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Northern Rivers & Rural News

Australian dairy at a critical juncture – industry report

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Australian dairy at a critical juncture
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Australian dairy at a critical juncture – industry report

The Australian dairy industry is at “a critical juncture”, with recent record-breaking profitability in the sector offering a solid footing to reboot much-needed growth in milk production, according to a new research report.
The report, Australian Dairy Industry: At an Important Juncture, by agribusiness banking specialist Rabobank, says “after a rollercoaster ride” over the past decade, Australia’s dairy sector has experienced a remarkable turnaround, underpinned by favourable seasonal conditions, high farmgate pricing and a shift in the balance of power within the supply chain (with increasing competition for milk supply and the introduction of the Dairy Industry Code of Conduct).
But capitalising on this current strong position to invest in expanding national milk production will be “vital” for the future success of Australia’s dairy industry, the report says, to take advantage of growth opportunities in export markets.
Report author, Rabobank senior dairy analyst Michael Harvey said in recent years the Australian dairy sector had navigated a “perfect storm of widespread drought, isolated bushfires and floods – all coupled with a severe global market and unprecedented industry disruption and instability”.
“This turmoil resulted in a squeeze on the profit pool and a drop in milk solids produced,” he said. “It also zapped farmer confidence, which ultimately heralded a major shift in how the supply chain operates.”

Solid footing
Right now, though, the report says, the dairy industry finds itself on a solid footing, with record-breaking profitability for many. “The southern Australian dairy region is on track for a third consecutive season of outperforming industry benchmarks for average EBIT (earnings before interest and tax). And there has been a lift in confidence levels and investment intentions,” it says.
However, Mr Harvey said, while some recovery in national milk production has been underway, so far, the milk supply response has “underwhelmed initial expectations”, despite the period of farmgate profitability.
“The Australian dairy supply chain processed 8.86 billion litres of milk in 2020/21, 950 million litres less than in 2014/15, with 55 per cent of the fall coming from the northern Victoria irrigation system,” he said.

Milk growth momentum
Mr Harvey said expanding Australia’s national milk supply is “essential to the growth prospects of the Australian dairy industry as it aims to construct sustained growth outside of a maturing domestic market”.
“In contrast to the local market, key dairy export markets have considerable headroom for growth in the coming decade, particularly in emerging Asia,” he said. “This means offshore markets provide plenty of ‘blue sky’ and exports will remain the engine of growth for the sector.”
However, without sufficient milk supply growth, the Australian sector will face challenges penetrating growth markets offshore, the report says.
“A vibrant industry requires a strong presence in growing export markets and being able to fully leverage existing access to Asian supply chains,” Mr Harvey said. “Australian dairy has some strong global market credentials, but a lack of a sustained growing milk pool is a weakness to overcome.
“Even with the mature domestic market, demand from key customers is outstripping supply growth, and many customers in the industry will require more volume over the next decade.”

‘Missed’ opportunity
The report says with the Australian dairy supply chain short of milk solids and the foundations in place for a period of investment “on farm and for milk production growth”, the stage is set for the industry to take advantage.
“If this strong run of healthy farm profitability, elevated investment ambition and positive investment outlook does not result in some well-executed long-term investments, it will be a missed opportunity for the industry in reigniting growth,” Mr Harvey said.
“And to fully unlock growth, significant long-term capital investment is required to increase efficiency and production capacity.”

Profitable investment
The Rabobank report says Australia’s dairy sector is expected to provide profitable capital investment opportunities for farm businesses over the next decade.
“While a transformational lift in profitability is not expected, there is a compelling case that the industry may outperform the previous decade in terms of EBIT performance,” Mr Harvey said.
The report notes investing for long-term growth will not be the right strategy for every dairy farm business.
“While a growing industry is vital for the wider sector, the reality is that farm businesses should only invest in growth if there is a profitable and sufficient return based on any planned investment strategy. And for enterprises willing to invest, a well-structured plan and consideration of capital at risk is required,” he said.

