and, plagued by headaches fromchemical herbicide, Cam McKellar began questioning the waythings were done and realised there was another, moreenvironmentally friendly way.

He turned to biological farming, which meant winding backthe use of chemical fertilisers to restore the soil’s health. Notonly has the soil improved but his plants are healthier, bushelweights are higher and the end product is more nutritious.

“Biological farming is taking better care of your soil biologyand plant nutrition,” he says. While it’s taken 10 years, soilcarbon levels are improving, insecticides are hardly everneeded, fungicides are non-existent and the worms are comingback.

“We basically had to start from scratch but now we’re seeingthe results. The soil is totally different to what is was 10 yearsago. It looks good, it smells good, and I’m enjoying farmingagain.”

McKellar’s Spring Ridge property was recently visited bymembers of the House of Representatives Primary IndustriesCommittee who came to the Liverpool Plains to meet farmersat the leading edge of adaptations that could play a vital role foragriculture as it deals with the impacts of climate change.

Cam McKellar believes increasing soil carbon levels has thepotential to solve one of the nation’s biggest environmentalchallenges.

“If we did this across western New South Wales we’d fix theMurray Darling system in a matter of five or 10 years. Youwould have your water cycle back to where it’s meant to beand everything would be pretty sweet. I know that’s a big callbut it would be lovely to see.”

Not far from Spring Ridge, Quirindi farmer David Wallis is alsoseeing the benefits of biological farming.

Faced with a 95 percent reduction in his water allocation andknowing that carbon increases the soil’s ability to hold water,David Wallis used biological farming techniques to increase hissoil carbon levels from two to three percent, which is close tothe optimum level in these heavy black soils.

“The biological principles change your thinking a bit,” hesays. “It’s sometimes referred to as ‘soft’ farming. We don’t useacid based fertilisers anymore. We actually spray nutrients onthat will feed the life in the soil to build up the bug life in the soilwhich helps create nutrients for your plants.”

He told MPs that biological farming has improved both thehealth of the soil and the health of his plants. His lucerne isnow 80 percent ‘solid stem’ which is better and stronger thanthe ‘hollow stem’ lucerne which used to dominate his crop.

Breeza farmer Andrew Pursehouse is another LiverpoolPlains innovator who has had to make changes to cope with a68 percent reduction in his water allocation.

Instead of cultivating the soil, he has adopted a no-tillagetechnique on some parts of his property to conserve soilmoisture, and it’s worked. Along with a few other adjustments,the no-tillage approach has helped achieve the equivalent of anadditional six inches of rainfall per year.

“The whole thing is a really wonderful story,” he says, “and ifyou combine legumes in there as well to provide organicnitrogen, it’s a wonderful system we now have in place.

“These black soil plains have a tremendous water holdingcapacity and in days gone by to eliminate weeds we farmedthe land and cultivated the weeds. That was actually creating a

sealed off zone which limited moisture penetrability of the soil,and the big heavy tractors were basically acting ascompactors.

“Now under no-tillage farming the tractors are lightweightand they use defined, controlled traffic lanes. We’re finding thesoil is more porous, stubble retains moisture and a lot of ourearthworms have come back. They didn’t like the tillage.”

The achievements of these farmers on the Liverpool Plainsare something Primary Industries Committee member TonyWindsor (Member for New England, NSW) describes as cuttingedge.

“The farming community isn’t sitting around waiting for theclimate to get drier,” Mr. Windsor says.

“In fact the farming community already knows some of theanswers to a lot of the problems and the political process hasto go back to the grassroots and, rather than impose policy onthem, actually ask some of these people how to get theanswers, because the answers are there.

“Lifting carbon levels from two to three percent may notsound a lot but that’s a 50 percent increase in the amount ofcarbon being stored in the soil.

“If you could improve the capture of carbon in our soils by 50percent across the good soils in Australia or even the goodsoils in the world, there would not be any need for anemissions trading scheme. We would have that problemsolved,” Mr. Windsor says.

Primary Industries Committee Chair, Dick Adams (Memberfor Lyons, Tas) says there clearly needs to be more researchand support for their findings.

“I think we went out to save the world and environmentalscience became the sexy thing, but now some of that effortneeds to be put back into agriculture. We need to encouragepeople to look in these areas, to study these areas and getdegrees in these areas which are important for growing foodand fibre in Australia.”

At a public hearing in Canberra, committee members heardfrom one of Australia’s leading soil scientists, Christine Jones,who believes soil carbon is the prime determinant ofagricultural productivity, landscape function and water quality.

“In our never-ending quest for technological quick fixes wefrequently overlook the obvious, the simplest and mosteffective solutions,” she told the hearing.

“Without doubt, increasing the level of carbon in agriculturalsoils is the most obvious, simple and effective solution toclimate change. But we cannot increase soil carbon unless wechange farming methods,” she said.

The statistics speak for themselves. In little over 200 years ofEuropean settlement more than 70 percent of Australianagricultural land has become seriously degraded.

On average seven tonnes of topsoil is lost for every tonne ofgrain produced. At the same time there has been a reductionof between 50 percent and 80 percent in the organic carboncontent of surface soils.

“Losses of carbon of this magnitude have immeasurableeconomic and environmental implications,” Dr Jones said.

“Further, the carbon and water cycles are inextricably linked.Humus holds approximately four times its own weight in water.The most beneficial adaptation strategy for climate changewould therefore be one that focuses on increasing the levels ofboth carbon and water in the soils.”

Warning that a fundamental redesign of food, fuel andfertiliser production is vital to the survival and profitability of theAustralian agricultural sector, Dr Jones said landholders arerealising they need to change.

“I cannot tell you how many people at recent workshopshave almost been in tears saying ‘we know we need tochange, we desperately need information’. They’re ripe forchange,” she said.

According to Dr Jones, the answer is based on a simple,natural process involving green plants which draw down

AGRIBUSINESS CHAIN V10#1 • 31

Page 34: Agribusiness 2010

SUSTAINABILITY + ENVIRONMENT

carbon from the atmosphere. This is then converted to stablesoil carbon through microscopic organisms around the plants’roots.

“All living things are made of carbon and the carbon cycle isthe basis of all life on Earth. We need to learn how to properlycomplete that cycle, how to draw down excess CO2 from theatmosphere and sequester it in a stable, life-supporting form inthe soil.

“The sequestration of CO2 requires a green plant. Theconversion of the liquid carbon in the plant to a stable soilcarbon requires a microbial bridge. Life in the soil cannotflourish in the absence of green plants, nor can it tolerate aconstant barrage of toxic chemicals.”

The reason many current land management systems arefailing, she said, is because green plants are only present forpart of the year, with bare ground the remainder of the time. It’svitally important that soil be covered with living plants in allseasons, particularly summer.

She believes perennial groundcover has multiple agricultural,ecosystem and landscape benefits, including erosion controland combating weeds that colonise land when it’s empty.

Using a technique known as perennial cover cropping,annual grain or fodder crops can be direct drilled into dormantperennial group cover with excellent results.

In fact, she said, in 2007 the only grain harvested in theGeraldton region in Western Australia was from crops sowninto pasture by the WA Department of Agriculture and Food.

“These crops yielded over a tonne per hectare wheneveryone else’s crops simply died. It was because the perennialpasture had improved the soil and helped the ‘pasture crop’survive under extreme conditions.”

Another positive outcome of this ‘year-long green’ agriculturehas been an increase in biodiversity such as snakes, lizards,birds, even marsupials like bettongs which feed on fungi andearthworms.

“We thought their absence was due to predators but it wasactually due to lack of food supply and lack of habitat. Now wehave the year-round grass cover there, although there are still

plenty of foxes and feral cats around, I am seeing more andmore bettongs all the time. I’m blown away every time I seeone,” she said.

Dr Jones told the committee the federal government couldfast track the adoption of innovative, productive farmingtechnologies through a proposed Green AgricultureStewardship Scheme (GASS).

The scheme proposes to provide incentive payments of$200 per hectare for the establishment of green agriculturalsites to provide on-ground proof of resilient high qualityprofitable agricultural production, active soil-building, carbonsequestration, biodiversity enhancement, improvements tolandscape function and the aesthetic benefits of year-longgreen farming techniques.

Dr Jones said these sites would serve as design andinnovation templates for expansion to other properties in theirdesignated region as well as nationally and internationally.

“As a result of the measured and publicised benefits of thestewardship scheme, it is anticipated that regenerative farmingtechniques would be widely adopted throughout theagricultural community, hence not requiring further governmentfunding other than an initial five year allocation.”

Dr Jones told the committee that if there was governmentsupport to encourage landholders to make some of thesechanges, there would be no valid reason for the Australianagricultural sector to be a net emitter of CO2.

“It would require only a 0.5 percent increase in soil carbon ontwo percent of agricultural land to sequester all Australia’semissions of carbon dioxide. That is, the annual emissions fromall industrial, urban and transport sources could besequestered in farmland soils if incentive was provided tolandholders for this to happen.”

This may sound too good to be true, but if it is true, it’s onesimple solution to save agriculture, the environment and theplanet all at once. And all along it was right under our feet.

For more information on the inquiry into farmers and the impactof climate change visit www.aph.gov.au/pir or [email protected] or phone (02) 6277 4500.

32 • AGRIBUSINESS CHAIN V10#1

Page 35: Agribusiness 2010

Standby power can make up to 10% of your electricity bill, so Sally saves energy by switching off her appliances at the power point. If only she could switch off Mike’s snoring as easily. Visit energy.com.au to see what we can do for you.

ENA0

654/

S/AC

Page 36: Agribusiness 2010

W ith a focus firmly on growth opportunities in the windenergy market in Australia, Roaring 40s existing windfarms in Tasmania and South Australia will be

complimented by further projects currently under various stagesof construction. Roaring 40s values reflect our mission tosuccessfully provide renewable energy solutions throughprocesses that are transparent, environmentally responsibleand beneficial to the community. Backed by over ninety yearsexperience in the energy field, the Roaring 40s team has thespecialist knowledge and skills to manage the entire spectrumof the project life cycle, from concept through to commissioningand ongoing operation and maintenance. At Roaring 40s, we’renot just creating energy solutions, we’re creating the future.

Since 2005, Roaring 40s had built a reputation as one of theleading foreign wind energy developers in Asia. Now we’reconcentrating all of our efforts in Australia, bringing with us theexperience and expertise that we’ve built up overseas. Throughthe sale of our Asia based assets, we’re now focused on

helping local economies back home via major wind energyprojects, like the Musselroe project in north-east Tasmania andWaterloo in the Clare Valley region of South Australia. Theseprojects will provide valuable and much needed employmentopportunities, as well as providing long term renewable energysolutions to help Australia lower its carbon emissions andcreate a better future for our children.

Now that’s what we call “thinking energy”.The increasing demand for renewable energy and the

relatively small footprint of wind farming on most agriculturalbusiness activities means that wind, the farm’s untappednatural resource, has the potential to make a substantialcontribution to the total farm income.

At Roaring 40s we are continually searching for propertiesthat have wind potential.

If you would like to learn more about wind farming, and what wedo at Roaring 40s, visit our website www.roaring40s.com orcontact us via email at [email protected]

There’s no place like homeFormed through a partnership between energy giants Hydro Tasmania and ChinaLight and Power (CLP) Group, Roaring 40s vision is to be a leading renewableenergy developer in Australia.

SUSTAINABILITY + ENVIRONMENT

34 • AGRIBUSINESS CHAIN V10#1

Page 37: Agribusiness 2010

With your help,we can farm for

the future too.

www. roa r i ng40s . com

Contact Roaring 40s on 03 6213 4301or email [email protected]

Page 38: Agribusiness 2010

You would think the Bureau of Meteorology would be everyfarmer’s best friend. For more than a hundred years, Australia’sagricultural sector has relied, to a greater or lesser extent, onessential information from the national weather forecaster.

SUSTAINABILITY + ENVIRONMENT

36 • AGRIBUSINESS CHAIN V10#1

T he weather, and more to the point weather forecasting,plays a critical role in the strategic decision-makingprocesses that drive Australia’s $47.5 billion agriculture

industry.Indeed, the bureau attracts a staggering nine billion hits a

year to its website, and accounts for more than 45 per cent ofall Australian government web traffic.

But the current reality is that the friendship is being stretchedin places. Frustrated by what too often turn out to beerroneous forecasts, farmers are asking serious questions ofthe bureau and its capacity to deliver skilful, accurate seasonalpredictions that can feed into key land-management decisions.A 2007 report based on data compiled by the bureau and theDepartment of Agriculture, Fisheries and Forestry found that 76per cent of farmers considered forecasting not to be reliable,and 73 per cent considered it not to be accurate.

As the South Australian Farmers Federation told the Houseof Representatives Industry, Science and Innovation Committeeearlier this year, “The lack of accuracy of the current modelling

methods and long-term predictions makes them a less thanuseful tool for agricultural farming systems within SouthAustralia.

“Agriculture has long called for the accurate long-rangeclimate forecasting to improve decision making and riskmanagement on-farm, but we now question if we are pursuingthe ‘holy grail’.”

The complex and highly technical science behind weatherforecasting, and the innovation that drives continualimprovement in forecasting accuracy, are central todecision-making across the economy, from the farming sectorto water resource management, the mining, construction,tourism and aviation industries, as well as emergency responsemanagement.

Alert to the far-reaching and potentially disastrousimplications across multiple industry sectors of inadequateweather prediction systems, the Minister for Innovation,Industry, Science and Research, Senator Kim Carr, requestedthe committee to inquire into long-term meteorological

Better Weather AheadMore accurate weather forecasts will helppeople who rely on them.Story: James Nicholson

Page 39: Agribusiness 2010

forecasting in Australia.The committee, chaired by Maria Vamvakinou

(Member for Calwell, Victoria), was asked toreport on the efficacy of current climatemodelling methods and techniques, andlong-term meteorological prediction systems, aswell as innovation in long-term forecastingmethods and technology. It was also invited toexamine the impact of accurate measurement ofinter-season climate variability ondecision-making, potential applications foremergency response to natural disasters, andsystems and research in use overseas that couldhave application in Australia.

