Business Archives - The Farmer Magazine https://thefarmermagazine.com.au/category/business/ Tue, 15 Oct 2024 05:02:12 +0000 en-AU hourly 1 https://wordpress.org/?v=6.7.2 https://thefarmermagazine.com.au/wp-content/uploads/2020/05/farmers-logo.png Business Archives - The Farmer Magazine https://thefarmermagazine.com.au/category/business/ 32 32 207640817 Don’t let discounts hit dairy farmers https://thefarmermagazine.com.au/dont-let-discounts-hit-dairy-farmers/ https://thefarmermagazine.com.au/dont-let-discounts-hit-dairy-farmers/#respond Mon, 14 Oct 2024 00:58:00 +0000 https://thefarmermagazine.com.au/?p=16762 A drop in milk prices on supermarket shelves could place downward pressure on the dairy industry, farmers have warned as the major supermarkets announce the first milk price cuts in over a decade.

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A drop in milk prices on supermarket shelves could place downward pressure on the dairy industry, farmers have warned as the major supermarkets announce the first milk price cuts in over a decade.

This month, Aldi joined Coles and Woolworths in dropping the price of their one litre, generic brand milk from $1.60 to $1.55, with two-litre and three-litre milk bottles also experiencing price reductions of five cents across the board.

NSW Farmers Dairy Committee Chair Malcolm Holm said while the price cuts would bring a welcome reprieve to households in a cost-of-living crisis, it was critical Australian dairy farmers did not bear the brunt of discounted prices on supermarket shelves.

“The cost of producing fresh Aussie milk is only going up and up for our industry, and yet the supermarkets are putting their milk prices down,” Mr Holm said. 

“While cheaper milk is good news for consumers, it’s important that farmers do not foot the bill for these price drops, especially as input costs keep climbing higher and higher in their businesses.

“Consumers are in a cost-of-living crisis – but so are our farmers, and we can’t let the dairy farmers bear the cost of these discounts when they’re already under such pressure.” 

As the nation’s competition watchdog continues to investigate the behaviour of the major supermarkets, Mr Holm said keeping a close eye on the pricing practices of the grocery sector would remain essential.

“We want checkout prices to come down because inflation is reducing and supermarkets are pricing their products fairly, not because farmers are paying the price,” Mr Holm said. 

“Milk prices that don’t cover the costs of production are forcing many farmers out of the industry, and as a result, milk production in Australia has hit a 30-year low.

“Our dairy farmers are incredibly tough, but the reality is they need fair prices to keep farming, and to keep putting that fresh Aussie milk in fridges day in, day out.

“We don’t want a future where milk prices for consumers skyrockets again because farmers have gone out of business and our milk supply has dried up.”

Read more:

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Costs and poor returns threaten food security https://thefarmermagazine.com.au/costs-and-poor-returns-threaten-food-security/ https://thefarmermagazine.com.au/costs-and-poor-returns-threaten-food-security/#respond Mon, 16 Sep 2024 10:49:50 +0000 https://thefarmermagazine.com.au/?p=16691 A new report reveals Australian vegetable growers are continuing to question their economic viability as

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A new report reveals Australian vegetable growers are continuing to question their economic viability as more than a year’s worth of low or negative margins threaten the long-term sustainability of the industry.

More than one third of commercial vegetable growers were considering walking away from the sector in the next 12 months according to the AUSVEG Vegetable Industry Sentiment Report.

Rising input costs, poor farmgate returns, workforce shortages, industrial relations changes, lack of funds to invest in innovation, and an overwhelming compliance burden were again identified as the key factors leading growers to reconsider their future.

AUSVEG conducted twice-yearly sentiment surveys, drawing responses from large, medium and small commercial vegetable growers from all Australian states and the Northern Territory to provide a current and cumulative picture of sentiment across the national industry.

National Food Plan

Highlighting the intense pressure being felt by commercial vegetable growing businesses, half of respondents to the most recent survey indicated they were financially worse off compared to mid-2023, and almost 30 per cent indicated they expected to be financially worse off in a further 12 months.

Challenging business conditions led to almost 50 per cent seeing their future business outlook as either very poor, or poor, and a further 37 per cent ranking their outlook as average.

Workforce shortages and labour costs have continued to feature among growers’ biggest challenges, with 46 per cent indicating they were struggling to source enough staff in full-time, part-time and casual positions, and a range of skilled, semi-skilled and unskilled roles.

Labour costs remained another major issue, averaging 38 per cent of a grower’s overall cost of production, and reaching as high as 71 per cent.

Visa changes threaten food security

Successive surveys also reflected changes in the workforce mix. Following adjustments to workforce schemes relied upon by growers, engagement with the Pacific Australia Labour Mobility (PALM) scheme reduced, and reliance on backpackers increased.  

More than 62 per cent of grower respondents to the survey also indicated the removal of the 88-day specified work requirement for working holiday visa extensions would have a severe or critical impact on their business.

The impact of some of these challenges on Australia’s food security were somewhat masked by recent favourable weather conditions and fewer supply chain disruptions. However, ongoing margin squeeze and difficult conditions, combined with any further set-back, could easily trigger a cascade effect that resulted in reduced production, higher consumer prices, and increased reliance on imported product.

Read the Vegetable Industry Sentiment Report

ag visa
The ag visa was crucial to build capacity to help the sector meet its 2030 target.

Specialist advice on workplace changes 

Rural businesses were encouraged to get in touch with a workplace relations specialist for an update on major changes to workplace laws and how they would affect farm businesses into the future. 

