C
NORTHERN TERRITORY
attlenews VOLUME 10 NUMBER 4 - NOVEMBER 2008
Official newsletter of the Northern Territory Cattlemen’s Association (NTCA)
NT industry buoyant as Indonesia demands more Australian beef Indonesian consumer demand for Australian beef has strengthened significantly in 2008 - and Northern Territory producers are in a prime position to benefit from the trend. Figures released by Meat and Livestock Australia (MLA) in October show major increases in demand for both live cattle and boxed beef. MLA Chairman Don Heatley said Indonesia was a hugely valuable and growing market for Australian cattle and beef. “When livestock export and boxed beef export figures are combined Indonesia becomes Australia’s third biggest overseas market for beef, behind Japan and the US and ahead of Korea and Russia,” Mr Heatley said. “It is also the fourth
most valuable, worth a combined $40 million in 2007-08. The pleasing thing about the growth of the Indonesian market is that it is accommodating both live cattle and boxed beef. Both forms of trade which are growing at impressive rates and this is a great thing for Australia’s cattle producers.” Beef exports to this market are forecast to expand a further 23% by the end of 2008 and another 12 % in 2009. Indonesia is expected to remain the dominant live cattle export market and grow further in the short to medium term, particularly given the recent growth in Indonesian investment in feedlot capacity. Indonesia has a population of 222 million, making it the world’s fourth most populous nation on earth. The population is
Signing up for Vietnam
expected to reach 315 million by 2035. An MLA analysis of live cattle and boxed beef exports to Indonesia over the past four years shows there has been rapid growth - and at similar rates - of both forms of trade. Live cattle exports to Indonesia in 2007-08 totalled 547,000 head, which is the equivalent of 146,600 tonnes carcase
weight. This grew from 452,000 head and 121,600 tonnes in 2006-07. Boxed beef exports during 2007-08 totalled 46,100 tonnes carcase weight, up from 28,000 tonnes in 2006-07. Australia’s live cattle trade to Indonesia was worth $341 million in 2007-08, up from $303 million in 2006-07, while boxed beef exports were worth $99 million, up from $73 million in 2006-07. Information and graph courtesy MLA
Darwin office changes
Northern Territory Primary Industry Minister Kon Vatskalis waits to add his signature as Khanh Hoa People’s Committee Vice-Chairman Mr Tran Cong Phan (L) and NTCA Executive Director Luke Bowen sign a Memorandum of Agreement on a new live cattle export trade deal between the Territory and Vietnam. SEE STORY PAGE 3
After five years in the NTCA’s Darwin office, Tricia O’Hehir has opted for a new career direction - as electorate secretary to the Deputy Opposition Leader and Member for Goyder, Kezia Purick. Executive Director Luke Bowen has thanked Tricia for her support and dedication to the demanding role during her time with the NTCA. Tricia’s position has been filled by Jo Shearn, from Brunette Downs, who started work on 5 November (Meet Jo - Page 2)
Jo joins
A word from the president
the NTCA
As the Territory’s peak primary industry lobby group, we’ve had plenty of hot issues to contend with recently.
Jo Shearn is the new office manager at NTCA headquarters in Darwin. Jo originally hails from Victoria where her Dad produces sheep, crops and hay on a 2000 acre property west of Ballarat in the state’s south. Jo has already had a good taste of working in the Territory cattle industry. She has spent the past 18 months at Brunette Downs Station and worked for a time at Elkedra Station. She also worked for Elders International in Melbourne. “I’m really excited about getting this job and being able to continue working in the cattle industry,” Jo says. “I’m also excited about moving to Darwin. It’s good to get to town - and I’m a bit of a beachie so it’ll be nice to be near the ocean again too.”
The cliffhanger Northern Territory election in August gave the Henderson Government a clear wake-up call to start listening to the real needs of voters. The rushed poll denied hundreds of angry bush constituents a say in the outcome because the Electoral Commission could not get bush ballot papers distributed on time.
backpolling was by mobile booth or postal vote and, unlike Parliamentary elections, most of the candidates were as good as invisible. The result was that many frustrated bush people voted informally - not good for democracy. Climate change: The NTCA has provided a comprehensive submission in response to the NT Government climate change discussion paper. We have raised several key issues of concern, among them fears that the cattle industry will be forced to carry an unfair load in reducing the country’s carbon emissions. We warn that any government over-reaction to climate change will see disconsolate farmers abandon their properties all over Australia.
The election also ousted our former minister Chris Natt and brought the primary industry sector its eighth ministerial change since 2002. One positive is that new Primary Industry Minister Kon Vatskalis has at least done the job before, so departments and industry bodies like ours are saved the repeated rigmarole of extensive briefings to get the minister up to speed. We hope Minister Vatskalis will be around for a while this time so we achieve some meaningful solutions to the many major issues impacting on our members.
Land clearing: The Douglas Daly land clearing moratorium continues to cause major disruption to pastoral expansion in the region. Executive Director Luke Bowen and affected members met with new Environment Minister Alison Anderson down at the Douglas-Daly recently and have come away cautiously optimistic that the government will revisit this unfair decision soon.