“Weather plays a huge part in the lives of allAustralians,” Ms Vamvakinou said. “Even simpledaily activities are determined by the weather,and having access to accurate weatherforecasting is essential.”

“In particular, accurate long-term forecasting isessential for many of our industry sectors, forexample our agricultural industry. Withoutaccurate long-term forecasting, the planting ofcrops reliant on seasonal rains is a riskybusiness. ”

The committee has heard evidence fromfarmers groups, state government departments,several individual scientists and some federalgovernment agencies including the Departmentof Agriculture, Fisheries and Forestry, Land andWater Australia and CSIRO. It also heard fromthe Bureau of Meteorology, which bearslegislated responsibility for the collection ofmeteorological data and the forecasting ofweather and the state of the atmosphere. Thatresponsibility includes the issuing of warnings forsevere weather associated with events likely toendanger life and property.

The bureau supports ongoing research inweather forecasting principally though itspartnership with CSIRO in the operation of theCentre for Australian Weather and Climate

Research (CAWCR). This unincorporated joint venture bringstogether relevant research and development expertise fromboth partners.

In its submission to the inquiry, the Bureau of Meteorologynoted the importance of meteorological forecasting and climatemodelling to Australia’s economic, environmental and socialwellbeing and prosperity.

“Australia’s location and size exposes it to a range of weatherextremes such as heatwaves, bushfires, cyclones, floods andstorms. Predictions of weather and climate at timescales fromhours to days and across seasons can influence decisions thatrange from emergency management procedures and systemsthrough to when or whether to plant particular crops,” thebureau said.

At the heart of the investigation into the adequacy andaccuracy of current long-term forecasting methods is the realitythat seasonal weather forecasters find themselves caught in ahiatus between a traditional method of forecasting, which hasbecome outdated and ineffective, and a new method which isyet to be properly developed.

Forecasters have traditionally based their predictions onstatistics gathered over time. Essentially, they collectobservations about past or present conditions that influenceweather, and use those observations to predict meteorologicalconditions into the future. The flaw with this ‘statistical method’is that it assumes previous weather and climate patterns will bereliable indicators as to what might be expected in the future.

Climate change, however, has rendered this method almost

useless, as the bureau’s acting chief climatologist MichaelCoughlan told the committee.

“By characterising the climate of the past and understandingagain where you are now, you can go back to that record andextract similar occurrences of conditions like we have now,” DrCoughlan said. “If one can find those similar conditions in thepast they can use that history of how the climate evolved fromthose conditions to forecast conditions.

“The problem we are experiencing now is we are seeing avery unstable climate regime or, to use the statistical term,non-stationary climate….In other words we are experiencingclimatic conditions that are not well represented in the past.That then compromises our statistically based forecast.”

CSIRO told the inquiry the existing seasonal forecasts forAustralia have “reached the summit of their ability”, while theDepartment of Agriculture, Fisheries and Forestry described theinaccuracy of current long-term meteorological forecasting asone of the great barriers to its wider adoption fordecision-making among farmers.

“Current long-term meteorological forecasts are primarilybased on averages taken from historical climate data,” thedepartment’s submission said. “In light of the internationalscientific consensus that human activity is increasingatmospheric carbon emissions and enhancing global warming,scientists widely acknowledge that historical climate recordsare no longer adequate predictors of future climate.”

The alternative, emerging forecasting method into whichresearch and development investment is increasingly beingdirected is what scientists term ‘dynamical modelling’. Here,forecasters model current conditions using the equations ofmotion and laws of physics to predict future conditions.

The transition from statistical forecasting to dynamicalmodelling has not yet eventuated, either internationally or athome. But, according to the Centre for Australian Weather andClimate Research’s deputy director Thomas Keenan, the lattertechnique has the capacity to provide a much morecomprehensive data set and brings the hope of being able todeliver far more accurate predictions.

“In a statistical relationship you may focus just ontemperature or rainfall, but in these physically based modelsyou can actually look at the soil moisture, the temperature, thewinds, the rain and have a much more comprehensivedescription,” Dr Keenan said. “That enables a much largerproduct set or information source to be available, apart fromimproving the overall predictive skill that is obtained throughthese types of techniques.”

The committee has heard that research is underway toreplace the all-but obsolete statistical forecasting methodologywith the more current dynamic system upon which farmers andother users could better rely. CAWCR has been developingsuccessive versions of a dynamic modelling system forseasonal forecasting called POAMA (Predictive OceanAtmosphere Model for Australia). The model has been used toundertake experimental forecasts of sea surface conditions inthe Indian Ocean, which is believed to be an important driver ofclimate variability for Australia. According to the Bureau ofMeteorology, indications are that POAMA is better equippedthan current statistical approaches to provide long-termforecasts.

The other major project to promise improved seasonalforecasting is ACCESS (Australian Community Climate andEarth System Simulator) which is expected to deliverimprovements in the simulation of El Niño, the Indian Oceanvariability, local weather phenomena and tropical processes.

Not withstanding this early promise, Land and WaterAustralia’s ‘managing climate variability’ program coordinator,Colin Creighton, told the committee how the research agendacould be progressed more quickly.

“Obviously, more investment is needed,” Mr Creighton said.“We really do not have enough money for what we need to do.

SUSTAINABILITY + ENVIRONMENT

AGRIBUSINESS CHAIN V10#1 • 37

Page 40: Agribusiness 2010

SUSTAINABILITY + ENVIRONMENT

Whether it is for emergency services or agriculture or whether itis urban water authorities, it does not matter. Everyone islooking for better forecasts with more certainty and longer leadtimes.

“Obviously, we need international collaboration. We cannotdo it alone. While I talk about an Australian system, we arereally talking about a global system. There is some good workgoing on in Europe and India and so on. We must recognisethat this is long-term research. You do not get the results inthree years. It might take five years.

“Last but not least, as you will probably hear from others, weneed a new supercomputer every five or 10 years. That is thereality of where we are going in much of this science.”

The broad benefit of improved seasonal forecasting and itsinfluence on decision-making was articulated in several of thesubmissions, and by witnesses who appeared in person.

CSIRO listed a number of examples of how different sectorsused forecasting to inform specific decisions. They includeirrigation and cropping decisions affecting the use of irrigationwater; dry-land cropping decisions affecting sowing dates, thearea, variety and fertiliser application; emergency servicesdecisions affecting planning for likely extreme events; andtourism decisions affecting the planning capacity and servicesaccording to seasonal weather.

“Reliable seasonal forecasting has considerable potential todeliver tangible benefits for forward planning and businessoperations in agriculture and water resources, and otherindustry and government sectors and the broader community,”CSIRO noted. “Some benefit already exists but would beenhanced through improved seasonal forecasting, clarificationand education about how to interpret and apply forecastappropriately, and therefore increase user-confidence aboutwhat seasonal forecasts do and don’t offer.

“Better information about Australia’s potential future climateis central to decision-making for individual enterprises and forpolicy planning,” the department noted in its submission.“Understanding climate variability at seasonal timescales, andhaving relevant long-term meteorological forecasting tools, willgreatly assist risk management strategies at an enterpriselevel.”

The key for farmers is to know how much faith to pin onweather forecasts and to understand how best to use theinformation, according to Peter McIntosh, a principal researchscientist at CSIRO.

“The information has to be part of an overall riskmanagement system,” Dr McIntosh said. “They cannot takejust that information and just decide to either plant or not planton the basis of that forecast. They might plant less area or theymight delay planting or, if it was a dry year, they might plant adifferent variety that matures earlier—those sorts of decisions.

“They might decide to put less fertiliser on at the start, if theforecast was bad, and delay it to top dressing and wait to see ifthey got rainfall. There is a number of ways you can use theforecast information that is not black and white. The pay-off isin the long run. In any one year a forecast could be wrong anda farmer could come unstuck. That is why I think they shouldnot follow the forecast only. They have to take a whole bunchof other things into consideration and just make slight changesbased on the forecast.”

And while some have described the attainment of accurateseasonal forecasting capability as the ‘holy grail’, others have areal hope that the research being undertaken through CAWCRwill soon deliver dynamical seasonal forecasts that aresubstantially more accurate than what is currently available.

For the struggling farmers and others who rely on accuratelong-term forecasting, those improvements can’t come fastenough.l

For more information on the inquiry into long-term meteorologyforecasting, visit www.aph.gov.au/isi or [email protected] or (02) 6277 4594

38 • AGRIBUSINESS CHAIN V10#1

The science of predictionThe Bureau of Meteorology refers to long-term meteorologicalforecasting as “seasonal forecasting”, and defines it as forecastingweather “from one to several months in advance”.

Seasonal forecasting is distinct from short-term weatherforecasting (hours to several days ahead), and from climate-scaleprojections, which examine changes in climate on time-scales fromyears to centuries.

Both weather forecasting and seasonal forecasting involve thecollection of empirical observations about past and present weatherconditions, which then form the basis for making a forecast of thefuture weather.

Seasonal forecasting provides an assessment of the likelyweather conditions average throughout a coming season, such aswhether it is going to be drier or wetter than normal, hotter orcolder.

Like most types of predictions, seasonal weather forecasting isuncertain because it involves making a prediction about futureevents within a complex system. Scientists are trying to work outhow to improve the accuracy of forecasts by researching ways ofusing sophisticated computer models and laws of physics to maketheir predictions.

According to CSIRO scientist Peter McIntosh, it is the ocean thatis the key to the longer time scale of the whole climate system,upon which seasonal forecasts are based.

“The important thing is the sub-surface ocean temperature,” DrMcIntosh said. “That is the whole basis of seasonal forecasting:knowing that the ocean controls the long time-scale and knowingsomething about the subsurface temperatures of the ocean.”

Understanding of the ocean is enhanced by an internationalnetwork of 3,300 ‘argo floats’, small robotic probes which areseeded planet-wide about 500 km apart and which float well belowthe surface, recording important information about the ocean.

Nevertheless, the task of interpreting these complex data andtranslating them into seasonal weather forecasts remains athankless one—a reality which the Bureau of Meteorology pointsto with four short unattributed lines on its website:

“Many critics, no defenders,Weather folk have two regrets.When they hit no one remembers,When they miss no one forgets!”

Page 41: Agribusiness 2010

SUSTAINABILITY + ENVIRONMENT

AGRIBUSINESS CHAIN V10#1 • 39

Q uite so. Carbon footprinting, the study of how muchcarbon dioxide is released in the process of producing,consuming and disposing of a product, is all about the

specifics. This is a refreshing change from the politics ofclimate change, which is all about the generics. We

hear promises from our leaders of big changein the future, without any credible plans

right now.I first approached Murray to

ask him about theclimate change

impact of acappuccino.

A yearand

halfago, Iwrote about thequestion, pointingout that meeting anyof these grand targetsin a sensible way wouldrequire billions upon billionsof small decisions.

The cappuccino’s climatechange impact depends on whetherthe café is double-glazed, the decisionsthe staff and I take to get there, the diet ofthe methane-producing cow that producedthe milk and the source of power for theespresso machine.

Last week I pointed out that there are around 10billion products in a modern economy; that meansthat the problem of reducing carbon dioxide emissionsis “simply” the problem of reducing carbon dioxide emissions

from a cappuccino, 10 billion times over.In the case of the cappuccino—or at least, a typical, generic

cappuccino—the climate change impact probably comes fromthe milk. I say “probably” because we don’t know for sure.Murray’s best guess was based on his work on milk chocolate.Milk makes up one-third of a chocolate bar by mass, but isresponsible for two-thirds of the climate-change impact of theentire production and consumption process.

Switching to espresso might be in order; so, too, might adifferent diet for the cows. It is hard to make genericrecommendations, though: even the particular soil on whichthe grass grows on which the cows feed alters the climatechange calculus.

The carbon-footprinting process often produces surprises.An environmentally conscious consumer in the crisps aisle ofthe supermarket will probably be thinking about packaging or“food miles”. The Carbon Trust reckons that about one percent of the climate impact of a packet of crisps is from movingpotatoes around.

The largest single culprit is the production of the nitrogenfertiliser, and half of the climate impact in general takes place

at the agricultural stage. The point is not that agriculture isalways the problem, but that it is very hard for a well-

meaning consumer to work out what the greenpurchasing decision actually is.

For this reason, the Carbon Trust has a carbonlabelling scheme. The trouble is that many

consumers simply do not care enough to paymore or choose a less enjoyable product

simply because of the low carbon label.A government role is necessary, then,but it is even harder for governments

to regulate such fine details. All thisis why economists continue to

advocate some kind of carbonprice, which would give an

incentive to everyoneinvolved in these complex

supply chains to trimcarbon dioxideemissions.

A modest andcredible price forcarbon is slowlybecoming the

conventional policywisdom. It is a shame

we still don’t have it.Also published at

ft.com.

Carbon footprinting:time to pick up the paceBy Tim Harford

Euan Murray grew up on a sheep farm in southern Scotland; now he is in charge of“carbon footprinting” for corporate clients of the Carbon Trust. “If I ask my old man,‘What’s the carbon footprint of a sheep?’ he looks at me as though I’m mad,” heexplains. “But he can tell me the stocking density, what he feeds the sheep, and hecan answer those questions as part of running his business.”

Page 42: Agribusiness 2010

EDUCATION + TRAINING

The Rangelands Managementcoursework program is excitingbecause it offers improved access to

higher education, highly relevant coursesfocusing on current and emerging issues,and strong growth in participation by 30-50 year olds in this educationallydisadvantaged region.