Changing supply chain

A close watch also needs to be kept on the changing dairy supply chain, with further shifts, consolidation and rationalisation expected in the coming decade.
“This constant supply chain evolution – which includes a variety of dairy company business models with very different product mixes, manufacturing footprints and growth priorities – provides increased options for dairy producers and presents risks and opportunities for farm businesses,” Mr Harvey said.
The Rabobank report says a focus on reducing environmental impacts throughout the dairy supply chain will also remain a consistent theme over the coming decade.
“There is a goal to reduce emissions intensity by 30 per cent from 2015 levels by 2030, with more ambitious targets also being considered,” Mr Harvey said.
“It is important to take a long-term view on the opportunities that will come with these investments, including productivity and efficiency gains, carbon sequestration incentives, and potential access to high-margin and/or high-growth markets.”

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BROADWATER FERRY

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BROADWATER FERRY

 

The history of Broadwater has largely revolved around the sugar mill. In 1863 Henry Cooke and Alexander McDonald became the first people to select land in the area. To begin with, sugar was grown and crushed on the small private farms in the region. The CSR opened the Broadwater Sugar Mill in 1880.

Broadwater is a small town in the Richmond Valley on the Richmond River. In 1978 CSR sold the mill to the newly formed New South Wales Sugar Milling Co-operative, which established its head office in Broadwater. Before Broadwater was named it was called “McDonald Town”.

In 1993 there was concern over the Red Azolla Weed that was infesting the Richmond and Wilsons River. The plant that was like a fern was dumped at the top reaches of the Wilsons River and the recent rain moved the infestation down river as far as Empire Vale.  This weed was playing havoc with the wire ropes that guided the ferry across the river. Every now and again the ferry would have to stop and clear the weed off the wire ropes.

Floodwater has always been a problem to Broadwater due to the local catchment low gradient floodplain. Filling up in Tuckean Swamp, was the result of Wilsons River breaking its banks at Tuckurimba and spreading out across the farmland. This floods the area across the river from Broadwater around Dungarubba and Bagotville.  Floodwater then flows downstream to Broadwater.

Hauling Cane by barge to the Broadwater Sugar Mill - 1965

Hauling Cane by barge to the Broadwater Sugar Mill – 1965

Richmond River Herald – 12/7/1912

At the last meeting of the Tintenbar Shire Council they were setting out the estimated cost of establishing and maintaining – a ferry at Broadwater.

  • Hand -geared punt – 28 feet by 12 feet – £250
  • Wire Rope – £50
  • Piles for guide – £50
  • Ferry Boat – £18
  • Incidentals – £18
  • Total – £368

Cr. Whipps suggested that Gundurimba Shire be asked to go in with a share of the coast as it is on the boundary of two councils. The approaches to the ferry were causing a little concern as they would continually silt up, even after dredging.

For years a bridge was discussed. Then in 2001 their dreams come true. With help of $500,000 over ten years toward the cost from Lismore City Council (on the north side) and Richmond Valley Council (on the south side) kicked in $250,000 each on top of the $1,4m from the Federal Government. Coincidentally, the bridge was officially opened the day the NSW sugar cane harvest started. The bridge’s centre span lifts to allow high-mastered craft through.

Deputy Prime Minister Mr John Anderson, Mr Ian Causley, Mayor of Lismore Mr Bob Gates and Mayor of Richmond Valley Council Mr Col Sullivan at the Opening of Broadwater Bridge - 13 - 6 2001

Deputy Prime Minister Mr John Anderson, Mr Ian Causley, Mayor of Lismore Mr Bob Gates and Mayor of Richmond Valley Council Mr Col Sullivan at the Opening of Broadwater Bridge – 13 – 6 2001

Deputy Prime Minister and Minster for Transport, John Anderson, cut the ribbon and unveiled the plaque to link the northern and southern sides of the Richmond River with a $3,000,000 structure, replacing a six-car ferry. It was a proud day for Co-operative chairman, Jim Sneesby, as he stood in the middle of the six-span structure and only a couple of kilometres from his own cane farm.

A very proud man on that day 3rd June 2001, was 102 years old, Peter Bolton from Broadwater. Peter was a special guest. He remembered those early days of the ferry when it had to be winched across the river. He had lived in Broadwater all his life.

Now with the new highway stretching along the New South Wales Coast another bridge has surfaced. It is 980 metres long and the second longest bridge built as part of the Woolgoolga to Ballina upgrade.

Memories:

Bert Sneesby: The following account by the Late Bert Sneesby of his memories of the Broadwater Ferry was provided by his daughter, Evelyn Wunch – 1/1/1982.

