OCTOBER 2015
PRODUCED FOR THE BENEFIT OF AUSTRALIAN GRAIN GROWERS BY
NEW VARIETIES READY FOR SOWING IN 2016 COVER STORY/ ROBERTS FAMILY, CLEVE, SOUTH AUSTRALIA
GRAIN MARKET UPDATE/ SMOOTH SAILING IN THE NORTHERN HEMISPHERE
SUPPLY CHAIN/ EXPORTERS SUPPORT LONG TERM PORT ACCESS AGREEMENTS
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OCTOBER 2015
PRODUCED FOR THE BENEFIT OF AUSTRALIAN GRAIN GROWERS BY
01 02 06 09 10 18 20 24 26 30 32 34 36
FOREWORD/ POSITIVE PRODUCTION OUTLOOK FOR WINTER CROPS
GRAIN MARKET UPDATE/ SMOOTH SAILING IN THE NORTHERN HEMISPHERE
YIELD/ NEW VARIETIES READY FOR SOWING IN 2016
© Copyright. Editorial material published in Grain Business is copyright and may not be reproduced in any form without written permission from the Publisher or Editor. Print Post Approved: PP 510545/00616
IN BRIEF/ GLENCORE GRAIN PAYMENT PAPERWORK ONLINE
FARM PROFILE/ ROBERTS FAMILY
IN BRIEF/ GLENCORE GRAIN SUPPORT FOR LOCAL COMMUNITIES
QUALITY MANAGEMENT/ CHEMICAL CONTAMINATION COULD PUT MARKETS AT RISK
GLOBAL INSIGHT/ MONOLA DELIVERS HEALTHY BENEFITS
SUPPLY CHAIN/ EXPORTERS SUPPORT LONG TERM PORT ACCESS AGREEMENTS
SUPPLY CHAIN/ AUSTRALIA’S PORT TERMINALS
FARM SAFETY/ PRACTICAL HANDBOOK FOR ALL AUSTRALIAN GRAIN GROWERS
INDUSTRY SPOTLIGHT/ ACCUMULATION TEAM PROVIDES SERVICE AND SECURITY
INDUSTRY SPOTLIGHT/ BROADENING THE BIOSECURITY INSPECTION BASE
PUBLISHER Glencore Grain Pty Ltd Level 1, 186 Greenhill Rd, Parkside SA 5063 T: (08) 8211 7199 E: gbm@glencoregrain.com.au DESIGN & PRODUCTION fuller.com.au ADVERTISING Jane McBride Communications Manager, Glencore Grain T +61 8 8304 1368 jane.mcbride@glencoregrain.com.au COVER NOTE Roberts family on the farm. COVER PHOTO: Tom Roschi, trp.com.au
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FOREWORD
FOREWORD/
PHILIP HUGHES, GENERAL MANAGER, TRADING AUSTRALIA/NEW ZEALAND
POSITIVE PRODUCTION OUTLOOK FOR WINTER CROPS As harvesting of the Australian winter crop begins, the production outlook is surprisingly positive given a low annual rainfall, an El Nino being declared and average growing conditions at the start of the season. In many areas the crop has been saved by very well timed rain events.
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heat, barley and canola production should be above average across Western Australia, South Australia, New South Wales and Queensland. Victoria is the only region where crops have suffered due to a lack of rain, and the remaining weeks leading into harvest will be critical for production in those areas. In this edition of Grain Business our grain market update focuses on global production during 2015. Without any major weather events, production of key crops in the northern hemisphere has been very good which means that forecast global stocks are at comfortable levels across all commodities. Australian growers have seen global prices ease in recent months, but the softer Australian dollar has been a timely buffer so local prices have been holding up well when compared to the
OCTOBER 2015
sell off in key futures markets off shore. Most growers will sell a good portion of their crop in the coming months. We encourage growers to do their own due diligence when deciding who to sell their grain to: know the company you are selling to, check that they are an established business and they have sound financial backing. In particular compare payment terms as these vary between buyers. Growers are already starting to think ahead to next year’s crop, what to plant and which varieties will deliver the best financial outcome in their region. While Mace is far and away the most popular wheat variety currently being grown in Australia, in this edition we take a look at the new varieties coming through the breeding system which will replace Mace in the longer term We also look at manola, a similar crop to canola agronomically but
rapidly gaining favour from buyers for its healthier oil. Farm safety is critically important especially during harvest when the pressure is on to get the crop off. The Australian grain industry has collaborated to produce a practical handbook and we highlight the top five steps for managing farm safety. This year, please be mindful of your health and safety and the safety of everyone around you – especially children.
Philip Hughes General Manager, Trading Australia/ New Zealand, Glencore Grain.
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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GRAIN MARKET UPDATE
GRAIN MARKET UPDATE/
WORDS/ PHILIP HUGHES, GENERAL MANAGER, TRADING AUSTRALIA/NZ, GLENCORE GRAIN
SMOOTH SAILING IN THE NORTHERN HEMISPHERE Australian growers are eagerly awaiting the start of their winter crop harvest. The major northern hemisphere crops are nearly all in the bin except corn and soybeans in the United States (USA). The worldwide supply and demand situation is now clearer with the near completion of harvests in North America, Europe, Russia, and the Black Sea region. Australia and South America are the only areas where final production is unknown, although downside risk is now minimal.
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GRAIN MARKET UPDATE
OCTOBER 2015
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GRAIN MARKET UPDATE
Overall, this year, there have been no major production issues anywhere in the world. Since the first 2015/16 crop forecast was released by the United States Department of Agriculture (USDA) in May, they have increased their total global grain and oilseed production forecast. In the last four months, wheat has increased 12 million metric tonnes (mmt) to a record breaking 731mmt, soybean has increased 3mmt to 320mmt, barley has increased 5mmt to 145mmt and sorghum has increased 4mmt to 69mmt. As far as the crop reductions go, the USDA corn production forecast has decreased 12mmt to 978mmt and canola has decreased 3mmt to 65mmt.