The growth in enrolments of 650percent during the past three years is noaccident. The development of theprogram by Rangelands Australia hasbeen one of the most highly strategicknowledge and skill developmentinitiatives in Australia. It has beenunderpinned by surveys of knowledgeneeds and gaps, research on learningpreferences, engagement of hundreds ofstakeholders in guiding curriculum andcourse development, and innovativesupport for mature-aged students inremote areas.

The many benefits of this educationalapproach are now being realised at

personal, enterprise and communitylevels: • Personal benefits include greater

capacity to represent rangelandinterests and advocate for enterpriseand regional outcomes; increasedoptions for self-employment anddiversification; increased options forcareer advancement and careerchanges; and greater awareness ofthe critical issues facing rangelandenterprises and regions.

• Enterprise-level benefits include lowercosts and improved profitability;enhanced land condition; bettermanagement of trade-offs betweenproduction and conservationobjectives; better decision-makingand risk management; greatercapacity for innovation and managingchange; and better management andretention of the next generation.

• Community benefits include greaterawareness of national and global

issues facing regions, strongerleadership, and changing perceptionsof the value of higher education.

This ground-breaking initiative is aproduct of Rangelands Australia, a centrewithin The University of Queensland’sGatton Campus. The centre recently wonthe 2009 Australian Rural EducationAward, presented by the Society forProvision of Education in Rural Australia(SPERA), in recognition of excellence inrural education, expansion of educationalopportunities, and efficiency andeffectiveness of education.

It is the first time this award has beenconferred on a university-basededucation initiative. In accepting theaward, Rangelands Australia directorJohn Taylor acknowledged that theprogram’s success was a greattestament to the benefits of strategic,participatory, student-centered anddemand-driven approaches to theprovision of higher education.

Learning for a Futurein the Bush

John Taylor receiving the2009 Australian RuralEducation Award fromEmmy Terry, President ofSPERA, on behalf of theRangelands Australia team,the Rangeland Championsnetwork and The Universityof Queensland.

Building capacity for economic, environmental and social outcomes acrossAustralia’s vast rangelands – 75 percent of the land mass – is the aim of an excitingeducational initiative specifically designed to address widely perceived deficienciesin tertiary education.

40 • AGRIBUSINESS CHAIN V10#1

Page 43: Agribusiness 2010

Are you seeking …

• Relevant and contemporary courses to expand your knowledge and skills?

• Solutions to current and emerging issues in the bush?

• Practical and up-to-date management information, and applying it to your enterprise or region?

• A higher qualifi cation to further your career or infl uence?

• An interesting and different course or two to fi nish your higher degree?

Have you considered the Rangeland Management coursework program?

This practical and innovative program offers …

• Flexible entry – with or without a degree• Some Commonwealth-supported places• Study in external mode; from home, guided

by experienced facilitators and stimulated by interactions with people across Australia

• Study in intensive mode; meet with the facilitator and fellow students at a week-long workshop in a local centre

• Study in a small group at a local centre over a week in intensive mode

• Out-of-hours support through a national network of Rangeland Champions

• Nationally and internationally recognised qualifi cations.

Applications for enrolment close:

Semester 1, 2010 – 31 January 2010Semester 2, 2010 – 30 June 2010

For more information on courses and enrolment

Phone 07 5460 1660Email [email protected] Website www.rangelands-australia.com.au

Yes, it’s different to other postgraduate coursework programs in many ways …

• Program structure has been shaped by 450 stakeholders engaged in 24 focus groups across Australia

• Course content and resources have been infl uenced by over 250 experienced land managers, advisors, scientists, etc in scoping, writing and review of the courses

• Courses are practical and highly relevant to workplace, business and people’s future

• Involves industry and professionals in the delivery of courses

• Courses are aligned with industry, community and government priorities through a focus on ‘triple-bottom-line’ sustainability.

Rangeland-specifi c courses include …

• Sustainable production systems and regions• Building effective stakeholder engagements• Global and national trends, local scenarios• Diversifi cation and new industries• Managing self, developing and retaining others• Advanced rangeland ecology• Property, catchment and regional planning• Grazing land management• Rangeland monitoring and adaptive

management• Rangeland pest animals, weeds and biosecurity• Animal nutrition and behaviour • Animal wellbeing and health

Proudly supported by

Visit our website for all the necessary forms

LEARNING

IN THE BUSHFOR A FUTURE

Page 44: Agribusiness 2010

SALINITY

42 • AGRIBUSINESS CHAIN V10#1

T he events that trigger increasing incidence of salinity can beseparated in both time and space from the areas that areaffected. It may take many decades before saline water

tables rise sufficiently in response to widespread clearing ofperennial vegetation to cause the visual blot on the landscape thatsignals reduced productivity and risk of secondary erosion. Moretelling is the separation in space where consequences of activitiesundertaken in one area may turn up many kilometres away due tothe quirky nature of complex geomorphology below the soil’ssurface. As a result, actions taken by individual landholders tocombat salinity impacts on their properties may be unsuccessfulwithin a time frame acceptable to landholders and more tellingly,benefits may be realised in a diffused and probably undetectablemanner on distant properties.

This has been the argument for agencies to adopt a whole-of-catchment approach where studies are undertaken not only toidentify the hotspot sub-catchments but, with greaterunderstanding of the prevailing hydro-geological processes, areascontributing most to the catchment’s salinity hotspots can be

identified. For properties where there is a close proximity betweenthe casual areas and the affected areas, then landholders can takea similar approach with benefits to themselves and their nearneighbors. Such is the case at Talaheni, a 245ha property in theYass Valley on the Southern Tablelands (NSW). The Yass Valley haslong been recognised as a salinity hotspot gaining unflatteringfront-page headlines in the 1980s with: Yass the dryland salinitycapital of New South Wales.

By way of background, the area hosts tightly folded, butseverely fractured multiple and diverse beds (slates, sandstonesetc.) of Ordovician meta-sediments. The diverse characteristics ofthe sediment beds have, over geological time, resulted information of strikingly different soil types in very short distances.As a result rocky ridges bound variable slopes which in turn abutdeeper alluvial flats as shown in a stylised cross-section (Figure 1).A traverse of such a cross-section covers a range of soil types,each with distinctive physical characteristics that interact differentlywith rainfall with subsequent consequences for salinity in the valley.

Dam SalinityA report card on our risk and progressBy John Ive, Talaheni

Salinity is widely recognised as one of the more serious land degradationprocesses that are affecting our agricultural lands—whether irrigated or dryland.Likewise it is generally recognised that the cause of salinity is a discrepancy in thewater-balance equation, usually as a result of replacing deep-rooting perennialvegetation with shallow-rooting annual crops and pastures that have been thebackbone of Australia’s agricultural scene for many decades.

Page 45: Agribusiness 2010

SALINITY

Figure 1: A typical cross-section of the Yass Valley reflecting the different soil typesassociated with landscape position. Each soil type has its own unique characteristicsincluding infiltration rate and soil-water holding capacity. In general infiltration rate ishighest and soil-water holding capacity lowest in the landscape.

From the perspective of dryland salinity the important point ofthe soils associated with such a transect is that infiltration ratesdecrease and soil-water holding capacities increase as one movesfrom ridge to flat. The stony ridges provide high infiltration ratesand an elevated hydraulic head yielding groundwater at pressureto the lower flats. Consequently the ridges have low salinity riskper se; and unfortunately little agricultural potential. Ironically therisk generated by the ridges is ‘transported’ to the nearby muchmore productive flats little by little depressing their productivepotential.

The crux to any management action is to monitor the responseto those actions. The old adage is: if you do not measure it youcannot manage it. Normally salinity conditions are monitored via anetwork of piezometers which allow water table levels to beregularly measured and salinity of the water table assessed. Overtime, trends can be established in response to managementactions. However, the cost of installing a piezometer network issignificant and cannot be undertaken with normal farm equipmentand requires specific technical skills. An alternative may lay withthe farm dams which dot the agricultural landscape. Such is thecase on Talaheni where 38 dams are available to keep an eye onsalinity trends which give much wider coverage than the twelvepiezometers installed at significant cost.

The argument goes that dams can reflect the salinity status oftheir respective catchments with salt content the combined resultof two main sources. Firstly, if a saline water table is closer to thesurface than the bottom of the dam then, depending upon damlevel and seepage rates, saline water will seep into the dam; thecloser the water table is to the soil surface the more seepage willcontribute to the dam’s stored contents. Secondly, evaporationfrom saline seeps in the dam’s catchment leaves salt on thesurface which, when rain results in runoff, moves salty water to thedam. Therefore the salinity of a dam’s water is a cocktail of thesalt-laden runoff and saline seepage from any elevated watertable. Periodic measurement of the salinity levels of farm dams cangive an insight into the trends in salinity across a property, indeed agroup of properties and also differentiate dam catchments on theirsalinity status. Because of the seasonal nature of rainfall,monitoring dam salinity levels is best undertaken at a similar timeof the year.

Given annual average evaporation from a farm dam in the Yassregion is about 1700mm per year – that is, about the third of thedepth (and half the volume) of an average farm dam, the saltconcentration in the dam increases over time with ongoingevaporation. In the absence of any runoff the salt concentration ofa little-used dam would double in a year. As the dam fills, the saltconcentration is diluted although more salt would be received withthe incoming runoff. Once full, further runoff will lead to someflushing with increasingly less saline runoff. However, in droughtperiods runoff declines and dam overflow becomes a rare event.Therefore during dry periods one would expect salinity levels toincrease during periods of below average rainfall due to ongoingelevated evaporation rate combined with relatively salt ladenalthough limited inflows and reduced opportunity for flushing.Simultaneously however, drought conditions reduce recharge, andthe water table declines with subsequent reduction in saltaccumulation at the surface as seeps recede. Additionally a lowerwater table reduces the opportunity for saline seepage into dams.

Figure 2: Salinity levels of 38 farm dams (blue dots) which have been attributed toeach dam’s catchment area as measured in March 2008. The highest salinity levels(red) occur in the north, north-east sector. The salinity levels can be looked at in termsof current vegetation types (Fig. 6).

Figure 3: Change in salinity of the dam which, at the time of the first measurement,had the highest salinity level. The decline in salinity level has averaged over 200 ECunits (μS/cm) per year over the past ten years at a relatively constant rate.

Dam salinity measurements have been taken on Talaheni since25th December 2000 which spans an extended period of belowaverage rainfall conditions which started its downturn in December2000. Choosing the dam which initially had the highest salinitylevel and tracing its fate over the period shows an impressive andconsistent decline in salinity levels at an average rate of over 200EC units per year (R2= -0.938, Figure 3) and now comparesfavorably with Canberra’s domestic water supply which is currently85 EC units. Given the strength of the relationship (Figure 3) thesalinity level of the dam prior to commencing remedial action in1980 could arguably have been over 6000 EC units; this would beconsistent with the extent of dryland salinity symptoms apparent atthe time (e.g. saline seeps occupied 23 per cent of Talaheni, nowless than one per cent) and the water table decline since 1990when direct weekly measurements commenced. For comparison,the World Health Organisation’s (WHO) preferred upper limit forhuman consumption is 800 EC units and sea water is 54 500 ECunits.

The decline in the dam’s salinity level is seen as a particularlysignificant response to the ameliorative actions taken to addressdryland salinity, as the decline has been achieved during aprolonged dry period during which salinity levels of farm damswould be normally expected to increase due to higher evaporation

AGRIBUSINESS CHAIN V10#1 • 43

Page 46: Agribusiness 2010

SALINITY

and reduced inflows. Indeed the catchment of this dam includesthe area where work was initially started in 1988 to address salinitywith the planting of four hectares of the high recharge ridge tonative trees and reinvigorating declining exotic perennial pastureson the flats by landscape fencing to allow better grazingmanagement and strategic use of fertiliser to foster greater pasturevigour and production. Furthermore, the trend shown by this damis consistent with the average trend across all dams (Figure 4),although the average trend is, by definition, not nearly so dramaticviz., 36 compared to 212 EC units per year, reflecting the greaterannual decline in salinity levels for dams with the highest initialsalinity level. Consequently salinity levels of all dams are nowsignificantly below the WHO upper limit.

Figure 4: The mean salinity response of the 38 dams on Talaheni over the past tenyears which has seen an average decline of 36 EC units per year R2= -0.849).

Each dot (Figure 4) represents the average of the thirty-eightindividual dam measurements and gives an overview of the declinein salinity. The fact that salinity levels of dams have declinedrelatively consistently during the extended dry period is seen asevidence collaborating with the decline in depth to and salinity ofthe water table as recorded by weekly measurement since 1990from a network of piezometers.

Returning to spatial variation in salinity levels across Talaheni(Figure 2) and attributing the salinity level of each dam to itscatchment, it is obvious that the northern portion of Talaheni isexpressing higher salinity levels in the farm dams than thesouthern area with a secondary pattern of dams higher in thelandscape having lower salinity levels than their lower counterparts– reflecting in part the reduced opportunity for sub-surfaceseepage into such dams. The salinity map can be compared withthe SPOT5 image (Figure 5) and the farm plan land use map(Figure 6) which show the distribution of various forms ofvegetation which have been chosen in accordance with soil andlandscape characteristics.

Interestingly for the majority of the piezometers, the water levelis lower than the bottom of the piezometer so it is no longerpossible to monitor the water table and therefore keep an eye onthe salinity situation; on the other hand all dams continue to holdwater and to receive sporadic inflows when rainfall permits therebyoffering an ongoing opportunity to continue to track the responseto dryland salinity management.

Dryland salinity management has included the establishment oftrees on the high recharge areas where soil characteristics(particularly soil-water holding capacity) were an anathema to theestablishment and persistence of vigorous perennial pasture. Treeestablishment has involved grazing management during dry andsubsequent favourable rainfall periods where seed trees remainedand planting tubestock in areas lacking seed trees. Exoticperennial pastures have been established on flats and lowerslopes, areas often reclaimed from severe salinity conditions. Theselection of appropriate vegetation and its management has beenassisted by the refencing of Talaheni on major soil and landscapecharacteristics (Figure 2) with fences often closely coinciding withdam sub catchment boundaries which assists in identifying andtargeting management appropriate to the sub catchment.

