TFGA VOICE magazine by zest.

VOICE Tasmanian Farmers and Graziers Association

your future, our future

A forest 'peace deal' that may be anything but An Open Letter from the fire-affected farmers in the Dunalley area

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Presenters include:

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Trendspotter and Futurist

Director of Campaigns & Communications, CHOICE

Charlie Arnot

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CEO, Centre for Food Integrity U.S.

CEO, National Farmers Federation

Jeanine Sciacca Business Development, The Nielsen Company

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VOICE

Tasmanian Farmers and Graziers Association

your future, our future

Introduction • President’s Report. • From the desk of the CEO.

Features • A forest 'peace deal' that may be anything but. • An open letter from the fire-affected farmers in the Dunalley area.

Industry update • MLA articles: - Lamb for all seasons. - Targeting students. • Get real about Bovine Johne’s Disease. • Reducing nitrous oxide emissions, nitrogen application and maintaining production using sensor technology.

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FGA House, PO Box 193 T Cnr Charles & Cimitiere Sts, Launceston 7250 Tel: (03) 6332 1800 Fax: (03) 6331 4344 Freecall 1800 154 111 (in Tas) Email: voice@tfga.com.au www.tfga.com.au

Editor Nardia Deverell, TFGA. Tel: (03) 6332 1818 Email: Nardia@tfga.com.au Layout & Design/ Advertising enquiries zest. advertising. design. web. 41 Cameron Street, Launceston 7250 Tel: (03) 6334 3319 Fax: (03) 6331 3176 Email: info@zesttas.com.au www.zesttas.com.au The views expressed in Voice are not necessarily endorsed by the Tasmanian Farmers & Graziers Association. No responsibility is accepted for the accuracy of information contained in the text or advertisements. Advertisements must comply with the relevant provisions of the Trade Practices Act 1974. Responsibility for compliance with the Act rests with the person, company or advertising agency submitting the advertisement. Voice editorial policy: contributions must be relevant and suitable for Tasmanian Farmers and Graziers and will be used at the discretion of the editor, in whole or part, or not at all, in the next scheduled issue or subsequent issues. The publishers do not pay for editorial submitted.

Issue 35, June 2013

ISSN 1838-384X

16 22

Policy • Policy and advocacy update. • The future of rural enterprises in the global food chain. • Industrial relations update.

People • Blogspot. • Snippets: - Eating an apple a day might keep the cardiologist away. - Carbon, water and food on the agenda.

TFGA Policy Forum registrations closing soon! Remember to register for the TFGA Policy Forum, Major Dinner and Field Trip – a fantastic and thought provoking day followed by a fun and entertaining evening – a definite highlight of the agricultural calendar!

registrations close friday, june 28! To register visit www.tfga.com.au or call Nardia Deverell on 6332 1818

David Gatenby, TFGA President

We have so much to be thankful for: our water, our soils, our climate and the skills and commitment of all our farmers.

As I sit writing the last of my 32 Voice columns, I do so with a deal of emotion. I leave a privileged position, leading some 3000 Tasmanian farmers and their families, people who depend on the TFGA to be an advocate for their aspirations. At the same time, I have a sense of anticipation over the impact the next president will have on Tasmanian agriculture and on the TFGA. I have to thank you, the wonderful farming community, for allowing me this honour over the past four years. The journey has taken me to more than 500 meetings, dinners, field trips, farm visits, launches, funerals and interstate trips and at least 150,000 kilometres on the road, all part of the TFGA president’s role. The words of Dorothea Mackellar sum up what our farmers have been through the last four years: fires, drought and flooding rains. It is the lot of agriculture in the Australian landscape. It is part of her beauty and her terror. What I am most proud of in those four years representing the TFGA is this organisation’s ability to help those farmers in desperate need as they tackle those fires, drought and flooding rains, the iniquities of the market and the dollar. I hope that the fires in the south will be the last of the natural disasters that I will see in my term. The devastation was heart-breaking but the response was heart-warming. The assistance offered by fellow farmers, the wider agricultural industry, service clubs, Rural Alive and Well, the Rural Financial Counselling Service, the charities, the Tasmanian and Australian governments was nothing short of amazing. One thing is for certain: we will always have these natural disasters. It is what we have learned to live with. The other difficulties of farming are always evident: processors closing or going to the brink of closure (that includes vegetable processors and meat processors), Gunns, the uncertainty over forestry, the constant battle for a living wage from commodities, escalating costs, the poor freight options that we have, and the threat of imports. Then we have the psychological effects of all of this. I believe that as the world population grows the future for our food and fibre looks bright as long as we are able to produce and market profitably. In the short term there will be uncertainties. Essentially I believe I have always been an optimist. I have always tended to look to the vision splendid. We have to concentrate on the positives of this wonderful island. We have so much to be thankful for: our water, our soils, our climate and the skills and commitment of all our farmers. I believe the TFGA is enjoying a great period of stability. The community respects us; we are a powerful lobbying body; we speak with one voice. That’s more than you can say for some other areas of Tasmanian industry. In closing, I would to thank the support of my board, past and present commodity council members, committee members and you, the farmers. I would also like to thank both CEOs with whom I have worked as president, Chris Oldfield and Jan Davis. I thank them for their total commitment not only to the TFGA but to Tasmanian agriculture. Finally, I would like to say thank you to my second family, the very special staff at the TFGA.

Notice of annual general meeting

Notice is hereby given that the AGM of the TFGA will be held at the Country Club Tasmania, Launceston, on Thursday 11th July 2013, commencing at 4.00pm.

Thursday, 11 July 2013

For more information, contact the TFGA office on 6332 1800 or fionag@tfga.com.au

voice • june 2013 • www.tfga.com.au

Members who are entitled to vote will receive information in due course.

I sometimes feel like a tape, set on auto-replay... (Some of you will remember tapes; those of you that don’t should just move right along.) When all about us may be predicting doom and gloom or preoccupying themselves with anything but the real issues facing the state, you can rely on the resilience of Tasmanian farmers to shine a light to the future. I still believe that, despite having just read the latest, rather depressing, survey of the level of confidence among Tasmanian farmers that was conducted by Rabobank. Its opening remarks included “Tasmanian rural confidence has continued its downward slide... record low levels... lowest net confidence reading since the survey began...” Many of our farmers are facing very difficult market conditions, aggravated by the practices of the supermarket duopoly and the perennial problem we have with the high cost of freighting goods to and from the island. The dollar is against us, farm gate prices are under huge pressures, processor contracts have been cut, power prices are going through the roof, we’re hanging out for good rain, every day there seems to be more and more reasons for not employing people, and every day the dead weight of regulation wears them down. Sadly, we are not alone in this pessimistic view of the future. On the back of the Rabobank report, the National Farmers

Federation recently also pointed to the pressures on farmers nationally: the high Australian dollar, increasing input costs, falling property prices, softening commodity prices, and a return to dry conditions across many states (including parts of Tasmania). I know that our farmers constantly worry about these issues – they are at the pointy end where these things impact on their lives and livelihoods every day. However, I can’t help but wonder how much the Rabobank survey actually reflects the perception of farmers of the state rather than the state of their own businesses. As the Rabobank report pointed out, many Tasmanian farms are diversified. They spread their risk across a number of enterprises. There have been positive returns for irrigated crops such as poppies; and global supply fundamentals are pointing to a six to ten percent increase in milk prices next year. My impression is that people generally are much more concerned about the overall weakness of the Tasmanian economy as a whole, the perpetual paralysis we seem to suffer in our ability to attract enterprise and innovation, and the propensity of politicians to want to concentrate on everything but these critical economic issues. We keep getting blindsided by first world concerns and social issues and white noise from the media that distract from the real things that make us all nervous.

Jan Davis, TFGA CEO

reflecting through the Rabobank survey. This may be supported by the fact that, while farmers’ expectations of their own business performance fell, they remained more positive about the performance of their own business than that of the wider agricultural economy. We live in one of the best places in the world: we have ample water; more useable hours of sunlight than most places; a fabulous climate; soils so good in some places you could eat them; smart researchers; and very innovative farmers. If the planets align, and we can manage the imposts from over-regulation and other business interferences, agriculture will indeed be one of the great white hopes of the Tasmanian economy. Our farmers are committed to Tasmania and, perhaps surprisingly, the survey shows that they are still keen to invest. Times are tough, and their numbers may be down, but they are still ready to put their money where their mouths are. But, gee, we make it hard for them. As the NFF noted, all farmers need – and deserve – certainty from governments. Tasmanian farmers also deserve encouragement and acknowledgement from all Tasmanians if they are to keep doing the heavy lifting in a future economic recovery.

