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Someone's Rain Dance is Working

Wed, 13 May 2026 01:36:16 GMT

From Tropical Moisture to Rainbands

To quote one of the more famous adverts of the 90's, "Marge, the rains are 'ere!", or so say the forecasts.

It's been Australia's driest April in eight years, and with the threat of El Niño breathing down our necks, expectations for drought relief in May weren't particularly high. But in a welcome turn of (weather) events, the first north-west cloudband (NWCB) of 2026 is set to develop over Australia, delivering a broad band of rain from the tropics to Tasmania.

According to the CSIRO, NWCBs are usually present over Australia for an average of 36 days per year, peaking from April to June. However, 2026 has had a distinct lack of true, unbroken north-west cloudbands, a rain-producing weather system.

NWCBs are the longest cloud features observed in our satellite images, stretching for thousands of kilometres from Western Australia to the east coast, providing up to 90% of cool-season rain across the inland.

They form when cool, dense air wedges beneath tropical moisture flowing into the mid latitudes. The result? The warmer, humid air is lifted and condenses into long bands of clouds.

Earlier this week, tropical moisture started flowing south over Queensland and the Northern Territory, leading to patchy rain over the northern interior. As this moisture travels further south, the cloud and rain will spread over the eastern outback.

While the average total will remain below 20 millimetres, the odd storm could help to produce up to 50mm near the Queensland-South Australia border.

By late this week, patchy rain should reach southern South Australia, but by the weekend, it's expected that a true NWCB will stretch across the nation.

The ABC reports that the rain this weekend is likely to extend from the central and southern NT down to the south-east states. All up, the system is modelled to drop 10 to 30mm of rain across the country, including most farming regions of SA, western and central Victoria, far west NSW, and south-west Queensland.

There are also signs of more rain towards the end of the month.

Long Range El Niño Outlooks

While Bridget Jones may have thought it was a blip, the Bureau of Meteorology (BOM) long-range outlook showed the odds were stacked against a wet month.

Their forecast, issued in late April, showed that, for most of Australia, rainfall was likely to be below average. But the cup seems to have been 1/4 full, with the chance of 75% below median falls turning into 25% of above median falls.

However, the surprise NWCB soaking has no relevance to El Niño's presence or strength this year. Drier seasons are still likely for the rest of 2026,

Sources: BOM , ABC

Bombshell Budget for Australian Agriculture

Wed, 13 May 2026 00:36:31 GMT

Primary Production Carved Out From Changes

The 2026/27 federal budget has been announced, dropping bombshells left and right. Treasurer Jim Chalmers has taken the axe to capital gains discounts, negative gearing and discretionary trusts – but what does this mean for agriculture in Australia?

Australia’s peak farming body, the National Farmers Federation, welcomed some key measures, saying they will ease pressure on farmers and strengthen the nation’s food and fibre supply chains. However, concerns have been raised about cuts to regional infrastructure, connectivity and the Department of Agriculture, Fisheries and Forestry.

Farmers will be exempt from most of the budget's trust changes, including the new 30% tax rate on discretionary trust distributions from 2028-29.

The NFF welcomed changes ensuring primary production income will be exempt from the new 30% trust tax, with NFF President Hamish McIntyre noting that there are around 40,000 trusts used in agriculture.

"...these are significant wins for family farm businesses and reflect the case we have consistently put to the Treasurer about how these changes would impact succession," he said.

“Family farms are generational businesses built over decades and often represent a family’s life savings and retirement plan. We are pleased the Government has listened.”

In addition to leaving primary production exempt from the new trust tax, the budget confirmed that there will be no changes to small business capital gains tax concessions.

It was also confirmed that the $20,000 instant asset write-off would be made permanent, a move that provides certainty for farm businesses looking to invest in equipment and technology.

Fuel Resilience Funded

Budget night also brought the announcement of a $14.8 billion fuel resilience package, expected to benefit primary production.

The Strengthening Australia’s Fuel Resilience package is expected to boost fuel security, strengthen supply chains, and relieve pressure on fuel users.'

The package includes:

$7.5 billion Fuel and Fertiliser Security Facility for near-term fuel and fertiliser purchases
$3.2 billion to create an Australian Fuel Security Reserve and increase the Minimum Stockholding Obligation (MSO)
$10 million in 2026-27 to develop feasibility studies to expand our domestic refining capacity
$54.7 million over five years from 2025-26 to manage Australia’s Fuel Security Framework
$9.2 million over two years from 2025-26 to deliver the Fuel Supply Taskforce
$8.2 million in 2026-27 to defer cost recovery arrangements for agricultural export services

The budget made no mention of whether the reduction of the fuel excise and heavy-vehicle road users charge would continue past the original commitment to 30 June, 2026.

The NFF welcomed the Government’s $10 billion fuel security package, designed to improve domestic fuel and fertiliser resilience with an emphasis on reducing the risk of supply shocks for essential users, including regional and agricultural industries.

Cuts Across Key Areas to Impact Agriculture

Sweeping cuts across the Department of Agriculture, pests and weeds, the Inland Rail Project and regional connectivity, including the Regional Tech Hub, are expected to impact agriculture.

“There could not be a worse time to pull back investment in supply chains and regional connectivity,” Mr McIntyre said.

“The Inland Rail was designed to strengthen supply chains, ease pressure on our highways and reduce the cost of moving produce from farm gate to consumers."

Inland Rail won't be proceeding to Queensland, with the northern half of the project, connecting Parkes in central New South Wales to near Brisbane, being dumped.

The project was expected to take around 200,000 trucks off the road each year and boost regional communities in New South Wales and Queensland.

In 2023, Dr Kerry Schott conducted an independent review that concluded Inland Rail was “an important project”, which was “needed to meet the increasing national freight task”.

The axing of the Regional Tech Hub was unexpected. The NFF-run (in partnership with the Australian Communications Consumer Action Network) service helped rural people identify the best phone and internet setup for them. This relatively small line item was funded by the federal government’s Better Connectivity Plan and was particularly important in the wake of the shutdown of the 3G network.

“The Regional Tech Hub helped more than 75 regional people each day in 2025 alone," noted Mr McIntyre.

“Without continued support for this service, regional Australians may lose a trusted service that has helped thousands navigate major technology changes and stay connected."

Funding for the program was not extended, with only funding to finish the NBN rollout and wi-fi in remote communities notable inclusions in regional communication.

Cuts to National Pest and Weed Control Programs

National pest and weed control programs have been slashed, with nearly $200 million to be redirected towards other policy "priorities".

About one-third of that funding will now go towards securing agricultural export and trade opportunities.

More than $104 million will be cut from grant programs, including the Pest and Disease Preparedness and Response Programs.

Independent senator David Pocock believes the federal government has failed to back up conservation commitments with funding.

He said this year's budget was "a short-sighted and tragic budget for nature with an absolutely paltry $110.8 million over two years for the Saving Native Species fund".

"No programs that protect and manage our incredible biodiversity were extended by more than a year or two," Senator Pocock said.

The Invasive Species Council has raised specific concerns about the spread of fire ants .

"Fire ants will continue to spread if we don't have the level of funding that's needed to contain them and eradicate them," said Jack Gough, CEO of the Invasive Species Council.

"We need to stop treating these projects as optional extras, they need to be core parts of the budget that don't get cut year to year."

National Farmers' Federation chief executive Michael Guerin said the budget had made "some pretty savage cuts to the department that we rely on, in areas that we believe we need investment".

"Biosecurity, if we get it wrong and we allow something in, we could spend generations regretting it," said Mr Guerin.

"So to see that funding in some cases only held, rather than lifted, and other cases cut, are really concerning and something we'll be taking up with the government."

Budget by Numbers

Primary production will benefit from several budget commitments, including:

$14.8 billion fuel resilience package
$730m of road funding for regional areas
$23 million over four years to support agricultural exports
$45m to sustain international trade and standards activities
$7m to expand the Australian Trusted Trader program
$131m for pest and disease preparedness and response programs
$8.7m additional for the Australian Pesticide and Veterinary Medicines Authority to reduce delays affecting agricultural chemical approvals
$315m into research, development and extension programs forecast by the Grains Research and Development Corporation, including $123m in federal contributions
$387m over the next four years to bolster CSIRO and the Australian Centre for Disease Preparedness research efforts
93 additional staff to the Department of Agriculture, Fisheries and Forestry, bringing overall departmental expenses to $1.55b

Sources: Senator David Pocock , ABC , The Conversation , Minister for Agriculture, Fisheries and Forestry , NFF , Farm Online

Payday Super Looms for Employers

Wed, 22 Apr 2026 00:57:38 GMT

The Cash Flow Reality

Payday Super is coming, and for agribusiness employers, it’s far more than a payroll tweak. It’s a complete change to cash flow.

From 1 July 2026, employers need to pay superannuation contributions at the same time they pay their employees’ wages. Contributions must be received by the

super fund within 7 business days.

For many agribusinesses, this change will have real operational and financial consequences.

The biggest business impact is simple: cash leaves your business sooner.

Under the current system, employers can hold super payments for up to a quarter. After this change is implemented, that “float” disappears.

Many businesses rely on the delay to manage short-term liquidity, and for small businesses with tight margins, this requires careful planning and forecasting.

Compliance Risks Increase

Quarterly systems allowed time to identify and fix mistakes. Payday Super compresses that window dramatically.

The ATO has announced that it will be closely monitoring Payday Super compliance. Late or missed payments will trigger penalties, including the Super Guarantee Charge (SGC), which adds interest and admin fees.

With reduced tolerance for late or incorrect payments and a tight timeline for super guarantee charge application, errors that were once minor administrative issues could quickly snowball.

Quick Steps to Prepare for Payday Super

1. Map your position

Take your current payroll and:

Convert super from quarterly to per pay cycle
Overlay it on your seasonal cash flow (harvest, input spend, revenue timing)

Hint: Look for pressure points, months where cash gets tight once super is paid in real time.

2. Upgrade payroll processes and capabilities

Ensure your payroll system can calculate super accurately every pay run.
Can it trigger payments quickly enough to meet the 7-day requirement?
Is it fully compliant with SuperStream?
Define processes for off‑cycle runs

3. Clean up employee super data

Audit:

Missing or incorrect super fund details
Duplicate records
Incomplete onboarding info

Hint: Seasonal and casual workforces are especially exposed here.

4. Align payroll, finance, and operations

You need:

Finance aware of real-time super cash outflows
Operations aware that labour now triggers immediate cost
Payroll aligned with both

In ag businesses, labour spikes (planting, harvest) now bring an instant cash impact.

Payday Super is a business model adjustment with a compliance change. Treating it as a strategic shift will ensure your business is resilient, transparent, and future-ready.

Relevant Articles: Employers Will Be Required To Pay Superannuation On Payday
Sources: ATO , FairWork

Australian Government to Underwrite Fertiliser Deals

Wed, 22 Apr 2026 00:17:39 GMT

More Fertiliser On The Way

The Australian Government has today assured farmers that more fertiliser imports are on the way.

Utilising new strategic reserve powers, the government confirmed an agreement has been reached with Wesfarmers subsidiary – Export Finance Australia CSBP – and Incitec Pivot.

This new agreement sees the government underwrite the financial risks of importing fertiliser from overseas as the ongoing conflict and closure of the Strait of Hormuz continues to disrupt global commodities.

Speaking on ABC's Radio National program, Agriculture Minister Julie Collins says Australia has enough fertiliser on the way for the "initial planting season", and is seeking to secure further supplies.

"What we're doing is we're outsourcing more fertiliser right across the globe," she says.

Last week, it was announced that Indonesia would be sending an additional 250,000 tonnes of urea to Australia. The deal, between Incitec Pivot Fertilisers and PT Pupuk Indonesia, is supported by the Australian and Indonesian Governments.

Collins says that this additional 250,000 tonnes would cover 20% of the shortfall Australia needs for this coming season.

The Indonesian fertiliser has been welcomed by the National Federation of Farmers (NFF).

"Securing an additional 250,000 tonnes of urea provides some much-needed certainty. This is around 20 per cent of the remaining fertiliser needed for the season ahead," said NFF President, Hamish McIntyre

Minister for Foreign Affairs, Penny Wong, said the government was working to strengthen our shared energy and food security.

"Indonesia is one of Australia's closest neighbours and friends, and we thank the Indonesian Government for their partnership," she said.

"Australian farm output is necessary for regional food security, and this is a crucial contribution to securing inputs via Australia’s largest fertiliser distributor, Incitec Pivot," remarked Scott Bowman, President, Incitec Pivot Limited.

"This additional volume for the period May to December, at prevailing market prices, is another critical plank in servicing the needs of Australian farmers," he said.

While a fixed price has not been set with Indonesia's state-owned Pupuk, the minister is hopeful that the combination of the Indonesian deal and what is currently on the water being shipped to Australia will get farmers through the coming season.

This announcement comes on the heels of Prime Minister Anthony Albanese's visit to Brunei to shore up supplies of urea and diesel.

Brunei Darussalam currently supplies 11% of Australia's fertiliser-grade urea imports.

While no official deal was struck on this visit, a joint statement from Prime Minister Anthony Albanese and His Majesty Sultan Haji Hassanal Bolkiah, Sultan of Brunei Darussalam, reaffirmed the two countries' relationship.

"We are committed to working together to strengthen energy supply chain resilience, including by deepening regional cooperation, accelerating alternative energy resources including renewable energy, and maintaining open trade flows," it noted.

Sources: ABC , NFF

Australian Government media releases:

Securing more fertiliser for Australian farmers

Getting fertiliser to farmers faster

Joint statement on energy and food security

Chinese Market Goes Nuts For Australian Almonds

Tue, 10 Mar 2026 23:16:40 GMT

The numbers are in, and our almonds are booming. Recent data shows that Australia produced a record $1.3 billion in almonds, with prices rising thanks to surging demand from China.

While production tonnage was down by 5%, Hort Innovation's Australian Horticulture Statistics Handbook for 2024/25 shows that the crop value has increased 20% year-on-year.

Australian Almond Board chief executive Tim Jackson said growers were getting their best returns in a decade.

"It's been a perfect storm for Australian almonds," he said.

"We've had a low exchange rate, but also trade agreements with China and India has seen demand for almonds go through the roof, and growers have been able to extract a premium."

Hort Innovation's data shows almond exports to China surged from 33,373 to 76,132 tonnes – an increase of almost 130%. Mr Jackson said China was consuming Australian almonds "in every which way you can think".

"Value-added [almond] milk, snacking, processing, it's such a diverse market," he said.

"And the fact we can land them there with zero tariff, compared to the 50 per cent tariff that Californian almonds [are taxed], means we've got more and more Chinese buyers trying to source Australian almonds."

"China is currently 61 per cent of total exports, which is getting into territory that is concerning," he said.

"But given we've come out of some of the lowest prices and returns in recent history, you can't blame growers for pushing more almonds into China, where there's a premium and such strong demand."

Australia is forecast to harvest a record almond crop this year of 167,000 tonnes, despite rain delay.

Sources: ABC , Hort Innovations Australian Horticulture Statistics Handbook 2024/25

Littleproud Leadership Era Ends

Tue, 10 Mar 2026 22:59:27 GMT

Update 11/03/26 10:21 am ACDT

Matt Canavan has been elected the new Nationals leader in a party room meeting, with Darren Chester elected as Deputy.

Sources: David Littleproud MP Facebook , FarmOnline , ABC

Featured Image Source: David Littleproud MP Facebook

After a four-year stint at the helm of the National Party, David Littleproud MP has stepped down, saying it is time for someone new to take the reins.

Speaking to the media on 10 March, Littleproud told reporters, "I'm buggered, I've had enough," revealing that he had intended to resign after the Coalition reunited earlier this year.

"With two years until the next election, and the Coalition relationship now restored and strong, it is the right time to refresh the leadership of The Nationals," he said in his official statement.

Mr Littleproud has been the leader of The Nationals since May 2022, when he successfully defeated Barnaby Joyce in a post-election ballot.

"I love the National Party. I grew up in it. I'll bleed it till the day I die. Green and gold. I love it, and it would be wrong for me to say that I'm the right person to continue to lead," he said on Tuesday.

Mr Littleproud also reflected on his "faith in Angus Taylor's ability to lead the Coalition".

"I'm satisfied, from what I've seen of Angus Taylor and the way that he has handled himself, that we are now competitive again," he said.

"The values and principles that Angus has brought back to the Coalition give me confidence that the Coalition is on the right track."

His resignation as leader has sent shockwaves through the party, leaving the question of leadership unclear until later this week, when a party room meeting will be held.

Senator Matt Canavan and deputy leader Kevin Hogan have already announced their plans to contest the leadership. Former leader, Michael McCormack and Nationals Senate leader Bridget McKenzie are also potentially in the mix to take up the mantle.

M r Littleproud's leadership saw him lead the Coalition's successful fight against Labor's Voice to Parliament, push for the Coalition's commitment to Net Zero to be scrapped, champion nuclear energy and embed a commitment for the Regional Australia Future Fund in the Coalition Agreement.

H e will continue to serve in parliament as the member for Maranoa and said he intended to contest the next federal election in 2028.

LambEx26 Registrations Open

Wed, 04 Feb 2026 05:11:58 GMT

Confirmed speakers include:

Registrations are now open for Australia’s flagship sheep, lamb and wool conference, LambEx26, to be held at the Adelaide Convention Centre from 8–10 July 2026.

LambEx26 is expected to attract more than 2,000 producers, processors, academics, advisors, students and industry leaders from across Australia, New Zealand and overseas, reinforcing its position as the premier forum for the red meat and wool sectors.

The 2026 theme, Telling Our Stories, reflects an industry navigating rapid technological change, evolving markets and deeper connections with consumers, while ensuring producers remain central to the conversation.

LambEx Taskforce Chair Jamie Heinrich said the program has been designed with a strong focus on real-world relevance and practical insight.

“LambEx26 brings together people who understand the realities of working across the sheep, lamb and wool supply chain, while also weaving in speakers who provide new ideas, fresh perspectives and a different way of thinking about the future," Mr Heinrich said.

"The event is also about connection - bringing people together to learn from one another, build networks and takeaway insights that open new opportunities within their businesses."

A program snapshot is available now, with further high-profile speakers, industry and leadership breakfasts, innovation showcases and other popular events to be announced in the coming months.

In keeping with tradition, LambEx26 will again feature the AMPC Carcase Showcase, the Coles Trailblazers Program, and the Elders Grandslamb Gala Dinner.

The conference will extend beyond the Adelaide Convention Centre on Friday 10 July, with the introduction of LambEx On Tour — a new initiative offering seven curated tours showcasing South Australian innovation, production systems, supply chain leadership, regional stories, culture, flavour and craftsmanship.

Mick Fanning , Australian surfing champion and global sporting icon, speaking on high performance under pressure

Gus Balbontin , leading futurist and business thinker, challenging delegates to view the future through a different lens

Julia Jones , respected New Zealand agribusiness analyst, sharing unfiltered insights and a global perspective on agriculture

Jess Pryles , internationally recognised barbecue expert, exploring the paddock-to-plate story of meat and how to cook it

Jerome LeRay , agricultural innovator and artificial intelligence leader, discussing the role of artificial intelligence in animal production

For Early Bird registrations, further details, and conference highlights, visit www.lambex.org.au

Upcoming Workplace Law Changes in AUS Ag

Wed, 04 Feb 2026 05:01:40 GMT

What’s Changing and When

Australia’s workplace landscape is evolving, and the impacts will be felt from the boardroom to the back paddock. With a review of the National Employment Standards (NES) underway, a proposed ban on non‑compete clauses, new payday superannuation requirements, and emerging restrictions on non‑disclosure agreements (NDAs) in sexual harassment matters, employers across agriculture and regional production need to prepare now.

At The Lucas Group, we partner with agribusinesses, producers, packhouses, feedlots and rural supply companies every day. We understand the realities of seasonal peaks, tight labour markets and the importance of retaining trusted people in regional communities. Here’s what’s changing, when it’s coming, and how to get your operation ready.

NES inquiry

The Federal Government has commenced a review of the National Employment Standards. Outcomes could affect core conditions such as hours of work, leave entitlements and flexibility provisions. Expect consultation through 2025 with potential legislative changes thereafter. Keep an eye on updates that may affect casual, seasonal and shift-based arrangements common in agriculture.

Ban on non‑compete clauses

In March 2025, the Treasury announced action to stop unfair non‑compete clauses that suppress wages and mobility. As proposed, a ban would apply to workers earning below the Fair Work Act high‑income threshold (currently $183,100 p.a.). The Government will also consult on:

Non‑solicitation clauses (clients and co‑workers)
No‑poaching and wage‑fixing agreements
The use of non‑competes for high‑income workers

Reforms are intended to commence prospectively from 2027 following consultation and passage of legislation.

Payday superannuation

From 1 July 2026, employers will be required to pay superannuation guarantee (SG) at the same time as salary and wages, with contributions needing to reach employees’ funds within seven business days of payday. Employers who miss the timeframe may be liable for the superannuation guarantee charge. The ATO will use the increased payment frequency to identify non‑payment more quickly,

What This Means for Agricultural Employers

Regional talent mobility: The proposed non‑compete ban will increase movement across local markets. Think agronomists, territory managers, livestock buyers, packing supervisors and farm managers. Employers will need to rely less on restraints and more on strong employee value propositions, competitive remuneration and meaningful career paths.

Payroll cadence and cash flow: Payday super will shift cash flow planning, particularly for enterprises with large casual workforces during harvest, crush or peak processing. Payroll systems, super clearing arrangements and bank cut‑off times will need to be tightly managed.

Policy and culture focus: Evolving expectations around NDAs and harassment prevention reinforce the need for robust, trauma‑informed policies and training, particularly where teams work in dispersed locations, camps or remote facilities.

NES outcomes: Any changes to leave, rostering or flexibility could have flow‑on effects for seasonal scheduling, piece rates, accommodation arrangements and fatigue management in agriculture.

Practical Steps to Stay Compliant and Prepared

Audit contracts, identifying all roles with non‑compete provisions—prioritise employees below the high‑income threshold and high‑turnover roles in sales, technical services and operations.
Plan your alternatives, replacing blanket restraints with targeted, enforceable protections—confidentiality and IP clauses, non‑disparagement where appropriate, and reasonable non‑solicitation clauses (subject to future guidance).
For senior roles, ensure the contract allows garden leave during notice to protect sensitive information and client relationships.
Review permissions across CRMs, farm management software, procurement systems and shared drives. Limit access to “need‑to‑know” and prevent downloads to personal devices.
Brief executives, HR and hiring managers on timelines and likely impacts to avoid unenforceable terms in new contracts.

Prepare for the non‑compete reforms

Get payroll ready for payday super

Upgrade your payroll systems. Confirm your software can calculate, lodge and transmit SG with each pay run, and integrate with your super clearing house. Test end‑to‑end processes.
Align pay cycles where possible, rationalising multiple pay cycles (casuals, full‑time, contractors) to reduce complexity and risk of late contributions.
Confirm super fund contribution cut‑off times, processing windows and clearing delays. Especially around public holidays and regional bank cut‑offs.
Upskill your payroll, site administrators and farm accountants on the seven‑business‑day receipt rule, SG charge risks, salary sacrifice handling and record‑keeping.
Forecast SG outflows across seasonal peaks (e.g., harvest, mustering, packing) and engage lenders early if smoothing is required.

Monitor the NES inquiry

Map potential impacts, identifying where changes to hours, leave, or flexibility could affect roster models, camp accommodation, fatigue protocols and seasonal planning.
Build scenario plans for different outcomes so you can adapt quickly without disrupting operations.

How The Lucas Group Can Help

We’re more than recruiters, we’re partners in prosperity for Australia’s food and fibre sectors. Our team can help you:

Audit and refresh employment contracts for compliance, working alongside your legal advisers.
Design role architectures, career pathways and retention strategies that reduce reliance on restraints.
Benchmark remuneration and benefits across regional markets to stay competitive.
Prepare payroll and HR teams for payday super with practical checklists and change plans.
Build robust policies and training for respectful workplaces across farms, feedlots, packhouses and processing sites.

Next Steps

Prioritise a contract and policy review in Q1–Q2 2025.
Engage payroll and finance on payday super system changes by mid‑2025; schedule testing well before 1 July 2026.
Brief your leadership team on the non‑compete reforms and likely timelines; avoid adding unenforceable clauses to new contracts now.
Stay close to NES developments and NDA guidance through 2025.

This article provides general information only and is not legal advice. The Lucas Group stands with Australia’s agricultural employers to build compliant, resilient and high‑performing teams—today and through the changes ahead.

From Sheep’s Back to Header Tracks

Tue, 09 Dec 2025 23:38:37 GMT

Sheep Dearer Than Deere

Australia was once said to be “built on the sheep’s back”, but after almost 150 years of wool dominance, the balance is shifting. Across the country, broadacre cropping is steadily edging out mixed farming.

In 1797, John Macarthur brought his first Merino sheep to New South Wales and kicked off one of Australia's most profitable and long-lasting industries. By 1870, Australia had become the world’s largest wool producer, a title it would hold for generations. Today, we remain the second-largest producer and the global leader in high-quality wool exports.

Yet despite this legacy, the national flock has been in long-term decline. Since 1990, national flock stock numbers have fallen by almost 100 million – from 170 million to 74 million.

Meat & Livestock Australia’s 2025 Sheep Industry Projections reported another 6.2% contraction as of June 2025, bringing the flock to 74.2 million head.

For many farmers in prime cropping regions, the numbers simply don’t stack up. Running sheep can’t compete with the returns - or the efficiency - of modern cropping systems.

Tim Rethus, who phased out sheep on his Horsham-district farm 25 years ago, recalls the turning point clearly.

"Sixty bales of wool in the 90s was worth one paddock of wheat in profit," he said, noting the work involved just didn’t match the profit.

Today, millions of dollars’ worth of machinery roam his paddocks. "All the [cropping] equipment is slowly getting closer to automation," he said.

"They're adding things onto machines to take away some of the human interventions required and turning the operator into more of a supervisor."

Herd Mentality Not Completely Gone

But not everyone is moving away from sheep. In Marnoo, east Wimmera, farmer Trent Carter is doubling down on dual enterprises. Of his 3,400-hectare farm, 2,400 hectares go to crops and the remainder to sheep and fodder. For him, the two enterprises go hand in hand.

Mr Carter said some people were deterred from running sheep because of the labour involved, but he believes investment in shearing sheds, yards and handling equipment was needed.

"There's no difference from a decent set of yards to a decent tractor, it's enticing that younger generation to work in your industry," he said.

Click Goes The Shears, Boys (and Girls)

While it’s easy to assume the next generation prefers high-tech machinery, some young farmers are leaning back into livestock.

Longerenong Agricultural College student and generational farmer Oliver Moore has his sights set on increasing sheep in their business.

"It gives a bit of diversity for an income and you're doing something different every day," he said.

"I love roustabouting, helping out the shearers, sweeping the wool, picking up the fleeces and do a bit of skirting of the fleeces as well," he said.

The girls are getting into the sheds too, ready to grab the sheep by its fleece.

While just under 5 per cent of the shearing workforce were women in the 2021 Census, industry groups say numbers rose during COVID when international shearers couldn’t travel.

At TAFE NSW’s Primary Industry Centre in Wagga Wagga, head agriculture teacher Rob Harris says nearly half his wool-classing students are now women, and around 10% of learners are shearers.

"They're terrific shearers, they're really smooth, they get on the skin, have few cuts, and they start pumping them out. They're really good," he said.

"If you've got other women there who can be mentors, that is just so much better … even though it might be a male-dominated area, the success of all women in agriculture is really good."

Cropping Up But The Sheep's Not Gone Yet

Australia may never return to the flock numbers of the early ’90s, but sheep remain an important pillar of many broadacre farms and of the national economy.

MLA expects the sheep industry to enter a period of gradual recovery, with the national flock forecast to grow by 2.1 per cent in 2026 and a further 4.3 per cent by 2027, reaching 78.9 million head.

And with young farmers like Moore convinced livestock will remain central to their operations, the tradition that helped shape the nation is far from blown.

Sources: ABC , MLA , ABC , State Library NSW

Guide to Workforce Priorities For 2025–26

Sun, 07 Dec 2025 23:42:57 GMT

Secure Critical Capability Early

Australia’s primary industries are gearing up for a standout year.

With ABARES forecasting record production and export values across agriculture, fisheries and forestry in 2025–26, the opportunities are endless. What will set your agribusiness apart from the rest will be your team. From people-capable leaders to skilled operators, a cohesive team is your golden ticket.

To help you make the most of the momentum of the first half of the financial year, we've put together a guide to our advised workforce priorities. Producers and agribusinesses should start to hone in on their team now, so that you can hit 2026 with momentum.

Lock in peak-season talent: Confirm returning operators and supervisors by quarter-end; issue early offers for header/chaser operators, spray technicians, station/overseer roles, diesel mechanics and grain site supervisors.

Build bench strength: Create relief pools for livestock handling, QA and maintenance; develop temp-to-perm pathways for proven seasonal staff.

Map your risk roles: Identify single-point-of-failure positions (farm managers, mill supervisors, export documentation, feedlot animal health) and secure succession plans.

Strengthen Retention And Your EVP

Competitive, transparent remuneration: Benchmark base pay, allowances and incentives, making sure you align with current market movements to attract or retain the best talent.

Rosters that work: Offer predictable shifts, RDOs and harvest load-up/down plans to manage fatigue and retention.

Housing and relocation support: Clean, safe accommodation, fuel allowances and family relocation assistance remain decisive in regional candidate attraction.

Career pathways: Document progression (operator to senior operator to 2IC to manager); recognise skills acquisition with pay steps and titles.

Safety and well-being: Invest in WHS leadership. Mental health support and well-maintained equipment are your most powerful retention tools.

