ountry News Co
Water Talk Reaching Australia ’s richest agricultural region
E 12-PAUG RE FEAAprTil 2015
No going back — page 3
Allocations unchanged
Latest upgrade program opens
— page 4
— page 6
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PAGE 2—‘Water Talk’, April, 2015
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Basin towns need surety ndustry groups and Ihave community representatives been asking about the
progress of the bipartisan 1500 Gl Commonwealth water buy-back cap discussions and progress of the proposed legislation. Bob Baldwin, Parliamentary Secretary to the Environment Minister, confirmed it is in train but didn’t really answer the question when he told Federal Parliament last week the government would spend $2 million a day on infrastructure across the basin to implement the $19 billion Murray-Darling Basin Plan. This is an edited version of his speech: I have travelled the length of the Murray, I have visited parts of the Goulburn and Murrumbidgee Rivers, and I have travelled to Menindee Lakes to see the dire situation with their water shortage, with water now only remaining in Copi Hollow. I look forward to continuing my travels down the Darling with the Members for Parkes and Maranoa after Easter. No matter where I go, it is clear to me there are two key issues facing communities in the basin. The first is the policy fatigue that has set in after more than 20 years of water reform and secondly the sense of urgency for certainty regarding the implementation of the Basin Plan. The communities of the Murray-Darling Basin understand the need for the reforms that have gone ahead, but they — rightly — want assurances that the
implementation of these water reforms will achieve a win-winwin that delivers good outcomes for the environment and a good outcome for the farmers and irrigators, as well as the communities and businesses in the basin. I want to make it abundantly clear that the Coalition Government is committed to delivering the Basin Plan, in full and on time.
Outcomes
However, we recognise the concerns and challenges that the plan creates for some communities and we must, and we will, find a way to deliver the best possible outcome for basin communities and the environment. We are listening to environmentalists, to townspeople, to farmers, to irrigators, to businesses, tourism operators, to industry and to fishermen alike. This is why we are now moving to legislate the 1500 Gl cap on water buy-backs in the basin, to place a ceiling on the amount of water recovery that can be achieved through water purchase, in line with the Coalition’s Water Recovery strategy released in June 2014. To date, 1162 Gl has been recovered through water purchase, 607 Gl recovered through investment in infrastructure projects and a further 182 Gl through other state recovery actions. That’s 1951 Gl — 71 per cent of the water recovery required under the plan. For the remaining water recovery efforts, we have prioritised the remainder of the
Basin Plan funding for investment in infrastructure, particularly through more efficient on and off-farm irrigation systems, and environmental works and measures, to achieve the outcomes of the Basin Plan to the full extent. From now until June 20, 2019 the Federal Government will spend $2 million per day, investing in infrastructure right across the basin, investing in the future of sustainable farming and irrigated agriculture, and investing in our environmental sustainability as well as community sustainability, all with a level of certainty. That is $2 million a day invested into our regional communities. We will do this working in partnership with our state counterparts who are key and critical to delivering the Murray Darling Basin reforms. Throughout my travels with local members I have seen the positives of this investment by the Commonwealth Government. With Federal Member for Murray Sharman Stone, I visited the dairy farm of Nick and Nicole Ryan who have upgraded their farm with laser levelling and automated, pressurised pipe and riser irrigation technology. I also visited Deniliquin with Member for Farrer Sussan Ley, where I saw infrastructure investment in new remote controlled regulators and metering and met with the Wragge family, a father and son rice growing team. Again they
are benefiting from on-farm laser levelling, which is reducing the amount of water needed, but also increasing crop yield.
Innovation Innovation is the Australian way and this rice farmer is looking for further means to increase his yield per ha — he is doing this by putting freshwater eels into the flooded paddocks, which is achieving the dual benefit of eel production for market, but also improving their environmental footprint through bug control, as the eels feed on the insects, reducing pesticide and input costs. Over $100 million invested through the Living Murray initiative is finally delivering water to the wetland and I have seen the success of the recent environmental waterings — with trees, the bush scrub and wildlife responding slowly, but positively. I met with Leeton Mayor Paul Maytom who was upbeat about the investment the reforms were delivering to his community; however, when meeting with him and local businesses such as JBS Meat, Sunrice and Walnuts Australia, they highlighted the need for certainty from government — the need for the 1500 Gl cap to be legislated. We need to build a strong future in the Murray-Darling Basin and this is why the next step to legislate the 1500 Gl cap is so important as a means of providing confidence and certainty to basin communities as a whole — they deserve nothing less.
