The Future of the Australian processed food sector

Why has this government inquiry never (as far as I know) been published and discussed as a matter of national importance? Because what it is really saying is the Australian processed food industry in Australia is buggered, it’s just a matter of time. If ever Australia becomes reliant on imported food then we shall have lost what control we still have over our resource rich country and we shall be at the beck and call of new masters. Continue reading “The Future of the Australian processed food sector”

Mary has a litle lamb – and all the world wants it.

Are we starting to see, ever so gently, the beginning of the food wars, which have been talked about in recent times and none of us believed in?
Are countries that cannot produce enough food for their own needs, starting to make sure they don’t go hungry in the future?
Can we in Australia fill the gap? We are always boasting about how many people we feed as well as ourselves. But our food imports are going up and our production per hectare with cereals is going down.
We are cutting back on Research and Development (R&D) and we are reducing the size of our Departments of Agriculture.
So the question remains can we and do we want to fill the world-wide demand for sheep?
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The new covered sheep sale yards at Katanning. The best in the southern hemisphere. Capacity over 20,000.Photo courtesy ABC.

 

The recent announcement by the Walsh brothers from Bunbury in Western Australia that they had done a deal for lamb and beef with a Chinese company worth a billion dollars over five years is some deal.

This is great deal for Western Australia and the rest of Australia. The Walsh’s’ say they have been working in China for many years and this deal is the culmination of all that work. I wonder if we are beginning to witness a land and a food ‘grab’ as part of a strategic plan for China’s future?
Continue reading “Mary has a litle lamb – and all the world wants it.”

Q. How unlevel is the ‘playing’ field? A. It’s a hill.

It has been difficult for me to be true to the name I gave this web site  ‘Global Farmer’ In Australia.  I chose the name because, 1. I had used it before and, 2. Because there is so much going on in the world of agriculture and agricultural trade that we never get to hear about. We are traders, or at least we have many traders living in our midst. We now know why they are keen to be here because there is more money in trading in grain than there is in growing it, and according to Rabbo Bank boss this is the most expensive country in the world to grow wheat. So we have a few challenges in front of us.

I have the time and I have the intense interest in food trade and objective to see Australian agriculture, once again, world competitive.

We really are a small player in world agriculture. We grow just 5% of the world’s crop. We jump up the ladder as a trader where we come in at between 12 and 15 in world rankings. That’s why the big boys want to play here. If you live 200km from the port it’s costing you between $60 and $75 a tonne to get you grain to port.

www.aegic.org.au/…/supplychaincosts-impact-global-competitiveness.a…

I know we are a world leader in the export of beef but I’m looking for a volunteer to tell the full story. From what I am told we could do so much better both domestically and for export.

One of the reasons we don’t get a lot of international news is because we are obsessed it seems to me, with domestic politics and in agriculture with domestic agricultural politics. It is hard to imagine an industry with so many organisations, committees, Peak Bodies, and people who claim to speak for one particular group or another, gossipers and rumour mongers. Yet in spite of that, we are deeply dependent on the export markets for our commodity products, cereals, meat and wool and to a lesser extent on perishable goods, fresh fruit and vegetables. Quite fascinating that WA is exporting fruit and veg to Bali, maybe it reduces the Bali Belly? Continue reading “Q. How unlevel is the ‘playing’ field? A. It’s a hill.”

In the name of God, go!

“You have sat too long here for any good you have been doing. Depart, I say, and let us have done with you. In the name of God, go!”

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Premier of Western Australia Colin Barnett.MP.
Photo Fairfax Media.

“Maybe stop talking about issues like daylight saving and the like and concentrate on real farm issues,”

“That would help government produce real results for the farm sector.”

“Maybe one farm organisation would help.”

Colin Barnett. Premier of Western Australia April 2013

Dale Park, President of the Western Australian Farmer’s Federation (WAFF or WA Farmers) replied:

 I think that is true, there is a lot of people out there who just see this fighting between WA Farmers and the PGA as totally counterproductive,” he said.

And I am one of them.”

Pastoralists and Graziers Association (PGA) president at the time, Rob Gillam said he was surprised by the Premier’s comments. (Tony Seabrook is now President of the PGA.)

“It was a bit unusual, but I am not sure why he went where he went to be honest,” Mr Gillam said.