Super shire elections: The NT Government’s farcical, highspeed introduction of super shires for regional and bush communities degenerated even further with last month’s election process. Voters were left in the dark, with no idea who they were voting for - because they were denied
Developing markets: The NT cattle industry is buoyed by
Cattlenews...Advertising One-third page One-quarter page One-eighth page
Darwin staff changes: We were sad to say farewell recently to our hard-working Darwin office manager Tricia O’Hehir who has departed to work as Electorate Secretary to Deputy Opposition Leader Kezia Purick. Our heartfelt thanks and good wishes to Tricia after five years of service to the NTCA. We also take the opportunity to welcome Jo Shearn as Tricia’s replacement and wish her well in the job.
Roy Chisholm President - NTCA
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[email protected] Northern Territory Cattlenews - November 2008
Meat and Livestock Australia forecasts on Indonesian market trends relating to live cattle and boxed beef (see Page 1) and continuing negotiations to re-open Vietnam as a market for Australian live cattle. NTCA Executive Director Luke Bowen has just returned from a visit to Vietnam as part of an industry delegation led by Minister Kon Vatskalis. Live exports was a key topic for discussions with the Vietnamese government and industry players, and an important Memorandum of Agreement was signed to kickstart the trade.
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Vietnam live export trade poised to begin after November MOU signing A Memorandum of Agreement signed in Vietnam on 7 November has opened the way for Northern Territory live cattle to be exported to Vietnam’s Khanh Hoa Province from early next year. A 1500-head consignment is expected to be the first of at least three to leave through the Port of Darwin in for Province in 2009. Other regular shipments will follow as the trade gains momentum. The MOA was signed in the city of Nha Trang by the NT Cattlemen’s Association, the Khanh Hoa Trading and Investment Company and Mid Vietnam Breeding Cattle Corporation. The signing took place during trade talks in Vietnam involving a Territory business and industry delegation led by Primary Industry Minister Kon Vatskalis. NTCA Executive Director Luke Bowen signed the MOA on behalf of the association. He says the event was a significant milestone, not only for Territory cattle producers and exporters but also for the people of Khanh Hoa Province who will benefit from guarantees of a reliable cattle supply and valuable training and after-sales support. The next vital next
A happy outcome - The NTCA’s Luke Bowen (front) with (L-R) Minister Vatskalis, Kangh Hoa People’s Committee Vice-Chairman Mr Tran Cong Van, and Mid-Vietnam Live Cattle Breeding Corporation Director Mr Tran Duy Quang.
the past by his predecessor Stuart Kenny, the NTLEA and NT Government to help get the trade up and running.
step will be for Khanh Hoa Trading to set up a major feedlot to hold the cattle after they arrive. Guidance from NT industry representatives and Primary Industry Department officers will ensure the facility meets stringent Australian standards. The groundwork for live export began in 2007 and has included everything from health protocol negotiations to feedlot inspections and seminars to help the Vietnamese cattle industry understand how the trade operates and the special technical elements involved in Asian feedlotting. Luke acknowledged the valuable groundwork done in
Latest live export statistics A total 22,852 head of cattle were shipped through the Port of Darwin in October, 13873 less than in September and 8965 less than October last year. The 2008 tally so far shows shipments of 72, 549 head more than at the same time last year. In the year to date, 310,584 head of cattle have gone through Darwin, compared with 283,046 for the whole of 2007. Indonesia remains the major market, taking 296,449 so far this year, compared with 258,736 for the whole of 2007 and 190,297 for the whole of 2006. Other markets this year have been Brunei (3639), Philippines (6317), Sabah (2055), Sarawak (1590) and West Malaysia (514). Pastoral Market Update
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Northern Territory Cattlenews - November 2008
Australia’s animal welfare facts Australia is recognised as having the best animal welfare standards in the world for livestock export Australia’s livestock export industry is committed to supplying safe, healthy and quality livestock to Asian and Middle East markets Australian farmers and exporters care for their animals and are committed to improving animal welfare in Australia and overseas Australia’s livestock export industry provides a vital source of income for families and communities in Australia’s rural and regional areas. Everyone involved in Australia’s livestock export industry cares about the animals we exports. That’s why we invest time and money into improving animal welfare in Australia and overseas Northern Territory farming families and communities depend on the livestock export industry for their livelihood.
Best practices in animal welfare a top priority for NT cattle producers The NT livestock export industry provides jobs for nearly 2000 people ranging from cattle producers, stockmen and stockwomen, to road transporters and veterinarians - and they all share the same solid commitment to the highest animal welfare standards. Jak Andrews from Manbulloo Station reinforces the attitudes of NTCA members when it comes to the issue of animal welfare standards. “Ask any fair dinkum livestock producer and they will assure you that animal welfare is paramount to a pastoral business,” he says. “Obviously, there are the economic benefits of stock being processed and travelling using the best animal welfare practices to avoid weight loss and injury. “However, best practices are not solely driven from an economic view point. People who work and live on the land have a great affinity with it and with their livestock. “Animal welfare is second nature to those involved in the livestock industry because they genuinely care about their livestock. We are all dedicated to achieving the highest possible standards in animal welfare and we will continue to practice and improve it.”
