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Local, State and Local Rural News
June 9, 2022
Power prices pressure farmers
The state’s peak farming body has asked the NSW Government to invest in small scale on-farm renewables to ease cost pressures. The cost of electricity had nearly tripled in the past decade, according to Reg Kidd from the NSW Farmers Energy Transition Working Group, who said
regional and rural users already paid 25 per cent more than urban users. “This is a huge cost for country people, but it’s especially felt by those high energy users such as dairy farmers and intensive livestock producers,” Mr Kidd said. “Many farm businesses
certainty of energy supply by installing solar or other renewable generation, backed up by batteries, and while the costs of these are gradually reducing, they are still a major infrastructure investment to meet business rather than residential requirements. NSW Farmers is asking the state government for investment
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in farm businesses, including subsidies and low interest loans, to install renewable energy generation and storage.” For primary producers, Energy Sustainability Rebates have the potential to reduce reliance on fossil fuels and reduce carbon emissions, Mr Kidd said. With food being a major
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output of agricultural operation, all Australians had a stake in ensuring farms could transition to clean, affordable and reliable energy. “Without reliable energy supply the fresh product can quickly spoil and result in shortages,” Mr Kidd said. “By installing renewable energy systems primary
producers increase certainty across their business operations and contribute to economy-wide carbon emission reduction targets. Decision makers serious about these targets should support farmers investing in generation technology.”
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The NR Times Rural News
June 9, 2022
34 RURAL NEWS
Recent Cattle Market Reports GRAFTON
There were 322 head yarded at Grafton Fat Cattle Sale 31st May 2022. Quality and condition was generally better this week, most categories saw a fair representation. A better run of bullocks sold slightly dearer while cows sold fully
Sale Highlights include:
648.2c/kg averaged 255kg - $1,652.91 p/hd
A/c JM Matten sold Angus/Charolais Bullocks 387.2c/kg averaged 634.4kg - $2,456.30 p/hd
A/c D Newton sold Angus/Charolais Heifers 692.2c/ kg averaged 178.8kg - $1,237.31 p/hd
A/c Baryulgil Pastoral Co. sold Hereford/Brahman Cows 390.2c/kg averaged 645kg - $2,516.79 p/hd
usual buyer gallery. A/c T & L McGrath sold Charolais Cross Heifers
CASINO
Bull prices saw a drop this week with 20 head sold
NRLX Market Report Week Ending Friday 3 June Agents yarded a total of 2,107 head at the Northern Rivers Livestock Exchange regular prime sale on Wednesday 1 June. Weaners made up the majority of the numbers, with quality again fairly plain, although there was some well bred cattle throughout the sale. Cow prices were slightly back this week averaging 324c/kg and reaching a top price of 385c/kg. Lighter heifers up to 250kg were easier averaging 643c/ kg and topping their category at 812c/kg. Heavier heifers over 250kg saw an increase averaging 440c/ kg and reaching a top of 640c/kg.
to slightly dearer with lighter steers up to 250kg averaging 675c/kg and reaching a top price of 880c/ kg. Heavier steers over 250kg averaged 535c/kg and topped their market at 776c/kg. A large number of bullocks sold on the day averaged 408c/kg. Vealer prices were stronger this week with lighter vealer up to 250kg averaging 692c/kg and reaching a top of 860c/kg. Heavier vealer over 250kg averaged 581c/kg with a top price of 750c/kg. Ian Weir & Son held a store sale at the NRLX on Monday 30 May with 979 head going under the hammer. Steers topped their category at 840c/kg and
A/c D Newton sold Angus Steers 778.2c/kg averaged 201.7kg - $1,569.37 p/hd averaged 647c/kg and 217kg whilst heifers reached a top of 795c/kg and averaged 623c/kg and 198kg. Cows reached a top price of $1,876 whilst Cows & Calves topped their market at $3,400. T&W McCormack and Ramsey & Bulmer held a joint store sale at the NRLX on Friday 3 June with 2,146 head going under the hammer. Steers topped their category at 858c/kg and averaged 643c/kg and 255kg whilst heifers reached a top of 758c/kg and averaged 592c/kg and 217kg. Cows reached a top price of $2,520 whilst Cows & Calves topped their market at $3,200. Ray White Rural will hold a store sale at the NRLX this Friday 10 June. Further bookings are welcome.
Deadline an opportunity for industry partnership NSW Farmers is encouraging dairy farmers to work with processors to secure the best farmgate deal possible for their milk, with the deadline for processors to publish their supply contracts around the corner. June 1 marks the third time dairy processors have been required to publish their standard supply agreement
under the Dairy Code of Conduct, which was introduced in January 2020 to improve transparency between farmers and processors. NSW Farmers Dairy Chair Colin Thompson said dairy farmers were in a positive position, but more needed to be done to strengthen supply chain relationships. “After a prolonged period of drought and
low retail prices, dairy a change in tide,” Mr Thompson said. “Reduced supply is driving up the milk price across the state, which is positive for farmers, but we must prices are equitable along the supply chain. Sustainable relationships are important, and farmers should work
with processors to position their businesses for growth on the back of these prices.” Mr Thompson said the retail price of dairy products would likely need to be increased to promote sustainability in the dairy supply chain, particularly with skyrocketing input costs and climate challenges. “For too long, dairy farmers have faced
stagnant retail prices, and NSW is particularly exposed to this because of the high proportion of fresh milk produced here,” he said. “The unprecedented escalation of input costs and weather extremes is threatening the existence of many coastal farms and the future supply of fresh milk. Much of NSW has experienced a rolling natural disaster
with over three metres months.” Mr Thompson said
processors and farmers. “While we acknowledge everyone is feeling the cost-of-living squeeze at the moment, small increases at the checkout would go a long way for farmers.”