“When I first crossed the Richmond River at Broadwater on the Broadwater ferry, it was a very small one worked by hand. I came with my parents, brothers and sisters to reside on a cane farm my father had acquired in 1904 from Tucabia on the Clarence River. I resided there and worked until I retired in 1970 at the age of 76 years.

The ferry was operated on a toll system, one penny for a foot passenger, threepence for a horse and rider and sixpence for a two wheeled vehicle. Schoolchildren were free. A rowing boat was provided for foot passengers. There were no set hours, it was a 24 hour a day job.

After a few years tenders were called for working the ferry and the successful tenderer received 11 pounds per month. Later in years a small engine was installed on the ferry which made it a lot easier. Although the engine would not always do the work, then it was back to the old handle. I have been on the ferry when there was a full load and a heavy north easterly wind blowing, the waves would then break over the ferry to a depth of six inches.

When they were cleaning the water hyacinth out of the river, many a time I have had to use a cane knife to cut it off the wire and sometimes an axe was used to cut away willow branches. Around 1927 the ferry sank and was not replaced for three weeks. In 1953 a large new ferry was constructed and went into commission with Mr E. Patch as the ferryman.

During the big flood of February 1954, the ferry ropes were not disconnected in time and the wire anchorage was pulled from the approach leaving the ferry swinging against the mangroves on the eastern side of the river until the flood recede”.

Broadwater Bridge on Opening Day 13/6/2001

Broadwater Bridge on Opening Day 13/6/2001

Robert Maxwell: I can remember the time when the Nation stopped to view the America’s Cup. This was in September 1983. I was travelling across the Broadwater ferry with my workmates from the Broadwater Sugar Mill, Ray Hunt and Bruce McCaughey when the Ferrymaster had his trusty TV going. Even though the ferry always had a knock in the engine where this played up with the reception, we did see it all happen.

Jennifer Sauer: Our Dad, Col Sauer, worked on the Broadwater ferry. I remember fishing off the Broadwater ferry and catching many a flathead. Also recall our mother showing us where they sank the Bagotville ferry. This ferry can still be seen at low tide.

Bert Plenkovich: Way back in those early days I was in a dance band with Bruce Nicholas and Vin McGuire where we would be employed to play at the dances in the local halls around the district. Those nights when the ferrymaster knew I was out he would have the ferry waiting for me in those early hours of the morning.

Ferrymen: Fred Harwood (who was in charge for 20 years), Mr Adams, Dave Adams, Steve Haurigan,  V. Rogers, Frank Williams Richard Eyles, Barny Hyde, Stan Rose, Bill Davis, Laurie Clifford, Barry Watts, Gordan Smith, Steve Corrigan, Tom Rose, Alan Collis, Cameron Mackie, Clive Dawmah, Jack Roberts, Mr S. Stevens, R. Dixon, W. Grill, A. Davis, E. Patch, S. Williams, Clarrie Davis, Vic Davis,  H. McLaren, Col Sauer and Warren Robinson.

Bagotville Ferry: Two Ferrymen that missed out from story, were Jack Robinson and Bert Peterson.

Broadwater School Children at the Opening of Broadwater Bridge 13 - 6 - 2001

Broadwater School Children at the Opening of Broadwater Bridge 13 – 6 – 2001

Ref: Northern Star, Queensland Country Life, Ron Gittoes from Broadwater, Bert Plenkovich from Broadwater, Terry McKeough and Jeff Monti both from Rileys Hill, Ray Hunt from Tuckurimba.

 

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Government adds to cost of living as buybacks begin

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Government adds to cost of living as buybacks begin

 

Regional communities are bracing themselves for the worst as the Federal Government opens its cheque book for Murray-Darling Basin buybacks tomorrow.

National Farmers’ Federation Water Committee Chair Malcolm Holm said while families, farmers and businesses had been dreading this day, all Australians should be worried.

“It’s not just regional communities who’ve warned against the disastrous consequences of buybacks, the ACCC and ABARES have also cautioned buybacks will drive up the cost of water.

“The Murray-Darling Basin is essential to feeding Australia, producing 40% of our food and fibre.

“It’s basic economics. Higher water costs will drive up the cost of food at a time when the cost of living is hurting Australian families.”