Industry rallies to support injured NT cattleman The pastoral community has rallied to support Supplejack Station’s Rob Cook and his young family after Rob was seriously injured in a helicopter crash. The accident happened while Rob was mustering near the Western Australian border on 30 September. He was evacuated to Adelaide’s Specialist Spinal Injury Clinic. More than $75,000 has already been raised through a special foundation set up to support Rob, his wife Sarah and two young sons while he is receiving treatment in Adelaide. Coordinators Tanya Fogarty and Cody Hollingsworth recently organised a highly successful fundraising ‘Rob Cook Black Tie BBQ’ at the Alice Springs Turf Club and Elders organised a hamper raffle for the night. “It was a brilliant night and the help we’ve had beyond then is just overwhelming,” Tanya says. “On top of this generous financial support, we know that everyone’s prayers will mean a lot to Rob and his family.” You can make a donation through ‘The Rob Cook Fund’ Elders account (BSB: 633-111 / Acct No: 301458980) or drop off or post cheques endorsed ‘The Rob Cook Fund’ to Elders Alice Springs Branch. For more information - Call Tanya (0408 570 335) or Cody (0438 697 837)
Northern Territory Cattlenews - November 2008
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NTCA Katherine Branch Chairman Rohan Sullivan and his family produce export cattle on Cave Creek Station near Mataranka. “Cattle are our livelihood. We strive to produce the best possible animals for our market,” Rohan says. “They are cattle that will travel well and adapt and perform well at their destination, whether that is the coastal floodplains or a southeast Asian feedlot. “From my own perspective, there is no better feeling than visiting a feedlot in Indonesia and seeing animals bred on your own property, in good condition, healthy and contented. It shows that the effort we put into the welfare of our cattle has been carried on down the line to achieve a good result.” Marie and Chris Muldoon, from Midway Station in the Douglas Daly, are strictly committed to livestock welfare. “We are proud that our Australian livestock industry operates under the strictest regulations in the world,” they say. “Obviously, our livelihood depends on best welfare practices, but deeper than that is our love of our animals. “From paddock to plate and wherever we have set the standards, we continue to try to ensure that all our animals are treated how we want them to be treated, because we do care. We practise what we preach.”
What live exports mean for the Territory The live export sector has added significantly to the overall prosperity of the Territory beef industry and provides employment security on many cattle stations The trade contributed $250 million export dollars to the Territory economy in 2007-08 and is the prime market for NT cattle producers The trade provides a living for Territorians working in businesses including feed suppliers, transport compa-
nies, exporters and livestock agents. These business have either emerged to support the livestock industry or have grown in response to it, and largely depend on the trade for their business. Dot points provided by MLA
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NTCA president warns on impacts of over-reaction to climate change NTCA President Roy Chisholm has warned that while primary producers are keen to work closely with governments to help resolve complex climate change issues, they will leave their properties in droves if forced to carry an unfair share of the emissions reduction burden. “We are already facing huge hikes in our transport and power bills, massive cost increases for fertilisers, freight and getting cattle to market, competition for good staff and, in Central Australia, the drought has hit hard,” he said. “We can’t pass these costs on to the consumer, so they have to be absorbed. And there will be a tipping
conservationists who wanted to work with governments on applying renewable energy and other measures to reduce their dependence on fossil fuels. “But we need to make sure that climate change responses are equitable, thoughtful, well-researched and lead to meaningful Greenhouse gas reductions, rather than panicked responses that
point where people simply cannot afford to operate commercially. Australians might like to think about where their steaks and sausages will come from when Australian pastoralists can no longer compete against countries like China and India that don’t have to play by the same Kyoto rules. It would be ironic indeed to see Australia became a beef importer, especially at a time of growing world demand for food. “We all recognise that action is needed on climate change, but that action shouldn’t be stacked against pastoralists and agriculture.” Roy Chisholm said pastoralists were essentially
sweep up the cattle industry in a net that strangles their livelihoods,” he said. Mr Chisholm said the cattle industry was pleased to see that agriculture remains excluded from the Federal Government’s Carbon Pollution Reduction Scheme until 2015, so further research can be done to better quantify the industry’s contribution to greenhouse gas emissions.
Emissions trading costs explained The Australian Farm Institute has found, in a recent analysis of farm level impacts from the Federal Government’s emissions trading scheme, that even if agriculture is not initially included, costs will be brought to bear on primary producers. Executive Director Mick Keogh explained the scheme’s possible impacts in a keynote address to this month’s Orange Meat Profit Day organised by Meat and Livestock Australia. “Under scenarios where farmers are not required to pay for the greenhouse emissions estimated for their farms, the ETS will have a significant impact on farm profitability due to the increased cost of farm inputs such as fuel and electricity, and farmers’ inability to pass on these extra costs,” Mr Keogh said. “Reductions in farm profitability of between 5% and 10% compared to a business as usual scenario are projected, even with quite modest emission prices. “Under scenarios where farmers are required to pay the full cost of estimated farm emissions as a covered sector, the modelling projects farm profit reductions of more than 100 percent, especially for farms running sheep and cattle. “There is a critical need for more comprehensive greenhouse accounting rules for agricultural emissions. Current emission accounting rules estimate emissions from agriculture, but do not recognise greenhouse gas removals that are also part of the annual farm production cycle. There is no sense making farmers pay for emissions that are an artifact of greenhouse accounting rules, rather than a true reflection of the annual cycling of carbon through farm production systems.” The Australian Farm Institute conducts research into strategic issues facing Australian agriculture, and promotes the outcomes to policy-makers and the wider community.