‘Water Talk’, April, 2015—PAGE 3
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Automatic system saves time By Sophie Bruns
G
ary White has just finished his second summer of irrigation his Cohuna dairy farm with the Observant automation system and he has found the system is saving him time and freeing him up to complete other farm jobs. ‘‘Automation has been great and while there is still a few small issues that need to be ironed out, it is improving all the time and I certainly wouldn’t go back to the old way I used to water,’’ Mr White said. It was through the On Farm Efficiency program that Gary, his wife Jo, and mum Mary installed 8.6 km of black brute pipe to service 202 ha of the 344 ha farm. The pipe was laid in a loop system and 96 fully automated I-Risers from AWMA in Cohuna were installed. Because the system was so large Mr White feared he would be chasing water all day so the decision to automate was made. The I-Risers talk to the Observant program, as does Mr White’s pump, which was installed by Switch Gear from Echuca. ‘‘The pump has a variable speed drive with remote start and remote shut down. Low flow, pressure levels, motor current and temperature are also monitored and if the system detects a problem it shuts down and sends a message to my phone.’’ Mr White said he has had weeds block the front of the pump, an I-Riser hasn’t opened
and power issues and the system has shut itself down making him feel confident in the way the program runs. ‘‘I can also dial in how many megalitres a day I want the pump to run at and I know the pump will send the same volume of water down any bay I choose to water on the farm, which really helps with working out watering times. ‘‘You still have to monitor and alter things like watering times in the system but a lot of the physical work like opening and closing bays, and checking paddocks has been taken away.’’ Mr White said the system also tracked electricity usage. Installing the new system has seen Mr White increase stock numbers by 50 cows to well above 500. ‘‘We are using around the same amount of water as we always have, but we are now able to water extra ground. I have changed the way I irrigate because I can choose to water any paddock on the farm without having to worry about filling a channel and watering that whole section,’’ he said. ‘‘I can water in front or behind the cows and the days of grazing the herd on a wet paddock due to irrigation are long gone. ‘‘My management has changed and I certainly believe this system has enabled me to manage my farm much better than I would have been able to do before.’’
Gary White has been operating an automated pipe and riser system for two summers now and he is more then happy with the way things are running on his Cohuna dairy farm.
A farm walk was hosted at the White family farm last month.
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PAGE 4—‘Water Talk’, April, 2015
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No change in water allocations orthern Victoria N resource manager Andrew Shields said last
week seasonal determinations would remain unchanged for the remainder of 2014-15. Seasonal determinations in the Murray, Goulburn, Campaspe and Loddon systems stay at 100 per cent of high-reliability water shares. The Broken and Bullarook systems remain at 100 per cent HRWS and 100 per cent of low-reliability water shares. ‘‘Available resources have not increased since the last assessment on March 16,’’ Mr Shields said. ‘‘While seasonal determinations against lowreliability water shares in the Murray, Goulburn, Campaspe and Loddon systems were not announced this season, these systems have good reserves for the 2015-16 season. ‘‘This means each of these systems will receive an opening high-reliability water share seasonal determination on July 1, 2015.’’