Mr Holm also pointed to the May Federal Budget which didn’t disclose the figure for buybacks.

“It’s incredibly concerning the government isn’t being transparent about what this is going to cost taxpayers.

“Essentially taxpayers will be hit twice – first bankrolling the Government’s spending spree, then paying the price of inflation at the supermarket checkout.”

Mr Holm urged farmers and other entitlements holders thinking about selling their water to the Government to carefully consider the impacts, especially on communities.

“Minister Plibersek has set aside $300 million for community support, but we don’t know how that will be spent or what accountability there will be to ensure these communities aren’t decimated.

“This is yet another example of the devil-may-care attitude from the Government on buybacks and its complete lack of understanding about the detrimental impact they have on cost of living and communities.”

Community impacts

In the formal decision to instigate buybacks, the Minister for Environment and Water Tanya Plibersek said she had “considered the social and economic impact on communities in the Murray-Darling Basin”.

“What does ‘considered’ even mean? I consider whether I will have Weetbix or toast for breakfast,” Mr Holm said.

“When you look at the history of buybacks and the damage they’ve brought to communities and people’s livelihoods, ‘considered’ does not pass muster.

“This pain will reverberate across these communities from the farmers facing increased water costs through to the businesses in these towns who rely on the agricultural sector to support jobs, sporting clubs and schools.

“These communities deserve a robust and transparent process, but where is the evidence of that?”

Look beyond water

A key finding in the “Basin Plan Review – early insights paper” – released in June by the Government and Murray-Darling Basin Authority – demonstrates the need to look beyond “just add water”.

“The Government needs to move past the mindset that adding more water will fix the environment,” Mr Holm said.

“Rather than jeopardising communities and agricultural production with buybacks, the Government should focus on improving water quality, riparian and floodplain management, and pest control. These are all vital to improving river health.”

 

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Farm Safety Shouldn’t Cost an Arm or a Leg

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Farm Safety Shouldn’t Cost an Arm or a Leg

 

In recognition of National Farm Safety Week, SafeWork NSW is urging the state’s 81,000 agricultural workers to prioritize safety, adopting the mantra: work the safe way or ‘no way.’

The statistics are alarming. In 2013, there were 149 reported safety incidents in the agriculture industry in NSW. By 2022, this number had more than doubled to 358 incidents.

Since 2022, there have been 34 fatalities in the agriculture industry in NSW, with at least 10 involving quad bikes, motorbikes, or side-by-side vehicles. Notable incidents include:

  • January 8, Goohli: A side-by-side vehicle with an adult driver and two child passengers rolled into a dam while mustering cattle, resulting in the death of one child.
  • January 31, Narromine: A 51-year-old man died after being ejected from a moving side-by-side vehicle on a cotton farm.
  • February 1, east of Tibooburra: A 32-year-old female contractor was killed when thrown from a motorbike.

Tractors, quad bikes, side-by-side vehicles, and machinery account for most farm-related fatalities. However, incidents involving auger intakes and harvesting machinery also pose significant risks. For example, in May this year, a worker lost four fingers and part of his thumb while performing maintenance on an auger after removing its guard while it was still in drive.

SafeWork NSW offers a free advisory service to help farmers develop action plans addressing safety issues. This service qualifies them for a $1000 safety rebate for farm improvements.

SafeWork NSW emphasises the importance of adopting safe practices, including:

  • Prohibiting children under 16 from operating adult-sized quad bikes.
  • Mandating helmet use on quad bikes and side-by-side vehicles.
  • Preventing side-by-side vehicles from being used for joyrides and ensuring passengers wear helmets and seatbelts, avoiding rides in the rear cargo tray.
  • Guarding machinery, augers, and other equipment.
  • Ensuring proper separation of people, products, mobile plants, and equipment during the loading and unloading of livestock, bulk goods, hay, and grain.

For more farm safety resources, visit SafeWork NSW.

Quotes attributable to Head of SafeWork NSW, Trent Curtin:

“The agriculture sector accounts for one-in-five workplace deaths in NSW every year. Business owners must ensure their workplaces are safe. It’s crucial to maintain your plant and equipment, consult with your workers about safety, and ensure they have the right gear to do the job safely. This Farm Safety Week, we emphasise that farming work must be done safely so that our workers return home each day. Remember, it’s the safe way or no way.”

 

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