NSW Farmers Head of Workplace Relations Gracia Kusuma said new workplace laws that came into effect in July could have serious repercussions for farmers. 

“From the right to disconnect to changes in the definition of a casual employee and contractor, this new legislation introduces a number of changes to workplace regulations in place across Australia,” Ms Kusuma said.

“These changes will have a significant impact on farm businesses, and so now has never been a more critical time to get across what the latest workplace laws and regulations are, as well as how they could affect the way your farm workforce operates.”

Ms Kusuma said there were concerns not only about potential visa changes but also the whole suite of recent reforms to workplace laws, which would be covered in workshops hosted across rural communities.

“By breaking down these changes and how they affect day-to-day operations on-farm, these workshops aim to demystify our complex industrial relations landscape, and ensure your farm business can stay compliant and resilient well into the future,” Ms Kusuma said. 

“Staying informed is key in the current environment, and we have built these sessions around what farmers need to know and do to stay abreast of these changes as they come into play at an increasingly rapid pace.

“Each session is short, sharp and practical, lasting around two hours in total, and we’ve gone to great lengths to make it well worth the trip into town for anyone interested in coming along.”

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Supermarket price inquiries put farmers in the spotlight  https://thefarmermagazine.com.au/supermarket-price-inquiries-put-farmers-in-the-spotlight/ https://thefarmermagazine.com.au/supermarket-price-inquiries-put-farmers-in-the-spotlight/#respond Mon, 19 Aug 2024 04:11:28 +0000 https://thefarmermagazine.com.au/?p=16648 The cost-of-living crisis facing Australian families and supermarket price inquiries was the focus of a recent Farm Writers event in Sydney, where ACCC deputy chair Mick Keogh and Victorian Farmers’ Federation President Emma Germano discussed whether supermarkets were the ones to blame. 

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The cost-of-living crisis facing Australian families and supermarket price inquiries was the focus of a recent Farm Writers event in Sydney, where ACCC deputy chair Mick Keogh and Victorian Farmers’ Federation President Emma Germano discussed whether supermarkets were the ones to blame. 

As the Australian Competition and Consumer Commission (ACCC) continues to delve into its 12-month inquiry into supermarket pricing, farmers find themselves at the centre of a heated debate about fairness, competition, and the future of our food system. With allegations of price gouging and concerns over the cost of groceries, the spotlight is on the complex relationship between supermarkets, suppliers, and consumers.  

In January 2024, Prime Minister Anthony Albanese announced an ACCC inquiry into supermarket prices, responding to growing concerns over the cost of groceries. This investigation aimed to examine the relationship between wholesale, farmgate, and retail prices, as well as barriers to competition in the sector. Advocacy group Choice also received $1.1 million to “provide clear regular information on prices across a basket of goods”.  

The ACCC used compulsory information-gathering powers on supermarkets such as Aldi, Coles and Woolworths. The investigation included: 

  • barriers to greater competition in the sector 
  • the relationship between wholesale, farmgate and retail prices 
  • the challenge for other companies to enter the market 
  • the impacts online shopping, loyalty programs and changes in technology have on competition 
Oranges and apples

The inquiry began in March with an issues paper for stakeholder submissions, along with an online consumer survey. ACCC deputy chair Mick Keogh told a recent Farm Writers event the response to the survey exceeded expectations. 

“We received the highest number of responses we’ve ever received for a consumer survey, with 22,000 respondents. So it really highlighted the significance they see in the role of supermarkets in their lives,” Mr Keogh said. 

“The inquiry is looking at the role of supermarkets from a consumer perspective. It’s looking at the prices consumers pay, the arrangements consumers exercise, their ability to go to supermarkets and make choices. It’s also focused on the supply side, the situation of suppliers who engage with supermarkets.” 

“Supermarkets, especially the two majors, do have power. Do they exercise that to the detriment of the consumers? That’s a legitimate question.”

ACCC deputy chair Mick Keogh
ACCC deputy chair Mick Keogh
ACCC deputy chair Mick Keogh

Mr Keogh also noted there had been plenty of engagement with suppliers, in terms of submissions and also face-to-face meetings, with several showing hesitation in being involved and many others requesting confidentiality – something Mr Keogh said should come as no surprise to the farming community. 

A different perspective 

However, Victorian Farmers Federation President Emma Germano, speaking at the same Farm Writers event, described the supermarket price inquiries as a “smoke screen”, suggesting it’s a distraction from broader government policy issues affecting the cost of living. 

“Whilst I’d love to bash up the supermarkets today because that is what’s trendy and makes us all feel good, what we’ve all done is just run down this track of the best smoke screen I think that I’ve seen the federal government play in the last 10 years,” Ms Germano said. 

Ms Germano pointed out that the cost-of-living crisis had far more to do with government policies than supermarket practices alone. She argued that energy costs, industrial relations complexities, and rising labour expenses were significant factors impacting farmers’ bottom lines. 

“Supermarkets are making on average between two and three per cent net profit. Is that really exorbitant? Are we actually saying the supermarkets are making too much money?” Ms Germano said. 

“How can we talk about price gouging in this sense that there’s an absolute uproar about how expensive it is to buy things in the supermarket. So, as much as I hate supermarkets more than the next guy, this is rubbish.” 

“The simple one line should have been that it’s more expensive to buy meat at your butcher and it’s more expensive to buy vegetables from the market.” 

Ms Germano also said that problems between supermarkets and suppliers have been an issue for a significant period. 

Victorian Farmers Federation President Emma Germano
Victorian Farmers Federation President Emma Germano discusses supermarket price inquiries.