GLOBAL PRODUCTION WHEAT 2014/15 2015/16 (MAY EST) 2015/16 (SEPT EST) PRODUCTION (MMT) 690
700
710
720
730
740
120
130
140
150
980
990
1000
1010
60
70
80
90
310
320
330
340
BARLEY 2014/15 2015/16 (MAY EST) 2015/16 (SEPT EST) PRODUCTION (MMT) 100
110
CORN 2014/15 2015/16 (MAY EST) 2015/16 (SEPT EST) PRODUCTION (MMT) 960
970
CANOLA 2014/15 2015/16 (MAY EST) 2015/16 (SEPT EST) PRODUCTION (MMT) 40
50
SOYBEAN 2014/15 2015/16 (MAY EST) 2015/16 (SEPT EST) PRODUCTION (MMT) 290
300
Source: USDA World Agricultural Supply and Demand Estimates, September 2015
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GRAIN MARKET UPDATE
Canada After a prolonged dry spell that started to create some nervousness, crop conditions have improved with very timely rains across the prairies in early-mid July, and an above average crop is now a possibility. Harvest has begun in good conditions, after a period of fine and warm weather that has brought the crops to maturity. There will certainly be some areas that have suffered heavily with the dry conditions and will not recover, but it is considered these areas will not have a significant effect on the overall harvest result. Wheat and barley production are both forecast to be down approximately 7 per cent year on year, but wheat is on track for an average crop of 25mmt, while barley will be 2mmt down on average with production forecast to be 7mmt. Canola is also forecast to be down year on year by 15 per cent, and slightly below average at 13mmt. Ukraine Harvesting of the grain crops in Ukraine this year has seen slightly lower yields than last year. The main feature of the growing period was the diversity of weather conditions across the production areas, some were too wet, some were too dry. For wheat and barley production, soil moisture reserves and the absence of prolonged heat spells at the final stages of the season led to better than expected yields. Yields, however, are still 6-7per cent below last year due to overall poorer season and crop conditions and the impact of economic instability upon agriculture. The USDA forecast for wheat production in Ukraine this year is 27mmt and 9mmt for barley. Corn yields are expected to be down slightly this year due to warm weather and drought conditions at the kernel filling stage in some production regions. The USDA has predicted a 1 million tonne production decrease to 27mmt. However, with lower domestic feed demand due to declining living standards, and the need for local farmers to sell their crops, a similar volume of corn will be available for export. Russia The Russian crop overall has fared well after several weather scares. A total of 10 regions were in drought, and in some a state of emergency was declared. It was too wet in other regions especially as farmers began to prepare for harvest and their harvest was constantly interrupted by rain and storms. Wheat production is forecast to be slightly higher this year, 61mmt compared to 59mmt in 2014/15. Barley production is the same as last year year at 20mmt. Russian growers are reluctant sellers as the Russian
OCTOBER 2015
Ruble threatens further weakness, so their preference is to hold onto their grain as a store of value. A rumoured change to the export duty for grains has also caused caution in the wheat market. Europe (EU) Very hot conditions caused some crop stress in late June and on the eve of harvest; however, the crop in general has weathered these issues well. The winter crops were well advanced at the time of the heatwave so effects have been minimal. There has been a nervous wait for the producers of the high value spring wheat and malting barley, but surprisingly (and against forecast) this has also weathered the heatwave pretty well. Wheat production is forecast to be 154mmt, only slightly down on last year’s record. Barley production is down 1mmt year on year, with production forecast to be 59mmt. Corn seems to be the one crop most affected by the heat and dry conditions, with corn production forecast to drop by around 20 per cent from last year’s record harvest. The USDA is forecasting production of 58mmt. UK The UK is having an excellent year with above average wheat production and record barley production forecast. Strategie Grain is forecasting wheat production of 15mmt, a decrease of 2mmt year on year. With the wheat harvest well underway, some big yields are being reported; 10-12t/ha is common news across varying soil types, with only yields on lighter land relatively disappointing with 7-8t/Ha. Winter barley production is forecast to be a record; however, spring barley production is down slightly so overall barley production will be similar to last year at 7mmt. There are reports of record yields in some barley crops, with one grower harvesting 12t/ha and others averaging 8t/ha. USA The Spring wheat harvest is all but complete in the USA. Overall, the USDA is forecasting a bigger wheat crop year on year, and has increased their 2015/16 estimate since the first estimate in May. The current forecast is 58 million tonnes, 1 million tonnes higher than the five year average. The USA corn harvest is underway with yields better than expected and in some cases better than last year. The USDA is forecasting production of 345mmt this year, down 16mmt on last year, but still well above average. Soybean plantings in the USA increased this year, with lower corn plantings. The condition of the 2015 crop as it heads towards harvest is good to average with production currently forecast at 107 million tonnes, slightly lower than last year’s crop.
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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YIELD
YIELD/
WORDS/ KATE FULLER
NEW VARIETIES READY FOR SOWING IN 2016 Since its introduction in 2008, Mace has become the Australian wheat farmer’s perfect all-rounder.
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iven its wide acceptance breeders have been working overtime to produce Mace-based varieties, which offer the same broad adaptation but improve on characteristics such as yield and stripe rust resistance. Dan Vater from Australian Grain Technologies (AGT) says that Mace is still a benchmark variety for breeders, with Mace type varieties continuing to produce good yields. “We released Corack, a close relative to Mace, in 2011, and it has proved itself to be very well suited to marginal areas, where farmers are growing wheat on wheat,” he said. “It’s currently one of the best varieties available that combines both yellow leaf spot and cereal cyst nematode (CCN) resistance, which are two major constraints when growing wheat on wheat. “For those marginal areas it’s a good low risk option and really well adapted to environments with low rainfall, where its yields are exceptional relative to other varieties.”
It’s (Mace) currently one of the best varieties available that combines both yellow leaf spot and cereal cyst nematode (CCN) resistance, which are two major constraints when growing wheat on wheat.
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YIELD
We’ve been chasing a Mace replacement for some time now, and are quite excited about a new line we’ve been working on, called RAC2182.
OCTOBER 2015
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YIELD
But there may soon be a new kid on the block, with breeders at AGT “very excited” about a new Mace-based variety, which should be available to growers by 2016. “We’ve been chasing a Mace replacement for some time now, and are quite excited about a new line we’ve been working on, called RAC2182.” he said. “Agronomically it is very similar to Mace, only RAC2182 offers improved yield and some stripe rust resistance for farmers in South Australia and Victoria. “We are still waiting for final confirmation on the quality classification for RAC2182, but once that is finalised (around early September) we will be able to release the variety to growers. Quality data suggests that it should receive an AH classification.” For Victorian and South Australian farmers AGT will also be releasing a Yitpi style wheat, tested as RAC2069, which will interest growers in the traditional Yitpi growing areas, such as the Mallee. “RAC2069 has a photoperiod maturity trigger, meaning that the plant waits until the days get longer before it moves into its reproductive phase, which can help to avoid frost prone periods in early spring,” Dan said. “Yitpi and Estoc are about the only other varieties currently grown in SA and Victoria that rely on this style of maturity trigger, and we see RAC2069 as a higher yielding alternative with a strong disease resistance package.
Another line, which has come out of AGTs Wagga breeding program is Beckom, an AH variety that predominantly suits mid to high yield potential environments. “Named after the town in Southern NSW, this variety will be particularly useful in that region and in parts of Victoria as it has good acid soil tolerance,” he said. “We’re also currently trying it out on Lower Eyre Peninsula as many growers in that region are looking for a short straw variety for stubble management. “Our national system of pure seed growers, AGT Affiliates, are producing seed of all of these varieties this season, so growers will be able to access seed for planting in 2016.” For those farmers who are looking for well adapted, high performing long season or winter wheat to make the most of early sowing opportunities in the south, there may be a wait yet. “There’s a lot of research and breeding being done into better adapted varieties that we can sow earlier that what we have done traditionally,” Dan said. “We’re working on varieties to fill that gap because there’s a definite push to begin sowing earlier in the season, particularly when there is moisture available.” “We aren’t quite there yet, but I imagine we’ll have something in the next few years for growers to get their hands on.”
We’re working on varieties to fill that gap because there’s a definite push to begin sowing earlier in the season, particularly when there is moisture available.
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IN BRIEF
IN BRIEF/
GLENCORE GRAIN PAYMENT PAPERWORK ONLINE Growers who have sold grain to Glencore Grain can now access their payment paperwork online, including payment summaries and recipient created tax invoices.
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ndrew Wilsdon, Glencore Grain’s General Manager, Accumulation and Grower Services said this service allows growers to conveniently access their payment paperwork at any time. “When Glencore Grain makes a payment, the paperwork is available to access online from midnight the same day. This makes it easier for growers to reconcile their transactions, given that hardcopy paperwork can often take a week to receive in the post,” Andrew said. “This is particularly useful at the end of the financial year, as growers missing any of their payment records, can simply go to the Glencore Grain website, and login to download all of their paperwork.” How to access the paperwork To access payment paperwork,
OCTOBER 2015
growers can visit the Glencore Grain website, glencoregrain.com.au, click on Grower Login and follow the prompts. As a new user, growers will firstly need to create an account and customise their page, which will allow access to paperwork as well as pricing for chosen commodities from desired sites. For existing users of this service, paperwork is automatically available by logging in to the Grower Login on Glencore Grain’s website. Paperwork is available online for all transactions made since 1 July 2013. To utilise this service, growers must have sold grain to Glencore Grain in the last two seasons. For assistance when logging in, registering or customising a page, please contact Glencore Grain on 1300 453 626.
