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LIEBE GROUPNEWSLETTER July 2008 Volume 11 Issue 5

IN THIS ISSUE

Emma Wilson’s Farewell: page 3

Liebe Group Administration Manager Position Avaliable:

page 4

Breeding goats to keep growing grain: pages 5-7

WA Farmer Confidence Soars: pages 12-13

LIEBE WOMEN’S FIELD DAY THANK YOU’SThe success of the 2008 Liebe Women’s Field Day would not have been possible without the commitment and hard work undertaken by the Liebe Group’s Women Committee, chaired by Anita Dickins.

We would also like to thank the enthusiastic team of local male helpers who prepared and served lunch to the ladies.

Thank you to all those involved with both the preparation and running of the day, your efforts were greatly appreciated.

DIAMOND PARTNERS

The Liebe Group would like to acknowledge and thank Department of Agriculture & Food WA,

Grains Research and Development Corporation and the Farm Weekly for their valued support.

EO’s Report: page 2

Photos from the Liebe Women’s Field Day: page 13

EO REPORTSophie Carlshausen, Executive Officer, Liebe Group

Liebe Group July Newsletter 2008 Working together in Agriculture 2

This past month has been very busy in the office. Hand overs for the Executive Officer and Administration Manager positions took place, and Lara Swift has donea remarkable job of settling intothe team.

Brianna, Ron Carlshausen, Keith Carter, Gary Butcher and I attended the NACC board meeting lunch in Dalwallinu where Brianna and I had an opportunity to present to the board on the Liebe Group’s current activities.

We ran a very successful Women’s Field Day with fantastic feedback received from the attendees’ evaluations. To read more about the day please see The Women’s Field Day report on page 8 of this newsletter.

Staff and some Management Committee members attended the two day Myers Briggs Course. For Liebe staff it was an extremely valuable course as it identified our different personalties, which will allow us to utilise each others strengths and compliment how we work together as a team.

As the new EO I have already had so many amazing opportunities to meet up with growers and industry which include, sponsorship and industry visits in Perth with Merrie and Brianna. Also the ‘2020 Vision: the face of WA broadacre farming’ forum hosted by the Institute of Agriculture at UWA; the CBH Group invited me and some other Liebe members to attend the Australian Association of Agricultural Consultants (AAAC) ‘Celebrating Agriculture’ event, and finally I and ten other WA Women in Agriculture had the rare opportunity to meet with the Federal Minister for Agriculture, Tony Burke, over dinner.

As you may have heard Emma has resigned as the Liebe Group Project Coordinator, and Lara Swift has accepted the position. Hand over is already taking place and an advertisement for the Administration Manager position, closing Friday the 18th of July, has been sent locally as a 2-3 days/week role. I would like to thank Emma for her hard work and dedication to the project over the last two and a half years, and wish her all the best with her job in her new home town of Quairading.

Chris has been busy planning this Monday’s post seeding field walk and R&D meeting, and we are looking forward to the Pizza and Port at the end of it all!

Coming up in late July is the joint Liebe Group / SEPWA Young Growers Tour to Perth, which Chris will be going to as the Liebe Staff member representative, along with six other young Liebe members. Planning for the Marketing Expo and Spring Field Day is also well underway, further details are on pages three and nine of this newsletter.

ALOSCA Syngenta Jolly & Sons/ T & H Walton RSM Bird Cameron

GOLD PARTNERS

SILVER PARTNERS

BRONZE PARTNERAgrimaster

The Liebe Group’s Management Committee and Staff at Brianna’s Farewell.

It is with regret I announce my decision to depart the Liebe Group on the 1st of August 2008 after two and a half years of working on the GRDC funded adoption project. Following six months of travelling between Quairading and Buntine an opportunity has been offered to me within the shire of Quairading of which I have been unable to refuse. I will be commencing a new full time position with the shire of Quairading as Environment Officer from the 4th of August 2008.

Since moving to Quairading in January 2008 the Liebe Group has allowed me to schedule my working week between the Buntine office and my home office. I think that this sort of flexibility reflects on what a proactive and accommodating group Liebe really is, and I have greatly appreciated all the effort and support I receieved which made this a successful transition.

I feel privileged to have had the opportunity to work with such a proactive network of growers, of whom I have learnt so much from and established great friendships with. I have thoroughly enjoyed my role as Project Coordinator with the Liebe Group and I will cherish all memories from working with the group.

I would like to sincerely thank all growers, agribusinesses and researchers for all the generous support, assistance and advice I have received throughout my time with the Liebe Group. I look forward to keeping in contact with the group into the future and wish the staff, management committee, members and sponsors the very best for the rest of this season and success into future years.

EMMA WILSON FAREWELLS LIEBE


LIEBE GROUP GRAIN MARKETING EXPO

Given the recent changes to the grain marketing system in Australia the Liebe Group Management Committee have proposed the group run a Grain Marketing Expo to inform members of the current marketing companies and systems available to them.