Our climate change issues Australia accounts for 1.5% of world emissions. A cautious and informed approach must be taken in relation to including agriculture in any future scheme. The NT is the most underdeveloped of all states or territories and restrictions on production or land development will have a major impact on the our capacity to meet future food demand. Any future scheme must not be at the expense of production. The pastoral industry is a low emitter of greenhouse gases by unit of production, but could be disproportionately penalised by some of the measures proposed: Kyoto emissions accounting rules are unfair in only allowing for carbon sequestration using trees. There is no recognition of other forms of carbon capture through soils There is an undue focus on methane emissions from cattle The science and rules surrounding sequestration through pastures and soil carbon are embryonic The proposed 2010 carbon tax on fuel would unfairly penalise pastoralists and those operating in remote locations due to the long-distance transport, power generation and the high energy component in most production inputs Because many properties have to generate their own power, renewable energies offered important alternatives to diesel, so greater incentives for solar power should be reinstated A great deal of research is required before agriculture is included in a future scheme. 5
Northern Territory Cattlenews - November 2008
Supporting our pastoral industry
Since 1839 Elders has been a truly progressive agribusiness with a focus on client and customer service. Through our 400 branches Australia wide, in addition to our agencies and overseas offices, Elders provides core services in livestock, wool, rural finance, insurance, merchandise and real estate. As Australia’s leading seller and supplier of livestock and meat we work closely with producers to develop answers from conception to consumption. Elders Livestock Management Solutions (ELMS) is one of our livestock products that provides customers the opportunity to increase productivity of their livestock operations through easy management techniques. With a range of livestock sale alternatives, including our international sales network, Elders can find the right customer for your livestock. For more information call your local branch - Alice Springs (08 8982 1655), Katherine ( 08 8972 2500) or Darwin (08 8931 3455)
IOR Petroleum Pty Ltd operates an extensive network of conveniently located, unattended diesel outlets, with easy and secure access for large vehicles 24 hours a day. With this simple direct distribution, its own refineries in Western Queensland and secure product supply, IOR is able to support the northern cattle industry with very competitive prices, high product quality and a detailed documentation system for fuel management. IOR can also make direct deliveries to your own bulk facilities. To enquire about a better deal on your diesel, contact IOR on 07 33957499 or John Fraser on 0427 722555. w w w.ior.com.au
The NTCA sincerely thanks its sponsors listed here - and others to be listed in future editions for their ongoing generous support of the pastoral industry. We urge members to support these businesses when purchasing goods and services throughout the year
The producer-owned company, Meat & Livestock Australia Limited (MLA), provides services and solutions to the entire red meat industry including livestock producers, processors, exporters, foodservice operators and retailers. MLA has over 44,000 livestock producer members with stakeholder entitlements in the company. MLA’s core activities include growing demand for Australian red meat, increasing market access for our products, enhancing competitiveness and sustainability and increasing industry capability. All producers of grass or grainfed cattle, sheep or goats who pay livestock transaction levies are eligible to become a member. MLA membership is free to levy-paying cattle, sheep, lamb or goat producers. All you have to do is complete and lodge a member registration form with MLA. Members get free or discounted market information, including Meat & Livestock Weekly and livestock market reports; discounted entry into Meat Profit Days and other MLA events; free or discounted publications and information tools, and free magazine subscriptions. To contact MLA: Phone1800 675 717 Email:
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With the largest Agri-customer base of any Australian bank, Commonwealth Bank Agribusiness is focused on providing the highest level of service and support, business expertise and financial advice to the nation’s primary producers. As part of this focus the Commonwealth Bank Agribusiness has recruited specialist agribusiness bankers across Australia to strengthen its service capabilities to rural customers. In the Northern Territory, our customers have access to beef specialists with an in-depth knowledge of the industry. Our commitment means customers across Australia can also access AgriLine, our telephone-based business centre in Wagga Wagga NSW, and speak to dedicated agri specialists. For more information on how Commonwealth Bank Agribusiness can help with all agribusiness needs in the Northern Territory contact Will Armstrong on 0427 002462
Northern Territory Cattlenews - November 2008
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Heli-Muster NT has been servicing the helicopter needs of the Northern Territory cattle industry for 30 years. With a fleet of R22 & R44 helicopters based in various locations from the Victoria River District, into Katherine and across to the Barkly Tableland, we have the airpower and experience for all of your aerial needs, from mustering and general survey to baiting and incendiary work. Contact Nick Dyer Operations Manager Ph: 08) 8975 0777 Fax: 08) 8975 0763 Email:
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Port bottleneck fears as NT industry grows The NT Cattlemen’s Association and NT Livestock Exporters Association joined peak business and industry bodies recently in calling for a long-term strategic approach to developing critical Northern Territory infrastructure so that local industries remain competitive. The call followed an NT Government commitment to spend $3.5 billion on new port and other infrastructure. “Production and demand have grown significantly, but the growth of our industries could be hamstrung if we don’t have the critical infrastructure in place to support it,” NTCA Executive Director Luke Bowen said. “Darwin’s East Arm Port is bursting at the seams and unable to
meet the short or long-term needs of the Territory’s export cattle and minerals sector. The way our minerals boom is going, we need the Government to commit now to expanding capacity or the port will soon be turning customers away.” The industry associations, also including the Chamber of Commerce and NT Resources Council, said the competitiveness of Territory exports were also being threatened by rising fuel costs, climate change policy impacts, skilled labour shortages and local government reform. The resources and primary industry sectors accounted for about 30% of the Territory’s Gross State Product (GSP) and $4.3 billion in export income.