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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FARM PROFILE
ROBERTS FAMILY FARM PROFILE WORDS/ MEL KITSCHKE
PROPERTY LOCATION
The Roberts farm is made up of three properties. The home property is 14kms north of Cleve, their Heggaton property is 40kms north-east of Cleve, and their Darke Peak property is 45kms north-west of Cleve.
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FARM PROFILE
The Roberts family from left, Erin, Sharnee, Addison, Grant, Kale, Zali, Henry, Natalie, Steven.
SOIL TYPES
Soils vary significantly throughout the properties, ranging from sand to heavy ground and everything in between.
RAINFALL
Annual district average for Cleve is 400mm. Last three seasons: 2012 – 261mm; 2013 – 458mm; 2014 – 399mm.
TOTAL FARM AREA
3590ha owned, of which 3360 arable. An additional 800ha is leased/sharefarmed.
TOTAL CROPPING AREA ANNUALLY Wheat 50 per cent. Barley 17 per cent. Legumes (medic/vetch) 33 per cent.
LIVESTOCK
1100 Merino ewes, which are mated to White Suffolks for prime lamb production.
EMPLOYEES
Most of the farm work is taken care of by Steven, Grant, Natalie and Erin. Natalie’s father John helps at seeding and harvest along with other casuals as required. Natalie and Erin both drive the chaser bin at harvest and Natalie also drives the header. Apart from employing a few casual workers at seeding time, it is very much a family focused business.
MACHINERY
Tractors: CASE Steiger 9380, CASE MX285, John Deere 4650. Seeding Rig: Flexicoil ST820 44’ bar, Horwood Bagshaw 7000L Triple Bin Box, Liquid Cart. Spray Rig: Beverley Hydraboom 10,000L 36m Dual Line. Harvester: 2388 CASE, 2188 CASE with 36’ Macdon Fronts. Trucks: 1996 CHR Mack, 2002 CHR Mack with 36’ Steel Tipper & 33’ Aluminium Tipper.
COMMUNITY INVOLVEMENT
Steven, Natalie, Grant and Erin are all very heavily involved in their local community. Steven coaches and plays football, is a CFS volunteer and is Vice President of the Rudall Community Sports Club. Natalie plays netball and tennis, is on the local netball club and basketball association committee, a member of Cleve Area School Parents and Friends, and Governing Council Committees. She is also a Darke Peak SACWA Branch member. Grant plays football and cricket, is on the local football committee, and is a CFS volunteer. Erin plays netball, tennis and softball, is on the committee for the local netball club and softball association, Cleve District Children’s Centre, and Cleve Hospital Auxiliary. Erin is a casual registered nurse employed by Eastern Eyre Health and Aged Care.
OCTOBER 2015
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FARM PROFILE
When was the farming district settled? Cleve was settled by sheep graziers in 1853 and the town was proclaimed in 1879. Q What is the history of your farm? A The home property was purchased in 1982 by Steven and Grant’s parents Graham and Kathie Roberts who had owned the local butcher shop prior to purchasing the farm. The home property was expanded in 1992 with the purchase of a neighbouring property. The Roberts’ family purchased the property at Heggaton in 2001. The Darke Peak property belonged to Natalie’s grandfather, who bought it in 1945 and passed it on to his sons. The opportunity to purchase a portion of this property arose when Natalie’s parents John and Roslyn Schumann retired at the end of 2008. Natalie is very proud to be able to continue her grandfather’s legacy at Darke Peak, particularly as he overcame what most people consider to be a disability as the result of a childhood illness (tuberculosis) and was told would never be a farmer. He proved them wrong and farmed successfully and held great interest in the farm until the ripe age of 100. Q Education and training A Both Steven and Grant completed high school at Cleve Area School and completed their Certificate in Agriculture training at Sims Farm. Sims Farm was bequeathed to the SA Government by the late Gordon Sims in 1960 to be a training and research centre and is a great agricultural asset and learning facility for Q A
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the Eyre Peninsula and beyond. Steven and Grant also completed an on-farm training course following school. Last year Steven and Nat had an opportunity to upskill and expand their capabilities as they studied a Diploma in Agribusiness Management through Regional Skills Training. They found this course very valuable for their existing farming business. Grant and Erin intend to do the same course in the near future. Q How do you manage your cropping program? A We grow two consecutive cereals, either wheat on wheat or wheat, followed by barley, or either vetch or medic as pasture. Wheat is the mainstay of the property comprising 70 per cent of the cropping. The only variety we sow at the moment is Mace, which has been yielding really well for us across all our soil types. We realise having just one variety is a bit risky, so we are looking at reintroducing other varieties next year. We grow all Scope barley and we aim for malting. Q Are you no-till? A We have been no-till since 2003. In 2002 we were badly affected by wind erosion so the decision was made to change our practice from conventional farming to a no-till system. This has definitely helped the soil structure and we seem to be reaping the benefits. Q What is your fertiliser regime? A This year we have made a significant change to our fertiliser regime through the introduction of liquid fertiliser to improve plant nutrition. We applied 50 kg/ha 24:16 as granular
FARM PROFILE
at sowing to all cereals and to the vetch pasture, as well as a starter in-furrow liquid fertiliser containing P, N, Zn, Cu, Mn plus a fungicide tailor made for us by Brett Kersley from SprayGro. We have wanted to go into liquids for a long time and other local farmers have had good results with it. We have seen some really good signs in early emergence through to now. A majority of the cereals get 50100kg of urea post sowing. The medic is selfregenerating and doesn’t get the granular/ liquid blend, but we give it a dose of zinc with our grass free spray. Q How do you manage weed control? A Our main weed problems are ryegrass, wild oats, brome grass, and barley grass. We generally use Sakkura on the first wheat, and barley gets Intervix. We use Boxer Gold to control ryegrass on the second wheat crop and
use knockdown at seeding, grass free pastures. What is your normal fungicide and pesticide regime? A We include a fungicide in the liquid stream, and come back over the lot with fungicide and a copper spray at the second and third node. Red-legged earth mite and lucerne flea are our biggest issues. Q What is your overall strategy with chemical use? A We try to rotate chemical groups to combat resistance. We don’t skimp on rates – if you go in with low rates you’re just breeding resistance. The medic and vetch pasture has an important role in our rotation to avoid resistance. Q Do you use GPS autosteer technology? A We have been using GPS for a fair while. We use Trimble with the seeder and TopCon with the boomspray. We’re not using mapping at this stage. Q
We try to rotate chemical groups to combat resistance. We don’t skimp on rates – if you go in with low rates you’re just breeding resistance.