I believe that, in many cases, these are the things influencing the views farmers are

We live in one of the best places in the world: we have ample water; more useable hours of sunlight than most places; a fabulous climate; soils so good in some places you could eat them; smart researchers; and very innovative farmers. www.tfga.com.au • june 2013 voice

the tasmanian forests agreement bill

A forest 'peace deal' that may be anything but On April 30, the Tasmanian Forests Agreement (TFA) Bill -- the ‘peace deal’, as it has been dubbed -- was passed by Tasmania’s Parliament to a mixed reception of relief, grief and disbelief. Amendments made by the state Upper House that delay the creation of new national parks were, perhaps surprisingly, accepted by the Labor/Greens majority, with the exception of one Greens MP who voted with the Liberal Opposition.

Doomed Planet "Today’s debate about global warming is essentially a debate about freedom. The environmentalists would like to mastermind each and every possible (and impossible) aspect of our lives.” Vaclav Klaus - Blue Planet in Green Shackles

While the Bill has emanated from incessant and widely-publicised forest conflict, the public discourse has ignored the reality that this is restricted to just the 20% of Tasmanian forests that are multiple-use State forests managed for long term timber supply. Most who are outraged by sensational media coverage of chainsaw massacres perpetrated in Tasmania’s allegedly endangered forests, will have been unaware that prior to the ‘peace deal’ process, 80% of the state’s native forests were already reserved for conservation, unsuited for timber production, or privately-owned. This contextual perspective suggests that the major driving force for the ‘peace deal’ – that is, to ‘lock-up’ substantially more public forest in new national parks – is more about satisfying environmental ideology than addressing genuine conservation needs. The ‘peace deal’ process involved three years of exhaustive negotiations between representatives from Tasmania’s timber industry and its three main and allied ENGOs (environmental non-government organisations). From the start, they were conducted on an uneven playing field, where only the industry side had anything tangible at stake. With the prospect of lost livelihoods and financial ruin hinging on the outcome, industry negotiators were severely constrained in brokering compromises from ENGOs brandishing conservation ‘wish lists’ whilst threatening to destroy the industry if those demands weren’t met. The key elements of the ‘peace deal’ are:

voice • june 2013 • www.tfga.com.au

• There will be immediate reservation of 88,000 hectares in new national parks plus a ‘conservation order’providing interim protection for the rest of the proposed parks. • The subsequent reservation of the balance of the new parks is deferred to October 2014 and October 2015 subject to conditions outlined below. • In return for these new national parks, the signatory ENGOs are to desist from protesting against Tasmania’s remaining timber industry, while working to stop other groups from ‘substantially’ protesting against the industry in the forest or the international marketplace. • The signatory ENGOs are required to ‘help’ Forestry Tasmania achieve Forest Stewardship Council (FSC) certification for its forestry practices within 18 months. • If there are ‘substantial’ protests or if Forestry Tasmania fails to get FSC certification, the promised new national parks will revert to State forest available for wood production. The response to this outcome has been predictable amongst the forestry sector; but is more complex amongst the ENGOs, Greens and their supporters, given what they stand to gain when they never had anything to lose. The broader forestry sector is comprised of forest scientists, forestry practitioners, and industry processers, contractors and their employees. They believe that there is nothing wrong with producing wood from a renewable resource, know the forestry practices used in Tasmania are acknowledged to be amongst the world’s best, and are already certified by the Programme for the Endorsement of Forest Certification (PEFC)-aligned Australian Forestry Standard (AFS).

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• The State forest sawlog harvest is reduced to 137,000 m3/year – a 55% reduction from the currently legislated volume.

• An area of 504,000 hectares of State forest (around 16% of Tasmania’s forests) is to be transferred into the national parks estate in three installments.

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Accordingly, few in the forestry sector can philosophically endorse an outcome largely forced by orchestrated campaigns of misinformation to intimidate and blackmail markets to an extent that the timber industry, already reeling from an unfavourable business climate, has been forced to allow its critics and enemies to determine the future of its resource base. By agreeing to allow the ENGO’s to draw-up the location and extent of new national parks supposedly encompassing ‘high conservation value forests’, the industry’s negotiators sanctioned an eco-activists’ nirvana. Understandably, these proposed new national parks heavily reflect emotive conservation ‘wish lists’, whilst forest management imperatives, such as fire, and the concerns of other affected community stakeholders have been ignored. These new reserves also lack scientific validation, given that there is still no agreed scientific definition of what constitutes ‘high conservation value forest’. Indeed, the inclusion of significant regrowth from past timber harvesting in these proposed new reserves is testament to decades of effective state forest management. Whilst some scientific analysis was undertaken as part of the ‘peace deal’ process, it has been variously described as patchy, flawed, superficial, and incomplete, in keeping with short timelines overseen by a politically-appointed group dominated by former ENGO entities and associates. In addition, there has been no all-encompassing socio-economic analysis examining the full impact of what eschewing substantial areas of wood production forest for new national parks will mean for Tasmania, its people, and its economy. While such flaws are unacceptable to many, those directly employed within the industry have been understandably more concerned about their financial survival. Accordingly, most industry spokespersons have embraced the passing of the TFA Bill as the best/only way forward, arguably not least because it comes with around $200 million of Federal Government money dangled by Environment Minister Tony Burke to ‘encourage’ a favourable political outcome. This outcome will also enhance his reputation as an environmental saviour and political-fixer deserving of higher station.

While the ‘peace deal’ outcome has exposed differences of opinion amongst the broader forestry sector, these have been somewhat tempered by a general appreciation of the grave situation faced by the industry and its direct employees. Such pragmatism was reflected in comments made last week by the CEO of Ta Ann Tasmania, the largest remaining native hardwood company, who opined that although the ‘peace deal’ results in “the loss of 40% of the wood supply”, it removes uncertainty and creates “conditions where private investment can again be encouraged allowing businesses to be rebuilt on the basis of the new arrangements.” In stark contrast to this muted optimism amongst the timber industry, there seems to be precious little support for the ‘peace deal’ amongst Tasmania’s Green-Left demographic. Rather, the passing of the TFA Bill has opened a substantial split pitting the Tasmanian Greens who voted the TFA Bill through Parliament and the ENGO negotiators who forced its outcomes against virtually all other Greens/ENGO groups, members and supporters. According to celebrity activist Richard Flanagan, the spiritual mouthpiece of Tasmania’s progressive elites and who also disagrees furiously with the ‘peace deal’, this split “will take many years to recover from”.

resume their Tasmanian forests campaigns virtually as the TFA Bill was being passed. The language emanating from those Greens politicians and ENGO spokepersons who support the ‘peace deal’ is that its opponents are ‘sitting outside the mainstream consensis’. However, as these opponents include such luminaries as Australian Greens leader Christine Milne, and Greens founder and spiritual leader Bob Brown, there must be some doubt about what the ‘mainstream consensus’ actually is. Amongst the majority of Tasmania’s GreenLeft demographic opposed to the ‘peace deal’ there is anger and disbelief that the Greens could pass a Bill that: • Defers most of the new national parks until late 2014, thereby opening the way for a new Tasmanian Liberal Government – expected to be elected next March – to scupper the TFA legislation and prevent all but the first tranche of new parks from ever being realised; • Requires ENGOs to ‘help’ the timber industry get FSC certification. This is seen as another hurdle likely to block the reservation of most of the new parks, given that few Australian native forests have been FSC-certified thus far; • Requires ENGOs to desist from protesting until the new parks are declared. This is being condemned by Christine Milne, Bob Brown and many others as an attack on democratic free speech; and that • Allows the hated timber industry to secure federal funding assistance for agreeing to a deal that will ultimately be scuppered before its conservation gains are realised. Seemingly, most anger stems from the delaying of the new national parks. It is surely not unreasonable for the industry and the state to expect ENGOs to demonstrate good faith by ceasing protests before earning their rewards. However, the likelihood of a new Liberal State Government scuppering the process before it can be completed is a reasonable expectation given that the Liberals have consisently said as much while opposing the ‘peace deal’.