Bush voters denied their rights The voting process for the Territory’s recent ‘super shire’ elections was a debacle and has done little to bolster members’ confidence in the government’s handling of its local government reforms, the NT Cattlemen’s Association says. “Voters were left completely in the dark over who they were voting for, with the result that some decided to vote informally,” Executive Director Luke Bowen says. “City people get flyers about the candidates and can then can talk to them at the polling booths, but there was none of this for the local government elections. “A fundamental element of democracy is that all ratepayers are equally represented. To decide who can best represent your interests, you have to have information about the candidates and their policies. He said members complained of receiving ballot papers with only a series of names and no information on candidates or how to contact them. “So people were expected to vote for candidates they had never heard of, with no idea of their credentials, abilities, histories or policies, and no idea of what they wanted to achieve as shire councillors. When our people contacted shires for clarification, they were told details about candidates could not be given out. The Electoral Commission also would not release details without the candidates’ consent. “This is not a good start to the brave new world of local government reform. We would have expected better planning for such a major Government experiment. “It does little to restore our confidence in the handling of these reforms.”
Members meet new minister to discuss land clearing ban Douglas-Daly producers have met with new Environment Minister Alison Anderson, to restate their concerns about the district’s land development needs. Talks coincided with the Minister’s first meeting with the government-appointed Daly River Management Advisory Committee (DRMAC). The NTCA member resigned from the group this year after the government announced an existing land clearing moratorium would be extended until March 2010. The decision ignored DRMAC recommendations that sustainable land development be allowed to resume. The NTCA says the parties have now taken positive steps to resolve the issues, including engaging with the Minister and her staff so they better understand the impact of the stalemate. Meanwhile, the NT Government has signalled its intention to introduce broad-ranging new legislation in relation to clearing of native vegetation. This raises further concerns for the NTCA and its members. Executive Director Luke Bowen said association would continue to work closely with the Minister and government to try to resolve land clearing issues.
NEW FACTORY-BUILT NIMBLE HOMES PERFECT FOR THE RURAL MARKET Nimble Homes manufactures quality factory homes - and we’ve now set up in the Top End! A local team began work in September in the new Nimble Homes factory at Palmerston near Darwin. Using techniques adapted from our long-established Perth factory, we can now offer a range of cabins and homes suitable for northern rural properties. We can adapt our designs to meet your special needs, and we’re flexible if you want to stretch or squeeze down our existing plans. Nimble homes and cabins are quality built using steel frames and locally supplied products - and meet the Building Code of Australia
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Northern Territory Cattlenews - November 2008
Rabobank’s Barry and Catherine a top team for the Top End Barry Gerschwitz has led the charge for Rabobank in the Top End since 1999. As Darwin branch manager, he has strengthened a long-term relationship between the local cattle industry and a leading global food, agribusiness and rural banking specialist and the Northern Territory cattle industry. “Australia’s primary producers are widely recognised for their outstanding achievements and best practice, particularly in terms of management, productivity and quality of produce,” Barry says. “At Rabobank, we acknowledge that many of our clients are leaders in their industry and we understand that their success is vital to our own success.” Barry grew up in rural South Australia and has a natural affiliation with the bush. When he made the move to Rabobank in the Territory he claims he found his niche. The thing he enjoys most about his job is the relationship he has built up with clients over the years. “The Northern Territory has grown from strength to strength, there have been some incredible opportunities and I have seen some tremendous growth in efficiencies and in property values. At
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Rabobank we put a lot of emphasis on supporting our clients with their business needs. “We aim to help ensure our clients continue to be well placed to benefit from the changing international trade environment, and to compete successfully on a global level. Rabobank also understands the cyclical nature of agribusiness, and we take a long-term view of the industry, working together with our clients to help them get the most from their businesses, now and in the future.” Barry was a one-man team in the Darwin office until Catherine Tracey joined him earlier this year. Catherine joined Rabobank with a wealth of knowledge gained from 28 years retail banking experience. “I really wanted to specialise,” says Catherine, who has been in the Territory for eight years and finds dealing
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Rabobank Darwin’s Barry Gerschwitz and Catherine Tracey providing premium services to support the NT cattle industry with rural people refreshing. “I saw joining Rabobank with its strong focus on the rural sector as an excellent opportunity to do that. I liked the fact that at Rabobank we are specialists in rural and our manager’s work closely with clients at the farm level to meet each client’s unique and individual financial needs.” Rabobank also continues to have a strong relationship with the NTCA and plays an integral role in bringing some keynote speakers to the association’s annual conferences. “As agriculture is our speciality we have drawn on our global resources and have been able to bring the likes of 2008 conference speaker Fernando de Quieroz