The idea is still in the developmental stages but a proposed date has been set for the week commencing Monday 22nd of September.

An expression of interest will be issued shortly to all grain marketers inviting them to particpate in the expo. Each marketer will be given a booth for them to display their material which will also be manned by the companies staff which will provide an opportunity for members to talk to the companies representatives one on one.

More information on the proposed Grain Marketing Expo will soon be available.

If you have any questions at this stage please call Sophie Carlshausen at the Liebe Group Office on (08) 9664 2030 or email [email protected] .

Disclaimer: All information in this newsletter is believed to be true and correct. No responsibility is taken for

incorrect information printed.

LIEBE GROUPAdministration ManagerThe Liebe Group is a progressive and vibrant grower driven group based in shires of Dalwallinu, Coorow and Perenjori. We are seeking a highly motivated and enthusiastic person to take on the role of Administration Manager. This is an excellent opportunity for the right candidate to move into an administrative management role with an innovative and nationally respected farmer group.

QUALIFICATIONS & EXPERIENCE: Experience with office administration is required.

MAJOR RESPONSIBILITIES:As Administration Manager, you will be responsible for the administrative activities of the Liebe Group, guided with strategic direction from an Executive Officer and Management Committee. This diverse role will include, but is not limited to: · Administration involving secretarial duties for the Executive Officer and Management Committee,

and also delivering membership outputs.· Promotion and publication activities including developing articles and coordinating the Liebe Group

newsletter, website, rural media and local paper.· Event coordination from planning, implementation through to reporting on all Liebe Group events

and field days.

The candidate would have these desirable skills · Project application development of identified areas of group priorities.· Financial and bookkeeping experience.

The person will be committed to continuous improvement within the agricultural sector, the successful candidate will possess exceptional interpersonal skills, with a proven ability to communicate with a diverse range of people. You will be team oriented, with demonstrated ability to work efficiently and effectively on a broad range of tasks.

This role will provide the successful applicant with an extensive network within the agricultural industry and offers a variety of work with an enthusiastic group of farmers and a supportive staff team.

POSITION: Depending on skills of the candidate this position is available from 2-3 days/week (0.5 FTE). There is some flexibility for work times - to be negotiated.SALARY: Salary package to be negotiated on experience.

LOCATION: The Liebe Group Office is located in Buntine. Buntine is part of the Dalwallinu Shire, 270 km North of Perth.

FOR FURTHER INFORMATION & APPLICATION FORMS: Contact Sophie Carlshausen (08) 9664 2030 or [email protected]

Applications close Friday the 18th July 2008.


LIEBE GROUP ADMINISTRATION MANAGER POSITION AVAILABLE

Currently the Liebe Group is compiling the second publication of ‘Frameworks for Forward Farming’ in relation to the GRDC adoption project. This second booklet is looking at another nine innovative farmers who were willing to share their stories on adoption of different management practices and technologies.

One case study to be documented investigates the introduction of Boer Goats on a full cropping enterprise focuses on East Dalwallinu grower, Dale Goodwin’s property.

Following is a ‘snapshot’ of this particular case study developed for Mr Goodwin’s goat enterprise.

“Goat production has many benefits relating to farm management and lifestyle whilst adding value and diversity to our enterprise” Mr Goodwin said.

“I perceive goats to be an effective alternative to sheep in the Northern Agricultural Region (NAR) of Western Australia (WA), and believe they will remain so in the future. This is mainly due to the ease of management and self sufficiency of goats, along with the lack of requirements for mulesing, controlling flies and/or lice, crutching and shearing” he said.

Farming System ‘Snapshot’:

Farm Name: “Aarro Downs”

Farmer: Dale Goodwin Location: 26km east Dalwallinu

Average Rainfall: 330mm (annual)Farm Size: 2,570ha

Enterprise Mix: 60% cropping and 40% livestock Soil Types: 40% Sandy soils 30% loams and gravels 30% Heavy clay

Dale Goodwin’s perceived critical success factors for the adoption of Boer Goats:1. Good electric fencing,2. Vermin control (foxes predominantly as they kill the kids (offspring)),3. High kidding (birth rate) percentages, where you make the $$$, and4. Selecting bucks (male goats) with good breeding characteristics.

General Boer Goat Background:The domestication of goat populations occurred approximately 9,000 years ago in south western Asia around Iran, Iraq and Turkey (Murray 2003). Goats were introduced to Australia in 1788 with the first fleet, as a source of meat, milk and fibre. Since their introduction, Australia has become the world’s largest exporter of goat meat (Murray 2003).