Tasmanian Greens leader Nick McKimm and the ENGO negotiators are insisting that, while not perfect, the ‘peace deal’ offers the best prospect for ‘a stunning conservation gain’ and an end to decades of conflict. Unsurprisingly, this view is also being spruiked by key Tasmanian and federal politicians, including Premier Giddings and Prime Minister Gillard.

The FSC-certification requirement is of particular interest as it directly challenges ENGO forest activists who have shamelessly misused FSC as a weapon to wedge Australia’s native hardwood industry out of its markets in the hope of destroying it. Accordingly, the industry’s failure to become FSC-certified has had far less to do with forestry practices - amongst the world’s best, as noted earlier, and AFScertified, than with ENGOs acting as FSC’s local gatekeepers.

Sitting on the other side of the split are some very prominent Greens and ENGOs, all dismissing the ‘peace deal’ as a failure. Some ENGOs, such as Markets for Change and Still Wild Still Threatened, were pledging to

Under the ‘peace deal’, this must change if Tasmania’s proposed new national parks are to be fully realised. This has greatly angered forest activists because it will effectively require them to sanction intensive www.tfga.com.au • june 2013 voice

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While it appears that the last minute offer of this Federal money revived the failing ‘peace deal’ negotiations and eventually delivered the current outcome, the reality is that only around 25% of it is earmarked for an ongoing native hardwood industry. The bulk of the rest will be directed to regional development projects in unrelated industries (was $93 million over 15 years with an increase to $100 million over 4 years in the federal budget), to manage the

new national parks ($25 million), and to compensate those businesses forced to exit the industry.

While FSC-certification is a key focus of the ‘peace deal’ based on the premise that it will neutralise future eco-activism against the remaining industry, this is not necessarily the case. Internationally there is a trend away from certification to legal frameworks and policy processes as a basis for trade. Certification has become less important. In any case, such is the split amongst the ENGO community that FSC-certification alone can’t guarantee that disaffected activists won’t still create sufficient noise to force a market shift to products from less controversial sources. Despite Greens/ENGO fears, even if the ‘peace deal’ fails or is trashed before all new reserves can be delivered, they would still have received considerable gains from the process and what led to it. These include the departure of hated corporate ‘timber giant’ Gunns, which halved the annual rate of public forest harvesting; the de-commissioning of the Triabunna port facility, thereby virtually ending native forest woodchipping in southern Tasmania; and the creation of at least 88,000 hectares of new national parks immediately created

rhetoric of “a historic agreement ending a 30-year conflict” is never realised while any Tasmanian public forests are harvested for wood.

An enduring theme from many of those supporting the ‘peace deal’ is that there was no other option and that, through it, the ENGOs have actually saved a dying industry. The alternative view is that in the absence of ENGO-activism:

Whatever happens, the anger the TFA Bill has created amongst Tasmania’s GreenLeft demographic confirms yet again that the persistence of forest conflict in Australia, despite two decades of substantial reductions to timber harvesting and a progressive expansion of conservation reserves, has been due far more to an uncompromising brand of environmental extremism than the forestry activities that it targets.

• T he domestic and international market demand for native hardwood timbers remains strong. • T he industry would have adapted to the high $A by developing other markets and products for its residues. • T he voluntary departure of Gunns had provided the opportunity to reduce perceived harvesting impacts across the landscape and would have led to a more value-focussed industry. As ENGO-activism underpins the industry’s problems and has actively stymied the capability of the industry to evolve through its difficulties, the notion that they should be lauded for saving the industry could be equated to thanking the Mafia for cutting off only one of your legs. Clearly, there remains considerable uncertainty as to whether the passing of the TFA Bill will end Tasmania’s forest conflict and there are already ominous signs that it won’t. These include the split in the state’s Green-Left demographic and amongst the ENGO-community, and the likelihood that the new national parks will need to survive an incoming Liberal Government intending to tear-up the enabling legislation. Even if the process is completed due to exemplary ENGO behaviour and a lack of political interference, there is no guarantee that forest peace will continue beyond the delivery of these new national parks. Indeed, given past history and the enduring distaste for the industry amongst most Greens/ ENGOs and their supporters, it would be unsurprising if the breathless media

This is somewhat out-of-step with environmentalism elsewhere around the world which is far more reasonable and accepting of a moderate balance between forest conservation and use. Unfortunately in Australia, the propensity for governments to just accept and try to appease unbending environmental extremism, rather than standup to it, has already substantially unbalanced sensible land management often with perverse, unintended consequences. This looks to be another example. As this ‘peace deal’ process is arguably the only time ENGOs have been forced to compromise in any tangible way on forests, it can at least be lauded for that. However, its price tag of 500,000 hectares of new reserves (including around half of the state’s former public wood production forests), for what is potentially only a temporary reprieve from ENGO forest activism, is massive. Given the upsurge in international demand for renewable, low-emission wood products in an increasingly carbon-constrained world, allowing future wood production to be limited to just 12% of its public forests hardly seems to be in the best interests of a state with a mendicant economy. Mark Poynter has been a professional forester for thirty years. He is a Fellow of the Institute of Foresters of Australia, and published the book Saving Australia’s Forests and its Implications in September 2007

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Despite activists’ rhetoric that the FSC-certification of Tasmanian forest management will entail a weakening of FSC standards, it would in fact pull the highly partisan Australian interpretation into line with its international application to natural forests, such as Canada’s boreal forests, where intensive harvesting systems are FSC-certified when acknowledged to be the most appropriate silvicultural technique. This would likely benefit timber industries across Australia by creating a precedent that removes what is arguably the key barrier to FSC-certification.

by the passing of the TFA Bill. Any cry from Greens/ENGOs that they’ve been dudded by the ‘peace deal’ needs to be considered in this context.

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harvesting systems that the remaining industry will continue to use in some forests. Despite being silviculturally appropriate for wet forests, harvesting systems such as clearfelling and modified clearfelling have always been the prime target of anti-logging activism.

THANK YOU An open letter from the fire-affected farmers in the Dunalley area to everyone who has contributed to the Tasmanian bushfire recovery...

As a group of farmers in the Dunalley area, we would like to take the time to thank the countless individuals, groups, non-for-profit organisations, businesses, industry groups and government agencies who have helped us in so many ways following the devastating bushfires on the 4th January 2013. Obviously, we can’t possibly name everyone who has contributed, but we would like to show our sincere and heartfelt appreciation for the many acts of generosity and overwhelming community support that we have been shown over the last 5 months. We quite honestly couldn’t have made it through the last few months without the support of the Tasmanian and wider Australian community. Your thoughts and well wishes mean a lot to us, and have helped us get through what has been a really tough time. We don’t usually like to make a fuss, but there are so many people out there who deserve recognition for their outstanding efforts (in no particular order): Emergency response services and coordination – Water carriage – Communications – Power restoration – Essential services restoration – Road restoration – Health services – Law enforcement – Veterinarian services – Wildlife assistance – Volunteer labour – Fencing assistance – Fodder, hay and grain for stock – Pasture seed – Animal food – Storage, collection, distribution and transportation of goods and equipment – Fencing equipment – Generators – Chainsaws – Machinery – Tools – Equipment – Agricultural supplies – Sawmilling – Discounted goods and services – Promotional activities – Government support – Industry representation – Fundraising – Donations – Professional advice – Understanding and flexibility – Coordination of meetings – Cleaning up of debris – Moral support – Food and homebaked goodies – Cups of tea – Financial support – Business mentoring and support – Sharing a laugh, a tear, and a well deserved beer. We’ve still got a way to go before we’re back on our feet, but knowing that we have the community’s support makes a world of difference. We’ve all been moved by your kindness, and seeing the progress of the recovery efforts is both reassuring and inspiring.

Yours sincerely, the fire affected farmers of the Dunalley, Copping and Carlton River area.

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Thank you, everyone, for all that you’ve done for us, and all you will do for us as we continue our recovery from the January bushfires.

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meat livestock australia

Lambtastic Regional differences in lamb supply and price trends are most evident between Western Australia and the eastern states. In 2010 and 2011, most of eastern Australia had two of the wettest years on record while WA remained dry until mid-2011, resulting in a large eastward movement of stock.

