The National Farmers Federation has voiced serious concerns about speculation of proposed cuts to the current rebate farmers and graziers can claim for off-road use of fuel, under the Fuel Tax Credit Scheme.

Under the Scheme, the Government provides a rebate of the excise and customs duty paid on certain fuels purchased for specific off-road uses.

NFF president Brent Finlay said that given the substantial benefits the agriculture industry provides to the economy, what the Government should be doing is looking for ways to reduce costs and make agriculture more competitive.

“Agriculture has been identified by the Government as one of five key pillars of the economy. Cutting the rebate would be like biting the hand that feeds and clothes the nation,” Mr Finlay said.

“While industry understands the fiscal position leading up to the Federal Budget, we would be surprised if the Government were seriously considering cuts to the rebate.

“Industry has already done its share of ‘heavy lifting’ through economic rationing. Any move to cut the fuel rebate would fly in the face of the Government’s stated commitment to the industry profitability and competitiveness,” Mr Finlay said.

Over the last 30 years the agriculture sector has increased productivity and achieved this with a reduction in farm support. The sector receives the lowest level of government assistance of all OECD countries. Further, the Government has commissioned a White Paper with the stated aim of improving competitiveness of the sector and farm-gate returns.

The current design of the Fuel Tax Credit Scheme goes some way to maintaining industry’s competitiveness. The fuel tax helps fund upkeep and maintenance of the nation’s road network, and Australian farmers only receive the excise rebate for fuel used off-road.

“Put simply, the rebate ensures that farmers are not being taxed for road-use when they are not using our roads. It covers fuel used for activities such as irrigation and harvesting. Even a minor cut in the rebate could have substantial impacts on farm businesses,” Mr Finlay said.

“Beyond farming, the rebate is available to industries, businesses and communities using fuels for generating energy where there isn’t ready access to a commercial supply of electricity.

“Cuts to the rebate would not only be detrimental to agriculture’s contributions to the Australian economy, but would further exacerbate the inequity in cost for those living and working in regional Australia,” Mr Finlay said.

Source: NFF

• Click here to access beef Central’s Top 25 Livestock Transporters list.

More calves, an extra $116 per head for steers during severe drought and delayed supplementary feeding by one month are just some of the improvements beef and sheepmeat producers in the inaugural Meat & Livestock Australia (MLA) Challenge have achieved in the third quarter of the competition.

Windorah beef producers Andrew and Megan Miller’s decision to wean early resulted in greatly improved condition in their cows for joining, and the Millers expect the decision to result in up to 60 extra calves on the ground at the next calving.

In spite of the drought conditions, the Millers also added $116/head value to their sold feedlot steers, thanks to detailed planning and assessment of the starting value, feed price, daily weight gain and likely sale price.

“The difference now that we are part of the MLA Challenge is that we’re improving our skills required to farm in an extremely variable climate,” said Mr Miller.

“We are making more informed decisions after finding the information we need, talking each major decision through with our mentor, and then committing to it. We feel in control, able to consider our options and make choices, even when the conditions are unfavourable.”

Their achievements have seen the Millers lead the third quarter of the MLA Challenge, the results of which were announced today. They were followed by sheep producers John and Annie Ramsay from Bothwell, Tasmania; sheep producers Marcus and Shannon Sounness from Amelup, Western Australia; beef producers Matthew and Angela Pearce from Adelong, NSW; beef producers Bill and Georgia Wilson from Edi Victoria, and beef producers Lachlan and Anna Hughes from Dulacca Queensland.

All six participating producers have seen improvements in their businesses since joining the MLA Challenge which has focused on improving their management skills and using tools and evidence as the basis of decision-making.

In Victoria, Bill and Georgia Wilson used MLA tools including the Feed Budget and Rotation planner and Feed Demand and Stocking Rate calculators to carefully manage and monitor their grazing.

“Using the MLA tools meant we were able to delay supplementary feeding by at least a month, which is a huge saving to our business,” said Mr Wilson.

In Western Australia, Marcus and Shannon Sounness worked with their MLA Challenge mentor to improve human resource management so they can attract a stable labour force before expanding their livestock enterprise.

“We have developed clear roles in the farm business, based on our individual skills, and now the whole family is on board with the business plan and working for the same outcomes,” said Mr Sounness.

MLA’s General Manager Livestock Production Innovation, Peter Vaughan said that the third quarter of the MLA Challenge has seen the six families make the most of the information, tools and resources available to them, along with the advice of their mentors, to plan and make business decisions.

“Three quarters of the way through the competition, the Challengers are really appreciating that while they can have little influence on the end prices, they do have significant scope for reducing their production costs,” he said.

“The judges are very impressed with the way that all six participants are planning and working through their decisions, based on the evidence and information available to them. All producers have improved their skills in measurement, tracking and analysis, and their efforts are paying off.”

The MLA Challenge is supported by Woolworths, Westpac Agribusiness and Qantas. For more information about the MLA Challenge, the six farming families involved and the resources they are using, visit www.mla.com.au/challenge.
 

Source: Meat & Livestock Australia

For the week ending 29 April 2014, rainfall was recorded in all states and territories.

Scattered thunderstorms and showers associated with a broad area of low pressure and a mid-level trough formed over the Gulf of Carpentaria and in northern Queensland, generating isolated moderate to heavy falls at the beginning of the week. A cloudband with ded showers and thunderstorms over the Tasman Sea from a cold front moving through the area also brought some locally heavy falls. Thunderstorm activity continued over the Gulf of Carpentaria later in the week, associated with a tropical low and active low pressure trough over the Arafura Sea. The passage of a surface trough over Western Australia extended a cloudband from central Western Australian into the Great Australian Bight, and a frontal cloud band crossed Tasmania and Victoria bringing cold, unstable air and thunderstorms in its wake. At the week's end, a line of thunderstorms moved across the Pilbara coast of Western Australia, with some isolated moderate falls. Light onshore airflow over the New South Wales coast generated light to moderate falls near the northern New South Wales coast, and a small area of middle-level cloud with ded thunderstorms over southeast Queensland was due to an upper-level low pressure system moving into the area.

Rainfall totals over 100 mm were recorded in northeast Arnhem Land and locations around the Gulf of Carpentaria, the tropical north coast of Queensland and along parts of the Pilbara coast of Western Australia. The highest weekly fall was 258 mm recorded at Centre Island in the Northern Territory. Falls between 25 to 100 mm were recorded in western Tasmania, southwest Victoria, the southern coast and the North West Pastoral district of South Australia, along the west coast and southwest of Western Australia, across the north of Queensland and the Northern Territory, and along the east coast of Queensland and New South Wales. Falls between 10 mm and 15 mm were recorded in areas surrounding higher falls in the northeastern quarter of Queensland and the north of the Northern Territory, northern New South Wales, southern and western Victoria, remaining parts of Tasmania, most of central and southern South Australia, and much of southwest Western Australia.

Large areas of the Western Australian, North Territory, Queensland and southern New South Wales interior received little or no rainfall.

Highest weekly totals for each state

Source: Bureau of Meteorology

In an announcement lodged with the ASX this morning, the Elders Limited board has announced that former Wesfarmers Landmark managing director Mark Allison, who has been chairing Elders since the depature of Malcolm Jackman as CEO in November 2013, has now been appointed CEO and Managing Director of the organisation.

Mr Allison has resigned as chairman of the Elders board and has been replaced by former DuPont managing director Hutch Ranck, with James Jackson as Deputy Chair.

Mr Allison and Mr Ranck both have strong backgrounds in the cropping and crop protection industries. In a media release issued this morning Elders said that in appointing a new CEO with extensive agribusiness experience, it has taken another step to cement itself as a pure agribusiness.

The Elders announcement to the ASX reads as follows:

Elders Limited (ASX:ELD) advises that Mark Allison, who has been chairing Elders’ Executive Committee since the departure of the former CEO in November 2013, has been appointed Chief Executive Officer and Managing Director, effective 1 May 2014. Accordingly, Mr Allison has resigned as Chairman of the Elders Board.

Hutch Ranck has been elected independent non-executive Chairman by the Board. In addition, James Jackson has been elected Deputy Chairman.

Following an extensive recruitment process conducted by executive search firm Heidrick & Struggles which included internal and external candidates, the Board determined that Mr Allison was the best candidate for the CEO role. Mr Allison has extensive agribusiness sector and corporate strategy experience and has had close involvement with Elders’ operations over the last five months in chairing the Executive Committee.

Mark Allison was previously Chief Executive Officer of Grain Growers Limited and has also held CEO positions with Wesfarmers Landmark, Wesfarmers CSBP, Makhteshim Agan Australasia, and Crop
Care Australasia.

Chairman Hutch Ranck said, “the skill set Mark has demonstrated in his work over recent months with the executive team as well as his experience as the CEO of several successful rural businesses are
crucial attributes now that Elders is operating as a pure agribusiness.