The sun sets over the East Goulburn Main Channel at Wahring last week. Seasonal determinations in the Goulburn system are 100 per cent for high-reliability water and zero for low-reliability. Picture: Cathy Walker
y lle Va ear an e Y 13. si la th 0 ra of 2 st er nd Au eal 12 a D 0 2 See the difference that Valley Equipment can make to your farm enterprise. • Lowest total life costs on the market • Superior Integrity on all Running Gear • Longer Operating Life • 20 Year Warranty on Poly lined Spans Cobram Irrigation in conjunction with Valley now offer: • GPS Guidance via Trimble or John Deere Starfire • Telemetry Options by Valleys own Base Station 3 and AgSense Web Based Solutions
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High water demand SW DPI deputy director general of N water Gavin Hanlon last week announced general security water
allocations in the NSW Murray and Murrumbidgee valleys would remain unchanged as there had been no improvement in available water resources. ‘‘Persistent hot and dry weather over the past fortnight has led to continued high demand for water and high system losses across both valleys,’’ Mr Hanlon said. ‘‘There has been little run-off from the patchy rainfall across storage catchment areas.’’ Mr Hanlon also expressed caution about future conditions. ‘‘Although the rainfall outlook into autumn shows an improvement in the likelihood of getting at least median rainfall, there are still indications that an El Nin ˜o system may develop later in the year causing a return to generally dry conditions,’’ he said. ‘‘Trade arrangements in the Murrumbidgee and NSW Murray valleys
remain unchanged from last month with some capacity still available for trade downstream across the Barmah Choke by virtue of net trades upstream.’’ Hume and Dartmouth storages are now 23 per cent and 77 per cent full respectively and levels are continuing to fall to meet downstream demand. In the Murrumbidgee Valley, Burrinjuck Dam is currently at 32 per cent of capacity and Blowering Dam is 27 per cent. Mr Hanlon said due to continued high demands, river levels along the Murray over Easter were likely to have remained high, similar to those in recent months. He said holiday makers, businesses and communities had been encouraged to keep up-to-date with live river level information on the Office of Water website. The outcome of the next resource assessment will be announced on Wednesday, April 15, while the recent outlooks for July 1 allocations will be updated on Friday, May 15. ➤ Barmah Choke trade allowed, see page 11.
Centre pivot expertise ater Dynamics has W the experience, knowledge and expertise when it comes to all your T-L Irrigator needs. It is proudly Australia’s number one distributor of the only hydraulically driven centre pivot in the market, having sold, serviced and installed more than 1000 T-L Irrigators across Australia. With more than 30 years’ experience and having a number of the most experienced T-L
Irrigator specialists in Australia ensures Water Dynamics’ T-L services are high quality and comprehensive. ‘‘Our long standing relationship with T-L has allowed us to gain invaluable knowledge and experience that is unmatched,’’ a company spokesman said, The T-L hydraulic centre pivot is manufactured by one of the three main pivot manufacturers in the world and its easy, efficient and
simple technology ensures the irrigator moves continuously at any speed and operates well in all conditions. The absence of startstop operation reduces gearbox wear drastically, which means a longer operating life and reduced repair and maintenance costs. ➤ For all your T-L centre pivot and irrigation needs, phone the team at Yarrawonga on 5743 8900 or Shepparton on 5831 3300.
‘Water Talk’, April, 2015—PAGE 5
“The i-Riser system is great valve for money. It’s maintenance free, has zero leakage, is well proven and the cloud based software means I always access the latest version wherever I am. The main benefits that justify the investment are time management, reliability and water savings.” Gary Wight, Cohuna VIC
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piping your future We pride ourselves on quality and customer service, and because we are local we have established an outstanding reputation within the industry. • Our products range in size from 300 mm to 1050 mm • Both rubber and butt joint pipe. • All concrete pipes are manufactured to Australian Standard 4058. • NATA Quality Accreditation to ISO 9001. • Concrete bends and T-pieces made to order. For further information and quotes, please phone our friendly team, visit our website or call into our yard.