Invest In Leadership At Every Level

Micro-credentials: Ensure you're helping your staff and business by providing targeted certifications (HACCP, Freshcare, ChemCert, loader/forklift, NHVR/CoR).

First-line leaders: Equip managers and 2ICs with coaching, performance conversations and roster planning skills.

Change leadership: Support rollouts of new equipment, software and site layouts with clear communications and short, sharp training.

Upskill teams: Focus on precision ag tech and cross-training to create versatile teams with broad skillsets.

Culture and accountability: Set simple, consistent rhythms. Daily huddles, weekly plan-on-a-page, monthly KPI check-ins, etc...

Succession Planning And Regional Pipelines

Talent mapping: Identify internal successors and external targets for manager, head stockperson, maintenance lead and QA roles.

Mentoring and co-piloting: Pair emerging leaders with experienced operators; share responsibilities during peak seasons to accelerate learning.

Ownership pathways: Explore share-farming, profit-share or equity-linked incentives to retain top regional talent.

Metrics That Matter

Time-to-fill and time-to-productivity for critical roles
Voluntary turnover and return rate of seasonal staff
LTIFR/TRIFR, fatigue breaches and audit pass rates
Training hours per FTE and cross-skill coverage
Machine utilisation, unplanned downtime and rework rates

2025–26 is a year to build capacity, not just fill gaps. If you’re ready to strengthen your workforce for safety, productivity and growth, talk to The Lucas Group. We’ll help you assemble the team that turns a record outlook into a lasting advantage.

2025–26 Set to be a Watershed Year for Ag

Fri, 05 Dec 2025 23:48:26 GMT

Record Production And Exports On The Horizon

Australia’s agriculture sector is set for an exceptional year. ABARES’ December quarter reports forecast combined agriculture, fisheries and forestry production to reach a record $106.4 billion in 2025–26. Agricultural production alone is expected to hit $99.5 billion—the highest on record—driven by firm livestock markets and steady national crop value.

Strong restocker demand is lifting livestock prices and value across sheep, lamb, and cattle, even as turnoff moderates.
Combined agriculture, fisheries and forestry export value is forecast to rise to $83.9 billion, with farm exports projected at $78.9 billion.
These settings underscore the strength, resilience and global competitiveness of Australia’s primary industries as we head into 2026.

Profitability And Crop Outlook

Average broadacre farm cash income is forecast to reach $227,000 per farm in 2025–26—an encouraging lift for producers.
Australia’s national winter crop production is on track to reach 66.3 million tonnes, the second-largest on record.
Harvest is well underway across all states, with significantly above‑average yields reported in northern New South Wales, Queensland and Western Australia. Parts of south‑east Australia, however, experienced a dry spring that tempered yields in some districts.

What This Means For Producers And Agribusiness

Record production and export settings heighten the need for capable leadership, skilled operators and resilient teams across the value chain. To convert market momentum into sustainable results, we’re advising clients to prioritise workforce strength in:

Livestock and red meat
Broadacre and grains
Inputs and services
Export growth and market access
Business performance

Plan Now To Make 2026 Your Year

The outlook is outstanding. Turning it into sustained performance will come down to people—capable leaders, skilled operators and cohesive teams. If you’re planning for 2025–26, The Lucas Group is ready to help you build the workforce that carries your business confidently into 2026 and beyond.

Look at out Guide to Workforce Priorities For 2025–26 for more information and advice about how to leverage this momentum into 2026.

Source: ABARES

Do You Know Your Public Holiday Obligations?

Sun, 23 Nov 2025 23:43:54 GMT

When are the Christmas/New Year Public Holidays for 2025?

The holiday season across November and December is a busy time of year for any Aussie employer.

You're busy trying to balance shutdowns, shifts, family commitments and the external commitments of your employees. Add in seasonal peaks, casual workforces, remote operations, and award coverage across farms, packhouses, and processing sites, and it’s no wonder holiday pay is one of the most common compliance pain points in Australian agribusiness.

We all know agriculture doesn’t stop just because it’s Christmas, but it’s important to be aware of what you need to do to maintain your agribusiness's compliance over this period.

Thursday 25 December - Christmas Day

Friday 26 December - Boxing Day

Wednesday 1 January - New Year's Day

In some states, Christmas Eve and New Year's Eve are also public holidays in the evening. View the Fair Work Australia overview of all state's public holidays for 2025 here .

What’s The Law?

Your obligations for public holiday pay are typically outlined in the relevant modern award or enterprise agreement. These documents spell out the specific penalty rates for your industry.

No award or agreement? No worries. In that case, your employee’s contract will be the go-to for determining public holiday pay.

When it comes to public holidays, the Fair Work Ombudsman mandates that workers receive at least their base pay rate. However, our experience has shown that many industry awards and agreements go the extra mile to recognise the dedication of those keeping our farms and production lines running, even on holidays.

These additional entitlements often include:

Public holiday penalty rates
Extra day off or additional annual leave
Minimum shift lengths on public holidays
Time in lieu arrangements

For instance, the Pastoral Award 2020 allows for time in lieu arrangements and penalty wages. This approach ensures that our hardworking farm hands, shearers, and livestock attendants are fairly compensated for their dedication during public holidays.

The award stipulates that, “An employer and employee may agree to substitute another day for a day that would otherwise be a public holiday under the NES.”

Otherwise, penalty rates ranging from 200% to 250% of the ordinary hourly rate apply to wages, depending on the specific role and circumstances.

In the Horticulture Award 2020 , public holiday arrangements could be a time in lieu agreement or penalty wages. Casual employees are to be paid 225% of the employee’s ordinary hourly rate (inclusive of the casual loading). All other staff are paid at 200% of the ordinary hourly rate or 200% of the piece rate.

Can I Require My Employees to Work on Christmas?

Under the Fair Work Act 2009, employers can request that employees work on a public holiday if the request is reasonable. Conversely, employees have the right to refuse to work on a public holiday if they have valid reasons for doing so. In the first scenario, the burden of proof lies with the employer, while in the second, it rests with the employee.

This entirely depends on the request being ‘reasonable’. The idea of ‘reasonableness’ is measured against a lot of different factors, including:

the employee’s personal circumstances, such as their family responsibilities
whether the employee is entitled to penalty pay or additional compensation that reflects the expectation to work on a public holiday
whether the employee works in a full-time, part-time, casual or shift work capacity
the advance notice given by the employer in making the request
the advance notice given from the employee if they refuse the work
whether the employee’s existing employment contract and salary includes work on a public holiday
whether the employee could reasonably expect the employer might request work on the public holiday.

Understanding your obligations around public holidays is crucial for valuing your hardworking team and keeping your operation running smoothly. Need a hand sorting it all out? That’s what we’re here for. Give us a bell, and we’ll help you ensure your workforce is fairly compensated, keeping your business thriving and contributing to our nation’s agricultural success.

Sources: Horticulture Award 2020 , Pastoral Award 2020 , National Employment Standards (NES)

More Information: Fair Work Australia - Not working on public holidays , Fair Work Commission - Entitlement to be absent from employment on public holiday

New Parental Leave Protections In Place

Sun, 23 Nov 2025 23:13:29 GMT

An Overview of Baby Priya's Law

From 7 November this year, new protections have been applied to employer-funded paid parental leave to cover tragic situations.

Known as "Baby Priya's Law", the new legislation protects employees in the event of stillbirth or infant death. The changes to the Fair Work Act ensure that employees planning to take, or who are receiving, employer-funded paid parental leave can’t have this leave refused or cancelled if their child is stillborn or dies.

The Fair Work Amendment (Baby Priya’s) Act 2025 introduces new protections for employees who plan to take, or are already on, employer-funded paid parental leave.

The Fair Work Act has been changed to prohibit an employer from refusing or cancelling employer-funded paid parental leave for an employee because that employee’s child is stillborn or dies. This applies if both:

the employee would have been entitled to the leave under their terms and conditions of employment if their child had not been stillborn or died; and
the leave is associated with the birth of an employee’s child or the child of an employee’s spouse or de facto partner, or the placement of a child with the employee for adoption.

This protection applies where a child is stillborn or dies on or after 7 November 2025 .

The employer can only refuse or cancel the leave because of the stillbirth or death if an exception applies, or if the employee has requested that the leave be cancelled.

Employers who breach this protection could face civil penalties.

Exceptions to the Changes

Some exceptions can apply to the Fair Work Act changes.

Right to cancel employer-funded paid parental leave

The new protections don't apply if an employer can refuse or cancel employer-funded paid parental leave because of stillbirth or the death of a child under the employee’s terms and conditions of employment, such as an employment contract or enterprise agreement.

It's important to note that this exception doesn't apply if the employee's terms and conditions of employment are varied by the employer after 7 November 2025.

No entitlement under terms and conditions of employment

The protection doesn’t apply if an employee isn’t entitled to employer-funded paid parental leave because of stillbirth or the death of a child under the terms and conditions of their employment.

However, this exception doesn’t apply if their terms and conditions are varied by the employer after 7 November 2025 to allow this.

Other leave entitlements apply

The protection doesn’t apply if an employee is entitled to other forms of leave related to stillbirth or the death of a child under their terms and conditions of employment.

When working out whether this exception applies, the other forms of leave that might be relevant don’t include an employee’s entitlement to compassionate leave or unpaid parental leave under the National Employment Standards (NES), or an entitlement under their terms and conditions of employment with the same or substantially the same effect as those NES entitlements.

What Baby Priya's Law Means for Your Business

The main impact of these changes will be where a company-funded parental leave policy is silent or unclear on the employee’s rights to take the leave in the event of stillbirth or infant death, the new laws make it crystal clear that employers cannot cancel or refuse the leave without the employee’s agreement.

As an employer, you will need to ensure that you understand your rights and obligations under your existing parental leave policies and that any introduced employer-funded leave policies will need to align with the new laws.

By reviewing your policies and understanding your obligations, you can make sure your business is not only compliant but also a place where employees feel valued.

Source : Fair Work Australia

Get Your Goat (Salami)

Tue, 18 Nov 2025 23:54:19 GMT

Goat Production Up. Consumption? Not Yet.

Could goat salami be the next big trend in Australian supermarkets? Meat & Livestock Australia (MLA) and The Gourmet Goat Lady believe so, after recently completing an Australian goatmeat salami proof-of-concept project.

Australia is the world's biggest goatmeat exporter, while in an ironic twist, we're also the least likely to eat it.

As a nation, we produce 44 per cent of the world's goatmeat exports. In 2024, we exported 51,489 tonnes swt, an increase of 51.9 per cent on 2023. In fact, MLA's 2025 global goatmeat snapshot said Australian production had increased by 248 per cent since 2020.

But, only 9 per cent of domestic goat meat is consumed locally.

Jo Stewart, founder of The Gourmet Goat Lady, says she often finds herself telling people "there's more to goat than curry".

Award-Winning Goat Salami Project A Success

The MLA and The Gourmet Goat Lady worked with smallgoods producer Papandrea Fine Foods to ensure that goat salami could be manufactured safely and meet regulatory requirements for sale in Australia, achieving approval from the NSW Food Authority.

The initiative aims to position value-added Australian goatmeat as a premium offering for consumers seeking pork-free alternatives.

The project found that there was significant potential for goatmeat smallgoods, both domestically and abroad.

A finding that was confirmed when their product won gold at the 2025 Melbourne Royal Australian Food Awards in the champion smallgoods section.

“Winning a gold medal at the 2025 Melbourne Royal Australian Food Awards for our goat salami is a proud moment,” Jo Stewart, founder of The Gourmet Goat Lady, said.

“It reflects not only the craftsmanship behind the product but also the rigorous research and development process we undertook with MLA and Papandrea Fine Foods."

The gold medal, awarded in the “Champion Smallgoods” category among 182 entries, recognises outstanding flavour, balance, texture and craftsmanship – setting a benchmark for excellence in the Australian food industry.

Goatmeat On The Rise

Reflecting on the significance of this achievement for the industry, MLA’s Group Manager for Science and Innovation at MLA, Michael Lee, said the project opens new opportunities for goatmeat both domestically and abroad.

“This project demonstrates the potential for goatmeat to move further up the value chain through a safe, high-quality smallgoods product,” Mr Lee said.

“Given that goatmeat is consumed globally with few religious or cultural taboos against its consumption, the potential scope and reach of the market for goatmeat smallgoods is significant.”

Rigorous testing throughout production validated food safety, and approval was granted for the trial recipe. The process closely mirrors traditional salami manufacturing, making integration into existing smallgoods operations straightforward.

Importantly, farmed goatmeat provided sufficient fat for an 80:20 meat-to-fat ratio, delivering a lean yet high-quality product compared to the typical 70:30 ratio in pork salami.

This ensures a leaner product while maintaining quality and sensory attributes. Importantly, the manufacturing process mirrored that of other uncooked comminuted fermented meat (UCFM) products, meaning goat salami can be integrated into current smallgoods production systems without significant operational changes.

Additional safety measures, such as freezing raw inputs and enhanced microbial testing, were found to be practical and economically viable.

“For regular salami or deli meat buyers, goat salami represents a gourmet, artisanal alternative that aligns with growing interest in unique, high-quality products," said Mr Lee.

Jo and Craig Stewart will be showcasing their award-winning goat salami at MLA’s Carcase Utilisation Hub during the upcoming MLA Updates event in Adelaide on 20 November.

Sources: Farm Online , ABC , MLA

‘Stand with the Land’ for 2025's Ag Day

Tue, 18 Nov 2025 23:31:48 GMT

New Ag Day Theme Calls to "Stand with the Land"

Australia's Annual National Agriculture Day returns on 21 November 2025, calling on all Australians to 'Stand with the Land'.

Held on the third Friday of November each year, Ag Day is one day to celebrate an industry that’s part of our lives every single day.

The National Farmers’ Federation (NFF) is urging the public to get behind farmers and agriculture, with the 2025 theme.

The #agdayau website notes that over the past year, our industry has navigated record-breaking floods, devastating droughts, imperfect policies, and trade disruptions.

Previous NFF President David Jochinke said this year’s theme, Stand with the Land, honours the sector’s trials and tribulations.

“We’ve given Ag Day this theme because we want as many people as possible to get behind the day,” Mr Jochinke said.

NFF President Hamish McIntyre said the annual event is a wonderful chance to celebrate the people behind our nation’s food and fibre.

“Some Aussies know very little about the farmers and workers who, against all odds, continue to put food on their tables," Mr McIntyre said.

“Everyone in the ag industry shows extraordinary grit and innovation, and today is the day to celebrate that determination.”

Ag Day Photo Competition

Building on tradition, the 2025 event provides people with the chance to win a share of $5,000 cash thanks to competition sponsors Syngenta.

Ag Day is all about celebrating the people, places, and produce that make Australian agriculture unique. And what better way to share your story than through your own lens? Whether you’re a budding photographer, a videographer, or just someone with a smartphone and a keen eye, we want to see your take on life on the land.

NFF President Hamish McIntyre said the competition is a highlight of Ag Day celebrations.

“Every year we’re blown away by the creativity and passion that shines through in these entries. It’s a chance for everyone to show the world why agriculture is at the heart of our communities,” he said.

Entries are open to all ages and skill levels, with prizes up for grabs, including $2,000 for first place, $1,000 for second, and $500 for four runners-up. The judges are looking for photos and videos that capture this year’s theme, Stand with the Land.

The competition closes at 5 pm AEDT on Ag Day, Friday 21 November 2025.

How You Can Join In The Celebrations

The NFF has highlighted the many ways people can get involved this year.

“We’re calling on all Australians to Stand with the Land this Friday. Whether it’s attending an Ag Day event, entering the photography competition, or posting photos on social media; it all helps our industry feel appreciated," said Mr McIntyre.

With harvest on across most of Australia, the NFF is encouraging farmers to share snippets of their day with the public through social media.

"...there’s no better time to share a photo or video of what’s growing in your paddock that will end up on the dinner plates of millions of Australians."

You can get all the information about National Ag Day here , including the photo competition, promotional resources, and a list of events happening across Australia.

Sources: NFF , NFF , NFF , Australian Agricultural Sustainability Framework

'La Vie En Fromage' As Mainland Set To Become French

Wed, 05 Nov 2025 01:11:23 GMT

Mainland Group is set to go from "Friend in the fridge' to 'Ami dans le frigo" after final approvals of divestment.

Fonterra’s farmer shareholders have given the go-ahead for the Co-operative to sell its global Consumer and associated businesses to French multinational, Lactalis for $4.22 billion.

Massive Support From Fonterra Farmers

Farmer shareholders voted in an overwhelming majority at a virtual Special Meeting on 30 October 2025, with 88.47% of the total farmer votes cast in support of the divestment.

The threshold needed to approve the sale was for more than 50% of the votes from those entitled to vote (based on share-backed kgMS) and who actually voted in favour of the proposal.

Chairman Peter McBride says the Board and management team were encouraged by the level of engagement from farmer shareholders in the lead-up to the vote.

“We’ve been pleased to see so many farmers joining in the discussions since the start of this process in May last year when we first announced the decision to explore divestment options, and especially over the past month or so when the full details have been available,” says Mr McBride.

"It helps to demonstrate one of the key things that sets us apart from most other processors – our farmers have a direct say in the future of their Co-operative, and they’ve made the most of that opportunity."

Mr McBride says the decision to divest the Mainland Group businesses is significant and one the Board did not take lightly.

ACCC Approves Acquisition

The ACCC weighed in on the proposed sale earlier this year, ultimately deciding that the sale could go ahead unopposed by them.

“We looked very closely at the transaction as it will combine two of the largest buyers of raw milk in Victoria and lead to some further consolidation in Tasmania,” ACCC Deputy Chair Mick Keogh said.

The ACCC found that across Gippsland, the Murray and Western Victoria, alternative buyers of raw milk would continue to constrain Lactalis if the acquisition proceeded.

“We found that while the industry in Tasmania is already concentrated, Lactalis has a limited presence and the acquisition would not substantially alter the market dynamics. If the acquisition proceeded, Lactalis would continue to be constrained by Saputo and, to a lesser extent, Mondelez,” Mr Keogh said.

Lactalis to Become Australia's Largest Dairy Company

With the acquisition of Mainland Group Holdings Limited, Lactalis will become the largest dairy company in Australia - it's already the largest dairy company in the world.

The purchase includes 16 manufacturing facilities in Australia, New Zealand, Sri-Lanka, Malaysia, Indonesia and Saudi Arabia. Adding to their existing 15 manufacturing facilities and over 2,500 employees across Australia.

Mainland Group includes well-known brands Western Star, Perfect Italiano, and Mainland.

“With this acquisition, we significantly strengthen our strategy across Oceania, Southeast Asia and the Middle East. Combining the Fonterra consumer business operations and market leading brands with our existing footprint in Australia and Asia will allow Lactalis to further grow its position in key markets," said Emmanuel Besnier, Lactalis Chairman.

Fonterra expects the transaction to be completed in the first half of 2026, subject to securing certain regulatory approvals and the separation of Mainland Group business from Fonterra.

Sources: Fonterra , ACCC , Lactalis

Elders and Delta Are Officially One

Tue, 04 Nov 2025 22:08:58 GMT

ACCC Gives Elders/Delta Tick of Approval

Agribusiness's biggest agribusiness merger is officially complete, with Elders announcing on 4 November 2025, that it has acquired 100% of the shares in Delta Agribusiness Pty Ltd (Delta).

The $475 million purchase was first announced in November of 2024 and was approved by the ACCC on 9 October this year. As part of that approval, Elders is required to sell six Delta stores in Western Australia.

"Our review closely considered the likely effect of the proposed acquisition on competition in each local area where both Elders and Delta have a retail store," ACCC Deputy Chair Mick Keogh said.

"The nature of competition in the retail supply of rural merchandise is more localised than is the case in other retail sectors, partly due to the differences in farming in different local areas, and the importance of local relationships."

"Ultimately, the ACCC did not consider that the proposed acquisition was likely to substantially lessen competition in any relevant market with the undertaking provided by Elders," Mr Keogh said.

The ultimate outcome of that ACCC review was that the acquisition would only affect competition in some areas in Western Australia. Elders agreed to divest six Delta stores in Western Australia, with each sale approved by the ACCC.

Geraldton-based Independent Rural Pty Ltd were approved as the purchaser for Delta stores in Dalwallinu and Kalannie, and Victoria's E. E. Muir & Sons Pty Limited (Muirs) as the purchaser for Delta stores in Albany, Hyden, Manypeaks and Wellstead.

Business as Usual for Delta and Elders

Delta's business structure, branding and management will remain effectively independent of its new parent company. The company will continue to operate under its own brand, culture, and management structure, as part of Elder's “light touch” integration strategy.

"This transaction is the culmination of a thorough two-year process to find the right long-term shareholder for Delta Ag," said Delta Managing Director and Co-Founder Gerard Hines.

"With Elders, we have found a partner that shares our values and our commitment to supporting farming families and regional communities."

"Our staff, customers, and suppliers can be confident that it will be business as usual, with the added strength and opportunities that come from being part of a larger national group," he said.

Elders Managing Director and CEO, Mark Allison, said, “We are delighted to welcome Delta into the Elders Group."

"This acquisition strengthens our geographic footprint and enhances our technical capabilities, particularly in ag tech, precision agriculture and farm advisory services."

Elders Workforce Increase

The merger gives Elders Group a total workforce of about 3500 (based on 2023-24 payroll) and 324 retail sites. Bringing them almost up to Nutrien's 400 retail store count.

Delta Agribusiness currently has about 500 staff, including 80 agronomists, in 64 branches in NSW, Victoria, South Australia, Western Australia, plus a southern Queensland branch in Goondiwindi.

Its trading entities include Delta Ag, North West Ag Services, Agrivision Consultants, Grower Supplies and EP Ag'n'Fert.

The acquisition marks a significant milestone in Elders’ strategic growth agenda, reinforcing its commitment to delivering enhanced services and support to Australian producers.

Sources: Farm Online , ACCC , ABC , Elders

Planning Your Agribusiness’s End-of-Year Shutdown

Wed, 29 Oct 2025 00:36:04 GMT

Required Annual Leave During a Shutdown

If your business is planning a shutdown, you may be able to direct employees to take annual leave—but this depends on the award or any registered agreement that covers your staff.

In recent years, many awards have included model clauses providing greater flexibility for temporary shutdowns. Here’s what you need to know in 2025:

Provide at least 28 days’ written notice of the shutdown period to your team. Time flies in agriculture, so plan early!
Ensure employees have enough annual leave to cover the shutdown. This keeps operations smooth and your workforce happy.
Make your direction reasonable and considerate. Balance operational needs with staff welfare.

Every award and agreement is different, so it’s essential to check the rules before directing staff to take annual leave. For employees employed award-free, directions to take leave must always be reasonable.

Christmas and the end-of-year period are fast approaching, and it’s time for businesses to start planning how operations will run over the holiday season. For agribusinesses and production companies, it’s a delicate balance between keeping the business moving and respecting employee welfare.

Will your business get busier, requiring staff to work extra hours or on public holidays? Or will you close down entirely or operate with a skeleton crew?

Planning ahead ensures you stay compliant and your team stays happy.

What Makes a Shutdown “Reasonable”?

Reasonableness isn’t one-size-fits-all. Under the National Employment Standards (NES), all directives for annual leave must be reasonable, regardless of award coverage.

When deciding if a shutdown is reasonable, consider:

Business needs
Existing agreements with your team
Industry standards
Impact on employees’ personal commitments
Notice provided to staff

Reasonable planning helps avoid disputes and keeps your workforce engaged and prepared for the holiday period.

Employees Without Enough Annual Leave to Cover a Shutdown

Not all staff will have enough accrued leave for a festive shutdown, especially new hires or seasonal workers.

Here are some practical strategies to navigate this possibility:

Negotiate unpaid leave agreements
Allow staff to take leave in advance if permitted by the award
Maintain pay for essential employees who continue working
Use overtime or accrued rostered days off as compensation
Always obtain employee consent where required. Open communication is key to finding solutions that suit both staff and business.

Awards and Agreements Without Shutdown Rules

If your employees’ awards or agreements don’t include shutdown provisions, you can't force annual leave.

However, you can negotiate agreements with staff to take annual leave or unpaid leave during the festive period. Flexibility and early discussions make these arrangements far smoother.

Working Through a Shutdown or Public Holiday

Employees who continue to work during a shutdown are entitled to normal pay. If a public holiday falls during the shutdown:

Staff should be given the day off without loss of pay, or
Paid at public holiday rates if they work

Employers can request staff to work overtime or on public holidays, but requests must be reasonable. Employees can refuse if they have valid grounds. Factors to consider include:

Business needs
Employee role and responsibilities
Personal commitments (family, caring duties)
Notice given
Employment contract terms

Employees who work overtime or public holidays may also be entitled to:

Penalty rates
A substitute day off
Additional annual leave

Communication is Key

Clear, written communication avoids confusion and ensures staff understand their obligations and entitlements. To help with your communication, we've put together a template letter to advise your employees of a holiday shut down.

Plan Ahead for a Smooth Festive Season

Whether you’re closing down, operating at full capacity, or somewhere in between, early planning is essential. Check awards and agreements, confirm public holiday pay, and communicate clearly with your team.

With thoughtful planning, your business can finish the year strong, and your staff can enjoy a well-earned break.

For more questions about business operations through the festive season, check out the Fair Work Australia resources.

What You Need to Know About Changes to the Meat Award

Wed, 29 Oct 2025 00:09:52 GMT

What’s Changed

The new Schedule A introduces clearer definitions and extra guidance to help employers and employees align roles with the right classification level. It now includes more detailed descriptions of industry terms, tasks, and levels, making it easier to understand where each role fits.

Importantly, the old rule requiring a minimum of three months at Level 1 has been removed, allowing faster movement based on competency rather than time. Entry-level employees can now progress as soon as they can perform productive work without assistance, or once you certify their ability to take on higher-level tasks. In the meat processing establishment stream, workers who demonstrate the required skills can move directly to Level 3. However, a six-month cap at Level 1 remains in place to ensure no one stays at the entry level for too long.

The Fair Work Commission has handed down changes to the Meat Industry Award 2020 that will affect how you classify and progress entry-level employees. From 14 October 2025, definitions in Schedule A are clearer, and the pathway out of Level 1 is faster and is now based on demonstrated competence, not time served.

Managing Pay and Competency

With faster progression under the new Schedule A, wage increases may happen sooner than before, so employers should factor this into their budgets. Clearer definitions reduce ambiguity, but they also require stronger evidence—decisions need to align with the updated Schedule A rules.

There is a higher underpayment risk if employees demonstrate higher-level competence but are not reclassified and paid accordingly, making good record-keeping essential.

Frontline supervisors will need to be confident and consistent in assessing and certifying employee competence to ensure fairness and compliance.

What To Do Next

Source: Fair Work Ombudsman

Review your classifications

Compare current roles and duties to the updated Schedule A.
Reclassify if duties have changed or employees are clearly performing higher-level tasks.

Update your onboarding and reviews

Move competency checks earlier (for example, weeks 2–4 and week 6), rather than waiting for three months.
In processing establishments, include a pathway for direct movement to Level 3 where warranted.

Build simple competency tools

Turn Schedule A tasks into short, observable checklists for each level.
Create a clear “employer certification” template for sign-offs.

Tighten payroll workflows

Set triggers so HR/payroll action classification changes as soon as competence is demonstrated.
Keep dated evidence of assessments and certification.

Communicate the changes

Brief supervisors on the new definitions and progression rules.
Let entry-level employees know how they can progress and what evidence you’ll use.

In short, the Meat Award changes move progression from time served to demonstrated competence, with clearer definitions, no mandatory three months at Level 1, a six-month cap, and a direct path to Level 3 in processing. To stay compliant, audit classifications, update position descriptions, use evidence-based assessments, train supervisors, and set payroll triggers for immediate reclassification.

For guidance on frameworks, templates, or a compliance review, contact a Lucas Group consultant.

For the full list of changes and the updated definitions, see the Commission’s final determination .

Australia Prepares for H5 Bird Flu Possibility

Wed, 22 Oct 2025 04:31:45 GMT

What's the Difference Between H7 and H5?

It's back to the future as the very 2005 threat of H5 bird flu hits Australia, two decades after the first epidemic.

Last year saw widespread chaos in both the agricultural industry and supermarket aisles as the H7N3 strain of bird flu forced seven eastern Australian poultry farms into quarantine.

Since February this year, there have been no new notifications of the disease, with the federal government declaring the H7 strain officially eradicated in June. But with the H5N1 strain spreading rapidly across the globe again, preparedness is ramping up from the farm gate to the halls of Parliament House.

Currently, Australia is the only continent free of H5 bird flu.

Not all bird flus are created equal. H7 is the lesser of the two - still destructive, but more easily controlled and less likely to transmit to humans.

Overseas outbreaks show that H5 bird flu would have significant impacts on our wildlife and the agriculture industry, especially poultry, and communities if it reaches Australia.

In 2022, H5N1 mutated and spread quickly across the globe. It infected hundreds of thousands of wild birds, as well as dairy herds in the United States and sheep in the United Kingdom.

The risk of H5N1 arriving in Australia is now elevated with the spring migration bringing millions of wild birds to our shores.

Michelle Wille from the WHO Collaborating Centre for Reference and Research on Influenza at the Doherty Institute, which tracks migratory birds, warned that the virus was only one mutation away from pandemic potential.

"This H5 virus has proven difficult to control. H7 tends to stick to chickens like glue and we can cull all the chickens and stop the outbreak in its tracks," Dr Wille said.

"But this H5 virus is circulating in everything, not just chickens, but also wild birds, and also dairy cattle, and also marine mammals.

"So our traditional approaches of control are failing quite miserably.

"This H5N1 arriving to Australia is going to happen. I can't tell you when, and I can't tell you by which route, but I think it's almost certainly going to happen."