“Mark has proven experience in driving organisation-wide improvement across key areas such as safety, operational performance and capital management and this aligns with the priorities the Elders Board set out to shareholders at the 2013 AGM.

“In particular, Mark’s experience in running a rural distribution network and his understanding of the opportunities and challenges facing the rural industry, both domestically and abroad, are highly relevant to Elders’ operations,” Mr Ranck said.

Mr Allison, who will be based in Adelaide, said, “I am honoured to take on the CEO role at Elders as the company continues its progress as a pure agribusiness.

“Elders is a company with an established branch network, an internationally recognised brand and market-leading positions in key product areas and geographies and we owe it to all our stakeholders to
perform to our potential and deliver real value.
 
“We will continue our focus on creating a culture that is values, safety and performance-based. We will strive to strengthen and expand our domestic retail, agency and financial service products and international operations. We’ll also continue to pursue our capital management and balance sheet improvement ives.

“I am mindful that Elders’ staff, clients, security-holders, suppliers and financiers have been through significant change and challenging times in recent years, but I am very encouraged by the progress we are now making towards our goals,” Mr Allison said.

Profiles on the new appointments:

Elders Chair: James Hutchison (Hutch) Ranck, BS Econ, FAICD

Non-executive director
Age 66 – Non-executive director of the Board since June 2008. He is also Chairman of the Elders Occupational Health and Safety Committee and a member of the Nomination and Prudential Committee, the Remuneration and Human Resources Committee, and the Audit, Risk and Complaince Committee. Hutch retired as Managing Director of DuPont (Australia) and  Group  Managing Director of DuPont  ASEAN in May 2010 .  In his 31 years with DuPont Hutch has led businesses in ANZ and Asia Pacific in Agriculture, Pharmaceuticals, and Industrial Chemicals.   In the last 10 years Hutch has served as a director in a variety of companies and organisations including, The Business Council of Australia, an Australian Government Statutory Authority -APVMA, The Chemical and Plastics Association –PACIA, and The Crop Chemical Association – Crop Life. From 2000 until 2010 Hutch was  a  member of the Prime Minister’s Science , Engineering and Innovation Council – PMSEIC. Mr Ranck is a resident of New South Wales.

Elders Deputy Chair: James Jackson

Age 51 - Non-executive director of the Board since April 2014. He is also a member of the Elders Remuneration and Human Resources Committee and the Occupational Health and Safety Committee. Mr Jackson has more than 25 years’ experience in capital markets and agribusiness, both in Australia and overseas. He held a Senior Vice President role with investment bank SG Warburg (now part of UBS) in New York and was a director of MSF Sugar Limited from 2004 to 2012, including being Chairman from 2008. Mr Jackson owns and operates a beef cattle enterprise in northern New South Wales and is a resident of New South Wales.

Elders CEO and MD: Mark Charles Allison, BAgrSc, BEcon, GDM, FAICD

Chairman
Age 51 – Appointed Chairman in June, 2013. Non-executive director of the Board since November 2009. He is also Chairman of the Remuneration and Human Resources Committee, and a member of the Occupational Health and Safety Committee, the Nomination and Prudential Committee, and the Audit, Risk and Compliance Committee. He has extensive experience spanning 25 years in the agribusiness sector. He is a former Managing Director of Wesfarmers Landmark Limited and Wesfarmers CSBP Limited. Prior to his appointment at Wesfarmers in 2001, Mr Allison held senior positions with Orica Limited as General Manager of Crop Care Australasia and with Incitec Limited as General Manager – Fertilisers. Between 1982 and 1996 Mr Allison performed a series of senior sales, marketing and technical roles in the Crop Protection, Animal Health and Fertiliser industries. Mr Allison was the Managing Director of Makhteshim Agan Australasia Pty Ltd from 2005 to 2007 and Managing Director and Chief Executive Officer of Jeminex Limited from 2007 to 2008. Mr Allison is a resident of New South Wales.

Source: Elders Limited

Latest listings on our recruitment page, Jobs Central:

• Operations Manager – National Livestock Reporting Service (MLA)
• Business Development Manager (AWX Agri)
• Plant/General Manager (Rimfire client)
• Qualified Butchers (Super Butcher)
• Chief Executive Officer (AuctionsPlus)
• Marketing Coordinator (Stanbroke)
• Livestock Officer (Wellard Group)
• Production Supervisor – Livestock Handling Equipment (Thompson Longhorn)
• Red Meat Consultant - Saudi Arabia (SALIC)
• Live Export Manager (Primaries, a Ruralco business)
• Animal Health – Territory Manager (Elanco)

To access Jobs Central, including full listings and job deions of these and other positions, click here.

THERE'S widespread recognition within the business world of the importance of human resources.

Somewhere in their mission statements and values, most companies claim that their employees are important, yet many fail to fully utilise the intelligence and creative talents of their people.

Regardless of what segment of the beef industry you work in, the backbone of making your business work as an entire succinct unit is to keep your employees engaged and enthusiastic about their jobs.

It is important to make sure they feel motivated each and every day to give their best and do a fantastic job with every task they undertake. 

Saying this, most employees are keen to work hard and do well in their role, but in order for them to do this well, they need to have a sense of purpose and to feel that they are valued.

While it may seem that offering a target-based reward with an incentive on completion (for example, a pay-rise or holiday) may be a good way to achieve this, and indeed on the short-term may be affective, in the long-term this may backfire as the employee has no intrinsic motivation to help the company to succeed.

AWX* director Cameron Dart said “time spent communicating the vision for the business, regardless of whether it is large or small, and enabling the employees to contribute to it, will pay rich dividends in terms of their motivation.”

Here are some tips to help stay in your employees' good-books and get the best work performance possible out of them. Doing so will increase employee engagement and loyalty and help you get the best from your most important resources.

Provide incentives for great work

While it may be difficult to justify going above and beyond their regular pay-checks to reward good work and service to the company, making employees feel necessary and needed can help stimulate their overarching desire to push themselves and provide more for their company. 

Furthermore, providing small incentives for reaching work quotas, avoiding breakages or any industry-specific guidelines could be a great way to make your employees more aware of what they're doing while also providing a goal to actively work towards.  

Keep the work interesting

Nobody wants to feel like a mouse in an enclosure, simply doing the same thing over and over every day. One way to keep employees engaged and working at their peak is to mix things up. Of course, this only applies to jobs where this sort of interchangeability is possible, but moving people around every three to six months could help to keep things fresh and interesting. 

Engage with your employees

Actively making an effort to get to know your employees will go a long way to boosting morale and raising the overall productivity of your workforce. Making them feel like a part of something bigger, that cares for them and their needs can foster a productive, healthy relationshipbetween employer and employee, which works to the benefit of both parties. 

Provide training and development.

The best companies invest time and money in training their employees, knowing that the investment will be returned many times over in not only a more capable but also more loyal workforce. Training does not have to be only technical, but can include business and social skills as well.

There are a number of training options available that won't break the bank. For starters, take advantage of internal knowledge and pair employees in mentoring programs. Also investigate educational offerings through government and industry associations. They often provide seminars and courses at reduced member rates, and the topics are customised to your industry.

Share responsibility widely.

There are many functions traditionally done by managers that staff/team members can take-on or at least be involved in, such as setting goals, planning and scheduling, and communicating with other departments. It does not necessarily mean you will give up control of these areas - but your role will be more involved around setting boundaries, providing training, and monitoring how things are going. The more variety and responsibility people have in their jobs, the happier they are likely to be.

Be a good Listener.

This is one of the most important skills leaders can develop. Employees have opinions and feelings which need to be expressed and heard in a safe relationship. If they can’t express their negative opinions and feelings then you can bet they’ll act them out in subtle, destructive ways. Listening takes time, but it also builds trust and ensures that you’re dealing with real issues and getting to the root of problems.

Minimise distractions.

You can get more out of your staff by avoiding time-wasters. Make sure meetings are essential and consider whose participation is critical before sending invites. Schedule formal discussions during slower times, such as later in the day or work week.

Share information generously.

Employees can’t be fully-engaged in their work if they’re in the dark or lack vital information. These have to do with the strategy and direction of the company, competitive landscape, feedback from customers, their personal or department performance, what is happening in other parts of the company, and so on. The more people know, the more valued and respected they feel and the better they’re going to perform.

Address performance problems directly.

Nothing demoralises a staffmember more than a co-worker who doesn’t care or do his/her share of the work. Such people drag down everyone around them. It’s critical that managers learn to confront these problems directly and hold people accountable. Too often we ignore and let these problems fester and become toxic to the entire work cohort. Develop a mind-set and skills that are “firm, but fair” in treatment of other employees.

Let them be Problem Solvers.

Empower employees by encouraging them to solve problems when and where they occur. Problems should be resolved by everyone within the business, regardless of its size. Solving problems when and where they occur engages people and creates a culture in which people know they make a difference.

Most company resources depreciate in value over time. Technology and software aren’t worth as much in a year as when first purchased.

But employees are different: they have the potential to add greater value to the company the longer they’re employed. And one of the most important roles of company management is to create a climate in which your employees thrive.