“We (PGA) were pretty happy with the achievements in agriculture by the Barnett-led government in the first term and we are looking forward to the changes in the second term.

“There are a couple of areas in which we are not happy, but that’s life.”

Mr Gillam said he saw PGA and WA Farmers in a similar light to the Liberal-National parties in State Government, but stopped short of calling it an alliance.

Mr Park also said he was surprised by Mr Barnett’s lack of understanding of the issues farmers were facing in the Eastern Wheatbelt during his two-day trip last week.

Everybody knows the problems – getting finance, the high dollar and the cost-price squeeze – but what we are really short on is solutions,” Mr Park said.

But what surprises me is that he (Barnett) was unaware of that (of the issues facing farmers).

When asked if it was a blight on former Agriculture and Food Minister Terry Redman for not keeping the Premier properly informed on the issues, Mr Park said it was.

“Every time we tried to talk to Mr Redman about this he would say you are talking the industry down,” Mr Park said.

For the full story and even ‘more’ comments from the Premier go to

http://www.farmweekly.com.au/news/agriculture/agribusiness/general-news/barnett-calls-for-united-farmer-voice/2653829.aspx?storypage=0

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Dale Park. President of Western Australian Farmers. Photo: Fairfax media.
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Tony Seabrook. President of the Pastoralists and Graziers Association. photo:Fairfax Media.

 

 

1920s Poster in England

 The mighty who operate with total impunity – a law unto themselves.

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Would Mr Barnett have been as blunt in public to  Richard Goyder, Wesgarmers CEO and Ian McLeod CEO of Coles about the anguish they have caused in the dairy industry with their dollar a litre take it or leave it bludgeoning? No, he wouldn’t dare.  But he gets away with arrogance, rudeness and denigration in public to farmer organisations because he knows he can.

Colin Barnett was sending a big message to the PGA and WA Farmers in being so sarcastic, of concern is judging by the reaction there was no one at home in either WA Farmers or  the PGA listening or if there was they didn’t understand. We all know Barnett’s sarcasm about the curtains fading is to do with the claims that milk production would go down and the kids wouldn’t go to sleep all as the result of daylight saving.

If that is the best the Premier can do when talking agriculture, his memory is convenient and  it brings into sharp focus the lack of real communication between the Premier and the leaders of the PGA and WA Farmers.

Dale Parke’s comment also tells a sad tale of the poor working relationship between himself and the Minister for agriculture at the time, Terry Redman.  Mr Redman obviously had his own agenda and attached no importance to the views of the President of WA Farmers.

There are some really difficult challenges around agriculture at the moment, of immediate concern and not the least being the diabolical condition of our country infrastructure, road and rail. So it was a typical Barnett ‘country hick’ comment designed to denigrate and take our mind off other matters.

An old and effective trick to use a bit of personal denigration in a not too subtle way to change the debate. Twelve months later the road and rail debate has gone nowhere. Probably deteriorated as the Shires have run out of money to maintain roads to carry trucks with payloads far beyond the design criteria of what in many cases are gravel roads built 50 to 100 hundred years ago.

for the full story go to: http://www.brokenpromises.org.au/promises/closure-of-tier-3-rail-lines

Trouble was the Premiers sarcasm and comments were like water off a ducks back. Dale Park as good as agreed and said he couldn’t get through to his Minister Terry Redman when he needed to and Rob Gillam dismissed the Premier with a metaphorical dismissive wave of the hand.

Dale Park, when he refers to what he sees as a lack of understanding by the Premier of the problems of the eastern wheatbelt as they were so graphically portrayed at what I call ‘The Meeting of a Thousand Souls’ that was held in Merriden over twelve months ago, should remind the Premier that at that time, shortly after the meeting and without his Minister for Agriculture, Mr Barnett gave what I took to be a commitment that he personally would better educate himself with regard to not only the problems of the eastern wheatbelt but of all agricultural regions.  He gave the impression he understood the debt and the problems it was causing to the community from farmers to the  business people and to the working families.

He also gave the distinct impression he would take a personal interest in the situation. Ken Baston,  the new Liberal Minister for Agriculture visited another part of the wheatbelt and virtually repeated the Premier’s commitments.