Lamb supply Lamb slaughter figures increase from the start of the year until autumn, drop away in winter and spike again in spring. This is clearest in WA in recent years (see Figure 1), where the industry did not enjoy the effects of an extended period of widespread rain. In the eastern states, the same pattern can be seen until 2010. In 2011 and 2012 there was a marked change, with an upward trend right through the year, including during the normally low winter months (see Figure 2). The two traditional peaks in lamb slaughter reflect a large turn-off ahead of potential winter feed shortages and the appearance of new season lambs in the market in spring.

Sheep supply For sheep, the pattern is even more pronounced, but in a different shape to lamb. In recent years, this pattern has been consistent across the eastern states and in WA, with sheep slaughter in both regions limited by the peak lambing period in winter. There is a noticeable drop in both sheep and lamb slaughter in December, due to a focus on crop harvests as well as the Christmas break. Live exports are also a factor. There is generally

Price trends The availability of lamb for slaughter affects prices, and Figure 4 shows an inverse pattern for the Eastern States Trade Lamb Indicator over the period 2005–09. As lamb slaughter increased throughout 2011 and 2012, prices declined. The same relationship is evident when looking at the WA saleyard trade lamb indicator (see Figure 3), with periods of low supply drawing higher prices in the yards. Other factors have an impact on where and when sheep and lamb are sold for slaughter in Australia, including wool prices, rainfall, pasture growth, crop prices relative to sheep, and other things that occur on a season-toseason basis. Despite these factors, the effect of seasonal breeding patterns on sheep and lamb slaughter and prices is clear to see.

More info Robert Barker, MLA, E: rbarker@mla.com MLA’s fridayfeedback e-news provides the latest data on lamb and sheep supply and price trends. To subscribe T: 1800 675 717 or E: publications@mla.com.au The Australian sheep industry projections also highlights these and other trends and provides an overall assessment of the health of the sheep industry in 2013 and beyond. www.mla.com.au/industryprojections

A new teacher resource is bringing solid facts about Australia’s cattle and sheep industries’ environmental performance into classrooms. The Target 100 Study Guides for high school teachers were developed by MLA, in conjunction with Cosmos magazine. The guides are linked to the Target 100 program, which promotes the industry’s focus on sustainability, and are part of MLA’s broader education work with school students. MLA Community Engagement Communications Manager, Anna Bradley, said the Target 100 Study Guides will help educate Australian high school students on the cattle and sheep industries’ focus on sustainability.

voice • june 2013 • www.tfga.com.au

Western Australian trade lamb indicator (18-22kg)

The irregular period of lamb slaughter in 2011 and 2012 was almost a reversal of the previous 5–10 years, which shows how a consistent feed supply can help smooth out the seasonal finishing time. In 2013, weather conditions may be closer to those experienced throughout the 2000s, and stock availability patterns may return to the traditional winter low and spring high.

Targeting students

Eastern state monthly lamb slaughter

Eastern states trade lamb indicator (18-22kg)

“The guides also profile researchers who are working in the industry, and farmers who are doing their bit for sustainability,” she said. Three Target 100 Study Guides are planned. The first, covering water efficiency, was released in March, with 2,000 copies distributed to schools across Australia. “The ‘Using Water Wisely Study Guide’ explores the measures the industry is taking to be more water efficient, as well as the science behind the development of these measures and their on-farm impact,” Anna said. The Guide also includes results from life cycle assessments that show how much water is used to produce a kilogram of beef or lamb. “We expect 130,000 students will use material from the Target 100 Study Guides,” Anna said. “The primary objective of the guides is to provide balanced information about the industry and to build further trust in it. “We also hope that some students will be inspired by what they learn and seek careers in the industry.” More information: Anna Bradley, MLA. T: 02 9463 9189 E: abradley@mla.com.au www.target100.com.au/Tips-resources

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The availability and price of lamb has peaks and troughs through the year. The timing of when they occur differs from region to region in Australia and depends significantly on seasonal conditions.

strong demand for sheep throughout the year in Australia’s live export markets; however, demand lifts at two key times – Ramadan and Eid al Adha – while shipments ahead of the Middle Eastern summer (Australia’s winter) tend to be slightly lower. The availability of ships can vary depending on lengths of voyages – including whether a trip to the eastern states is required for loading.

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Lamb for all seasons

Western Australian monthly lamb slaughter

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kim Haywood, TFGA policy advisor - commodities

Get real about Bovine Johne’s Disease According to a recent survey completed by Dairy Australia, Bovine Johne's Disease (BJD) is not a high disease risk priority in Tasmania. However, the repercussions of selling animals infected with BJD are significant; and the costs and other implications associated with herd infection can be crippling to businesses.

More countries, especially our main trading partners, are asking for proof of BJD freedom for individual export animals. Researchers, particularly in China, are getting closer to determining a link between BJD and the human Crohn’s disease. It would be unwise to ignore this disease, given what could be around the corner. There are options that can be taken to help clarify the BJD status on farm, without jeopardising the reputation of the business. If you suspect there are animals in your herd with a problem, then we would encourage you to consider the tests (opposite page) to get on top of the problem before it gets out of hand. There are tests that can be used which won’t affect the existing status of the property.

Also see www.bjdaware.com.au The level of BJD, particularly in Tasmanian beef herds, is currently low, but if this becomes higher in both beef and dairy herds, there will be no going back. TFGA is taking the lead on this with DPIPWE and will be setting up a BJD taskforce, for beef and dairy, to deliver an on-farm action plan for this complex disease. One of the first steps in the control of BJD is to learn about the disease and have a clear understanding of the risk factors. Follow this up by purchasing only low risk stock by making sure you look at the herd status on the NVD at purchase. Manage and graze your stock in such a way to reduce the opportunity for cattle less than 12 months of age coming into contact with contaminated pasture. Think about your onward trade and what level of assurance you want to promote for your stock.

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It is understandable that cattle producers don’t want to know about Johne's disease, given all the complexities and the costs associated with these, particularly when you observe the situation in Queensland. Unfortunately many farmers are confronted with the disease for the first time when they either receive a report of positive test results

in cattle; or worse, they receive notification that BJD infection has been traced to their property.

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voice • june 2013 • www.tfga.com.au

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Blood test (serology)

About this test

Approx. cost

The main blood test used for BJD in cattle is the ELISA test. The ELISA detects antibodies to the Johne’s disease bacteria and results are reported relatively quickly (one or two weeks). It is used as a screening test which means that other tests have to be used to confirm infection in ELISA positive animals. Only 20% of clinically normal but infected “carrier” cattle over 2 years old will be positive to the test. Most cattle showing some clinical signs of BJD (weight loss, scour) will be ELISA positive. An ELISA positive animal (and the herd) has an official SUSPECT status.

$11.00 per sample

Used as a screening test for individual dairy cattle. Almost as likely to detect infected animals as the blood ELISA. Cheaper to collect samples (can be combined with herd testing). Can be used in a known infected herd to cull cows that are likely to die in the next 12 months and thus reduce environmental contamination and on-farm deaths. The same test can be used to test bulk milk samples to give some indication of whether the herd is infected or how well a BJD control program is performing. Clinically normal milk ELISA positive animals are not SUSPECT and do not make the herd SUSPECT for BJD in the absence of other evidence of BJD.

$11.00 per sample

Dung (faecal) samples collected from individual animals are cultured for the bacteria. This is more expensive and slower than antibody tests, taking from two to five months. Faecal culture is the preferred test for alpaca and deer. It is also used to confirm infection in cattle that react to the blood or milk ELISA. Faecal culture will detect about 40% of infected but clinically normal “carrier” cattle over 2 years old. Strain typing can be carried out on positive cultures if there is any chance of infection by sheep strain. The sheep strain of Johne’s disease has been found in a number of cattle, some of which have shown typical signs of BJD, in Tasmania. A faecal positive animal (cattle strain confirmed if necessary) is officially POSITIVE for BJD and the herd is also INFECTED. Note: if goats, deer or alpaca are cultured positive to cattle strain, the cattle herd on that property is also officially INFECTED.

$55.00 per test

Faecal samples from up to five cattle may be cultured in one pool as a herd screening test. While the test still takes two to five months, it is a cheaper herd test option than individual faecal culture. If a positive pool is identified then the individual animals may need to be cultured to identify the source of the infection. If the pool is positive (cattle strain confirmed if necessary) the herd is officially INFECTED.