Goats that have been typically used for meat sales purposes in Australia and have traditionally been rangeland goats or culls from the milk and fibre sector. The introduction of South African Boer goats in 1995 has made it possible to produce a meat specific goat to either breed exclusively, or to improve the genetics of the existing flock (Mitchell, 2007).

Currently, the Australian goat population is predominantly made up of Boer ‘cross’ goats. However, many producers are working towards breeding a full blood Boer goat flock (Anon, 2007).

Boer goats have few management issues and may be raised in a similar manner to beef cattle. The temperament for both males and females is generally docile, with strong social bonding within families and herds often occurring (Mitchell, 2007).

Furthermore, Boer goats are early maturing, have high average growth and weaning weights, and are prolific non-seasonal breeders which makes them a favorable commercial goat for farmers. Combined with a high dressing percentage, goats can produce a good return for investment (Mitchell, 2007).


BREEDING GOATS TO KEEP GROWING GRAINEmma Wilson, Project Coordinator, Liebe Group

BREEDING GOATS TO KEEP GROWING GRAIN, CONTINUEDEmma Wilson, Project Coordinator, Liebe Group


Downfalls of Boer Goat implementation as perceived by the Goodwin enterprise:

- The need and expense of bringing fences up to scratch to contain the goats across the farm,

- Only one source of income is gained annually from the goats (breeding goats – no wool production, milk or meat),- Income relies primarily on the number of kids born (weaning percentages).

Benefits of Boer Goat implementation as perceived by the Goodwin enterprise:

- Goats effectively control weeds,

- No extra labour is required with adoption,- Limited infrastructure changes are required with adoption,

- No need for shearing, crutching, mulesing (huge benefit once the mulesing ban is implemented across Australia in 2010),

- Short term pain for long term gain (need to get flock to a level with good genetics and higher numbers to make it a worthwhile enterprise).

Adoption process for Boer goat implementation within the Goodwin enterprise:

The Goodwin enterprise ran sheep up until 1994 when Annual Ryegrass Toxicity (ARGT) became too much of a problem with the sheep enterprise and resulted in numerous sheep deaths. When Mr Goodwin took over the farming enterprise in 1996 he decided to look for an alternative livestock option that could be easily implemented and would compliment his existing cropping rotation.

Following the decision to re-adopt livestock into the farming enterprise, Mr Goodwin researched different options by discussing with other farmers, both local and state wide, about what livestock options were available and their associated management.

For Mr Goodwin, goats seemed to fit all the criteria as low maintenance, resilient stock. The initial decision to invest in goats was driven by discussions with hobby farmers in the south west of WA with whom Mr Goodwin still remains in contact with.

Mr Goodwin decided to implement Boer goats following research he conducted which informed him the Boer goat breed had a placid temperaments and are more easily transported than the rangeland goats. This trait, along with good genetics for meat and confirmed feeding habits made the Boer goats a desirable breeding goat to Mr Goodwin.

A critical influencing factor towards Mr Goodwin’s ‘adoption decision’ was that shearing, crutching and mulesing are not required with the adoption of a livestock enterprise. The reason this was such a critical factor was because there was no infrastructure on the farm to enable these management practices to be conducted, unless a significant capital investment was incorporated with adoption.

Mr Goodwin didn’t ‘trial’ goat production as such, instead he decided to adopt the goat enterprise by gradually

increasing flock numbers in accordance with the farms capacity to accommodate more livestock, whilst managing and improving the flock genetics each season.

During the initial years of adoption, Mr Goodwin also visited other goat farms to the south of WA to determine what was required to maintain a goat flock, infrastructure requirements and breeding techniques associated with successful goat management.

In 1999, Mr Goodwin purchased the farms first 30 rangeland goats with the intention of cross breeding them with Boer goats to sell them for meat. Boer buck (male) goats were purchased initially from a grower in Chittering, WA.

From the initial does (females) and bucks purchased, Mr Goodwin was able to increase his goat numbers between 1999 and 2006 up to 2,000 goats. This was achieved by purchasing 880 Boer does and through his existing self replacing goat flock.


As the flock grew, Mr Goodwin purchased 14 more bucks for breeding with desirable genetics to continually improve the goat flock. As the goat numbers increased and the Boer goat characteristics became more evident throughout the flock, Mr Goodwin decided to sell his goats as breeding goats rather than for meat. This was an easy decision as the price paid per goat was much higher when sold for breeding purposes and there was a significant demand for Boer breeding goats in both national and international markets.

Unfortunately, the goat numbers had to be reduced due to dry seasons and at the end of 2006 numbers had

decreased to 640 breeding does. This did have benefits for the enterprise as Mr Goodwin, with the assistance of a Landmark livestock advisor, was able to select goats to be kept with more desirable traits and remove the goats with the undesirable traits.