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Irrigators urged to apply any irrigators in the M Goulburn Murray Irrigation District are looking
to invest in on-farm water infrastructure improvements. Round four of the Farm Water Program has opened for Registrations of Interest for $50 million of funding under Tranche 2 of the Victorian Farm Modernisation Project, which is being delivered by the Victorian Government. Goulburn Broken Catchment Management Authority chief executive officer Chris Norman said: ‘‘Eligible projects can range from laser grading, gravity channel irrigation and drainage reuse, through to the installation of pipes and risers, irrigation scheduling and pressurised systems. ‘‘For round four, irrigators should check if their projects are eligible by addressing the eligibility criteria and reading through the frequently asked questions. ‘‘It is also important to review whole-farm plans and ensure they meet the minimum standards and show the proposed works.’’ By the close of registrations, irrigators must ensure they: ➤ Own the land on which the works will be done and own high reliability water shares; ➤ Are willing to transfer the
Irrigation upgrades under efficiency programs have changed the face of how water is applied in northern Victoria. specified water savings (expected to be 60 per cent) to the Commonwealth Government (through the GBCMA); ➤ Have a whole-farm plan that meets minimum standards and shows the proposed works; ➤ Have an executed Goulburn-Murray Water legal agreement connecting the property to a G-MW backbone available and/or know the proposed project area connects to an outlet on an approved G-MW backbone; and
➤ Can cover specified cash flow for the final costs of the project before final payment is made by the GBCMA. ‘‘Over $120 million funding administered by the Farm Water Program to projects in the GMID in past rounds resulted in total water savings of 67 Gl for the region,’’ Mr Norman said. The Farm Water Program consortium is led by the GBCMA and includes North Central CMA; North East CMA; Department of Environment, Land, Water and Planning; Department of Economic
Development, Jobs, Transport and Resources; G-MW; Dairy Australia; Murray Dairy and Northern Victorian Irrigators. Irrigators who think they meet these and other eligibility criteria must register their interest on the GBCMA Farm Water Program hotline 5822 7788 by 4 pm on Friday, April 17. ➤ For more information regarding the Farm Water Program and requirements for applications, visit: www.gbcma. vic.gov.au/sustainable_irrigation/ farm_water
Connections Project
More than 350km on a motorbike, two weeks spent getting up at night to open and close irrigation bays and 160ML of water was a usual watering for Mr Hodge. Now the Numurkah farmer can water the same 200ha parcel of land in about three days, the system is entirely automatic and uses half the water.
“
To have yields sustained year in year out, you have to have irrigation
“
Speed and efficiency are the big benefits for Numurkah farmer Stuart Hodge, after he upgraded his irrigation system through Goulburn-Murray Water’s (GMW) Connections Project.
The new system is making a difference to Mr Hodge’s cropping operations. “For us irrigation guarantees a good crop yield,” he said. “My grandfather knew that when he purchased the land in 1942.” “It also means I can stay in bed every night,” Mr Hodge joked. For more information, please go to the Connections website www.gmwconnectionsproject.com.au ZO520201
‘Water Talk’, April, 2015—PAGE 7
water talk Opinion:
Be Ontime™ with Archards Irrigation’s Automated Solutions
Positive or not? ater policy has been a W slow roll-out of bad news. Each week we see positive stories regarding water issues relating to the modernisation of our irrigation network or certain environmental outcomes achieved from taking water out of productive use. What we often fail to see is that these positives are outweighed by the negatives from changes made in the water industry and in water policy. The resilience of the Goulburn Valley has been possible because it is an area where irrigated agricultural businesses have propped up the local economy. Because of our farming communities and the businesses that service it, we have enjoyed greater economic opportunity than many other regions in our state. Things have changed and because change has been gradual many of us may not understand what has caused the change. How many shops are now vacant in the Shepparton area and how many
businesses are on the market? In 2007 irrigation water was unbundled meaning farmers could sell and transfer water that had previously been tied to their land without selling their land. Because of an extended drought many farmers took the opportunity to sell some of their permanent water. The governments of the day also took the opportunity to buy water for supposedly environmental purposes and other players such as superannuation funds and local and international investors saw an opportunity to buy and trade this precious commodity. The gradual loss of permanent water may not have had an immediate effect but has had a gradual and detrimental effect on our regional towns and all towns along the Murray River. Some of our politicians are awake to the problems that have been caused by the gradual changes in water policy and I would welcome a full review into the processes that have led us into this current situation. We need to hold so called expert consultants to task
that continue to promote their own opinions rather than hard facts to sell a fictitious Brave New World future for irrigated farming. We also need to ignore the extreme environmental groups that suggest regular flooding of productive land is good for agriculture. We also need a reality check on the organisations that operate our dams, rivers and channels to introduce efficiencies into their operations so we are not made to pay exorbitant prices for water just to keep them in cushy unproductive employment. Water policies were meant to deliver a triple bottom line, a good result for irrigators, a good result for the environment and a good result for communities. From what I see we have been delivered a triple negative where irrigators, the environment and communities are all losers. It is time for a close look at all issues surrounding irrigation water, so that we can regain economic security and also ensure we achieve only real and tangible benefits from future water policy.