June 9, 2022
Locally owned and independent
The NR Times Rural News
RURAL 35
Locals helping to meat butcher demand TAFE NSW is helping to protect a trip to your local butcher in the Northern Rivers by training the next generation of butchers to meet the continuing high demand for meat combined with a retiring workforce. The Australian Meat Industry Council (AMIC) reported around a third of independent retail butchers need staff, and employment forecasts indicate the occupation will experience an 11.2 per cent growth by 2026. TAFE NSW student Nick Forzan is III in Meat Processing (Retail Butchery) and is employed at Smiths Butchery in Casino. “The course was hugely valuable, the TAFE NSW teachers had real industry experience to pass on as they had all worked in the meat sector themselves.”
“The TAFE NSW teachers gave me a big picture understanding of the future of the industry and it’s that kind of foundational knowledge you need to build a really successful career.” “Butchery is an essential service and it’s a critical need for society. As we saw in the pandemic, even when other industries are closed down, demand for butchers skyrocketed.” TAFE NSW Meat and Allied Trades Head Teacher Ben Barrow said as NSW’s leading provider of vocational education and training, TAFE NSW is uniquely positioned to arm apprentice butchers with the hands-on, practical skills they need to develop successful careers. “Consumers are changing the face of the meat industry with demands on ethically
farmed produce and an expectation of food provenance,” Mr Barrow said. “TAFE NSW provides apprentice butchers with a range of skills, from the art of breaking down carcass meat, cutting and trimming smaller techniques. “Our courses also prepare students with job-ready knowledge in providing service to customers on methods of cookery, and the nutritional role of meat.” The nationally III in Meat Processing (Retail Butchery) is a fully governmentsubsidised JobTrainer course for those that meet eligibility criteria. For more information about the range of butchery courses available at TAFE NSW, visit www.tafensw.edu. au or phone 131 601.
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14th June
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The NR Times Rural News
June 9, 2022
36 RURAL NEWS
For detailed
June 9, 2022
Locally owned and independent
The NR Times Rural News
RURAL 37
2022 cane crush in sight
The NSW Sugar industry may still be recovering 2022, but that will not stop the annual crushing season getting underway within weeks. The three sugar mills across the Northern action from the middle of June, with Harwood planning to commence on the 15th of the month. Condong is set down for a 20th of June start, followed by Broadwater in early August. Some cane harvested in the
Richmond area will be transferred to Harwood and Condong until the Broadwater mill is fully operational after severe dates are conditional on weather conditions and a few more weeks of the current sunshine would be helpful. The estimate for the overall crop is still uncertain following the is likely to be less than 1.5m tonnes. Although many growers are still
struggling with the wet conditions, the good news is that the cane price for the 2022 season is set to reach between $40 and $45 per tonne, depending on CCS (sugar content). Chairman and cane grower, Mr Jim Sneesby said: “The increased cane price will be very welcome as our growers not only recover their lost and damaged crops but do so in a time of increasing costs for inputs such as fertilizer and fuel.”
The start of crush comes as the raw sugar stocks that supply the almost fully exhausted and a strong sales program is in place with customer orders to be Sunshine Sugar’s CEO, Mr Chris Connors shared his thoughts on the current and future outlook for the business recently, stating; “There are plenty of challenges still ahead for both our growers and the sugar mills as we continue
to recover from the
to repair and restore
events of March, April and May across our
Without the commitment of our employees and the support of our contractors, we would not be in a position to announce the start of the new crush season with
plains of these three big rivers have been the lifeblood of sugar production in NSW for over 150 years. We will move on from the setbacks and continue to build on an already resilient and important local industry.” “I would like to take this opportunity to thank everyone involved in the ongoing work
we have.” Sunshine Sugar is the only 100% Australian grown, made and owned sugar with a familyfarming footprint that stretches from the Tweed to the Clarence and from the coast to Casino.