From 2008, Mr Goodwin aims to again increase his flock numbers back up to 1,000 breeding does and feels that

after the drought culling he will have stronger Boer goat genetics in his flock which are more desirable for the market. In addition to the goats sold as breeders, cull goats are sold to the abattoir in Gingin (WA) for their meat.

All does in the flock are kept for five years before they are sold so there is consistent turnover and improvements made to Mr Goodwin’s Boer goat flock genetics. To increase goat numbers after the flock has been reduced, 20% of the best kids born each year are kept and the number of does sold is reduced.

One issue encounted, following the implementation of goats, especially when stock numbers are high, was the ‘ring barking’ of trees in pasture paddocks. This problem was overcome following discussions Mr Goodwin had with other breeders who advised a mineral supplement for the goats. The mineral supplement significantly improved the issue and when available for the flock achieved a permanent reduction in the ‘ring barking’ problem.

The goats feed on volunteer pastures over winter and stubbles over summer. Additional feeding throughout the year (in particular summer) is generally unnecessary as the goats are able to maintain their weight on these feed sources all year round. In response to the dry 2007 season, Mr Goodwin fed the goats extra grain and hay to keep them maintained throughout the summer.

In addition, Mr Goodwin planted a paddock of sorghum at the end of 2007 to opportunistically take advantage of the high summer rainfall and provide feed for the goats over this period. This however, is unusual for the enterprise.

With adoption, electric fences have been implemented along the bottom of the existing fences to keep the goats contained in the paddocks. The only other infrastructure change with adoption has been to increase the height of the existing sheep yards with old weld mesh and the placement of a pipe on the top to contain the goats. Goats are managed in the yards approximately four to five times a year for drenching, ear marking/tagging, draughting and applying the occasional parasite control.

Upcoming Considerations for the enterprise:The major considerations for Mr Goodwin to improve the goat enterprise into the future include, hiring a ‘V-belt’ handler to make working in the yards with the goats easier and changing over the existing ‘cockie gates’ to weld mesh gates.

Mr Goodwin is also considering setting up a 30ha fox proof ‘kidding’ paddock to ensure losses of kids to foxes are minimal.

Look out for this any other case studies in the second publication of ‘Frameworks for Forward Farming’ being published in August. For further information please contact the Liebe Group office on (08) 9664 2030.

References:Anon (2007) Boer Goat Breeders’ Association of Australia LTD, December 2007 newsletter “Boer Briefs” number 46, December issue (Online) http://boergoat.une.edu.au/left.htm .Mitchell. T (2007) Primary Production Report, Prepared for the Directors of Aerospace training Services Trust, Berry Boers, NSW.Murray, P. J. (2003). Background to Goats and Goat Meat Production in Australia [online]. PCM Consulting http://www.pcmconsulting.com.au/goats/information/papers/background.htm .

BREEDING GOATS TO KEEP GROWING GRAIN, CONTINUEDEmma Wilson, Project Coordinator, Liebe Group

LIEBE WOMEN’S FIELD DAY A GREAT SUCCESSLara Swift, Administration Manager, Liebe Group

The 2008 Liebe Group’s Women Field Day was held on 18th June at the Dalwallinu Recreation Centre. The theme of the day was ‘Increasing the management capacity of women to build a sustainable future for their family, farm business and the agricultural industry’.

The field day was very well attended with nearly 160 women gathering at the new venue for a day of networking, socialising and listening to inspirational speakers.

The day began with Grain Pool Accumulation Development Manager, Jacinta Falconer, discussing the current demand for canola. This was followed by Marchagee grower, Deborah Lowden, who presented on the success of her lavendar business through diversification.

Next was ‘back to basics with nutrition’ presentation from Nutrient Management Systems Director, Wayne Pluske and a very well received succession planning presentation from solicitor Lucy King. Wellards Managing Director, Steve Meerwald, also gave an insight into the highly topical livestock export industry.

Rabobank Succession Planning Facilitator, Kim Lee gave an in-depth presentation on how to run successful family business meetings before Richard Harper from the Forest Products Commission explained some facts and figures in carbon trading.

Attendees also heard from 2008 RIRDC WA Rural Women of the Year winner, Maggie Edmonds who gave an entertaining presentation on her journey in the industry and 2007 RIRDC winner, Deb Bain, on breaking down the urban rural divide through FarmDay.

The highlight of the day came after lunch with a presentation by the popular and interesting author and cleaning expert, Shannon Lush. Shannon wowed the crowd with her story of her path to success and extensive knowledge of how to remove stains.

The success of the day would not have been possible without the commitment and hard work undertaken by the Liebe Group’s Women Committee. We would also like to thank the enthusiastic team of local male helpers who prepared and served lunch to the ladies.

The 2008 Liebe Women’s Field Day was a great platform to motivate and inspire rural women and showed exactly what us ladies can do!