By Failing to Prepare, You're Preparing to Fail

Australia is heeding those words from United States Founding Father, Benjamin Franklin, and ramped up the bird flu preparedness activities.

In recognition of the H5 bird flu threat, the Australian Government is investing more than $100 million into enhancing national preparedness and response capability. The funding is set to strengthen surveillance, preparedness, response capabilities and mitigate the impacts of a potential H5 bird flu outbreak on Australian agriculture, environment and human health.

A sum of $22.1 million of this additional funding is allocated to manufacturing and storing pandemic vaccines for both humans and native animal species.

Individual farmers are also investing on the ground to protect their chickens as best they can. Victorian poultry farmer Brad McAuliffe has implemented a range of biosecurity measures from protective clothing to anti-bacterial vehicle sprays.

Mr McAuliffe has also installed new technology to monitor chicken health by controlling temperatures and monitoring how much food and water they consume.

"We check this four times a day. The key thing about this if we see any slight drop in feed consumption, water consumption, egg production, we look at mortality and we investigate," Mr McAuliffe said.

Sources: ABC , Department of Agriculture, Fisheries and Forestry , Australian Government Outbreak

Australian Steaks A Cut Above The Rest

Wed, 22 Oct 2025 01:51:36 GMT

Titans of International Steaks Among Judges

More than 500 steaks were cooked on grills supplied by Synergy Grill and judged blind by a carefully selected judging panel of more than 60 experts.

Judges included Richie Wilson, culinary director of FIRE Steakhouse & Bar; Ioannis Grammenos, executive chef and Meatologist of Heliot Steak House in London; Katie Doherty, CEO at the International Meat Trade Association; butcher and food writer Jessica Wragg; executive chef Luciana Berry, Fred Smith, head of beef at Flat Iron; and foodie Dimas Ramadhan.

The medallists for the 2025 World Steak Challenge have been announced, and Australia has topped the gold medal tally.

The event, held in Amsterdam in September, awarded a total of 304 medals, including 112 gold medals, recognising the best quality meat across the globe.

Gold Medals For The Aussies (and Irish)

Australia once again took home the most gold medals, with 25 steaks from the country awarded the accolade, the most awarded to any country.

We were closely followed by Ireland, with 24 steaks awarded a gold medal. Overall, Ireland had the greatest medal haul with 68 steaks awarded either a gold, silver or bronze award, ahead of Australia with 40 medals and Argentina with 29 medals.

Gold medallists in the eye fillet division included Thomas Foods International (TFI), Pardoo Wagyu and Hancock Agriculture’s 2GR brands. Jack’s Creek, Pardoo Wagyu and TFI all took gold in the sirloin division. The ribeye division paid dividends for Stanbroke, JBS Australia (Aberdeen Black), 2GR, Jack’s Creek and Pardoo.

Australian Steaks Sweep New Wagyu Division

For the first time in World Steak Challenge history, a dedicated Wagyu division was judged. Gold medal results in the Wagyu category were dominated by Australia, accounting for 14 of the golds awarded to Aussies.

Wagyu entries from Japan were awarded 6 gold medals in the category.

The Australian Wagyu gold medallists included Jack’s Creek, Stone Axe Pastoral, Hancock Agriculture’s 2GR, Stockyard and Pardoo Wagyu.

Reaching For The 2025 World's Best Steak

The reveal of 2025’s World’s Best Steak, as well as category and continent winners, is yet to be announced. The ultimate winners in each category will be decided from among the gold medalists at a dinner being held at London’s Smith & Wollensky restaurant on 10 November.

Since 2014, Australia has won 4 World's Best Steak accolades - we're sure we're all hoping for a 5th title.

The World Steak Challenge is an annual event that gives steak producers and suppliers a much-needed platform to showcase product quality, breed credentials and processing standards on an international stage. It is organised by William Reed the publisher of Restaurant as well as the World’s 50 Best Restaurant and a number of other leading business food and drink publications.

Sources: World Steak Challenge , Beef Central

QLD Ag Investment Squeezed by Tax & Talent Shortages

Wed, 17 Sep 2025 03:59:46 GMT

Queensland may boast Australia’s largest area of farmland, the biggest beef herd and the third-highest agricultural output, but two big headwinds are cooling investor appetite: higher land taxes for foreign-owned farmland and ongoing labour shortages.

Industry investors say the combination is pushing capital south, with Victoria, South Australia and New South Wales increasingly seen as lower-risk, better-value alternatives.

Why the Tax Settings Matter

Queensland is currently the most heavily taxed jurisdiction for foreign-owned farmland. A 2 per cent land tax surcharge applies to unimproved land owned (or majority-owned) by foreign investors, on top of the 2.75 per cent base land tax. In contrast, other states provide land tax exemptions for primary production.

After a decade of land value growth, those annual tax bills are biting harder. On a $100 million landholding, annual land taxes can land around $1.5 million — roughly equivalent to the property’s likely cash yield. That arithmetic is tough to ignore.

Institutional managers, like Queensland-based agricultural investment fund boss Tim McGavin, report that potential cropping deals in Queensland have been shelved once the 4.75 per cent combined tax impost is factored in.

“We’ve seen several investors shift focus to other states such as Victoria and South Australia, where the tax burden is lower and more predictable,” he said.

With after‑tax yields lagging, capital is being reallocated to jurisdictions where the tax burden is lower and more predictable.

Capital Is Moving

Agricultural investors are now tilting new money towards other states, New Zealand and select overseas markets.

“Foreign buyers don’t really care what side of the border they buy, but the numbers must stack up,” said Bentleys QLD’s Managing Partner, Ben Cameron.

If the difference is a couple of hundred kilometres and millions of dollars, it’s a pretty clear decision.

As Mr McGavin notes, If the after-tax yield in Queensland is more than 50 basis points lower than in Victoria or NSW, we allocate elsewhere.”

Ultimately, while Queensland isn’t off the table altogether, it’s facing a higher bar, meaning fewer local projects win backing.

The Labour Pinch That’s Hard to Ignore

Beyond tax woes, labour remains the risk keeping producers and investors alike up at night. Operators across Australia are reporting persistent challenges in attracting and retaining skilled staff.

The consequences are real:

Expansion plans are on ice because crews are already stretched
Some operators have hit pause on buying more land
Productivity and safety pressures rise when teams run lean

As Ben Cameron put it, “you can’t expect AI to muster cattle.” For many businesses, labour availability is now the gating factor for growth.

Succession, Scale and the Need for External Capital

With the average Australian farmer nearing 60, a significant number of properties will change hands over the next decade. Tim McGavin believes that transition will require fresh equity to support succession, invest in productivity, and aggregate sub‑scale farms that can’t deliver the efficiencies modern agriculture demands.

“Less external capital means less opportunity, less productivity and less jobs,” he said.

When external capital hesitates, regional communities miss out on investments in technology, infrastructure and jobs.

Policy Shifts Also Cooling Foreign Appetite

It’s not just Queensland’s land tax at play. Several national settings have tightened:

Since 2020, tax on operating returns for new overseas pension/superannuation fund purchases has risen from 15 per cent to 30 per cent
Capital gains tax for these investors has lifted to 20 per cent
Lower legacy rates on earlier acquisitions will rise after 30 June 2026

Analysts suggest some offshore funds have been reshaping portfolios ahead of those changes.

“It’s quite likely that we’ve been seeing pension funds using the window leading up to 2026 to offload some assets while they still qualify for the tax discounts,” said agribusiness investment executive David Goodfellow.

“I think there’s been a bit of… restructuring happening, particularly if some properties were acquired 10 years ago and have served their fund owners’ initial purpose.”

Add to that a slower pace of Chinese investment compared to the mid‑2010s, and the market’s mix of buyers is shifting.

Despite these headwinds, sentiment towards Australian agriculture remains positive. Strong seasonal conditions have supported values in Queensland and northern NSW, but that’s also nudged some buyers to look for better value in southern regions this financial year.

Crucially, long‑term investors don’t just hold farmland. They develop it. Lifting productivity and regional capacity along the way.

If you’re feeling the staffing squeeze, talk to The Lucas Group. Let’s make your next hire, and your next phase of growth, a success.

Sources: Farm Online
Image: Agrishots

Big Changes are Happening at The Lucas Group

Tue, 16 Sep 2025 04:06:10 GMT

We’re launching a new way to get agribusiness jobs in front of the right people.

Over the years, we’ve heard the same story: the agricultural workforce in Australia is shrinking , and attracting and keeping talent is harder than ever . Finding the right people can be a tough slog, which is why we’ve spent more than 30 years delivering tailored search and recruitment services. We also know, though, that not every role justifies the investment of a full-service recruitment project.

We’ve been listening, and ch-ch-ch-changing… which is why we’re excited to introduce a new service offering: Targeted Talent Reach Advertising .

At a fraction of the cost of a full-service recruitment project, our Targeted Talent Reach Advertising is designed to get your open position in front of the right people and get them applying!

Your role will be promoted through our channels using a professionally written advertisement, tailored to increase potential applicant numbers. We will run a 30-day digital campaign with the ability to reach active candidates, as well as passive candidates who could be open to the right opportunity.

Our digital campaign platforms include SEEK, LinkedIn, Facebook, and our very own job board and newsletter.

Through these channels, we reach over 300,000 active members of the agri-workforce. In fact, our SEEK job ads alone consistently receive 45% more applications than the industry norm. (That’s the copywriting coming to play!)

Normally, this forms the attraction phase of our full recruitment projects. With Targeted Talent Reach Advertising , we’ll filter out unsuitable applicants and provide you with all the unedited applications, giving you a bigger pool of relevant candidates without the extra work.

It’s a huge step up from running your own ads on SEEK and hoping for the best.

Why the change? We want to help build agriculture up in Australia across all levels. Not every role requires a full retained search, but every agribusiness benefits from increased brand and position visibility. Targeted Talent Reach Advertising allows us to do exactly that, expanding your candidate pool and putting opportunities in front of the widest and most relevant audience possible

Of course, if advertising alone doesn’t cut the mustard, you can transition to a Retained Recruitment project, with the cost of your advertising credited towards the fee. There’s no downside!

The whole team at The Lucas Group is excited to be expanding our services in a way that helps give Australian agribusinesses more choice, while still keeping premium quality at the centre of everything we do.

If you’d like to learn more about Targeted Talent Reach Advertising, you can check out our overview here . Or, to chat about a current vacancy, get in touch with our team on (08) 8201 9999 . We can’t wait to help.

Image: Agrishots

Culture is For Workplaces, Not Just Yoghurt

Mon, 15 Sep 2025 04:11:14 GMT

“The important thing is to get the right players on the team”

Chuck Daly famously said that, and he’d probably know… he coached the 1992 Dream Team.

Look anywhere, and you’ll see respected leaders emphasising teamwork. So it shouldn’t be a surprise that hiring someone with the right skills is only half the job.

The real win? Bringing in team members who help to strengthen your culture, safety, and team dynamics.

Culture Starts With Who You Hire

Recruitment isn’t just about ticking skill boxes. Bringing someone on board who aligns with your values, team dynamics, and safety standards sets the foundation for a cohesive, high-performing team.

Bringing someone into your agribusiness who fits the culture isn’t just “nice to have”; it has long-term benefits. Employees who gel with your values and existing team:

Integrate more quickly
Are safer and more engaged
Stay longer with your business
Contribute positively to team morale

Skills can be taught, but cultural alignment and mindset need to be assessed from the start.

Reinforcing Culture

When we’re hiring internally or working on a client project, we identify candidates who match skills requirements and cultural expectations. Our approach helps everyone feel sure that your new team knows that they’re in this together, and that it shows.

Of course, once you’ve got your best potential on the team, the first few days are critical for setting expectations around safety, team behaviour, and communication. Making sure everyone is on the same page helps reduce risks and attrition.

Using a tool like PIPA’s All-in-one Workforce Management Software to help bolster your onboarding, competency checks, and inductions makes it easier for new hires to understand what matters most.

5-Point Workplace Culture Guide

Hire for Values, Not Just Skills.
Set Expectations Early
Embed Safety in Everything You Do
Foster Collaboration and Communication
Recognise and Reinforce Positive Behaviour

Strong workplace culture doesn’t happen by accident. You need to plan for it, hire the right people, and support your team to grow.

The result? Teams that are safer, more engaged, and more cohesive from the very start.

Want guidance on identifying the cultural fit your team needs? We’d love to help. Reach out via the form below or call us on (08) 8201 9999 .

Related Articles: The Changing Face of Agriculture’s Workforce
Image: Agrishots

Australian Olive Success Is Oil We Need

Tue, 26 Aug 2025 04:17:07 GMT

Australia’s olive growers have once again shown remarkable resilience and expertise, producing a high-quality harvest in 2025 despite challenging drought conditions.

According to the Australian Olive Association (AOA), farmers and millers across the country are celebrating both satisfying yields and exceptional olive oil quality this season.

Record-Breaking Results

Early reports suggest the 2025 harvest may surpass last year’s production. In 2024, Australia produced 13,200 metric tons of olive oil, and this year’s volumes are already looking higher.

Michael Southan, Chief Executive of the AOA, confirmed, “The turnout that producers are seeing is what we expected, not only in terms of volumes – the quality is excellent. From what I’ve heard, those who have been tasting the olive oils so far say they are of optimal quality.”

Australia’s largest olive oil producer, Cobram Estates, processed more than 80,000 tons of olives, yielding an impressive 14.2 million litres of olive oil—a significant rebound from last year’s “off-year” season.

Navigating Drought Conditions

Drought-affected regions differed across the country. South Australia experienced one of its worst droughts in years, leaving some growers without access to irrigation and unable to harvest a crop. Meanwhile, New South Wales and Victoria faced milder conditions, allowing for satisfying yields.

“South Australia was in drought, one of the worst droughts they’ve experienced. Those who did not have access to irrigation in the region most of the time did not get a crop,” Southan noted.

“For the eastern states of the country, such as NSW and Victoria, the season unfolded differently. There it was still dry, but to a lesser extent, and the yields were satisfying.”

Across other states, manageable rainfall patterns over 2024/25 were helping out Australia’s olive growers.

Adapting to Climate Change

Extreme weather events are increasingly challenging Australian olive growers.

Peter and Caroline O’Cleary of Homeleigh Grove near Canberra faced a severe hailstorm that damaged fruit and table olives. “Olive oil quality was generally good, but milder than usual,” they reported, highlighting that their yield was up around 25 per cent on past years.

The CSIRO’s latest climate report warns of hotter summers, longer fire seasons, and intense rainfall, emphasising the need for adaptive farming practices.

The average level of Australian olive oil quality has been rising, as growers respond to these changes with better irrigation, effective pruning, and other strategies.

“Some of the trees, particularly those that have been well managed and pruned the year before, performed very well,” Southan said, reflecting the rising standard of Australian olive oil.

Tasmanian Triumph

Tasmania’s Lauriston Grove, a premium olive oil producer established three decades ago, reported record-breaking results in 2025.

Owner Marco Linardi shared, “The 2025 harvest was completed at the end of May, and it is a record-breaking harvest in terms of yield and volume of extra virgin olive oil.”

“The quality is again very high, with some amazing extra virgin olive oil,” he added.

This year’s olive harvest was a huge success, thanks to the hard work and dedication of our growers. Celebrating this achievement is a reminder of the importance of agriculture to Australia’s economy and how innovative and strong our community is.

Source : Olive Oil Times

Rental Crunch Hits Agribusiness Workforces

Tue, 26 Aug 2025 04:13:59 GMT

Australia’s agriculture sector is facing a new challenge: a tightening rental market. National rental vacancy rates fell to a record low of 1.2% in July, according to SQM Research, leaving farmers struggling to secure suitable housing for their workers. This scarcity is reshaping how agribusinesses manage staffing, accommodation, and the overall cost of doing business.

The Regional Rental Squeeze

While some regional areas (75–100km from capital city CBDs) have seen rental inflation moderate slightly since 2023, the easing has been slower than in urban centres. Regions more than 500km from the CBD have enjoyed relatively stable rents—but that stability often comes at a cost.

Since 2018, rent growth in many regional areas has outpaced capital cities.

Queensland illustrates the problem clearly: Charters Towers has the state’s third-lowest rental availability at just 0.3%, the Burdekin sits at 0.5%, and Townsville at 0.9%. For farmers, these tight conditions make finding accommodation for staff a daily struggle.

The Real Estate Institute of Queensland’s June Quarter 2025 Residential Vacancy Rate Report highlights the scale of the problem. Across Queensland, only four LGAs—Townsville, Rockhampton, Cassowary Coast, and Maranoa—saw tighter vacancy rates during the March quarter. Fifteen LGAs saw no change, while 31 regions experienced slight easing.

Despite these minor shifts, the statewide vacancy rate rose only slightly from 0.9% to 1.0%. Alarmingly, no region currently falls within the REIQ’s “healthy” vacancy range of 2.6–3.5%.

The widening rental gap between urban and regional Australia is creating real stress for communities outside major cities. Families and workers face rising costs and limited options, creating housing insecurity that particularly affects agricultural regions.

For farmers, the challenge is twofold: attracting and retaining staff in a tight labour market is already difficult, and the lack of available housing only intensifies the problem. Many are forced to offer accommodation subsidies or build on-site housing to maintain a viable workforce.

Addressing the regional rental crisis ultimately requires collaboration from policymakers, industry, and communities. However, there are some strategies that agribusinesses can employ to help mitigate the impact of the rental crunch on their operations.

Supporting staff to secure affordable housing through coordinators or agents.
Helping workers find affordable housing via local partnerships.
Assisting staff with housing through coordinators or real estate connections.

As Australia’s rental market evolves, the needs of regional communities need to be considered. Tackling the rental gap and ensuring access to safe, affordable housing is essential for supporting regional livelihoods and keeping the nation’s agricultural sector strong.

Sources: Farm Online , ABS , Townsville Bulletin

What Small Agribusinesses Need to Know About the Right to Disconnect

Wed, 13 Aug 2025 04:19:43 GMT

Calling all small agribusiness owners and managers! It’s time to gear up for the upcoming changes to the right to disconnect and casual employment laws, which will come into effect on August 26, 2025. These changes, introduced by the Fairwork Ombudsman, are designed to promote a better work-life balance for your employees and provide more stability for your casual workers.

Right to Disconnect

The right to disconnect empowers your employees to say no to work-related communications outside of their designated working hours, unless their refusal is deemed unreasonable. This includes contact from you, colleagues, or any third party related to work.

To stay ahead of the game and ensure compliance with the new regulations, here’s what you need to do:

Get to know the factors that determine whether an employee’s refusal to engage in out-of-hours communication is reasonable or unreasonable
Clearly communicate the right to disconnect policy to all your employees
Provide training and resources to help your managers and employees understand and implement the policy effectively
Establish a process for addressing any concerns or disputes related to the right to disconnect

Prepare for Casual Employment Changes

Starting from August 26, 2025, your eligible casual employees will have the right to issue a written notice requesting a change in their employment status to full-time or part-time under the employee choice pathway.

To be ready for this change, take these steps:

Understand the rules and procedures for employees and employers when making or receiving a notice for a change in employment status
Access free templates and resources provided by the Fairwork Ombudsman to help navigate the process
Communicate the changes to your casual employees and provide them with the necessary information and support

By taking a proactive approach and staying informed about these changes, you can create a supportive and compliant work environment that benefits both you and your employees. Don’t wait until the last minute – start preparing now!

Remember, embracing these changes not only ensures compliance but also demonstrates your commitment to the well-being and satisfaction of your employees. So, get ready to make a positive change in your small agribusiness!

Source : FairWork Ombusdman

The Lucas Group and People in Paddocks Partner to Strengthen Our Ag Workforce

Thu, 24 Jul 2025 08:01:02 GMT

Leading agribusiness service providers, The Lucas Group and People in Paddocks , have announced a strategic partnership to improve recruitment, onboarding, and workforce safety outcomes across the agricultural sector.

The collaboration brings together The Lucas Group’s expertise in agribusiness recruitment with People in Paddocks’ workplace platform, PIPA – trusted by farm teams nationwide to build safer, smarter, and more productive operations.

With 98% worker uptake, PIPA, empowers every worker – regardless of literacy, language or experience – to engage in safer, smarter, and more productive work.

Replacing outdated systems and invisible risks, PIPA delivers real-time visibility, accountability, and inclusion. It’s not another form or folder—it’s a behaviourally driven system that nudges workers to rest, report hazards, follow safety steps, and show up ready.

“This partnership is all about adding value,” said Tom Lucas, Managing Director at The Lucas Group. “We’re excited to help our clients access practical tools that help onboard and retain staff, while also helping the broader industry discover the benefits of strategic recruitment.”

“We’re both passionate about building strong, safe ag businesses,” said Samantha Pritchard, Founder of People in Paddocks. “PIPA puts safety and leadership into the hands of every worker – and this partnership helps more businesses access that.”

People in Paddocks and The Lucas Group aim to benefit the Australian agricultural community by:

Making quality workforce tools and advice more accessible to farms of all sizes
Bridging the gap between hiring and retention to reduce turnover
Equipping employers with practical tools to build safer, more resilient teams
Sharing real-world insights to help job seekers and business owners thrive

This partnership reflects a shared commitment to building people-first, culture-led agribusinesses, putting better workforce outcomes in the hands of those who live them every day – farmers, workers, and the teams that support them.

For more information, visit lucasgroup.com.au or peopleinpaddocks.com.au .

Fair Work Steps Up Pressure on Horticulture Sector

Tue, 01 Jul 2025 19:54:07 GMT

The Fair Work Ombudsman (FWO) has launched a fresh wave of inspections across the horticulture sector following damning findings from a three-year national compliance strategy. The new campaign zeroes in on labour hire providers and will focus first on businesses in the Riverina region of New South Wales.

The FWO’s Horticulture Strategy 2021–2024, which involved surprise audits of over 500 employers, has uncovered persistently high rates of non-compliance with workplace laws, especially among labour hire firms. In some regions, more than 80% of employers failed to meet their obligations under the Fair Work Act.

Five Hotspots Identified for Reinspection

The regulator will now revisit five of the worst-performing regions:

Mornington Peninsula & Yarra Valley (VIC): 83% non-compliance
Riverina (NSW): 72%
Sunraysia (VIC): 70%
Shepparton (VIC): 63%
Coffs Harbour & Grafton (NSW): 61%

Other hotspot regions included: South Australia’s Adelaide and Adelaide Hills; Queensland’s Whitsunday Coast, Lockyer Valley, Sunshine Coast, Stanthorpe, Wide Bay, and Moreton Bay; South-West WA; and North/North-West Tasmania.

Each of these regions recorded significantly higher breach rates among labour hire providers compared to growers who directly employ their workers. Of the $760,405 in fines issued nationally for record-keeping and payslip breaches, a staggering 91% were directed at labour hire firms. Only 15 fines were issued to growers that employed workers directly.

Weak Links in Compliance & Record-Keeping

Inspectors found labour hire providers were four times more likely to breach workplace laws than growers. Common issues included:

Poor or absent record-keeping
Cash-in-hand payments
Lack of transparency on who the actual employer was
Use of informal ‘supervisors’ acting as intermediaries

Failures in record-keeping and providing workers with non-compliant or no pay slips were the most common breaches by employers across the national campaign.

These failures resulted in the FWO recovering $384,168 in wages for 464 underpaid workers after issuing 95 Compliance Notices: 55 to labour hire providers and 40 to growers.

Fair Work Ombudsman Anna Booth said the findings underscore the ongoing need for accountability in supply chains.

“Our inspectors will return to these five troublespot regions with a focus on labour hire providers, who made up 80% of non-compliant employers in these locations,” she said.

“We will also continue and increase our successful collaboration with other Australian Government and state regulators to ensure a comprehensive approach to holding to account employers doing the wrong thing.”

Queensland’s Leading Example

Employers assessed in Queensland’s Wide Bay and Moreton Bay regions were the nation’s most compliant, with only 18 per cent and 8 per cent, respectively, having not met obligations. These outcomes were linked to a greater proportion of direct employment, proactive education efforts, and the impact of programs like Fair Farms.

Why This Matters for Agribusiness Employers

With the horticulture sector employing a high number of seasonal, migrant, and visa workers, especially during peak harvest periods, reputational and regulatory risks are significant. The findings serve as a timely reminder for agribusiness operators to:

Review labour hire contracts and oversight practices
Ensure robust record-keeping and payslip systems
Engage only licensed and reputable labour hire providers
Take advantage of Fair Work’s free educational resources

The FWO’s renewed campaign will unfold over the next two years, backed by partnerships with the Australian Border Force, ATO, and state-based labour hire regulators.

Enforcement in Action

One high-profile enforcement outcome included an Enforceable Undertaking signed by Victorian grower R J Cornish & Co Pty Ltd in early 2025, after nearly $127,000 in unlawful deductions were made from 112 workers’ wages.

As the FWO continues to pursue one remaining open investigation with possible high-level enforcement action, the message to industry is clear: non-compliance has consequences, and enforcement will continue to intensify.

Sources: Fair Work Ombudsman , FWO Horticulture Compliance Report

Wage Increases & Superannuation for FY25/26

Tue, 01 Jul 2025 19:48:25 GMT

It’s July 1, which means changes for employers Australia-wide. Increases to wages, superannuation, and entitlements are all incoming for the 25/26 financial year.

Here’s a quick breakdown of what’s changing for employers, and some hints on how to ensure you’re compliant.

Award and Minimum Wage Increase

Eligible employees are set to get a 3.5 per cent wage increase from the first full pay period starting on or after today, 1 July 2025.

The new National Minimum Wage (from today) for a full-time employee is $948 per week, or $24.95 per hour. The minimum wage for casual employees must include a 25 per cent casual loading, leaving them with at least $31.19 per hour.

This 3.5 per cent increase also applies to minimum rates within awards.

Allowances and minimum rates have increased throughout the Pastoral and Horticultural Awards. Make sure you’re familiar with these changes by checking the awards here:

Superannuation Changes

From 1 July 2025, the superannuation (super) guarantee increases to 12%.

The maximum super contribution base also increases to $260,280 or $65,070 per quarter, meaning employers don’t have to provide superannuation for earnings above this amount.

Increases to Income Thresholds and the Compensation Cap

From 1 July 2025, the:

high income threshold will increase to $183,100
contractor high income threshold will increase to $183,100
compensation cap will increase to $91,550.

Paid Parental Leave Increase

The amount of parental leave pay available to families will increase to 120 days (24 weeks) for children born or adopted from July 1, 2025. This leave is paid in line with the National Minimum Wage and is separate to any employer funded paid parental leave.

The Australian Taxation Office (ATO) will also begin making superannuation contributions of 12% on Parental Leave Pay for a child born or adopted after 1 July 2025. These contributions will be paid from July 2026 onwards.

Sources : Fair Work

Aussie Lamb Demand Surges With Record Prices Expected to Continue Through Winter

Thu, 19 Jun 2025 19:57:12 GMT

Prices for slaughter lamb and mutton are expected to remain strong through winter, with Australia exporting a record-breaking 36,754 tonnes in May. Meat and Livestock Australia (MLA) reports that the national price indicators for heavy lambs, trade lambs, and light lambs are all at record highs, with recent numbers showing that sheep and lamb prices are up an average of 316.5c from 2024’s prices.

Record-Breaking Prices at Saleyards Across Australia

Saleyards across Australia have been setting new records for lamb prices:

At Bendigo, 30 kg-plus lambs sold for a new centre record of $426.
Dubbo agents set a new centre record of $386 for extra heavy lambs.
Deniliquin saleyards set a new all-time high of $311 for extra heavy crossbreds.
At Wagga Wagga, a pen of 131 cross-bred lambs sold for $424 per head.
In South Australia, extra heavy Merino lambs set a new saleyards record price of $390 at the Dublin Livestock Exchange.
At Griffith, heavy lambs reached up to $431 per head, setting a new national record (at the time).

Veteran agents continue to be stunned by the growth.

“We haven’t seen anything like it, the lamb market is as dear as it has ever been,” noted Peter Cabot, a Wagga-based livestock agent.

“And it’s not just those extra heavy lambs making over $400, it’s any lambs that are fat and presented well that are selling extremely well.”

Overseas Demand Driving Lamb Prices

The continued rise of lamb prices, bucking the usual drought trend, can be attributed to strong overseas demand.

“The demand is there and the supply can’t fulfil it,” Forbes-based agent Jack Rix told ABC Landlin.

“The dry weather down south in Victoria, South Australia, and southern NSW has forced a lot of people to sell, and because the processing market has been strong, there’s not a lot left.”

In 2024, Australia exported a record amount of lamb, almost 360,000 tonnes. MLA expects this year to return an even higher number, currently tracking for a 2% increase.

The United States remains the biggest customer for Aussie lamb, followed by China.

Mr. Cabot is one of many who expect lamb prices to remain strong through winter.

“I just can’t see how it can come back too much at this stage,” he said.

“There’s just so little supply and obviously with all these abattoirs going flat out, I think it’s going to be a very positive time for anyone that is producing sheep and lambs.”

Sources: ABC , Sheep Central

Full-Service Recruitment is the Key to Success in Ag Hiring

Mon, 16 Jun 2025 20:25:16 GMT

In today’s competitive agricultural landscape, finding the right talent is more critical than ever. Full-service recruitment is emerging as the solution to the unique challenges faced by agribusinesses in Australia. In this post, we’ll explore why full-service recruitment is the future of ag hiring and how it can help your organisation thrive.

The Challenges of Ag Hiring

The agriculture industry is a specialised field with unique hiring needs. Some of the challenges faced by agribusinesses include:

Finding candidates with the right mix of skills and experience
Attracting top talent to regional and rural areas
Navigating the complex landscape of ag regulations and policies

These challenges can make it difficult for agribusinesses to find the right people to drive their success.