Implementing even just one or two of these tips will help you create more engaged and loyal employees.

• * AWX Agri AWX is a labour hire, contract staff & workforce demand management company solving short & long term staffing requirements.

MEAT & Livestock Australia is about to launch its new ‘Brand Australia’ project in an attempt to better position Australian beef as a premium product, relative to its international competitors.

Global marketing general manager Michael Edmonds told this week’s MLA’s regional manager’s forum in Dalby that with the global nature of the beef trade today, the industry needed to look at the ways it markets to customers - not only within individual countries, but often across many different countries.

“Consumers are a lot more global in their outlook than what they once were – they’re travelling a lot more, and are much more aware through social media about what is going on around them,” he said.

MLA had been working at in-market level to develop brand identities for Australian beef over many years, with different logos and brand positions in each market, depending on local needs. Best-known examples include the Aussie Beef program in Japan, and the Hoju Jungchungwoo “Aussie Beef, clean and safe” program in Korea. Both had been remarkably successful, with Aussie Beef still scoring 95pc consumer recognition 20 years after it was first launched in the market.

“But it’s time for Australian beef to get much more consistent in its messaging, and more efficient in its marketing investment,” Mr Edmonds said.

“In Japan, the Aussie Beef logo is now more than 20 years old, and getting a bit tired, trade and consumer research shows. It does not really address the country-of-origin factor, and has been associated in the past with a lower cost position.”

Particularly with the completion of the recent Japan-Australia and Korea-Australia Free Trade Agreements, the opportunity now existed to give a refreshed look to how Australian product was presented in both markets, as well as others.

Mr Edmonds said the new ‘Brand Australia’ concept was about building an added-value reputation, based on three key pillars that had application and relevance across all export markets. The program is designed to provide a platform for each Australian exporter to further build their own distinct brand offering.

He provided an analogy in country-of-origin labelling for beef with the reputation the word “Germany” had for engineering excellence for cars, or “France” had for champagne or cheese.

“There are lots of country of origin brands that have a reputation. Some have an organisation like MLA, behind them, but many do not. The opportunity for us is to create a clear position in creating further value for our industry,” Mr Edmonds said.

After a lengthy process talking to consumers and the trade about how Australia is perceived, a number of opportunities were identified to create an Australian beef image that people would “really value.”

What emerged was a three-pronged position, based on a set of beliefs in somebody’s mind about the key attributes of Australian beef. They include:

• The provenance of Australian beef – as an ideal place to grow and produce beef, with an ideal climate.
• Trust – the fact that Australia was a trusted partner in producing product with integrity – on-farm and in-feedlot, right through the processing plant and into international markets.
• The sheer enjoyment factor – every time a consumer in Japan has a piece of Australian beef, they are chomping on a piece of Australia – healthy food from a friendly place.

Those three elements have been distilled into a tag line and image, “True Aussie”, pictured here, which may be modified to “True Australian” in some markets where the term “Aussie” is less well known, The logo will also be adapted for specific markets.

Similar designs will be used for lamb and goatmeat, mainly because MLA believes that a country-of-origin logo can extend across species.   

“True Aussie is designed to be true to the quality and integrity of Australian beef producers; the authentic, natural, pristine environment; and the high food safety and animal welfare standards, underpinned by world-leading traceability and integrity systems,” Mr Edmonds said.

The new “True Aussie” imaging and logo will be brought to life in trade show representation, in- store retail identity in the chilled cabinet, brochures, sample programs, videos and digital marketing.

Some of the “True Aussie” themes will be implemented in programs starting next financial year, from July 1. An international launch will be held at the upcoming SIAL trade show in China in June.

• Beef Central first wrote about the Brand Australia concept in this article back in February.
• MLA regional managers will have further discussions at Armidale and Wagga this week, in addition to Monday’s Dalby lotfeeder-focussed meeting.

THE Australian beef industry and government are working collaboratively with key international trading partners to put processes in place that will improve Australia's assurances over the prospect of synthetic growth promotant residues being present in Australian beef exports.

This has been requested following a similar widely-publicised episode with Russia late last year which led to changes to Australia’s National Vendor Declaration system for slaughter cattle, in order to comply.

Given what happened in Russia earlier, it’s important to stress that at this point there is absolutely no suggestion of China suspending access for Australian beef.

Nor are the two developments a mirror image of each other: Australia has a completely different bilateral relationship with China, than that with Russia, where the decision was much more politically motivated.

Here’s a basic history of what’s happened so far.

Following the Russian suspension of some Australian exports in January after trenbolone detections, several customer countries have started a dialogue with their Australian counterparts seeking a greater level of assurance over the prospect of trenbolone residues in Australian beef being shipped into their markets.

One of these is China - now Australia’s third largest meat importer – which has a maximum residue limit for trenbolone of zero. Synthetic HGPs like trenbolone can remain at detectable levels, even though these are well below conventional maximum residue limits supported by many countries, for up to 140 days after treatment.

Australia is working closely with the international trading partners concerned to review its regulatory and assurance systems, and strengthen them if necessary. The ive is to make sure that Australia does not consign beef products to export markets that carry detectable traces of synthetic hormonal growth promotants, such as trenbolone, above importing country limits.

Currently, exports to China are done on the basis of screening carried out as part of Australia’s National Residue Survey random sampling process.

A senior Australian beef industry spokesman told Beef Central this morning that Australian authorities and industry are “working closely and cooperatively” with the Chinese to strengthen our systems surrounding HGP use and declarations, in order to provide watertight assurances that no Australian beef carrying detectable residues of HGP arrive in the country.

A series of meetings held since before Easter have been convened in a spirit of cooperation, but the ultimate responsibility rests with Australia in being able to “assure our trading partners that Australian product does and will continue to be world-class, and meet their requirements,” the spokesman said.

While nothing has yet been agreed-to by the Australian industry and regulators, the most likely plan is that the National Vendor Declaration system, together with the National Livestock Identification System, will be used to strengthen and underpin assurances about non-presence of synthetic HGP residue in Australian beef exports to China.   

For producers answering ‘no’ to question one on the NVD (concerning presence or otherwise of HGP), they will be free to supply key international markets market. It is also likely that individual Australian beef supply chains that can demonstrate that they represent no risk of synthetic HGP residue in beef exports will be added to the eligible supply list. There are also a growing number of commercial feedlots accredited to supply the EU grainfed and Coles supermarket supply chains, both of which are HGP-free.

All this is likely to require further modification to Australia’s current-version NVD form, only three months after the previous change to meet Russia’s requirements. More will be learned about that in coming days, and will be prominently advised in Beef Central as decisions are made.  A meeting in Canberra on Friday is expected to provide further clarity on this.

China is easily the most exciting beef export prospect for Australia to emerge in the past 20 years, and the entire beef supply chain must work cooperatively to ensure that the industry now delivers on the commitments outlined above. Australia’s aim was to become a long-term, reliable supplier, the industry spokesman said.

While the moves will inevitably mean adjustments in some supply chains, at this stage the issue is unlikely to greatly curtail Australia’s ability to supply beef to China at current quantities, contacts suggested this morning.

Meat & Livestock Australia suggests about 40 percent of Australian cattle are currently raised using HGPs, either synthetic or natural. HGPs have been used in Australia since 1979 and are used in most major beef producing countries around the world, including the US. HGPs have been through a rigorous government evaluation and registration process and are registered for use in many countries around the world.

• Beef Central will publish comprehensive details on any adjustments to the current NVD as a result of the China market developments, as soon as they are finalised. Follow-up articles will be uploaded next week looking at the industry implications behind the latest trade requirements into China.
• Click here to read Beef Central’s January report on changes to Russian market access.

The input prices faced by Australian beef producers have doubled in the last 25 years, according to the new Beef Producer Input Price Index (BPIPI) developed by ABARES, on behalf of MLA.

The BPIPI was constructed using the prices of 15 major input costs faced by beef producers, with the prices weighted accordingly and aggregated to form a northern and southern index.

Between September 1988 and December 2013, northern Australia input prices have increased 93 percent, at an annual average rate of 2.61pc, which was slightly less than southern Australia, where input prices increased 105pc, at an annual average rate of 2.86pc. In both instances, the increase was less than the Consumer Price Index (CPI) over the same period, which increased 109pc over the period, at an annual rate of 2.93pc. However, if interest is excluded from the calculation of the BPIPI, which is the case for the CPI, the northern rise was 112pc, while southern increased 118pc over the 25 year period – regardless; however, the rises have been very close to that of CPI.

While the northern and southern BPIPIs have been trending in line with CPI, there has been huge variation between each input cost, with northern land rent (393pc), insurance (360pc), electricity (250pc), and rates (216pc) all increasing significantly from the 1988-89 base. However, while there have been significant increases among the mentioned inputs, their collective weighting towards the northern index are 6.7pc.