“The issues with the relationships between suppliers and the supermarkets, no doubt, are an ongoing issue. Is it good that we are starting to address that relationship? Yes, it is. But is it good that we’re letting the federal government get away with the fact that the biggest increase to the price of production are the things that they’ve done nothing about?” she said. 

Ms Germano claimed it was all well and good for federal Nationals leader David Littleproud to be talking about supermarkets now, but “why didn’t you do something about the supermarkets and those problems when the Coalition was in government?” 

Complexity a problem in supermarket price inquiries

Behind the headlines about supermarket price inquiries, profits and consumers was a complex web of challenges faced by farmers, Ms Germano believed. While supermarkets influenced farm businesses, they weren’t solely responsible for the cost-of-living crisis, she said, shedding light on the emotional and practical realities of farming. 

“We’re not businesses like other businesses due to the fact that we are unbelievably emotionally connected to our land. All the farmers that I know identify themselves as a farmer first and foremost before nearly being a human being,” Ms Germano said. 

She believed this deep connection to the land could sometimes lead to decisions that prioritised tradition over profitability.  

“Because of that emotional connection and the way that you’ve done things for three generations, you’ve got the sense of loyalty that you have to keep going, and that sometimes means that you make poor business decisions,” Ms Germano said. 

“We’re letting the federal government get away with the fact that the biggest increase to the price of production are the things that they’ve done nothing about.”

Victorian Farmers Federation President Emma Germano

“If you want to grow too many potatoes, you can expect that the potatoes are going to be very cheap and you’re going to create all these avenues where you are taken advantage of.”  

“And the suppliers are oversupplying the market all the time.  This overproduction can lead to price drops and create vulnerabilities that can be exploited by various market players, not just supermarkets.” 

Fresh food in supermarket

While the ACCC inquiry focused on supermarket practices, Ms Germano argued for a broader perspective on the challenges facing Australian agriculture: 

“Agriculture has so much to offer. You’re asking us to do everything for you, but we don’t value it. And I think that if the supermarkets really value it, Australian food production as part of their ESG (environmental, social and governance), I think the whole vibe would shift,” she said. 

“If the end goal is cheap food, that really bothers me because here’s a really easy way to make food cheaper – let’s just buy it all from South America and Asia – problem fixed. We’re not actually valuing manufacturing in Australia. Agriculture is still the manufacturing industry that is here right now. We’re not taking care of it, but we want to start thinking about what else we can manufacture.” 

This call for a more comprehensive approach to valuing Australian agriculture echoed sentiments expressed by other industry leaders, such as former NSW Agriculture Minister Niall Blair, who advocated for a National Food and Fibre Plan to provide long-term certainty for businesses and guide policy frameworks. 

As the ACCC inquiry progressed, the challenges facing agriculture remained multifaceted, including climate change, water scarcity, technological innovation, and shifting consumer preferences. 

Initiatives such as NSW Farmers’ “Feeding the Future” focus, the NFF’s 2030 Roadmap, and the Australian Agricultural Sustainability Framework, offered promising steps towards a more holistic approach to supporting and future-proofing Australian agriculture. These efforts recognised the need to balance productivity with sustainability, community trust, and adaptability to changing conditions. 

Both Coles and Woolworths, which together controlled roughly two-thirds the supermarket sector, rejected accusations of price gouging in the supermarket price inquiries. They asserted the increase in corporate profits was a result of improved productivity within their stores.  

But regardless of how those profits were generated, they came from Australian hip-pockets, something Australian politicians had woken up to. 

The ACCC will give an interim report to the federal government later this year with the final report due in early 2025. 

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Farming the unfarmed https://thefarmermagazine.com.au/farming-the-unfarmed/ https://thefarmermagazine.com.au/farming-the-unfarmed/#respond Mon, 29 Jul 2024 05:55:10 +0000 https://thefarmermagazine.com.au/?p=16619 Jeremy Clarkson has become a celebrity farming hero in the UK for exposing the realities

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Jeremy Clarkson has become a celebrity farming hero in the UK for exposing the realities of running a farm as a business in the hit show Clarkson’s Farm. In Season Three, Clarkson sets himself a ‘farming the unfarmed’ challenge to earn more from feral deer, pigs, goats, mushrooms and nettles on unproductive parts of his farm than from traditional cropping operations.

Watch Clarkson’s Farm on Amazon Prime. Pic: Amazon

“It’s good for the deer. It’s good for the trees. And it’s free food.”

That’s Jeremy Clarkson justifying the hunting of wild deer on his 400ha Oxfordshire farm, Diddly Squat, as one of his “farming the unfarmed” schemes.

Clarkson says his farm has become overrun with deer, which caused enormous damage to young trees and that he, along with other farmers, had been asked by the UK Government to reduce their numbers. Enlisting the help of the British Deer Society to humanely hunt deer on the farm, he then turns his kill into venison hotdogs for sale at the Diddly Squat farm shop.

Elsewhere on the farm, he forages for blackberries to make jam and nettles to make soup in his mission to unlock the potential of half his farm. An old war bunker is transformed into a mushroom growing tunnel, Clarkson moves his free-range pigs into the woodlands, and he buys goats to control woody weeds.

While the nettle soup idea turns out to be a disaster, the free-range pigs and Lion’s Mane mushrooms prove to be profitable, and Clarkson has since joined calls for venison to be put on UK school menus.

Your average Australian farmer does not have an unused bunker for growing mushrooms or have the financial resources of Clarkson, but the need to diversify a farm business to make it viable is relatable.