The NR Times Rural News
June 9, 2022
38 RURAL NEWS
Certainty for local timber processors TIM HOWARD and transport pallets,” Two of the Clarence Valley’s leading timber industry operators have backed a decision to offer the industry an automatic renewal of its timber supply agreements for another The CEO and manager director of Big River Timbers Jim Bindon and the general manage of J Notaras & Sons, Donna Layton, said the NSW Government’s offer to extend the exisiting wood supply agreements offered the industry NSW deputy Premier Paul Toole and the NSW Minister for Agriculture, Dugald Saunders, visited the Clarence last Friday, to make the For both operators, the key word in the offer was “certainty” after Mr Bindon said his company was in the middle of a $7 million upgrade and learning Big River Timbers would not need to renew supply arrangements next year, when they came due, “The certainty it offers to go ahead with the purchase of new machinery, which is part of a $7 million project to boost the quality of the
“Under the Regional Forest Agreements, NSW has committed to growing and re-growing timber in an environmentally responsible manner, to meet community demand Wood is sold under long-term agreements because processing requires specialised facilities, equipment
Member for Clarence Chris Gulaptis, the NSW Minister for Agriculture Dugald Saunders, Big River Timbers CEO Jim Bindon, and NSW Deputy Premier Paul Toole at Big River Timbers on June 3. products we make,” Mr He said Big River Timbers needed to maintain an edge in the quality of the timber building products it “The high-value architectural panels we make need to remain at the top end of the “The new equipment we’re purchasing will mean we can maintain the quality of our “We can’t compete on price at the low end of the market, it’s vital we keep adding value to Ms Leighton said Notaras & Sons welcome the certainty of supply
this agreement gives the company coming out of three of the toughest years the industry has
has aligned the expiry date for all timber supply contracts right across the
“We’ve been operating at about 70% capacity,”
the government’s support for the hardwood timber
to get back something close to our normal wood She said Notaras & Sons were ready to invest in new machinery “Knowing we can rely on supply and not have to worry about renewing the deal again next year means we can start to do some of things we’ve been wanting to do for the past couple of years,” Mr Toole said the
“Most agreements on the North Coast were due to end in 2023, while others run through to 2028, but now these critical timber mills have all been put on the same timeline to help provide investment and business “The timber industry plays a critical role on the North Coast and employs hundreds of locals, so extending the current agreements will help future-proof local processors, whether
they’re a small family business or a larger “This brings immediate relief to the local industry, which generates about $349 million each year, and is a timely manufacturing boost for the hardwood products Mr Saunders says timber is the ultimate renewable product, and it is critical for governments to nurture the industry so we can keep using it well into “Timber supports our towns, and the stock grown on the north coast goes towards essential materials that we use every day, including power poles, wharf piles,
existing agreements expire, market processes are undertaken to ensure the forests can provide the amount of supply is forecast over a 100-year period, but must be reviewed every Forestry Corporation carried out an additional review ahead of schedule, to take into account the impact of the
widespread, the good news is that many native species are resilient heavy rains have seen North Coast forests grow and recover well,” Mr “We’re lucky enough to have been able to maintain solid timber extended agreements and
Renewal of contracts spells ‘disaster’ for native forests the face of advice from the Natural Resources Commission, which assessed the public forests estate after the Black Summer Conservation Council Forests Campaigner
forests hard, ripping through more than 830,000 hectares of the native forest estate, more
“Despite the devastation and against the advice of the Natural Resources Commission, the NSW Government has insisted on cutting down native forests at the same rate as before “That has multiplied and concentrated the ecological harm dwindling native forest “Today’s decision is reckless and will push
forest species closer to “Forestry Corporation
The North East Forest Alliance considers the
of the resources sector ahead of our wildlife and forests and the interests of the vast majority of citizens who want these priceless assets
to Wood Supply Agreements for public native forests as an act of gross irresponsibility because of the massive loss of resources in
“Victoria and Western Australia have both announced they will end native forest logging to preserve the forests they
increased need to protect koalas, the need to restore hollow-bearing the urgency of protecting
forests as carbon sinks to
millions of trees and
“It beggars belief that the NSW Government has today gifted a guarantee of millions of dollars worth of sawlogs from public native forests to select sawmills
“According to the Forestry Corporation’s own guesstimates across the north coast over
as if nothing happened,” said NEFA spokesperson
>30 cm diameter) and
losses increasing to
“In the 2019/20 coast State Forests burnt causing the deaths of
sawlogs north from
June 9, 2022
Locally owned and independent
The NR Times Rural News
RURAL 39
Quality infrastructure the road to success Regional infrastructure has featured prominently in the latest State Infrastructure Strategy, paving the way for record success as the NSW agriculture sector looks to grow, according to the state’s peak agricultural group. NSW Farmers President James Jackson
said the vast potential of agriculture and regionaleconomies needed to be realised through strategic investment in road, rail and digital connectivity. “Agriculture and the regions are in a position where they could see the right investment
decisions are made, and this seems to have been recognised in Infrastructure NSW’s recommendations,” Mr Jackson said. “The COVID-19 pandemic has fasttracked a number of trends, including migration toward regional areas and
the shift to online service delivery, both of which need to be addressed through stronger investment in road, health and telecommunications infrastructure. “There’s also a need to harness the economic potential of betterconnected supply
chains and accessible domestic and export hubs, particularly off the back of record success for many agricultural commodities.” Mr Jackson said it was disappointing the strategy included recommendations to presspause on megaprojects including a
Great Western Highway tunnel, as well as several dams. “The Great Western Highway is the main conduit linking the Central West and Sydney, and its upgrade is heavily tied to harnessing the value-add opportunities in western Sydney,” he said.