Automation • Control • Monitoring • Scheduling Archards Irrigations Ontime™ Automation Solutions • • • • •
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PAGE 8—‘Water Talk’, April, 2015
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Don’t be afraid of technology By Alexandra Bathman
G
Australian Public Address Sound’s Ian Ware talked on technology at the GRDC Farm Business Update.
rain growers in the southern Riverina have been told not to let new technologies daunt them when it came to irrigation and automation. ‘‘It will do what you tell it to do — it’s not like a dog that’s gone after a rabbit,’’ Ian Ware from Australian Public Address Sound said. ‘‘It will also send you a message to tell you when it’s done.’’ Mr Ware was a guest speaker at the Grains Research and Development Corporation Farm Business Update in Finley last month where he discussed the internet, including the National Broadband Network, and how it is used in irrigation automation. He said ICT (Information Communications Technology) on and off the paddock was the critical component in successfully integrating new
THE T-L DIFFERENCE PROVEN TECHNOLOGY THAT WORKS!
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technologies with irrigation systems. ‘‘Better controlled water application (both in terms of volume and frequency) helps ensure timely application of water in response to crop requirements. ‘‘Automation technology, allowing remote control of pumps and irrigation equipment, can significantly reduce time and labour costs.’’ Mr Ware encouraged growers not to let the lack of internet availability limit their farming practices. ‘‘Connectivity is the limiting factor in the adoption of certain new technologies in farming, and optimising the speed and coverage of your internet service will provide the best access to information and services as well as allowing the adoption of new technologies. ‘‘The roll-out of the
National Broadband Network is starting to address connectivity issues, and in rural areas you are most likely to be offered a wireless solution. ‘‘If you cannot get NBN fibre, and NBN fixed wireless becomes available in your area, sign up as soon as possible as there are a limited number of connections available per tower.’’ Mr Ware said if a farmer had a good internet connection, the adoption of the new technology had countless benefits such as remote monitoring and reporting of data as well as water level/flow/pressure monitoring and engine control and management. He said if need be, it was possible to create your own internet connection from a telco tower, and share the cost of the infrastructure set-up with small groups of farmers or communities.
Come in and see us at our new warehouse on the Newell Highway in Finley. We have the parts and technicians to support existing and future T-L clients. See us at the WTC Irrigation Expo! 20th/21st May – Shepparton Showgrounds.
The Choice is Simple.
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Eagle i understands We are farmers who live north east of Kyabram. We recently purchased two T-L centre pivot irrigators from Eagle i: one fixed and one a towable unit. This year we have been able to — for the first time in a long time — finish off our crops and plant 80 ha of maize that will either go for silage or grain. We looked into three leading brands of pivots and T-L was our pick. T-L are hydraulically driven and are very simple to operate. Our decision to choose T-L was not done on price alone. We found the people at Eagle i in Finley, mainly being Brad and Peter, very understanding of what we required as farmers. With Eagle i, we felt very comfortable with the decisions they were helping us to make in buying a T-L centre pivot.
Richard and Tania Russell
”
Eagle i Machinery Pty Ltd ** Now Open ** Newell Highway, Finley NSW Phone Peter on 0427 056 240 or Brad on 0429 658 334 or Email peter@eaglei.com.au
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‘Water Talk’, April, 2015—PAGE 9
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Survey
Plan input urged
Design
oulburn-Murray Water is G encouraging customers in the Katunga Water Supply Protection Area
to get involved and have their say on proposed changes to the groundwater management plan. The Katunga WSPA relates to groundwater that is more than 25 m below the ground surface. The area extends from Yarrawonga to Barmah, and includes Strathmerton, Cobram, Numurkah and Nathalia. G-MW groundwater and streams manager Simon Cowan said a groundwater management plan was currently in place to ensure deep groundwater resources in the Murray Valley region were managed in a sustainable manner. ‘‘A 2012 review and customer survey of the Katunga groundwater management plan found that the plan had been largely successful,’’ Mr Cowan said. ‘‘The review also found that customers were supportive of making improvements, including allowing more flexible trading options. ‘‘As a result we’ll be putting forward some proposed changes to parts of the plan, such as the current annual allocation and trading rules, which aim to give groundwater customers greater certainty and flexibility, and improve how they can use and manage their water entitlements.’’ A consultative committee will be appointed to advise on the draft amendments to the plan, with half the committee required to be made up of landholders from the area. The committee will also include representatives from key stakeholder agencies such as the Department of Environment, Land, Water and Planning and
Irrigation
Increasing milk per megalitre Onleys on-farm irrigation check up > An Onleys’ consultant will visit you on farm, to discuss your
current irrigation system > A field assessment will be undertaken assessing the concerns to identify potential improvements > You will receive a detailed written report that identifies any issues, and offer efficient, economical solutions to increase your paddocks profitability.