$55.00 plus pooling costs

Herd Environmental Culture (HEC) Test

The Herd Environmental Culture (HEC), is carried out on a sample of mixed manure collected from the concreted areas in a dairy using a special protocol. A negative test result is equivalent to the Check Test or Maintenance Test used for maintenance of herd status in the CATTLEMAP.) If the culture is positive the herd is officially POSITIVE for BJD, and has an INFECTED status.

$55.00

The HT-J faecal test

A PCR test to detect the presence of JD DNA in faeces. It is more sensitive than a blood or faecal culture, with quicker results – 2 weeks versus 12 weeks or more. Cannot be used as an official herd environmental test, or to do strain typing. About 45% of infected but clinically normal “carrier” cattle over 2 years old will be detected by the PCR. Some cattle will react at a low positive level if they have eaten contaminated pasture and the JD bacteria are just ‘passing through’. A PCR positive test makes the animal and the herd SUSPECT.

First sample $300+ $15.00 thereafter.

Any animals or groups of animals that test positive to an ELISA or PCR test should be tested again with a definitive test to confirm the result. ELISA and PCR reactors are tested by individual faecal culture or by a post-mortem examination, microscopic examination of the gut tissue (histopathology) and possibly culture of gut tissue (especially if there is a possibility that sheep strain is involved). These tests detect the actual bacteria or the characteristic microscopic changes that they cause. An animal that is positive on histopathology requires tissue and /or faecal culture to strain type Johne's disease. If the strain type is Cattle strain, (C strain, the animal, has an INFECTED status.

Postmortem fee by private vet plus $150.00 to $250.00

Milk ELISA Test

Faecal Culture

Pooled faecal culture

Post mortem and histopathology with or without tissue culture

Factor in freight fees, vet fees to collect samples, if required.

Factor in freight fees, herd recording or vet fees to collect samples if required.

Factor in freight charges, vet fees to collect samples, if required.

What testing options are there for BJD? BJD tests detect the actual bacteria or the body’s response to their presence. Animals are tested in two stages – screening tests of large numbers and follow-up tests of reactors. See www.animalhealthaustralia. com.au for further information on testing. Talk to your vet about testing options. Approved tests are described in the: BJD Standard Definitions, Rules and Guidelines for the control of cattle strains of Mycobacterium paratuberculosis in cattle and for goats, deer and camelids. (SDR&G’s 8th edition) Approved tests for each species, current at the time of publication, can be found in Appendices 1–4, while users should refer to the ANZSDPs (www.scahls.org.au) for the most up-to-date information.

Conclusions

Factor in freight charges, vet fees to collect samples, if required.

Generally this test is not available yet, it is still going through the approvals process.

Depending on how many slides examined by pathologist, and whether tissue culture is required.

It is worthwhile for beef producers to work towards keeping BJD out of their herds, and to protect their BEEF ONLY or MAP assurance rating. And it’s worthwhile for dairy producers to manage the risk of introducing BJD or work to limit production loss in the herd if already infected. Testing for BJD requires large numbers of animals to be screened, with no individual test 100% accurate on clinically normal “carrier“animals. Do not depend on testing individually introduced animals to keep BJD out of your herd. The vendor’s herd status (eg Beef Only, MAP, Dairy Assurance Score) or whole herd testing techniques are a better option. If you have not had BJD diagnosed previously and you see weight loss and scouring in cattle over 24 months of age, have testing done. You will need to take action early to limit the production losses in your herd and you certainly don’t want the embarrassment of having infection traced back to your herd if you keep trading without knowing your status. Source: Debbie Grull Vet Officer, DPIPWE and Kim Haywood, TFGA Policy Advisor – Commodities

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Test

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Available tests for diagnosing Bovine Johne’s Disease include the following:

(NB all prices are an indication only and may change for a multitude of reasons such as lab/vet/freight carrier etc. www.tfga.com.au • june 2013 voice

brigid morrison, TFGA policy advisor - environment

Reducing nitrous oxide emissions, nitrogen application and maintaining production using sensor technology Research being conducted by the Tasmanian Institute of Agriculture promises a real chance to reduce nitrous oxide emissions whilst maintaining production.

warming. It also destroys stratospheric ozone, which protects the planet from harmful ultraviolet rays1. It acts quite differently to CO2 in the atmosphere in the way that it traps heat at a different wavelength to CO2 . So it has its own role to play in the global pursuit of reducing emissions.

Nitrous oxide (N2O) is a naturally occurring gas. It is a byproduct of the nitrogen cycle which is one of the fundamental natural cycles that maintains all life on earth. It involves the recycling of the essential plant nutrient nitrogen, by fixation from the atmosphere (from lightning strikes) and the soil, through plant roots. The plants are then consumed by animals to support their metabolism, and are excreted and returned to soils. Here it is worked on by soil bacteria to incorporate it back into the soil and support further plant growth and some is converted back to a gas, and into the atmosphere for the process to occur again.

Limiting nitrous oxide emissions is therefore necessary to reducing all greenhouse gases and lessening global warming. However, intensive livestock pasture production is vital to supporting human health and well being now, and into the future. To address this, a vast amount of research is being conducted toward reducing N2O emissions, and there will be opportunities under the Carbon Farming Initiative to earn carbon credits in the process. However, the methodology is still around 3 -5 years away, but fortunately

After carbon dioxide and methane, nitrous oxide (N2O) is the most potent greenhouse gas, trapping heat and contributing to global

voice • june 2013 • www.tfga.com.au

James Hills at the Tasmanian Institute of Agriculture (TIA), is leading research into nitrous oxide emissions reduction by improving nitrogen use efficiency in intensively grazed pasture systems. It involves investigating the adaptation of common broadacre precision farming technology into intensively grazed pasture systems. Using the concept derived by New Zealand based agricultural innovator Craige McKenzie, it will ground truth the validity of the “Smart N” system which was originally designed to differentially apply herbicides by switching of nozzles when sensors on the boom were not detecting weeds. This project will essentially reverse the application because the sensors will detect increased biomass and other indicators of high nitrogen from livestock urine and manure. In intensively grazed dairy pastures, up to 30% of the paddock area has been measured as high N patches from the previous 2-3 grazings. These patches which are the result of urine deposits, generally contain 800-1000 kg/N/ha, and as a result are not responsive to any N applied at commercially used rates. With up to 30% of the paddock potentially not requiring N, the opportunity exists to

The nitrogen cycle in agriculture 1. Nitrogen fixed by lightning (falls in rain) and nitrogen fixing bacteria in legumes. 2. Nitrogen-based fertilisers applied to pasture or crops. 3. Nitrogen taken up by pasture, crops and trees. 4. Nitrous oxide released through volatilisation of urea fertiliser. 5. Nitrous oxide released through process of denitrification. 6. Nitrogen loss through runoff and leaching from fertilisers and nitrification process in soil.

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Humans have accelerated the delivery of nitrous oxide back to the atmosphere through the intensification of the natural cycle in our quest to feed an expanding global population by adding nitrogen to soils to increase production. In order to feed the population, the return of nitrogen to agricultural soils is essential to maintain production, but this stimulates microbes in the soil to convert nitrogen to N2O at a faster rate than normal. The Cape Grim Baseline Air Pollution Station in Tasmania, where air samples have been collected since 1978, and ice core analysis from Antarctica, show that nitrogen-based fertiliser is largely responsible for the 20% increase in global atmospheric nitrous oxide since the Industrial Revolution.

the work is being done in Tasmania so it will be suitable for Tasmanian conditions.