Figure 5: SPOT5 image of Talaheni reflecting tree coverage, primarily on central ridgewhich has high recharge potential; and the mosaic of different vegetation types whichcan be interpreted from Figure 6.

Figure 6: Current farm plan reflecting fencing pattern based on soil and landscapecharacteristics and the different vegetation types which have been tailored to thesecharacteristics.

From the evidence gathered over the past ten years, farmsdams have provided a means of keeping a track on the responseto managing dryland salinity providing an ongoing report card ofencouraging success. Over the same period nearly all of thepiezometers installed for monitoring progress have progressivelygone dry in response to below average rainfall and provide noinsight to the improved salinity situation over the past ten years.

Contact the author: [email protected]

44 • AGRIBUSINESS CHAIN V10#1

Page 47: Agribusiness 2010

FARM MACHINERY + EQUIPMENT

The expanded Defender model range is now available inAustralia, with a number of new derivatives that cater forboth lifestyle and commercial buyers. The 09MY Defender

model line up now includes five 110 wheelbase and three 130wheelbase variants, offering features that apply to off roadusers or heavy duty payload seekers.

With the new expanded Defender range Land Rover nowpresents users with a strong and highly differentiated alternativefor the heavy duty 4WD pickup sector: permanent 4WD, twowheelbase offerings, efficient 2.4 litre common rail engine, sixspeed manual transmission and use of alloy body panels.

Defender dates back to 1948 when the Land Rover Series 1was launched. In the sixty one years since its launch, Defenderhas developed an iconic profile and has become the authenticvehicle of choice for extreme conditions. Almost 1.9 millionunits have been sold to retail customers, utility serviceproviders, armed forces and NGOs in over 100 countries.

Defender customers worldwide value its legendary strength,robustness and performance alongside its class-leading blendof towing and load-carrying versatility. It’s the uniquecombination of these attributes that accounts for Defender’sexceptionally high levels of customer loyalty.

The Defender model range consists of the following:• 110 Station Wagon • 110 Single Cab Chassis • 110 Single Cab Chassis HCPU (High Capacity Pick Up)• 110 Hard Top • 110 Crew Cab Pick Up • 130 Single Cab Chassis • 130 Crew Cab Chassis

• 130 Crew Cab HCPU (High Capacity Pick Up) For users who require serious payload carrying capabilities,

all Defender 130 models are fitted with heavy duty suspensionand chassis reinforcements to provide a class leading GVM of3,500kg. The Defender 110 models can specified withElectronic Traction Control to provide even greater levels of off-road performance.

Land Rover is immensely proud of Defender’s reputation foroff-road supremacy and dependability, it will get you there andback, regardless of climate or terrain. Now with this extendedrange, Defender offers even more specialised variants to bettersuit the off road and load carrying requirements of itscustomers.

Back, Better Than Ever

AGRIBUSINESS CHAIN V10#1 • 45

Page 48: Agribusiness 2010

FARM MACHINERY + EQUIPMENT

46 • AGRIBUSINESS CHAIN V10#1

Convenient, portable and easy to use, it is an idealweapon in keep in your arsenal. The PullzAll can liftor pull up to 454 kilos, making light work of heavy

jobs. This tool will replace manual winches and chainblocks. It is in essence the modern day electrical blockand tackle. The PullzAll is perfectly suited to the work offarmers, mechanics and labourers everywhere.

Fencing. Welding. Lifting. Pulling. You can do it allyourself.

The PullzAll is available in two models, a 24V cordlesswith rechargeable battery pack and a standard 230V ACcorded model. Supplied with 4.5M of 5.5MM wire rope,the PullzAll features one touch forward/ reverse modes,rear swivelling anchor hook, variable speed control forprocession placement and electronic load limiter withLED indicator for operator feedback. The cordlessPullzAll weighs 8.2Kg and comes packaged withcharger and spare 24V rechargeable battery, while thecorded PullzAll weighs just 7Kg and runs on standard 230V ACpower. Both models are capable of lifting or moving up to454Kg.

The PullzAll can make a tremendous difference in the amount

of work just one man can do. Its uses range from construction,iron work, auto shops, equipment and plant maintenance,machine shops, garages and pipe fitting to erecting andmaintain fencing, moving or disassembling heavy machinery orsimply loading and unloading heavy equipment.

The PullzAl is especially easy to set up and use. Simplyattach the anchor hook to your chosen mount point, unspoolthe wire rope using the hook strap for safety and attach to yourload. Select either variable speed mode for short distancepulling for fine positioning or full speed mode for long distancepulls.

The PullzAll is generating a lot of buzz in retail circles,undertaking a national television advertising campaign and nowstocked at Mitre 10 stores. The PullzAll takes the labour out ofevery lifting job you can think of. Manufactured by WarnWinches, who are regarded worldwide as the best winch brandon the market, the PullzAll is supported by Ateco through itsAustralia wide distribution network for sales and parts support.

For more information visit www.pullzall.com.au orcall 1 300 669 951 if you are interesting in stocking the PullzAll.

The PullzAll is the extrahand you needIf you’re out the backpaddock and your fence isfalling down.

If your trailer needs a towin Tamworth.

If you are welding inWagga Wagga.

If you just need anotherset of hands to pull youthrough the day – ThePullzAll is for you.

Page 49: Agribusiness 2010

Those back breaking days are over. With new PullzAll™

you now have a portable, handheld power machine

weighing only 7kg*, that is designed to pull, lift, haul

or drag up to 450 kilos at the flick of a switch.

PullzAll™ is a one man workforce, equipped with a

4.5 metre wire rope and a variable speed trigger for

precise control. It features an integrated directional

switch that enables you to instantly change direction,

giving you the ability to stop and hold a load exactly

where you want it. And for flexibility, PullzAll™ comes

in corded or cordless models with an extra battery.

The new lightweight PullzAll™ has real pulling power.

The only thing you have to weigh up is how many jobs

it can tackle. *Corded model

Check with your local hardware or tool supplier or phone 1300 669 951

EM081308_CM

THE LIGHTWEIGHT PORTABLE LIFTING DEVICE.

Wholesale enquiries welcome

Page 50: Agribusiness 2010

FARM MACHINERY + EQUIPMENT

48 • AGRIBUSINESS CHAIN V10#1

Unlike many imported batteries whichare designed for European marketsand colder climates, Century’s Ultra

Hi Performance Severe Service battery ismade here in Australia for our conditions.It features many substantial designimprovements to deliver what heavyequipment and plant operators reallywant, longer life and ultra reliability withless down time.

Designed for more than just startingpower, the Ultra Hi Performance SevereService battery can sustain constantcurrent loads to power on-boardaccessories.

Thicker, more durable componentsprovide improved corrosion resistance,reduced water loss and longer battery lifewhilst Century’s exclusive Platelock™design and specialist Glass Matseparators, bind the battery platessecurely together to resist the effects ofvibration damage and help prevent earlybattery failure.

Backed by a fully comprehensive 18month nationwide warranty, the Ultra HiPerformance Severe Service batteryfeatures a built in easy to read waterindicator to quickly determine fluid levelswhilst the maintainable design enableseasy access to top up electrolyte levelsfor maximum control over battery life.

In today’s competitive world ofbatteries one name is synonymous withquality, durability and reliability—CenturyBatteries.

Century batteries have beenmanufacturing and designing batterieshere in Australia since 1928 and in thistime have developed the engineering andmanufacturing expertise to produce arange of superior quality batteries bettersuited to Australia’s harsh climate andextreme working environment.

Not all batteries are created equal—Choose a Century Ultra Hi PerformanceSevere Service battery and see why it’searned the trust of Australians on theland.

For more information on the CenturySevere Service Battery and the completeUltra Hi Performance range call 1300 362287 or visit www.centurybatteries.com.au

Life on the Land just got easierthanks to Century BatteriesCentury’s Ultra Hi Performance Severe Service battery represents the latest inperformance and reliability for trucks, farm and heavy equipment.

Page 51: Agribusiness 2010

FARM MACHINERY + EQUIPMENT

AGRIBUSINESS CHAIN V10#1 • 49

Phillbourne offered the market a newstyle of pickup during 2005.Rollerdown is a name coined to

describe the mechanised hold down. Ithas now become a byword for betterharvesting canola and barley. InDecember, it had about 300 Rollerdownunits working in Australia. Phillbourne nolonger sells the older style units. It is soldas a triple package of pickup, falsefrontand Rollerdown that combined as oneunit usually matched to a particularharvester.

Two other ways to buy Rollerdown areas kit to add to older-style machines, oras a conversion of an older-style pickup.The Conversion is getting popular andPhillbourne can convert an older machinefor about one third of the cost of a newTrio. Phillbourne has a policy ofcontinuous improvement. Its latestsuccess has been the introduction ofrubber coated drive rollers. They reducebelt slippage which increases theharvesting window in awkwardconditions.

Phillbourne now offers heavy duty fueltrailers with steel tanks, regulation lightsand brakes etc. Sizes are 2000L and4000L and these are available with orwithout pumping equipment.

For further information contact:Phillbourne ManufacturingTel: (08) 9041 2066Fax: (08) 9041 2073

Rollerdown for better barley,canola harvesting

Page 52: Agribusiness 2010

know the road ahead

Visit our website and access latest releases and reports, ABARE surveys, download data, register for conferences

or contact ABARE for more information on +61 2 6272 2010 or [email protected]

Australian Bureau of Agricultural and Resource Economics

Page 53: Agribusiness 2010

FARM MACHINERY + EQUIPMENT

AGRIBUSINESS CHAIN V10#1 • 51

What’s in a name? Quite a bit actually – especially when

it comes to tractors. John Deere announces it’s

currently transitioning to a new name and number

system for its full line of tractors with the introduction of the new

5D, 5E, 5M, and 6D Series Tractors.

“The updated name and numbering system is unique to John

Deere and allows for a more consistent approach to naming our

equipment around the world,” says Kevin Platz, John Deere

Strategic Marketing. “This new system allows customers to

more quickly and easily identify the engine horsepower of a

tractor, its capability, and its size by looking at the hood decal,”

Platz adds.

Each new tractor model number has six available positions.

The first position is a number and represents its size. The

second, third, and fourth positions are numbers and denote its

relative metric engine horsepower according to 97/68/EC

Standards. The fifth position is a letter and indicates its

capability and/or price level within its family.

This new system does away with the word thousand in the

series title. The name and numbering switch will not be

immediate for all John Deere tractors. Instead it will be phased

in over time when new product families are introduced.

For more information, visit our website at

www.JohnDeere.com.au or FREECALL 1800 800 981 in Australia

to contact your local John Deere dealer.

John Deere announces new equipment nameand numbering system

The only thing more impressive than John Deere equipment?

The people standing behind it.

When you buy a piece of John Deere equipment there are many features, options and extras to help increase your productivity and

Professional support from the John Deere dealer network. Our Parts Distribution Centre houses over 85,000 lines; available to be shipped 24 hours a day, 7 days a week. In addition, our network of 207 dealerships have an extensive range of maintenance parts in stock, at your disposal. All our equipment is fully supported by one of the broadest dealer networks in the agricultural business, so advice, parts and service are all readily available when needed. 1800 800 981 | www.JohnDeere.com.au

6 1 1 5 D -

Size Engine HorsepowerCapability,price level

Specificconfiguration

Page 54: Agribusiness 2010

WATER

52 • AGRIBUSINESS CHAIN V10#1

T here is a reason for that: water is a scarce and vitalcommodity. The people left with the licenses are nowsitting on gold and you know how gold prices are at the

moment.In September 2009, hundreds of water trades in Victoria

were allowed after a 10 per cent cap on entitlements wasofficially granted.

Victorian Water Minister Tim Holding says removing the capon non-water users will give irrigators greater choice.”It alsofrees up water to be purchased from sellers as part of theAustralian Government’s buyback program to return water tothe Murray River for the benefit of the environment,’’ he said ina release.

The cap on the volume of water entitlements that can beowned by non-landowners had been in place since 2007. The10 per cent restriction had existed to ease concerns that bigcorporate clients would gobble up vast amounts of water andcontrol the market price.

How River Murray Water came aboutFrom the mid-1990s, a number of factors have beeninfluencing Australian water authorities to create morebusiness-like arrangements for water delivery services. The twomost important factors are:

Separating service delivery from regulatory and resourcemanagement policy matters so as to achieve clear andeffective outcomes; and

Putting pricing for services on a clear basis which removescross-subsidies, promotes efficiencies, and ensuressustainability of the assets of the business through full costrecovery.

The Council of Australian Governments, when endorsing in1994 a strategic framework for the efficient and sustainablereforms of the water industry, specifically required the Murray-Darling Basin Ministerial Council to put in place: ‘arrangementsso that out of charges for water, funds for the futuremaintenance, refurbishment and/or updgrading of theheadworks and other structures under the Commission’scontrol be provided.’

In response to these various drivers, the Ministerial Councildecided that a ‘water business’ should be established with themission:

“In accordance with the Council of Australian Governmentswater resource policy and Murray-Darling Basin Commissionpolicies, to contract with each owner of the water to provide adelivery service which generates adequate revenue to alloweffective maintenance and long term replacement/creation ofassets and the move towards a positive real rate of return inaccordance with a timetable agreed with the owners of thebusiness.”

Following developmental work by an advisory committee,River Murray Water was established on 1 January 1998 as aninternal business unit of the Commission. A Board operating asa committee of commission guides the activities of RiverMurray Water.