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from Brazil, and previous speakers including Gary Smith from the USA and Chris Ward also from Brazil. Speakers of this calibre provide some exceptional information and an insight into their expertise, which they have readily shared with delegate at the conferences.” Barry and Catherine look forward to an ongoing strong relationship between Rabobank and the NTCA into the next decade. To find out more about Rabobank’s services for NT rural clients Phone: (08) 8981 7355 www.rabobank.com.au
Article supplied and written by Rabobank
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No matter how hard you work or play, ZH·YHJRWWKHEHVW4XDG·VIRU\RX Northern Territory Cattlenews - November 2008
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Big celebrations REMINDER ... planned for milestone NTCA conference
With the NT Brands Audit letter due to be posted out in January 2009, we again remind all owners of brands to make sure you register your current postal details as soon as possible. To do this you can either:
The planning is well underway for milestone celebrations to mark the NTCA’s 25th annual conference, AGM and gala dinner in 2009.. It is Central Australia’s turn to host the program and the combined events will be staged in Alice Springs on Friday 27 March. Executive Director Luke Bowen promises a bumper program that will focus on a ‘25-25’ theme that looks to the industry’s past, present and future. Keynote speakers and expert panelists will address the broad scope of hard-hitting issues that have been integral to the NT pastoral industry’s development over the past 25 years, and will look to where the industry is heading over the next 25 years. Much of the 2009 program will focus on the issues forecast to challenge Australia’s cattle producers over the next two decades, including
conservation, climate variability and animal welfare. “The groundswell of public attention to these issues in particular will demand that Australian pastoralists and the livestock export industry continue to push the boundaries to maintain the highest possible standards,” Luke says. “Our pastoralists already have an excellent record of caring for their land and livestock.. We need to get that message out loud and clear but we also need to continue striving to be the best. “Other major issues such as the volatile world economic situation and a burgeoning world demand for food, will also be high on the list of discussions.” Conference and dinner places are expected to be tighter than usual for this big year in NTCA history so early bookings are recommended. More details will be distributed as planning proceeds.
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Check your postal address in the NT Brands Directory and if not current advise Bev (Ph: 08 8952 5122 -
[email protected]) asap
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Complete Update Brands Details in the pdf form emailed to all members, and fax the form back to Bev (Fax: 8953 4260) OR
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Phone LISA (Brands Clerk - 08 8999 2033) to check your postal address and advise her if it is incorrect.
Prime Super is the largest Superannuation fund for rural and regional Australians. If you are an employee, running your own business or investing in the future of your employees.
NTCA attracts major grant to map industry’s future The NTCA has received $327,000 through the Federal Government’s $28 million landcare-based Caring for Country package. The funding will be used to map out the Northern Territory cattle industry’s future for the next 30 years. ”The project will involve identifying the big issues we are going to be facing in the next 20 or 30 years and what we can do to keep ahead of the game,” he says. “We want to be able to anticipate what some of those issues might be and how we can react to deal with them, using appropriate research and development, forming sensible partnerships, putting the right sort of structures in place. We will be modelling financial, economic and environmental scenarios that will prepare us to respond to the possibilities. “We will then introduce these scenarios on the ground to different landowners, including Aboriginal landowners, across all pastoral zones. We are working with the land councils through the Indigenous Pastoral Program to make sure consultation takes place with agribusiness, government policy makers and landcare groups to identify how people think we should react to the scenarios we put up.”
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Northern Territory Cattlenews - November 2008
THE ECONOMICS OF RENEWABLE ENERGY Many factors, such as increased fuel prices, have seen increased interest in renewable energy systems from members this year. One aspect of renewable energy that makes it difficult to evaluate is WKDWWKHUHLVQRµRQHVL]HILWVDOO¶V\VWHP DQGLWUHDOO\LVQ¶WXQWLODV\VWHPLVGHVLJQHGDQGSULFHGIRU\RXUSDUWLFXODUVLWXDWLRQWKDW\RXDUHDEOHWRPDNHDQ informed decision on whether it will be economical for you. When a renewable energy system is designed and priced the initial upfront cost of the system can be quite daunting and make the system seem too expensive to ever be economical. The cost of the new system, compared to the existing system, needs to be looked at over a longer period to get a true idea of the total cost. Below is an actual example of a station North of Alice Springs that has recently had a renewable system designed and priced. The station has a reasonable sized homestead with 2 houses, 2 single standalone staff rooms, staff quarters, meathouse/ kitchen complex, coolroom, workshop & sheds, numerous airconditioners. The station currently runs their generator an average of 17 hours/ day throughout the year, using 24,000 Litres of diesel a year. The system quoted has a significant solar component, meaning it needs only 3.3 generator hours a day in Summer and half an hour a day in Winter. The total cost of the new system is $301,000, however after the 50% federal government rebate and Renewable Energy Certificates the cost to the station is reduced to $135,000. This is a significant up-front cost, and can put people off going ahead with a system, however the cost of the new system needs to be compared to the existing system over a period of time. The above graph shows the renewable energy system is providing net savings by year 5, with net savings of $160,000 by year 10 and $600,000 if looked at over 25 years, as well as having the additional benefit of 24 hour power. Most small/ medium stations have similar results with the system paying off in 4-6 years.