The input costs accounting for the greatest weighting in northern Australia are the capital cost of the beef herd (17pc weighting) , interest paid (13.9pc weighting), and repairs and maintenance (8.9pc weighting). Interestingly, these inputs have increased much less than those above, with the opportunity cost of beef cattle rising 38pc since 1999-89, repairs and maintenance increasing 137pc, while interest paid declined 49pc over the period.

For the southern index, depreciation accounted for the greatest weighting (11.9pc), followed by the capital cost of the beef herd (10.2pc), interest paid (8.9pc), repairs and maintenance (8.8pc) and fertiliser (6.6pc).

Other inputs to have increased substantially since the 1988-89 base are fuel, oil and lubricants (197pc), wages and hired labour (149pc), contracts paid (149pc), fertilizer (145pc) and freight (101pc), while crops and pasture chemicals have risen just 7pc

Ultimately, the main finding from the Index is that while beef producer input costs have increased significantly over the past two decades, they have been in line with CPI. The greatest squeeze for producers has been the significantly lower increase in output prices over the same period.

Going forward, the BPIPI will be updated on a quarterly basis, with the results and analysis available on the MLA website.

Source: Meat & Livestock Australia

A Wellard Rural Exports vessel which left Fremantle destined for the Middle East earlier this week will be diverted to South East Asia after experiencing engine issues soon after departure.

Wellard Rural Exports released a statement this morning confirming that it is now preparing to sail the MV Ocean Outback to a long-term SE Asian customer after changing its intended destination due to “some concerns about the performance of one of the two engines on the vessel”.

Details of the problem with the engine have not been disclosed but the Wellard statement said that all livestock services on the vessel – feed, water and ventilation – continue to operate as normal.

The company said the cattle on-board remained under the care of an Australian Quarantine and Inspection Service accredited veterinarian, two AQIS accredited stockmen and the shipboard crew.

“The welfare of the animal and the crew is our priority so we have taken the decision to sail to South East Asia where our customer continues to require increased numbers of Australian cattle,” Wellard CEO Mauro Balzarini said in the statement.

Mr Balzarini said the MV Ocean Outback was designed and constructed with a Dual Propulsion System, including dual independent engines, which enables it to operate on a single engine if required.

Beef Central understands the vessel had only just departed Fremantle when problem occurred, and was destined for Israel.

The change of destination will require a new export approval from the Department of Agriculture, which is currently being applied for. When that approval is granted, the vessel will sail for the new destination.
 

GENERALLY lower rates of beef kill and fewer working days caused by holidays have produced a marked reduction in Australian beef exports during April.

Total beef exports to all markets reached 97,477 tonnes for the month. Barring the export abattoir closure-affected period over December/January, that represents the lowest rate of export since September last year.

While last month’s figure is still 14 percent higher than April last year in volume, it appears that the unprecedented high export activity caused by drought turnoff may now be subsiding. April’s exports were in fact down 8.3 percent on the previous month, which was an all-time record for any month for Australia of more than 106,000 tonnes.

Having said that, May is traditionally a strong month for slaughter activity - but it will be interesting to watch this month’s performance relative to earlier years, given what has unfolded over the past year, season and turnoff-wise.

Eastern states average weekly kills during April dropped 20pc compared to March levels to about 110,000 head, which is little surprise given the two holiday-shortened trading weeks. The Easter period traditionally causes a check in slaughter levels, before throughput in May historically increases to numbers well above the February and March average.

May slaughter over the past five years has averaged close to 132,000 head, so looking  ahead, it will be interesting to note if slaughter reflect the historical pattern, or is impacted more by the past year’s drought event and record high turnoff.   

Given the strong start to the killing year before last month’s rain, calendar year-to-date beef exports to all markets remain high, at 373,000 tonnes – still about 65,000t or 21pc above the same period last year.

It’s a lingering reflection of the relentless drought-driven surge in beef slaughter over the past 15 months, which has seen eight consecutive in-month shipment records broken, on top of the overall 2013 export beef tally which hit 1.1 million tonnes. A rise in the value of the A$ in the past two months, lifting about US4c to the mid-92s compared with February, has also added a little headwind to export performance.

Highlights during April included continued strong recovery in exports to the US, continued momentum in China, and growth in trade into Indonesia.

Recovery seen in US trade

The US accounted for just short of 25,000 tonnes of Australian beef in April. While that was well short of the previous month’s massive spike in shipments to just over 30,000t (the highest figure since November 2008), it was in fact 41pc higher than April last year, reflecting the strong recovery in trade to the US this year.

Calendar year to date, exports to East and West coast US ports have totalled 93,000t, almost a third higher than the 64,000t shipped during the same period a year earlier.

The reasons were clearly spelt out in this earlier Beef Central article, with the US hitting record-high domestic cattle and beef prices due to domestic beef herd reduction to 50-year lows. Whereas the US for most of last year was being out-gunned on Australian grinding beef exports by other markets, leading to shipment volume lows not seen since the 1980s, currency movements and domestic shortage has seen the US step-up with more aggressive pricing on Australian product.

The April export result means the US has surpassed Japan as Australia’s largest market, by volume, for the third month in a row – a sequence that hasn’t happened since 2004. Given the expectation of sustained demand from the US this year, shipments are likely to remain high for the coming months.

Japan eases

Australia’s beef trade with Japan during April reached 20,747t, back 8.2pc on the previous month, and about 10.2pc lower than this time last year.

Year-to-date, Japan has taken 81,000t, down 5.3pc on the same period a year ago. 

A contributing factor is recent growth in imports from the US. During March, for example, there was a large decline in imports of Australian frozen beef, offset by a surge in US shortplate volumes, data from Japan’s Ministry of Finance suggests.

Shipments from the US reached 15,000t during the month, underpinned by 215pc growth in frozen beef, at 9000t. The majority (94pc) of US frozen product was briskets and shortplate, to be supplied mostly to gyudon beef bowl outlets. In comparison, chilled beef intake from the US in March, at 5800t, was down 9pc from last year, on the back of strong prices.

Soft sales within Japan’s western-style fast food sector, and robust demand for Australian manufacturing beef from other international markets also impacted on our trade with Japan last month.

China demand returns in earnest

Sustained strength in the China market for Australian beef was again evident again in April, with exports totalling 13,859t.

While that figure was modestly down on March (+14,000t), it is still 19pc above April last year, when China spectacular growth trajectory was still gathering pace.

Noteworthy is the fact that 100pc of exports in April were in frozen form, following the earlier ban on chilled trade. This time last year, chilled represented roughly 15pc of all exports. Another point worth noting is that 13pc of exports to China, by weight, continue to enter the country in carcase form, providing work for Chinese boning rooms set up earlier, which have since struggled to find local domestic beef on which to base their business.

Calendar year to date, China has already taken 51,200t of Australian beef, up about 28pc from 40,000t by this time last year.

Korea steady

South Korea took 12,065t of Australian beef in April, down 5.7pc rise on March, but more than 25pc higher that trade in April last year. March, however, was a particularly strong month, being the third highest shipment tally on record.

Year-to-date, exports have totalled 47,411t, a 24pc rise on the same period a year before, partly because currency movements have meant Australian beef is more competitive against US imports.

Exporters have reported sustained interest from Korean traders in recent months, particularly for frozen beef, with shipments up 31pc calendar year to date, at more than 37,000t.

On the back of a gradual recovery of Korean economic conditions, chilled beef exports during the past four months have risen 4.8pc year on year.

The result comes despite an increasingly onerous tariff on Australian beef imports since January 1, relative to our US export competitors operating under the US/Korea Free Trade Deal. The tariff difference being paid by Australia and the US now stands at more than 8pc, and will continue at that level, at least until Australia’s own FTA with Korea is fully-ratified by both governments.

• See Beef Central publisher, James Nason’s recent report, click here.

European Union, Russia

Exports to the EU member nations reached 1927t in April, down 13pc on March, due mostly to being the start of a new quota year, but still 19pc higher than this month last year. Significantly, chilled increasingly dominates the EU trade, accounting for 92pc of all exports last month.

Year to date, the EU has taken 7397t of Australian beef, up 47pc on the same period a year earlier, as the expanding grainfed opportunity gains momentum.

Notwithstanding the current troubles involving Russia and neighbouring Ukraine, trade into Russia and the former CIS states has collapsed this year, with just 301 tonnes consigned in April, on top of 549t during March. Both are well down on the 2153t trade in April last year.

The cause is the Russian authorities April 7 suspension of frozen beef shipments from Australia, following a similar suspension on chilled beef exports from March 31. The alleged reason was concerns over trenbolone residues, but the process is highly politically-charged, and ed to Australia’s actions over Russia’s invasion of Ukraine’s Crimea region.

Russia has been an important market for Australian beef over time taking 24,000t for the 12 months ended June 2013. Calendar year to date, volumes have slumped to just 1522t, down from almost 6000t a year earlier.

Australia has been a traditional beef exporter to Russia since the 1970s and has had an impeccable record over more than four decades of meeting Russian market requirements at the time.