Onleys also specialise in: Goulburn-Murray Water wants landholder input to make groundwater management plan changes.
> Whole Farm Plans > Project Management
the Goulburn Broken Catchment Management Authority. ‘‘Customer input was a reason for the success of the current Katunga plan, so it is vital we continue to have users’ input to proposed changes,’’ Mr Cowan said. ➤ Further information about the plan amendment and committee nomination process is available at www.gmwater.com.au or by contacting Karina Joy on 1800 013 357 or karina.joy@gmwater.com.au Nominations for the consultative committee must be received by the close of business on Friday, April 17.
It’s on again
> Subdivision > pH and Yield Mapping
“We are your complete irrigation design specialists” SHEPPARTON 5 Telford Drive, Shepparton Phone: (03) 5821 7171 Email: mail@onleys.com.au www.onleys.com.au SURVEY DESIGN IRRIGATION SURVEY DESIGN IRRIGATION SURVEY DESIGN IRRIG
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Irrigation and Energy Expo showcasing industry innovation
ATTENTION EXHIBITORS
Shepparton Showgrounds – May 20 & 21, 2015
Showcase your business at the 2015 WTC Irrigation Expo With a hugely successful event in 2014, the 2015 expo promises to be even better. The expo provides the perfect opportunity to promote your products and services to a targeted audience. Many previous exhibitors have commented that ‘the right people’ attend and buy their products.
If you’re participating in the On-farm Water Progams or Goulburn-Murray Water Connections Project, this Irrigation and Energy Efficiencty Expo is for you.
To book your exhibition space please complete the prospectus documents available from our website, www.wtcexpo.com.au and email To be held again at the Exhibition them to andrew.chittick@totaleden. building at the Shepparton showgrounds, which is a purpose-built com.au or mail to Andrew Chittick at undercover venue with extensive car Rob Rye Irrigation, 19 New Dookie Road, Shepparton, parking. With competitive site fees and a guaranteed audience, exhibitors Victoria 3630. will receive excellent value for money. Book early to secure your site!
Contacts Sponsorship Wendy Buck Chair WTC Irrigation Expo wendy@wtcexpo.com.au
Exhibiting Andrew Chittick Expo Treasurer andrew.chittick@totaleden.com.au
Phone: 0438 052 630
Phone: 0400 671 172
Or visit our website www.wtcexpo.com.au.
MAJOR SPONSORS:
ountry News Co Reaching Australia ’s richest agricultural region
SPONSORS:
PAGE 10—‘Water Talk’, April, 2015
water talk
Salt out of water ew membranes or micro-filters have N been developed to provide clean water in an energy efficient manner and
SAVE
remove salt from water for irrigation use. Researchers from the Melbourne School of Engineering at the University of Melbourne, in conjunction with CSIRO, have developed the new membranes to be available in about four to five years. Department of Chemical and Biomolecular Engineering Professor Sandra Kentish said the availability of fresh water for drinking, irrigation and industrial use was one of the grand challenges of this century. ‘‘If you are taking water from a saline source that you want to use in irrigation, then you can use the membranes to take the salt out,’’ Prof Kentish said ‘‘Irrigators would have to go through a water treatment plant within a facility that desalinates. The membranes are still in the laboratory, so they are about four or five years away.’’ Prof Kentish said that up until now, there had not been a way to add chlorinating agents to water to prevent biological growth in the desalination process. ‘‘Such biofouling has been a major issue to date, but the new membranes have the potential to lead to a more economic desalination operation,’’ she said. ‘‘The new membranes perform at a comparable level to existing commercial membranes used in these applications, but importantly show greater resistance to attack by chlorine containing chemicals. ‘‘The chlorine resistant membrane materials can cut out additional processing steps reducing operating costs. They can also prevent the decrease in water flow that
Water
SAVE
Energy
SAVE E Moneyy
New membrane technology will increase the availability of clean drinking water and make biofouling a thing of the past, researchers say. is currently observed with time due to biological fouling.’’ The novel membrane technology uses layer-by-layer polymer assembly and has been developed by a collaborative research team including Prof Kentish with Professor Frank Caruso and Dr Jacky Cho from the Melbourne School of Engineering and Dr Anita Hill from CSIRO. The work was made possible through funding from the Science and Industry Endowment Fund.