Erin, Grant, Natalie and Steven inspecting their crop
OCTOBER 2015
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FARM PROFILE
Do you belong to a farm management group? We are part of the Crossville Ag Bureau, which organises lots of really good speakers. We also learn a lot from talking to people at footy, at the pub or at Sunday BBQs. There’s a lot of blokes around our age who are really good farmers and are willing to share their knowledge and experiences. There’s a lot of information out there, the Internet is a huge help. Social media such as Twitter is also proving to be a valuable, and a powerful learning resource – #epag and #agchatoz are great hashtags to follow. Quite often there are interesting conversations with links to relevant agricultural articles and information. Q Do you use a farm management adviser? A We don’t have a farm management advisor as such, but we do work with a local agronomist at Cleve Rural Traders. We started working together early in our farming partnership and have a good working relationship, we bounce and feed ideas off of each other all the time. Q What is your harvesting routine? A We harvest our entire crop on our own, and deliver it into the bulk handling system at Mangalo, Rudall, Arno Bay or Darke Peak. We use a contractor to help with carting during harvest. We have a bagging machine and unloader as a back-up plan if we can’t move the grain quickly enough. Q How do you sell/market your crop? A We sell most of our grain for cash, and forward contract small parcels throughout the year. We generally lock in no more than one third of our estimated yield before harvest, but if things are going well closer to harvest we will lock in more. Any wheat price with a three at the start is awesome. We will often start pricing the year before and keep some grain in reserve at the end of harvest to defer sales until July. We keep our grain marketing simple. We stick to buyers that we have dealt with before and have a good reputation. We can’t be worrying about whether or not we will get paid for our grain. We don’t do swaps and futures but we may think about doing it at a later date. Q Who do you rely on for grain marketing advice? A We get Rural Directions’ daily prices SMS, daily emails and texts from a selection of grain buyers and Steven regularly checks the Chicago Board of Trade wheat futures. This allows us to monitor what the market is doing and helps us to make informed decisions. Q What are the three biggest challenges/risks to your farm business? A 1. Where we farm, the biggest risks are climatic. When there’s a drought or frost or Q A
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We don’t have a farm management advisor as such, but we do work with a local agronomist at Cleve Rural Traders. We started working together early in our farming partnership and have a good working relationship.
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FARM PROFILE
Henry, happy with the winter crop
hot north wind in September, there’s not much we can do. 2. A significant challenge is being a grower on the Eyre Peninsula. We don’t get the benefits of domestic market pricing. 3. Keeping up with technology. Q How do you try to manage these challenges/risks? A 1. All farmers are having to cope with drier conditions and no-till farming and improved chemicals are helping with this. We have done a lot of delving and clay spreading over the past ten years or so. We built a delver eight years ago and have done a lot of delving, even where we had spread clay. This really brought some patches of country to life helping us to gain maximum potential from less productive areas. However, some gutless sand is always going to be gutless sand. 2. Being reliant on the export market – we watch the markets closely throughout the year and aim to lock in market highs. We generally forward contract up to a one third of our predicted yield. 3. The latest technology can be expensive and a challenge. It is a matter of sorting through what is available and finding what will suit your farming machinery and operations. Q What technological developments do you foresee will improve your family farm? A Better mobile coverage is imperative. Our 16
mobile coverage varies greatly across the properties and there are numerous black spots. In today’s farming environment, where we are so reliant on mobile phones and internet, the black spots are extremely frustrating and inconvenient, especially when you get a flat tyre or have a breakdown out of range. There are also many great farm apps we could use to enhance our business and make us more time efficient, but poor connectivity out in the field renders them frustrating to use as information cannot be reliably uploaded. Any improvements in that area would be brilliant. We would also like to see better deals on data in regional areas. Q Do you have future expansion plans? A We would like to grow the farm over time. We have two families to support so we need to develop and plan strategies to set things up for the next generation. Land prices vary a great deal, but good land sells well. Land is sought mainly by locals. A few other people come in every now and then, but they don’t tend to stay. Q Would you shift to another district for cheaper land or if rainfall becomes a problem due to climate change? A We are set up here to stay for the long term, so we will just keep improving our farming methods to get the best out of the rainfall we have.
Tell us about your livestock enterprise We run 1100 Merino ewes. We buy around 300 1.5 year old Merino ewes each year, generally from the Cleve market, and sell them as 5.5 to 6 year old ewes. All of our ewes are mated with Uralba White Suffolk rams and usually sell them when they’re five months old, between 20 and 24 kg. We have two lambing times. At Darke Peak and Heggaton where we are able to grow good early feed, we lamb in the first and last week in March. On the home block, especially in the hills, the feed is pretty slow to take off, so we delay lambing to ensure the lambs don’t struggle. Q Do you think food production has a good future in Australia? A Yes we do, the world population is getting bigger and everyone has to eat! All food production farming has a positive future. Q Will you encourage your children to return to the farm? A We would all love our children to return to the farm, but farming is not the be-all and end-all. The opportunity will be here for them down the track if they want it, but that is completely up to each of them to decide. Q What is your retirement/succession plan? A We haven’t started making plans yet – our kids are a bit young for that to be an issue right now. Our focus is on building our farm assets at the moment. Q A
Spray more. Efficiently! The Sprayer
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IN BRIEF
IN BRIEF/
GLENCORE GRAIN SUPPORT FOR LOCAL COMMUNITIES Glencore Grain has donated almost $300,000 to local clubs in rural communities across Australia, since establishing its club donation program in 2010.
G
lencore Grain has donated almost $300,000 to more than 100 sporting and community clubs in Western Australia, South Australia, and Victoria in the last five years. Andrew Wilsdon, General Manager, Accumulation and Grower Services said Glencore Grain’s club donation program contributes 20 cents per tonne when growers sell their grain to the company. “Growers simply need to mention the community group or club registered as part of Glencore Grain’s donation program at the time of contracting and Glencore Grain will make the contribution,” Andrew said. “During the 2014/15 season alone, Glencore Grain donated $150,000 to groups and clubs that are part of the donation program. “Agriculture and the grains industry are such a big part of these communities and we’re proud of the donation program and what it has achieved. We benefit as well from the opportunity to buy the grain and it rewards the growers who support us,” Andrew said. One of the longest standing clubs involved in the program is Kimba Districts Football & Netball Club on the Eyre Peninsula in South Australia. 18
Over the past five years, Glencore Grain has donated more than $30,000 to the club. Peter Woolford, President of the Kimba Districts Football & Netball Club said how important the donations have been to the small club. “The extra sponsorship income makes a huge difference to our club. We’ve been able to put the money towards new light towers and lighting for our oval and new tables and chairs,” Peter said. “I would like to thank Glencore Grain for the great support they have given our club and community with the donation program and a big thankyou to the grain growers in our area who have kindly nominated our club to receive the donation.” Along with the substantial financial support Glencore Grain, the team also get involved and participate in events hosted by the local clubs. Glencore Grain’s WA Accumulation Manager and former AFL player, Rob Haddrill often visits clubs who are part of the program. “It really is a win-win for both rural communities and Glencore Grain and it is great to see the positive impact we have with the local communities who support us,” Rob said.
I would like to thank Glencore Grain for the great support they have given our club and community with the donation program and a big thankyou to the grain growers in our area who have kindly nominated our club to receive the donation.
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QUALITY MANAGEMENT
QUALITY MANAGEMENT/ WORDS/ MEL KITSCHKE
CHEMICAL CONTAMINATION COULD PUT MARKETS AT RISK Australian grain growers are being urged to step up measures to avoid contamination of their grain by two well-known chemicals.
T
he most recent National Residue Survey has revealed a concerning level of grain contamination by Flutriafoltreated fertilisers and broadacre chemical Haloxyfop. The APVMA (Australian Pesticides and Veterinary Medicines Authority) has also confirmed the duo pose the most significant contamination threat to Australia’s grain industry. “Despite these issues, Australian grain is 99.8 per cent compliant with Australian grain standards for chemical residues and contaminants,” National Residue Survey director Ian Reichstein said. “With good on-farm management, these residue issues can easily be avoided.” Nevertheless, the Flutriafol and Haloxyfop residue contamination threat is significant regardless of whether the grain was being exported or used domestically. “If a feed mill, flour mill or food processor is not aware of a Flutriafol-treated fertiliser contamination until after they have processed grain into flour or other products, this could become a very costly exercise in clean-up or loss of product,” he said. “Even worse, if a container of contaminated grain reaches an overseas market without an appropriate MRL, exports to that market could be disrupted or potentially close down.” Mr Reichstein said the NRS had provided a large
20
volume of residue monitoring data to the APVMA about Haloxyfop contamination. This had assisted in a Haloxyfop product label review to clarify correct use patterns and thus help to avoid future residue contamination. “New labels have been in place since August 2014 that make it very clear Haloxyfop cannot be used after the 8 leaf stage, or after the commencement of stem elongation if stem elongation occurs before emergence of the 8th leaf,” Mr Reichstein said. “The new labels also note that Haloxyfop cannot be applied after grazing.” Mr Reichstein said the use of Haloxyfop to spray canola windrows was not approved on previous and new labels. This use pattern had been found to contaminate an entire canola crop with high levels of Haloxyfop residues. The new labelling had been compulsory on all Haloxyfop products manufactured from August 2014 (including brand names Verdict, Asset, Recon 520). Mr Reichstein said fertiliser contamination of grain occurred most often where grain growers were back loading fertiliser with their grain deliveries. The issue was uncovered when unusually high levels of Flutriafol were detected in grain samples submitted to NRS. State agriculture departments, when conducting traceback
QUALITY MANAGEMENT
With good on-farm management, these residue issues can easily be avoided.