Further information:• www.environment.gov.au/water/• www.g-mwater.com.au/water-resources/

catchments/uppermurraybasin• www.abs.gov.au/ausstats

Water is tomorrow’s GoldThe cool waters are setting people’s hearts on fire. Water is slowly and steadilyclimbing up the trading charts and the government is slowly buying up watertrading licences whilst placing an embargo on issuing new licences.

Page 55: Agribusiness 2010

CRISIS SUPPORT

MensLine Australia has supplied telephone support to

rural men since the drought began, through the

recent fires, floods, and the global financial crisis. The

pressures have been, and continue to be considerable. We

recognise the cost to family, community and livelihood of men

being out of sorts and respond to them day or night

throughout the year. We have a call-back service to support

people over time, ideal for those too far from other services or

waiting for an appointment.

Every month roughly 4000 men call MensLine Australia,

mainly to discuss relationship and family matters. The service

was designed for and about men and their issues, the popular

www.menslineaus.org.au website provides up to date

information and tips on subjects like managing separation,

dealing with anger, unwanted pregnancy, first time dads etc.

and the web forums help men speak to others in similar

situations.

MensLine Australia provides a no-blame, no-shame ear, as

well as additional information and referral options. Stop

problems becoming a crisis and pick up the phone.

The cost of a local call provides a professional, totally

confidential and anonymous safe place to ‘talk it over’. It’s

okay to ask for help ... don’t let isolation get the better of you;

break the silence and call MensLine Australia.

MensLine Australia is a joint venture of Department of

Families, Housing, Community Services and Indigenous Affairs

(FaHCSIA) and Crisis Support Services Inc (CSS). CSS also

manages a number of other services including beyondblue Info

Line, SuicideLine (Victoria), and Suicide Call Back Service.

It’s okay to askfor help…

Call Mensline Australia for help andinformation about:• Difficult situations at work• Changes in relationships• Being a good father• Dealing with separation• Coaching and counselling.

Talk it over with specialist professionalcounsellors, 24 hours a day,seven days a week for the cost of alocal call.

A service managed by Crisis Support Services Inc.

It’s okayto ask forhelp…

1300 78 99 78www.menslineaus.org.au

AGRIBUSINESS CHAIN V10#1 • 53

Page 56: Agribusiness 2010

RURAL PROPERTY MARKET

Raised in the small town of Woodenbong, right onthe Queensland border, Bruce McGregor hasexperienced the ongoing change of rural and

regional agency over many years.Bruce’s earliest memories are of the mid-fifties cattle

sales at Woodenbong saleyards and his excitement forand interest in the saleyards and stock sales hasremained a life-long passion. He commenced work asjunior in 1968 with Reg Lehman and Sons in Kyoglebefore joining Elders’ Goldsborough Mort for service inGrafton Forbes Bourke Dubbo and Mudgee branches.

That experience provided a foundation for a careerbased in rural property marketing across central NSW,specialisation in auction marketing and support servicesfor regionally based agents.

Bruce now works for First National Real Estate, a realestate cooperative that was founded in country Victoriain the early 1980s and now boasts some 500 membersacross Australia and New Zealand. His role as NationalRural Manager involves the development of thenetwork’s rural chapter, working with far-flung membersto ensure their needs are heard, and the recruitment ofnew rural estate agencies.

The network has spent recent years rebuilding itself, inpreparation for the opportunities that lie ahead as

independent and franchise agents face the necessity toembrace technology as one of the fundamental, newcompetitive arenas of the business. Superior systemscombined with Best Practice Quality Assurance andSearch Engine Optimisation is seen as a winningcombination that will assure that First National’s agentscontinue to deliver the best property services available inAustralia.

‘The network is positioning itself for growth through acompletely re-built suite of technology, products andservices. This, combined with a totally refreshed brandwill increase the network’s exposure across rural andmetropolitan Australia. Its industry leading technologyand national referral network, combined with theindependent skills and local knowledge of agents at thefarm doorstep, gives the network a leading edge’ saysMcGregor.

‘First National is committed to building its alreadysubstantial presence in rural Australia, so, I’m activelyseeking to recruit quality rural agencies. Our technologyadvancements will help insure we provide not only up tothe minute market advice to vendors, but also acomprehensive service to provide property details andregular contact with potential buyers and investorsseeking rural property’.

Stock and Station in the bloodBruce McGregor, National Rural Manager, First National Real Estate

54 • AGRIBUSINESS CHAIN V10#1

Page 57: Agribusiness 2010

Thousands of propertiesOne great address

Offering a broad range of rural properties, as well as:

Thousands of rural propertiesOne great address

firstnationalrural.com.au

Local knowledge, national strength. Choose First National to buy or sell your rural property.

Page 58: Agribusiness 2010

RURAL PROPERTY MARKET

Australians are being bombarded with a multitude ofopinions, reports and ‘expert’ predictions concerningenvironmental issues as the information age makes global

research and information instantly available to everyone.In a recent survey, 90 per cent of the Australia’s CEO’s

admitted they did not fully understand the potential impact ofthe Emissions Trading Scheme (ETS) on their business, so it’sperhaps not surprising that estate agents and their customersmay struggle to appreciate the potential effect of environmentalissues on the property market.

First National Real Estate has little doubt that the changes inrural enterprise, as a result of altered environmentalcircumstances, will influence property management, values,livestock husbandry, farming and irrigation practises which will,in turn, drive and direct the level of market activity for all typesof rural enterprises.

Farmers will need to endeavour to improve the value of theirassets while developing management protocols to meet withcommunity expectations and government directives.Maximising capital growth will require long-term planning offarm management practices and comprehensive recordkeeping.

Environmental matters such as toxicity, chemical usage andland management cannot be ignored and improvedinfrastructure for animal husbandry as well as occupational

health and safety protocols will be necessary. Water supply andits usage will only become more contentious.

Around the world there is significant and growing support foraction to address climate change. First National believes amajority of Australians want to see action from government, butremain uncertain about how and where they can contribute tochange in their own domain.

First National has determined it can play a role by educatingthe thousands of people it comes in contact with through itsproperty services every day of the week. Forging an alliancewith Greening Australia and Archicentre, it has developed aseries of educational materials that help improve energyefficiency in homes and is encouraging consumers to plannative gardens in an effort to help the unique Australianenvironment and to reduce water consumption.

The one certainty in this overall landscape is that Australianingenuity will come to the fore and environmental challenges willbe addressed.

The value of rural enterprise land will continue to grow as theworld endeavours to feed a rapidly burgeoning population fromfarmland, which will remain under pressure from expandingurban areas and mining interests. Australia will be competitive inproviding rural commodities and traditional farming families willcontinue to be underwritten by investment interests both locallyand internationally.

Carbon Credits, Sustainability,Climate Change – Green Issues AboundThe rural property market, like most real estate markets, traditionally moves incycles of seven to ten years, with positive growth historically occurring over thelonger cycle. However, its values are additionally influenced by a wide range offactors encompassing commodity prices, economic conditions and seasonalclimates. These variances make it difficult to forecast national trends.

56 • AGRIBUSINESS CHAIN V10#1

Page 59: Agribusiness 2010

WATER

AGRIBUSINESS CHAIN V10#1 • 57

INTERNATIONAL CASE STUDY:

Using technology to save waterBy Dennis O’Brien, Agricultural Research Service Information Staff.

With climate change expected to raise temperatures worldwide and makerainfall patterns harder to predict, pressure is mounting on farmers—whouse up to 60 percent of the world’s fresh water—to cut back on water use.Nowhere is the US water supply a more severe problem than in theSouthwest, where droughts are common, reservoirs are closely monitored,and population growth is increasing demand. 

Visiting University of Arizona research specialist Patrick Royer(foreground) records the water advance time in a cotton furrow while

ARS physical science technician Dick Simer measures the furrow waterdepth. The data is used to estimate the actual amount of irrigation water

that infiltrates at sections along the cotton furrow.

Page 60: Agribusiness 2010

WATER

58 • AGRIBUSINESS CHAIN V10#1

A RS scientists in the Southwest are developing toolsaimed at saving every possible drop with the help ofsatellite data, computer models, remote sensing, and

other technologies. At the Arid-Land Agricultural ResearchCenter in Maricopa, Arizona, Doug Hunsaker is developing asensor system that can determine the water needs of smallclusters of crops. And at the Jornada Experimental Range inLas Cruces, New Mexico, Al Rango is beefing up computermodels and the network of sensors scattered throughout theRocky Mountains that help forecast runoff into the Rio Grande,a crucial water source for farmers in Colorado, New Mexico,Texas, and Mexico.

Impact of Altered SnowmeltThe Rio Grande gets more than half of its water from snowmelting off the Rockies in southern Colorado and northern NewMexico, a region where population growth is straining watersupplies. Climate change is expected to diminish thosesnowpacks and alter when water flows from them into rivers,says Rango, a hydrologist.

Snow starts melting in the New Mexico mountains in lateMarch and continues until late August. But climate changecould disrupt that cycle. Temperatures in New Mexico haveincreased about 2˚C in summer and about 1˚C in winter overthe past 10 or 20 years. That rise is expected to continue,producing earlier snowmelt and altering when water becomesavailable for crops grown in the Rio Grande basin, such ascotton, onions, chillies, and pecans, Rango says.

With climate change expected to alter snowmelt patterns,researchers need better information. Rango is a principalinvestigator for part of a 5-year National Science Foundationproject that will help states collect better data on watersupplies and help scientists better understand the effects ofclimate change on water supplies in the Southwest. Researchis also being conducted by New Mexico State University, NewMexico Tech in Socorro, and the University of New Mexico inAlbuquerque as part of the project.

Rango and his colleagues have spent 30 years predictingsnowmelt runoff levels with a computer model he developed inthe late 1970s and has been upgrading ever since. HisSnowmelt Runoff Model (SRM) uses climate-changealgorithms, imagery of snowpacks from National Aeronautics

and Space Administration satellites, and data from ground-based SNOTEL sensors in 11 western states to measure waterlevels. Information is transmitted to relay stations and postedby USDA’s Natural Resources Conservation Service (NRCS)online atwww.id.nrcs.usda.gov/snow/siteinfo/typical_snotel.html.

Rango and his team will install 5 new gauges in the NRCSSNOTEL sensor network and upgrade 12 others, all in NewMexico, to improve runoff forecasts from snowpack. Rango’sresearch should help farmers decide which crops to plant andwhen to plant them. It will also help public officials decide howreservoirs should be operated, whether reservoir water shouldbe stored or released, how much water should be used togenerate electrical power, how flood-control measures can beimplemented, and how much water should be reserved to saveendangered species.

“Change in timing and quantity of runoff is something water-management agencies need to know. They don’t know whatthe effects on the water resources will be, and they need toknow because water-management policies may have tochange,” Rango says.

Tracking Water on Small ParcelsTraditionally, farmers irrigate by the calendar, but that can bewasteful—at times giving crops more water than they need.But Doug Hunsaker is using an assortment of remote-sensingtechnologies—sensors mounted on tractors or planted in thesoil, along with an unmanned aerial vehicle and an occasionalhelicopter flight—to find ways of conserving water byestimating crop needs at specific sections within fields, ratherthan assuming those needs are the same in all sections of thefield.

Hunsaker is testing a tractor-mounted visible and near-infrared sensor on small fields of cotton and wheat. Thesensors, initially designed to detect nitrogen levels in soils, usered and near-infrared signals to estimate evapotranspiration—the amount of water transpired from a plant plus thatevaporated from the soil. The sensors take readings as thetractor goes up and down the field during cultivation. They lookand work like small cameras and are equipped with a globalpositioning system so they can give a precise reading of thelocation where the data was collected.

Agricultural engineer Doug Hunsaker performs precise irrigation scheduling of cotton at the Maricopa Agricultural Center in Arizona.

Page 61: Agribusiness 2010

WATER

In Hunsaker’s system, data on soil moisture levels and wateruse by plants—collected from the tractor-mounted andground-based sensors—would ultimately be tied into databeamed from satellites.

Hunsaker is also using remote-sensing data collected froman unmanned aircraft—on loan from the University of Arizona—that provides additional information on crop water use as it fliesover a field. Helicopter flights, made once every two weeks aspart of Hunsaker’s fieldwork, also provide complete remote-sensing images of the entire field. Data collected by thehelicopter flights is a proxy for information that will one day becollected by satellites.

“As technology improves, satellites will be able to do whatwe now do with helicopters so that farmers will be usingsatellite imagery to determine water needs,” Hunsaker says. Hehas used the technology to study the water needs of camelinaand lesquerella, two oilseed crops, but has focused mostly onsmall fields of cotton and wheat. He is currently testing thetechnology’s effectiveness at determining actual soil moisturelevels and growth rates in a 12-acre cotton field, divided into16 plots, and he plans tests in a wheat field of comparable sizein 2010.

Farmers are already using remote-sensing technology tomonitor crops and field conditions, but the goal is a newsystem capable of collecting data that farmers can use todetermine daily water needs of smaller field sections. Ideally,farmers could identify areas with low or high water needs and,using either a drip or a sprinkler system, adjust irrigation levelsbased on the data.

Hunsaker compares the system to keeping a checkbook ofeach plant’s water needs. “There’s a reservoir of water in thesoil. Each day it’s depleted by the plant, and we’re keepingtrack of that. Once the water amount reaches a certain

threshold, we know it’s time to water, and we know how muchit needs. We’re able to monitor with a kind of a ‘chequebook’approach,” he says.

The research is part of Pasture, Forage, and Range LandSystems (#215) and Water Availability and WatershedManagement (#211), two ARS programs described on the WorldWide Web at www.nps.ars.usda.gov.

To reach scientists featured in this article, contact Dennis O’Brien,[email protected],or USDA-ARS Information Staff,www.ars.usda.gov/News/News.htm

AGRIBUSINESS CHAIN V10#1 • 59

Hydrologist Al Rango (foreground) and former postdoctoral research associateEnrique Gomez-Landesa evaluate output from predictive models of water runoffinto the Upper Rio Grande basin.