The Advantages of Full-Service Recruitment

Full-service recruitment agencies like The Lucas Group offer a comprehensive solution to the challenges of ag hiring. Here are some of the key advantages:

Industry Expertise

Full-service recruitment agencies have deep knowledge of the agriculture industry. They understand the unique needs of agribusinesses and know how to find candidates with the right skills and experience.

Targeted Talent Sourcing

With access to a wide network of candidates and advanced sourcing techniques, full-service recruitment agencies can identify top talent that may not be actively seeking new opportunities.

Thorough Candidate Vetting

Full-service recruitment agencies conduct rigorous screening and interviewing processes to ensure that candidates are a good fit for the role and the organisation’s culture.

Ongoing Support and Guidance

Full-service recruitment agencies provide ongoing support to both the employer and the new hire, ensuring a smooth transition and long-term success.

Partnering for Prosperity

At The Lucas Group, we’re passionate about partnering with agribusinesses to drive their success. With our full-service recruitment approach and deep industry expertise, we’re helping to shape the future of agriculture in Australia.

By partnering with a full-service recruitment agency like The Lucas Group, you can focus on what you do best – growing your business and driving innovation in the ag industry. Leave the hiring to us, and we’ll deliver the talented professionals you need to take your organisation to the next level.

The Future of Ag Hiring

As the agriculture industry continues to evolve, so too must the way we approach hiring. Full-service recruitment is the key to finding the right people to drive success in this dynamic and challenging field.

At The Lucas Group, we’re committed to being at the forefront of ag recruitment in Australia. We’re excited to partner with you to help your agribusiness thrive.

Why AI-Generated Job Ads Don’t Attract Top-Tier Candidates

Tue, 27 May 2025 20:30:00 GMT

AI. It’s the buzzword on everyone’s lips. From Google prioritising AI search results to smart toilets powered by AI (yes, really), it seems Skynet is already inescapable.

More and more businesses are turning to AI to generate job advertisements. But is it the super-tool it’s being pitched as? And can it really replace the human element in the art of attracting top-tier candidates?

The Pros of Using AI to Write Job Ads

The benefits are easy to see. AI significantly speeds up the creation process and can help produce copy that’s clear, concise, and professional.

Speedy Gonzales

AI can whip up a draft in minutes, saving your team time and effort. It’s a great starting point, letting you focus on refining the message rather than building it from scratch.

Shakespeare, is that you?

Let’s face it, not everyone has the gift of the gab, especially when it comes to writing. AI can help structure your messaging and clearly communicate a role’s responsibilities and expectations in professional-sounding language.

But here’s the catch: while AI-generated ads may be fast and functional, they often miss the mark when it comes to truly engaging high-calibre candidates.

The Cons of Using AI to Write Job Ads

While AI can streamline the writing process, it can also work against your recruitment efforts. Job ads are, first and foremost, a call-to-action. They’re there to attract applicants, prompt a response, and represent your company’s brand. These nuances can be particularly difficult for large language models to convey.

Generic, Plain Jane Content

AI-generated ads often come out bland and cookie-cutter, lacking in personality. Instead of showcasing your unique company culture and values, they read like any other job ad on Seek. Top candidates want to know who you are, not just what you want.

Nevermind the Buzzwords

AI tools tend to lean heavily on jargon and keywords. The result? Copy that sounds robotic and uninspired. Great candidates aren’t attracted to fluff, they’re drawn to clarity, meaning, and authenticity.

Perks? What Perks?

Strong job ads sell the opportunity, not just the role. They highlight professional development, flexibility, team culture, and values. The things that matter most to top-tier talent. AI often misses these selling points, focusing instead on responsibilities and requirements.

Language That Repels

Even small word choices can shape how a job ad is received by candidates. AI might throw in phrases like “high-performing” or “committed” that unintentionally signal long hours or a high-stress environment. These red flags can discourage the very candidates you’re trying to attract.

The Uncanny Valley Effect

AI-generated content can spark a sense of discomfort and a negative emotional response, a phenomenon known as the uncanny valley. Which could hurt your application rates. In addition to this, candidates are getting better at spotting AI-written text, which can create a perception that your business lacks authenticity or a human touch.

Why the Human Touch Matters

At the end of the day, a job ad isn’t just an announcement, it’s a first impression. It’s your pitch to a potential team member, and it needs to reflect not only the requirements of the role but your organisation’s character, values, and purpose.

AI can help you get started, but to truly connect with top-tier talent, you need human insight. A professional copywriter or recruiter can craft job descriptions that speak directly to the aspirations of your ideal candidate and get them to hit that apply button.

Ultimately, AI can be a helpful tool, but it’s not a replacement for authentic, strategic communication. The best candidates don’t just want a job. They want a reason to care.

Learn More About Crafting Job Advertisments:

Job Advertising vs Job Description – What’s the Difference?
5 Ways to Improve Your Job Ads

South Australian Government Unveils $3 Million Support for Dairy Farmers

Thu, 01 May 2025 20:33:07 GMT

The South Australian government has announced a $3 million support scheme for dairy farmers affected by the Beston Global Food collapse. This move aims to bolster the state’s dairy industry.

Beston’s liquidation late last year left farmers holding a $11.6 million bill for already supplied milk to the processor.

Until its collapse, Beston Global Food Company Limited and Beston Pure Dairies purchased about 20% of all South Australian milk supplies.

The SA Dairyfarmers’ Association (SADA) will administer the program with support from the South Australian Government Financing Authority (SAFA). Grants will be available to dairy farmers listed as creditors in the Beston liquidation process, to help re-establish and grow their businesses. Funds can be used for farm modifications, invoice or account payments, or to reduce working capital debt facilities.

Treasurer Stephen Mullighan emphasised the government’s commitment to the industry’s prosperity. “We’re helping South Australian farmers get back on their feet,” he stated.

SADA President Robert Brokenshire described the situation as a “double whammy” for farmers.

Noting that the state “couldn’t afford to lose any more dairy farmers”.

South East dairy farmer John Hunt, who is owed $700,000 by Beston, welcomed the initiative.

“It’s a real great feeling for farmers,” he said. “We’ve been affected by higher costs and the dry conditions… so to get this is real relief.”

Clare Scriven, Minister for Primary Industries, highlighted the importance of the dairy industry. She noted that the South Australian diary industry is valued for its “significant economic contribution as well as its premium products, which are supplied around Australia and the world”.

The support scheme is seen as crucial for maintaining South Australia’s billion-dollar dairy industry. Brokenshire stressed the high risk to the industry if affected farmers couldn’t survive.

“It’s a package now that will help those 43 milk suppliers remain sustainable, pay off some debt, pay some creditors, and importantly, help us keep the billion dollar SA dairy industry going,” Mr Brokenshire said.

“Every farmer is doing it tough at the moment, but the exception here was that these farmers are dealing with drought, high input costs, interest rates that are still high, and on top of that, hundreds of thousands of dollars in many of those cases that were not paid after milk was provided to Bestons.

“The government realised this was an unusual but high-risk area for our industry if those farmers can’t survive.”

With this timely intervention, the South Australian government has thrown a lifeline to its dairy farmers. As SADA prepares to distribute grants, there’s hope for industry stabilisation.

Sources: Government of South Australia , ABC

Important Changes to Pastoral and Horticultural Awards

Wed, 09 Apr 2025 20:46:09 GMT

It’s time to roll up our sleeves and dive into some crucial changes coming our way. As your trusted partners in the ever-evolving landscape of Australian agriculture, we at The Lucas Group are here to guide you through the latest updates to the Pastoral and Horticultural Awards.

What Agribusinesses Need to Know

As of 1 April 2025, our industry awards are being shook up. The updates to the Horticulture Award and Pastoral Award affect definitions, minimum pay rates, and classification structures. Now, we know changes to the awards can be a tall order, but The Lucas Group is ready to help you navigate these changes and make sure your agribusiness stays on track.

Key Changes to Both Awards

Both the Pastoral and Horticultural Awards are getting a facelift. Here’s the lay of the land:

Both awards now include specific time constraints for introductory-level positions, affecting how long employees can remain in these roles.
Entry-level roles are seeing changes in both their definitions and pay rates.

Horticulture Award Updates

The Horticulture Award has seen the introduction of new indicative tasks for Level 2 employees. This change provides clearer guidance on the responsibilities and expectations for workers at this classification level.

From 1 April 2025, the indicative duties for Level 2 employees include some of the duties that previously applied only to Level 1 employees. The duties are:

performing general labouring duties
fruit or vegetable picking, thinning or pruning
operating small towing tractor engaged in transfer of produce bins and other containers during harvest
performing a range of housekeeping tasks in premises and grounds
performing basic recording functions related to work performed at this level.

There are also new entry-level time constraints. Level 1 employees will now progress to Level 2 within their first 3 months in the industry.

Pastoral Award Updates

Several important updates have been made to the Pastoral Award. Firstly, Piggery Attendant Level 2 employees will see changes to their minimum pay rates. Additionally, the award now includes new ongoing classifications for:

Station hands
Station cooks
Station cook’s offsiders

With the new classifications come new time constraints for farm hands, piggery attendants and poultry farm workers (FLH1, FLH2, PA1 and PW2).

Farm hand level 1’s will now be capped at 6 months’ experience, and level 2s will be 6-12 months.
Piggery attendants level 1 will now also be reclassified to Level 2 within 3 months. This means that anyone with more than 3 months experience will need to be classified as PA2.
Poultry farm worker level 1 will have less than 6 months’ experience in the industry, moving to level 2 after their initial 6 months.

Your Action Plan

To ensure compliance and avoid potential penalties, we strongly recommend that all agribusinesses take the following steps:

Review your current setup. Are your classifications, pay rates, and allowances up to scratch?
Dust off those policy manuals and bring them in line with the new rules.
Your team needs to know what’s happening. Clear communication is key, just like in any good muster.

Staying on top of these changes isn’t just about dodging fines (though that’s important too). It’s about showing your team and the industry that you’re an employer of choice who values your team.

Contact The Lucas Group today to discuss how these award changes may impact your business and to develop a strategy for seamless implementation.

Sources : Pastoral Award 2020 [MA000035] , Horticulture Award 2020 [MA000028] , Fair Work Ombudsman

Do You Know Your Easter Staffing Obligations?

Tue, 01 Apr 2025 20:49:39 GMT

April is jam-packed with public holidays – including Easter – but do you know your rights and obligations as an employer through this period?

We all know agriculture doesn’t stop just because it’s Easter, but it’s important to be aware of what you need to do to maintain your agribusinesses compliance over this period.

When are the Easter Public Holidays for 2025?

Good Friday – Friday, 18 April (National)
Easter Saturday – Saturday, 19 April (except Tasmania and Western Australia)
Easter Sunday – Sunday, 20 April (except Tasmania)
Easter Monday – Monday, 21 April (National)
Easter Tuesday – Tuesday, 22 April (For government employees in Tasmania only)

Don’t forget, Anzac Day also falls on Friday, 25 April (National) this year, adding to the raft of April public holidays.

Your Public Holiday Employer Obligations

Your obligations for public holiday pay are typically outlined in the relevant modern award or enterprise agreement. These documents spell out the specific penalty rates for your industry.

No award or agreement? No worries. In that case, your employee’s contract will be the go-to for determining public holiday pay.

What’s The Law?

These additional entitlements often include:

Public holiday penalty rates
Extra day off or additional annual leave
Minimum shift lengths on public holidays
Time in lieu arrangements

For instance, the Pastoral Award 2020 allows for time in lieu arrangements and penalty wages. This approach ensures that our hardworking farm hands, shearers, and livestock attendants are fairly compensated for their dedication during public holidays.

The award stipulates that; “An employer and employee may agree to substitute another day for a day that would otherwise be a public holiday under the NES.”

Otherwise, penalty rates ranging from 200% to 250% of the ordinary hourly rate apply to wages, depending on the specific role and circumstances.

In the Horticulture Award 2020 , public holiday arrangements could be a time in lieu agreement or penalty wages. Casual employees are to be paid 225% of the employee’s ordinary hourly rate (inclusive of the casual loading). All other staff are paid at 200% of the ordinary hourly rate or 200% of the piece rate.

Can I Make Employees Work on Easter?

This entirely depends on the request being ‘reasonable’. The idea of ‘reasonableness’ is measured against a lot of different factors, including:

the employee’s personal circumstances, such as their family responsibilities
whether the employee is entitled to penalty pay or additional compensation that reflects the expectation to work on a public holiday
whether the employee works in a full-time, part-time, casual or shift work capacity
the advance notice given by the employer in making the request
the advance notice given from the employee if they refuse the work
whether the employee’s existing employment contract and salary includes work on a public holiday
whether the employee could reasonably expect the employer might request work on the public holiday.

Sources: Horticulture Award 2020 , Pastoral Award 2020 , National Employment Standards (NES)

Featured Image: Spiritze via Pixabay

High Court Ruling Shakes Up Employment Law

Tue, 18 Mar 2025 20:52:11 GMT

In a landmark decision, Australia’s High Court has recently delivered a judgement that has sent ripples through the HR and employment law community. This ruling overturns long-held assumptions and potentially exposes businesses to significant financial risks. The court ordered an employer to pay nearly $1.5M in damages to an employee who developed a psychiatric illness following an unfair disciplinary procedure that led to his dismissal. However, with careful contract drafting by experienced employment solicitors, much of this risk can be mitigated.

Case Overview

The case involved Mr Elisha, an adaptive technology consultant employed by Vision Australia Ltd, a not-for-profit organisation. Following allegations of aggressive behaviour during a work trip, Mr Elisha was subjected to a disciplinary process that the High Court later deemed a “sham” and a “disgrace”. The employer failed to follow its own disciplinary procedures, which were contractually binding, leading to Mr Elisha’s unfair dismissal and subsequent development of a major depressive disorder.

Key Legal Points

Contractual Nature of Policies: The High Court found that the employer’s policies and procedures were contractually binding, as both parties had agreed to comply with them.
Breach of Disciplinary Procedure: Vision Australia failed to follow its own procedures, denying Mr Elisha the opportunity to respond to all allegations against him.
Damages for Psychiatric Illness: Overturning previous assumptions, the High Court ruled that employees can recover damages for psychiatric illness resulting from unfair dismissal processes.
Foreseeability of Harm: The Court held that it was reasonably foreseeable that a flawed disciplinary process could lead to psychiatric illness in an employee.

Implications for Employers

This ruling highlights the potential for substantial damages awards arising from improper termination procedures. However, the significant damages in this case stemmed from the employer’s disciplinary procedure being incorporated into the employment contract.

To protect themselves, employers should:
Review employment contracts to ensure policies are not inadvertently incorporated.
Build flexibility into workplace policies and procedures to allow adaptation to specific circumstances.
Ensure disciplinary processes are fair, transparent, and adhered to strictly.
Seek expert legal advice when drafting employment contracts and conducting disciplinary procedures.

While this ruling presents potential risks for employers, careful contract drafting and adherence to fair procedures can significantly mitigate these risks. As employment law continues to evolve, businesses must stay informed and seek professional legal guidance to navigate these complex issues effectively.

Sources: MyBusiness , Australian Business Lawyers & Advisors

Crop Concerns Grow as SA Farms Thirsts for Relief

Thu, 13 Mar 2025 20:56:45 GMT

South Australia is drier than the Sahara, with rainfall deficits at a level on-par with the 2018-19 east coast drought . Despite the dire situation in the South, the crisis remains largely unnoticed beyond state borders.

A Localised Crisis with Broader Implications

Malcolm Bartholomaeus, a long-term grains industry analyst and farmer in Clare, SA, attributes the lack of national recognition to the drought’s confined geographical impact. However, the Bureau of Meteorology (BOM) reports that this dry spell is part of a larger trend affecting coastal areas of southern Australia, including Western Australia, Victoria, and Tasmania.

“While everyone here is well aware of the situation, outside the state there probably hasn’t been that wide ranging coverage we saw when the situation is hitting a larger area,” Mr Bartholomaeus said.

Bureau of Meteorology Highlights Long-Term Rainfall Deficiencies

The BOM’s February Drought Statement highlights a 23-month rainfall deficiency, beginning in April 2023. The statement notes that the analysis period covers the last two April to October cool seasons.

The cool season period is important for southern Australia as it is when the majority of its rainfall occurs. This means that:
it is the main growing season for many crops
there is increased soil moisture content and runoff
there is increased streamflow, leading to increases in water storage levels.

It also states that water storages in south-eastern states were 10 to 50% lower than the same time last year, while water storages for Adelaide and Perth were around 40% full.

Record-Breaking Dry Spell Impacts on Agriculture and Water Resources

The severity of the situation is evident in the rainfall statistics. Many centers across South Australia have recorded their lowest annual rainfall in over a century. BOM data shows that most of the state’s productive farmland is experiencing very much below average rainfall, with some areas facing their driest conditions on record for the past 12 months.

The persistent dryness has led to:

Decreased soil moisture content
Reduced runoff and streamflow
Lower water storage levels across much of southern Australia

These factors significantly impact the agricultural sector, affecting crop growth, livestock management, and overall farm productivity.

Grain Producers South Australia Seek Support and Recognition

Grain Producers South Australia (GPSA) has reached out to Federal Agriculture Minister Julie Collins, attempting to raise national awareness of the situation,

Their letter invites Ms Collins to visit South Australian regions and assess the conditions firsthand.

In the letter, GPSA chief executive Brad Perry noted that the start of 2025 had not raised confidence, with no substantial rainfall to generate subsoil moisture prior to planting.

Board member at GPSA James Venning, from the Yorke Peninsula, said last season had proved tough but subsoil moisture had assisted.

“We will enter this year with no subsoil which is tougher if we run into a dry spell during the season.”

“The immediate area I’m in was probably one of the more fortunate ones, due to soil type and timing of the rain we were able to get away with it to an extent, particularly on crops such as lentils and barley, which were exceptional given the fact it was the lowest rainfall recorded at Bute since 1914.”

Calls for Federal Government to Join South Australian Government in Relief Assistance

The South Australian Government has recently implemented an $18 million drought support package to assist primary producers, including:

$5 million for on-farm drought infrastructure grants
$2 million to assist charities with freight costs to transport donated fodder to assist farmers with feeding livestock – charities wishing to apply for the SA Drought Donated Fodder Transport Assistance Scheme should contact PIRSA.drought@sa.gov.au or call our Recovery Hotline
$100,000 for grants of up to $5,000 for events that connect communities
$4.4 million budget commitment plus an extra $1 million for additional health and wellbeing support through Family and Business (FaB) Mentors and Rural Financial Counsellors
$5.5 million funding provided to the State and Federal Government’s Future Drought Fund, which includes ongoing programs to help farmers with farm business resilience planning, climate tools and demonstrating more resilient farming practices.

However, it’s been suggested that federal government intervention could help with practical assistance.

“We need to look at the acute things that need addressing now,” said Mr Bartholomaeus.

“For instance, new tanks will be fantastic help when the next drought comes around but aren’t going to help make it rain, instead it would be good to look at water tanker and freight subsidies to keep water up to houses and to livestock.”

He also noted the impact across the sector; “Some business types, such as cropping, might not be quite as bad, while some agribusinesses with a good footprint outside the state may have more income coming in while those with a focus on serving local farmers are doing it tougher, but the dry is being felt right across the industry.”

As South Australia’s agricultural community continues to battle this silent crisis, it’s crucial for the rest of the nation to recognise and support their struggle. The resilience of our farmers and the importance of sustainable water management have never been more apparent.

References: Farm Online , BOM February Drought Report , PIRSA , GPSA

New Organic Produce Bill Aims to Standardise Labelling

Thu, 16 Jan 2025 21:00:50 GMT

60% of the world’s certified organic farmland, is on the brink of a significant change as the Rural and Regional Affairs and Transport Legislation Committee investigate a standardised system for organic claims in Australia.

The Wild West of Organic Labelling

Despite accounting for 60% of the world’s certified organic farmland across an area larger than Thailand (53 million hectares), Australia only has a 1.36% share of global organic retail sales.

This discrepancy has been suggested to be partially a result of our lack of regulation for organic labelling.

Currently, products in Australia can be labelled and sold as “organic” with as little as one organic ingredient, leaving consumers to navigate a confusing marketplace.

“Products in Australia can claim to be organic with as little as two percent of the ingredients being certified organic,” noted Nationals Party leader, David Littleproud.

“It defies logic that organic products currently aren’t required to be certified or comply with any particular organic standard, but can still call themselves organic.”

Australian Organic Going Global

Australian Organic Limited (AOL) Chief Executive Officer, Jackie Brian, said the National Organic Standard Bill would help our government negotiate equivalency agreements with other nations.

“…producers would only need to attain one certification, the National Organic Standard established by this Bill, cutting red tape and stimulating export growth,” she said.

Data from the Department of Agriculture, Fisheries and Forestry shows that in 2022-23, the value of the Australian domestic and export organic industry topped $2.3 billion, with organic goods exported to 55 countries.

The government recently signed a Statement of Intent on Organics with China and is negotiating an upgraded Organic Equivalency arrangement with the European Union and a Mutual Recognition Agreement with India.

Australia currently has certified organic equivalency arrangements in place with Taiwan, the European Union, the United Kingdom, Japan, and Switzerland. There are also conformity arrangements in place between certain Australian certifiers and foreign governments, most notably the United States.

The Proposed National Organic Standard Bill

The National Organic Standard Bill aims to address this issue by introducing stricter regulations for organic labelling. National Party leader David Littleproud describes it as a “commonsense solution to improve the domestic regulation of organics.”

If passed, the Bill would establish the National Standard for Organic and Bio-Dynamic Produce as the mandatory domestic certification standard for businesses selling organic products in Australia.

The bill has garnered support from major industry stakeholders, including The Organic Development Group, which includes all five organic certification bodies and the two largest peak groups, Australian Organic Limited (AOL) and the National Association for Sustainable Agriculture Australia (NASAA), along with Organic and Regenerative Investment Co-operative (ORICoop) and Certified Organic Biodynamic Western Australia (COBWA).

Australian Organic Limited (AOL) Chief Executive Officer, Jackie Brian, said the National Organic Standard Bill would establish a level of consumer protection that has been “desperately needed”.

The Good, The Bad, and The Organic

While the bill promises significant benefits, it’s not without potential drawbacks.

A submission to the inquiry from the Department of Agriculture, Fisheries and Forestry (DAFF) said regulation of the domestic organics industry had been a long-standing issue, however, the absence of a domestic organics regulatory framework does not prevent international trade.

“Australia’s organic export system is recognised as equivalent with the European Union, Japan, Switzerland, Taiwan, and the United Kingdom systems,” the submission says.

“Where equivalence does not exist, the organic industry is able to export to that market through conformity arrangements between certain Australian certifiers and foreign governments. That is the case for exports to the US, which is by far Australia’s biggest export market.”

While acknowledging that a mandatory domestic standard would ensure all organic producers were certified to the same standard the DAFF also noted there may also be some negative competition implications.

“The introduction of a mandatory standard is likely to provide a competitive advantage to businesses that are already meeting the requirements of the standard. Comparatively, businesses that are making a genuine effort to produce organic goods, but whose practices do not align with the new standard, will face additional hurdles and cost to continue to make organic claims,” the government regulators said.

Further, the requirement to have an operator certificate to sell organics would put a financial imposition on small operators and could result in a reduction in the number of farmers selling organic produce, they said.

Leaving Organics on a Cliffhanger

While the benefits of increased consumer trust and export simplification are clear, careful consideration must be given to mitigating potential negative impacts on small businesses and market diversity.

The Rural and Regional Affairs and Transport Legislation Committee is currently preparing its report, due on 31 January 2025.

References: Senate Standing Committees on Rural and Regional Affairs and Transport , The National Association for Sustainable Agriculture Australia , Grain Central

New Year, New Criminal Underpayment Laws

Tue, 07 Jan 2025 21:04:14 GMT

New criminal underpayment laws started on 1 January 2025, bringing new risks for agribusinesses.

Here’s a reminder about what’s changed.

The Changes

From 1 January 2025, intentional underpayment of wages or entitlements can be a criminal offence.

Fair Work Australia can now investigate suspected criminal underpayment offences and refer suitable matters for criminal prosecution. If a person is convicted of a criminal offence, a court can impose fines, prison time, or both.

Underpayment may include:

not paying sufficient wages, including penalty rates, overtime rates and allowances (or not paying them at all)
not paying amounts required by the applicable award or enterprise agreement
not paying other entitlements, for example, superannuation for some employees.

Small businesses will commit the criminal offence for intentionally underpaying an employee if:

they’re required to pay an amount to an employee, such as wages or super
they fail to pay the amount in full on or before the day they’re due to be paid
they intentionally engage in conduct with the intent that it results in those amounts not being paid.

Intentional conduct includes:

taking an action, such as purposefully paying less than an employee’s minimum entitlements
failing to take an action, like purposefully not paying an employee at all.

What is ‘The Code’ for Small Businesses?

The Voluntary Small Business Wage Compliance Code is a legislative instrument created under the Fair Work Act. Its purpose is to help small business employers avoid criminal prosecution if they didn’t intentionally underpay their workers. The FWO can’t refer a small business for criminal prosecution under the criminal offence if they can demonstrate that they have complied with the Code.

A small business employer will have complied with the Code if they did not intend to underpay their employee. The Code contains several factors that may be relevant when the FWO considers whether a small business employer intentionally underpaid their employee. This includes:

any steps the business took to check they’re paying their employees correctly and staying up to date with changes. This includes any minimum pay increases or legislative updates
any steps the business took after finding out about the underpayment, including:
correcting mistakes
promptly back paying workers
taking steps to ensure the underpayment doesn’t happen again.

Businesses of all sizes can use the Code and supporting guide to ensure they are paying their employees correctly and quickly address any issues as they arise.

What You Can Do Now

The Lucas Group has prepared a guide on how to navigate these changes and how to make sure you’re complying with all recent changes to awards and the Fair Work Information Statement. Follow our action steps to compliance here.

You can also access tools and guides through Fair Work including:

Fair Work’s Guide to paying employees correctly and the Code to check employees are being paid correctly.
Fair Work’s free tools and resources , including calculators to check pay rates.

Proactive preparation is key to avoiding costly mistakes and protecting your business’s reputation. Understanding changes, auditing practices, and implementing strong compliance systems help agribusiness employers safeguard themselves and their employees under the new legislation.

More information on Closing Loopholes changes from The Lucas Group can be found here .
Visit the Fair Work Ombudsman’s website here for further clarification on wage theft criminalisation.

What Not to Do at Your Work Christmas Party

Thu, 05 Dec 2024 21:09:03 GMT

The holiday season is upon us, and with it comes the much-anticipated work Christmas party.

While these events are a great opportunity to celebrate the year’s achievements and bond with colleagues, it’s crucial to remember that they are still work-related functions.

To help you navigate the festivities without compromising your professional reputation, we’ve compiled a list of dos and don’ts for your next office Christmas party.

Know Your Limits

As El Leverington, a senior associate at Slater and Gordon Lawyers, reminds us, “Be sensible, know your limits, and treat people with respect the same way you should always do in your workplace.”

It’s essential to remember that the same laws around sexual harassment, discrimination, and workplace health and safety apply at your work Christmas party as they would any other time in your professional life.

What Not to Do

Don’t Drink Too Much
While it’s tempting to indulge in free-flowing drinks, overconsumption can lead to poor decision-making and unprofessional behaviour. Pace yourself and know when to stop.

Avoid Social Media Blunders
Be cautious about what you post on social media during or after the party. An ill-timed or inappropriate post could have lasting consequences for your professional image.

Be Wary of Inter-Office Personal Relationships
The relaxed atmosphere of a Christmas party isn’t an invitation to pursue romantic interests with colleagues. Maintain professional boundaries to avoid awkward situations in the workplace.

Don’t “Kick-On” Excessively
While after-parties can be fun, remember that your actions can still have professional repercussions. If you choose to continue celebrating, do so responsibly.

What You Should Do

Report Anything That Doesn’t Feel Right
Unfortunately, work events involving alcohol can sometimes lead to instances of sexual harassment. If you feel unsafe or witness inappropriate behaviour, it’s important to take action:

Make someone aware of the situation, whether it’s a trusted colleague or venue security.
Document the incident as soon as possible, either by emailing or informing a manager.
Keep a record of your complaint and your recollection of events.

Remember, approximately one in three Australians have experienced sexual harassment at work in the last five years, according to Respect Victoria. By speaking up, you help create a safer work environment for everyone.

What Could Cost You Your Job?

While the Christmas party is a time for celebration, it’s crucial to understand that your actions can have serious consequences, including the potential loss of your job. Recent cases heard by the Fair Work Commission highlight the importance of responsible behaviour at work-related events.

In 2018, a supermarket warehouse worker contested his dismissal after throwing a full glass of beer at colleagues during a Christmas party. Despite claiming he couldn’t recall the incident and arguing that it wasn’t an official function, the Fair Work Commission upheld his dismissal. The commissioner stated that his behaviour was serious and could have caused significant injury.

This case underscores two important points:

Your actions at work events can lead to termination, even if you don’t remember them.
The unofficial nature of an event or the absence of managers doesn’t exempt you from professional conduct expectations.

While employees are ultimately responsible for their actions, employers also have a duty of care. In a 2015 case, the Fair Work Commission noted that employers might be held partially responsible for incidents related to excessive alcohol consumption if they haven’t taken steps to ensure responsible drinking.

However, this shared responsibility doesn’t absolve employees of accountability. As Leverington points out, “You can be held liable for your conduct at the workplace Christmas party when you get back to the office.”

These cases serve as stark reminders that while Christmas parties are meant to be enjoyable, they’re still extensions of the workplace. Maintain professional conduct, drink responsibly, and remember that your actions can have lasting impacts on your career.