Indonesia stronger

After two years of being plagued with trade barriers associated with the country’s politically-driven push for self-sufficiency in beef, Indonesia appears to be re-emerging as a more significant customer for Australian beef.

Shipments in April reached 4529t, 49pc higher than the previous month, and a spectacular 62pc higher than April last year. Year to date, exports are at 17,600t – 96pc higher than January-April in 2013.

In other Asian markets, Taiwan took 2810t last month, down about 15pc on the previous month; while the Philippines reached 2700t, much the same as March. 

Middle East solid performer

The Middle East region continues to be a strong export success story for Australian beef, taking 5908t last month, up 5pc on March, and a rise of 8.2pc year-on-year.

Calendar year to date, the Middle East region has taken 20,192t of Australian beef, 5pc higher than in 2013.

The challenge facing Australia’s beef marketing team in Middle East and Northern Africa (MENA) in the next 12 months is to consolidate the sales volumes achieved in the region since Brazil was excluded from the market over a reported BSE detection early last year.

The MENA region represents a one million tonne per year beef import market.

Indian buffalo meat is the dominant source of bovine protein in the market, accounting for sales of about 500,000t per year, followed by Brazil with exports of around 350,000t to the market.

However, since Brazil’s early 2013 suspension from a number of key markets in the region, and in particular the large Saudi Arabian market, Australian exports have risen to fill the gap.

As the graph on this page shows, Australian beef exports to MENA have grown from an average of 5000t per year in the mid-2000s to the 30,000t level in 2011 and 2012.

Then in 2013 exports more than doubled to over 60,000t following Brazil’s suspension, which followed a delayed report of an atypical BSE case in a Brazilian cow that did not enter the food chain.

With expectations high that Brazil will be granted re-entry at some point in the near future, the challenge facing Australia’s beef marketing team in the region is to consolidate the substantial growth Australian beef has enjoyed in Brazil’s absence.

The MENA region is a large and fast growing market and one that has room for many suppliers. The raw figures alone tell the story of the MENA region’s remarkable growth, as Meat & Livestock Australia’s MENA region manager Jamie Ferguson told MLA producer forums in Southern Queensland and New South Wales this week.

450 million people live in 46 countries throughout the region. Several are net oil exporters. The leading markets in the region are home to a diverse range of nationalities with a very young age profile. The average age in Saudi Arabia for example is just 30 years.

The United Arab Emirates has been the poster child of the region’s recent growth, where the population has exploded from 3 million just 10 years ago to 8.5m today. Dubai alone now has more than 500 hotels and plans to build another 80 before the World Expo comes to the UAE in 2020. Its airport, now a major hub, is also expected to overtake Heathrow as the world’s busiest this year.

Mr Ferguson said MLA’s marketing strategy in the MENA region focuses heavily on promoting the food safety qualities and certified Halal status of Australian red meat.

The consistent eating quality offered by Australian grainfed beef in a market where US product is also still unable to compete due to a BSE detection 11 years ago is another key point of difference leveraged by Australian marketing efforts.

Mr Ferguson said MLA employed a range of initiatives to promote the quality, consistency and safety attributes of Australian beef in MENA, including
Australian-branded labeling and product sampling at point of sale in supermarkets, regular work including culinary schools with new and established chefs, and through a strong presence at the major trade shows such as Gulf Foods, the largest annual trade show in the world. 26 Australian exporters had representation on MLA’s stand during last year’s event.

One of MLA’s most successful strategies in the region has involved its partnership with Egyptian television celebrity chef Tarek Ibrahim, the first Arab chef to received the coveted status of Master Chef from the World Association of Chef Societies.

For several years Mr Ibrahim has been employed by MLA as its corporate executive chef for the MENA region, and in that role he has helped to promote Australian red meat products directly to millions of consumers throughout the region on a regular basis via his work on televised cooking shows.

Mr Ferguson said with more than 80pc of the population in countries like Saudi and the UAE possessing smart phones, awareness campaigns and competitions via social media also played a cost-effective role in MLA’s marketing efforts in the region.

Grainfed product accounted for 19pc of Australia’s beef exports to the region, last year, up from 16pc the previous year, reflecting the growing consumer awareness for the consistent eating quality provided by grainfed beef. 

Mr Ferguson said that while Australian product would inevitably lose some market share on price when cheaper Brazilian product is permitted back into the market, MLA would continue to reinforce the eating-quality attributes of Australian beef.

“Our job is to keep meat on menus, and to retain that loyalty of consumers who have tried our product and really liked it.”

Woolworths has announced strong third quarter sales results for its supermarket division, closely mirroring the performance in figures issued by Coles’ parent company Wesfarmers earlier this week.

Woolies Australian Food and Liquor sales division sales for the third quarter reached $10.4 billion, an increase of 4.4 percent on the previous year or 5.1pc when adjusted for the timing of Easter this year.

Comparable store sales for the third quarter increased 2.9pc (3.5pc when Easter-adjusted), continuing the recent trend of improving quarterly comparable sales growth into the third quarter. Woolworths’ first quarter produced sales growth of 2.5pc, and its second, 3.4pc.

During the latest quarter, Woolworths increased supermarket customer numbers, basket size and items sold as well as market share, which showed growth each month when compared to the prior year. The nation’s largest retailer served on average 21.5 million customers per week, an increase of 3.9pc on the previous year.

Managing director of supermarkets, Tjeerd Jegen, said the company’s ‘More Savings Every Day’ program continued to benefit customers through lower average prices, as evidenced by price deflation of 2.9pc when the effects of promotions and volumes are included. Excluding tobacco and produce, the standard shelf price movement index for the quarter increased 1pc.

“We continue to provide the most compelling offer to our customers through an ongoing focus on delivering unbeatable value. In line with our strategy, our fresh foods (including beef) sales and market share grew faster than grocery, demonstrating the relevance of our fresh food offer,” he said.

Woolworths’ online sales increased by more than 50pc compared with the same quarter last year.

“We remain focused on our online offer to provide customers with more flexibility in the way they shop. Increasing loyalty from repeat shoppers and pleasing new customer numbers, assisted by the use of customer insights and targeted offers, have led to another quarter of strong online sales growth,” Mr Jegen said.

Click & Collect (online) sales across the Woolworths divisions increased by more than 100pc as the company built stronger platforms to give customers additional choice in how they choose to shop.

Given the sheer volume of new supermarkets Woolworths has added over the past year, it was no surprise that its headline numbers for sales growth were impressive, analysts said. On an Easter-adjusted comparable stores basis, however, the growth rate was still solid and matched earlier results from Coles.

With nearly 40 more supermarkets operating in the group’s third quarter relative to the same period of last financial year, the 5.1pc increase in Easter-adjusted sales for the food and liquor division translated into a 3.5pc increase in comparable stores sales - a rate identical to the one Coles’ reported on Tuesday.

The trend of quarterly uplifts in Woolworths’ food and liquor growth rates across the bigger base created by the massive expansion of the store network (29 stores were added in the third quarter alone) suggests that there is momentum in the group’s performance, analysts said.

In addition, there is further upside in its online strategies and its increased focus on leveraging its customer insights and loyalty program.

During the quarter, Woolworths’ Australian Liquor and Hotels Group acquired two additional hotels, bringing the total number of venues to 329. About two-thirds offer the company’s own Graziers branded beef through hotel steakhouse venues.  

Mining billionaire Andrew Forrest has bought Western Australia’s Harvey Beef for a reported $40 million as he moves to build his agricultural assets with a view to capitalising on China’s growing demand for red meat.

The West Australian newspaper reported late on Friday afternoon that the deal was signed in Perth on Thursday. 

Harvey Beef is WA’s biggest beef exporter and the State's only exporter accredited to supply beef to China.

Since 2006 Harvey Beef has been under the control of Harvey Industries Group Pty Ltd, owned at the time by international private equity firm Harmony Capital Management, which in turn was bought last year by Singapore-based Pacific Alliance Group, one of Asia’s biggest private equity funds.

The deal returns Harvey Beef to local hands for the first time in eight years.

In recent months there has been ongoing speculation that other buyers including the WA based Craig Mostyn Group and potential investors from China and Japan had been negotiating to buy the operation.

However Mr Forrest confirmed the purchase in a statement to media late on Friday afternoon, which said his private company Minderoo will take ownership of Harvey Beef immediately.

“I have always been a firm believer and an even stronger supporter of the Australian agricultural industry,” Mr Forrest said.

“Harvey Beef has been an iconic brand for almost a century and I am delighted to work with its team to ensure Harvey Beef makes a significant and growing contribution to the State's economy; and Australia's agricultural industry for the next century.

“Harvey Beef is Western Australia’s only accredited beef exporter to China. Following detailed discussions with the Chinese leadership, we are determined to ensure that the Australian agricultural industry’s future in China is just as bright as our mining future.

“We hope this acquisition will send a strong message of confidence in the future of the industry. To provide confidence to increase supply and make Australia the supplier of choice to meet Asia's long term food security requirements.”