View of cotton field from helicopter showing reflectance tarps used in calibratingmultispectral imagery equipment.

Physical scientist Tom Clarke aligns ARS-designed radiometers for monitoringcotton growth. The radiometer clusters are installed in a digital network that is alow-cost way to deliver real-time crop information over the Internet.

Before takeoff, physical scientist Andrew French prepares camera equipment forairborne multispectral imaging. The data collected is used to estimate crop wateruse.

Page 62: Agribusiness 2010

IRRIGATION

60 • AGRIBUSINESS CHAIN V10#1

Water storage managementWater storages (reservoirs) play a vital role in the supply ofwater for irrigation farms. Storages smooth variation in thesupply of water and in the value of water over time. Appropriatemanagement of water storages is particularly important inAustralia, given the extreme variability of inflows andpredictions of lower and more variable inflows within theMurray-Darling Basin because of climate change.

The management of irrigation water storages involvescomparison of the benefits of consuming water today againstthe expected benefits of storing water for future use. InAustralia, state governments have traditionally centrallymanaged the major water storages, making decisions on waterallocations (water released for consumption in the currentperiod) given prevailing storage levels. However, determining

what proportion of available water to store for the future (andhow much to consume now) is a complex problem given thepresence of substantial uncertainty over future inflows andwater demands.

Centralised storage managementFor a centralised storage management policy to achieve anefficient allocation of water across time and across irrigators, anumber of conditions must be met. First, the dam managerrequires complete information on the water needs of irrigators.Second, trade in water allocations must be efficient andcostless. Under these conditions, the optimal aggregateamount of water would be released each period and this wouldbe efficiently allocated across individual irrigators via trade inwater allocations.

Management of irrigationwater storages: carryoverrights and capacity sharingBy Neal Hughes and Tim Goesch ABARE research report

This article is a summary of the full report and represents the first part of a two part project investigating the management of irrigation waterstorages. The report focuses on the economics of storage management and the potential advantages of a capacity sharing approach. Thesecond part of this project examines in detail two capacity sharing schemes implemented in Queensland – St George and MacIntyre Brook. Theresults of the second part of the project are presented in a subsequent ABARE research report: Capacity sharing in the St George and MacIntyreBrook irrigation schemes in southern Queensland. For further information about the full version of both of these reports, visit: www.abare.gov.au

Page 63: Agribusiness 2010

IRRIGATION

In practice, these conditions may not be met and acentralised approach may lead to an inefficient allocation ofwater. In particular there may be asymmetric informationbetween the storage manager and irrigators, and transactioncosts in water trade.

Asymmetric informationAsymmetric information means that irrigators are likely to haveinformation on their water demands that is not available to dammanagers. Obtaining information on water preferences fromindividual irrigators may be difficult for a number of reasons.First, water preferences are likely to vary significantly acrossdifferent irrigators because of differences in crop types.

Second, irrigators’ water preferences are likely to be subjectto significant change over time. With asymmetric information, acentral manager may implement a sub-optimal release(allocation) policy, that will ultimately reduce average returns toirrigators in the long run.

Transaction costs in water tradeTransaction costs refer to costs incurred when making aneconomic exchange. There is evidence to suggest thatirrigators face significant transaction costs when trading waterallocations in the Murray-Darling Basin. Water trade can besubject to both direct financial transaction costs such asgovernment and brokers’ fees, and non-financial indirecttransaction costs such as time costs incurred by irrigators.Under a simple announced allocation system, substantialtemporary trade in water allocations may be required toachieve an efficient allocation of water across different irrigatorsin each time period.

High and low reliability entitlementsHigh and low reliability entitlement systems (referred to asgeneral and high security entitlements in New South Wales) arerelatively common in the Murray-Darling Basin. High and lowreliability entitlement systems have the potential to reducetemporary water trade requirements, and reduce irrigators’exposure to transaction costs, by providing water rights whichmore closely match the reliability preferences of individualirrigators (Freebairn and Quiggin 2006). However, systems ofhigh and low reliability entitlements do have a number ofpractical limitations.

Implications for investmentWhile not considered in detail in this report, in practice it is likelythat storage management policies will have importantimplications for irrigator investment decisions. For example,storage management policies, by influencing the yield-reliabilityof water entitlements, will tend to influence the relativeattractiveness of different irrigated activities. In the long run, afixed centralised storage policy may act as a constraint onirrigator investment, for example preventing an optimaldistribution of low and high flexibility irrigation activities.

A water storage modelAs a part of this study, an economic model of the waterstorage problem facing a representative irrigation system wasdeveloped. The model incorporates representations of thedemand for water by irrigators and the irrigation water supplysystem (e.g. inflows, storage and associated losses). Themodel is stochastic, in that inflows into storages and rainfallonto irrigation farms are subject to random variation, based ona defined probability distribution estimated using historical data.

The optimisation model developed was applied to a casestudy region to demonstrate the potential benefits ofimprovements in storage policy. The case study region is based

on the Murrumbidgee region in New South Wales. Although thecase study is intended to be illustrative in nature, the resultspresented in this report are intended to be broadly applicableto other regions. Model parameter values were set withreference to historical data and estimates from econometricliterature.

ResultsUsing the model, an arbitrary ‘aggressive’ release (allocation)rule was compared with a theoretically optimal release rule. Theestimated optimal release policy involves holding more water instorage reserves, relative to the aggressive policy.

The estimated optimal release rule involves a small reductionin mean water use, in turn for a substantial increase in meanstorage reserves. The optimal release rule acts to minimisevariation in the supply and value of water over time. The modeldemonstrates that optimal storage policy can lead to anincrease in mean irrigator incomes and a substantial reductionin variability of incomes. The model results show an estimatedincrease in the mean economic value of water of 11.8 per centand a reduction in variability of more than 63 per cent.

A sensitivity analysis conducted using the model alsodemonstrated that the gains from optimal storagemanagement (both in terms of mean and variability of incomes)increase substantially as water availability reduces. The resultsconfirm that with greater water scarcity, there is more to begained by improving the management of irrigation waterstorages. That is, when inflows are lower and less reliable,there is more to be gained by holding water in storage to insureagainst drought conditions. This is an important result givenpredictions of reduced water availability across much of theMurray-Darling Basin in the future because of the effects ofclimate change.

Carryover rights and capacity sharingAn alternative to centralised storage management is adecentralised approach, in which individual irrigators are givengreater control over storage decisions. Decentralisedapproaches have the potential to address the problems ofcentralised storage management. In this report, twodecentralised approaches to storage management areconsidered: carryover rights and capacity sharing.

Carryover rightsA carryover right allows water users to hold over a proportionof their seasonal water allocation for use in future seasons.Carryover rights have been in place in many New South Walesand Queensland irrigation systems for some time and haverecently been introduced into a number of Victorian and SouthAustralian systems.

While carryover rights may help irrigators overcome some ofthe problems associated with central storage management,carryover rights are an incomplete solution. Carryover rights areincomplete because they do not explicitly define rights tostorage capacity or to associated storage losses. As such,individual carryover decisions have external effects whichinfluence other users of the same storage. In an attempt tominimise these external effects, significant restrictions are oftenplaced on carryover rights, which further weaken theireffectiveness.

Access to carryover water may also be subject to sovereignrisk, as has been demonstrated in a number of recentinstances where irrigators have been denied access tocarryover water during drought periods.

Capacity sharingCapacity sharing is a system of allocating property rights to

AGRIBUSINESS CHAIN V10#1 • 61

Page 64: Agribusiness 2010

IRRIGATION

water from shared storages proposed by Dudley (Dudley andMusgrave 1988; Dudley and Alaouze 1989; Dudley 1990a;Dudley 1992). Under capacity sharing, each entitlement holderin an irrigation system is assigned a share of the total systemstorage capacity and a share of total inflows. Users are free tomanage these capacity shares independently; determining howmuch water to use (or sell) and how much to leave in theirshare of storage.

Capacity sharing results in water entitlements which moreclosely reflect the physical realities of the water supply system.Unlike carryover rights, capacity sharing ensures that storagespace is efficiently rationed and losses are internalised.Capacity sharing has a number of other potential benefitsrelative to systems of carryover rights. Capacity sharingreplaces the traditional announced allocation system and, indoing so, removes a layer of regulatory uncertainty. Capacitysharing also involves redefining water rights at the source,which offers a number of potential efficiency improvements,including the potential to internalise water delivery losses.

One complication with capacity sharing is the occurrence ofinternal spills – where individual water accounts reach capacityand forfeit their inflows to other water users. However, theeconomic costs of internal spills are negligible and internal spillsare likely to occur infrequently in practice. Another importantconsideration in the transition to capacity sharing will be tominimise any actual or perceived distributional effects, byensuring the newly defined capacity share water entitlementsadequately preserve all existing irrigator water entitlements.

Capacity sharing is typically considered in the context ofrelatively simple water supply systems, where all water issourced from a single storage. While there may be someconcerns about the suitability of capacity sharing in morecomplex systems, it is not obvious that the concept could notbe sufficiently generalised. The ability of the capacity sharingframework to be applied to a range of more complex watersupply systems remains a subject for potential future research.

Concluding RemarksWater storages play a vital role in the supply of water forirrigation farms. Storages serve to smooth variation in thesupply of water and equalise the marginal value of water overtime.

The management of these storages is an important butdifficult task. Determining what proportion of available water tostore for the future, and how much to consume now, is acomplex problem given the presence of substantial uncertaintyover future inflows and water demands.

In Australia, major irrigation water storages are centrallymanaged via the announced allocation system, where eachseason a water manager determines the amount of wateravailable for use now (water allocations) given prevailingstorage levels. Under certain conditions a centralised approachcould achieve an efficient allocation of water resources;specifically, if the water manager had perfect information on thewater demand preferences of irrigators and there existed anefficient (costless) market in water allocations.

In practice, the water manager is unlikely to have perfectinformation on the water preferences of irrigators. There is likelyto be asymmetric information; irrigators are likely to know moreabout their water demands than the water manager. Also, thereare likely to be significant transaction costs in water trade. Acentralised announced allocation approach relies heavily ontrade in water allocations to allocate water between irrigatorswith varying reliability preferences. Given these practicaldifficulties, a decentralised approach, where irrigators areenabled to make there own storage decisions, may bepreferable.

To demonstrate the potential costs of inefficient storagemanagement, an economic model of the water storageproblem facing a representative irrigation system wasdeveloped. This model was applied to a case study region, theMurrumbidgee. Model parameter values were set withreference to historical data and estimates from econometricliterature. Using the model, a suboptimal aggressive releaserule was compared with a theoretically optimal release rule.

The estimated optimal release rule generated a smallreduction in mean water use in turn for a substantial increase inmean storage reserves. The model demonstrated the ability ofthe optimal policy to lead to an increase in mean irrigatorincomes and a substantial reduction in variability of incomes.The model estimated an increase in the mean economic valueof water of 11.8 per cent and a reduction in variability of morethan 63 per cent. The model also demonstrated that the gainsfrom optimal storage management, both in terms of the meanand variability of incomes, increase substantially as wateravailability reduces.

In this report two decentralised approaches to storagemanagement were considered in detail: carryover rights andcapacity sharing. Carryover rights have the potential toovercome some of the problems of centralised storagemanagement. However, carryover rights are an incompletesolution, since they do not define explicit property rights tostorage capacity or to losses associated with storage. As aresult, carryover rights generate external effects, whereindividual irrigator carryover decisions affect other irrigators inthe system. In an attempt to minimise these external effects,significant restrictions are often placed on carryover rightswhich further weaken their effectiveness.

Capacity sharing is a property rights system proposed byDudley (Dudley and Musgrave 1988), which involves redefiningwater entitlements into separate storage capacity rights andwater/ inflow rights. Unlike carryover rights, capacity sharingensures that storage space is efficiently rationed and thatlosses are internalised. Capacity sharing has a number of otherpotential benefits relative to systems of carryover rights.Capacity sharing replaces the traditional announced allocationsystem and in doing so removes a layer of regulatoryuncertainty from existing water entitlements. Capacity sharinginvolves redefining water rights at the source which creates anumber of potential efficiency improvements, including thepotential to internalise water delivery losses.

One complication with capacity sharing is the occurrence ofinternal spills – where individual water accounts reach capacityand forfeit their inflows to other water users. However, theallocation efficiency implications of internal spills are negligibleand in practice internal spills are likely to occur infrequently.Another important consideration in the transition to capacitysharing will be to minimise any actual or perceived distributionaleffects, by ensuring the newly defined capacity share waterentitlements adequately preserve all existing irrigator waterentitlements.

Capacity sharing is typically considered in the context ofrelatively simple water supply systems, where all water issourced from a single storage. While there may exist someconcern about the suitability of capacity sharing in morecomplex systems, it is not obvious that the concept could notbe sufficiently generalised. The ability for the capacity sharingframework to be applied to a range of more complex watersupply systems remains a subject for potential future research.

62 • AGRIBUSINESS CHAIN V10#1

Page 65: Agribusiness 2010

LANDSCAPES

AGRIBUSINESS CHAIN V10#1 • 63

S cientists from CSIRO’s Water for a HealthyCountry Flagship have removedapproximately 90 per cent of Australia’s

vegetation cover from satellite images of thecontinent to produce the most detailed availableDigital Elevation Model (DEM) of its topography.

“The DEM will revolutionise geologicalapplications, land-use studies, soil science, andmuch more,” CSIRO’s Dr John Gallant said in anaddress to the Spatial Sciences Conference inAdelaide.

“The DEM will revolutionise geologicalapplications, land-use studies, soil science, andmuch more,” CSIRO’s Dr John Gallant, in hisaddress to the Spatial Sciences Conference inAdelaide.