By being mindful of these potential consequences, you can ensure that your Christmas party stays a positive experience and doesn’t jeopardize your professional standing.

The Bottom Line

Leverington emphasises, “A work Christmas party should be treated like any other day at work in that it doesn’t mean your behaviour can go out the window.” While the holiday season is a time for celebration, it’s crucial to maintain professionalism and respect for your colleagues.

Following these guidelines, you can enjoy your office Christmas party while ensuring you start the new year with your professional reputation intact. Happy holidays, and remember to celebrate responsibly!

Sources: SBS News , FairWork Ombudsman

Rules During Festive Season Shut Downs

Tue, 26 Nov 2024 21:29:53 GMT

Christmas is coming and businesses need to start planning their end-of-year holiday season, and how they will operate through this period – it’s a delicate balance between operational needs and employee welfare in agribusiness.

Does your business get busier and need employees to work more hours or through Public Holidays? Or, does your business shut down or work with a ‘skeleton staff’ over Christmas/New Years?

Our extensive experience in HR allows us to guide you through the complexities of modern award provisions with the confidence of Santa, 4 milks into Christmas Eve!

Required Annual Leave During a Shutdown

If your business is shutting down for the holiday season, you may be able to direct your employees to take annual leave. This depends on the award or any relevant registered agreement.

In May 2023, a game-changing Model Clause was introduced to most awards, giving employers more flexibility in managing annual leave during temporary shutdowns. Here’s what you need to know about the conditions placed on this change:

Provide your hardworking team with at least 28 days’ written notice of the shutdown period. Remember, in the fast-paced world of agriculture and production, time flies – so plan ahead!
Ensure your employees have enough annual leave to cover the shutdown. This is crucial for maintaining a smooth operation and keeping your valuable workforce happy.
Your direction to take annual leave must be fair and considerate. We’ll help you strike the right balance.

It’s important to remember though that every award and agreement is different, so you should check to make sure before you give employees any directions to use annual leave. You can check which award may apply to your staff here .

If your staff are employed award-free, you can only direct them to take annual leave if the direction is reasonable.

What Makes a Shutdown “Reasonable”?

In our years of supporting Australia’s vital agriculture and production sectors, we’ve learned that reasonableness isn’t one-size-fits-all. The National Employment Standards (NES) require all directives to take annual leave to be reasonable, regardless of award coverage.

When determining if a shutdown is reasonable, consider these factors from the Fair Work Bill 2008:

Balance business needs with employee interests
Honour existing agreements between you and your team
Align with your industry’s standard practices
Consider the timing’s impact on your employees’ commitments
Provide adequate notice

Employees Without Enough Annual Leave to Cover a Shutdown

In an ideal world, every staff member would have ample leave for Christmas shutdowns. However, we know that’s not always the case in the bustling world of agriculture. New hires or unexpected leave calculations can leave you in a bind.

When your staff are faced with insufficient annual leave, don’t let it derail your operations. Here are some strategies we’ve seen work well for our clients:

Negotiate unpaid leave agreements
Maintain pay during shutdowns (even without work)
Keep essential staff on-site during closures

But here’s where our expertise really comes into play. If an employee’s leave bank is running low, we’ve helped many clients find creative solutions using:

Overtime compensation as time off
Accrued rostered days off (always in line with industry awards)
Advanced annual leave options

Remember, though, that employee consent is key. Many awards and agreements require it, and we’ve found that open communication leads to the best outcomes.

Awards and Agreements Without Shutdown Rules

If your staff are employed under an award that doesn’t have rules allowing shut down directions then you can’t direct them to take annual leave.

However, you can come to an independent agreement with your staff to take annual leave, or unpaid leave, over the holiday season.

Working Through a Shut Down or Public Holiday

If one of your employees continues working when your business is shut down, they should receive their normal pay. If there is a public holiday during the shutdown, employees should still be given the day off without loss of pay, or they should be paid the public holiday rates under their award or agreement if they work.

You can ask your employees to work overtime or on a public holiday if it’s reasonable. However, they can decline the request if they have a valid reason.

If you are requesting that an employee work on a public holiday, you need to consider all relevant circumstances. Whether a request is reasonable depends on several things, including:

the needs of the business
the role and responsibility of the employee
the employee’s personal commitments, like family or caring arrangements
how much notice the employee gets about the extra hours
what the employee’s contract says.

If an employee works overtime or on a public holiday, their award or registered agreement may give them additional entitlements such as:

penalty rates
a different day off
extra annual leave.

Looking to communicate formally with your staff about your festive shutdown? Download our Letter to Employee Advising Shut Down template .

For more questions about business operations through the festive season, check out the Fair Work Australia resources.

Criminalisation of Wage Theft – What Do You Need To Know?

Thu, 21 Nov 2024 21:39:08 GMT

More changes to the Fair Work Act 2009 (Cth) are on the horizon , with harsh penalties for employers that intentionally underpay employees (wage theft) coming into effect on 1 January 2025.

What is the law at the moment?

Before the Federal update, Queensland and Victoria were the only Australian states to have enacted wage theft laws.

In Queensland, employers engaging in deliberate wage theft risk u to 10 years’ imprisonment. In Victoria, employers dishonestly withholding employee entitlements face a potential penalty of up to $1 million and up to 10 years’ imprisonment.

Across the rest of Australia, an employer could face civil liability for failing to pay an employee their entitlements under the Fair Work Act, an enterprise agreement or a modern award. While this could result in the court awarding compensation and a civil penalty, there was no risk of criminal sanction.

What’s changing?

The Fair Work Legislation Amendment (Closing Loopholes) Act 2023 will amend the Fair Work Act to make wage theft a criminal offence at a Commonwealth level. These amendments will apply to employers who intentionally engage in conduct that results in an underpayment to employees.

The new laws apply to entitlements under the Fair Work Act, modern awards, or enterprise agreements, not contractual arrangements or entitlements like jury duty payments or long service leave.

What is underpayment?

Underpayment refers to receiving less pay than what you are entitled to. This can occur in various work settings, meaning you might earn less than what is specified in the relevant Award or agreement, or below the national minimum wage. When underpayment is intentional, it is referred to as wage theft.

Underpayment and wage theft can take many forms, including:

Failing to pay superannuation
Failing to pay breaks and overtime
Not paying for trial or training periods
Not paying personal, annual or other forms of paid leave entitlements
Misclassifying workers as independent contractors
Not paying personal, annual or paid leave
Not paying you the right rate according to your award classification.

What will the penalties be?

Under the new amendments, employers found guilty of wage theft face severe penalties, including up to 10 years’ imprisonment for individuals and fines of up to $7.8 million for companies.

The penalties will be calculated based on the greater of:

3x the amount underpaid (if calculable),
$7.8 million for companies, or
$1.57 million for individuals.

These penalties are intended to reflect the seriousness of intentional wage underpayment and aim to deter employers from engaging in dishonest conduct regarding employee entitlements.

The Fair Work Ombudsman (FWO) will investigate wage theft allegations and refer cases to the Commonwealth Director of Public Prosecutions (CDPP) or the Australian Federal Police (AFP) for criminal prosecution.

But what if it’s an honest accident?

Intent is key. To be criminally liable, the employer’s intent to withhold wages must be proven beyond a reasonable doubt. Honest mistakes or payroll errors are not considered criminal.

Small businesses that can show compliance with the upcoming (currently in development) Voluntary Small Business Wage Compliance Code will not be referred for criminal prosecution.

What does all this mean?

For employers, the new laws signal a shift towards stricter accountability for wage compliance, with intentional underpayment now treated as a serious criminal offence at the national level.

The penalties underscore the importance of robust payroll systems, a clear understanding of award entitlements, and accurate record-keeping.

Employers must take proactive steps to ensure they are meeting their obligations under the Fair Work Act, as the risk of significant fines, imprisonment, and reputational damage has never been higher.

While honest errors will not lead to criminal charges, failing to address potential underpayment issues could still result in civil penalties or prosecutions. This legislative change serves as a reminder that ignorance of the law is no excuse, and compliance must be a priority for all businesses, regardless of size or industry.

The introduction of criminal penalties raises the stakes for agribusinesses, particularly those managing casual, seasonal, or award-based workers, who may be at greater risk of underpayment disputes. Agribusiness employers should proactively ensure compliance to avoid severe penalties and reputational damage.

Sources: Employment Law Handbook , Fair Work Ombudsman , Department of Employment and Workplace Relations

Get Prepared for Wage Theft Law Changes

Thu, 21 Nov 2024 21:34:43 GMT

The u pcoming amendments to the Fair Work Act 2009 (Cth) through the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 represent a significant shift in how wage theft is addressed at the Commonwealth level. We’re here to guide you through these changes and help you prepare your agribusiness for compliance.

These changes bring new risks for agribusinesses, which often employ workers under awards such as the Pastoral Award 2020, where unique provisions require careful management. Below is a guide to help agribusiness employers prepare for compliance and avoid serious penalties.

Understanding the New Landscape

The criminalisation of wage theft at the federal level marks a watershed moment for Australian businesses, particularly in the agriculture sector. As stewards of the land and pillars of our nation’s economy, it’s crucial that we approach these changes with the same diligence and care we apply to our crops and livestock.

Key Points for Agribusinesses:

Criminal Offence: Wage theft will soon be classified as a criminal offence, carrying severe penalties. This underscores the importance of meticulous payroll practices and thorough record-keeping.
Increased Scrutiny: Expect heightened attention from regulators. Now is the time to review and fortify your wage and salary systems.
Compliance is Key: Ensuring compliance isn’t just about avoiding penalties – it’s about upholding the values of fair work that are fundamental to our industry.

Action Steps for Agribusiness Compliance

Review and Audit Current Payroll Practices
Conduct a thorough audit of payroll systems to ensure compliance with the Fair Work Act, modern awards, labour hire agreements, and enterprise agreements.
Focus on areas prone to errors, such as overtime, penalty rates, and allowances under the Pastoral Award 2020.
Compare annualised salary arrangements against award entitlements to confirm employees are not being underpaid.
Implement Robust Record-Keeping Systems
Maintain clear and accurate records of hours worked, pay rates, overtime, and allowances for all employees.
For annualised salary employees, track their hours and entitlements to prove compliance with the award.
Be ready to demonstrate compliance if investigated, with documented proof of adherence to relevant regulations.
Educate Your Team
Ensure all managers and supervisors understand the new legislation and its implications.
Ensure payroll staff understand the changes to wage theft laws.
Provide specific training on entitlements for overtime, penalty rates, and allowances.
Address Underpayments Promptly
If any underpayment issues are identified, rectify them immediately by repaying employees and updating payroll systems.
Consider leveraging ‘safe-haven’ provisions if intentional underpayment has occurred.
Ensure Clarity in Employment Agreements
For employees covered by the Pastoral Award 2020, document entitlements, working hours, and pay arrangements.
Regularly communicate with employees about their pay and conditions to avoid misunderstandings.
Seek Expert Advice
Consider consulting with employment law specialists to ensure your practices are fully compliant.
Engage agricultural-focused legal experts for tailored compliance guidance.
Schedule regular legal audits to keep your agribusiness practices up-to-date.
Foster a Culture of Compliance
Make fair pay a cornerstone of your business culture, emphasising its importance to all staff.
Consider implementing a ‘Fair Pay Champion’ program to promote compliance on the ground.
Integrate compliance discussions into regular team meetings, alongside operational matters.
Monitor the Development of the Compliance Code
For small agribusinesses (15 or fewer employees), stay updated on the Voluntary Small Business Wage Compliance Code.

Navigating the Pastoral Award 2020

The Pastoral Award 2020 governs many agribusiness employees, but it has key nuances that demand attention, especially in light of the upcoming changes.

No Provision for ‘Reasonable Overtime’

Unlike many other awards, the Pastoral Award 2020 does not include a ‘reasonable overtime’ clause.

This means all overtime worked must be correctly compensated according to the award rates. It’s crucial to:

Accurately track all hours worked
Ensure your payroll system can handle variable overtime calculations
Regularly review work schedules to manage overtime effectively

Annualised Salary Arrangements

The award allows for an annualised salary arrangement, enabling employers to pay an agreed salary that includes entitlements like overtime, penalty rates, and allowances. However, employers must:

Document the specific terms of the agreement.
Regularly review annualised arrangements to ensure they remain beneficial for both parties
Keep detailed records of hours worked, including start and finish times
Conduct annual reconciliations to ensure the annualised salary meets or exceeds award entitlements

Why Compliance Matters for Agribusinesses

Agribusinesses often face unique challenges, such as seasonal workforces, remote operations, and complex award conditions. However, these complexities will not exempt employers from the harsh penalties under the new laws, including up to 10 years’ imprisonment and fines of up to $7.8 million for corporations or $1.57 million for individuals.

Proactive preparation is essential to avoid costly mistakes and protect your business’s reputation. By understanding the changes, auditing practices, and implementing robust compliance systems, agribusiness employers can safeguard themselves and their employees under the new legislative framework.

More information on Closing Loopholes changes from The Lucas Group can be found here .
Visit the Fair Work Ombudsman’s website here for further clarification on wage theft criminalisation.

Government Emissions Scheme Will Lead To Hefty Burden For Australian Farmers

Thu, 07 Nov 2024 21:43:11 GMT

The Australian Government’s recent mandatory carbon emissions reporting scheme is set to heavily impact farmers when it comes into effect on 1 January 2025.

New Carbon Emissions Reporting Scheme

From 1 January 2025, many large Australian businesses and financial institutions will need to prepare annual sustainability reports containing mandatory climate-related financial disclosures.

This initiative, which is expected to involve at least 1,800 large firms, aims to address climate change by requiring companies to report on their carbon emissions and climate-related risks.

According to Treasury, the scheme is designed to “appropriately price climate-related risks and opportunities” and document companies’ actions to “meet their climate change targets”. It will eventually require firms to report not only on their direct emissions but also those throughout their supply chain.

The looming changes have raised concerns across the agricultural sector, with compliance costs and potential impacts on consumer prices potentially skyrocketing.

Cost Concerns Raised Across Sector

The exact cost and impact of the mandatory reporting is unknown at this point, but it’s been estimated at $2.3 billion for the first year alone, with the National Farmers’ Federation (NFF) warning that these costs will be passed on to consumers.

While the Australian Accounting Standards Board has yet to clarify the real-world implications for the agricultural sector it’s clear that banks, insurers, suppliers and customers will need data from farmers for their reports.

In a recent interview with The Advertiser, Nationals Federal Leader, David Littleproud warned that the enormous financial burden couldn’t be absorbed by farmers, saying: “It means prices have to go up. No one can absorb that. That has to be passed on.”

“ … It’s the financial burden for farmers from all scales that are going to have to comply with this legislation. This is an ongoing cost that is just adding more cost to the end consumer,” he said.

“This is where the uncertainty is. This is where it’s unnecessary and no one else in the world is doing it bar Australia…”

Similar Schemes Scrapped in Other Nations

Mandatory reporting schemes similar to this have been proposed in other Western governments, with the United States outright rejecting one.

Mr Littleproud pointed out that the measures imposed in Australia go beyond similar schemes in the European Union, Canada and the United Kingdom.

Our neighbours, New Zealand, as recently as June vowed to scrap a tax on livestock methane emissions, insisting climate change obligations could be met without “shutting down Kiwi farms”.

Backlash from Kiwi Farmers Amid Proposed Carbon Tax on Livestock

Farmers Speaking Out About Burden

Nationwide, farmers have begun speaking out about the burden of the scheme.

York Peninsula farmer, Elden Oster, is part of a farmers’ group campaigning against the scheme. Speaking to The Advertiser he noted that the scheme would trigger “extra red tape reporting and cost on food production”.

“We’ve got more red tape, more bureaucracy, more experts telling us what we can and can’t do. And now the carbon space is going to cripple the mindsets, the mental health and the capacity of farmers to have to do mandatory reporting…” he said.

“It’s time for the Australian Government and the Australian people to realise that we are growing food, and some of the best food in the world, to feed the world and to feed our great nation – and you can’t eat carbon.”

NFF President, David Jochinke, said that while the scheme would undoubtedly lead to more red tape and higher costs, the “full extent of the burden remains unknown”.

“Farmers are increasingly frustrated by the rush to implement lofty green goals without considering the practical impact on small farming businesses,” he said.

Mr Jochinke noted that once the full impact is realised, the NFF will work with the supply chain to ensure farmers aren’t “disproportionately lumped with excessive reporting and compliance costs”, adding that farmers needed to receive support to implement the scheme.

Information on the exact ramifications of the mandatory climate disclosure regime is unknown yet, however, more information on compliance can be found through ASIC and BDO .

Sources: The Advertiser

Grow with Confidence: Why Use A Recruitment Expert for Agribusiness Executive Search?

Wed, 06 Nov 2024 21:46:41 GMT

In the swiftly evolving landscape of Australian agribusiness, securing the right talent has become increasingly challenging. As recognised partners in agribusiness recruitment for over 30 years, The Lucas Group has witnessed firsthand the profound shift in staffing expectations and hurdles in filling vacancies. Our commitment lies with our partners, leveraging our experienced and proficient team to parse through countless applications, separating the wheat from the chaff to locate the ideal candidate for you.

Time and Finances: Precious Commodities

We know that time is an invaluable, non-renewable asset. Most leaders in Agribusiness today don’t have time to waste going through the laborious steps of listing an open position, checking through hundreds of unsuitable resumes and conducting hours’ worth of initial interviews. The inherent limitations and hidden costs of internal recruitment processes can compound rapidly—from considerable salaries of the recruitment team to time invested by additional team members involved in recruitment, to the cost of downtime spent by hiring managers on myriad recruitment tasks. Just a few examples of the financial ramifications of internal hiring policies include:

Recruitment team salaries
Training costs for your recruitment and HR personnel
Time of extra team members involved in the recruitment process
The cost of downtime spent by hiring managers writing job descriptions, posting ads on job boards, reading CVs and shortlisting candidates, telephone screening, interviewing and considering the most suitable candidates.
Having a meeting room space to interview candidates?
The cleaning and maintenance costs of keeping these rooms available.
Cost of bad hires, attrition and turnover.

When you consider these factors collectively, seeking the assistance of a seasoned recruitment partner becomes not just appealing but essential.

Expert Agribusiness Acumen: Not a Guarantee, but a Necessity

It’s difficult to find the right agribusiness team member if the person recruiting them couldn’t tell a Merino from Shawn the Sheep. At the Lucas Group, agribusiness isn’t just a service we offer—it’s at the core of who we are.

Our team hails from regional backgrounds, lending unique insights into the industry. This breadth of lived experience and intricate knowledge provides us with a first-hand understanding of regional Australia, its challenges, and its thriving communities.

We’re passionate about the continued prosperity of agriculture in Australia. Partnering with us connects you to specialists who live and breathe agriculture.

Harnessing the Power of Parallel Searching & Advertising

Seeking expert help in your recruitment can open doors for your team building that didn’t even exist before. Our partners enjoy the benefits of a parallel search, which takes the best bits of headhunting and job advertising, leaving you with the standout candidates.

Why not strengthen your team building by utilising bespoke advertising campaigns and a network of well over 100,000 agricultural professionals in Australia?

Our team at The Lucas Group is dedicated to ensuring that each role we handle not only spotlights the unique propositions of our partner’s agribusinesses but also gains maximum outreach. Even the act of posting a job on Seek is more effective through our process, with our job ads on Seek receiving 70% more applications than other agribusiness ads and being shown to 75% more potential applicants than similar ads.

At The Lucas Group, we’ve got your back when it comes to recruitment needs. You can trust us to take care of everything so you can focus on leading your business with peace of mind. We’re more than just a recruitment agency, we’re your partners in prosperity. We’re passionate and knowledgeable, and we’re committed to fueling your success. With The Lucas Group on your side, you can be confident in your team-building processes and grow your business together with us. You sow the seed, and we help it thrive.

Backpacker Visa Changes Threaten Rural Businesses

Wed, 23 Oct 2024 21:55:36 GMT

Potential changes to WHM visa could lead to losses exceeding $200 million annually for regional businesses, sparking concern among industry leaders and local communities.

For decades, the Working Holiday Maker (WHM) visa program has been integral to the sustainability and growth of regional economies, attracting over 200,000 workers annually from more than 40 partner countries. However, discussions about altering visa requirements have raised alarms about the future of this essential program.

The Current Landscape

Under the current system, WHM visa holders can extend their stay by completing 88 days of specified work in regional areas. This requirement has been pivotal in directing necessary labour to rural sectors, particularly in agriculture and tourism.

As Rachel Chambers, CEO of Growcom, aptly states, “If we take away the working holiday visa arrangements, it’s almost like taking away a leg of a chair.”

Proposed Changes to WHM Visa and Their Implications

The federal government’s regional migration review is contemplating significant alterations to the WHM visa program.

One of the proposed changes is the removal of the remote and regional work requirement for visa extensions, a shift that has already been enacted for UK visa holders under a recent trade agreement.

The WHM program is not merely a source of labour; it also plays a crucial role in Australia’s tourism industry. WHM participants represent 27% of total visitors but account for 45% of visitor spending, with 44% of that expenditure occurring in regional areas.

Additionally, for every 10 WHM visas issued, one full-time job is created for Australians, underscoring the program’s broader economic impact.

Potential Economic Consequences

While these proposals aim to tackle ongoing issues of worker exploitation, they could severely impact regional economies and the agricultural sector.

A report commissioned by key stakeholders, including the National Farmers’ Federation (NFF), estimates that if 20,000 WHMs cease to work in regional areas, it could result in a $203 million annual loss and over 1,000 job losses.

The agricultural sector is particularly vulnerable. WHMs currently constitute 14% of all farm workers, with even higher percentages in specific industries: 44% in horticulture, 31% in grains, 26% in red meat, and 25% in cotton during peak seasons.

If WHMs are no longer available, the horticulture industry alone could face potential losses of $6.3 billion and the elimination of 127,000 jobs along the supply chain.

These figures are especially alarming amid ongoing labour shortages in regional areas.

As of June 2023, tourism job vacancies have surged by 176% since 2019, with around 17,000 openings, primarily in regional locations. Additionally, 57% of farms report difficulties in recruiting labour, with WHMs filling crucial gaps.

While alternatives like the Pacific Islander Mobility Scheme (PALM) exist, they often do not meet the needs of many small to medium growers, highlighting the unique role that WHMs play in the agricultural workforce.

This situation underscores the delicate balance between addressing worker welfare concerns and maintaining the economic viability of regional Australia. Any changes to the WHM program must consider the wide-ranging impacts on regional economies, the agricultural sector, and the tourism industry.

Beyond the Numbers Into The Cultural Impact

Jo Sheppard, CEO of the Queensland Farmers’ Federation, emphasizes the cultural contributions of these workers, noting that their diversity enriches the social fabric of rural and regional communities.

NFF President David Jochinke reinforces this perspective, stating, “These backpackers aren’t just an invaluable workforce for farmers; they also contribute to the cultural landscape and economies of our regions and return home as ambassadors for Australia.”

Industry Leaders Speak Out About WHM Visa Changes

Peak organizations representing farmers, backpackers, and tourism have released a report highlighting the economic significance of backpackers in regional areas. The report, produced by Aither for the NFF, Backpacker & Youth Tourism Advisory Panel (BYTAP), and the Australian Tourism Export Council (ATEC), underscores Australia’s attractive WHM visa program.

NFF President David Jochinke stresses the importance of maintaining the current system, stating, “It’s become a rite-of-passage for young visitors to get out into the regions and experience the full extent of what Australia offers.”

“Nothing hits quite like the sunsets from the back paddock where backpackers can contribute to helping Australia produce food and fibre for the rest of the world.”

Wendi Aylward, Chair of BYTAP, asserts: “…it is imperative the 88-day requirement remains in place. The Migration Review Discussion Paper has flagged this may be removed and this would be devastating for regional Australia.”

Aylward adds, “Encouraging international travellers to live, work and travel in regional Australia gives them a unique opportunity to experience Australia in a way few can do. This is soft diplomacy working at its best.”

Peter Shelley, Managing Director of ATEC, also expressed concerns, noting that the WHM visa facilitates a “valuable cultural exchange” and cultivates long-term advocates for Australia.

He emphasises, “As we head into the next 50 years, we want to ensure the WHM program delivers great outcomes for our working holiday makers, our employers across the country, our industry, and the Australian community.”

What This Means for Regional Businesses

The challenge lies in refining the WHM visa system to safeguard workers while preserving the vital contributions of WHMs to regional economies.

As discussions progress, regional businesses should:

Stay informed about potential policy changes.
Explore diversifying their labour strategies.
Engage with local representatives to express concerns.
Collaborate with industry bodies to propose constructive solutions.

The outcome of these discussions will significantly impact the future of many regional and rural businesses. At The Lucas Group, we remain committed to supporting our clients through these potential changes and helping them navigate the evolving landscape of regional employment.

Read the full Aither report here .

Sources: ABC , NFF

Navigating the New Landscape of Bargaining and Agreement-Making

Wed, 23 Oct 2024 21:50:51 GMT

In a changing regulatory environment, it’s essential for our partners in agriculture and rural industries to stay updated on recent legislative changes that impact bargaining, agreement-making, and working conditions.

The Secure Jobs, Better Pay Act, Closing Loopholes Act, and Closing Loopholes No. 2 Act, effective from July 1, 2024, have significantly changed the bargaining and agreement-making process for employers and employees.

Here’s what you need to know to ensure compliance and maintain a positive working environment.

What Do the Changes Entail?

The Secure Jobs, Better Pay Act, along with the Closing Loopholes Acts, introduces important updates aimed at strengthening worker entitlements and simplifying the bargaining process. These laws overhaul how enterprise agreements are negotiated and enforced, focusing on correcting historical power imbalances and promoting fair practices within the agriculture sector.

One key change is the requirement for a more transparent and participatory bargaining process. Employers must provide employees with detailed information about proposed changes, ensuring everyone is well-informed before negotiations begin. This leads to agreements that are both legally compliant and beneficial for all parties involved.

The Closing Loopholes Acts aim to close gaps that previously allowed for the undermining of worker rights. This includes misclassifying employment and misusing casual or contract labor to bypass entitlements. By tightening these regulations, the Acts ensure that all workers receive the benefits they are entitled to, promoting fairness.

Stronger regulatory oversight is a key aspect of these reforms. The Fair Work Commission (FWC) now has enhanced authority to enforce compliance, ensuring that violations are promptly addressed. This creates a more reliable and equitable system for all stakeholders.

Key Highlights

Structured Bargaining: Employers must transparently engage with employees during negotiations, providing detailed information about proposed changes to build trust and understanding.
Closing Loopholes: New protections ensure fair compensation for all workers, including those in regional and rural areas, promoting a stable and satisfied workforce.
Enhanced Enforcement: The Fair Work Commission (FWC) has increased powers to address non-compliance quickly, fostering a fair environment for employers and employees.

Why It Matters for Rural and Agricultural Businesses

Safeguarding Your Workforce

In agriculture, your workforce is your most valuable resource. Protecting employee rights under the new legislation not only meets legal requirements but also reflects a commitment to ethical employment practices. This can lead to increased job satisfaction, as workers feel secure and valued, which can enhance engagement and productivity.

Ensuring Legal Compliance

Compliance is about more than avoiding penalties; it’s about building a culture of trust. Familiarising yourself with these changes helps align practices with legal expectations and strengthens your reputation as a responsible employer. Staying informed reduces the risk of disputes and other legal issues that could disrupt your operations.

Fortifying Resilience

Adapting to these legislative changes positions your business for long-term resilience. Fair practices lay the groundwork for stable employer-employee relationships, which are essential during challenging times. Upholding high standards can enhance your reputation in the agricultural sector and improve your business’s adaptability and competitiveness.

Practical Steps for Implementation

Use this opportunity to review your current enterprise agreements. Ensure they meet the new legislative requirements and make necessary amendments to avoid compliance issues. Regular updates help address emerging needs and demonstrate your commitment to fair working conditions.

Regularly communicate with employees about these changes to ease the transition and strengthen relationships. Consider holding informational sessions and inviting feedback to create a collaborative environment. This approach boosts morale and facilitates smoother implementation of new regulations.

You should also utilise the updated resources from Fair Work Australia. Engaging with these tools can provide necessary guidance to ensure compliance and promote best practices.

Sources: Fair Work Ombudsman , Fair Work Commission

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Aussies Need to ‘Turnip’ their Intake of Vegetables

Wed, 09 Oct 2024 15:25:11 GMT

It seems the decline of free-to-air TV, and the subsequent lack of iconic McCain’s advertisements ( The rains are ‘ere!) have correlated with a downturn in Australians getting their 5 daily serves of vegetables.

The Australian Bureau of Statistics says only 6.5% of Australians are eating enough vegetables per day, with most eating less than two serves.

Health factors aside, the nation’s bad food habits are affecting farmers.

The ABC has recently reported that the “downward trend in vegetable consumption” is negatively affecting growers, noting that many are “already doing it tough due to economic conditions and other industry pressures”.

Peak horticulture industry body, AusVeg, recently released their 2024 Vegetable Industry Sentiment Report – warning that the Australian vegetable, potato and

onion industry is facing a range of severe operating challenges.

The report found that 1 in 3 growers are considering leaving the industry in the next 12 months. An exodus that will cause severe issues to Australia’s food security. It also reflected the industry’s concern, with 50% of growers indicating that they were financially worse off than they were 12 months ago, and 28% believing they would be financially worse off by June 2025.

Survey participants cite a lack of operating profit, input cost increases, poor retail prices, increased cost of labour, and compliance burdens driving their decision about whether to leave the industry.

98% of fresh vegetables sold in Australia are grown in Australia, so it’s not a leap of faith to believe that an increase in consumption would help the industry.

AusVeg’s report indicates that increasing vegetable consumption by just one serve per person per day has the potential to achieve a $3.3 billion net vegetable supply chain economic benefit.