The financial aid that was promised at that time has just become available. It beggars belief that it has taken so long for the Commonwealth and the State to sort the scheme out. Best part of 18 months to develop the terms and conditions. Then again it is not surprising because Machiavelli is alive and well in the halls of power. I gather there has only been one successful applicant. Was it planned that way? Between the Department of Agriculture economists and the consultancy groups they seem to work so closely with now, it would be difficult, given the number of applications approved, to believe the conditions were drawn up to help as many as possible.

It is a sad reflection on the Minister and the bureaucracy, presumably the Dept of Agriculture and Food, if the conditions of the financing are not designed to help those most in need.

Rumours abound that both the PGA and WA Farmers have seen better financial times. Membership is low. Patronage and sponsorship is becoming more difficult.

The stories of orange lifeboats moving around Perth water  in the middle of the night have not been confirmed by either organisation. Neither have the rumors been confirmed that offers have been made on two substantial houseboats.

It’s time for Change

Now is the right time for a change? It’s time both the P&G and WA Farmers, with their heads held high for they have toiled for agriculture and done a job few of us would take on, to give the job away.

It is time for them to take the same advice that Cromwell gave to the Rump government. ‘In the name of God go!’ and then we should add the words ‘And thank you for all you have done over the years.

Continue reading “In the name of God, go!”

Rising numbers of families cannot afford to spend enough on food.

Continue reading “Rising numbers of families cannot afford to spend enough on food.”

Is China Australia’s Land of the Golden Fleece?

There is a lot of ‘chatter’ mostly in the media and mostly from the uninformed like politicians that Australia has the agricultural productive capacity to become the ‘Food Bowl of Asia.’ Is it true?

Part 1.

There are those in the city who are plotting and have the money.

Is China Australia’s land of the Golden Fleece? Or is there a danger we could lose our money on the way to the goldfields? Fear not there is hope. Why? Well, for one thing there have been several very high profile meetings under the banner the ‘Global Food Forum’. Never heard of them? Not surprised, they were advertised in places where those on the land were unlikely to see the the advertisements.

When I saw the ‘Global Food Forum’ first advertised in The Australian and had a look at the list of speakers I thought they were notable in the world of finance and agribusiness if not agriculture, that is I couldn’t see many farmers on the list, but my interest was aroused non the less. I then enquired as to the price of a ticket and added on two nights accommodation in Sydney and the cost of plane ticket and the thousand kilometre round trip in the car to get to Perth, I decided the whole thing was out of my reach, way out.

Disappointed because I couldn’t afford to go, I gained some pleasure out of becoming cynical about the whole thing. Just another Pitt Street Cockie talkfest I reasoned, and those Pitt Street Cockies are so clever they know the answers before you ask the question and most of them don’t know where Western Australia is anyway!

I noticed the host of the event was a multi millionaire, one of the biggest carton manufacturers in the country, so he had a whopping vested interest.  I deduced he would have said to himself, ‘more food, more cartons, only two manufacturers in Australia so it’s worth a punt.’ I looked up the definition of the word ‘altruism’. Never met the man so I don’t know if it applies.

image003Will these men save or ruin Australian agriculture. We need to hear what they have to say.

Continue reading “Is China Australia’s Land of the Golden Fleece?”

The Future of Farming is in their Hands – Is it Safe?

If there is one topic that occupies the minds of farmers and those on the land more than the weather, or the price of wheat or wool or sheep or cattle – it is the future. Is there a future in agriculture for our children and grandchildren? If there is, what kind of future will it be?

Introduction – The Present – Where we Are.

There are statistics that show our agricultural productivity in Australia is declining not increasing. There are statistics that show increases in productivity are directly tied to investment in Research and Development. As a nation we are reducing our investment in research and development.

As we shall see later, there is evidence that bigger is not always better.

It is a worry that it was recently announced by Rabobank, one of the biggest agricultural banks in the world, that Australia is now the most expensive place in the world to grow wheat. It costs twice as much to milk a cow in Australia compared to the United States. Yet we compete in world markets with the United States for both dairy and wheat.

No grain grower will surprised to learn that in Australia it takes 16 trains to haul 60,000 tonnes of wheat to port, and in Canada it takes just six.

It is with almost regular monotony that we learn of yet another food processor closing down in Australia and moving overseas. It’s cheaper we are told to source the food overseas, process it there and the export the finished product to Australia, than it is to grow the food it and process it in this country.