Give poultry growers a fair go NSW Farmers will play a key role in developing a new code of conduct to deliver price transparency and fair contracts in the poultry meat market. NSW Farmers Poultry Committee Chair Peter Wojcicki said growers had been calling for a code of conduct, because processors and supermarkets continued to dominate the supply chain and in turn family farmers were missing out on the “fair go” Australia prided itself on. The lack of competition in the processor sector meant growers had limited bargaining power against the processors with many family farmers being forced from the industry. “The poultry meat processing space in Australia is alarmingly concentrated, with just two companies responsible for processing 70 per cent of the nation’s chicken,” Mr Wojcicki said. “Consumers might not be aware of the situation
They need to make huge infrastructure investments to raise birds they do not actually own, and the contracts offer little security.” Mr Wojcicki said. “We’ve heard stories from growers forced from the industry burdened with huge debt, and for those left growing, lack of choice means growers have little choice but to sign one-sided contracts.” “Sadly, this is an industry where there are geographic constraints and so few processors that farmers are at their mercy.” the potential for unfair contract terms in its 2020 inquiry into perishable agricultural goods, which was a watershed inquiry for agriculture and because of the number of brands on the market, but many of them are actually owned by the same company. “With so little
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competition in the processing space, these big companies are basically able to offer contracts on a take it or leave it basis.”
Mr Wojcicki said poultry meat growers needed stronger protections through a code of conduct to make the industry
more sustainable participants. “Australian poultry meat growers are highly exposed to risk.
of power imbalances in fresh food supply chains. Funding to develop the code of conduct was granted by the federal government.
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The NR Times Rural News
June 9, 2022
40 RURAL NEWS
Sonar used to locate underwater dangers An advanced sonar program has started surveying NSW rivers for hazardous submerged debris across the State following this year’s shoreline clean-up crews coming in behind to remove those debris once located. The NSW Environment Protection Authority (EPA)-led program removes dangerous obstacles to navigation and water safety – including giant tree trunks and water tanks – out of our rivers. EPA Director Arminda Ryan said the Sonar (submerged debris) Clean-up Program was uncovering submerged and dangerous debris washed into the Hawkesbury and other rivers during the recent “By using the latest technology available our aim is to make this recovery as thorough and Ryan said. The strength of the Sonar Program is its ability to reveal otherwise invisible hazards. Sonar Technology mounted on boats sends out sound waves and measures returning echoes to detect large items on the riverbed. Based on what has been found on shoreside clean-ups hazards are expected to include items as diverse as chemical drums, farming equipment, large tree
branches and even caravans. Ms Ryan said the Sonar Program was just one part of a combined NSW Government agency effort with the EPA working closely with Transport for NSW to secure and mark hazardous debris prior to removal. “Transport for NSW has provided the EPA with 11 priority locations for surveying in the Hawkesbury River. OceanWatch Australia have provided a further two priority locations. Transport for NSW will also provide priority locations for surveying on the North Coast,” Ms Ryan said “The program covers a broad area and will see a wide variety of man-made and natural hazardous debris removed from waterways extending from the Hawkesbury River to the Queensland border.” Ms Ryan said the shoreline clean-up had already removed more than 6800 cubic meters across NSW since the beginning of March, which is more than 340, 8-tonne tip trucks. “The communities in have been through very tough times in the past couple of years and the extension of these programs will support communities with their recovery from the
Free lunch for Richmond Valley farming women The Nationals in NSW Government want to talk safety with Richmond Valley women who are involved in agriculture and are inviting them to a “Lunch and Learn” event at the Casino RSM Club on Tuesday 12 July, Clarence Nationals MP Chris Gulaptis says. “Farming can be a
dangerous business and this initiative is about offering locals the latest information available on farm safety,” Mr Gulaptis said. “This particular campaign is targeting women because we know women are often the ones making business decisions, running the
farm, and managing family life throughout the day, playing a critical role in building a culture of safety,” The Lunch and Learn series is an opportunity to hold real discussions around the prevention of injury and death in the agricultural sector. Minister for Fair
Trading Eleni Petinos said the series will cover issues including working near electricity, emergency preparedness and response, safety around farm vehicles, and at-risk workers and contractors. “Tragically, farming accounts for one in every
That’s why these events are so important for the women at the centre of farming families – to provide essential safety resources and encourage safe farming practices,” Ms Petinos said. The interactive event will provide participants with the opportunity to speak with presenters
connected to the sector and network with like-minded women in agriculture. The event will run for two and a half hours from 11am with a light lunch to be provided. To attend the lunch, register on 13 10 50.
June 9, 2022
Locally owned and independent
The NR Times Rural News
RURAL 41
Hands-on support for Primary producers in
Primary producers
primary producers
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The NR Times Rural News
June 9, 2022
42 RURAL NEWS
Study to help shape egg industry’s future The sustainability framework community survey is embarking research, examining the relationship between the egg industry and the Australian community. All Australian residents aged 18 years or older are invited to participate. The community survey covers the impacts and contributions of the egg industry across areas such as the environment, animal welfare, food security, and livelihoods. Completing the survey provides an opportunity for the community to inform the Australian egg industry’s decision making. Alongside this open invitation for community members to have their say, views from a sample of around 5,000 Australians are collected. The 2022 community survey is now open. To participate in the research, go to https:// voconiq.com/eggs The 2022 sustainability framework community survey will once again explore attitudes of Australians toward the Australian egg industry. It contains a range of questions asking your opinions on a wide variety of topics related to the egg industry. The
results of this survey will again be used to support the implementation of a Sustainability Framework by Australian Eggs for the egg industry, and inform a national conversation about the egg industry in Australia. The Framework The Australian Egg Industry Sustainability Framework aims to generate more productive engagement with the Australian community and drive continuous improvement within the industry. Transparency is the cornerstone of building community trust and acceptance as people want access to accurate information to know how their food is produced or products manufactured. Community expectations are constantly evolving and this extends beyond mainstream consumer purchasing decisions to much broader questions about how industries conduct themselves. In response to this dynamic, Australian Eggs invited CSIRO to design a comprehensive research program that has been in motion for over three years. The research is intended
broad range of topics, including food security, biosecurity, traceability, animal welfare and environmental impacts.
to provide the egg industry with a better understanding of community attitudes, and communities with a better understanding of the egg industry. The roles The process is being driven by Australian Eggs and the initial research program was conducted independently by the CSIRO. The research has now been continued by VoconIQ. Once each research cycle is complete, the research is then given to the egg industry to help guide the Sustainability Framework Report.