Addressing Australia’s vegetable consumption problem starts right on the farm. Without initiatives to address public understanding of their value and benefits, we’re risking the sustainability of our communities.

References: ABC , Australia Bureau of Statistics , AusVeg

Agribusiness Employment Update Oct 2024

Wed, 09 Oct 2024 09:28:23 GMT

The Australian agriculture industry is evolving at a rapid pace, and keeping up with employment trends is more important than ever for employers and candidates alike. At The Lucas Group, we are dedicated to helping agribusiness navigate this dynamic landscape by providing insights and strategies to secure top talent and stay ahead in the competitive market.

Here’s what we’re seeing in the latest employment trends and how you can adapt to attract and retain the right people for your business.

What Drives Today’s Agricultural Workforce?

The motivations of today’s workforce extend beyond just salary. While compensation remains a critical factor, recent data from SEEK reveals that candidates in agriculture are increasingly prioritising work-life balance and a positive working environment. This shift reflects a broader trend in which employees are seeking roles that align with their personal values and lifestyle goals.

1. Work-Life Balance: A Growing Priority

Many candidates are looking for employers who recognise the importance of maintaining a healthy balance between their professional and personal lives. Agribusinesses that offer flexibility can position themselves as attractive employers. Here are some ways to support this balance:

Flexible working hours : Offering the ability to adjust work schedules.
Remote work options : While not always possible, where it is, it’s highly valued.
Generous leave policies : Ensuring that employees have adequate time off.
Support for family commitments : Recognising the importance of family life, particularly in rural areas.

2. Positive Working Environment: A Key Differentiator

Workplace culture and physical environment play a major role in employee satisfaction. Candidates are drawn to workplaces that foster positive interactions and offer room for growth. To cultivate this:

Ensure safe and comfortable conditions in the field and office.
Promote a supportive team culture that encourages collaboration and respect.
Invest in career development opportunities , enabling employees to grow their skills.
Maintain clear communication and strong leadership to create an environment where everyone feels valued.

Adapting Recruitment Strategies for Success

Attracting and retaining top talent requires a thoughtful approach to recruitment, especially in today’s competitive market.

1. Competitive Compensation Packages: Benchmarking for Success

While SEEK’s data shows that salaries in certain agricultural roles are rising, many employers still aren’t meeting market expectations. Regular benchmarking can ensure your compensation packages remain competitive. Additionally, consider:

Performance-based bonuses or incentives to reward achievements.
Offering benefits like health insurance, retirement plans , or perks that align with employee needs.

2. Flexibility in Candidate Requirements: Casting a Wider Net

Many employers are looking for “unicorn” candidates—those who meet every requirement on the list. This narrow approach can limit your talent pool. Instead, focus on:

Core competencies and skills that can be developed on the job.
Being open to candidates from diverse backgrounds who may bring fresh perspectives and experiences.
Providing training and development to fill any skills gaps and allow new hires to grow into their roles.

3. Articulating Your Mission: Purpose-Driven Careers

In an era where employees want to feel a sense of purpose, agribusinesses with a clear mission and values stand out. Candidates are more likely to be attracted to companies that:

Have a clearly articulated vision and set of values .
Demonstrate commitment to sustainability and ethical practices in their operations.
Show how individual roles contribute to a broader mission , helping employees feel connected to something bigger than themselves.

Enhancing Your Offer: Beyond Salary

A competitive salary is essential, but it’s often not enough to set your company apart. Consider enhancing your benefits package to appeal to top candidates:

Professional development opportunities : Help employees advance their careers.
Mental health and wellness programs : Support their well-being, which in turn boosts productivity.
Employee recognition schemes : Celebrate achievements and milestones.
Sustainable workplace initiatives : Many candidates value eco-conscious practices in their employers.

Streamlining the Hiring Process: Speed is Key

In a fast-paced job market, efficiency can make the difference between securing a great candidate or losing them to a competitor. A streamlined hiring process ensures you don’t miss out:

Respond promptly to applications.
Keep candidates informed throughout the process —transparency goes a long way.
Be ready to make quick decisions when you find the right fit.
Leverage technology to simplify the application and interview processes .

Broadening Your Search: Go Beyond Local Talent

While many candidates in the agriculture sector still come from local areas, limiting your search geographically may cause you to miss out on great talent. To cast a wider net:

Advertise roles nationally or even internationally .
Consider offering relocation assistance to attract top candidates willing to move.
Use online platforms and social media to reach a broader audience of candidates with the right skills.

Positioning Your Business for Success

By understanding these evolving candidate preferences and adopting proactive recruitment strategies, agribusinesses can position themselves as employers of choice in a competitive market. Not only will this approach attract top talent, but it will also build a workforce that is engaged, motivated, and aligned with your company’s mission and values.

At The Lucas Group, we are here to help you navigate these changes and secure the best people for your agribusiness. Get in touch today to learn how we can assist in building a brighter future for your team.

Australian Agriculture Set for Surge as Global Demand Fuels Growth

Wed, 04 Sep 2024 10:13:32 GMT

The Australian Bureau of Agricultural and Resource Economics (ABARES) released its latest forecasts on Tuesday, forecasting a 4% rise in agricultural production gross value.

The ABARES Agricultural Commodities and Crop Reports show significant growth in the sector, from $82.5 billion in 2023-24 to $86.2 billion in 2024-25, the third highest result on record.

Executive Director of ABARES, Dr Jared Greenville, said this forecast shows production value across agriculture, fisheries and forestry reaching $92.1 billion in 2024-25.

These newest figures bode well for Ag2030’s goal of delivering a $100 billion industry by 2030.

Global Demand Driving Red Meat

An increasing appetite for Australian red meat in the United States and Middle East is driving growth in the agriculture sector, with output expected to reach a new record.

“Demand for our meat exports is really having a big impact on our meat and veal and our sheep meat prices, so we’re seeing that translate to farm gate prices,” Dr Greenville said.

“Red meat exports are performing well in the US and Middle East,” Dr Greenville said.

“We’re also seeing increased trade flows with China across various commodities, following improvements in market access.”

The increase in livestock and livestock product export values is being driven by record high values of beef and veal exports to the United States, sheep meat exports to the Middle East, and lamb exports to the United States.

Production Values Not All Sunshine

The gross value of crop production is forecast to rise in 2024–25 ($760 million higher) as higher domestic production more than offsets falling prices.

Crop export values are expected to fall, driven by both lower export volumes and declining global prices across major crop commodities. However, Australian winter crop production volumes are forecast to rise by 17% and are set to drive higher values.

“We have seen more favourable seasonal conditions across large parts of the country, easing input prices, and higher livestock prices supporting farm incomes,” Dr Greenville said.

“However, unfortunately not all farms in all regions are expecting to see an improvement.

“Crop production across Australia has been driven by New South Wales and Queensland, and better than expected seasonal conditions in Western Australia.

“But unfavourable conditions in north and western Victoria and most of South Australia following below average winter rainfall have resulted in lower than expected crop production.”

This year has seen less carry-over stocks of grain available for export in comparison to the past two years which is driving a slight fall in export value, despite production still sitting comfortably as the third highest on record.

Profitability for both broadacre cropping and livestock farms is forecast to improve in 2024–25 but remain below long-term averages in real terms. There is a positive story, though, with the average cash income for those operations rising by 64 per cent to $192,000 per farm.

Horticulture Holding up Growth Projections

Horticulture values are expected to increase to a record $17.8 billion, reflecting improved growing conditions, high water availability and easing input pressures.

“The horticulture industry is continuing to showcase its resilience as it maintains its forecast of record-breaking production values,” said Dr Greenville.

The projected gross value of horticulture production is set to be $330 million higher than earlier forecasts in the June 2024 Agricultural Commodities Report.

The increase in the value of horticulture production is being driven by higher yields for fruit and nuts and world demand increasing in high value markets like China, Japan, and Korea.

Growing Production Value Ahead

The forecast for total farm production values in 2024–25 has been revised up by around $2.6 billion from the June 2024 Agricultural Commodities Report.

“We’re expecting to see the price for cattle and sheep increase compared to last year, leading to this significant improvement in farm incomes,” Dr Greenville said.

“The ABARES Commodities and Crop Reports tell a positive story for Australian agriculture, capitalising on demand for our quality products.”

Key Points

Gross value of agricultural production forecast to rise by 4% to $86.2 billion in 2024–25.
Livestock and livestock product production values to increase driven by strong global demand.
Crop production values to rise despite lower global grain and oilseed prices.
Agricultural exports to be $68.5 billion in 2024–25, with increased livestock values.
Input pressures expected to ease in 2024–25 supporting a rebound in farm incomes in some regions.

Sources: ABARES September 2024 Agricultural Commodities Report , ABARES

Right to Disconnect Laws: What You Need to Know

Thu, 29 Aug 2024 10:33:45 GMT

The right to disconnect is here for Australian employees of non-small businesses have now come into effect.

The new rules, part of sweeping workplace legislation changes , mean that eligible employees will have a right to ignore work communications outside of work hours.

So what does that mean?

What is the right to disconnect?

The “right to disconnect” means that employees will have the right to refuse contact outside their working hours unless that refusal is unreasonable. Employees will be within their rights to refuse to monitor, read or respond to contact from an employer or a third party (for example, work-related contact from clients or members of the public).

Who does the new law apply to?

It applies to all Australian businesses with over 15 employees, including associated entities of the employer.

What about small businesses?

The right to disconnect for employees of small businesses will come into effect on August 26, 2025.

So employers can’t contact their staff outside of hours at all?

The law will not restrict managers from contacting employees, be it sending an email, Teams message or call. But, it does give employees the right to refuse to monitor, read or respond to contact from their employer outside work hours unless that refusal is deemed unreasonable.

For example, a manager can send an email after work hours but the employee is not obliged to respond unless it is deemed ‘reasonable’ for them to do so.

Example: Employee is compensated for reasonable out-of-hours contact
Elizabeth is an associate at a medium-sized architecture firm where she usually works 8.30 am to 5 pm.

Elizabeth has been asked to fill in for her manager who is taking 3 months’ leave. During this period, Elizabeth will need to lead the delivery of a project for a major client. She is receiving extra pay while acting in her manager’s role.

Her supervising partner, Devi, has let Elizabeth know that a reasonable amount of out-of-hours contact and work will be required during her acting period to deliver the project. She is also told that this has been factored into her higher pay.

Devi gives her a copy of the firm’s policy on out-of-hours contact and asks if she has any questions.

In her second week in the role, Elizabeth leaves work at 5 pm. Shortly after, Devi finds out that Elizabeth’s team needs to urgently provide the client with additional documents for the project by 10 am tomorrow. It will take around 3 hours to prepare the documents. Devi tries to call Elizabeth on her personal mobile and sends her a text message explaining the situation.

When is the employee’s refusal unreasonable?

The employee’s refusal to monitor, read or respond to contact or attempted contact will be unreasonable if the contact is required by law.

If the contact is not required by law, other factors will need to be considered. These factors could include:

the reason for the contact
how the contact is made and how disruptive it is to the employee
how much the employee is compensated or paid extra for:
being available to perform work during the period they’re contacted, or
working additional hours outside their ordinary hours of work
the employee’s role in the business and level of responsibility
the employee’s personal circumstances, including family or caring responsibilities.

Take the example from above, where Devi is trying to contact Elizabeth about an urgent, time-sensitive issue.

Elizabeth doesn’t answer the calls as she’s about to go to the gym and then run some errands. She reads the full message at 8 pm but decides that it’s too late to respond to Devi. Based on the circumstances, Elizabeth’s refusal to monitor or respond to Devi’s contact could be unreasonable.

What are the penalties?

If an employee raises concerns regarding an employer’s continuous contact out of work hours, the employer could receive a fine of up to $18,780 for an individual or $93,900 for a body corporate.

Should hours & expectations be set?

The Fair Work Ombudsman is encouraging employers and employees to discuss out-of-hours contact and set expectations that suit their situations.

“We encourage workplace participants to educate themselves on the right to disconnect and take a commonsense approach to applying it within their workplace,” Fair Work Ombudsman, Anna Booth, said.

“Like most employment matters, any dispute should first be discussed and sought to be resolved at the workplace level.”

What internal policies, procedures and documents need to be reviewed and updated?

Updates to your policies and procedures documents should be a priority. Internal flexibility arrangements and work technology policies might need to be amended to accommodate the new right-to-disconnect laws. Alternatively, your organisation might need a specific policy to reflect expectations for out-of-hours contact.

Position descriptions for current and upcoming employees may also need to specify your out-of-hours expectations.

The Lucas Group can assist you with all your HR compliance and documentation. We offer services designed to help agricultural organisations identify risk areas and ensure compliance with Australian legislation. We can provide HR auditing and documentation to make sure your agribusiness’s policies and procedures are working for you and setting clear expectations under

current Australian law.

If you need assistance reviewing or implementing workplace policies and position descriptions, reach out to our team via resume@lucasgroup.com.au.

Sources: Fair Work Ombudsman , Right to Disconnect Factsheet , Right to disconnect begins today – Media Release

Australia Steps Up the Fight Against Fire Ant Invasion

Tue, 27 Aug 2024 10:50:35 GMT

Picture this: you’re out checking your crops on a sunny morning, and suddenly, it feels like your pants are on fire. That’s the reality fire ants are bringing to our doorstep. These tiny invaders are finding our nation all too welcoming, sparking dire warnings and massive eradication efforts.

The Unwelcome Guests

Fire ants, originally from South America, are an aggressive invasive species with an excruciatingly painful sting. First detected in Brisbane in 2001, these tiny invaders have found Australia to

be an ideal new home. With no natural predators and a climate that suits them perfectly, fire ants have the potential to spread across 95% of our vast country.

These resilient pests are masters of adaptation. They can spread both above and below ground, fly up to 5 kilometres, and even form rafts to cross bodies of water.

Warnings from an Infested USA

Dr. Robert Puckett, assistant professor and extension entomologist at Texas A&M University, has been following Australia’s efforts to eradicate fire ants since they were discovered in Brisbane 23 years ago. In a recent visit to Australia, Dr. Puckett warned that “some of the densities are approaching what we see in Texas on pasture land.”

More than 40 million people in the US live in areas infested with red imported fire ants. Around 14 million are stung every year, with about 6,000 suffering from anaphylaxis.

Dr. Puckett outlined several fundamental ways that life changes for humans when RIFA (Red Imported Fire Ants) move into an area:

You begin to constantly survey your surroundings. After your first sting, you become immediately tuned into observing mature colonies and avoiding them.
You bait infested private property every year; many landholders in America fence off farmhouses to treat for ants while letting them rage across paddocks containing livestock.
You no longer walk around barefoot.
You change how you store agricultural products.
You always wonder if materials laying around the yard, like firewood, have fire ants under them.
You build footpaths and buffers on private property.
Schools hire certified Integrated Pest Management personnel specifically to manage fire ants.

Dr. Puckett’s observations reflect a grim reality, one he echoed in Texas Monthly last year: “The fire ants themselves haven’t changed that much. But our response to them has evolved. They’ve just become part of our reality.”

Threatening Our Livelihoods and Lives

The potential impact of fire ants on Australia’s ecosystem and economy is immense. Studies predict significant population declines in our native wildlife, with 45% of birds, 38% of mammals, 69% of reptiles, and a shocking 95% of frogs in affected areas.

The Invasive Species Council has issued dire warnings, noting that if fire ants are not eradicated, the impact of these tiny pests could surpass the combined damage done each year by feral cats, wild dogs, foxes, camels, rabbits, and cane toads.

Fire ants pose a direct threat to rural communities and agricultural output. They attack livestock, feast on the tender growth of citrus, cucumber, eggplant, and sweet potato crops, and can halt or damage harvest equipment with their mounds.

And let’s not forget the damage they can cause to our infrastructure, nesting under foundations and disabling electrical equipment.

Biosecurity analysts told a recent Senate inquiry that Australia could lose 2.8% of its GDP to fire ants – an economic hit equivalent to “half a Covid” every year. In the United States, where

fire ants have spread, they cost industry and the agriculture sector a staggering $7 billion annually.

“Eradicating fire ants is a formidable challenge that requires a united community effort,” says Ashley Bacon, Executive Program Director of the National Fire Ant Eradication Program.

“If we fail, life in Australia will change — backyard cricket, picnics in the park, and walking on the grass without shoes could become a memory.”

The Fight Against Fire Ants

Australia is not standing idle. A Senate report has provided 10 recommendations to contain and eradicate fire ants, and The National Fire Ant Eradication Program (NFAEP) is actively working to wipe out fire ants from Australia by 2032.

Fire ant biosecurity zones are in place and apply to anyone handling materials that can carry fire ants, such as soil, baled materials, mulch, manure, quarry products, turf, cotton, and potted plants.

“Everyone, from individuals to industry to governments, has a crucial role to play in eradicating fire ants, and it is important we take this threat seriously,” says Mr. Bacon.

“We need to work together to secure a future free of fire ants.”

Learn more about fire ant eradication at the National Fire Ant Eradication Program’s website here .

Photo Credit: National Fire Ant Eradication Program

Sources: Farm Online , Senate Standing Committees on Rural and Regional Affairs and Transport – Red Imported Fire Ants in Australia , Invasive Species Council , National program set to wipe out fire ants by 2032 – NFAEP , National program intensifies efforts to combat fire ants – NFAEP , Texas Monthly

3G Shutdown Delayed Among Major Safety Concerns for Regional Australia

Thu, 15 Aug 2024 11:21:00 GMT

Telstra and Optus have delayed their 3G shutdown, announcing yesterday that the new date for 3G service disconnection will be 28 October 2024.

A media release from both telcos said they were responding to concerns raised about some devices’ comparability with the 4G network, including users not able to call the emergency triple zero number after the 3G switch off, even on some 4G mobile phones.

Together, they announced that the extra time would be utilised for one final push to raise widespread public awareness about the impending closures.

Telstra originally planned to switch off its 3G network at the end of June, then delayed until the end of August, which was when Optus was also set to close its network.

Government & Peak Bodies Call For 3G Shutdown Delay

On August 13th, the Australian Communications Consumer Action Network (ACCAN) issued a press release urging Communications Minister Michelle Rowland to use her discretionary powers to postpone the 3G shutdown, citing concerns about public safety.

The Senate Rural and Regional Affairs and Transport References Committee released an interim report recommending the postponement of the 3G network shutdown, scheduled for the end of the month.

The committee’s report, released on August 1st, advised the Minister for Communications to promptly engage with Telstra and Optus to delay the shutdown until they can demonstrate that the 4G network will offer coverage equivalent to or better than that provided by the 3G network.

The Senate committee’s report was well-received by the Australian Chamber of Commerce and Industry (ACCI). ACCI CEO Andrew McKellar noted, “It appears that much of the equipment that businesses use that relies on 3G had previously been overlooked.”

Who Will The 3G Shutdown Affect?

Telstra and Optus have stated that closing 3G is necessary to free up spectrum for the 4G and 5G networks.

Closing 3G will impact 3G and some 4G capable devices. The Senate Rural and Regional Affairs and Transport References Committee report found that up to 77,000 mobile phone users would be unable to call triple zero emergency services when the nation’s 3G networks are switched off.

The ACCI gave testimony to the committee noting that many businesses still use equipment that relies on the 3G network — including EFTPOS terminals, industrial routers, tracking equipment on fleet vehicles and costly surveyors’ equipment which would need to be replaced.

A personal submission to the committee’s inquiry noted that, due to the 3G shutdown coverage in their area had reduced and they had to upgrade technology at significant personal expense.

The biggest concern was for some 4G phones, which are hardwired to rely on 3G circuit switched for emergency calls. The Department of Infrastructure, Transport, Regional Development, Communications and the Arts submission stated that there may be over 300,000 of these devices in circulation.

Mobile network operators also suggested that the are around 900,000 3G devices (both mobile and non-mobile) that will be affected by the shutdown of the 3G network. Of these, nearly 380 000 are mobile devices that are either 3G only, or 4G non-VoLTE (that is, use 4G for data, but rely on 3G for voice calls) and 4G VoLTE (that is, rely on the 3G network to make an emergency call).

There are also close to half a million non-mobile devices that will not function once the 3G network is shutdown, including water and electricity meters, farming monitoring and diagnostic equipment, medical devices, emergency phones in elevators, in addition to safety and asset tracking devices.

Delay Welcomed by Industries Australia-Wide

The announcement of the 3G shutdown delay has been welcomed by several industry bodies and advocacy groups.

The National Rural Health Alliance welcomed the delay saying the impact of the shutdown would be amplified for people living in regional and remote areas due to the limited availability of healthcare services and their heavy reliance of 3G-enabled medical and other devices.

“This acknowledges that 7 million people have been listened to, allowing more preparation time and support where needed,” said chief executive, Susi Tegen, who represents health professional organisations, service providers, educators and students.

The delay’s announcement was also welcomed by ACCAN, with CEO Carol Bennett saying that the joint announcement showed that the Minister and the major telcos were serious about the health and safety risks of the shutdown of 3G networks.

“While the shutdown needs to happen and the 5-year timeframe should have been adequate, we currently face very serious risks to health, safety and business continuity. This extension gives us a final opportunity to reduce these risks and ensure Australians are ready for a post-3G communications landscape,” Ms Bennett said.

The National Farmers’ Federation (NFF) President, David Jochinke, said while people now had until October 28 to prepare, it was important they didn’t leave it to the last minute.

“This is not the time to take a ‘she’ll be right’ attitude. I urge people to check their devices urgently and make sure they are compatible with the 4G and 5G networks,” he said.

NFF CEO Tony Mahar also stressed the importance of immediate action.

“The time for action is now. We are urging farmers, families and all those living in rural Australia to check any and all technology they think may be affected as soon as possible, to avoid adverse consequences post-shutdown,” Mr Mahar said.

How to Check If Your Phone Will Work When 3G is Turned Off

The closure will impact all 3G and some 4G capable devices, including those that aren’t VoLTE or 700Mhz enabled, or handsets hardwired to use 3G to call triple zero.

If you are not sure if you’re impacted, text the number ‘3’ to the phone number 3498 and the response will let you know if you need to take action.

Alternatively, visit www.3gclosure.com.au for more information.

Sources: NFF , NFF , ACCAN , ACCAN , Telstra , Senate Standing Committees on Rural and Regional Affairs and Transport , Critical Comms , ACMA

A Guide to Agribusiness Retention Strategies

Thu, 15 Aug 2024 11:03:25 GMT

Employee retention is the cornerstone of any successful agribusiness. The agricultural industry faces unique challenges, from unpredictable work conditions to remote locations. Keeping skilled employees in these settings is vital for the ongoing prosperity of rural Australia.

Understanding the Root Causes of Employee Turnover

Employee turnover can be costly and disruptive, especially in agribusiness, where specialised knowledge and experience are key. Here are some common reasons why employees might leave:

Salary dissatisfaction – When employees feel their pay doesn’t reflect their worth, they often start looking for other opportunities.
Limited growth opportunities – If employees don’t see clear pathways for advancement, they might seek better prospects elsewhere.
Work-life balance challenges – The seasonal demands and long hours in agriculture can lead to burnout. Balancing these work pressures with personal life can be tough.

The Building Blocks of Retention

To retain top talent in agribusiness, it’s important to create an environment where employees feel valued and motivated. Key factors in retention include:

Competitive compensation – This is non-negotiable for keeping employees engaged and satisfied.
Career growth – Employees need to see a clear path for advancement within the company.
Flexible work arrangements – These are crucial for helping employees manage their personal lives better.
Positive workplace culture – A supportive culture fosters loyalty and encourages teamwork.
Clear communication – Keeping everyone informed about the total value proposition aligns employees with company goals.

Counter-Offering a Resigning Employee

When a valued employee resigns due to pay dissatisfaction, offering a counter-offer—like an immediate raise—can seem like a quick fix. But it’s important to weigh the pros and cons.

While a competitive salary can help retain a key team member and show that you value their contributions, it may not address underlying issues. An honest conversation about their reasons for leaving is essential. This way, you can ensure that the offer is part of a broader plan to address their concerns. This approach builds trust and demonstrates a commitment to their long-term career development.

Show Me the Money

Let’s face it- in agribusiness, like in any industry, money talks. Competitive compensation is crucial for keeping top talent. When employees feel fairly paid for their hard work and specialised skills, they’re more likely to stay. Regular salary benchmarking ensures your compensation packages align with industry standards, showing your team that their contributions are valued.

Strategic salary increases tied to clear milestones—like skill development and performance—can foster long-term loyalty. When employees see their growth reflected in their pay, they stay motivated and committed to your business’s success.

Sometimes, you can’t wait for annual reviews. Out-of-cycle salary increases recognise exceptional contributions on the spot. This helps you keep top performers from being lured away by competitors. Balancing these increases ensures your team feels valued and fairly compensated, which builds trust and long-term commitment.

Rewarding Excellence Through Structured Bonus Systems

Bonuses are a great way to recognise hard work and align employees with company goals. A well-designed bonus system can drive performance and motivate employees. However, these systems need to be tailored to your unique needs and challenges.

At the heart of a successful bonus system is performance-based rewards. In agribusiness, where results can be influenced by weather, market prices, and crop yields, bonuses should reflect these realities. By establishing specific performance metrics, employees know exactly what they need to achieve. This clarity motivates them to perform at their best and fosters a sense of fairness since rewards are based on measurable outcomes rather than subjective criteria.

More Than Just Pay

Sometimes, keeping top talent in agribusiness involves more than competitive salaries. Employees also want opportunities for advancement, a positive company culture, and a healthy work-life balance. By communicating your employee value proposition (EVP) you can assist your attraction and retention rates.

Creating a supportive company culture can also help boost morale and loyalty. Regular team-building activities, open communication, and recognising accomplishments help employees feel connected and appreciated.

Maintaining work-life balance is also crucial. Providing flexible schedules, especially during busy periods, and accommodating employees’ personal needs can prevent burnout and increase job satisfaction. By prioritising a comprehensive approach, you can create a workplace where employees are motivated to stay, develop, and contribute to the company’s success.

Want to dig deeper into retention strategies for your agribusiness? We’re here to help. Let’s chat about how we can support your team (and your profits) grow! Contact us today!

Collins to Cultivate New Role as Minister for Agriculture

Thu, 01 Aug 2024 11:42:09 GMT

A cabinet reshuffle in Canberra, sparked by the resignation of two senior ministers, has landed the Australian Agricultural sector with a new minister.

Tasmanian MP Julie Collins has been announced as the new Federal Minister for Agriculture, Fisheries and Forestry, with Murray Watt shifting into the role of Employment and Workplace Relations Minister.

The Tasmanian MP will remain Minister for Small Business but, unlike Minister Watt, will not be asked to also be Minister for Emergency Management.

Who Is The New Minister for Agriculture?

The Hon Julie Collins MP is the Federal Member for the Tasmanian seat of Franklin, the southernmost electorate in Australia. The division of Franklin consists of the Huon Valley, the City of Clarence, and part of Kingborough. It is classified as a Outer Metropolitan seat.

Collins became the member for Franklin in 2007 at 36 years old, with a resume consisting of various administrative positions for Tasmanian Labor MPs and state government departments. From 1998 to 2003 she worked in an administrative capacity for State Premier Jim Bacon.

She was also the State President of Young Labor in 1996, served as state secretary of the ALP from 2006 to 2007 and has a certificate in business administration.

Ms Collins, who lives on Hobart’s Eastern Shore, was shadow agriculture minister from January 2021 until being switched to the housing and small business portfolios two days after the federal election on May 23, 2022.

Ms Collins posted on social media that she welcomed the “great honour to serve as the Minister for Agriculture, Fisheries and Forestry and thank the Prime Minister for this new challenge”.

“Agriculture plays a vital role in our country, and our national economy continues to rely on a strong and diverse sector,” she said.

Supporting Minister Collins as Assistant Minister will be ALP Senator the Hon Anthony Chisholm (QLD), who also has roles as Assistant Minister for Education and Assistant Minister for Regional Development.

Murray Moves to Employment

Murray Watt’s 26-month stint as the nation’s Agriculture Minister is over, leaving a mixed legacy behind.

While Minister Watt has faced criticism from the industry, he is widely seen as a “gold performer” by his Labor colleagues. According to Farm Online, he was promoted partly due to his adept media performances and proven ability to publicly advocate for Labor’s positions.

One example of these differing perspectives is his management of the contentious ban on live sheep exports by sea. Critics argue that the ban is harmful to the agriculture industry and regional communities, while supporters commend it for emphasizing the party’s election promise.

Through social media, Minister Watt listed some of his achievements in the agriculture portfolio as strengthening Australia’s biosecurity system, opening new trade markets and increasing investment in long-term drought resilience.

He also said he was “privileged” to have worked with the Agriculture and Emergency Management sectors and “some incredible stakeholders” and that he was “honoured” to take on his new role to fight to “get more Australians into work and for workers to have better paid, secure and safer jobs”.

National Farmers Federation President David Jochinke said Minister Watt’s time would most likely be remembered for its heated conflicts with the sector – from live sheep, to water buybacks, to the biosecurity tax proposal and visa disputes.

“There’s no doubt we’ve seen some policies that have deeply impacted and enraged our sector,” he said.

“But we also acknowledge his partnership and willingness to work with the sector on sustainability, establishing the workplace tripartite working group, and delivery of enhanced funding for biosecurity. His commitment to normalising our trade with China and ensuring Australian agriculture didn’t end up with a bad deal in the EU free trade agreement will also be remembered well.”

Nationals Party Leader and former Minister for Agriculture, The Hon David Littleproud MP was slightly more blunt in his acknowledgement of the outgoing minister.

“Murray Watt has left a legacy of treating Australian farmers with contempt and ignoring their needs during his time as Agriculture Minister,” Mr Littleproud said.