Small scale calibration and validation trials are about to begin at the TIA Dairy Research Facility at Elliott in North West Tasmania to help answer some of these questions. Urine samples will be applied in strips in a paddock which has been recently cut for silage to ensure that there will be no recent urine patches from grazing animals. “We will be testing the small boom at different sensitivity settings across these strips every couple of days to see when and what is registering” James said. Once the most appropriate calibrations have been determined using the small scale

Reducing the amount of N applied not only provides the farmer with the opportunity for lower fertiliser input costs, but there is also the benefit of less leaching or volatilising of N into the environment. Reduced N concentration in the pasture will also lead to reduce greenhouse gas emissions from animals grazing the pastures, which is one of the main aims of the project. Another application for the technology is to use the weedseekers in their conventional configuration to apply nitrification inhibitors to only the N rich urine patches to reduce the loss of nitrate N to the environment from these areas. This concept will not be investigated within the scope of this project but has potential for future application. Nitrification inhibitors such as DCD have been too expensive to apply to dairy pastures in the past, but with this

Sensor technology can be used to reduced on farm costs and provide big environmental benefits locally and globally (Dr James Hill, TIA)

technology allowing applications to be targeted to only the high N zones within the paddock, the cost of inhibitors would be significantly reduced. The project will run demonstrations over the next two summers on irrigated pastures, with at least 3 grazing rotations having N applied using this technology. To view a short video of the “Smart N” concept, go to, www.youtube.com/ watch?v=bYpA0gQG5CI Written by Brigid Morrison (TFGA), and James Hill (TIA) Thanks to James Hill at the Tasmanian Institute of Agriculture for assistance in the preparation of this article. 1. http://newscenter.berkeley.edu/2012/04/02/ fertilizer-use-responsible-for-increase-in-nitrousoxide-in-atmosphere/

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While the concept has been demonstrated on a small scale, this project aims to validate the use over larger areas, and to discover any pitfalls in the practical adoption of this technology. “There are still many unanswered questions that need to be resolved” said James Hills, the project leader on the Tasmanian side of the project. “We are still unsure of the sensitivity of the weedseeker sensors , and if they will pick one, two or three grazing rotations worth of urine patch. We would also like to determine how soon after a urine patch is deposited before it will be detected.”

boom, larger demonstrations will begin. 2 x 6m demonstration boomsprays will be set up with weedseeker sensors and these will be used to run demonstrations on 4 paddocks in Tasmania and 3 in Western Australia. Total pasture biomass will be measured at all locations, with the assumption being that there is no significant difference in the level of pasture production between conventionally fertilised treatments (blanket N applied) and those fertilised with the reduced amount of N.

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reduce N applications, but until this concept was developed in New Zealand, there was no practical way of actually applying N between the urine patches.

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www.tfga.com.au • june 2013 voice

nick steel, TFGA policy & advocacy manager

Policy and advocacy update

The purpose of the annual report is to provide information about the output groups (branches) that sit under the multi-layered department. Just to remind you, the output groups that make up DPIPWE, include: • Information and Land Services – land titles, survey and mapping, plus Service Tasmania (yes Service Tas sits with DPIPWE); • Primary Industries – agriculture and marine; • Resource Management and Conservation – land management and conservation (flora and fauna); • Water Resources – resource management and assessment; • Policy – including advice; • Biosecurity and Product Integrity; • Environment Protection and Analytical Services – environmental and pollution control; • Parks and Wildlife Management – includes crown land services; and • Heritage – historic, aboriginal and Royal Tasmanian Botanical Gardens. Contained within the annual plan, there are some interesting facts and figures highlighted, which show the continuing good work farmers are undertaking for their business, environment and community, but also demonstrates some of the regulatory imposts placed on farmers. DPIPWE conducts water quality monitoring twice a month at 47 sites for 18 pesticides and herbicides in accordance with the Agricultural, Silvicultural and Veterinary

Chemicals Council (ASCHEM) Plan on chemical usage. The outcome of these tests showed that farmers are continually doing the right thing by using the chemical label correctly. There were no water samples where chemicals in waterways exceeded the national guidelines. An area where farmers are undertaking public good is through private land covered by voluntary conservation agreements, which means locking up land for the benefit of the environment. The cumulative total for reservation was 88,000ha in 2011/12. That represents 1.3% of the state’s total area. As many farmers would be aware, there is a requirement to undertake a propertybased game management plan to enable landowners to consider the different options to control wildlife on their property. In 2011-12, there were 3,715 property based game management plans for use on private land (this includes existing and new plans). The ABS says there are 3935 landowners in Tasmania, so this equates to 95% of landowners having undertaken a game management plan to control wildlife on their private property. Even with a high amount of game management plans being issued, the level of 1080 usage has declined from 0.93kg to 0.42kg in 2011-12. The view of government is to phase out 1080 use by 2015. However, the big issue here is that despite the government funded 'Alternatives to 1080 Project', no new and viable alternatives to 1080 have been found. The TFGA believes farmers should be able to access different options to control browsing animals, including fencing, shooting and the use of 1080. There are areas that the government can do it better. The first example is in the area of fuel reduction burns on public land where the primary objective of the burning can be categorised as either asset protection, strategic fuel management or ecological.

The target hectares planned for 2011/12 was 10,000 hectares – the actual area covered by fuel reduction burns was only 1,927 ha. Even with weather being a contributing factor to the lack of area covered DPIPWE have fallen well short on expected fuel reduction burns. That’s simply not acceptable. Secondly, the number of crop protection permits is rising due to the amount of damage birds are causing to crops. The permits are expensive and time consuming. We believe farmers should not have to get a permit every time they need to minimise crop damage by nuisance birds. TFGA has repeatedly raised this issue with government through our submission to the State budget consultation 2013/14. We’ve suggested there needs to be extensive data collection to assess the incidence and magnitude of losses as well as to undertake research into relevant courses of management and actions. There is no doubt DPIPWE has many branches to manage and that some fit better with others within the department. TFGA is trying to work with them across this landscape to get the best outcomes for our members. The department does undertake services for the agricultural sector and it is up to TFGA to ensure these services are assisting our farmer members. In regards to regulation, we believe the government can do it better through consulting appropriately so that the regulation drafted is workable for all involved. The TFGA seeks a commitment from government to join in a partnership approach on issues of strategic importance to the farming sector - it is as easy as just picking up the phone. The DPIPWE annual report for 2011-12 provides an insight into what this department does, but also highlights areas where it can do better.

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voice • june 2013 • www.tfga.com.au

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If you have time (or maybe are not sleeping that well) I recommend you read the 2011-12 Annual Report for the Department of Primary Industries, Parks, Water and Environment (DPIPWE).

andrew heap, TFGA policy advisor - economics & trade

The future of rural enterprises in the global food chain

These include the impact of the high $A on commodity returns, unforeseen low commodity prices and, in Western Australia and Queensland right now, a serious drought that is cutting grain and livestock income and placing enormous financial pressures on farming viability. Although these circumstances are not new to most farmers, it is worth noting that the number of farms in Australia has declined by about 3.5% in the last 10 years to 137,000. This follows a long term trend that has seen a decline from around 200,000 farming families in the late 1950s. Perhaps harder to fathom is that this trend is the price paid by farmers for being increasingly good at producing food and fibre - but having to share what should be higher reward for their effort and income with consumers who are paying ever lower prices for it. This is because farmers are at the front end of the supply chain and often in a weaker competitive position; so they receive what income is left after every other player has taken their cut. Mazzarol observes that the capacity of farmers to address this balance and get a fairer share is becoming less and less. He demonstrates the problem by what is referred to as the ‘agriculture sector supply chain funnel’, whereby there is a “choke point in the area of buying desks that are increasingly no longer in farmer or government control”. This is shown in the diagram below. Although the model was developed based on European observations, Mazzarol believes

Stages in the value chains

Supply Chain Funnel in the Agrifood Sector

Farmers and Greenhouses Semi-manufactured Suppliers

it applies broadly around the world. He suggests that the “choke point” is becoming narrower still with greater concentration of buyer ownership in fewer and larger retailing businesses which increasingly dictate quality, time of purchase and price of food in a global context. An example of what he is saying can be seen in a recent comment by Ian McLeod, CEO of Coles when he said that "consumers have more to save yet because we can buy cheaper out of Asia". He was mainly referring to Coles' label product and simply ignoring the cost and regulatory environment in which Australian farmers operate. In the face of the above and resultant price pressures, the broader, well worn agriculture sector response is for farm enterprises to expand their area of production, develop new or additional crops or pastures, or grow larger via amalgamation of farms and value-add produce. In most cases, these approaches will lead to a substantial increase in debt. According to IBIS Research, little more than 2000 farms are responsible for 40% of farm sector production in Australia. For the fewer larger farms that make it, this is fine; but it leaves many small growers with little alternative but to find niche markets to stay in business. However, finding and supplying niche markets involves significant time, cost and market development expertise. Many of the smaller farming enterprises can’t afford this investment, and they disappear, along with their place in, and contribution to, the regional community. Mazzarol asks whether it is time to have another look at the co-operative model which the evidence in Europe suggests can enable smaller producers to compete on a larger scale – in production processing, product development, brand maintenance and distribution.