The history of Western Australia's largest beef producer dates back to 1919 when it was founded by Ernest Green near the township of Harvey, about 140km south of Perth. A large state-of-the-art processing facility was built on a 190ha site in 2005.

Harvey Beef was operated as a family business until its sale in 2006.

Since 2012 Harvey Beef has been a major supplier to supermarket giant Coles. It also exports WA beef to about 30 countries, including China, Japan, the US, Korea, Indonesia and Taiwan.

Harvey Beef today employs about 300 people and processes about 145,000 cattle a year.

Minderoo says it will further invest in upgrading the Harvey Beef facilities to increase capacity in order to meet growing domestic and international demand for premium WA beef, both grass and grain-fed.

In recent months Mr Forrest, who has significant pastoral holdings in the Pilbara, has actively indicated his interest in seeing live cattle exports opened up to China.

The outgoing Chairman of Harvey Beef, John Nicholls said, “The former major shareholder, Pacific Alliance Group, is pleased that Harvey Beef was acquired by Andrew Forrest’s Minderoo Group.”

Michael Hughes, CEO of Harvey Beef said, "We are delighted that Minderoo has acquired Harvey Beef and will continue to invest in our highest quality beef processing. We are a proud Western Australian brand and are committed to getting on with the job to supply Australians and the emerging markets of the world with the best beef produce.

"This is an excellent result not just for Harvey Beef, but for our suppliers and distributers all over Australia. The vision Mr Forrest has demonstrated will certainly be a bright and exciting future for Australia's agricultural industry."

The Minderoo statement said the acquisition of Harvey Beef was testament to Mr Forrest’s vision of expanding Australia’s agricultural trade into emerging markets and securing Australia as the pre-eminent most secure, reliable, highest quality food supplier in the region.

Minderoo was advised by Pendulum Capital on the transaction.

AGFORCE Queensland has identified a number of recommendations made within the National Commission of Audit report that, if adopted by the Federal Government, would result in a disproportionate impact on the rural sector.

General President, Ian Burnett, said while the organisation recognised the budgetary challenges before the Government, and that some cuts must be made across all of society and the economy, he held significant concern future agricultural production and efficiency would be damaged should the recommendations be implemented.

“We acknowledge many of the recommendations involve a streamlining of government services and that the Commission flagged further efforts will be required on labour market reform, deregulation, energy policy and provision of economic infrastructure,” Mr Burnett said.

“AgForce also most certainly endorses the Commission’s recognition that any moves to increase competition, such as the outsourcing of service delivery, should consider the interests of rural and remote communities.

“However, Australian agriculture is already amongst the least supported by its government in the OECD and further cuts would surely lead to a significant negative impact on the sector.”

Of greatest concerns are recommendations to halve the co-contribution to rural research and development and to abolish the rural CRC program, both key contributors to securing the productivity gains essential to ensuring agricultural competitiveness and affordable food and fibre.

“We are also highly concerned as to any proposals to reduce funding for drought assistance, the Rural Financial Counselling Service, Export Market Development Grants and the Farm Concessional Loan Scheme,” Mr Burnett said.

“With National Farmers’ Federation, AgForce will now engage with the Federal Government in the lead up to the budget to ensure that the implications of adopting Audit recommendations are well understood and any decisions on services to agriculture are targeted appropriately.”

Source: AgForce Queensland

THE countdown has begun, with just 365 days to go until Beef Australia 2015, the biggest and most comprehensive cattle industry exposition in the country.

Held every three years in Queensland’s beef capital of Rockhampton, the next event will take place from May 4 to 9, 2015.

The 2012 event attracted more than 85,000 visitors through the Rockhampton Showgrounds main venue, including more than 600 international guests representing 37 different countries.

The Beef Australia 2015 program is expected to feature more than 4500 cattle, 500 commercial trade sites, an extensive education, seminar and conference program and business meeting facilities, as well as a range of restaurants, bars and retail outlets.

“The event is more than a showcase of Australian cattle – it is about growing the beef industry by creating new export opportunities by engaging the international agribusiness community,” said Beef 2015 event chairman Blair Angus.

“Beef 2015 is about improving the productivity of producers through our education program; and it is about building excitement in beef as a product through our consumer awareness activities,” Mr Angus, a Central Queensland beef producer and branded beef exporter said.

“The event is a celebration of all facets of the beef industry in Australia and facilitates new trade and export opportunities by exposing the local supply chain to the international industry leaders.”

"It’s also the industry’s chance every three years to eat, play and learn about all things beef and for the general public to enjoy beef in ways they have never experienced before.”

Beef Australia chief executive Denis Cox said the development of the program was well underway, with eight producer and industry-led committees in place to drive preparation of different aspects of the event, including the stud and commercial cattle competitions, carcase judging, the education and seminar programs, and the ever-popular regional property tours.

The event’s International Committee has been in place for more than a year, with promotional materials already produced in 10 different languages and being distributed to our key export markets, Mr Cox said.

The countdown to Beef Australia 2015 will be celebrated in coming weeks with two industry launch events to be held in Brisbane and Rockhampton.

•             More information is available at www.beefaustralia.com.au

Wild dogs attack more than farmer’s pockets

A new report by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has for the first time examined the full economic, social and environmental impact of wild dogs in Australia. Released this week, the report, An integrated assessment of the impact of wild dogs in Australia, examined three case-study areas in different parts of Australia to evaluate the impact of wild dog management strategies. The South Western Queensland case study found that absence of wild dog management strategies could potentially cost the livestock market up to $54 million over 20 years – in an area that accounts for just 23 per cent of the state’s sheep and 4 per cent of the state's cattle. Agriculture minister Barnaby Joyce said that while the report painted a dire picture of the scale the wild dog problem, it also provided a strong platform to devise better strategies to tackle this issue. "The Coalition recognises the seriousness of this problem for many farming communities which is why we provided $10 million for pest management – including wild dogs – as part of the drought package to assist affected farmers at this time of difficulty," Minister Joyce said.

What was Roma’s largest ever yarding?

The 14,200 cattle initially drawn by selling agents for this week’s Roma Store Sale has raised some interest as to what was the centre’s largest ever yarding. Some reports have identified a 13,900 head yarding in Roma in 2006 as the largest ever yarding at the centre, which is Australia’s biggest cattle selling centre. However it appears that even that mark may have been marginally shaded a few decades earlier. Beef Central asked Roma’s NLRS market analyst Martin Bunyard if the official records shed any light on the matter. Martin said the picture was partly sketchy because some gaps exist in the records prior to 2010, after which time MLA took over the official reporting responsibilities for Roma. The MLA records show that the previous largest yarding since it began reporting in 2010 was a 12,900 head offering in March last year (2013), making the 13,206 yarding that were ultimately yarded on Tuesday the biggest on MLA's five-year old records. However Martin advised that the biggest all-time yarding that can be found in the existing records was achieved in 1982, when 14,000 head of store weaner cattle were penned and sold by open auction. If anyone is aware of a bigger yarding at Roma, or elsewhere for that matter, please drop us a line at feedback@beefcentral.com.

Ag ministers meeting in Melbourne today

Agriculture Ministers from across Australia and New Zealand are meeting at the inaugural Agriculture Ministers Forum in Melbourne today. The forum will continue the work of the Standing Council on Primary Industries (SCOPI) and will address strategic priorities for Australian agriculture with a focus on benefits towards the development of primary industries. NT Minister for Primary Industries and Fisheries Willem Westra van Holthe joint discussions between agriculture ministers were extremely valuable for advancing collaboration between jurisdictions to benefit agricultural industries. The forum will include presentations from the Bureau of Meteorology which would provide an update on current climatic conditions, predictions for the next growing season and implications for agriculture, as well as an update on the development of the Agricultural Competitiveness White Paper and a discussion around biosecurity matters of national significance. Mr Westra van Holthe said he would be discussing and promoting issues around Northern Australian development including expanding existing industries through diversification of pastoral land, growing the northern cattle and agricultural industries and the establishment of the Northern Agriculture Cooperative Research Centre.

AgForce launches 360 Series initiative

AgForce Queensland has launched a new initiative for 2014 designed to bring information to primary producers and to lead the agricultural discussion across the State. The AgForce 360 Series will include five industry events held across each of the AgForce regions, and aims to make high quality speakers, information and industry debate accessible to as many agriculture industry stakeholders as possible.  The concept will, for this year, replace the traditional AgForce State Conference. AgForce General President, Ian Burnett, said the 360 Series sought to counter some of the travel challenges imposed by prevailing drought conditions while keeping sight of the vast opportunities before the agriculture industry. Each event in the 360 Series will be tailored to the region it falls in and will include keynote speakers, forum discussions and debate, hands-on demonstrations and networking opportunities.  The first will be held in Roma on June 24-25 with others to follow in Biloela (September 3-4), Charleville (October 1-2), Blackall (November 5-6) and Brisbane (November 25).  The regional events will include a pre-forum dinner and industry forum the following day while Brisbane will be a flagship event designed to engage the agribusiness and corporate sector.