OCTOBER 2015
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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QUALITY MANAGEMENT
investigation, found that much of the fertiliser transported to farms was first treated with the fungicide Flutriafol. However, in addition to poor truck hygiene, fertiliser and Flutriafol contamination could also occur when augers and grain storage units were used for fertiliser and grain without adequate cleaning between handling both products. He said dedicated transport, handling and storage equipment for treated fertilizer was ideal but in most cases not economically viable. Where this was not achievable, equipment hygiene became extremely important when changing between grain and fertiliser (even non-treated fertiliser). Letting your mates down Eyre Peninsula’s Trevor Sinclair, who has had many years’ experience as a chartered loss adjuster said grain growers and truck drivers who were silly enough not to appropriately clean their trucks or equipment before carting or handling grain were “letting their mates down”. “Contamination can affect much more than their own business,” Mr Sinclair said. “If contaminated grain means a silo cell needs to be closed down, it will obviously greatly inconvenience other growers, who may then need to carry loads to more remote receival locations. “Additional time and cost is involved, often in busy harvest periods.” He said on the Eyre Peninsula, back-loading fertiliser following delivery of grain to Port Lincoln was a regular occurrence. “Using the same grain handling equipment for fertiliser, including storage is best avoided,” Mr Sinclair said. “Whilst there is obviously extra cost involved, dedicated grain and fertiliser storage / handling equipment is the answer to storage contamination.” Contaminated grain could leave farmers open to legal action, which generally attracted indemnity under a Public Liability insurance policy, if the issue arises as a result of negligence only. “Usually an excess, of greater value than the time cost of adequate cleaning is involved,” Mr Sinclair said.
22
DE-CONTAMINATION CHECKLIST GRAIN Producers SA Chief Executive Darren Arney provided the following advice to growers to avoid contamination of grain (by all contaminants including fertiliser, pickling compounds, rodent control baits). The main rule is that growers must clean their own harvesting and grain storage and handling equipment thoroughly, and ensure any contractors follow the same processes, including: • Pressure-wash field bins to remove any residual fertiliser, pickled grain and dye from all areas including the cone, walls and roof. • Clean-out headers with compressed air to remove any contaminants and when unloading, let the first bit of grain run out onto the ground (including contents of the bubble auger). • Dry-run augers and use a soft mallet on the length of the barrel to dislodge any fertiliser build-up, even those cleaned after seeding/spreading urea. • Grain to be retained on-farm should be first run up the auger. Growers may be surprised at how much urea can become lodged in augers. • Trucks must be pressure-washed to remove any traces of fertiliser or pickling compounds, including tarp rails and the underside of tarps.
QUALITY MANAGEMENT
OVERVIEW – NRS GRAINS PROGRAM The National Residue Survey (NRS) is a vital part of the Australian system for managing the risk of chemical residues and environmental contaminants in Australian food products. The NRS supports Australia’s food industry and primary producers by facilitating access to key export markets and confirming Australia’s status as a producer of clean food. NRS programs encourage good agricultural practices, help to identify potential problems and indicate where follow-up action is needed. Grain companies have reported that Asian markets in particular place a strong emphasis on the presence of the Department of Agriculture government logo and the National Residue Survey residue monitoring report accompanying the export consignment. The NRS was established by the Australian Government in the early 1960s following concerns about pesticide residues in exported meat. Since then, the NRS has expanded to test other animal, grain, horticulture and fish products for residues of pesticides and veterinary
medicines, as well as for other contaminants. The NRS became an industry-funded activity in 1992 and relevant legislation was established. The core work of the NRS is to facilitate the testing of animal and plant products for pesticide and veterinary medicine residues, and environmental contaminants. Product testing is done through either random or specifically designed sampling protocols. Other programs within the NRS, such as laboratory evaluation and business activities, support the core work of residue testing. The NRS Grains Program covers all tradable grains, used both in the domestic market and exported. The NRS program tests on average 4000 samples per annum from 21 bulk export terminals, and are increasing their container export samples, with 1800 done in 2014-15. In the domestic market, the NRS undertakes an average of 800 samples for residue monitoring per annum, at flourmills, stockfeed manufacturers, feedlots, food processing factories and oilseed crushers.
HALOXYFOP - CANOLA SAMPLES
> LOR < MRL
> MRL
COMPLIANCE ~
2008-09
50
16
2
96 %
2009-10
70
25
3
95.7 %
2010-11
64
36
5
92.2 %
2011-12
56
26
2
96.4 %
2012-13
83
43
8
90.3 %
2013-14
129
47
11
91.5 %
2014-15*
117
51
7
94 %
*YTD 10 June 2015. ~ Compliance with APVMA MRLs. Highest detection was 0.91 mg/kg
The NRS supports Australia’s food industry and primary producers by facilitating access to key export markets and confirming Australia’s status as a producer of clean food.
FLUTRIAFOL SAMPLES
> LOR < MRL
> MRL
COMPLIANCE ~
2008-09
4162
4
0
100 %
2009-10
4539
11
5
99.89 %
2010-11
5220
13
8
99.85 %
2011-12
5718
9
6
99.90 %
2012-13
5836
16
20
99.65 %
2013-14
5855
10
10
99.83 %
2014-15*
5637
10
13
99.83 %
* YTD 10 June 2015. ~ Compliance with APVMA MRLs. Highest detection was 0.14 mg/kg in wheat.
OCTOBER 2015
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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GLOBAL INSIGHT
GLOBAL INSIGHT/ WORDS/ MEL KITSCHKE
MONOLA DELIVERS HEALTHY BENEFITS Demand for monola, as a speciality canola variety with low saturated fat content, is continuing to grow in Australia and internationally.
A
ccording to Eleanor Lee from global seed company Nuseed Australia, monola is significantly healthier than other traditional frying oils. Monola contains just 7 per cent saturated fat, compared to imported palm which has 51 per cent saturated fat, tallow which has 48 per cent saturated fat and cottonseed which has 26 per cent saturated fat. Monola is also a healthier choice for frying oil than canola. While canola is also low in saturated fats (containing 9.1 per cent), monola has an additional benefit in that it remains stable in extended uses at high temperatures. “Nuseed’s monola carries the National Heart Foundation tick of approval and has become the frying oil of choice for a multitude of ‘quick-serve’ restaurants across Australia,” she said. For growers, the strong demand for healthy oil has also meant healthy premiums, as monola is sold on a closed loop system, giving growers the reassurance of secure marketing. Currently, growers are receiving a premium of $95/tonne for triazine-tolerant monola varieties with a local delivery point at Tarlee in South Australia, and according to Ms Lee, monola is very similar agronomically to canola. “Growers manage the crop the same way as other canola 24
varieties, with the same fertiliser program, weed, fungicide and pest control requirements during the season,” Ms Lee said. “In the paddock, monola varieties are competitive with other canola varieties when it comes to yield, oil content, maturity, height and blackleg resistance.” The blackleg resistance profile of monola varieties is strong, allowing for a break in the disease pressure of other canola varieties. Developed by Nuseed over the past decade, monola now has four varieties available to growers, with new varieties for release in 2016, being bred specifically for Australian conditions. “This season, growers have a choice of two triazine tolerant monola varieties from Nuseed, the early to mid-maturing monola 314TT or the new mid-maturing monola 515TT,” Ms Lee said. “Both offer the added advantage of triazine tolerance to combat wild radish in the canola phase of the cropping rotation.” Ben and Bess Marshman introduced monola to their cropping rotation at their Owen-based property in South Australia last season, and say it’s been producing excellent returns.