Community The community is the Australian public. The process explores community views on egg industry issues through a statistically representative sample of over 5,000 people as well as an ‘open call’ to participate for anyone that is interested. VoconIQ The research is being conducted by engagement science company Voconiq, spun out of Australia’s national science agency, CSIRO in 2019, and will explore community attitudes towards the egg industry across a
Australian Eggs Australian Eggs is the research and development corporation for the egg industry and it will support VoconIQ by providing information about the industry and making the research outputs publicly available. After community research is completed, Australian Eggs will engage with industry stakeholders to ensure the Sustainability Framework Report has their input. Egg Industry The egg industry includes egg farming businesses and other businesses along the supply chain such as veterinarians, feed companies and representative bodies. Australian Eggs commits to transparent reporting so interested parties can understand why and how the egg industry is responding to the research. The research In 2020, the CSIRO research team built
the Australian Egg Industry Research Report released in 2018 and 2019 to obtain a deeper understanding of community attitudes to the egg industry. The research was conducted using a survey of Australians through a statistically representative sample of over 5,000 people as well as an ‘open call’ to participate for anyone that is interested. The goal is to examine industry issues, both positive and negative, from multiple angles to understand the values driving community attitudes. In 2020, the CSIRO extended the research process in two important ways: and repeated key measures from the 2018 and 2019 surveys that were found to be central in the Australian egg Industry, to allow comparison over time • The survey included new aspects to better understand community attitudes on the priority the research program, as well as current and emerging issues, such as
The NR Times Rural News
June 9, 2022
Locally owned and independent
RURAL 43
Peak sugarcane organisation more market doors for Queensland sugar by achieving advanced Smartcane BMP and a global sustainability
focus on building the is delivered to the mill for environmental
modules that cover
recognise sugarcane
from the farm to the end user. Smartcane BMP is a farmfocused continuous
its Farm Module level. “Sugar buyers, commodity marketers and food manufacturers are under increasing consumers to source
said. to inviting Australian
benchmarking and alignment exercises, the VIVE Sustainable
accredited through the Queensland industry’s Smartcane BMP
the end-users in the
demonstrating the sustainability of Queensland sugar to
the VIVE Programme,
activities of sugar sugarcane farms to
Vietnam, Malaysia, and Indonesia.
Queensland sugarcane industry. Managed by far accredited almost 40% of the sugarcane area in Queensland. “This alignment
buyers in these markets. “In this instance, Smartcane BMP has
for CANEGROWERS Region, says one of
sugarcane farming in Australia. To build on Smartcane BMP’s
in the making and CEO Dan Galligan said. “This collaboration
The NSW Government has today announced a boost for recreational
for the Queensland sugarcane industry,” Mr Galligan said. “It
receive funding from the Recreational Fishing Trusts. Minister for Agriculture and Western NSW Dugald Saunders
economic activity into the state economy every year,” Mr Saunders said. “This grants
Senior Trader at
research and education across NSW, and I look
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right across the state in the coming months. “The NSW Government is
clubs and organisations, universities, councils,
economy and contributes
individuals.”
beautiful coastline, it June 2022 Funding guidelines and
educational marine industry into the future,
generates.” From Ballina to Bega, the Recreational
Mr Saunders also said the NSW Government from the Recreational Fishing Trusts for
for years to come,” Mr Saunders said. for funding from the Recreational Fishing
can also be discussed by contacting DPI Fisheries at recreational. gov.au.