Big response to White Paper

Agriculture minister Barnaby Joyce says the first consultation state of the Agricultural Competitiveness White Paper process has drawn to a close with more than 600 submissions from around the country. The minister said it was encouraging to see such significant interest in the issues and the high level of participation from agricultural industries right across Australia. The Agricultural Competitiveness White Paper taskforce visited 33 regional and metropolitan centres throughout Australia, talking directly with about 900 farmers, producers and other industry representatives. He said recurring themes arising from the consultation process included profitability (including international competitiveness,  information and power imbalances – including supermarkets and processors); financing (including taxation, debt, attracting new capital); the image and contribution of farming to the nation; input costs (including regulatory burden, utilities, fertilisers, biotechnology); infrastructure (including road, rail, ports, water and communications); skills and workforce  (including training, employment arrangements, visa programs); farm ownership (including succession, and entry and exit pathways); market access and market development; biosecurity; and research, development and extension. Those themes will now considered as part of the development of the Green Paper, which is the next step on the way to the White Paper.

First sod turns on Australia’s new biosecurity centre

Work to build Australia’s new Post Entry Quarantine (PEQ) facility at a 144 hectare site in Mickleham, Victoria, started this week. The new facility will consolidate Australia’s entire existing, Government-operated, animal and plant PEQ services into a single site that will start operations in 2015.The new $379 million facility delivers a purpose built solution “light-years ahead” of the existing, ageing, facilities located in Sydney, Melbourne and Adelaide which will then be progressively decommissioned from 2015. Agriculture minister Barnaby Joyce said that moving quarantine operations to a single site supported greater efficiency in operations. To view a 3D walk through of the new facility click on the video below

Ruralco on track for first-half profit

Ruralco Holdings has advised the ASX it expects to report a net profit for the half-year ended March 31, 2014 in the range of $4.5-$5m, when it announces the results on May 20. The result is a turnaround from the $0.5 million loss reported by Ruralco in the corresponding period last year. Managing director John Maher said the solid result could be attributed to Ruralco “continuing to grow its business geographically and diversify its revenue streams whilst attracting high quality people. He said the start up costs of Ruralco’s new live export business had been greater than expected, but most of the company’s activities had performed well in the half year. Ruralco’s acquisition of the Total Eden Group on February 28, 2014, had also given Ruralco a leading national position in water management.

Jail sentence for repeat animal cruelty offender

A Victorian sheep owner has been jailed for seven months after pleading guilty to 11 consolidated counts of cruelty and aggravated cruelty to animals under his care. Delivering the sentence in Melbourne Magistrates Court, Magistrate Peter Mealy also banned the Deer Park man from owning livestock for 10 years and ordered him to pay $40,000 costs. The Department of Environment and Primary Industries (DEPI) prosecuted the case in what was one of the most serious and significant animal cruelty matters it has brought before the courts. The 11 consolidated charges were made up of 175 separate offences committed under the Prevention of Cruelty to Animals Act 1986 in July 2012 at properties near Kerang. They related to the management of approximately 2200 sheep in a farming enterprise that included an intensive lambing program in which hormones were administered to ewes with the intention of inducing two lambings a year instead of the usual one. Between 3 July and 13 July 2012, DEPI animal health officers attending the two properties found more than 40 sheep that were either dead or in such a state of debilitation immediate euthanasia was required. The accused pleaded guilty to aggravated cruelty in respect to these individual animals, admitting he failed to provide them with appropriate attention and husbandry, with the result being that each animal experienced unreasonable pain and suffering. The accused also pleaded guilty to committing acts of cruelty upon animals in the flocks at each of the properties by failing to provide appropriate attention and husbandry, as well as driving a mob of 1000 sheep by land when they were in no condition to travel. 

NSW Farmers launches native vegetation survey

NSW Farmers has launched a survey to ensure its submission on draft vegetation management codes in NSW captures farmer views. President Fiona Simson said native vegetation laws cost the state’s agriculture industry dearly in lost productivity and perverse environmental outcomes, and the latest self-assessable codes released by the NSW Government were impractical and unworkable. Ms Simson said it was vitally important for farmers to participate in the survey and make sure their voice is heard.  “NSW Farmers is not proposing reform at the expense of environmental values - quite the opposite. We are advocating for truly balanced and reasonable native vegetation requirements and for recognition of the myriad of environmental works that farmers already undertake on a daily basis.” The NSW Government is seeking public feedback on its draft codes for the management of invasive native species, isolated paddock trees and thinning operations by May 26, 2014. Farmers can access the NSW Farmers survey at www.nswfarmers.org.au.

Qld Govt to host agriculture conference on June 26

The Queensland Government will host a Queensland Agriculture Conference on June 26 in Brisbane. Agriculture minister John McVeigh said the event will bring all of the main players in Queensland agriculture together in one room to discuss major issues in farm production. He said the conference follows on from the launch of the Queensland Agriculture Strategy which provides the work for government and industry to work together to grow agriculture “The Strategy will drive our policy agenda to achieve our target of doubling Queensland’s agricultural production by 2040,” Mr McVeigh said. A key commitment in the Strategy is the development of the first State of Queensland Agriculture Report which will establish baseline information for the industry and progress on reaching our 2040 growth target. The report will be released at the Conference. Conference sessions will be organised around the Strategy’s four key pathways – Resources, Productivity, Markets and Production.

$5000 place on Vic trade mission up for grabs

A new pilot program will provide a young food and fibre professional in Victoria with the chance to accompany the Victorian delegation on a Super Trade Mission to South East Asia in June. The Victorian Coalition Government’s pilot Travel Support Program is also offering up to $5000 to the chosen candidate for travel costs. Victorian agriculture minister Peter Walsh said the program will help the next generation of food and fibre producers and agribusiness professionals to capitalise on Victoria's growing export markets. Applications for the Travel Support Program are open until 16 May 2014 to all financial members of the Victorian Young Farmers or the Young Agribusiness Professionals, aged 18 or over. To join VYF or YAPs, visit their respective websites or call the DEPI Young Farmer Coordinator on (03) 9637 9153. Eligible young professionals can also apply by going to www.depi.vic.gov.au/grow

Biggest causes of workplace accidents on NT cattle stations

Northern Territory statistics show that between 2009 and 2013, there were 792 workplaces incidents in the cattle industry, which resulted in a workers compensation claim, including several fatalities. The total amount of the claims over the five years cost the industry $24,443,733. The top three causes of a workplace incident on a cattle station were veing hit by an animal (28.9pc of claims); falls from a height (25.1pc of claims), and vehicle incident (16.5pc of claims). Insurance companies charge employers in the Primary Industry Sector the highest average workers compensation premium rate of 6.192pc of remuneration, compared to the average rate of 2.314pc for all industries in the 2012/13 financial year. NT WorkSafe Officers are running a campaign from May to October 2014 which aims to increase awareness of workplace health and safety issues, and to provide information on safety inductions and risk assessments. For more information visit NT WorkSafe here

The recently released Commission of Audit report into Australian Government finances has recommended a significant reduction in public funding of agricultural R&D in Australia, a recommendation that seems to fly in the face of concerns about declining agricultural productivity, and ignores the public benefits that have long been recognised to be associated with this funding.

The Commission of Audit recommendations for the future funding of agricultural R&D are as follows;

There is an array of Rural Research and Development Corporations in the Agriculture Portfolio which are co-funded by industry (through a compulsory levy administered by the Commonwealth) and by government. These Corporations do not receive the benefits of the research and development tax incentive.

In return for the government contribution, the Rural Research and Development Corporations are expected to fund some research that has broader public good ives. The wider industry and community have access to the outcomes and benefits of the Rural Research and Development Corporations’ research in order to maximise spillovers.

Changes to the current funding model, consistent with Productivity Commission recommendations, would reduce the amount of government funding and better reflect the mix of private and public benefits. In particular, the current cap on dollar for dollar matching of industry contributions by government (currently set at 0.5 per cent of gross value of production) should be halved over a 10 year period.

A new uncapped subsidy at the rate of 20 cents in the dollar should be introduced for industry contributions above the level that attracts dollar for dollar matching. Duplication of administrative support and processes should be reduced by aligning ‘backroom’ processes across the various Rural Research and Development Corporations.

If adopted, this would mean that the Australian Government annual contribution to agricultural R&D through the Rural Research and Development Corporations, which currently amounts to around $250 million per year, would be reduced to a little over half over the ten year period (depending on decisions on levy rates by farm commodity groups). In combination with the Commissions recommendation to abolish Co-Operative research centres (a number of which involve agriculture) this would probably mean a reduction in Australian Government agricultural R&D funding of more than $100 million per annum by the end of the ten years.

Unfortunately, the Commission of Audit has relied heavily on the 2011 Productivity Commission review of Rural Research and Development Corporations. The findings of that review contained some major flaws, including an incorrect categorisation of rural R&D funding which inflated the actual government expenditure considerably, and a badly flawed understanding of the nature of cooperation between public and private sector agricultural research. It also ignores the fact that multiple economic evaluations of rural R&D investment have consistently generated very strong rates of return - generally in excess of $10 worth of benefit to the economy for every $1 invested.