GLOBAL INSIGHT
HIGH VALUE HERBICIDE TOLERANT VARIETIES VARIETY
PREMIUM PER TONNE
MATURITY
TYPE
2014 BLACKLEG RATING*
HEIGHT
ALTERNATE TO
Monola® 314TT
$95
Early-Mid
Open-Pollinated
MR (N)
Medium
ATR Stingray, ATR Bonito, Pioneer® Sturt
Monola® 515TT NEW
$95
Mid
Open-Pollinated
MR (N)
Medium
ATR Gem, ATR Wahoo, 559TT
Monola® 513GT
$65
Early-Mid
Open-Pollinated
MR
Medium
Victory 5002RR
Monola® G11 NEW
$65
Mid
Hybrid
MR (N)
Medium
IH50, 404RR, 43Y23
Triazine Tolerant Monola®
Roundup Ready® Monola®
*(N) Blackleg ratings according to Nuseed replicated internal trials.
Ben Marshman in a Maonla crop
Ben said they have increased their monola rotation from 40ha last season to 170ha this season because it was producing a better gross margin than canola due to the price premium currently being paid for monola. “We’ve heard that a yield drop off around 10 per cent is quite common, but we didn’t see that last year, it was only 1 per cent different,” Ben said. “Canola was a well-entrenched part of our cropping rotation, having been grown on the property for 24 years, but if the price premium remains in place, much of this area would be switched to monola.” In south west Victoria where Ben has a small cropping property, the price premium had been reduced to a point where it was less attractive to grow. Last season, he grew the earlier season variety 314TT and this year he added a later flowering variety, 515TT to the mix. “We have sown 515TT and 314TT to evaluate which variety will be suited to our area – it may be both,” he said. Ben agrees that the management of monola is identical to canola, although it tends to flower earlier and for longer. Ben delivers his Manola to Viterra at Tarlee.
For growers, the strong demand for healthy oil has also meant healthy premiums, as monola is sold on a closed loop system, giving growers the reassurance of secure marketing.
Monola® is a registered trademark of Nuseed Pty Ltd. For more information, visit the Nuseed Australia website at nuseed.com.au OCTOBER 2015
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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SUPPLY CHAIN
SUPPLY CHAIN/ WORDS/ KATE FULLER
EXPORTERS SUPPORT LONG TERM PORT ACCESS AGREEMENTS The efficient allocation of export shipping capacity at Australian ports is critical to the competitiveness of Australian grain in international markets and Australia’s position as an origin of choice. This directly benefits growers by encouraging multiple exporters to participate in markets and compete to buy their grain.
E
xporters are increasingly seeking long term certainty of port capacity and flexibility to ensure they have the ability to meet the needs of their customers overseas. The port terminal operators have endeavoured to meet the needs of exporters through the introduction of long term agreements. The adoption of long term agreements will assist exporters to negotiate sales with their international customers within known periods. This will result in improving marketers’ confidence to buy grower tonnage based on secured shipping periods and associated fees. Long term agreements also support supply chain planning. A vital element in the supply chain is harvest shipping. This allows movement of grain through the system to remove bottlenecks occurring at grower delivery points during harvest, and means growers can continue delivering grain to their preferred sites. CBH in Western Australian and
26
GrainCorp along the East Coast are operating with long term agreements in place. This process has occurred place quickly and efficiently allowing exporters to focus their attention on grower accumulation and export activity out of these states. In March this year, Viterra submitted an application to the ACCC to vary the capacity allocation method in its port loading protocol by introducing long term agreements at its six South Australian ports. Tim Krause, General Manager, Viterra Operations, said the feedback from customers is they want the certainty of longer-term arrangements. “The opportunity for improved supply chain planning and the removal of the market distorting impacts of the auction system creates benefits that will be realised by South Australian growers, exporters and the service we are able to provide,” he said. “The potential benefits to terminal service providers and exporters coupled
with the opportunity for improved supply chain planning and the removal of the market distorting impacts of the auction system creates benefits that will be realised by South Australian grain growers.” The ACCC released a draft decision to not approve Viterra’s application in July. The ACCC acknowledged the broad support for long-term agreements amongst exporter stakeholders. “The ACCC has previously recognised the potential benefits of long term agreements to both port terminal service providers and exporters and that long term capacity arrangements may be appropriate in some cases. Potential benefits of long term agreements can include greater certainty for exporters in planning their long-term grain export programs and assisting the infrastructure owner with supply chain planning,” the ACCC stated on its website. In spite of the ACCC’s draft decision not to approve Viterra’s application to
SUPPLY CHAIN
The opportunity for improved supply chain planning and the removal of the market distorting impacts of the auction system creates benefits that will be realised by South Australian growers, exporters and the service we are able to provide.
Viterraâ&#x20AC;&#x2122;s Outer Harbor port terminal
OCTOBER 2015
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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SUPPLY CHAIN
THE BENEFITS TO GROWERS FROM LONG TERM AGREEMENTS • LTAs will lead to more selling opportunities for growers on a longer term basis, as marketers will have the confidence to buy grower tonnes several seasons in advance based on confirmed shipping capacity. • Exporters with LTAs will have confidence to invest in accumulation businesses and infrastructure, with potential for developing innovative contracting products and options for growers. • The added confidence of LTAs will provide greater competition to buy grain at the farm gate. • LTAs support greater investment in upcountry logistics networks to ensure the export task can be met. • Increase export shipping capacity in periods of peak shipping demand from December to June, before the northern hemisphere crops are harvested. • LTAs encourage harvest shipping which improves the operations of the supply chain during the harvest period, reducing bottlenecks for grower deliveries.
introduce long term agreements for the allocation of port capacity, there is still a strong call among exporters for a capacity allocation system that provides longer term certainty and flexibility. With his understanding of growing customer needs, Angus Wettenhall, Principal Broker at Allied Grain, believes that long term agreements provide more certainty for exporters looking to increase throughput during peak demand periods. “The capacity auction process in the last few years has highlighted the fact that demand for capacity is bigger than supply in the first half of the marketing year, for both Western Australia and South Australia,” he said. “CBH Group has increased its capacity on offer and is looking to release approximately 16.4 million tonnes in 2015-16, with a goal of 18 million tonnes by 2017-18. “This combined with CBH offering grain merchants long-term agreements for port capacity is changing the shape of the supply chain.” Similarly, Viterra has increased its capacity to 7.2 million tonnes for the 2015-16 season with plans to increase 28
capacity to 10 million tonnes over time. “The first sales of new crop grain were made over seven months ago from Australia – to be truly competitive grain merchants need better certainty of long term capacity than they currently have in South Australia,” Angus said. Tim Henry, Managing Director of Archer Daniels Midland (ADM) Australia and Vice President of the Australian Grain Export Association, is another advocate for long term agreements. “We’ve seen the effects of overregulation and strongly feel that less regulation is better,” he said. “The rejection of Viterra’s draft proposal for long-term agreements by the ACCC is a mistake, we need more flexibility within the industry about how we allocate capacity.” “So far deregulation has delivered exceptional benefits to the industry,” he said. “We have more customers buying Australian wheat, Australia has maintained its export markets, bulk container trade is growing, growers have a lot more marketing options, and there has been major investment in the supply chain, including new
ports and increased efficiencies in land based logistics.” During Tim’s presentation at this year’s Australian Grains Industry Conference he highlighted that in 2014 over half a billion dollars were tied up in auction premiums, adding unnecessary risk to what he sees as an already risky business. “This is a detrimentally inefficient use of capital, and because of this we don’t support the auction system at all – we are quite disappointed that we’re going to see another year of auctions in South Australia,” he said. “All evidence points to the fact that long term agreements and a first-infirst-served model is the way to go, with GrainCorp being an excellent example of this. “GrainCorp strongly pushed back on the auction system being implemented and stuck with a first-in-first-served model – this has been so smooth that they will now move to long term agreements in their third year,” Tim said. “Quite simply, long -term agreements will ensure that capacity lies in the hands of exporters who can efficiently find markets for grain.”