Unless the world food supply changes dramatically, one way or another, Australia will increasingly rely on imported food. We are constantly bombarded, by politicians and this new breed of city-based agri-entrepreneurs with the proposition that Australia, can be the ‘Food Bowl of Asia’. What nonsense. We already import more processed food than we export.

What we export has very little if any value adding done to it. Boats full of grain and meat, raw wool, live sheep and cattle. It’s cheaper to import cakes and biscuits from Holland than it is to make them in Australia – why is that? We have imported bread dough from Ireland to be baked in Australia. Neither Holland or Ireland could be classified as a Developing Country.

We should not delude ourselves that the only food we import comes from countries with ‘cheap’ labour and costs. We have used that excuse once too often.

Our major retailers control over 80% of our food business. They have the ability to scour the world for the cheapest food they can buy. They do not care if it is cheaper than what is grown in Australia. If they do buy Australian then they drive the price down to the Australian producer to same price as they can buy it overseas. They have to protect their market share and profit.
On May 29 in the Farm Weekly  the Federal Minister for Agriculture, Barnaby Joyce, gave his views on the Muntadgin Farming Alliance and expressed some sympathy and empathy with the group and with farming in the eastern wheatbelt.
As a direct result of that interview, Ken Wilson, in the June 5 edition of the Farm Weekly, in the middle of seeding for many, put a series of questions to Nationals Member for Central Wheatbelt, Mia Davies, and Agriculture and Food Minister for Western Australia, Ken Baston.
At the Global Farmer, we believed the questions put to Ken Baston and Mia Davies by Ken Wilson deserved another outing, away from the rough and tumble of getting the crop in the ground. The Farm Weekly agreed so here they are. So now you can give these serious conversations some considered thought.
They are important questions. You make up your own mind on the quality, on the depth of the answers. Can we look forward to new future attacking old fundamental faults or just the same old parcel in different paper and a bit more tinsel, a few more balloons and a bigger whistle?
This time there are no time or space constraints. Read what Ken Baston and Mia Davies have to say and then have your say. Here are the questions:

Continue reading “The Future of Farming is in their Hands – Is it Safe?”

Is our current agricultural policy defending the people?

Mailler’s excellent article ‘Why is Agriculture Different’, begs the big question of the extent to which the agricultural industry’s relationship with government policy has resulted in a viable, sustainable and world competitive Australian agriculture? And if not, is the government failing to defend the people?

Empirical data – as Mailler brings to the fore – tends to show that the relationship of agriculture with government policy (in the context of global competition and the myriad of factors that express themselves through industry performance data and trends), has resulted in the industry exhibiting signs of systemic failure. The ‘vital signs’ of this industry are not good.

If one sets aside short term factors of drought, flood, fluctuations of commodity prices and looks at the long term trends, it is inescapable that revenue has been ‘chased’ by costs and in some cases overtaken by costs. The trends are seemingly inexorable.

While in any industry there will be leaders and laggards and those who fall off the bottom, the situation for agriculture as Mailler points out is not just the ‘tail’ that’s failing – it’s many of the core businesses that make up the industry.

Whether one agrees or disagrees with past and current agricultural policy, one must surely accept the notion that the outcomes are not good?

So what of policy for agriculture?

Governments have a primary duty to ‘defend the people’ and see to their wellbeing.

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Photo: Courtesy Veeoz

For a couple of hundred years, most ‘western’ governments have taken this duty to extend from:

  •  basic ‘human rights’ of health and education systems (safe drinking water, sanitation systems, hospitals, primary, secondary and tertiary education), through …
  • reform and development of democracy (wide range of concepts of what is democratic!)
  • military defence of their territory and its people from aggressors and on to…
  • making their industries competitive in the markets where their goods and services are sold.

Governments develop and implement POLICIES to cover all these aspects and more of our national life in pursuit of their big job to ‘defend the people’.

Importantly, governments generally see it as prudent to make the nation’s export industries profitable and sustainable in the longer term because their profits contribute so much of the resources to fund the implementation of all other policies!

One of my observations in Australia over the last 40 years or so is that agriculture has been progressively de-capitalised and made less resilient as a result of government policy. Local control of the industry is being lost as new capital, new vision and new policy comes in from overseas. Continue reading “Is our current agricultural policy defending the people?”