Interestingly, the Commission of Audit seems to have made a number of conflicting recommendations - on the one hand extolling the virtues of industry clusters to achieve innovation outcomes, but on the other hand recommending the abolition of Co-Operative Research Centres - which are designed to develop industry clusters of expertise!

The Commission of Audit recommendations on rural R&D also seem to fly in the face of the position that both major parties took to the last election, where both spoke about the need to lift agricultural productivity to take advantage of the "Asian Dining Boom" and in fact the Coalition promised to increase agricultural R&D funding by $100 million over the forward estimates.

If the 'dining boom' really is to take the place of the mining boom in sustaining growth in the Australian economy, the there will need to be more rather than less investment in agricultural R&D.

This article was first published on the Australian Farm Institute website and has been reprinted here with permission. To view the original article click here

WESTERN Australian mining billionaire Andrew ‘Twiggy’ Forrest has bought the state’s largest meat processing business, Harvey Beef, in a move that has taken the market by surprise.

The purchase returns Harvey Beef to Australian hands for the first time in eight years, after being owned by Singapore’s Harmony Group and others since 2006. The deal is understood to have been for more than $30 million.

Mr Forrest will buy the business through his Minderoo Group, which has developed in recent years into one of Western Australia’s largest cattle producers.

The move puts paid to suggestions that the Harvey business might be sold to Chinese interests; to the Fremantle-based Craig Mostyn group, whose major interests lie in the seafood industry; or to Eastern Australian processors JBS Australia or Teys Australia.

A statement issued this afternoon said Mr Forrest’s Minderoo Group had further signalled its strong belief in the future of Australia’s agricultural industry.

Harvey is WA’s largest beef processor, employing about 300 staff and processing about 145,000 cattle a year. It services a range of export and domestic markets including Japan, Korea, Indonesia, Taiwan, the Middle East and the United States.

Significantly, it is also WA’s only processor accredited to supply China, where Mr Forrest has close business connections through his mining interests.

Established in 1919 by Ernest Green, Harvey Beef is one of WA’s most iconic and best-known brands.

“It is now back in WA family hands,” this afternoon’s statement said.

Minderoo will further invest in upgrading the plant’s facilities to increase capacity in order to meet growing domestic and international demand for premium WA beef, both grass and grainfed, the statement said.

“I have always been a firm believer and an even stronger supporter of the Australian agricultural industry. Harvey Beef has been an iconic brand for almost a century and I am delighted to work with its team to ensure the business makes a significant and growing contribution to the State's economy; and Australia's agricultural industry for the next century,” Mr Forrest said.

“Following detailed discussions with the Chinese ‘leadership’, we are determined to ensure that the Australian agricultural industry’s future in China is just as bright as our mining future,” he said.

“We hope this acquisition will send a strong message of confidence in the future of the industry - to provide confidence to increase supply and make Australia the supplier of choice to meet Asia's long-term food security requirements.”

The former major shareholder in Harvey, Pacific Alliance Group, said it was pleased that Harvey Beef had been acquired by Mr Forrest’s Minderoo Group.

Harvey chief executive Michael Hughes, said management and staff were delighted that Minderoo had acquired Harvey Beef, and planned to continue to invest in in the plant’s high quality beef processing operations.

“We’re a proud Western Australian brand and are committed to getting on with the job to supply Australians and the emerging markets of the world,” he said.

"This is an excellent result not just for Harvey Beef, but for our suppliers and distributers all over Australia. The vision Mr Forrest has demonstrated will certainly be a bright and exciting future for Australia's agricultural industry," Mr Hughes said.

Located 140km south of Perth, Harvey has supplied the Coles Supermarkets group with beef since 2012 and places a priority on the highest standards of care and animal welfare, throughout the supply chain.

The acquisition of Harvey Beef was testament to Mr Forrest’s vision of expanding Australia’s agricultural trade into emerging markets and securing Australia as the pre-eminent most secure, reliable, highest quality food supplier in the region, today’s statement said.

Financial statements lodged with the Australian Securities and Investments Commission several months ago showed that Harvey Industries Group, which operates Harvey Beef, had revenue of $145m in the 2012 calendar year, up 8.4pc, for a gross profit of $12.2m, down 18.6pc. It recorded an after-tax loss of $9.3m compared with a $1.7m loss in 2011.

Harvey Beef was operated as a family business until its sale in 2006. In 2009, part-owners Elders and London-based Stark Investments sold their stakes in Harvey and Queensland processor, Kilcoy Pastoral Co, to fellow shareholder Harmony Group.

Pacific Alliance Group bought Harmony last year. Pacific Alliance Group is one of Asia's biggest private equity funds based in Singapore. The company has been trying to offload the investments for some time, and there have been numerous inspections of the Harvey facility over the past three years.

As reported earlier on Beef Central, Kilcoy Pastoral Co was sold recently to Chinese interests (click here to view earlier story.)   

Mr Forrest’s grazing arm, Minderoo Group, is based on the 230,000 hectare Minderoo, station in the Pilbara region. He added two further Pilbara properties formerly owned by tycoon Ric Stowe in January for a reported $4.5 million, taking his land assets in the region to 7300sq km.

The Minderoo property was established in 1878 by Twiggy Forrest’s forebear, Western Australia’s first premier, Sir John Forrest and his brothers. It would become home to four generations of the Forrest family before being lost by Andrew’s father, Don in 1998 due to drought and rising debt, before his mining magnate son reclaimed the land for $12 million in 2009.

PROMINENT Queensland beef producer Graham Acton is in intensive care in a Brisbane hospital following an accident at Clarke Creek campdraft between Mackay and Rockhampton yesterday afternoon.   

His son, Tom, who manages the family’s Croydon Station cattle enterprise near Marlborough, confirmed that his father had had a bad horse accident while competing in a draft yesterday afternoon.

Mr Acton was air-lifted to the Royal Brisbane Hospital’s intensive care unit overnight as his condition worsened. His condition this morning was described as serious, but stable, Tom Acton told Beef Central.

He said Graeme was in the hands of specialists, who were doing all they could to assist.

Graeme’s family was still gathering around him in Brisbane this morning. Brothers Evan and Allan Acton were en-route from their bases in Northwest and Central Queensland, respectively, as this report was posted.    

Australian Campdraft Association president Ian Atthow told Beef Central this morning that Mr Acton’s horse fell whilst competing in a draft at Clark Creek yesterday afternoon.

“He was treated by the ambulance officers that were in attendance immediately, and was then air-lifted to Rockhampton. During the night he was air-lifted to Brisbane by the Royal Flying Doctor Service  - that is all I know at this point in time,” Mr Atthow said.

“This morning all I knew was that he was still unconscious, but the family has asked for privacy so we’re all sitting and waiting to hear ourselves.”

Mr Atthow said the thoughts and prayers of the entire Australian campdrafting community were with Mr Acton and his family.

Graeme and his wife Jennie are keen campdraft enthusiasts who host one of Australia’s largest annual campdrafts at their showcase Paradise Lagoons Station outside Rockhampton each year. 

Documents produced under Right to Information legislation have shed further light on the circumstances that led to the deaths of 46 cattle on a Queenslsand Government owned research station last year.

46 heifers died from dehydration at the Swan’s Lagoon Research Station near Ayr in early May 2013, after they had been left in a closed holding paddock without access to water following a muster at the station.

A subsequent police stock squad investigation instigated by Queensland agriculture minister John McVeigh recommended that no charges be laid over the deaths.

Documents accessed under Right to Information legislation and reported by Fairfax media outlet the Brisbane Times late last week have shed more light on the investigation and the stock squad’s reasons for finding that no one should be held criminally responsible for the deaths.

The investigation report said that the incident was caused when a staff member at the station, who’s name was redacted from the report, accidentally locked the cattle in a paddock without access to water.

The staff member closed and chained a gate between two paddocks to prevent the cattle he was mustering from returning, but forgot to tell colleagues.

Injuries to another staff member meant a scheduled water-run was not conducted and the cattle were left without water for 12 days.

Stock and Rural Crime Investigation Squad Detective Sergeant Mark Hogenelst wrote in his investigation report that many of the deceased and surviving cattle showed barbed wire cuts, demonstrating that they had been trying to push through the paddock's fences to seek water.

Detective Sergeant Hogenelst said the deaths were due to an unfortunate set of circumstances and poor judgement on behalf of two staff members.

"I do not believe that any person has acted maliciously or intentionally to kill these cattle, and as such, not all of the elements for each offence can be satisfied, and I believe no offence has been committed," he said in his report.

Mr McVeigh said following the completion of the stock squad investigation last year that disciplinary action had been taken against those responsible for negligence and management procedures on the research station had been changed.

The redacted Queensland Police Service report released under RTI legislation can be viewed here