RECORD NUMBER OF TRIALS FOR SPRING FIELD DAYChris O’Callaghan, R&D Coordinator, Liebe group

The 11th of September is the date to put in your diary for the 2008 Liebe Group Spring Field Day, and the day is promising to be one of the best yet.

The trial site is looking good after solid rains in April and June got everything away early. We have also received great support from R&D organisations, with a total of 22 trials being conducted at the site. This record number of trials shows how much value the Liebe Group is for its members and industry alike, and how important it is to keep ongoing research and development in the Liebe area.

The 2008 Main Trial Site is located on Clint, Ian and Helen Hunt’s property, 12km south east of Marchagee.

Wheat national variety trial at the 2008 Liebe Group main trial site.

RECORD NUMBER OF TRIALS FOR SPRING FIELD DAY, CONTINUEDChris O’Callaghan, R&D Coordinator, Liebe Group

One of the most interesting trials at the site is the DAFWA’s wheat time of sowing trial. This trial compares 24 wheat varieties, sown at three different times. With good early April rains, this trial has proven to be very pertinent and will provide good information in regards to which varieties should be sown at which time.

CSBP have once again come up with an interesting trial. They will be looking at Nitrogen and Phosphorus rates on wheat and canola as well as the interaction between the two. This trial has come up very evenly and should provide some interesting results.

Canola Breeders of Western Australia have come on board again this year with a trial exploring the effects different seed treatments has on canola varieties of three different maturities. The seed treatments used will be Jockey®, Jockey® + Gaucho, and Jockey® + micro nutrients.

These trials and many more will be showcased on the 11th of September during the liebe Group Spring Field Day so look out for further developments in the coming months.


AGRONOMIC UPDATEDave Scholz, Merchandise Manager, Elders Dalwallinu

After a fantastic late April rain the moisture since has been at a premium with a very dry May and a dry early June. The recent rain certainly has perked the district up with most crops germinated now and later seeded crops have emerged evenly, even if it is late.

Early crops are looking good and will need looking after. The late June rain has bought a germination of weeds, therefore an assessment of crop and weed stage, environmental factors and crop potential will be necessary before any spray decision is made.

Later germinating cropsAn even germination can mean better choices and given small radish controlling them early will always result in a better outcome.

Some brews to consider: 2 leaf crops - Barracuda, Ecopar and MCPA Amine. 3 leaf crops - Paragon/Tigrex, Precept, Diuron and MCPA, Paragon and Brom MA, Xpand and Brom MA, LVE MCPA with spike.

Remember even if these products do not control all weeds they will take out the most damaging plants before they compete for moisture and nutrients, and some products do exhibit residual activity. Note a few new products with early timing and novel modes of action.

Early germinating crops (more advanced)Beware of the crop stage timing in terms of phenoxy sensitivity. Generally radish will be bigger and may contain transplants. Lontrel will be needed for capeweed escapes. Common brews may contain: Paragon and Brom MA, LVE MCPA, LV Ester 680, Broadside.

Brome grass and other grassesCan be extremely competitive with crop. Need to be taken out before the broadleaves as they will generally be more competitive early depending on numbers. Brome products: Monza, Atlantis and Crusader (new). Barley grass: Monza, Atlantis. Wild Oats: Axial, Cheetah Gold, Achieve. Achieve/Hoegrass, Topik, Monza, Atlantis, Crusader.

Don’t let weed burdens chew up yield in a season where prices are high and yield is everything. As you can see there are a lot of choices and factors to consider before putting the product in your tank and going spraying.

Please contact Dave for further information by phoning (08) 9661 2000.


WHEAT FOLLOWING CORNRyan Duane, Grain Marketer, AWB

Market Outlook

The Wheat market continues to be a follower of corn despite wheat prices being fundamentally bearish in both the US and global markets.

Wheat fundamentals remain weak with US harvest pressure and a lack of production threats to spring wheat volumes.

Harvest conditions continue to be favourable and production prospects remain strong. US Harvest has extended to southern and central Illinois this week. Farmer selling has been slow to this point but it is expected that as storage fills more wheat will make its way onto the market and US domestic prices will weaken.

The USDA quarterly stocks report showed that demand rationing has been more effective at current high prices than what the market had expected.

The USDA estimated corn stocks at 4,028 Mil Bu compared to the average trade estimate of 3,894 Mil Bu, wheat stocks were estimated at 306 Mil bu compared to the average trade estimate of 261 Mil bu. The higher than expected stocks lead to the dramatic fall in corn and wheat earlier in the week.

National Pool

Estimated Pool Returns (EPRs) for all wheat grades in the AWB 2007/08 and 2008/09 National Pools are unchanged The 2007/08 EPR for benchmark APW grade for the AWB Number 1 National Pool remains at $418/t (FOB GST exclusive).

The 2008/09 EPR range for APW wheat is $370 - $390 (FOB, GST exclusive) and the Western Australian noodle grade wheat is now at $375 - $395 (FOB, GST exclusive).