“There won’t be too many farmers sad to see Murray Watt’s departure and if this Labor Government’s track record over the past two years is anything to go by, his successor won’t treat farmers much differently.”

Industry Reacts to New Federal Minister for Agriculture, Fisheries and Forestry

Industry bodies and spokespeople from across Australian agricultural sectors have welcomed Minister Collins and Senator Chisholm to the role, indicating their hope for a collaborative, commonsense approach.

National Farmers Federation President David Jochinke welcomed Minister Collins and Assistant Minister Chisholm to their roles, calling on them to work collaboratively with an industry that is of “enormous strategic importance”.

“We hope Minister Collins will be a champion for sensible policies to support and grow our farm sector,” Mr Jochinke said.

“We look forward to also working with Senator Chisholm and having that additional horsepower of an assistant minister in the portfolio.”

Grain Producers Australia (GPA) Chair, Barry Large, said the new combination of Agriculture and Small Business for Minister Collins makes sense, recognising that because farmers are also running businesses of different sizes and locations that face many challenges not limited to constants seasonal and market fluctuations.

“We welcome continued engagement and close collaboration to ensure this support is fair and equitable and pragmatic, and the voice of Australian grain producers is clearly understood and included in decision making and policy development processes,” he said.

GPA Interim Chief Executive Pete Arkle said Senator Chisholm’s experiences in government and his new portfolio combination will also be valuable in these processes of collaboration and listening to farmers about ways to solve these challenges we face – and to continue producing food and fibre sustainability and affordably, with more certainty.

NSW Farmers Association posited the change as presenting a fresh opportunity for the industry. President Xavier Martin said while the incoming Federal Agriculture Minister had a big task ahead of her, the portfolio was also a unique opportunity to drive positive change within the sector to keep farmers farming.

“While there’s much to be done, by working together with the new Minister’s team, there’s much we can do to make a positive difference within the industry and the rural communities that rely on it,” noted Mr Martin.

Littleproud Holds Nothing Back on New Minister for Ag

The Hon David Littleproud MP said the appointment of a new Agriculture Minister won’t change the Albanese Labor Government’s litany of disastrous decisions that have impacted the agricultural sector in just two years.

“During the past two years, Labor’s agenda has increased taxes, cut funding, abolished industries, and failed to stand up for farmers, which is driving up the cost of living for Australian families,” Mr Littleproud said.

“Julie Collins won’t change anything because agriculture is seen as a stepping stone into cabinet for Labor members and Minister Collins will toe the line.

“When Julie Collins was last Shadow Minister for Agriculture, she visited farmers outside Tasmania on two occasions over 18 months and could not detail one Labor policy in the election debate.”

“Julie Collins has no interest in agriculture and has been punished for her poor performance in housing, so now not only farmers will pay but all Australians will pay through higher prices for their food and fibre from a government uninterested in agriculture.”

Mr Littleproud called on the incoming Minister for Agriculture, Fisheries and Forestry to “step up in Cabinet and start reversing the wrongs of the past two years”.

He listed 10 priorities that he believes need to be addressed, including reinstating the live sheep export industry, scrapping Labor’s Fresh Food Tax, taking action against major supermarkets gouging farmers and families and bolstering biosecurity measures against threats such as the Red Imported Fire Ants and Varroa Mite.

Sources: Beef Central , NSW Nationals , NFF , GPA , NSW Farmers , Farm Online

China Blames Aussie Beef as Steroid Scandal Sizzles at Paris Olympics

Thu, 01 Aug 2024 11:27:25 GMT

China has blamed Australian beef for positive steroid tests returned by one of its female swimmers lodged two years ago, which have come to light at the Paris Olympics.

The New York Times has revealed that Tang Muhan, a member of China’s world-beating women’s 4X200m relay team, tested positive for the banned steroid metandienone two years ago.

Tang’s positive test, recorded within a few months of three other Chinese athletes from as many sports, was not publicly declared by China’s anti-doping agency (CHINADA) or its global regulator, the World Anti-Doping Agency (WADA).

After the NYT’s revelation, CHINADA responded that it had tested meat samples and found positive results for metandienone. Global media have reported that Chinese officials have suggested it was hamburger meat from Australia.

The World Anti-Doping Agency is now investigating “the circumstances, scale and risk of meat contamination with metandienone in China and other countries”.

According to the New York Times article, China, Citing Tainted Burgers, Cleared Swimmers in a New Doping Dispute [Paywall], China does not ever appear to have publicly disclosed its finding of food contamination in either case, as required under WADA rules.

Chinese authorities paused a hearing process after the positive tests in 2022, and began a wide-ranging investigation focusing on the possibility that the swimmers had eaten hamburgers made with beef from cattle that had been fed anabolic steroids. The inquiry included testing meat samples across the country, tracking beef imports to China from Australia and even conducting studies in which individuals were given contaminated meat and then tested to see what level of the banned substance was detected.

Ultimately, the investigation was unable to pinpoint the source of any potentially tainted meat.

Meat and Livestock Australia rebuffed the fresh claims the substance was present in Australian meat.

“Menthandienone is not used in any capacity in Australian beef production or in any veterinary medicine,” the statement said.

Sources: Farm Online , New York Times , Sky News

Bird Flu Continues to Wreak Havoc On Australian Poultry Industry

Wed, 17 Jul 2024 11:53:40 GMT

Australia-wide the effects of a significant avian influenza (bird flu) outbreak are beginning to be felt – from poultry professionals to punters.

Eleven farms have been infected with avian influenza across New South Wales, Victoria and the ACT since May 2024. All of these farms detected strains of H7 high pathogenicity avian influenza (HPAI), a highly contagious bird flu, causing a high mortality rate in production birds. While the H7 strains do not appear to transmit easily between humans it is causing devastation across farms, with over 1.8 million birds already destroyed.

The Australian government reports that a nationally agreed response plan to control and eradicate HPAI is being implemented. Highlighting that the H7 virus rarely affects humans and that there are no food safety issues identified with infected chicken products.

Financial Support Lacking for Decimated Farms

Poultry business owners are facing a grim recovery period in the wake of the outbreak, with limited financial support available.

Linda Fahy of Agriculture Victoria’s south-west region stated that farmers impacted by emergency diseases can receive compensation for culling livestock. However, there is no further

government financial support available for businesses facing extended periods without income while their flocks rebuild.

“Unfortunately, disaster recovery funding arrangements don’t apply to biosecurity emergencies,” Ms Fahy said.

“There is no compensation for consequential loss, loss of market or production loss.

“Farmers and businesses might have individual [private] insurance arrangements including income protection.”

Infected farms are not only losing their stock but are also required to be quarantined for at least 3 months.

“Every farm is different, [quarantine time] depends on size and scale,” Dr Graeme Cooke, Victoria’s Chief Veterinary Officer, said.

“The first stage is to remove the infected birds and prevent the spread and then the farms go through a period of cleaning and disinfection — then they need to be empty for a period of time as well.

“The shortest possible time is three to four months, but in many cases, it may be much longer than that due to the scale of the operation required.”

Farmers are compensated by the state government for birds that are killed during the eradication and quarantine period. However, no assistance is available for lost production and business activity.

Concerns for Wider Bird Industry Spread

Bird shows have been cancelled across the East Coast as poultry fanciers and backyard breeders come to terms with the spread of the deadly avian influenza.

The Mudgee Poultry and Pigeon Club have cancelled two events this July, joining a growing list of cancellations.

Ian Birchall, secretary of the Mudgee Poultry and Pigeon Club, said he was worried about the potential for avian influenza to be found in a show bird, possibly leading to the euthanasing of all

birds at the event.

“There were 70 exhibitors at our last show and whether they’ve had their birds for one year or, like my mum who’s had the line there for 80 years … the club doesn’t want to put those people at risk,” he said.

The Central West Bird Club has also cancelled its annual expo and sale, which was scheduled for Forbes in three weeks.

In the Act, the Government has asked everyone in the Belconnen area to register their birds in an attempt to contain and monitor the spread. ACT Environment Minister Rebecca Vassarotti said a second ACT case was found by a pet chicken owner.

ACT Chief Veterinary Officer Kyeelee Driver said registration would establish how many domestic birds were in the area and where they were.

“We have acted quickly in response to this detection and believe there is a very low risk of spread to other poultry in the ACT from this site,” she said.

Bird Flu Affecting Breakfast Menus

Bird flu has affected fewer than 10% of Australia’s egg-laying hens but, some businesses have already started imposing limits on how many eggs people can buy.

Last month Coles limited egg purchases to two cartons per customer in all stores across the country except Western Australia. With Woolworths and Costco following suit.

McDonald’s restaurants around the country announced via social media in early July that it has temporarily shortened the hours of its breakfast service, in response to potential egg shortages.

H5N1 Threatens to Join Australian Outbreak

Compounding the confusion and strain of the current outbreak is the increasing possibility that the H5N1 strain of bird flu would reach Australia.

The Australian Centre for Disease Preparedness (ACDP) recently announced that the deadly strain that crosses species is ‘likely’ to arrive in Australia this spring. The H5N1 strain last caused pandemonium in 2005 when a large outbreak sprouted contingency plans worldwide.

More recently the H5N1 bird flu has been confirmed in more than 100 dairy herds across at least 12 states in the US, with the Colorado Public Health Department confirming human cases of the strain in poultry workers.

“…both globally, and in Australia, avian flu is having a significant impact,” said Dr Deborah Eagles, from the ACDP.

“This has now impacted all continents except for Australia, and that does include Antarctica and has caused deaths of poultry, wild birds, and a range of mammalian species. Both industry and government agencies in Australia across agriculture, health and environment are all preparing for the potential introduction of H5N1 into Australia.”

At the time of writing, none of the strains being detected around Australia have been the H5N1 strain.

Sources: Australian Broadcasting Corporation (ABC) , ABC , ABC , SBS News , outbreak.gov.au , Australian Department of Agriculture, Fisheries and Forestry , Agriculture Victoria , CNBC , The Conversation , McDonaldsAU Facebook

What is your Employee Value Proposition

Sat, 13 Jul 2024 12:02:20 GMT

A strong employee value proposition (EVP) is essential to attracting and retaining talent in the current candidate-short market .

Many agribusinesses haven’t had the opportunity to understand and see the value of having a strong employer brand and EVP offering. Your employer brand and EVP can help you find and retain the best people for your organisation.

75% of active job seekers consider an employer’s brand before applying for a job.

What is an EVP?

An EVP is everything your business does for employees, including salary, perks, culture, career development, rewards, and benefits

It’s the reasons an employee will list while they’re telling someone why they love working at their organisation.

How do we define our EVP?

Defining your EVP is a research-driven strategy that will help steer the direction of your agribusiness.

You’ll need to involve all staff in the EVP development. Their feedback will outline your current EVP and offer ideas.

Your EVP isn’t there to offer people cake; it should help your employees grow and develop. In return for a fulfilling and rewarding environment, they’ll help to create a high-performing culture.

How does an EVP attract the right people?

Strong EVPs attract people willing to go the extra mile for a company that’s willing to reciprocate (employer of choice). These people know that they will be rewarded and valued as a member of the team.

Letting potential new employees know your business values and offering is a huge drawcard in a candidate-short market .

Defining your EVP

Your Employee Value Proposition (EVP) needs to begin at home. Consulting your current team will give you a greater understanding of how your business is perceived.

By conducting anonymous surveys, you can source new ideas and get an accurate picture of employee needs.

Once you’ve got everything collated, you’ll be in the best place to understand what contributes to retention.

Promoting your EVP

Once you’ve defined your EVP, you’ll need to promote it. Make sure it’s circulated in-house so everyone knows what strategic direction you’re taking and what actions/changes you may be making.

Your EVP should be clear in your recruitment processes and onboarding of new employees.

The employee value proposition is the cornerstone of positive employer-employee relationships. It has the power to help engage and retain existing staff while also attracting new talent .

Australian Parliament Bans Live Sheep Exports, Igniting Industry Outcry

Wed, 03 Jul 2024 12:10:54 GMT

In a landmark decision that has sent ripples across the agricultural sector, the Australian Parliament has stamped its approval on a legislative amendment poised to terminate the live sheep export trade by May 2028.

Amidst a tumultuous backdrop of political manoeuvring and agri-political lobbying, the Labor’s Export Control Amendment (Ending Live Sheep Exports by Sea) Bill 2024 has polarised opinions, drawing intense criticism from within the agricultural industry.

Political Promises vs. Agricultural Realities

Agriculture Minister Murray Watt heralded the legislation as a major stride towards “animal welfare in Australia,” fulfilling a key election commitment. However, this governmental standpoint starkly contrasts with the dismay echoed throughout the farming community.

David Jochinke, President of the National Farmers Federation (NFF), communicated the industry’s shock, emphasising the investments and advancements made towards achieving leading animal welfare standards.

“Farming communities have been sold out for political gain, and they’re gutted,” Jochinke stated.

“The Government vowed to kill off the jobs of farmers, shearers and truckies in WA. Credit to them, they’ve executed that job with ruthless efficiency.

“Whether it was fixing the outcome of the Independent Panel or the House Inquiry, or backflipping on senate scrutiny and guillotining debate – the Government pulled out every trick to silence those affected.”

Economic Fallout and Community Impact

The economic statistics underscore the gravity of the situation. The live sheep export sector, notably vital to Western Australia’s economy, was valued at $77 million in 2022-23. With Australian sheep meat exports anticipated to soar to $5.1 billion by 2024-25, the impending ban casts a long shadow over the future of countless farming enterprises and rural communities.

Western Australian Senator Slade Brockman and Independent Senator David Pocock raised concerns with the legislation.

Pocock, recognising the bill’s controversial nature, flagged the absence of a Senate inquiry as “disappointing.”

Brockman said the industry had done “every single thing” that government had asked of it to correct animal welfare concerns since thousands of Australian sheep died of heat stress aboard the Awassi Express in 2017.

However, he said that it has fallen victim to an “ideologically-driven crusade”.

“Every bit of science, every bit of evidence that we have shows that this industry is not only deserving of surviving but deserving of congratulations,” he said.

Several Coalition Senators reiterated a promise by Nationals leader, David Littleproud, to overturn the ban if the Coalition wins the forthcoming federal election.

Unpacking the Broader Implications

The ramifications of this legislative turn extend beyond immediate economic distress, signalling worrying precedents for the agricultural sector at large.

“We now have a dangerously unscientific precedent that will be celebrated tonight by groups who want to shut down Australian livestock production. This isn’t just about live sheep. This government has just told every farmer in Australia to sleep with one eye open,” warned Jochinke

The Fight for Support and Future Steps

While the government has unveiled a $107 million package for industry transition, scepticism remains about its adequacy to cushion the blow of this significant change. Rural communities, already preparing for tough decisions, lament the lack of immediate federal support on the ground.

As the dust settles on this legislative chapter, the Australian agricultural community stands at a crossroads. Confronted with the challenge of navigating the economic, social, and ethical complexities this ban introduces, the dialogue between farmers, politicians, and animal welfare advocates continues to evolve.

The passage of the live sheep export ban marks not just the end of an era, but the beginning of a significant period of transition and adaptation for Australia’s agricultural sector, highlighting the delicate balance between progressing animal welfare and sustaining the livelihoods of those within the farming community.

Sources: Farm Online , Senator the Hon Murray Watt – Minister for Agriculture, Fisheries and Forestry , National Farmers Federation

How to Hire the Right Employee

Mon, 01 Jul 2024 12:17:14 GMT

People can make or break a business, so it’s crucial that you hire the right employee. However, making sure you build your team with people who will work well together can be tricky.

Where to look for the right employee

Gone are the days when a business could simply post a half-hearted ad on a job board and have the best candidates step forward.

These days, it’s far more likely that you will have to find the best candidate for your needs. 58 per cent of even the happiest employees are still open to new job opportunities. These “passive candidates” are often reached through recruiters and clearly defined, engaging job ads with simple application processes.

What to look for

What to look for in a prospective employee depends on your business and the role, but it’s always going to be important to assess a candidate’s knowledge, skill, experience, and personality. You should be considering their characteristics, soft or transferrable skills , and attitude – sometimes it’s easier to train someone with the right attitude than hire someone with years of experience in a role.

Interviewing to hire the right employee

It’s important to remember that job interviews go both ways. While you’re interviewing to see if someone will fit your expectations, a candidate is also interviewing you to see if you’ll fit theirs.

Starting an interview with a few icebreakers and a casual conversation can put both of you at ease. Simple questions like: “Did you have any trouble finding us?” or (if you’re regional) “How was the trip out?” are ideal conversation starters.

Your questioning technique will depend on your company and the position, but it’s always good to have some behavioural questions in the mix. Past behaviour can be a general indicator of future behaviour. These can be as specific or general as you like, depending on what you think will get the most informative result. Examples of these types of questions are:

“Tell me about a time you were in [insert situational example]. How did you solve/deal with it?”
“Describe a project you have implemented from start to finish. What were the issues you came up against? What strategies did you use to navigate these and what was the result?”

These questions are excellent if they’re framed with a specific problem that is relevant to your business and your employee’s success. Problem-based questions can make the candidate think strategically and enable you to see how well they can make decisions. These can cover subjects like:

Industry knowledge
Communication
Leadership
Strategic thinking
Business acumen
Personal attitudes

If you’re filling a c-suite or senior management role you should consider having a wide-ranging discussion rather than a question-based interview. This will help both of you determine the fit and ability levels required.

Top Tips for Interviewers

Start with small talk. Both interviewer and candidate can be on edge at the early stages of an interview so have an easy conversation until everyone seems relaxed.
Try to follow an 80-20 rule – managers only speak for 20% of the time and spend the other 80% listening.
Be prepared. Make sure you’ve read and understood the candidate’s resume and background.
Match questions to the skills and experience required.
Ask behavioural and problem-based questions.
Make the recruitment process and steps clear to candidates.

Australian Wine Exports to China Surge to $86 Million in First Month Post-Tariffs

Wed, 19 Jun 2024 12:27:52 GMT

Australia has already exported over $86 million worth of quality wine to China in just one month since the removal of duties on bottled wine .

The tariffs, which went as high as 218.4%, were initially imposed in March 2021 for five years, coupled with other trade barriers on Australian goods.

South Australian Wine Exports Race Out of the Gate

South Australian wine producers exported almost $80 million of wine to China in the first month since duties were removed. A staggering result, reflecting 92.1% of Australia’s total wine exports to China since March.

Minister for Trade and Tourism, Don Farrell, announced recently that, “More than 350 Australian wine producers and businesses have re-established exports to mainland China since duties were removed.”

“The re-entry of Australian wine into the Chinese market benefits both Australian producers and Chinese consumers,” he noted.

Government Working Group and Support on the Ground

In the wake of three years worth of trade disruptions, natural disasters and global reduction in demand the Australian Government established the Viticulture and Wine Sector Working Group. The working group aims to support the diversification of wine export markets, developing a nationally coordinated approach and advising on options to support the industry.

In response to feedback to the Working Group, a $3.5 million Grape and Wine Sector Long-term Viability Support Package has recently been announced. The package will support the long-term viability of the grape and wine industry and respond to the oversupply of red wine.

“I know how hard the past few years have been for wine producers across the country, so to see the successful return of this export market is fantastic for the future of the wine sector,” said Minister for Agriculture, Fisheries and Forestry, Murray Watt.

“But we also know there are some in the industry who are doing it tough who don’t export to China, and that’s why today we have announced this new package to support the long-term sustainability of the sector.”

The Wine Tourism and Cellar Door Grant Program has also been extended for another year. The program allows wine and cider businesses funding to help attract visitors to Australian wine regions and promote agri-tourism.

Under the program, wine producers can apply for grants of up to $100,000 on eligible cellar door sales made during the previous financial year.

“These are initiatives that industry has been consistently calling for through the working group consultations, and we are delivering on them,” said Minister Watt.

Chinese Premier Revives Wine Export Hope at Penfolds Magill

In a recent visit to Australia, Chinese Premier Li Qiang made a historic visit to Penfolds Magill Estate in Adelaide. A move that has heralded hope for Australia’s wine export market.

A LinkedIn post from Treasury Wine Estates (TWE) celebrated the visit, where Premier Li Quiang was joined by TWE CEO Tim Ford and Penfolds Managing Director, Tom King.

Premier Li’s delegation met with Australian winemakers and senior government officials, including Foreign Affairs Minister, Senator Penny Wong, Minister for Trade and Tourism, Senator Don Farrell, Minister for Agriculture, Senator Murray Watt, and South Australian Premier, Peter Malinauskas.

The group enjoyed a historic tour of Magill Estate led by Penfolds Chief Winemaker, Peter Gago, raising hope that the Australian-China wine trade would bounce back to $1 billion.

Sources: Minister for Agriculture, Fisheries and Forestry , Vino Joy News , Treasury Wine Estates LinkedIn

Wage Increase on The Horizon

Tue, 04 Jun 2024 12:51:11 GMT

The Fair Work Commission (FWC) has announced a wage increase for both the minimum and award wages by 3.75 per cent, in an announcement made on Monday 3 June.

From 1 July 2024, the new National Minimum Wage will be $24.10 per hour and $915.91 per week, based on a full-time, 38-hour working week. It is an increase of about $33.11 a week to the current minimum wage and will affect about 2.6 million workers. Overall, the FWC estimates the increase to minimum and award wages will affect “about a quarter of all Australian employees”.

“The increase of 3.75 per cent which we have determined is broadly in line with forecast wages growth across the economy in 2024 and will make only a modest contribution to the total amount of wages growth in 2024,” the commission said.

“We consider therefore that this increase is consistent with the forecast return of the inflation rate to below 3 per cent in 2025.”

In delivering its decision, the FWC said living standards, higher living costs and workforce participation were major considerations in determining the increase to the minimum and award wages.

“In determining this level of increase, a primary consideration has been the cost-of-living pressures that modern-award-reliant employees, particularly those who are low-paid and live in low-income households, continue to experience notwithstanding that inflation is considerably lower than it was at the time of last year’s review,” the commission said.

Unions Argue for Higher Increases In Line With Inflation

The Australian Council of Trade Unions (ACTU) had argued for an increase of 5 per cent to the minimum wage, and the federal government had pushed for an increase in line with inflation. However, they have welcomed the 3.75% increase.

“July will be a very positive month for Australian workers. Every working person will have significantly more in their bank accounts because of the Federal Government’s cost-of-living bonus through tax cuts, and for over 20% of the workforce, this 3.75% increase. This means that an entry-level retail or hospo worker will be $2,600 per year better off. A mid-level community sector worker will be $3,260 a year better off, and a forklift driver will be $3,170 better off,” said ACTU Secretary, Sally McManus.

Small Businesses Respond to Wage Increase

Luke Achterstraat, chief executive of the Council of Small Business Organisations Australia (COSBOA), noted that employers are already battling rising costs in a tough economic climate, warning that the wage increase may be passed onto consumers.

“It’s an extremely tough operating environment, the levy is really breaking for small business, energy, rent, insurance, [and] borrowing costs, and as the [Fair Work] commission said, productivity has been flatlining for a number of years now,” he told ABC News Channel.

“Unfortunately, the decision today will mean higher costs and more cost pressure for small businesses who are really struggling to churn out a profit and to remain in business at the moment.

“Small businesses will need to find a way to pass these costs on, that’s the reality.”

ACCI chief executive Andrew McKellar said the decision was “not in line” with economic outcomes, but isn’t a “significant inflation threat so long as productivity is addressed.”

“It is inevitable that businesses will need to pass increased costs through to consumers. Many small businesses are in a position where they simply cannot absorb any more,” said Mr McKellar.

The Australian Commerce of Chamber and Industry (ACCI) had called for a more modest increase around 2%, while the Australian Industry Group (Ai Group) had proposed a 2.8% increase.

Award Employees Also To Receive Increase

The National Minimum Wage increase will also apply to employees covered by an award. An industry-specific award covers most employees, including on-farm staff, administrative employees and employees within the horticultural industry, among others.

The increase of 3.75% will apply from the first full pay period on or after 1 July 2024.

References: Fair Work Australia , ABC , Australian Council of Trade Unions

Jailhouse Flock: Inmates Moo-ving up Production at Upgraded Dairy

Tue, 04 Jun 2024 12:38:06 GMT

Cadell Training Centre, a minimum security prison in South Australia, is making headlines with its impressive new dairy facility. Minister for Correctional Services, The Hon. Dan Cregan MP, officially opened the multi-million-dollar dairy and processing centre on May 22 2024, with the facility operational since January.

Located within a low-security prison farm in the Riverland the 16-bay, eight-a-side herringbone was officially opened on 22 May and has been in action since 22 January.

The old eight-bay walk-through dairy had been built in the early 1960s, with milking technology that hadn’t been upgraded since 1981.

“We milked in the old dairy in the morning and then moved into the new dairy in the afternoon. It was a great feeling,” said Industries Manager Marcus Wills, highlighting the seamless transition to modern technology.

“We’ve brought ourselves very rapidly into the modern day by commissioning a new 16-bay herringbone dairy and a new milk processing centre.”

Restorative Justice Meets Real-Life Farm Skills

Cadell Training Centre’s dairy plays a vital role in inmate rehabilitation. The hands-on experience fosters self-discipline and responsibility, crucial for caring for the welfare of animals. Beyond dairy, the farm focuses on citrus, olives, and community service, including the inmate-operated Cadell Fire Brigade.

The focus on restorative justice helps inmates gain valuable skills, earning certifications in horticulture, dairy production, and commercial cookery. This practical training is essential for their reintegration into society, providing them with real-world experience and qualifications.

High-Tech Dairy Development Worth Over $3 Million Boosting Production

The development cost over $3 million, with major investment into technological improvements on the farm.

The new facility utilises advanced monitoring systems to ensure cleaning and pasteurisation processes are carried out effectively. Temperature sensors, pressure gauges and automated monitoring software continuously track critical parameters to detect any deviations that could compromise food safety.

“The efficiency gains are huge. And all the modern technology is incredible. We have better plant, better equipment and we’ve noticed already that our raw cream has increased in quantity and quality immensely, with massive increases in quantity especially,” Mr Wills said.

“We are also equipped with an automated cleaning system that streamlines the cleaning process, to ensure thorough cleaning of equipment, pipelines and storage tanks, reducing the chances of contamination,” he continued.

“Design of the new facility centred around workflow and hygiene. Surfaces, equipment and materials are easily accessible which reduces the likelihood of bacteria build up and makes cleaning more efficient.”

Correctional Facilities Supplying Dairy to Fellow Inmates & Local Companies

The new dairy facilities enable Cadell Dairy to meet the growing demand from various correctional facilities and local cheese and dairy producers.

“Because of who we supply, our demand keeps increasing,” noted Mr Wills, explaining that the Cadell Dairy supplies milk to most SA prisons including Adelaide Women’s Prison, Yatala, Adelaide Pre-release Centre, Adelaide Remand Centre, Mobilong, and Port Augusta.

Cadell Dairy also supplies local cheese and dairy producers with excess raw milk. It is being sold to local cheese companies, such as Barossa Cheese Company or La Casa Del Formaggio. Their raw cream is currently sold to Barossa Cheese Company and Udder Delights. However, Mr. Wills has plans to start keeping some of the raw cream within the institutions and supply the kitchens.

They are also currently in discussions with discussions with Moo Premium Yoghurt about supply opportunities.

Production Skyrockets With New Facility

“In the old dairy, we’d struggle to meet orders over 36 15-litre vats per week. Now I need to find at least one more customer because we’re outstripping our previous supply. We’re averaging at 2,000 litres a day and we can see it rising to at least 3,500 litres a day come spring. And that will keep climbing as we build up the herd,” said Mr Wills.

“We are milking 115 at present with another 42 pregnant at the moment and expecting to drop within the next three months,” he said.

“Out of that group, there’s probably 30 heifers that will be dropping for the first time so that will increase our milking herd by another 30.”

“Since we’ve gone across, there’s been a massive increase in milk and cream production and that can only be put down to the new technology,” he said.

“In the old dairy, we were able to hold 6000 litres of raw milk but we can now hold 10,000L of raw milk and when we processed we could only retain 5000L of processed milk now we can retain 10,000L of processed milk.”

The Cadell Dairy has 137 in its milking herd. In the old dairy, milking took about an hour and a half. In the new dairy, the herd is milked in 45 minutes.

Sources: Stock Journal , Dairy Safe

What Does The 24-25 Federal Budget Mean For Agribusiness?

Tue, 21 May 2024 13:01:14 GMT

The 2024-25 Federal Budget has been released to mixed sentiment from the agricultural sector. While climate change and renewable energy initiatives were welcomed, industry groups have criticised the absence of new infrastructure and drought funding.

So, what did the budget deliver for Agriculture?

Future Drought Fund

The 2024-25 Federal Budget highlighted an allocation of $519.1 million from the Future Drought Fund over the next eight years. This funding includes $132 million to continue the eight drought resilience adoption and innovation hubs, $83.2 million for learning and development opportunities for farmers, and $36 million in support of farmers’ mental well-being.

National Farmers’ Federation President David Jochinke said that at a glance it would appear the biggest spending spree for agriculture was for the Future Drought Fund, only $42.2 million in new money.

Live Exports

Making headlines across the nation was the announcement that the biggest allocation of new funding for the sector allocated to shutting down the live sheep trade. The government announced that it will provide $107 million over five years to phase out live sheep exports by sea. The package aims to help the Australian sheep industry transition away from live exports by 1 May 2028.

Funding for this includes $64.6 million for sheep producers and the supply chain, $27.0 million to develop market opportunities and demand for sheep products domestically, and $2.6 million to improve animal welfare standards.

“The budget confirms $107 million to cancel the trade, and to add insult to injury, only $64.6 million will go to producers and the supply chain,” noted Mr Jochinke.