Native foods and botanicals, for example, are a growing niche market, that some farmers in NSW have tapped into on their unfarmed land. Strawberry gum, lemon myrtle, anise myrtle, and wattleseed are all now hot items for distilleries to add unique Australian flavours to gins and other spirits.

Clarkson says it was lot of hard work, but farming the unfarmed did prove profitable.

Kaleb Cooper and Jeremy Clarkson at the Diddly Squat farm in the UK's Cotswolds.
Kaleb Cooper and Jeremy Clarkson at the Diddly Squat farm in the UK’s Cotswolds.

The Clarkson’s Farm series is an honest portrayal of life for British farmers, and its limits of regulatory red tape, input costs, weather and farm profitability would ring a bell for Australian farmers.

Diddly Squat’s traditional cropping operations also made a profit, however Clarkson’s consultant, ‘Cheerful’ Charlie, takes all profits to buy seed and fertiliser for the following year, leading Clarkson to sum up the realities of running a farm as a business.

“I’m in the fortunate position of having other income streams,” the TV veteran says. “But if you’re a normal farmer and this is your full time and only job and you get two years when you don’t make any money, you’re screwed.”

Bringing venison to the menu

An estimated two million deer roam the British countryside, which is roughly the same as the feral deer population in NSW and Victoria.

Clarkson has been widely applauded by UK farmers and land managers for shining a light on the environmental impact of wild deer and the potential for producing a feral animal food product.

NSW Farmers similarly won broad support for an advocacy campaign that led to the removal of the protection status for deer in 2019. That allowed hunters in NSW to shoot deer, with landowner permission, on private land and send carcasses to licensed abattoirs for processing.

While COVID-19 restaurant lockdowns slowed wild venison’s uptake, an increasing number of chefs are putting it on the menu and championing it as a sustainable protein source.

“Australia has a unique scenario where we have millions of invasive deer causing harm that are incredibly nutritious and delicious to eat. Farmers want to see them removed just as much as conservationists do,” says Discovered Wildfoods Cofounder Tara Medina.

Venison backstrap. Pic: Discovered Wildfoods.
Venison backstrap. Pic: Discovered Wildfoods.

Discovered Wildfoods were one the first businesses to supply wild caught venison following the regulation changes and have taken and whole of supply chain approach to getting it on restaurant tables.

They process up to 5000 wild caught Sambar deer a year at two facilities in Albury and Beechworth in Victoria and work closely with professional hunters to harvest animals from private land.

“We would like to grow that number significantly because the latest estimate in Victoria alone is that there is over a million feral deer,” Tara said.

“90 per cent of our customers are in the food service sector, but the goal is to eventually have venison available as an affordable product at supermarkets for the wider consumer.

“It’s awesome to get recognition from chefs, but it’s a bigger accomplishment to get people to cook it at home and be excited by it, not intimidated by it. “

Sambar deer. Pic: Feralscan.

Tara, who is based in the Northern Rivers, said they focus exclusively on Sambar deer, meaning the only harvest area NSW is the southeast region.

“We think it’s the best eating venison and we set up a network of harvesters who are properly equipped to deal with a heavier animal. Fallow deer, which are more common in the rest of NSW and Queensland, are a lot lighter and lot gamier,” she said.

“A Sambar deer can be up to 250 kilograms and have more closer meat quality to beef. The number one hurdle you have to overcome is people perception of game meat.

“Venison from Sambar deer is a red meat protein source that is unrecognisable in terms of gameness.”

Tara said they get a 40 per cent carcass yield on human consumption cuts and the remaining bone and offal is used in the petfood industry.

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ABARES annual farm survey returns https://thefarmermagazine.com.au/abares-annual-farm-survey-returns/ https://thefarmermagazine.com.au/abares-annual-farm-survey-returns/#respond Fri, 26 Jul 2024 05:56:09 +0000 https://thefarmermagazine.com.au/?p=16601 The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is about to embark on its annual farm survey program collecting data from hard-working producers across Australia.

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The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is about to embark on its annual farm survey program collecting data from hard-working producers across Australia.

The information collected each year is integral in supporting decision-making about the future of Australian agriculture.

ABARES Executive Director Dr Jared Greenville said two surveys would be conducted – the Australian Agricultural and Grazing Industries Survey, and the Australian Dairy Industry Survey.

ABARES annual farm survey returns

“The farm surveys are a core part of the evidence base that industries and governments across Australia use to provide a health check on the sector, develop policy and respond to challenges, such as drought and trade disruptions,” Dr Greenville said.

The interviews would cover questions about farm structure, land use and the production and economic profile of the farm business for the 2023-24 financial year. Selected estimates for 2024-25 would also be collected.

“The success of the survey, and hence its value to industry and government, depends on the cooperation of participants selected to represent their industry,” Dr Greenville said.

ABARES officers would conduct face-to-face interviews with about 1900 selected farmers throughout Australia from mid-July to December.

For more information about the ABARES annual farm survey, contact ABARES Survey Collection by email at surveysabares@daff.gov.au or by telephone at 1800 026 308.

Fast facts

  • The Australian Agricultural and Grazing Industries Survey has been conducted continually since 1977-78 – this survey covering broadacre farms provides our longest time series with at present 46 years of data. The current sample is about 1600 farms.
  • The Australian Dairy Industry Survey began the following year (1978-79) and provides a time series of 45 years of data. The current sample is about 300 farms.

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Rural Bank mid-year Australian agriculture outlook https://thefarmermagazine.com.au/rural-bank-outlook/ https://thefarmermagazine.com.au/rural-bank-outlook/#respond Thu, 18 Jul 2024 06:37:31 +0000 https://thefarmermagazine.com.au/?p=16593 The Rural Bank mid-year outlook for Australian agriculture has been released, and despite mixed seasonal conditions driving contrasting production, it is broadly positive thanks to strong export demand, favourable price forecasts and improving seasonal conditions.