“Produced at a one-second resolution—about30 metres—the DEM exposes intimate detailsabout Australia’s landscape features. As a result,we can now clearly make out the shape of ourlandscape and understand how water might moveacross its surface, how it came to be its presentshape and how variable our soil terrains are.”

Since releasing the Digital Surface Model (DSM)last year, the new vegetation removal process hasalso resulted in a ‘spin-off’ vegetation height mapthat may be useful for calculating biomass andcontributing to carbon accounting.

The DEM will provide a body of informationrelated to water resources and is a key activitywithin the water information research anddevelopment alliance between the Flagship andthe Bureau of Meteorology’s ‘Improving WaterInformation Program’.

The final phase of building the one-secondresolution DEM will occur over the next year withthe inclusion of Australia’s river network toproduce a drainage-enforced DEM that will assistthe Bureau to generate water accounts for thecontinent.

The DEM is based on the Shuttle RadarTopographic Mission (SRTM) satellite datacollected by NASA during its Space Shuttlemission in 2000.

The one-second DEM dataset is licensed andmanaged by project collaborator GeoscienceAustralia, and will be available from mid-November to all tiers of Australian government. Athree-second version (approximately 90 metres) ofthe DEM will eventually be available for public use.

For Further Information:Dr John GallantLand and WaterPhone: 61 2 6246 5734Email: [email protected]

Satellite images near Culcairn in NSW showing the topography with vegetation (left) and without vegetation (right) by: CSIRO

The naked truth aboutour landscapeAustralia has been stripped bare of vegetation to expose thesurface that lies beneath.

Page 66: Agribusiness 2010

INNOVATION

S cientists from the Victorian Department of PrimaryIndustries (DPI) and The New Zealand Institute for Cropand Food Research have been working on developing

these enhanced foods for over five years, due to increasingpublic awareness of the role of vegetables in fighting seriousdiseases, as well as mounting concern over vegetablesimported from overseas.

Leading the charge in the super food revolution is ‘boosterbroccoli’, a new, naturally grown product from Vital Vegetablesthat claims to contain over 40 percent more active antioxidantsthan the broccoli usually found in shops. One of theseantioxidants is Sulforaphane, which helps eliminate free radicalsin the body, and is thought to have a preventative influence onheart disease and some cancers.

The broccoli is bred from a strain of the brassica vegetablethat contains more naturally occurring antioxidants than others,and is not genetically modified or artificial in any way, which hastraditionally been a major cause of concern for Australian

consumers. The broccoli is now available in shops aroundAustralia, plastic-wrapped to ensure that the nutritional value ofthe vegetable is retained until it is consumed.

‘The intent behind Vital Vegetables was not only to create arange of vegetables with known health benefits, but to ensurethat they were also commercially available to customers,’ saysDr Rod Jones, Team Leader of Plant Physiology at the DPI.

And broccoli is only the beginning. Vital Vegetables plan tointroduce high-vitamin capsicum, and several lines of lycopene-packed tomatoes into their range in the near future, and intendon eventually releasing frozen options for their super vegetables.

Another superfood, developed by scientists at CSIRO, isBARLEYmax, a high-fibre wholegrain that claims to amplify thenutritional benefits of wholegrains. CSIRO’s intentions with theproduction of BARLEYmax were similar to those of VitalVegetables. ‘Our initial aim with BARLEYmax was to enhancethe nutritional qualities of standard barley. Once this wasachieved, it was important to make the improved grain available

64 • AGRIBUSINESS CHAIN V10#1

Super foodsValue adding to ournatural produceIt can be difficult to makethe time or effort toensure that thefoods we’re eatingare giving us enoughnutritional value. Australianscientists are on a missionto remedy this problem, bycreating a new team ofvegetable super-heroesthat are nutritionallyenhanced to take thedifficulty out of makinghealthy choices.

Page 67: Agribusiness 2010

INNOVATION

to the consumer via the food industry so all Australians couldbenefit from CSIRO’s breakthrough,’ says Dr Bruce Lee,

BARLEYmax was discovered as part of CSIRO’sdevelopment of a collection of new non-genetically-modifiedbarley grains. A variety of BARLEYmax grains was bred usingtraditional grain-growing methods, and CSIRO joined forceswith food manufacturers to make the grains available toconsumers.

CSIRO claim that BARLEYmax is a richer source ofantioxidants than apples and strawberries, has twice theantioxidants of oats, three times the level of regular broccoli,and four times that of tea.

BARLEYmax can now be found in two cereals, and by 2012the intention is for BARLEYmax to be incorporated into a range

of foods, including traditionally wholegrain fare such as bread,pasta and biscuits.

Eventually, it’s thought that BARLEYmax will enhance thenutritional value of many foodstuffs, and a point of debate is itsinclusion in fast-food products. The CSIRO see their superiorwholegrain as a way of helping consumers to increase thenutritional value of their food without having to compromise ontaste and convenience. Development of supergrain-enhancedhamburger patties, sausages and cheeses is currentlyunderway, with the aim of providing fast food that looks, smellsand tastes like fast food, but has the hidden properties ofsupercharged wholegrains.

Some believe that creating nutritionally advanced versions of‘unhealthy’ foods is a move that will halt the progress of dietaryawareness amongst Australians, giving people an excuse tocontinue eating poorer quality foods without the guilt associatedwith their indulgence.

In addition, the national fear of genetically modified foods isseeing some people reacting negatively to superfoods, with theview that enhancing existing crops is a form of geneticmodification.

BARLEYmax was discovered as a part of genetic modificationresearch, but is not a genetically modified food – similarly to‘booster broccoli’, it is bred using conventional plant breedingtechniques, without the addition of any extra genes – thehallmark of genetic modification.

Still others have claimed that the superfoods are trying toattract consumers away from regular products by promisingmore than what they offer in reality. The developers of VitalVegetables are quick to emphasise that their products are notintended to detract from the health benefits of existing vegetableproducts, or to replace the vegetables that are already available.

‘There’s been a lot of emphasis on the issue of prevention [inrelation to chronic diseases], and we hope that these productsthat are now in the marketplace and others that are in the

pipeline will assist in improving public health,’ says DavidTopping, Chief Research Scientist at the CSIRO Future FoodsNational Research Flagship.

The team at CSIRO also point out that the act of enhancingexisting foods is a positive long-term goal that will ensure thatthe diets of the public will contain as much nutritional value aspossible, even if they continue to eat the way they do now.

Down the road is scope for products that contain selectionsof different types of produce aimed at targeting specific healthproblems. Bags of lettuce could be designed to give maximumbenefits to a person suffering from arthritis, and a packet of stir-fry vegies might contain the right nutrients to aid a diabetespatient, essentially tailoring food to meet the nutritional needs ofthe consumer. It’s a big proposition, but one that seems to bebecoming more likely as developments continue to occur.

The superfoods industry is on the brink of majorbreakthroughs and significant expansion, promising bigchanges in public health and the agriculture industry. Changesare unlikely to occur faster than a speeding bullet, but they’recoming, and when they arrive we could be leaping buildings in asingle bound.

AGRIBUSINESS CHAIN V10#1 • 65

Page 68: Agribusiness 2010

RESEARCH

The joint venture has beenformed to further develop theAgricultural Production

Systems Simulator (APSIM) – acomputer simulation model whichtakes into account many of thefactors affecting a farm’s success,including different plant, soil andmanagement approaches, toinform on-farm managementdecisions.

APSIM has a broad range ofapplications including: farmingsystems design, assessment ofseasonal climate forecasting,supply chain planning,development of wastemanagement guidelines, riskassessment for government policymaking, as well as guidingresearch and educationalactivities.

The APSIM Unincorporated JointVenture (APSIM UJV) SteeringCommittee Chair, University ofQueensland Professor KayeBasford, said the recent signing ofa new APSIM agreement builds onover 20 years of research andplaces the joint venture at theforefront of world agriculturalmodelling research.

Director of CSIRO’s SustainableAgriculture Flagship, Dr BrianKeating, said the initiative will helpAustralian agriculture respond tothe critical challenges ofincreasing productivity whilereducing its environmentalfootprint.

“The APSIM research team iswell placed to build on its pastachievements and achieve newinnovations in knowledge-basedsystems to support theproductivity gains and enhancedmanagement practices needed forthe future prosperity of Australianagriculture,” Dr Keating said.

QPIF APSIM UJV Leader DrDaniel Rodriguez said in this timeof global change there is an urgentneed to help farmers capitalise onopportunities.

“Recent advances in ourAPSFarm tool, for example, which

provides virtual farm modelling, arehelping farmers and researchersdesign more profitable andresilient crops, practices and farmbusinesses,” Dr Rodriguez said.

“Farmers have to contend withreductions in the allocation ofwater for irrigation and changes inprices and that is where our workcan help farmers adapt.”

He said dryland farmers can alsobenefit from the support availablethrough APSIM and APSFarm tohelp identify more profitableallocations of their productionresources between cropping andlivestock enterprises.

“The APSIM and APSFarmmodels are also helpingresearchers and farmers identifyoptimum adaptation pathways inthe face of increasing climatevariability and climate change,” DrRodriguez said.

According to project scientist,University of Queensland ProfessorGraeme Hammer, advances inareas such as virtual cropmodelling are essential to meet thegrowing demand for grain forfeedlots or ethanol production.

“To mitigate the impact ofclimate change and diminishingwater supplies and meet thedemand for grain, scientists needto find high-performing varietiesthat best suit environmentalconditions and marketrequirements – and we are doingthis through APSIM,” ProfessorHammer said.

“Major breakthroughs inmolecular technology meanscientists can now engineer genesfor water-use efficiency and idealroot-system architecture. Virtualplant technology could provide theanswers for new-age cropimprovement.”

Initially the new APSIM UJVInitiative will consist of CSIRO, theQueensland Department of PrimaryIndustries and Fisheries and TheUniversity of Queensland, but othergroups are being encouraged toparticipate.

66 • AGRIBUSINESS CHAIN V10#1

Aiming to lead the world inagricultural modellingCSIRO, Queensland Primary Industries and Fisheries (QPIF) and The University ofQueensland have joined forces to develop world-leading agriculture modellingtechnologies to help farmers improve crop risk management and profitability.

Page 69: Agribusiness 2010

BREEDING

AGRIBUSINESS CHAIN V10#1 • 67

Using Ultrasound forSelective BreedingNew research is making it easier topredict the future—at least as far aslamb products are concerned. Atthe U.S. Sheep Experiment Stationin Dubois, Idaho, research leaderGreg Lewis and his colleagues haveshown that ultrasound can be usedto accurately predict characteristicsthat indicate carcass yield and valuein live sheep.

This could significantly improvethe speed and accuracy ofselective-breeding methods. Sincecarcass data is difficult forproducers to obtain, many of themcurrently rely on visual appraisals topredict carcass traits beforechoosing which sheep to breed.Ultrasound provides a faster, moreaccurate alternative.

To assess the reliability of thetechnology, scientists capturedultrasound images of 172 lambsbefore slaughter. At Ohio State

University, assistant professor HenryZerby coordinated the collection ofcarcass-trait data for the lambs.Lewis collaborated with ARSscientists and Dave Notter, ageneticist at Virginia Tech, toanalyse the data.

Results showed that a trainedtechnician can capture anultrasound image in about 30seconds with reasonable accuracy.Scientists can use the images toestimate traits that influence thecarcass value of market lambs—such as loin muscle area, loinmuscle depth, and back-fatthickness.

Ultrasound is initially moreexpensive than visual appraisals,but the technique’s superioraccuracy may translate into bettereconomic returns through improvedevaluation and selection of breedingstock.

“Ultrasound is a great way forbreeding-stock producers to get the

New Ultrasound and ArtificialInsemination TechniquesImprove Sheep BreedingBred for meat as well as wool, sheep have been part of the American landscapesince colonial times. Now, advances in genetic research are changing breedingprocedures, leading to faster, cheaper, and more accurate techniques.

Western white-face ewes and lambs on a pasture at the University of Wyoming Livestock Farm, Laramie, with university student Kalli Koepke in the background.

Ewes and lambs on a pasture at the University of WyomingLivestock Farm in Laramie. Recent research by ARS may makeartificial insemination of sheep easy enough for producers totackle on their own.

Page 70: Agribusiness 2010

BREEDING

data they need to make selection decisions,” Lewis says.Reliable predictions are timesavers for breeders because

they enable them to make educated decisions about ananimal’s offspring without waiting for the offspring to mature.While the technology is used routinely for cattle and swine, thisstudy demonstrates that it can also be applied to sheep.

Improving Surgical Artificial InseminationArtificial insemination (AI) is an important tool for modernlivestock breeding—particularly for cattle and swine. But formost sheep producers, AI isn’t a viable option. The ovine cervixis relatively difficult to traverse with traditional AI tools, sotechniques that work easily with cattle have been lesssuccessful with sheep. Surgical AI has a higher success rate,but is prohibitively complicated and expensive.

But help is on the way, thanks to research conducted byARS animal scientists at the National Center for GeneticResources Preservation (NCGRP) in Fort Collins, Colorado.Researchers there are collaborating with scientists at theUniversity of Wyoming (UW) to improve semen handling andartificial insemination on sheep farms. The work is being led byNCGRP animal physiologist Phillip Purdy in collaboration withanimal geneticist Harvey Blackburn and UW colleagues RobertStobart and Brent Larson.

“Effective AI has two components: the ability to collect andtransport semen—either fresh or frozen—to producers aroundthe country and the ability to economically inseminate theewes,” Blackburn says.

The scientists first focused on semen collection, storage, andtransport. They found that sheep semen can be collected andshipped—in cooled liquid form—overnight before freezingwithout harming its in vitro quality. They also found that semencould be cryopreserved—or frozen for later use—after shippingwithout reducing its success in surgical AI.

Further studies compared semen that had beencryopreserved immediately after collection to semencryopreserved after 48 hours—about the time required to shipsamples across the country. The scientists observed nodifference in quality or fertilisation ability nor in the averagenumber of lambs born to the ewes surgically inseminated withthose samples.