Number of Actors > 1.7 million > 108,000 > 25,000

Buying desks

Banners

420

Supermarkets

> 30,000

Shoppers

> 110 million

Consumers

> 278 million

voice • june 2013 • www.tfga.com.au

choke point

At this suggestion, a few readers may be prompted to flick to the next story. However, as a former marketing manager of Pivot and Norco for the best part of 12 years, I believe co-ops still have a role to play - despite this business model being seen by many as out-dated. This changed attitude through the 1980s indirectly condoned shameless stripping of assets built up over many years by farmers, by sharp businessmen and this resulted in many co-ops disappearing. At that time, the negative attitude towards co-ops seemed to be on the same level as that towards statutory marketing boards – slightly anti free market, limited in their capacity to raise capital (for growth) and banker resistance to lending based on historical (rather than traded) share valuation. These concerns seemed to take priority over farmer driven collective business building, product value-adding, market intelligence and industry input and output competitiveness. In contrast to the Australian farming sector, in Europe and in the US, co-ops continue to thrive in supplying key inputs (fertiliser, materials), services (finance and transport) and outputs (dairy, fish) on behalf of their grower – owner members. Medium term supply competitiveness, building on the efforts of past generations is seen to take priority over reduced earnings due to cyclical downturns and nature. However, being realistic, when you live with farm sector capital always being tight and you know that agriculture earnings are rarely above those of competing investments, are there really serious alternatives to collective effort if the aim is to build an agricultural production and service business that delivers critical (competitive) mass? In this context, it must be considered doubtful that organisations such as Wesfarmers, which started as a fertiliser manufacturing co-op (CSBP) would exist today without collective farmer effort and funding to start it. This is a separate question from whether the model had outlived its usefulness given the future direction of the business. It seems a little ironical that a substantial loss of the co-op model from Australia’s supply chain landscape may actually be contributing to a faster rate of small farmer exit than would otherwise be the case. https://theconversation.com/the-future-of-ruralenterprises-in-the-global-food-chain-13759

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Winthrop Professor Tim Mazzarol at University of WA, writing in “The Conversation”, reminds us of the never-ending competitive challenges that face medium and smaller farmers.

P M rou th ajo d t e 20 r Di o be 13 nn t TF er S he O GA po ffi Co nso cia nf r f l er or en ce

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mel king, TFGA policy advisor

Industrial relations update National annual wage review case

that many industry sectors are currently experiencing - particularly agriculture.

We have also asked that the Fairwork Commission take into account the increase to the superannuation guarantee from 9% to 9.25% on July 1 this year when making its determination. The rise in the superannuation guarantee in July equates to an increase of $1.50 for those being paid the national minimum wage. The submission recommends a wage increase of $7.50 per week – this equates to a wage increase of approximately 1.24%. The wage increase awarded in 2012 equated to 2.9%, and in 2011 it was 3.4%. As you can see, the NFF recommended increase for this year is relatively modest and we think it strikes the right balance between protecting vulnerable workers, accounting for the increase to the superannuation guarantee and acknowledging the financial pressure

Hiring a new employee It is good practice to provide all new employees with a letter of engagement and keep a signed copy for your records and provide a copy to your new employee. The following are essential terms that should be included in an employment contract: 1. The name of the employer. 2. The title of the job to be performed by the employee (also a brief job description is advisable). 3. The commencement date of employment. 4. The basis for employment, e.g. ongoing, casual or fixed-term. 5. The employee’s remuneration and how it is made up. 6. The name of any Modern Award and classification that the employee will be paid under (eg Pastoral Award and classification FLH 3) 7. Any period of probation that has been agreed. 8. The notice that is required to be given to end the employment relationship.

In addition, it is advisable to include the following terms: 1. A provision clarifying the status of any business/company policies (eg smoking policy). 2. Any agreement to average hours. 3. A provision to enable over-award payments (ie the amount representing the difference between the statutory minimum wage and the actual wage paid to the employee) to go towards non-wage monetary entitlements, eg overtime, penalties. 4. A provision dealing with the effect of changes to the employee’s role on the contract (eg a change of duties). Employers also must give every new employee a copy of the Fairwork Information Statement. A copy of this document can be downloaded from either the TFGA or Fairwork websites or obtained by phoning Mel King on 6332 1800. For advice relating to tax and super obligations, you should contact the Australian Tax Office (ATO) on 13 28 66. If you have internet access, the ATO has a number of tax calculators along with general advice on tax and superannuation obligations on their website www.ato.gov.au

FREE FARM SAFETY TALKS

Rural Code of Practice: What you SHOULD know about farm safety Do you know what risks are involved when you, a worker Q&A with speakers - BYO questions - Lucky door prizes or family member does a potentially hazardous job on Farm safety is EVERYONES responsibility. your farm? Session leaders will include: A Farm accidents mean medical costs, down time, A Keith Rice from Primary Employers Tasmania damaged equipment, crop losses, and compensation A Neale Buchanan from Workplace Standards Tasmania of the injured worker. A Phill John from WorkCover Tasmania A Come, hear and share practical ways to manage A Representatives from the Dairy, Poppy and Vegetable exposure to risks and provide a safe workplace for industries those working on your farm.

Dates and locations

Thursday 18 July

Friday 19 July

Monday 22 July

Tuesday 23 July

Scottsdale LINC 51 King Street, 12pm-2pm, Lunch provided

Longford Town Hall Wellington Street, 12pm-2pm, Lunch provided

Swansea Town Hall Franklin Street, 12pm-2pm, Lunch provided

Richmond Town Hall 54 Bridge Street, 12pm-2pm, Lunch provided

Launceston, Country Club Tasmania Prospect Vale, 4pm-6pm, Supper provided

Campbell Town, The Grange 87 High Street, 4pm-6pm, Supper provided

Bothwell Town Hall 19 Alexander Street, 5pm-7pm, Supper provided

Hobart Wrest Point Casino 410 Sandy Bay Road, 4pm-6pm, Supper provided

Wednesday 24 July Huonville Council Chambers 40 Main Street, 12pm-2pm, Lunch provided

Thursday 25 July Smithton Community Recreation Centre 71 Nelson Street, 12pm-2pm, Lunch provided East Devonport Recreation & Function Centre Caroline Street, 5pm-7pm,

Supper provided

We look forward to seeing you there!! Register: www.workcover.tas.gov.au or www.worksafe.tas.gov.au 20

voice • june 2013 • www.tfga.com.au

For information phone: 1300 366 322

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The annual wage review period has rolled around again and the NFF has lodged a submission on behalf of its members, including the TFGA. The submission acknowledges the need for a wage increase but asks that it be balanced against the needs of business in the current economic climate.

g o l b spot

We all know that many people in cities know very little about where their food comes from. At the same time, it is clear that there is a growing interest in what actually happens on farms. More and more farmers and people who work in the agriculture industry are using social media channels to share their views; and to explain the things that we all take for granted. Each month, we’ll be presenting comment from one of these authors.