0708 Second Distribution

AWB made a $603 million FOB (GST exclusive) payment which, after allowing for site-to-sea charges, will provide a $571 million (GST exclusive) net payment to Australian wheat growers who delivered to the 2007/08 AWB National Pool on Wednesday 9th July 2008.

The 2007/08 National Pool received 4.35 million tonnes of wheat and the sales and marketing program is progressing well. For benchmark APW the distribution was $134/t, with the cumulative percentage been paid to date of 50%.

The third distribution will be paid in October with AWB still expecting the pool to be finalized by December 2008.

This document is sent to you as a guide and for general information purposes only. Please seek professional advice before you take any action on the matters set out. AWB accepts no responsibility for any action you take or any losses you incur.


MARKET UPDATE - JULYAudrie Morgan, Planfarm Marketing

WheatJune saw CBOT wheat futures prices receive support from the corn market when floods damaged large areas of an already struggling corn crop in the US. A dryer weather forecast then triggered a bout of fund selling and the prices eased. As we moved closer to the July contract delivery period the funds began unwinding their corn/wheat spreads by buying back wheat contracts and selling corn contracts to close out their positions. This saw the wheat price strengthen and the corn price ease.

US markets were closed on Friday for their 4th of July holiday. In today’s trade wheat, corn and soybeans have all opened much lower as the Mississippi River is reopened. This is the major channel for transporting grains out of the US Midwest. Corn has fallen about 3% while wheat and soybeans are down around 1%.

The forecast is for dryer, warmer weather over most of the US grain belt which will improve growing conditions for the corn crops and allow harvest of the SRW wheat crop to progress well. Favourable US holiday weekend weather, a Midwest weather forecast offering little threat to flowering corn and soybean crops over the next 10-14 days and position squaring ahead of the USDA and NASS releasing their July crop and WASDE report on Friday. It is expected the trade to position short wheat anticipating a further jump in the US and world wheat crop.

The area of SRW wheat crop is estimated to be around 17% greater than last year and early indications are that yields will be well above average. If the price of corn falls on the back of improved growing conditions, reduced demand for ethanol and less export demand as a result of alternative feed sources being used in stock feed rations, the price of wheat will fall faster.

At present the CBOT wheat futures price brode away from the cash sales price as we approached the July contract delivery period and US wheat is at present uncompetitive on the export market (US basis is $1.60 below CBOT at the Gulf). The market has to encourage export interest or move wheat into the stock feed market to maintain demand and support prices. To increase exports, the US price for wheat will have to compete with Russian and Ukraine wheat which at present is well below CBOT futures prices.

The area planted to wheat in the Northern hemisphere is up around 6% on last season, with the EU, Russia and Ukraine all reporting excellent growing conditions with no significant production setbacks to date. The northern hemisphere winter wheat harvest will be in full swing in the last half of July and given no production issues in the interim, will be a very big one.

Given the above you will be forgiven if you think wheat prices are about to fall, however the market is still very nervous about Australian and Argentine wheat production and as we draw closer to the limits of the planting window, production estimates are beginning to come under downward pressure. Where the wheat price finally ends up at harvest time may well depend on rainfall in these two countries during the next week to ten days.

The Argentine House has approved Madam President Kirchner’s soy tax in a narrow margin in a special session late Friday. The tax will now move for Senate Approval where she has much wider support. It’s expected that the Senate could rubber stamp the tax later this week, which could renew the Argentine farm protest and strike. This will be one to watch.

BarleyLike wheat, the northern hemisphere barley crops are looking excellent at this stage and the Middle Eastern and Chinese are using up old season stocks while waiting for the potentially abundant new season supply to hit the export market. The expectation is that prices will fall as a glut of cheap Russian and Ukraine barley is pushed onto the export market during harvest. These sources of supply also have a freight advantage over Australian barley and in times of high bulk freight costs this becomes a significant advantage.


MARKET UPDATE, CONTINUEDAudrie Morgan, Planfarm Marketing

Australia however is a major player in the export barley market, particularly the malting barley market and like wheat, the crop is not yet made.

CanolaAgain the northern hemisphere crops have improved in the last week or so. Canada received reasonable rainfall in areas where needed, the EU, Russian, Ukraine and Chinese crops are looking excellent, Australian crops in the higher rainfall areas are going well and the South American soybean crops are expecting record production. Conditions have improved for the planting of soybeans in the US and some corn area will be re-sown to beans during the next week or so if forecast dryer conditions eventuate. Demand for vegetable oil for food and bio-diesel production is rising and prices remain strong, however world crop production estimates are also increasing by the day. If all goes well with production leading into harvest, prices could come off from present values of around $724-$728 FIS delivered port.