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The NR Times Rural News
June 9, 2022
44 RURAL NEWS
Australia is laying the groundwork for a third consecutive bumper harvest, with this year’s total planted crop area forecast to reach a record 23.83 million hectares, Rabobank says in its just-released 2022/23 Winter Crop Outlook. This would be nearly one per cent up on last year’s record planting and 11 per cent above includes a 1.4 per cent lift in wheat and a record canola planting, up 20.9 per cent on last year, albeit at the expense of barley, oats and pulses. The specialist agribusiness bank says – in a year of global shortages and high commodity prices – the forecast record planting comes as global markets look to Australia to deliver a “hat trick of great grain and oilseed production” at a time when poor production and export constraints in a number of countries are prompting the United Nations to warn that the world is on the brink of a food crisis. Locally, the bank says, “hopes are on” another large winter crop to allow Australian farmers to secure good margins in the face of high costs for inputs including fertiliser, fuel, freight and agrochemicals. Across the states, the report says, winter plantings are forecast to be up on last year by 10 per cent in Victoria and eight per cent in
wheat continuing to be the price-setter across the region on a landed-cost basis, due to both a more favourable freight charge than other origins
‘Hoping
for a
hat trick’
Forecast record Australian winter crop planting sees potential for third consecutive bumper harvest Queensland. While New South Wales, South Australia and Western Australia are expected to see small contractions in planted area – of two per cent, one per cent and one per cent respectively. Production Combined with the favourable seasonal outlook for the year ahead, Rabobank says, the forecast record national winter crop planting – currently underway across the country – should see Australia on track to deliver another aboveaverage grain harvest for this season. Report co-author, RaboResearch
agricultural analyst Dennis Voznesenski said while the outlook is for another bumper harvest, it was too early in the season to tell if the record planting would deliver another record in production this year. “At this point in time, until the crop is more progressed and we can see if there are any surprises in store, we have been conservative in our production particular we’re mindful of the slow planting progress in NSW and the corresponding decline in yield potential with late planting, as well as overly-wet growing conditions,” he said. Based on current
plantings and slightly above-average yield expectations, the bank estimates Australia will be on track to deliver total wheat production of 32.5 million tonnes (down 10 per cent on last year), barley of 11 million tonnes (down 18 per cent) and canola of 5.8 million tonnes (down nine per cent). Export program outlook This would see Australia with “well above-average export potential again in 2022/23”, the outlook says. Report co-author, RaboResearch senior commodities analyst Cheryl Kalisch Gordon said a prospective third
consecutive bumper harvest would mean Australia would be “well placed to help support global wheat needs in 2022/23”. “Excess carryover from 2021/22, together with another above-average harvest and strong global demand, means we expect Australia could export around 26 million tonnes of wheat again in 2022/23, almost 50 per cent above the 10-year average and more than 50 per cent above the said. Australia is again expected to be able to deliver a “strong export performance into South-East Asia”, she said, with “Australian
origination cost due to abundant local supplies.” Rabobank says Australia is also forecast to deliver an impressive barley and canola export program in 2022/23, albeit down on last year. The bank currently sees barley exports of 7.5 million tonnes (down 16 per cent on the previous year) and canola exports at 4.5 million tonnes (down six per cent). Dr Kalisch Gordon said increased canola planting in Australia this season was at the expense of barley and pulses, with Chinese anti-dumping tariffs that were still in place on Australian barley and lower prices earlier in the year the primary reasons for less barley hectares being planted. For pulses, lacklustre pricing and high stocks still on farm are driving lower chickpea plantings this year. For chickpeas and niche grain and pulses, the report says, ongoing issues with the availability, reliability and cost of container freight – which have been further adversely impacted by China’s ongoing Covid lockdowns – are expected to continue to challenge boxed freight and constrain exports.
June 9, 2022
Locally owned and independent
The NR Times Rural News
RURAL 45
Global markets Global stocks of grains and oilseeds are set to remain low and move lower in the coming year, Rabobank says, supporting elevated global prices through 2022/23. “2022/23 may be the years in which global consumption of grain declines on the previous year – due to the high prices and limited supply,” Mr Voznesenski said. “But even a decline in consumption won’t stop global stocks of wheat and most coarse grains from falling to their lowest levels since 2015/16.” Even without the pressure being put on grain markets by the Russia/Ukraine war, which is impacting production and exports out of the Black Sea region, markets would be tight, he said. “Global stocks remain average outside of the Black Sea, meaning prices will remain above average even if Voznesenski said. Price outlook The bank expects global wheat prices to continue trading near current levels with Chicago Board of Trade (CBOT) wheat to trade around USc 1100 per half of 2023. But it expects prices to be
have peaked, but are expected to remain elevated due to the high cost of production and freight, as well as the sanctions on Russia and Belarus, according to the Rabobank outlook. Mr Voznesenski said after peaking in midMarch, a decline seen in global urea prices was
extremely volatile in this higher range, as markets react to news of changes in crop prospects and what can ultimately be exported from Ukraine, Russia and India. Strong demand for feed barley as a substitute for high-priced wheat and corn feed should keep global barley consumption near or above last year’s levels and be supportive of global prices, Rabobank says. For canola – which sits in the broader edible oil market – prices are also expected to remain strong. This is given the tight global supply of edible oils, elevated fuel prices and good crush margins. Some softening of canola prices, although not substantial, is likely to occur when the northern hemisphere new crop comes on board in Q3 2022, according to the
report. Local prices for wheat, barley and canola are expected to remain historically strong, Rabobank says, albeit continuing to trade at a discount to global levels. This is due to a number of factors, Dr Kalisch Gordon said, but primarily because of the large amount of local supply following two consecutive years of record or near-record production, with a third one “on the cards”. “Australia has a very large exportable surplus with, in particular, a large volume of unsold wheat, especially on the east coast. And this will continue to weigh on local prices unless currently favourable seasonal conditions ‘turn south’,” she said. For wheat, Dr Kalisch Gordon said, the bank expects basis (the difference between local
and global prices) to remain negative over the balance of 2022 and into 2023 – driven by the substantial carryover from last year along with the expected large 2022/23 Australian crop, high freight costs and a discount as a result of a high-risk environment to hold grain for bulk handlers. Domestically, the bank expects Australian premium white (APW) wheat track prices to trade at an average above AUD400 a tonne over the balance of the year. Local feed barley prices are forecast to trade between AUD 415 and AUD 354 a tonne over the next 12 months, while local canola prices are forecast to range from AUD 938 to AUD 805 a tonne over the course of 2022/23. Dr Kalisch Gordon said if Australia has another record harvest, “we
could see a situation of full bulk handler sites, full on-farm storage and large volumes of grain in silo bags on farm awaiting shipping slots. weigh on prices, especially if conditions are very wet and farmers need to move grain off farm”. An on-the-ground survey by the bank showed that nationally, farmers have increased permanent on-farm storage by more than 23 per cent since 2020 and are expected to expand this by another 15 to 20 per cent over the next 12 months, which could help alleviate some of the pressure on prices at harvest from a predicted third consecutive large crop. Crop inputs When it comes to farm inputs, prices for most are believed to
local Australian markets in late July/early August, though prices would remain volatile. “Prices for potash are believed to have peaked and local potash prices should be helped by an expected rise in the Australian dollar by the end of the year, though marginally,” he said. “Phosphate prices may also have peaked, though will remain above average in 2022, depending on China’s return to the export market.” Mr Voznesenski said the bank’s survey had indicated many farmers were already well prepared when it comes to farm inputs, with a large amount of their needs already on farm. This was shown to be particularly the case in Western Australia, where farmers reported they had almost 80 per cent of their fertiliser and ag chemical requirements already on farm and in South Australia, where farmers already had close to 80 per cent of their fertiliser needs and 70 per cent of ag chemicals.