By David Leyonhjelm http://www.theland.com.au/blogs/agribuzz-with-david-leyonhjelm/clean-greensmokescreen/2654535.aspx?storypage=0

Some people like to think that Australian agriculture is clean and green, which they believe translates into market opportunities. Others insist that Australia as a whole can claim no such position, but Tasmania can. Across the ditch, the Kiwis argue that Australia is neither clean nor green, but New Zealand is. It even forms the basis for their tourism advertising. In fact, there are thousands of claimants to the term, in Australia and around the world, and not all of them relate to food or agriculture. A program in Los Angeles, California, for “off track” school students gives young people environmental work experience to teach them the value of “staying in school, preparing for college and giving back to their communities.” The program is known as Clean and Green. In Pennsylvania, USA, the state government offers tax credits to rural property owners who adopt its criteria for protection of farmland, forest land and open spaces. The program is also known as Clean and Green. The Singapore government has a program which aims to “inspire Singaporeans to care for and protect our living environment by adopting an environmentally-friendly lifestyle". Yes, it’s called Clean and Green. Any number of food markets lay claim to

the term, and hundreds of businesses have latched on to it as well, from a company with exclusive Australian distribution of Charlie’s Soap products, called Clean and Green, to a carwash in Albany, WA. Yet as far as I know there is no convincing evidence that Tasmania, Australia, New Zealand, Pennsylvania, Singapore or any other state or country has achieved any advantage as a result of claiming to be clean and green. There are plenty of anecdotes of course, and naturally some people say they are influenced by it, but that’s not reflected in what they do. The evidence suggests, at most, consumers will avoid products from countries they regard as the opposite of clean and green, like China. In fact, the only people who seriously believe the claim has a positive impact are the ones using it themselves. It’s called believing your own propaganda. Perhaps that’s why the experts in propaganda, politicians and regulators, are generally willing to impose regulations based on the assumption that it is meaningful. The Tasmanian and New Zealand governments, for example, justify refusing to allow the cultivation of genetically modified crops or the use of hormone growth promotants in cattle on the grounds that it would undermine their clean and green image. Citing the same reason, they have also both introduced legislation to ban the use of battery cages in egg production and sow stalls in piggeries. It’s not hard to envisage it being used to ban four-wheel drives and trail bikes. This highlights a common problem in agriculture - the tendency to regulate rather

Tasmanian Farmers and Graziers Association

Policy Forum, Dinner, AGM and Field Trip 11th - 12th july 2013 country club tasmania, launceston

than leave it to the market. You want to be seen as clean and green? We’ll pass a law. It’s all in a good cause, like legislating virginity. As always, there are consequences. Tasmanian and New Zealand producers are forced to endure the regulations imposed in support of the clean and green mythology irrespective of whether they personally subscribe to it. Beef producers are at a disadvantage relative to producers elsewhere due to their inability to use growth promotants, while farmers who grow canola are unable to take advantage of the productivity benefits of GM varieties. And of course consumers are compelled to pay higher prices for eggs, irrespective of their attitude to cage production. Clean and green is a marketing device just like fresh, new, bigger and, as I discussed recently, provenance. It may be successfully claimed by individual producers or perhaps even groups of them, but it should never be forced on a whole state or country. It is not a big step from compelling producers to conform to forcing consumers to buy. I believe more people are willing to buy a product because it is labelled "made in Australia" than because it comes from somewhere that describes itself as "clean and green". And even then, most of those who say they prefer Australian made do not buy Australian made. There are a lot of myths surrounding that too. David Leyonhjelm has been an agribusiness consultant for 25 years. He may be contacted at reclaimfreedom@gmail.com

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'Clean green' smokescreen

don't miss out, registrations close june 28 Visit www.tfga.com.au to register

www.tfga.com.au • june 2013 voice

advertorial - ANZ

Eating an apple a day might keep the cardiologist away A US study has found consuming an apple a day for four weeks lowers blood levels of ‘bad’ cholesterol by 40 percent in healthy, non-smoking middle-age adults. According to researchers, apples lowered blood levels of oxidised low-density lipoprotein (LDL), the ‘bad’ cholesterol linked to hardening of the arteries. When LDL cholesterol interacts with free radicals to become oxidised, the cholesterol is more likely to promote inflammation and can cause tissue damage. Lead researcher Robert DiSilvestro said the study revealed a tremendous effect against LDL being oxidised with just one apple a day for four weeks. “The difference was similar to that found between people with normal coronary arteries versus those with coronary artery disease,” he said. Sixteen participants ate a large red or golden delicious apple for four weeks; 17 took capsules containing 194 mg of polyphenols a day for four weeks; and 18 took a placebo containing no polyphenols. The researchers found a similar but smaller effect on oxidised LDLs in those taking plyphenol capsules and no effect in those taking the placebo. DiSilvestro described daily apple consumption as significantly more effective at lowering oxidised LDL than other antioxidants he has studied, including the curcumin, green tea and tomato extracts. Disilvestro said the study also found eating apples had some effects on antioxidants in saliva, which has implications for dental health. *Fruit & Vegetable News- Issue May 2013

Carbon, water and food on the agenda A research centre looking at food production and land management issues has been launched in Sydney. The $20 million Centre for Carbon, Water and Food has been funded by the Federal Government and the University of Sydney to examine Australia’s greatest food security and environmental challenges. The aim is to help ensure Australia’s future food security and ability to remain resilient in the face of future climate volatility. The Centre has already signed two agreements with Chinese institutions. These follow a December 2012 Department of Foreign Affairs and Trade report Feeding the Future which identified China and Australia as potential productive partners to ease growing pressure on food supplies. *Fruit & Vegetable News- April 2013 Issue

voice • june 2013 • www.tfga.com.au

China is Australia’s largest agricultural export destination, and it is also estimated to be the largest consumer of food and beverages in the world. A major market opportunity for Australian producers lies with the growing number of affluent urban households in China, according to the latest ANZ agricultural research paper, "Feeding the Dragon: The Modernisation of China’s Food Industry". "Australia’s proposition in capturing the Chinese premium food and beverage sector is the underlying quality and reliability of our food and agricultural products. This is particularly relevant to Tasmania, as a clean, green, reliable source of produce," ANZ Regional Executive, Tasmania, Chris Sparks said. "Our target consumers in China have higher incomes, and spend up to five times more on products such as dairy, seafood and meat compared to the lowest income brackets. The key for Tasmanian exporters will be to determine what customers in emerging markets want and then making sure we’re well positioned to provide them with the right product, at the right time, to the right place." The report outlines that farmers, processors and marketers must understand the preferences of these new consumers and the distribution channels they use to source their food, if Australia is to capture the food opportunity in China. Relationships are an important part of being hooked into the right channels in Asia, and in recent times many important Tasmania-based stakeholders, including state government and industry representatives, as well as ANZ staff, have visited parts of Asia to strengthen these ties. "Our super regional strategy means we have people on the ground in 28 markets across Asia Pacific. Our customers benefit from our local relationships, agribusiness expertise and super regional connections, which can help open up the right doors, in the right places across Asia Pacific," Mr Sparks said. "Our partnership with the TFGA also enables ANZ agribusiness managers to stay ahead of issues that impact agriculture in Tasmania, which means our customers benefit from having more knowledgeable bankers who understand the current conditions. "We are currently witnessing a more rapid change in our end export destinations for packaged and fresh food than we could have imagined a decade ago. China’s

demand for food imports from Australia has generated significant opportunities for exporters," Mr Sparks said. But the report also finds that there are key differences in the Chinese market compared with advanced economies. It estimates that only around 15% of food, meat and vegetables in China are transported via the cold chain, compared with 90% in more developed countries. "Outside major metro areas, cold chain distribution is still unreliable. An improvement in cold chain distribution provides significant opportunity for Australian food and agribusiness," Mr Sparks said. He said the Australian industry would need to develop new methods for managing sales to new regions, breathing new life into the agricultural sector. "The Australian agricultural industry is being presented with an opportunity it hasn’t seen for some time. We are optimistic that with good pre-farmgate management, on farm management, and post farmgate activities, the sector can really outperform," he said. Tasmania will be a key beneficiary of this expanding market. "For example, the growth in global demand for dairy products is extraordinary. We see significant potential for Tasmania to capitalise on these opportunities. For China alone, Dairy Australia reported dairy imports grew 26 per cent from 2011 to 2012," Mr Sparks said. "There are also significant opportunities for Tasmanian dairy farmers to benefit from value-adding. Over 90% of the milk produced in Tasmania is manufactured into dairy products such as cheese, butter and milk powders, so the export market remains critical. "Tasmania has a fundamental advantage in terms of water availability and more natural sunlight during critical growing times with these assets there is a certain level of comfort looking into the future. "We’re very optimistic about Tasmania’s outlook, particularly over the medium to long term. The state is being drought proofed so we see enormous potential for both Tasmanian producers and their ability to supply the Asian food market. Combined with the top quality food and agricultural products, Tasmania is positioned well to make the most of the growing demand for quality food." Chris Sparks - ANZ Regional Executive, Tasmania,

Connect with our global industry experts. It will make a world of difference.

ANZ has the largest Asian footprint of any Australasian Bank. We can help connect your business across Australia, Asia Pacific and to 32 global markets. Enjoy the resources of a truly regional bank with the assurance of a trusted Australian partner. To connect with an Agribusiness specialist, contact Chris Sparks, Regional Executive, Regional Business Banking, Mobile: 0411 235 791 or visit anz.com/agri.

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