SummaryGiven the above and the fact that grain prices are at present very profitable, it would be a pity to leave them on the table if your production risk is not too great. This is the point where the difficult decision of price verses production risk should to be made. Only lock in these prices if you can still sleep at night and only for a safe percentage of your estimated production. Also, allow some room to move if an unexpected major production issue sends grain prices back through the present highs later in the season.

The very tight corn situation will always support wheat prices, but the corn price will only go as high as demand allows.

Another possible influence on commodity prices is the debate in the US which is considering putting restrictions on fund investment in commodity markets, especially those related to food and oil. This could have a bearish effect on grain prices.

WA FARMER CONFIDENCE SOARSRabobank Rural Confidence Survey

Rural confidence in Western Australia has continued to climb and is now at near-record levels. The rise in farmer confidence – the second successive quarter of improvement – comes on the back of strong prices for key commodities and favourable seasonal conditions across much of the state.

Rabobank Rural Confidence Survey Results at a Glance:

· Western Australian rural confidence has continued to climb and is now at a near-record level.

· Strengthening commodity prices – along with expectations of favourable seasonal conditions – had the biggest impact on farmer confidence this quarter.

· Sentiment has increased among all farm types.

· Income expectations and investment intentions are also strong.

The latest quarterly Rabobank Rural Confidence Survey – taken a month ago – has shown 59 per cent of WA primary producers expect the agricultural economy to improve over the next 12 months, up from 46 per cent last quarter and 42 per cent in the previous survey. Just 11 per cent of WA farmers were found to be expecting conditions to worsen.

The index is expected to challenge the record set back in May 2001 if conditions improve further next quarter.

A definitive monitor of outlook and sentiment in Australian rural industries, the Rabobank Rural Confidence Survey questions an average of 1,200 farmers across a wide range of commodities and geographical areas throughout Australia on a quarterly basis.

WA FARMER CONFIDENCE SOARS, CONTINUEDRabobank Rural Confidence Survey


Rabobank state manager for Western Australia Crawford Taylor said the positive sentiment was a strong indication that WA farmers were optimistic about the current season, with many looking to put poor seasons in 2006 and 2007 behind them.

“Many areas experienced record dry conditions in 2006 which really challenged the states’ rural producers. Though most areas saw more rain in 2007, this year so far has seen the biggest improvement in conditions. We have been fortunate to receive rain in key agricultural areas at the right time and at a time when commodity prices, particularly for grain and dairy, are particularly strong” he said.

“The state has received widespread season-opening rains throughout, however dry pockets still exist, particularly in the eastern wheat belt and within the Esperance region. For most areas however, this could be the best start to a season for many years. The majority of northern wheat belt farmers will be particularly relieved, having received summer rainfall combined with opening rains. ”

Mr Taylor said farm gate dairy prices continued to improve with the industry focusing on increasing supply to meet market demand.

“Demand is so strong at present that some processors are looking at taking equity stakes in new projects inside the farm gate to secure future supply. Rising input costs are a constraint on the industry however, with prices for feed grain, oil, fertiliser and labour all high.”

Of the farmers in WA expecting the agricultural economy to improve over the next 12 months, increasing commodity prices were ‘top of mind’, cited as a reason for optimism by 65 per cent of respondents, up from 46 per cent last quarter. A total of 47 per cent nominated seasonal conditions as a reason for improved sentiment.

While global agricultural prices remain at high levels for most commodities in historical terms, there has been a significant pull back in prices from the extreme highs reached in March. World wheat prices have been most affected, falling by 40 per cent since March, with world sugar and cotton prices falling 28 per cent and 24 per cent respectively over the same period. Australian rural commodity prices, as reflected by the Reserve Bank of Australia’s Commodity Index, are shown to have fallen by around eight per cent in April, month-on-month.

WA farmers’ income expectations also remained strong, with 61 per cent of respondents expecting their gross farm income to improve in the next 12 months (slightly up on that recorded last quarter). The improvement in income expectations comes after a generally good start to the year for gross farm incomes. A total of 50 per cent of Western Australian producers reported higher gross farm incomes in the first three months of 2008 compared to the same period last year, with only 23 per cent reporting lower incomes.

Encouragingly, WA farmers’ investment intentions – an important indicator which reflects farmer spending in rural and regional communities – remained at a high level this quarter with 34 per cent of primary producers expecting to increase investment in their farm businesses in the next 12 months and just seven per cent expecting to decrease their investment. The survey found that while farm succession was an issue for Western Australian farmers, most had not undertaken any formal succession planning. Of those who believed they may have a future need for succession planning, just 10 per cent had a formal succession plan documented, while a further 60 per cent had taken some steps to put a plan in place (such as discussed with family or sought professional advice).

The most robust study of its type in Australia, the Rabobank Rural Confidence Survey has been conducted since 2000 by an independent research organisation interviewing a panel of approximately 1200 farmers throughout the country each quarter. The next results are scheduled for release in August 2008.