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JohnDeere.com.au
SUPPLY CHAIN
SUPPLY CHAIN/
AUSTRALIA’S PORT TERMINALS The Mandatory Port Access Code of Conduct for Grain Export Terminals commenced on 30 September 2014, replacing the individual access undertakings regime administered by the ACCC. The Code is responsible for regulating bulk wheat port terminal operators, to ensure all port terminal activity is transparent and that all exporters have fair access to Australia’s port terminals.
Under the Code, the ACCC can exempt a port terminal service provider from certain provisions within the Code, particularly in relation to a specific port terminal facility subject to a competition analysis. The Federal Minister for Agriculture may also exempt cooperatives that meet certain criteria within the Code. An exempt service provider need only comply with Part One and Part Two of the Code, which require port
terminal service providers to deal in good faith with exporters and to publish certain information to ensure transparency. Exempt service providers do not need to comply with the rest of the Code (Parts Three to Part Six), which require port terminal service providers to operate without discrimination, with specific dispute resolution processes, and under ACCC approval of capacity allocation systems.
MACKAY
GLADSTONE
BRISBANE GERALDTON
THEVENARD
KWINANA BUNBURY
ESPERANCE ALBANY
NEWCASTLE
WALLAROO PORT LINCOLN OUTER HARBOR SEMAPHORE PORT GILES PORT ADELAIDE INNER HARBOUR
PORTLAND
30
PORT KEMBLA
MELBOURNE GEELONG
SUPPLY CHAIN
PORT
OWNER/OPERATOR
CURRENT STATUS
Mackay
GrainCorp
Fully regulated
Gladstone
GrainCorp
Fully regulated
Brisbane
GrainCorp
Draft determination to exempt
Brisbane
Queensland Bulk Terminals
Draft determination to exempt
Newcastle
GrainCorp
Exempt
Newcastle
Newcastle Agri Terminal
Exempt
Newcastle
Qube Holdings Limited
Exempt
Port Kembla
GrainCorp
Draft determination to exempt
Port Kembla
Quattro (under construction)
Draft determination to exempt
Melbourne
Emerald
Exempt
Geelong
GrainCorp
Exempt
Portland
GrainCorp
Fully regulated
Inner Harbour
Viterra
Fully regulated
Port Adelaide (Berth 29)
Patricks/Cargill
Status unclear
Semaphore
JK International
Status unclear
Outer Harbor
Viterra
Fully regulated
Port Giles
Viterra
Fully regulated
Wallaroo
Viterra
Fully regulated
Port Lincoln
Viterra
Fully regulated
Thevenard
Viterra
Fully regulated
Esperance
CBH
Exempt
Albany
CBH
Exempt
Bunbury
WAPRES/Bunge
Draft determination to exempt
Kwinana
CBH
Exempt
Geraldton
CBH
Exempt
QUEENSLAND
NEW SOUTH WALES
VICTORIA
SOUTH AUSTRALIA
WESTERN AUSTRALIA
OCTOBER 2015
GLENCORE GRAIN | GRAIN BUSINESS MAGAZINE
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FARM SAFETY
FARM SAFETY/ PRACTICAL HANDBOOK FOR ALL AUSTRALIAN GRAIN GROWERS A practical handbook to assist Australian grain growers in continuing to produce the world’s best grain was released last month, providing helpful information about best practice farming and safety protocols.
T
he ‘GROWING AUSTRALIAN GRAIN: Safely managing risks with crop inputs and grain on farm’ handbook is available in hard copy and electronically, and is an easy-touse best practice farming guide, covering the entire grain production pipeline. Developed by Grain Producers Australia (GPA) in collaboration with grain grower organisations from around Australia, the Chairman of Grain Producers Australia, Andrew Weidemann said the intention of the handbook was to provide a resource that will reduce and manage risk. “We understand how important food safety and good farming practices are to our markets,” he said. “This handbook is all about helping grain growers and the industry manage risks to protect Australia’s reputation for quality and reliability.” The handbook captures all annual farming activities and actions, from prior to planting through to production, harvesting, storage and transport. It also traces all farm inputs, including chemicals, fertilisers, machinery, equipment and grain storage and includes information about weeds, pests, diseases, biosecurity issues and farm health and hygiene. Providing a step-by-step guide to growers and industry of the processes and protocols required to meet local and global obligations and commitments, the handbook integrates 30 industry and government codes of practice, regulations and legislation, and risk management criteria into a single, easy to use framework. Individual growers, and the grains sector as a whole, can use the handbook to review, adapt and improve their practices to ensure the integrity of the grain they produce. “While all grain enterprises are different and diverse, the practices and requirements listed in the handbook help merge these differences into a common set of principles,
32
GROWING N GRAIN AUSTRALIA with crop aging risks Safely man rm fa n o in ra g inputs and JULY 2015
goals and objectives that can be adapted to suit individual farms,” Mr Weidemann said. And while Australian growers already produce grain with reliable integrity and carefully managed farm inputs, Weidemann believes that with a tighter focus on mitigating risks, local grain growers can become more competitive on the global stage, through attention to detail and reliable record keeping systems. “Australian growers already work within a combination of regulatory standards and good management, to actively manage potential risks to grain integrity, staff and others,” he said. “Safety is an important issue for farming businesses. This guide gives growers the key steps for managing farm safety, and provides links to further information.” Growers already participating in formal quality assurance (QA) systems can be reassured that both Graincare and CBH Group On-Farm Quality Assurance programs have been involved in the production of the handbook and are incorporating the information from the guide into their programs. As buyers develop their own global assurance programs, this guide illustrates that any issues of concern relating to Australian grain are already being managed by the industry and its existing Australian regulations. The handbook, ‘GROWING AUSTRALIAN GRAIN: Safely managing risks with crop inputs and grain on farm’, is available as a booklet from grain grower associations around Australia or direct from GPA at grainsguide.grainproducers.com.au. For more information contact: Andrew Weidemann, Chair Grain Producers Australia 0428 504 544 weidpast@wimmera.com.au
FARM SAFETY
Top five practical steps for managing farm safety
Employers are responsible for providing a safe workplace so that employees, advisers and contractors are not harmed or injured at work. This includes complying with Work Health and Safety regulations for transport and storage of dangerous goods and hazardous chemicals, and ensuring machinery and equipment is appropriate for its use and maintained. The following five steps for managing farm safety are defined in the Handbook for meeting legislation:
1. CONSULT
Ensure staff, advisors and contractors are involved in (consulted about) Work Health and Safety hazards and record all meetings.
2. IDENTIFY HAZARDS
Develop a Work Health and Safety Plan to regularly identify hazards and establish a safety reporting procedure.