Renewable Energy power systems for station power can be quite economical Systems can power quite rge homesteads with a number of house, coolrooms, freezers, airconditioners etc To properly weigh up he economics, a system needs tobe specifically designed and priced for your situaion The current 50% RRPGP funding is not guaranteed forever. Other renewable energy funding programs have been abolished or cut recently Members should consider renewable energy for their circumstances while funding is available and the NTCA can assist with the process. Northern Territory Cattlenews - November 2008
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. . . DOES RENEWABLE ENERGY PAY? OTHER THINGS TO CONSIDER Finance - Stations will usually have to borrow money to finance their part of the system cost, using the above example again, if all of the station cost ($135,000) was financed for 10 years at 9% then the savings at year 10 are reduced from $160,000 to $85,000, but the system starts providing savings from day 1, as the finance repayments and cost of running the renewable system are less than the annual generator costs for the existing system. Batteries - The life of batteries used in renewable systems can affect the overall cost of the system, most batteries in well maintained renewable systems are lasting 8-10 years or even longer, there are examples of batteries lasting only 5 years but this is nearly always attributed to lack of maintenance. If a battery life of 5 years is used in the above calculations then the system still starts providing savings after 5 years, the savings at year 10 are reduced from $160,000 to $130,000. Aternatively if batteries last 10 years then savings at yr 10 go up to $170,000. Diesel Cost - The above calculations are based on diesel costing $1.40/L ($1.96 inc GST & excise). With no increase forecast, the average compounding increase for fuel over the last 20 years is 9% per year. If we increase the cost of diesel to $1.60/L ($2.18/L inc GST & excise) then the renewable systems start giving nets savings in year 4 and the net savings by year 10 increase to $204,000. Alternatively for the system to not be viable within 10 years (ie break-even at end of year 10), then diesel would have to come down to $0.65 ($1.14 inc GST &
Reaping renewable benefits at Central Australia’s Lyndavale Station
excise), this still gives net savings of $202,000 over 25 years. Technology - There is a fear from some people that new technology may be introduced after they get a system fitted, rendering their system (& investment) redundant. If the system stacks up economically initially then it will be economical regardless of technological changes after it is fitted. If better or cheaper batteries (or alternative energy storage) become available then they will be able to be incorporated into your system when original batteries need replacing. If more efficient solar panel/ devices become available then they can be incorporated into the system, replacing some more generator use.
CONCLUSION It is not until a system is designed and priced for your station that you have the information to decide if a system is economical for you, and most people are surprised at how quickly a system will pay itself off. The above examples are also only for one system size, whereas you have the option of going for a smaller system, which will have less cost up front but more diesel use over time, or a larger system with high upfront costs and very low diesel usage over time. If you have any questions on renewable energy systems and their application to you, contact Ian McLean 0401 118 191
[email protected]. Ian can answer your questions, put you in touch with suppliers, help you analyse the options, as above, and help you through the whole process.
Funding - The Renewable Remote Power Generation Program (RRPGP) funding scheme, which funds 50% of the costs of new renewable energy systems, is funded until 2011, however other renewable energy funding programs have had their funding significantly More info: www.ntca.org.au reduced or even cut completely www.maketheswitch.nt.gov.au recently, there is no guarantee of ongoing funding. 11 Northern Territory Cattlenews - November 2008
Revised Katherine water allocation plan due out for comment in December The Northern Territory Government and Katherine Water Advisory Committee are on the brink of releasing the second draft Water Allocation Plan for the Tindall Limestone Aquifer, Katherine. This Water Allocation involved representation Plan (WAP) has been devel- from all stakeholder groups, oped specifically for the including the Northern TerTindall Limestone Aquifer ritory Cattlemen’s Associaand, once declared by the tion, represented on the Minister for Natural Re- Katherine Water Advisory sources, Environment and Committee by Rohan Heritage, will be in place for Sullivan. 10 years. The second round of The Plan details ex- public consultation is to altraction limits for the aqui- low further feedback, and to fer, identifies and allocates demonstrate areas of the water for different users and Plan that have incorporated contains details of water li- feedback suggestions subcensing, the water trading mitted through the first process and the licence se- round of public consultacurity system. tion. Benefits of the Plan inWhile the content and clude greater licence secu- intent of the WAP remains rity and ensures that water unchanged, improvements is allocated in a practical and have been made to the layequitable way. out and readability of the The planning process document. has taken two years and has The second draft WAP is expected to be available for public comment during December 2008 and January 2009. After this time, a consultation report will be published by the Department of Natural Resources, Environment, The Arts and Sport (NRETAS) detailing areas of significant and repeated concern from the community.