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The Rural Bank mid-year outlook for Australian agriculture has been released, and despite mixed seasonal conditions driving contrasting production, it is broadly positive thanks to strong export demand, favourable price forecasts and improving seasonal conditions.

Australian farmers encountered varied conditions over the first half of 2024. The ENSO and IOD both returned to neutral conditions in autumn. However dry weather continued to persist across both Western and South Australia. This resulted in challenging winter crop planting conditions. Pasture growth was also impacted. The east coast reported much more favourable soil moisture conditions in comparison.

Commodity prices broadly returned to levels last seen at the end of 2020 despite some price volatility seen over the past six months. The livestock sector was a standout performer with the price index rising nine per cent over the first half of the year. Prices within the cropping sector were steadier in comparison.

Farmer in a paddock

Both the domestic and global economy continued to decelerate over the first half of the year. A relatively low Australian dollar has helped to offset this and provided support for export demand. Operating conditions for Australian farmers will continue to evolve over the back half of 2024.

The Rural Bank mid-year Australian agriculture outlook for 2024 covers six major agricultural commodities. The report provides an in-depth perspective on supply, demand, and price expectations in the last half of the year. Key changes in the climate and carbon space are also explored. The Rural Bank mid-year Australian agriculture outlook aims to help Australian farmers make informed decisions by presenting a detailed view on what lies ahead.

Read the reports below:

The year ahead according to Rural Bank

According to the Rural Bank mid-year Australian agriculture outlook Australian farmers can look forward to the second half of 2024. This is driven by strong export demand and favourable price forecasts. Challenges from a consumer spending perspective remain, with a dry start to the winter crop growing season also a concern. Although, the prospect of a La Nina developing later in the year could provide significant benefit to producers.

Farm at sunrise

The production outlook for the coming six months is very reliant on how conditions develop over winter and spring. This is a result of the dry autumn which has impacted soil moisture levels across western and central Australia. The Bureau of Meteorology (BOM) are forecasting typical rainfall from July to September across eastern, northern, western regions of Australia. Though below average rainfall across Tasmania is likely. The improved forecast follows a dry autumn and will boost winter crop potential. While also improving pasture growth. Despite the typical rainfall forecast, the potential for a wetter back half of the year remains. The continued cooling of sea surface temperatures is driving a shift in the ENSO. Current climate modelling is suggesting there is 50 per cent chance of a La Niña developing from August. This would see increased rainfall across eastern and central Australia. This would prove particularly beneficial for growers in South Australia, Western Australia and western Victoria. The BOM are also forecasting maximum and minimum temperatures as very likely to sit above average across Australia. This may see a reduced risk of frost, which is of particular benefit to the cropping sector.

Global forces on Australian agriculture

Further stability in the global trade environment has been a positive for Australian agriculture in the first half of the year. Expanded trade access into key markets will lift exports across key commodities. India’s recent removal of tariffs on Aussie chickpea imports will have a large benefit. This has resulted in a significant boost to local prices and planted area for the coming season. While an extension to the tariff free period on lentil imports was also a positive for producers.

Shipping Australian exports to Indonesia

Growth in volumes exported to India are anticipated over the next six months. Meanwhile, the trade relationship with China, our largest export market, has continued to improve. The removal of trade restrictions on five key meat processing centres will support export demand for beef. While the removal of punitive tariffs on Australian wine exports into China have also been welcomed. Demand from our key Southeast Asian markets also remains strong.

Unfortunately, global freight rates remain elevated. These higher freight costs will continue due to tight vessel supply and strong global demand. Meanwhile, Ukraine has ramped up their grain exports over the last six months. However, the potential for escalating conflict across both eastern Europe and the Middle East remains. This will continue to pose a significant risk to global trade over the next six months. These risks are on display with the ongoing disruption to trade in the Red Sea. Global freight is continuing to be rerouted, increasing costs as a result.

Economic outlook

The Rural Bank mid-year Australian agriculture outlook from an economic perspective is mixed. Domestically, household income is expected to improve. This is on the back of tax cuts and other fiscal support. However, domestic demand is not expected to lift significantly from current levels. Most households are expected to save rather than spend the additional income. Inflation is forecast to moderate to near three per cent by the end of the year. A surprise rise in domestic inflation data has increased the likelihood of a rate increase in the second half of the year. Interest rate cuts aren’t anticipated until mid-2025 as a result.

Drone aerial photograph of the township of Parkes in regional New South Wales in Australia

From a global perspective, China’s economy is expected to continue slowing over the next six months. Reducing global interest rates will provide some positive support from an economic perspective. In contrast, the Australian Dollar will edge towards 70 US cents. This would weigh on Australia’s export competitiveness to a small degree. Farm input costs are easing despite remaining above long-term averages. Fertiliser and diesel prices will sit lower, particularly in comparison to the second half of 2023. A rising unemployment rate is expected to result in greater labour availability, particularly in Q4.

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CHOICE releases first quarterly report on supermarket prices https://thefarmermagazine.com.au/choice-releases-first-quarterly-report-on-supermarket-prices/ https://thefarmermagazine.com.au/choice-releases-first-quarterly-report-on-supermarket-prices/#respond Fri, 21 Jun 2024 01:58:33 +0000 https://thefarmermagazine.com.au/?p=16542 Consumer group CHOICE has released its first quarterly, government-funded report on supermarket prices across Australia. It comes after an extensive campaign from NSW Farmers to shine a light on the extreme power imbalances felt by farmers in the food supply chain sparked several inquiries into pricing practices and purchasing methods.