The NR Times Rural News
June 9, 2022
46 RURAL NEWS
Impacts of China’s Covid lockdowns on Aust agriculture dairy products in China produced from imported Oceania whole milk powder (WMP) are more expensive than
Current strict lockdowns in many major cities in China – as the country tries to eradicate the spread of COVID – are not only affecting its local citizens, but
produced dairy for the he said.
impacts on trading partners, including Australia, according to agribusiness banking specialist Rabobank. Speaking in a podcast, What’s the Impact of China’s Lockdown Wave?, RaboResearch general manager for Australia and New Zealand Stefan Vogel said, in particular, there are the lockdowns that are set to have increasing Australian agribusiness – disruptions to freight logistics, Chinese corn plantings, dairy demand and hog pricing. Freight logistics global container logistics situation is becoming more complicated due to massive delays around the Shanghai port,” Mr Vogel said. “The dry container index, which tracks average prices paid for the transport of dry bulk materials
across more than 20 international routes, through 2021 as a result of COVID lockdowns in different parts of the world. While the index has since declined and is down 16 per cent since early March and 25 per cent down from the September 2021 highs, it looks likely that the ongoing COVID lockdowns in China will add to continued container logistics issues and keep container freight well above historic levels for 2022 and also likely to remain elevated well into 2023.” Corn plantings Mr Vogel said disruptions to corn plantings in China – the
corn producer and also the world’s primary corn importer – were also raising more concerns in an already grains markets. “Chinese corn planting faces delays in two key provinces as some farmers are stuck in major cities and are unable to access their lockdowns,” he said “We understand the lockdowns have created delays in planting this important feed crop in some parts of Jilin and Liaoning provinces, and these two provinces account combined for 20 per cent of China’s corn acreage. “The delay in planting increases the risk of frost damage later in the season, but at this point
it is too early to say what the impact will be on yields. It will depend on the weather through the season.” Mr Vogel acknowledged though that the delays in planting Chinese corn –and China’s feed grain import needs more generally – were not the biggest driver of current global grain prices. Rather, world Chicago Board of Trade (CBOT) corn prices had hit a this year and remain above USD 8/bu, driven primarily by concerns about the early arrival of the dry season in Brazil rainfall forecast for the next three months which could reduce Brazilian corn yields. In addition, cool and
wet conditions for corn planting in the US and an expected reduction of well over 50 per cent in Ukrainian corn production (as well as export uncertainty from Ukraine) in 2022 were also putting upward pressure on global grain prices, he said. Dairy demand The spread of the Omicron variant and China’s “dynamic were also bringing strong headwinds to consumption in the country’s food service sector, Mr Vogel said. And this was playing out in reduced dairy demand. “Dairy demand in food service is slowing in China while, according to our calculations,
breaking 2021 in milk powder imports by China, the demand uncertainty from COVID restrictions is likely to dampen the ‘dragon’s’ import appetite going forward.” Mr Vogel said Oceania’s record dairy prices may also make Australian (and New Zealand) exports to be competitive into China. Hog pricing collapse In addition, China’s COVID restrictions had resulted in a big drop in food service sales of meat products, as well as supply chain disruptions, which had impacted hog production and prices, Mr Vogel said. “Chinese hog producers have liquidated herds to avoid further losses, imposing further downward pressure on Chinese pork prices which can also impact China’s feed grain import needs,” he said.