The water supply - a valuable resource
Katherine Water Control District Map
FOR FURTHER INFORMATION
on
the draft Plan and water resources in the Northern Territory visit www.nt.gov.au/kwac or phone the Water Management Branch of NRETAS on 8973 8115 Northern Territory Cattlenews - November 2008
12
Award-winning IPP puts trainees in real jobs The NTCA and partners in the Indigenous Pastoral Program (IPP) took out the major award at the Northern Land Council’s Employer Excellence Awards on 29 October - and the NTCA’s Tony Freshwater was an Employment Category finalist for his work with program. The Indigenous Pastoral Program won the Chairman’s Award for the ‘best of the best’ - for outstanding performance in providing training, jobs and careers. It won the Top Project category for improving the participation of Indigenous people in the pastoral industry. The program has an 80 % completion rate, with more than 80 % of station hand course participants going into jobs guaranteed by the NTCA prior to them completing the course. The IPP partners are the NTCA, Northern Land Council, Group Training NT, the NT Primary Industry Dept, Charles Darwin University, Indigenous Land Corporation, and the Australian Department of Employment, Education and Workplace Relations. In 2007 and 2008 it ran four courses with a 90 % completion rate, 80 % employment rate, and 60 job placements. NTCA Executive Director Luke Bowen, the ILC’s Steve
NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
McCarthy and the Indigenous Pastoral Program’s Stewart Blythe were among six individuals to get special mentions for their work. The NTCA was the overall winner in the partnerships category for committing to and exceeding job guarantees. Luke, who helped set up the award-winner initiative when working with the ILC, has paid tribute to all groups involved. “Through a partnership approach, the cattle industry has provided jobs, brought land back into production, helped Aboriginal people play a greater role in land management, and increased the number of cattle being turned off land in the Territory. “The cattle industry believes this is just common sense at a time of acute skills shortages, but it also meets a need to help Aboriginal people find work in their own areas.” He acknowledged the cattle stations which played an integral part in the em-
Representing IPP partners at the awards are (L-R) Paul Blore (ILC), Ray Blohm (GTNT), Tim Biggs (CDU-KRC), Sam Bush Blanasi (Dep Chair, NLC), Susan Corbisero (ILC), Mark Ford (DRDPIFR-based IPP Manager), Arthur Townsend (DEEWR NT Mgr), Alison Vidal (ILC), Doug Jenkins (CDU-KRC) and David Ross (NLC - Jobs & Careers Service Mgr). NTCA representatives were unable to attend the awards night.
ployment program. He also paid tribute to Tony Freshwater who he said was an ‘engine room’ of the program. “Tony works with industry to identify jobs on stations then works with station managers to establish the right working environment, helps recruit young people, mentors them during training, ensures the recruits and employers go through cross-cultural training so they understand each other’s expectations, and mentors them as they graduate and go on to jobs in the industry. “This approach has seen a major increase in Aboriginal employment on properties and a strong retention rate, but we still have long way to go. We now know that to be successful we need on-property, full time mentors and buddies, which is costly, and a more flexible government funding approach.”
Other NLC award finalists included: CDU’s Doug Jenkins for work with pastoral trainees ILC and Waliburru for developing a pastoral property and training community members Katherine Rural College in the category of Top Registered Training Organisation.
2008 NTCA Executive & Staff President
Roy Chisholm
Executive Director
Luke Bowen
Top End Branch Chairman Deputy Chairman Alternate Exec Member.
Tony Searle Dan Thomson David Walker
Katherine Branch Chairman Deputy Chairman Alternate Exec Member
Rohan Sullivan Alan Andrews Charlie Holzwart
Tennant Creek Branch Chairman Deputy Chairman Alternate Exec Member
George Scott Ernie Holt Geoff Murrell
Alice Springs Branch Chairman Deputy Chairman Alternate Exec Member
Ben Hayes Andy Miller Tracey Hayes
CCA Representative
Ross Peatling
NFF Representative
John Underwood
NTCA Staff Executive Officer Darwin Office Alice Springs Office
Ian McLean Jo Shearn Bev Seidel
SECRETARIAT
ALICE SPRINGS BRANCH
Suite 9 1st Floor Raffles Plaza 1 Buffalo Court Darwin NT 0800 GPO Box 4845 DarwinNT 0801 Phone: (08) 8981 5976 Fax: (08) 8981 9527 Email:
[email protected] 54 Hartley Street Alice Springs NT 0870 GPO Box 2288 Alice Springs NT 0871 Phone: (08) 8952 5122 Fax: (08) 8953 4260 Email:
[email protected] 13
Northern Territory Cattlenews - November 2008