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New research finds less than a dollar separates the big two supermarkets, while Aldi has the cheapest groceries nationwide.

Consumer group CHOICE has released its first quarterly, government-funded report on supermarket prices across Australia.

As part of the research, CHOICE sent mystery shoppers to 81 regional and metropolitan supermarkets across the country, including Aldi, Woolworths, and Coles, to record prices for 14 common grocery items.

The research revealed Aldi’s basket was about 25 per cent cheaper than baskets at Coles or Woolworths.

“Aldi was the clear leader on value for money in our first supermarket basket survey for 2024, with our basket of 14 products costing just $51.51 – coming in at about 25% cheaper than Coles or Woolworths,” CHOICE CEO, Ashley de Silva said.

CHOICE CEO Ashley de Silva
CHOICE CEO Ashley de Silva

“Grocery prices at Coles and Woolworths are very closely matched, with only 75 cents separating the prices of our basket of 14 items without specials. Coles was the most expensive at $69.33, while the basket at Woolworths came in at $68.58.”

CHOICE’s supermarket price research was set to continue every quarter for the next three years, helping people to stay on top of where they can find the cheapest groceries.

“We look forward to providing consumers across the country with clear, reliable information about supermarket prices. This kind of transparency is more important than ever as the cost-of-living crisis continues, and prices of basic grocery items climb,” Mr de Silva said.

Scrutiny increases

It comes after an extensive campaign from NSW Farmers to shine a light on the extreme power imbalances felt by farmers in the food supply chain sparked several inquiries into pricing practices and purchasing methods.

Earlier this year, NSW Farmers warned Australia could be unable to feed itself while farmers would be driven out of business unless radical action was taken to reform the supermarket retail sector.

At a Senate Select Committee investigation into the factors driving soaring supermarket prices, NSW Farmers Vice President Rebecca Reardon said ultimately Australia’s food security was at stake, continuing calls for meaningful competition reform until fair prices for farmers and families were achieved.

“It’s farmers – not the supermarkets – who are the real fresh food people, and if the market dominance of these big two supermarkets means farmers struggle to make a living, we could very well see a future where Australia can no longer feed itself,” Mrs Reardon said.

“This would be terrible not only for Australian farmers and for families right across the country, but also for the tens of millions of people overseas who rely on the food we grow and export.

“We can’t afford to miss the opportunity to solve this problem that has been in the ‘too hard’ basket for too long.”

Six recommendations to the inquiry for reforming the supermarket sector were put forward by NSW Farmers ahead of the hearing, which was held at Orange in the state’s central west on Tuesday.

“We have proposed a constructive, considered approach to overhauling the sector, starting with making the Food and Grocery Code of Conduct mandatory and more enforceable with real penalties for its breach,” Mrs Reardon said.

“Increasing price transparency, developing options to add new supermarket competitors, and introducing divestiture powers to correct gross market power imbalances are just some of the other recommendations we have put forward.

“The gross profit margins of supermarkets are only continuing to increase, so there must be controls in place to not only identify any unfair pricing practices, but actually bring these to account.”

As the inquiry continued, Mrs Reardon said significant changes to competition law and policy were essential if effective outcomes for farmers and consumers were to be secured.

“In recent times, we’ve seen governments in Canada and New Zealand drive significant competition reform within their retail sectors – and we must do the same if we want healthy, home-grown food on Australian dinner tables,” Mrs Reardon said.

“Unless there is real and complex reform to how we govern these supermarket superpowers, we will continue to lose farmers and Australia will one day wake up to discover it can no longer feed itself.”

Grocery basket items

CHOICE’s full grocery basket consisted of 14 items, 12 of which were packaged products, either national brand or comparable supermarket brand/budget brand options (including beef mince and milk), with two fresh fruit and vegetable items (apples and carrots) completing the list:

  • Apples
  • Carrots
  • Weet-Bix
  • Sliced white bread
  • Flour
  • Penne
  • White sugar
  • Tea bags
  • Tinned diced tomatoes
  • Block of tasty cheese
  • Full-cream dairy milk
  • Frozen peas
  • Beef mince
  • Butter

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Avian Influenza detected in NSW https://thefarmermagazine.com.au/avian-influenza-detected-in-nsw/ Thu, 20 Jun 2024 11:00:50 +0000 https://thefarmermagazine.com.au/?p=16535 The NSW Government enacted its emergency biosecurity incident plan on Wednesday 19 June 2024 to

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The NSW Government enacted its emergency biosecurity incident plan on Wednesday 19 June 2024 to contain the detection of avian influenza in the Hawkesbury district on a poultry egg farm.

Following testing by the CSIRO national research laboratory it was confirmed that Avian Influenza H7N8 has been detected in a mixed barnyard and free-range poultry farm in the Hawkesbury.

In response, the NSW Government rolled out its biosecurity incident plan, developed in line with the national approach for avian influenza.

The following actions were undertaken within a 24 hour period:

  • Tested samples with CSIRO to detect the bird flu type
  • Locked down the affected egg farm
  • Issued a control order to depopulate the farm of its birds and to dispose of the remains in a biosecure manner working with the EPA on disposal
  • Commenced depopulating the farm, in a humane manner, following Australian Veterinary guidelines.
  • Activated the funding agreement with the Commonwealth government, egg industry, and other states, to release compensation funds for directly impacted producers
  • Spoken with surrounding chicken industry farms, which activated their bird flu plans and locked down their businesses.