3. ASSESS AND CONTROL RISKS
Identify machinery and tasks that are a risk for workers, take action to eliminate these risks or develop procedures to control or manage risks that cannot be eliminated.
4. REVIEW
Review and revise risk control measures regularly and when potential new risks arise.
5. ADMINISTRATIVE CONTROLS
Make sure all staff and contractors are equipped to work safely by providing personal protective equipment, First Aid training and kits, fire extinguishers and emergency plans, and ensure all workers undertake a safety induction.
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INDUSTRY SPOTLIGHT
Benn Oliver, SA Accumulation Manager, meeting on farm with grower Josh Krieg.
INDUSTRY SPOTLIGHT/
ACCUMULATION TEAM PROVIDES SERVICE AND SECURITY Glencore Grain offers a highly professional national accumulation team who individually provide growers with competitive pricing and leading domestic and international marketing knowledge.
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G
lencore Grain has field officers located in Western Australia, South Australia, Victoria, New South Wales and Queensland with diverse skills in agronomy, trading, finance and marketing. Andrew Wilsdon, Glencore Grain’s General Manager, Accumulation and Grower Services said with a presence in every growing region of Australia, Glencore Grain continues to be a leading exporter and domestic supplier of agricultural commodities, including wheat, barley, oilseeds, pulses, sorghum, meals and cotton. “Most of our team come from a rural background and are long term employees of the company,” Andrew said. “Everyone has a wealth of agronomic and marketing experience in the agricultural industry and applies their skills to benefit our grower customers. “They have strong relationship with growers through their presence in the field, at meetings and regular attendance at industry functions. In addition, Glencore Grain’s financial strength ensures growers can
INDUSTRY SPOTLIGHT
Glencore Grain’s financial strength ensures growers can be assured of payment security. The company’s worldwide marketing and logistics network provides Glencore Grain with unrivalled access to markets which provides competitive prices for growers’ grain.
be assured of payment security. The company’s worldwide marketing and logistics network provides Glencore Grain with unrivalled access to markets which provides competitive prices for growers’ grain. The Western Australian region is looked after by Rob Haddrill, WA Accumulation Manager, along with Field Officers, Dwayne Allen, Tim Giumelli and Jordan McAllister. Rob, Dwayne, Tim and Jordan all came to Glencore Grain with prior experience on farming properties. In South Australia, the accumulation team is led by Benn Oliver, SA Accumulation Manager, along with Field Officers Tom Vater, Adam Crabb and Craig Williams. These Field Officers focus on the Yorke Peninsula and Northern Areas, Murraylands and South East and the Eyre Peninsula respectively. The SA team all have broad experience working across the grains industry. Glencore Grain’s Victorian Accumulation Manager, Julian Fry is based in Swan Hill and has worked in agribusiness for more than two
OCTOBER 2015
decades. Paul Christian, Field Officer based in the Dooen office has worked in Dooen for more than 12 years with the group. Queensland and northern New South Wales is headed up by Accumulation Manager, Nick Kelly, who brought experience in accumulation, bulk handling, marketing and logistics to the role. Nick’s team includes Field Officers Brendan Adler and Erin Barton based in Toowoomba and Narrabri respectively. Brendan has experience in agricultural agronomy and accumulation and Erin has more than 10 years local experience with cotton and grain. In southern New South Wales, Accumulations Manager, Greg Williams has many years background in logistics, trading and accumulation. “The accumulation team interacts with growers in numerous ways when buying grain, whether it is direct or via a broker or agent. Glencore Grain offers growers a range of marketing options including cash at major bulk handling sites, spot contracts ex warehouse and
forward contracts for current and future seasons. “We provide price risk management through forward contracting with multi-grade options, where growers can secure old season, current and future pricing,” said Andrew. With competitive 12 day end of week payment terms growers will have their money in the bank sooner. Alternatively, Glencore Grain can accommodate other payment options, such as deferred payment, to suit the grower’s needs. The company’s financial strength means growers can feel confident selling to Glencore Grain. Glencore Grain’s accumulation team has multiple ways of communicating with growers, whether it is via email, text message, the Glencore Grain app or on the website. Glencore Grain also has a strong Service Centre team backing up the accumulation team who are there to assist growers with their needs. Contact details for each individual are available on the Glencore Grain website, glencoregrain.com.au, or alternatively call 1300 453 626 to speak to your local team.
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INDUSTRY PROFILE
INDUSTRY SPOTLIGHT/ BROADENING THE BIOSECURITY INSPECTION BASE A nation-wide program of accrediting grains industry professionals as biosecurity inspectors has ensured the maintenance of Australiaâ&#x20AC;&#x2122;s reputation as a clean, green high quality producer.
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INDUSTRY PROFILE
T
he Authorised Officer program (formerly AQIS Authorised Officers) was developed in consultation with industry and launched in 2012, in a bid to offer greater flexibility to both small and large exporters by enabling industry to carry out its own phytosanitary inspections. The Department of Agriculture’s Peter Creaser says 80 per cent of the 1000 newly accredited Authorised Officers are sourced directly from the grains industry. “Those companies with their own authorised officers are now not as heavily dependent on the Department of Agriculture workforce,” Mr Creaser said. “It also means you can have an authorised officer locally based in smaller regional centres or even in the town where the export business is based. “This flexibility may make it more feasible to engage in the export market.” Mr Creaser said an authorised officer’s roles and responsibilities were critical in ensuring an exporter met legislative and importing country’s requirements. “Authorised Officers are trained to ensure grain is, as practically possible, free from pests, weeds and soil,” Mr Creaser said. “All exports have zero tolerance for known storage pests that will eat and damage grain. “Some countries also have nil tolerance for certain pests and weeds, and authorised officers are expected to be aware of this. When an importing country say nil tolerance they mean that.” Mr Creaser said Australia’s strict biosecurity requirements for goods coming into the country meant that it was in the fortunate position of being free of many pests and diseases prevalent in other countries. He said there is, however, an increasing awareness and understanding of pest risks in Australia’s trading partner countries, particularly the developing countries of South East Asia. “As Australia’s trading partners become more experienced in their own biosecurity they are applying stricter requirements for imported goods, so it is very important
that authorised officers know what those requirements are,” Mr Creaser said. Mr Creaser said the Authorised Officer program had a robust assurance framework that included training, initial assessment of competency and ongoing verification (audits) of authorised officers to ensure they continued to operate to a high standard and meet their legislative obligations. He said that while the Department of Agriculture understood there was an element of risk in industry conducting its own inspections the training and verification process provided adequate protection. “We understand in some cases the authorised officer may also have a management role in the business,” he said. “However, authorised officers have to sign a legally binding Deed of Obligations, which is a contract with the Commonwealth of Australia. It outlines the export service standards, the authority to act and the services they can perform. Failure to adhere to these requirements could result in civil or criminal penalties,” he said. “Every authorised officer is audited or verified at least once a year. The Department checks and tests that the authorised officer understands their roles, examines previous paperwork, and can demonstrate their competence undertaking inspections on-site.” Mr Creaser said the Authorised Officer program was initially funded by the Department of Agriculture but in the past 18 months has been funded by industry. “Grain is a massive trading commodity for Australia, not one that we want to risk with poor practices,” he said. “The grain industry is very aware of the importance of our phytosanitary inspection system and doesn’t want to have recalcitrant operators that don’t do the right thing by the broader industry. “One issue can potentially threaten the industry. Suspension of trade, especially in the peak part of season could have a huge impact across the supply chain from importers, exporters and right back to the farmer.”
One issue can potentially threaten the industry. Suspension of trade, especially in the peak part of season could have a huge impact across the supply chain from importers, exporters and right back to the farmer.
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