“These results show that there are many options available toproducers to help them select for desirable traits,” Purdy says.Producers could, for example, use samples from around theworld, thereby expanding and improving their breeding options,increasing the quality of their flocks, and providing a betterreturn on their investment.

This work also has benefits for conservators of geneticresources, like the NCGRP, that gather and store geneticmaterials.

“An efficient insemination method is important for ourconservation efforts,” says Blackburn, who heads NCGRP’sNational Animal Germplasm Program. “If we can do it moreefficiently, we can reduce the number of semen samples wecollect for preserving sheep genetic diversity.”

Better Nonsurgical AIThe scientists have developed a rapid, economical alternativeto existing surgical AI methods. The technique is an adaptationof the method used in swine. The researchers used a spiralinsemination catheter to traverse the ewe’s cervix and depositthawed semen directly into the uterus. The method is easy tolearn and easy to perform. Each sheep takes about 2 minutesto inseminate at a cost of $1.29, making it significantly fasterand less expensive than laparoscopic surgical insemination.And it’s easy enough for producers to do independently.

Though quick and economical, the technique is less reliablethan existing AI methods. Early tests have had success rates ofabout 55 percent when using fresh semen and about 10percent when using frozen semen.

“This difference was not observed in the previousexperiments, because surgical inseminations deposit the AIdose at the site of fertilisation, so minimal stress is placed onthe thawed sperm,” Purdy explains. “Sperm are generallyweakened by the freezing and thawing processes, and thisimpaired function in thawed samples becomes more noticeablewhen using the nonsurgical method because the sperm haveto travel farther to the site of fertilisation.”

The scientists are investigating how to hone the techniqueand improve its success rate by improving the timing of estrusand insemination.—By Laura McGinnis, formerly with ARS.This research is part of Food Animal Production (#101), an ARS national program described onthe World Wide Web at www.nps.ars.usda.gov.Phillip H. Purdy is with the USDA-ARS National Center for Genetic Resources Preservation Gregory S. Lewis is with the USDA-ARS U.S. Sheep Experiment Station“New Ultrasound and Artificial Insemination Techniques Improve Sheep Breeding” waspublished in the October 2009 issue of Agricultural Research magazine.

68 • AGRIBUSINESS CHAIN V10#1

Animal physiologist Phillip Purdy uses a water bath to thaw frozen semen for usein an insemination procedure.

At the University of Wyoming livestock farm in Laramie, professor Robert Stobart(left) and Phillip Purdy prepare to artificially inseminate a Suffolk ewe using aninsemination gun and spiral catheter.

Page 71: Agribusiness 2010

SOILS

AGRIBUSINESS CHAIN V10#1 • 69

T he National Program for Sustainable Irrigation (NPSI) isfunding a number of research projects all focused onconserving and improving soils. In one such project,

University of Adelaide researcher Dr Rob Murray is investigatingthe long-term sustainability of precision irrigation at sites in theBarossa Valley, SA.

So far, Dr Murray’s team has found no evidence that dripirrigation causes any problems for soil, but as vineyard wateruse in the Barossa Valley is relatively low, further trials are beingcompleted in vineyards in Victoria and New South Wales.

“Virtually every soil we worked with already had very poorstructure, with low aeration and high resistance to penetrationby roots at depths of only 30cm,” Dr Murray said.

“What we’ve seen makes a strong case for intensive soilpreparation before permanent plantings of irrigated crops, andfor ongoing measures to conserve and improve the soilstructure that is created during preparation.

“Investments in these measures, such as increased use ofcover crops and reduced machinery traffic, would be returnedby efficient plants with extensive root systems that are notaddicted to frequent irrigation. With severe water restrictionsand increasing climate variability, these strategies will becomeessential.”

Soils Research Pty Ltd researcher Dr Bruce Cockroft, who isworking on another NPSI-funded project, also believeschanges in soil management could unlock far more dollars perhectare and per megalitre of water for Australian farmers. Hestudied the most productive soils all over the world, andidentified 24 key properties that are common to all the bestsoils, the “super soils”, of the world.

“Because of the great age of our soils, there are several keyproperties that are missing that cannot be changed,” he said.

“Our research is attempting to find alternatives to the keyproperties of super soils. We have evidence from trials thatalternatives exist. Now we just need to find out how to buildthem into our soils to make them super.” Dr Cockroft and hisresearch team believe they have found one way to build theseproperties using rye grass.

“Good soil management is fundamental to good watermanagement”, said Guy Roth, NPSI Program Coordinator.“That is why it is vital to have productive, healthy soil.”CitationLand & Water Australia. 2009. Australia needs super soil for high productivity. [Online] (UpdatedApril 17th, 2009) Available at: http://lwa.gov.au/node/3206 [Accessed Thursday 17th of September 200912:44:16 AM ].Article provided by National Program for Sustainable Irrigation

Australia needs super soil forhigh productivityWith increasing pressure on primary producers to increase their productivity,irrigation researchers are seeking ways to improve the quality of irrigated soil, giventhe vital role soil plays in plant health and productivity.

Page 72: Agribusiness 2010

CROPS

C rown Rot, which is a chronic problem throughout theAustralian wheat belt, is caused by the fungus Fusarium.Dr Chunji Liu and his CSIRO Plant Industry team in

Brisbane are using sophisticated screening methods to scanover 2400 wheat lines and 1000 barley lines from around theworld to find the ones resistant the fungal disease.

“The wheat and barley lines showing resistance to CrownRot are now being used in pre-breeding programs toincorporate the resistance into adapted varieties for delivery tothe wheat breeding companies,” Dr Liu says.

Crown Rot infects many grasses and weeds found in wheatgrowing regions and minimum till cropping encouragesFusarium which survives in cereal stubbles.

Minimum till cropping minimises soil disturbance and retainsplant stubble from previous crops in order to promote soilhealth and limit erosion.

Developing Crown Rot resistant wheat and barley varieties isan essential strategy in fighting the disease.

“As well as developing Crown Rot resistant varieties, we arealso studying how Fusarium invades the plant, how plantsresist Fusarium infection and what genes may be involved indefending the plant against Fusarium or reducing its effect onyield,” Dr Liu says.

Another of the most serious wheat diseases in Australia,Head Blight, is also caused by Fusarium.

This work is being carried out with funding from CSIRO andthe Grains Research and Development Corporation and incollaboration with numerous national and international groups.

Further Information:Dr Chunji LiuPrincipal Research ScientistPlant IndustryPhone: 61 7 3214 2223 Fax: 61 7 3214 2950 Email: [email protected]

70 • AGRIBUSINESS CHAIN V10#1

Rot resistant wheat could savefarmers millionsCSIRO researchers have identified wheat and barley lines resistant to Crown Rot –a disease that costs Australian wheat and barley farmers $79 million in lost yieldevery year.

Page 73: Agribusiness 2010

WEEDS

AGRIBUSINESS CHAIN V10#1 • 71

C hromolaena invades rainforests, smothers crops, youngplantations and native grasslands as well as being toxicto livestock. Biosecurity Queensland scientist Michael

Day said the tiny gall fly (Cecidochares connexa) was proving tobe very successful in controlling outbreaks of chromolaena.

“The gall fly lays its eggs in the stems of the weed and thefeeding larvae cause the stems to swell, which kills the plantand reduces the formation of flowers and seeds,” he said.

“This allows other more favourable plants such as food cropsto grow.”

Mr Day said the gall fly was first used by the QueenslandGovernment as a biocontrol agent in Indonesia in 1996, andthen with great success in Papua New Guinea from 1998 until2007.

“Word of the success of the PNG program has spread toother neighbouring countries that are also battling infestationsof chromolaena,” he said.

“We conducted a similar project in East Timor in 2005 andwe’ve now been approached by colleagues in China and morerecently Thailand.”

Mr Day said that closer to home, Biosecurity Queenslandwas leading the Siam weed eradication program inQueensland.

“While we don’t have the large established infestations seenin our neighbouring countries, we now have a tried and provenbiocontrol agent to release if needed,” he said.

“We are also ensuring the future biosecurity of our country.

By reducing the presence of the weed in neighbouringcountries we are reducing the possibility of any more of itcoming onto our shores. It’s a win-win result for all involved.”

The PNG project was part of an Australian Centre forInternational Agricultural Research (ACIAR) project to providesupport and training to countries that do not have thenecessary resources and expertise.

“Queensland Primary Industries and Fisheries have a longhistory of providing agricultural support to our neighbours,especially in the field of biocontrol,” Mr Day said.

“Australia is only one of five major countries to invest in weedbiocontrol research. Not only does this mean we can helpcountries without the same opportunities that we have, we alsohave useful networks to call upon if we ever need assistance.”

Queensland’s weed controlsteps up to an internationalplatformSOME of our Asian neighbours are using Queensland expertise to combat one ofthe world’s worst invasive plants – Siam weed, or chromolaena as it is knownoverseas.

Adult gall flies mating

Siam infested with gall fly eggs

Page 74: Agribusiness 2010

WINE + VITICULTURE

T he winery has long been part of the South Australianlandscape, and is committed to environmentalconservation. “Taylors Wines is a family owned wine

company operating in both rural and urban environments. Thisdirect link with the land, along with the long term view we holdfor our business development, results in a commitment tooperating in a manner that eliminates any negative impact onthe environment,” says Mitchell Taylor, Managing Director andWinemaker at Taylors Wines.

In order for a wine to be 100 percent carbon neutral, theentire winemaking process must be assessed, from thepreparation of the land for planting the vines, to the disposal ofthe bottles.

In 2008, Wakefield enlisted the help of Australian-basedconsultancy company Provisor, who specialise in the wine,food and beverage industries. Provisor developed a Life CycleAssessment (LCA) model to assess the whole range ofWakefield’s Eighty Acres wines.

Assessment of the carbon footprint of the Eighty Acres wineproduction process was separated into four categories, witheach contributing a different percentage to the overall product’scarbon footprint. The categories were: Grape Growing andWinemaking (28%); Production and Packaging (43%);Transport and Sales (11%); and Consumption and Disposal(18%).

This process required Provisor to work with Taylors Wines, aswell as all of their partners involved in supply and distribution,to collect unique data about every product in the Eighty Acresrange. After the LCA had been completed, it wasindependently verified by RMIT University in Melbourne in May2009, and was found to be ISO 14044 compliant.

As a result, Wakefield Wines now have a comprehensiveassessment system in place, with which they are able tomonitor the carbon efficiency of any of the wines in their EightyAcres range, and implement measures to negate any carbonemissions that are detected.

A major element in the reduction of the winery’s carbonfootprint is its packaging. Wakefield has transferred the wine intheir Eighty Acres range from regular wine bottles into O-I’snew LEAN + GREEN lightweight glass bottles. The decision notto use PET bottles was made due to PET bottles not beingimpervious to oxygenation, which taints the quality of the wine.As well as being committed to the environment, Wakefield iscommitted to quality, which means ensuring that the taste ofthe wine isn’t detrimentally affected by the carbon neutralprocess.

The LEAN + GREEN glass is 40 percent lighter than theglass that Wakefield originally used for its packaging, and theuse of these bottles significantly reduces the water and energyconsumption of production.

Of course, it’s impossible for any winemaking process to becompletely emissions-free, but it’s possible to drastically reducethe emissions, and offset any that remain.

“For each and every bottle of Eighty Acres wine sold TaylorsWines is committed to offsetting 100% of the carbon emissionsassociated with the complete life cycle of that product,” saysTaylor.

This includes a partnership with Carbon Neutral, a not forprofit company dedicated to the reduction of Australia’s carbonfootprint through measuring, reducing and offsettinggreenhouse gas emissions. Taylors Wines purchase theircarbon offsets credits through Carbon Neutral in the form ofVerified Emissions Reduction Units (VERs), which each areequivalent to one tonne of carbon dioxide or equivalentemissions avoided.

Additionally, for each tonne of VERs that Taylors Winespurchases, Carbon Neutral will plant a tree which will provideenvironmental benefits such as wind breaks, improvingbiodiversity and sequestering carbon, among others. The treeswill be legally protected for 70 years.

As well as focusing on the Eighty Acres range of wines,Taylors wines also actively promotes other environmentalpractices. Eco-Mapping is an integral part of the Taylorswinemaking enterprise, and helps to define areas ofenvironmental concern within the business that requireattention.

Taylors has also built a state of the art water recycling plantat its Auburn Winery in the Clare Valley, which recycles all of thewater from the winery and bottling hall. In addition, storm wateris harvested via this facility for re-use.

Compost, mulching and river regeneration are all keyelements of Taylors’ sustainability focus, and the Sydney HeadOffice is powered by green power. What’s more, sheep havebeen introduced into certain blocks of vines at the Alburyvineyard to control grasses and weeds. This has reduced theneed for pesticides, and provided manure as natural fertiliserfor the vines.

Wakefield’s 100% Carbon Neutral Eighty Acres wines can bedistinguished by the Wakefield 100% Carbon Neutral Leaftrademark on bottles and cartons.

72 • AGRIBUSINESS CHAIN V10#1

Eighty acres, one hundredpercent carbon neutralWakefield Wines, based at the Taylors Winery in the Clare Valley, South Australia,have accomplished a world-first achievement by producing a range of wine that iscompletely carbon neutral.

Page 75: Agribusiness 2010
Page 76: Agribusiness 2010

CY123-908

On road to a cleaner future.

On road to a cleaner future.

Used lead acid batteries contain materials which, if not disposed of correctly, can be harmful to humans, wildlife and the environment.98% of a used battery is recyclable – don’t discard old batteries with household waste, simply return them to your nearest Century Yuasa approved battery recycling centre and help create a cleaner future.

To find your nearest Century recycling specialist visit the website or call 1300 650 702.

h