On Thursday another control order to legally lock down the movement of machinery, materials, animals and transport within a radius of 2 kilometres of the affected egg farm was put in place.

The localised lockdown order would cover three large commercial poultry farms that would be monitored for any signs of the virus. There was to be no movement of eggs or birds or machinery out of the zone during the control order.

NSW Farmers was working with the Department of Primary Industries to ensure any affected egg or poultry producer had the support they needed when they needed it.

“Our focus is on biosecurity for all farmers with poultry including rapid identification and containment to help safeguard the health and safety of our birds,” a spokesman said.

“It is important to report any symptoms in birds to the Emergency Animal Disease Hotline on 1800 675 888, including in backyard hens.”

For more information, please visit the NSW DPI website.

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NSW State Budget 2024  https://thefarmermagazine.com.au/nsw-state-budget-2024/ https://thefarmermagazine.com.au/nsw-state-budget-2024/#respond Thu, 20 Jun 2024 10:49:46 +0000 https://thefarmermagazine.com.au/?p=16528 State Treasurer Daniel Mookhey has handed down a budget full of red ink, with years

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State Treasurer Daniel Mookhey has handed down a budget full of red ink, with years of deficits ahead. But it wasn’t a classic slash-and-burn austerity budget either, with funding for road repair and biosecurity efforts. 

The key takeaway for agriculture was a surge in road repair and biosecurity action, which were top priorities for NSW Farmers members. In addition, the increase in expenditure on projects and capital works in the Department of Regional NSW and Local Land Services was positive, and were expected to help support productivity gains in agriculture. However, the lack of attention to workforce skills and attraction, and land use issues inflamed by the accelerated rollout of renewable energy zones that were impacting farmers, was disappointing.

Budget analysis

Transport

Regional roads were a major winner in the budget, with $3.3 billion earmarked for repairing local and state roads that have been damaged by major floods. In addition, a $282.7 million Regional Roads and Transport Recovery Package will help to cover some of the funding shortfalls that plagued local roads since the most recent floods across the state. Despite the scale of the repair funding however, it wasn’t quite the sustained increase in the base Road Block Funding that NSW Farmers asked for that would have helped avoid a repeat in the future.

Unfortunately, Fixing Country Rail projects actually decreased in funding this financial year, with only $18.6 million in works planned, compared to $59.9 million in the previous year.

Biosecurity

Biosecurity funding was also a big winner in the budget with $945.7 million earmarked for a range of measures, including $25 million for the Biosecurity Laboratory Defence for science, surveillance and prevention, $55.3 million for Red Imported Fire Ant and $13.2 million for Feral Pig Control. While the amount earmarked for feral pigs wasn’t the $20 million per year requested by NSW Farmers, the large pool of funding set aside for Biosecurity leaves the door open for a ramped-up effort.

Productivity

There were scant details in the budget to confirm if the Department of Primary Industries’ budget was being maintained, including the Young Farmer Business Program. However, the funding for Department of Regional NSW (DPI’s parent organisation) projects increased substantially from $85.1 million to $127.4 million, including a $4.8 million upgrade to the Orange Agricultural Institute, and a $2.9 million upgrade for the Soil Conservation Fleet. Local Land Services expenditure also increased by 12 per cent to $292.7 million from the last financial year.

Workforce

While the AgSkilled program was not mentioned in the Budget, overall funding for Smart and Skilled was maintained at $95 million, which made it a key area to watch. Likewise, while there was a focus on regional workforce recruitment for health workers in the budget ($200m for housing for key workers), there was nothing to alleviate labour force concerns for agriculture.

Land Use

The NSW Farmers submission on land use focused specifically on the issues around renewable energy zones, and the associated community and economic impacts. However, while the budget did identify $3.1 billion over four years for the Transmission Acceleration Facility to help fund energy infrastructure projects faster than ever, there was nothing to assist with the impacts that such an acceleration may inevitably have on the agricultural landscape.

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Ruminati: a farmer-led carbon emissions calculator https://thefarmermagazine.com.au/ruminati-a-farmer-led-carbon-emissions-calculator/ https://thefarmermagazine.com.au/ruminati-a-farmer-led-carbon-emissions-calculator/#respond Mon, 15 Apr 2024 05:55:21 +0000 https://thefarmermagazine.com.au/?p=16219 Australian farmers have developed a farmer-led online carbon emissions calculator, empowering producers to track and

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Australian farmers have developed a farmer-led online carbon emissions calculator, empowering producers to track and validate on-farm climate action throughout the supply chain.  

There’s been a lot of talk over the past few years about the need for farmers to reduce their carbon footprint but not a lot of practical tools to help them do so.

Enter Ruminati. This farmer-led initiative has teamed up with climate scientists, farm data professionals and software engineers to help Australia’s agricultural industry meet its goal of becoming carbon neutral by 2030, one farm at a time.

Beef cattle farmers Bobby Miller and Will Onus from the Gundagai area had a watershed moment in early 2021 when they read an article comparing beef producers with coal mining in terms of the carbon emissions they produce. They saw a lot of carbon emission reduction target-setting bandied about at the government and industry level, but not much was being done to help farmers use their existing farm data to establish their baseline and plot a path towards emissions reduction.

“That’s a big bottleneck,” Miller explains. “As soon as we saw the problem, we couldn’t really unsee it. So, we decided to set up a company in late 2021 and put together a multi-skilled collaborative team to address what is essentially a data problem.”

Founders Bobby Miller and Will Onus.