The CBH Group is offering growers the chance to experience and enjoy the CBH Group Asian Study Tour 2008.

Departing on Wednesday 20 August, 2008, the 9-day itinerary includes a tour of the Interflour processing facilities in Singapore, Indonesia and Vietnam. The tour will be subsidised by the CBH Group and the contribution required from participants is capped at $2,000.

To be considered for the CBH Group Asian Study Tour, applicants are required to submit an expression of interest outlining what they’d like to get out of the experience.

For more information on the tour, or to submit an expression of interest, growers can contact Brianne James, CBH Corporate Affairs on 9237 9818 or email [email protected]

To be part of this unique experience you must get in quick as applications close Tuesday,15 July 2008.

CBH GROUP ASIAN STUDY TOUR 2008


RAIL NOT AN ATTRACTIVE INVESTMENTCBH Group

Deregulation of the grains industry has had a dramatic impact on the way CBH Grain Operations stores and handles grain and the system must change if it is to remain viable.

CBH Group Chief Executive Officer Imre Mencshelyi said that there is no security for investment within the supply chain from a rail or storage perspective.

“The storage and handling system was developed in a highly regulated marketing environment with only two marketers accessing bulk grain stocks for export,” he said.

“Currently, under part-deregulation, multiple marketers now need access to smaller stocks for export. It’s creating an unworkable and costly logistics nightmare”.

“We are now being asked to accumulate cargoes from numerous sites and many of these movements are for very low quantities. One 55,000 tonne cargo was accumulated from 28 sites. It costs about $6,000 to open a bulkhead and it’s just not cost effective to open a bulkhead for 10 tonne of grain,” he said.

Rail efficiency and the future of the Western Australian grain rail network is also being marginalised in a deregulated market.

“Only two of CBH Grain Operations’ customers are obligated to use the state’s rail infrastructure at the moment, and so we’re seeing more grain being transported by road by new acquirers entering the market,” said Mr Mencshelyi.

“This increases the risk of further transport costs for the grain remaining on rail and causes environmental and safety issues for country roads, but most importantly is making investment in rail infrastructure very unattractive.”

It is anticipated that over 40 owners of export wheat stocks will enter the market once fully deregulated.

“Dramatic increases in the number of cargo accumulations from multiple sites up-country and the uncertainty in freight control will make the supply chain inefficient and force the CBH Group to introduce new charges to reflect these inefficiencies,” he said.

“An inefficient system is costly to growers and customers and is just not affordable.

“That’s why we’ve been consulting with industry on alternative supply chain management solutions. We’ve been looking at ways to improve transport utilisation and ensure continued investment in the transport network, streamline grower receivals and provide marketers greater access to growers and sites.

“We need to make sure we can secure the long term security and viability of growers up country receival point and rail network.”


LIEBE WOMEN’S FIELD DAY - 18TH JUNE 2008

Nearly 160 women attended the 2008 Liebe Women’s Field Day.

Shannon Lush wowed the crowd with her story of success and extensive knowledge of how to remove

stains.

Attendees hearing from a local Marchagee grower, Deborah Lowden, on the success of her lavendar

business through diversification.

2007 RIRDC winner, Deb Bain, presenting on how she is breaking down the urban rural divide through

FarmDay.

Some of the male kitchen helps (L-R) Dave Scholz, Nigel Dickins and Ron Carlshausen.

Wellard Rural Export Director Steve Meerwald discusses the highly topical Livestock Export Industry.


Staff Executive Officer

Sophie Carlshausen [email protected]

Adminstration ManagerLara Swift

[email protected]

Project CoordinatorEmma Wilson

[email protected]

R&D CoordinatorChris O’Callaghan

[email protected]

Sponsorship Coordinator Merrie Carlshausen

[email protected]

Event Date Location Attendees

Post seeding Main Trial Field Walk followed by Pizza ‘n’ Port Night

Mon, 14/07/08

Main Trial Site - Clint Hunt, Marchagee

Members

Paddock to Plate - Young Farmers Tour

Mon,21/07/08 - Fri 25/07/08

Perth Members

Liebe Group Spring Field Day Thurs, 11/09/08

Main Trial Site - Clint Hunt, Marchagee

Everyone

TO:

FROM:

Liebe GroupPO Box 90Wubin WA 6612Ph: 08 9664 2030Fax: 08 9664 2040

Liebe Group Calendar

2008 General Meeting Dates:14th July, 11th August,

8th September, 13th October & 8th December.

Be on the lookout for...- Liebe Group Grain Marketing Expo

- Long Term Research Site Field Walk

- Liebe Group Spring Field Day

liebe group newsletter · liebe group newsletter july 2008 volume 11 issue 5 in this issue ... by...

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