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High and low reliability water shares trades. Water leasing. Forward allocation. Carryover protection. We guide the trading process from listing to settlement. Growing list of buyers and sellers. Call us to discuss the benefits of trading your permanent entitlement with Waterpool.
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‘Water Talk’, April, 2015—PAGE 11
water talk
Demand affects prices everal factors have S combined to increase water demand and thus result in a
further firming of the water market over the week ending Friday, March 20. These factors are: ➤ A continued strong demand for allocation (or temp) water across the whole Southern Connected Basin for pre-watering cereal crops or pastures, finishing summer crops or carryover. ➤ Only small increases in supply, with the most recent announcement being a nil allocation increase on the Murrumbidgee and only two per cent on the NSW Murray, and an announcement of a further two per cent in MIL. In Victoria, hopes of a seasonal determination against lowreliability water shares have now effectively been abandoned. ➤ The prospect of a hot spell over the growing regions. At this time of the year water prices will usually be declining or close to it. Obviously prices in a specific year will depend on supply and demand rather than always following a historical pattern. Current pricing is a good example of this, where demand has increased while supply has not increased to the same degree and hence prices have increased. With current weather conditions it’s hard to see
Trading is allowed Murray-Darling Basin TheAuthority says there is
Dry conditions mean demand for irrigation water has increased, making it a sellers’ market. increased water supply in the next few weeks at least. Following that time, demand from summer crop irrigators will decrease and some more sellers may start entering the market, which could provide some relief in the form of extra water supply. In the meantime it’s certainly a good opportunity for sellers to obtain good prices for their temp water. Looking forward to water supply in the 2015-16 water year, both NSW and Victoria have
recently released their initial estimates of water allocations as at July 1. In NSW initial allocations look as though they will be slightly lower than last year, especially in the NSW Murray, and average carryover levels will be slightly lower as well. Given current dam levels, this is not surprising. In Victoria, expectations are still for an opening seasonal determination on July 1. Note that rainfall in May and
June could allow increases to these estimated allocations. From a risk management point of view, the sorts of tools buyers are using to guarantee at least some water for the 2015-16 year include forward water agreements and buying for carryover. Those looking to carryover can do so in either physical storages, carryover accounts on their own licences or by renting carryover space on other licenses. ➤ Contact Ruralco Water for more information.
currently capacity to trade water downstream through the Barmah Choke. ‘‘As water traders plan their trading activities for the rest of the financial year, we encourage them to check the live info on our website for the volume of water that can be traded downstream through the choke,’’ MDBA water markets spokesperson Heather Cotching said. ‘‘Since the Barmah Choke was restricted in October 2014, we have seen more than 570 trades with 70 per cent of those going upstream,’’ Ms Cotching said. ‘‘For the last month, the figure able to be traded downstream has been hovering at around 20 Gl. ‘‘If anyone wants to trade downstream of the choke, just check our website first. Click on the Barmah Choke link off our homepage at www.mdba.gov.au and you will see the latest figures which we update every time a trade takes place.’’ A reminder that while the MDBA manages the restriction on the choke, state authorities remain responsible for trade applications and approvals.
➤ Barmah Choke capacity is available at http://www.mdba.gov. au/river-data/barmah-choke
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PAGE 12—‘Water Talk’, April, 2015
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