June 9, 2022
Locally owned and independent
The NR Times Rural News
RURAL 47
Launch of latest beef industry report card
The performance of the beef industry against key markers of sustainability and the leadership role Australia is playing in the global discussion surrounding sustainable agriculture will come into focus at the launch of the Australian Beef Sustainability Framework (ABSF) Annual Update in Sydney on Thursday, 16 June 2022. The Annual Update serves as a yearly score card for industry by reporting against key indicators spanning environmental stewardship, animal care and wellbeing, economic resilience, and people
and the community. This year will mark the
$500,000 worth of grants and loans are on offer for Aboriginal communities to build upon or create new initiatives that will
people, businesses and community groups to maintain and protect
related cultural and commercial activities. Minister for Agriculture and Western NSW Dugald Saunders said the NSW Government’s Aboriginal Fishing Trust Fund is designed to encourage Aboriginal
of its type since the launch of the ABSF in 2017 to identify success, opportunity and areas for improvement in the sustainable production of beef. Red Meat Advisory Council (Chair), John McKillop, said this year’s launch would highlight Australia’s growing role in leading the world in sustainable livestock production through innovation, investment in people and communities, and self-determined targets to improve performance. “The Australian beef
provide economic opportunities for Aboriginal communities. “In just four years, the Trust has provided more than $1 million to assist Aboriginal communities across NSW to achieve meaningful outcomes, and I look forward to seeing what new
industry is proving itself as a global leader in investing in research, innovation and best practice management to support evolving sustainability objectives,” Mr McKillop said. “The ABSF has become a powerful tool to measure our performance and understanding of where we can do better – and transparently communicating that to our customers and consumers. “Our commitment to sustainability has also been clearly demonstrated to the world through our industry-owned Carbon
initiatives are put forward in this current funding round,” Mr Saunders said. “Eligible projects range workshops, research, tourism operations, habitat restoration and stocking of culturallythrough to business training, commercial aquaculture ventures,
Neutral by 2030 target which is helping to propel the livestock sector –including beef, lamb and goat – towards no net release of greenhouse gas emissions into the atmosphere within the next eight years. “However, we also know true sustainability is multi-faceted and so the ABSF includes important economic, animal and social measures within the suite of indicators we use to monitor progress and set priorities.” This year’s launch will include two important discussions exploring
activities.” Minister for Aboriginal Affairs Ben Franklin said Aboriginal Fishing Trust Fund projects Aboriginal cultural tourism and education programs that promote and protect cultural “The NSW Government has awarded
research and innovation being undertaken in Australia and what striving for improved sustainability means in a commercial context. “This includes a panel comprising grassroots producers, lot feeders, processors and live exporters on what sustainability means in practical terms for beef businesses, as well as an innovation-based panel showcasing some of the exceptional and occurring right here in Australia,” Mr McKillop said. Renowned chef Glenn Flood will also prepare lunch for launch
more than $300,000 in funding to Aboriginal communities under the Aboriginal Fishing Trust Fund,” Mr Franklin said. “The already-approved projects cover coastal regions and encompass projects that support cultural tourism, education programs, habitat restoration and workshops that promote and support cultural
attendees with beef sourced from Northern River Meats. Producer of the beef, Joe Leven, will be at the launch to speak about the food being served and the steps Northern River Meats takes to prioritise sustainability. “This will be a great opportunity for us to showcase sustainability in action by experiencing just how healthy, nutritious and tasty sustainably produced beef is, and the clear market opportunities across the globe that exist for our premium Australian product.”
Applications for the 2021-22 Aboriginal Fishing Trust Fund grants close at 5pm on 29 June 2022. For more information on eligibility and how to apply for the grants program, please visit the NSW Department of Primary Industries website www.dpi.nsw. gov.au/AFTF.
The NR Times Rural News
June 9, 2022
48 RURAL NEWS
New chair to lead dairy action plan Dairy industry champion Robert Cooper has been appointed Chair of a panel to lead the implementation of the NSW Dairy Industry Action Plan (DIAP), setting the foundations for future growth of the industry. Minister for Agriculture and Western NSW Dugald Saunders said the Chair will play an integral role in the NSW Government’s ongoing commitment to supporting the dairy industry. “The NSW dairy industry has been by the challenges of drought through to between, but continues to show incredible resilience in the face of such disruption,” Mr Saunders said. leader within the dairy sector is appointed to this role, to continue the
across four themes: • Research, Development and Extension– to boost productivity and in research tailored to NSW producers and needs renew producer
hard work industry has put in to make this plan meaningful for industry growth and renewal. “Robert is incredibly well regarded in the industry, serving as a voice for dairy farmers on a number of industry boards, panels and committees, including the NSW Dairy Industry Advisory Panel where he worked with the former NSW Fresh Milk
and Dairy advocate to develop the NSW DIAP. “His wealth of experience will be critical in driving growth in our State’s $647 million-strong dairy industry.” As Chair of the NSW DIAP, Robert Cooper will establish an Implementation Panel, which will be a blended membership of delivery organisations and
industry stakeholders, supported by Deputy Chair Phil Ryan. “I am honoured to be appointed to the role and look forward to working on behalf of the state’s dairy farmers,” Mr Cooper said. “My goal is to see action on the recommendations of the NSW DIAP and work collaboratively to drive results for the
whole dairy industry, especially at the farm level.” The Panel will work with industry groups and government agencies to drive delivery of the actions outlined in the plan, while monitoring and reporting on implementation over the next two years. The Action Plan includes 28 actions
community trust and support • Skills & Business Resilience – to build farmer, employee and service provider skills, focusing on business planning and operation, and risk management • Stronger Futures – to support tomorrow’s farmers by taking a targeted approach to critical infrastructure and addressing regulatory constraints or uncertainties The NSW Dairy Industry Action Plan and the Government response can be found online at www.dpi.nsw. gov.au/diap.
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