First, they approached the University of Melbourne’s Professor of Sustainable Agriculture Richard Eckard, who created the admittedly rather complicated greenhouse accounting framework (GAF) for a broad range of farms. 

Next, they contacted John Francis of Agrista, a company that has a background in farm data analytics, and asked him to help them simplify the GAF while retaining its accuracy.

They then employed software design group, Nakatomi, to create an online version that would be simple and easy for farmers to fill out.

Finally, they brought on strategic advisor Peter Leihn who has extensive expertise in technology commercialisation, to become Ruminati’s CEO to help lead the company in its expansion phase.

Ruminati launched its baseline management tool in April 2023.

“We believe that the push-pull dynamic of this collaborative approach has enabled us to build a stronger, more effective, user-friendly platform for farmers to use. We’ve placed strong emphasis on farmer knowledge and perspective, accurate farm data that is fully secure, and digital ease of use,” says Miller. “We go above and beyond the codes and frameworks listed in data privacy and security as it’s the life blood of our business. Farmers’ input data stays in their private account. It isn’t shared or monetised in any way. The emissions data that our system generates is shared but only after the farmer explicitly agrees to do so and it can be withdrawn at any time.

“Offering farms a baseline calculator tool is all good and well and it should be free,” he adds. “But there’s no business model here. So, we’ve added products, such as the ability to calculate emissions intensity and plan reductions via bespoke models as well as a baseline tool for feedlots and processors.”

Thoughts behind the scenes

“There are numerous agricultural baseline accounting tools available right now, including the late February beta launch of the non-profit Agricultural Innovation Australia’s (AIA) Environmental Accounting Platform (EAP), an online carbon calculation engine for Australia’s agriculture, fisheries and forestry sectors,” explains Eckard. “I’m a technical consultant on this project. It’s a free, digitised, accessible and standardised platform to calculate carbon footprints at a commodity, enterprise and whole of business level and can be used by farmers, supply chain participants, agribusiness, and financial institutions.

“But none are offering the commercial services to help farmers reduce their carbon emissions like Ruminati is,” he says. “They’ve done their homework.”

“Ruminati’s special advantage is that after a baseline is established, it gives farmers a range of options to consider as a way to move forward to reduce their emissions.”

Richard Eckard, University of Melbourne’s Professor of Sustainable Agriculture

Miller of Ruminati, in effect, concurs. He says that 99 per cent of farmers have not done their baseline reporting because up until now it’s simply been too onerous. He believes that if pressure is put on farmers to do reams of paperwork for a completely traceable auditable baseline – they won’t do it. Ruminati has developed an excellent facsimile to help farmers easily establish their baseline by using their existing farm data.

A farmer onboarding field day “Burgers and Baselining” at Cooininee in Jugiong saw producers from around the region get face-to-face support for tracking and understanding their emissions, and creating future-facing emissions reduction plans.

Ruminati is still in its pilot phase and has developed partnerships with supply chain members, such as McDonalds, as well as the CBA and livestock finance provider, StockCo. This is a rapidly evolving space. 

“We’re exploring what a continual working relationship might look like based on what the supply chain wants and what we can provide,” he says. “It’s conceivable that Ruminati will move forward in a consulting capacity to these businesses.

“We need the supply chain to be on board before we sell the larger concept to farmers. We have to get the value proposition right for them. These are all emerging markets, and everything is a bit up in the air, but we believe it’s good to give farmers literacy about their carbon emissions.”

Moree-based cropper and NSW Farmer board member, Oscar Pearse, says that Ruminati has a number of advantages for farmers over other data management systems. But for any farmers considering an emissions reporting tool like Ruminati, understanding commercial and regulatory frameworks is key. 

NSW Farmers Association committees have been discussing aspects including:  

  1. Farmers must understand how their data is treated and control its exchange. Baseline reporting tools require farmers to map their farm and it’s important to ensure that these data sets are secure. Farmers should ensure that all data service providers are compliant and/or certified with the National Farmers Federation (NFF) Farm Data Code to ensure landholders control how their private data is exchanged (Ruminati is compliant and in the process of getting certified). 
  2. Farmers should understand what payments or premiums banks and buyers offer before sharing data. Once farmers begin reporting their annual emissions, will supply chain partners start to demand emission reductions from a baseline point without payments or reimbursement? Will this set up targets that are impossible for farmers to meet?
  3. State farmer organisations and other peak bodies are concerned that models based on the GAF don’t yet account for a range of beneficial farm level sequestrations, especially existing transient pasture carbon or even permanent carbon sinks offered by trees. Both the NFF and NSW Farmers continue to call for system and rule changes which ensures farmers can count and be recognised for the more accurate total picture of farm emissions.
  4. Many multinational companies operating in Australia have emission reduction goals, which don’t account for the Australian agricultural context and which may simply be passing impossible demands onto farmers. State farmer organisations and other peak bodies may need to develop collective bargaining tools or codes of practice to ensure the cost burdens don’t fall on farmers.

“While these aspects demand ongoing advocacy work, the fact that Ruminati gives farmers a safe and secure way to report, and a tool which can adapt as rule improvements come in, makes them an ideal choice,” says Pearse. “And on the plus side, in the process of making their first annual report, farmers might discover some easy improvements to make that will both reduce their emissions and increase
farm profitability.”

Miller agrees. “We’re seeing farms that are implementing tactics to lower emissions are also showing higher efficiencies and productivity. Healthier soil, better water retention, lower methane emissions also equate with better feed efficiency, higher fertility rates, and higher turnoff.”

If you enjoyed this piece on Ruminati, you may like to read about other great innovations such as how science and tech are improving food security.

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