The NFF released a statement encouraging the government to change their stance on live sheep exports, stating: “This is a bitter blow. What we say to the Government is reverse the ban, keep your money and we’ll call it even.”

Net Zero

A $63.8 million investment in the Agriculture and Land Sector Decarbonisation Plan was also announced, intended to support initial emissions reduction efforts. The funding has been allocated over the next ten years to “ensure the agriculture and land sectors can meaningfully contribute to the whole-of-economy transition to net zero”.

The Australian Carbon Credit Union scheme will also see $48 million put towards its improvement, as part of the independent review of Australian carbon credit units.

Chinese Markets

There has been a $2 million allocation to help Australian agricultural exporters re-establish commercial ties to China, as well as to “diversify into other markets”.

Agricultural Workforce

Alongside the major commitments was $1.0 million over the next two years to pilot a program that attracts graduates into skilled agricultural work. This allocation sits alongside a $0.5 million extension for the AgCAREERSTART pilot program, which targets young people to move into agriculture.

Instant Asset Write-Off

The instant asset write-off for small businesses has been extended by a further 12 months, until June 2025. Multiple assets can be claimed, but the maximum amount per asset is $20,000.

Other Measures

$13.9 million to ensure the government maintains its readiness for drought.
$1.5 million to improve arrangements and do consumer research to understand the extent of any consumer confusion caused by plant-based and alternative protein product labelling.
$3.4 million to implement the government’s plan for forestry, A Future Grown in Australia: A Better Plan for Forestry and Forestry Products.
$16.9 million for biosecurity services at the new Western Sydney Airport, which is in addition to the $102.0 million that was already provided last year in the Mid-Year Economic and Fiscal Outlook.
$3.6 million for the Digital Trade Accelerator Program that will strengthen border protection and improve digital information sharing with businesses to increase productivity and reduce costs.
$1.7 million to ensure the Australian Fisheries Management Authority can protect our northern waters from the growing threat of illegal fishing, which is a risk to our fishing industry, our biosecurity and our border security.

Industry Response

While rhetoric from the government has focused on a determination to “stand with farmers and regional communities”, industry responses say the announcements are a far cry from support.

GrainGrowers Chair Rhys Turton said while the budget delivers some positive initiatives, rural industries were looking for a “cost of production” budget to address some of the underlying pressures now being felt across the rural sector.

In a Media Release from the organisation on 15 May 2024, he noted that the funding was “not at the level to make a significant difference to operational efficiencies”.

Mr Turton noted that, at a time when the sector has been suffering from extended worker shortages, the $1 million funding for the AgCARRERESTART pilot “falls short of meaningful assistance to address this issue”.

The National Farmers Federation was scathing in its review of the budget, stating the budget “twisted the knife into Australian agriculture”, and issuing a vote of no confidence in the Albanese Government .

“This is a painful budget for Australian farmers and this is a kick in the guts when we are already down,” said Mr Jochinke on behalf of the NFF.

Sources: NAB , Department of Agriculture, Fisheries and Forestry , Grain Growers , NFF

NFF Issues A Vote of No Confidence in Albanese Government

Mon, 20 May 2024 16:40:21 GMT

In the wake of several crippling changes to Australian agriculture’s political landscape, the sector’s peak policy-making forum has sounded a formidable alarm to leadership in Canberra.

The National Farmers’ Federation (NFF), which embodies Australia’s state and commodity agricultural organisations, has carried a trio of motions that ring clear with dissatisfaction towards the current administration.

That the NFF no longer has confidence in the Albanese Government to act in the interests of Australian agriculture.
The NFF believe Cabinet and caucus have made the live export decision without considering the scientific and industry data presented in the consultation process to the detriment of all sectors of agriculture.
The NFF rejects the current assistance package as a token gesture and sees the only satisfactory outcome is the continuation of the trade in live sheep.

Through these motions, the NFF Members Council has strongly declared that they have lost faith in the Albanese Government’s ability to advocate for the interests of Australian agriculture.

NFF President David Jochinke expressed the gravitas of the situation, stating that the unprecedented move reflects a solidified stance from the industry.

“Farmers, fishers, and foresters feel they are being treated with contempt as this Government pursues its single-minded policy agenda,” Jochinke said.

With a clear discord noted between government actions and the needs of the farming community to remain profitable and productive, Jochinke highlighted a perception of neglect: “The Government says it’s listening but today the agriculture sector reiterated its view – that farmers do not feel like they are being recognised.”

Jochinke accused the government of prioritising the preferences of urban voters at the expense of rural and regional constituents. He noted that the live sheep export ban was the final straw, representing a series of harmful policies damaging the agriculture sector.

The exasperation of the community stems from a series of governmental moves that are believed to erode the foundation of farming success.

“We don’t want this fight. Walk with us to better understand what we do, listen to us, and listen genuinely,” pleaded Jochinke, urging the government to work towards understanding and supporting the sector.

Recent policy decisions have stripped farmers’ resources, including water, shuttered markets with a slew of new taxes, and obstructed labour forces. Hindering the agricultural sector’s aim of a $100 billion industry that helps to bolster Australia’s export income, create new urban and regional employment opportunities, and reinvest in sustainable practices.

Underlining the NFF’s vote of no confidence is a simple plea — “What we are asking Government is actually very simple. It is to keep farmers farming.”

The message from Australian agriculture is clear: The sector’s viability and future hang in the balance, hinging on the government’s next move.

Source: National Farmers Federation

$519.1m Investment Announced For Future Drought Fund

Tue, 07 May 2024 16:48:59 GMT

The Federal Government has announced that it will rewrite the Future Drought Fund, investing $519.1 million to help farmers and regional communities prepare for the next drought and build climate resilience.

The announcement will officially be made at Beef2024 in Rockhampton by Prime Minister of Australia, Anthony Albanese MP, with the Minister for Agriculture, Fisheries and Forestry, Senator Murray Watt.

“It’s vital that we support Australian farmers and producers to be prepared for more severe weather impacts,” said Prime Minister, Anthony Albanese MP in a media release on Tuesday, 7 May 2024.

“By doing the work now our rural and regional communities are not just reacting to events as they unfold, but will have considered plans to make them more resilient to climate change.”

Labor has restructured the Fund and its targets to get better results for farming families and communities. This change comes as a response to a 2023 Productivity Commission report that recommended the Future Drought Fund shift its focus from short-term drought resilience projects to those targeting the effects of climate change and promising “lasting public benefits”. It is also in response to last year’s National Drought Forum and has been through consultation with stakeholders.

The FDF was created in 2019 by the then Coalition government amid drought conditions. However, according to the current Labor government, it did not acknowledge climate change as a driver of longer and more severe droughts.

The Fund includes programs like the $235 million invested to extend the Drought Resilience Adoption and Innovation Hubs, the Future Drought Fund Communities program and the next phase of the Regional Drought Resilience Planning Program.

There is also $137.4 million earmarked to extend and improve the existing Farm Business Resilience and Climate Services for Agriculture programs, and the new Scaling Success Program. The Farm Business Resilience program has already helped thousands of farmers with business planning, coaching, and financial literacy training. Plus a further $120.3 million for programs that trial innovative solutions to build long-term resilience to drought and climate risks.

According to a media release from Prime Minister of Australia, Anthony Albanese MP, and Minister for Agriculture, Fisheries and Forestry, Federal Minister for Emergency Management,

Senator Murray Watt, the Fund will provide:

Better tools for farmers to help mitigate the impact of drought on their farms.
Strategies for local communities to prepare for and manage risks through drought.
Increased investment in the existing network of drought hubs.

Meanwhile, the CSIRO is predicting that Australia’s time in drought will increase over the coming years, with days becoming hotter and more frequent.

Senator Watt said very dry conditions were already being experienced in Western Australia and some parts of Tasmania.

“Every morning when farmers around the country wake up, put their boots on and go to work, they are one day closer to the next drought,” he said.

“I’ve seen firsthand the great work under the Future Drought Fund, like trialling new, drought-resistant livestock feed and connecting farmers with the latest scientific advice on reducing drought impacts.”

The Productivity Commission report found the FDF had underspent its $100m annual budget every year since it was set up, with $65m in taxpayer funds allocated in 2020-21, $72m in 2021-22 and $92m in 2022-23.

The rewritten FDF funding will be included in next week’s Federal Budget. Future Drought Fund programs will start to become available from 1 July 2024.

Sources: Joint media release: $519 million boost to help farmers mitigate impacts of drought , FarmOnline (Paywall)

Elevating Agricultural Candidate Attraction in 2024

Tue, 30 Apr 2024 04:28:29 GMT

As the industry evolves, so too does the landscape of agricultural candidate attraction. In 2024, it’s essential to adapt your strategies to meet the changing needs and expectations of agricultural professionals. For over three decades, The Lucas Group has pioneered the path in agricultural recruitment, underpinning the sector’s growth across Australia and beyond. So join us as we delve into how businesses can attract the right candidates, ensuring the continued prosperity of agriculture in Australia.

Understanding the Landscape of Agricultural Talent in 2024

The agricultural workforce is undergoing rapid changes, influenced by technological advancement and shifts in the global economy. Today’s candidates seek more than just employment; they look for roles that offer growth, impact, and alignment with their values. Recognising these evolving profiles and expectations is the first step to attracting top talent.

Develop a Strategic Candidate Attraction Plan

To reach your ideal candidates, it’s crucial to know who they are and what they desire from their careers. At The Lucas Group, our approach involves a deep dive into understanding the demographics, skills, and aspirations of potential candidates, allowing us to craft targeted, engaging candidate attraction campaigns.

To attract candidates, you need to do more than just offer competitive pay. It’s also important to showcase what it’s like to work in your company: the feeling of being part of a community, the chance to contribute to a sustainable future, and the satisfaction of seeing tangible results.

Crafting Compelling Attraction Propositions

In today’s fast-paced and ever-changing agricultural landscape, standing out from the competition is more crucial than ever before. A well-defined and compelling value proposition can set your agribusiness apart, and make it more attractive to potential customers and employees alike.

To create a successful value proposition, it is essential to showcase the unique selling points of your business. This might include technological innovation, a focus on sustainability, or opportunities for career advancement. By highlighting these key features, you can differentiate your agribusiness from competitors and demonstrate why it is the best choice for potential customers and employees.

It is important to tailor your message to the specific needs and aspirations of modern agricultural professionals. This means understanding what motivates them, what challenges they face, and what matters most to them in their work. By crafting a message that resonates with your target audience, you can build a more engaged and loyal customer base and attract top talent to your agribusiness.

The Power of Language in Candidate Attraction

It is important to understand that the language you use in your job listings and communications can have a significant impact on the perception and engagement of potential candidates. At The Lucas Group, we understand the power of language and how it can influence a candidate’s decision to apply for a job at your company.

Using clear, concise, and persuasive language that is relevant to your industry can help to attract the right candidates for the job. We believe in the power of storytelling and effective communication techniques to paint a vivid picture of life at your company, the culture, and the meaningful impact of the work done.

Offering and Highlighting Employee Benefits

An attractive compensation package remains crucial, but benefits that promote work-life balance, wellness, and professional development are increasingly important to candidates. Highlighting these aspects of your employment offer can set your agribusiness apart as an employer of choice.

When we say “benefit,” we mean something that is advantageous or positive. However, it’s important to note that tools of the trade, like a computer or a company car, aren’t necessarily considered benefits. In fact, if you think they are, it may indicate to candidates that your agribusiness doesn’t align with their needs.

On the other hand, there are several benefits that are highly valued by many agricultural candidates. For instance, bonus leave, which is extra time off work beyond regular annual leave, can be a real perk. Flexibility in work schedules, such as the ability to work from home or choose hours, is also a popular benefit among candidates. A supportive, positive team environment can be a huge benefit as well. For many job candidates, the benefits package can be the deciding factor between accepting a job offer or not.

Attracting the right talent in agriculture demands a strategic, nuanced approach. The Lucas Group is committed to partnering with agribusinesses to meet these challenges head-on. With over 30 years of experience and a deep understanding of the agricultural sector, we are uniquely positioned to help your business thrive through strategic talent acquisition.

Reach out to us at The Lucas Group for bespoke agribusiness recruitment solutions that align with the evolving landscape of agricultural talent. Together, we can ensure the continued growth and success of your business and the broader agriculture sector in Australia.

What Will Your Industry Be Paying To The Biosecurity Protection Levy?

Fri, 19 Apr 2024 17:11:59 GMT

Grain and livestock farmers will shoulder the brunt of the burden if the government’s controversial biosecurity protection levy begins operation as scheduled on July 1.

A Department of Agriculture, Fisheries and Forestry document was quietly published on 18 April 2024, outlaying the calculations and production data levy estimates are based on.

Where’s the Biosecurity Protection Levy Hitting The Hardest?

In calculations based on the average gross value of production for 2019-20 to 2021-22, the Department has calculated that grains alone will be asked to pay 23 per cent of the levy increases, at a rate of $12.24 million.

The information was made public one week before the commencement of the Senate Inquiry’s open hearings on the Agriculture (Biosecurity Protection) Levies Bill 2024 [Provisions] and associated bills. It was also released just a few days after the deadline for public submissions to the inquiry had passed.

Grain Producers Australia noted that the amount is about 10 times more than they currently contribute through a voluntary levy, which currently supports Plant Health Australia and is used mainly for emergency responses including recently for the Varroa Mite outbreak.

The livestock sector is slated to beef up its levies too, with cattle and calve producers to contribute $9.3m per annum, and the sector as a whole contributing around 30 per cent.

Despite the looming ban on live export, sheep and lamb producers are expected to contribute 5.8% of the biosecurity protection levy. Dairy farmers will cover $3.1m or 6%, meat chicken farmers in for $1.8m (3.5%), and pig farmers 2% at around $1m.

Meanwhile, vegetable growers will pay the most of all horticulture players towards the BPL with a $1.7m, or 3.3% overall, contribution. In terms of nuts, almond growers will be hit up for $560,000 while salmonid ($680,000) and rock lobster ($280,000) fisheries will pay the most from the fisheries sector.

Where Does Your Industry Sit?

Hover over our graph below to see the BPL contribution for your sector:

BPL Levy Treemap by The Lucas Group

How Has The Department Done The Math?

The federal government originally announced the BPL in the May 2023 Budget and said it would be collected on a par of 10% of the 2020-21 agricultural levy rates.

However, following a public consultation process this has been adjusted to be based on

each industry’s proportionate share of the total gross value of production (GVP) for the total agriculture, fisheries and forestry sector.

Despite the adjustment, GPA chair Barry Large said the government’s policy was fundamentally flawed in its design and “the most glaring fact” is that virtually all producer groups had unified against it.

“This is not about how much the levy rates are per tonne or per kilogram of farm produce – it’s all about the principle of this policy and real failures to get it right and win any support,” he said.

“Australian farmers should not be used as sacrificial lambs to fill budget black holes in government departments.”

Mr Large pointed out that while farmers were being forced to pay the levy as ‘beneficiaries’ of biosecurity, other major supply chain participants, such as major supermarkets were not.

DAFF currently disburses around $800m to 18 levy recipient bodies each year, this is comprised of $500 million in levies and charges collected from farmers and $300 million in Commonwealth matching payments for eligible research and development activities.

There are currently more than 110 levies and charges are collected on more than 70 commodities across the agriculture, fisheries, and forestry sectors.

Sources: Department of Agriculture, Fisheries and Forestry

The Great Agronomist Shortage

Wed, 17 Apr 2024 17:26:12 GMT

We all know, agronomists are crucial in Australia’s agricultural industry, driving innovation through crop management, soil health, and sustainable farming practices. But what do you do if you find yourself amid a shortage, threatening to disrupt the equilibrium of our booming agricultural sector and your agribusiness? One of the biggest mistakes agribusinesses make is neglecting the crucial role of salaries in this shortage and disregarding the expertise required to ensure their ongoing growth and success.

The Root of the Issue

It’s been almost 200 years since Charles Darwin and his theory on evolution hit the world, yet it’s only been a year since the evolution of salaries hit the agricultural sector. Up until 2021/22, the average salary in the agricultural industry had increased over the last ten years by approximately 1.3% per annum. A far lower rate than the 4.5% increase we saw from January 2023 to 2024.

At the heart of the issue is the need for appropriate remuneration that mirrors the expertise, and the value agronomists deliver. Starting with the raw figures, the average salary for an agronomist in Australia ranges from approximately $80,000 for emerging talent fresh in the field, to $160,000 for seasoned professionals poised with years of experience and specialised knowledge. This variance is akin to the diversity of soils agronomists so masterfully understand — each with its composition and capacity to yield.

The Impact of Salaries on Recruitment and Retention

Competitive salary offerings can significantly influence both the attraction of new talent and the retention of experienced agronomists. While the location, size of operations, and the specialised skills an agronomist brings to the table can all influence salary variations, one thing remains stable and that’s the unassailable impact of salary on the success of recruitment and retention.

Competitive salary offerings can be the difference between securing a high-potential graduate or a practised professional and losing them to businesses offering more lucrative packages. We see time and again that financial recognition of agronomists’ skills and contributions significantly aligns with job satisfaction and retention rates.

Average Agronomist Salary by Region by The Lucas Group

Beyond the Paycheque

Adept agronomy professionals don’t just seek a salary, but a total compensation package that reflects their commitment to their field. This includes opportunities for professional development such as workshops, conferences, and continuing education, which not only enhance their skills but also demonstrate the employer’s investment in their expertise.

Performance bonuses, relocation assistance, and work-life balance initiatives round out the offerings that can position an employer as an employer of choice in the agriculture sector. These facets of compensation, while ancillary to salary, can make or break an employment offer in the competitive agronomy job market.

Strategies for Prosperity

With the understanding that adaptability and progressive thinking are the lifeblood of agriculture, similar qualities are required in the recruitment strategies of those industry leaders who aim to hire the best. Addressing salary is paramount, but innovation in the other facets of compensation packages is essential. We recommend staying abreast of market trends, conducting regular salary benchmarking, and engaging in transparent discussions with existing staff to gauge the health of your compensation strategy.

Investing in these areas is not a mere expenditure but a cornerstone investment in the future of your operation. Acknowledging the critical role agronomists play, we must also advocate for their worth through financial incentives and comprehensive benefits.

Sowing the Seeds of Success Together

The agronomist shortage in Australia is a complex challenge, one that calls for a comprehensive approach to salaries and compensation. The cultivation of a thriving agricultural operation depends as much on your crops as it does on the people who nurture them. Through well-considered, competitive compensation strategies, we can ensure that these invaluable agricultural experts are not only attracted to but also committed to the agricultural industry in the long term.

At The Lucas Group, we offer steadfast support, guidance, and expertise as we collectively navigate these turbulent waters. Trust in our partnership, our dedication to your prosperity, and our profound respect for our agricultural industries.

Join Forces with The Lucas Group

If you’re facing challenges in recruiting or retaining top agronomy talent, it’s time to connect with The Lucas Group. Our experienced consultants are experts in crafting tailored strategies that fit the needs of your operations. Let us help you not only meet but exceed your agronomy recruitment goals, securing the success of your operation for years to come.

China Lifts Heavy Tariffs on Australian Wine

Thu, 11 Apr 2024 17:32:24 GMT

In a significant move that could reshape trade dynamics, China has announced it will lift anti-dumping and anti-subsidy tariffs on Australian wine starting March 29, 2024. This marks the end of three years of hefty levies that greatly impacted Australian wine producers.

The tariffs, which went as high as 218.4%, were initially imposed in March 2021 for five years, coupled with other trade barriers on Australian goods. This move came in response to Canberra’s call for a probe into the origins of COVID-19 which strained relations between the two countries.

A Gleaming Sign for Trade Relations

This announcement is a welcomed development as it signals an improvement in Canberra-Beijing ties. Notably, China has been gradually easing trade hurdles on Australian products, ranging from barley to coal, in recent months. This has led to a renewed sense of optimism that other punitive tariffs, particularly those impacting Australia’s leading wine export market, may soon follow.

Australia’s top publicly listed winemaker, Treasury Wine Estates (TWE.AX), has also expressed its positive sentiments, stating that the lifting of the tariffs is a significant boost not only for the company but also for the overall Australian wine industry and Chinese wine consumers. It has plans to collaborate with Chinese customers to boost sales, marketing, and brand management.

From Zero Tariffs to Trade Woes

In the backdrop of a free trade agreement in 2015, Australian wines enjoyed a distinctive 14% tariff advantage over various other wine-producing countries, with zero tariffs on imports into China. Consequently, in 2020 before the duties were enforced, Australian wine constituted a significant 27.46% of Chinese wine imports. However, in the first half of 2023, this plummeted to just 0.14%.

According to the Australian Government, since the imposition of tariffs in 2020, Australian wine exports to China were rendered almost unviable. Estimated figures suggest that the said exports were worth $1.1 billion in 2019.

The Path to Resolution

Canberra had earlier appealed to the World Trade Organisation (WTO) against Beijing’s tariffs on Australian products levied in 2020. However, with the lifting of the wine tariffs, Australia will discontinue its legal proceedings at the WTO. This was possible due to a consensus reached between China and Australia on the resolution of disputes under the WTO framework. Beijing-based Australian CEO of wine importer and distributor The Wine Republic, Campbell Thompson, described the recent development as “great news.”

As a part of the trade diversification strategy, the Australian Government is pressing for the removal of the remaining trade impediments influencing Australian exports. This is considered to be in mutual interest with China. Undoubtedly, the lifting of tariffs will be celebrated by vine growers in Australia, allowing them to manage over-production and cater to waning global wine consumption.

Sources: ABC , Minister for Trade and Tourism , Reuters

Community Support Soars for Australia’s Rural Industries

Wed, 10 Apr 2024 17:46:08 GMT

A recent study conducted by the AgriFutures Australia Community Trust in Rural Industries program has unveiled a remarkable surge in community support for Australia’s rural industries. Over four years, 11 Rural Research and Development Corporations (RDCs), along with the National Farmers’ Federation and the NSW Department of Primary Industries (NSW DPI), have joined forces for the Community Trust in Rural Industries (CTRI) project. Through extensive interviews involving over 22,000 Australians, valuable insights have been gathered on how rural industries can foster deeper connections with the broader community.

Findings of a Comprehensive Rural Research Initiative

The findings from the CTRI project, drawing upon the perspectives of over 22,000 Australians, underscore a noteworthy increase in public awareness regarding the pivotal role of the agricultural sector in our society. It’s truly heartening to witness the growing recognition among Australians of how rural industries not only supply food and essential goods but also offer numerous employment opportunities across the nation.

Even more encouraging is the substantial alignment between the public’s expectations of rural industries’ operations and their actual practices. This shared set of values has contributed to a heightened level of trust in their endeavours.

Moreover, the research has pinpointed addressing community concerns as the most effective strategy for rural industries to bolster trust. By prioritising issues that resonate with the community, these industries have forged stronger bonds and fostered enduring connections with the broader Australian populace.

Building Trust through Action

The latest report from 2023 highlights that the primary drivers of community trust in rural industries have remained consistent since 2019. Notably, the management of environmental performance emerges as the foremost factor influencing community trust, emphasising the significant role of environmental responsibility in cultivating broader public trust.

Rural industries have taken proactive measures to mitigate environmental impact while actively contributing to the preservation of natural ecosystems, thus enhancing trust levels.

Additionally, responsiveness to community concerns and a continuous commitment to enhancing product quality and variety have proven instrumental in fortifying trust.

The survey results also reveal that trust is influenced by various factors, including animal welfare, equitable distribution, and confidence in regulatory practices. Moreover, the growing significance of rural identity underscores the importance of our communities in fostering trust.

Rising Opportunities in Rural Industries

Like many sectors across Australia, rural industries have grappled with well-documented labour shortages in recent years. However, the 2023 CTRI report suggests a positive shift in perception, with Australians increasingly viewing rural industries as offering meaningful career opportunities.

In 2021, 63% of respondents agreed or strongly agreed that “Rural industries offer meaningful careers for those that choose to work in the area.” Remarkably, this figure has surged by nearly 8%, with 70% of respondents in 2023 agreeing. This uptick reflects a positive outlook for rural industries amidst a competitive labour landscape.

The escalating level of support documented by the CTRI project underscores the resilience and significance of Australia’s agricultural and rural industries in the hearts of Australians. These industries not only fulfil the vital role of supplying essential goods and services but also cultivate meaningful connections with the wider community, act as responsible stewards of the land, and uphold a commitment to responsive actions that align with the expectations of Australians.

Source: Community Trust In Rural Industries Year Four National Survey 2023

Namoi Cotton’s Future Heats Up As Olam Raises Stakes

Mon, 25 Mar 2024 17:58:59 GMT

Olam Group, one of the world’s largest agricultural commodity traders, has made a $122m takeover offer for Australia’s Namoi Cotton.

Olam’s takeover offer of $122m equals 59c a share, comprising a 58c per share cash offer and a 1c special dividend, trumping an earlier bid made by global agri-giant Louis Dreyfus Co. (LDC) of 51c per share.

Namoi Cotton’s executive chairman, Tim Watson, said Olam’s non-binding indicative offer came as an “absolute surprise” when he received notice of its intentions on Wednesday.

Louis Dreyfuss Co. First Bidder and Existing Namoi Partner

French-owned Louis Dreyfus, which already holds a 17 per cent stake in Namoi Cotton and is Namoi’s lint marketing joint venture partner, launched its takeover move, worth up to $109m, in November.

LDC’s plans became a binding offer in January after it completed due diligence investigations of Namoi Cotton’s accounts, promising to retain the Namoi Cotton brand name and an office in Toowoomba after the Namoi board agreed to back its takeover bid in January.

Speaking in January, Louis Dreyfus Head of Cotton Joe Nicosia said: “The addition of Namoi Cotton into our Australian cotton operations also aligns with Louis Dreyfus’ global strategy to reinforce its leadership in core merchandising activities – in this case by strengthening our service to local cotton farmers through an expanded ginning and logistics footprint.”

Namoi has advised LDC of the rival offer and will need to pay a $1m break fee if it does not proceed with their agreed scheme of arrangement.

Olam Joins Namoi Bidding With Double Barrel Offer

Olam’s takeover offer comprises concurrent offers. The first, is a 59c per share offer, comprising a 58c per share cash offer and a 1c special dividend, via a scheme of arrangement that needs

to be approved by shareholders.

Concurrently, Olam has made an off-market takeover offer of 57c per share in the event the initial offer if voted down, with a requirement it achieves at least 50.1 per cent. The 57c/share bid would give Olam’s off-market takeover offer a total value at $118m.

If successful, Olam has committed to maintaining the Namoi business under its historic and reputed Namoi Cotton brand.

In a letter to Namoi’s executive chairman, Tim Watson, Olam co-founder and chief executive officer, Sunny Verghese emphasised Olam’s global expertise, extensive customer franchise and track record of driving growth in its businesses “as demonstrated in Queensland Cotton’s success”.

“Acquiring Namoi is in line with Olam’s strategy of strengthening and expanding its cotton merchandising and ginning capabilities in Australia,” Mr Verghese said.

“Namoi’s gins, grain and cottonseed storage facilities, warehouses and access to rail transport, would be highly complementary to Olam’s existing operations.”

Majority Shareholder Voices Support For Olam Takeover

Namoi’s largest shareholder, Samuel Terry Asset Management (STAM), holds 22.37 per cent of Namoi, has backed the Olam proposal after initially standing behind LDC.

In correspondence published to the ASX, STAM said it deemed the Olam offers “to be superior proposals to the existing proposal from Louis Dreyfus Company”.

“STAM encourages the Naomi Board to engage with Olam in relation to their Proposal,” STAM Managing Director Fred Woollard said.

STAM has said it will vote in favour of the 59c scheme of arrangement and otherwise for the off-market offer “in the absence of a superior proposal.”

“STAM confirms that it considers both the Scheme Proposal and Potential Takeover, if either are made, to be superior proposals to the existing proposal from Louis Dreyfus Company,” said Woollard in a letter to the Namoi board. “STAM encourages the Namoi Board to engage with Olam in relation to their Proposal.”

Foreign Investment Board Review on Horizon

While either suitor for Namoi will require Foreign Investment Review Board approval, it’s likely the company, which has 10 cotton gins in NSW and southern Queensland – will not remain Australian-owned.

Foreign investment in Australian agriculture is ramping up as a long-term trend, seeing Australian-owned producers snapped up by international companies.

Earlier this year, fruit and vegetable company Costa Group was sold for $1.5bn to a consortium led by US private equity group Paine Schwartz. Beef giant AACo, while still listed in Australia, became majority-owned by Bermuda-based billionaire Joe Lewis a year earlier. The nation’s biggest wheat trader AWB was snapped up by a Cargill-led consortium in 2010. Graincorp and Bega Cheese are among the few that remain on the ASX.

Louis Dreyfus is a French company and Olam Group is based in Singapore. However, the Olam Group is itself being broken up and Olam Agri – which is the unit that is bidding for Namoi – is 35.4 per cent owned by Saudi Arabia’s PIF.

References: Farm Online , Australian Financial Review , Grain Central , The Australian

Immigration Minister Warns Against Exploiting Migrant Workers in Wake of Further Reforms

Mon, 18 Mar 2024 18:05:31 GMT

Australian businesses have been put on notice about the exploitation of migrant workers during a Law Council of Australia conference.

A speech at last week’s Law Council of Australia Migration Conference saw The Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs, raise issues relating to people on temporary visas.

The speech discussed alleged exploitation of migrant workers, and how this treatment undermines the system and harms the entire workforce – from casual staff to employers.

Giles discussed how policies regarding workplace relations and immigration needed to work hand in hand to address the ongoing issue of temporary migrant workers being exploited by businesses.

Updated Guidelines to Enforcement Around Migrant Worker Rules

Recent reforms to industrial relations laws have resulted in the Government being able to make it a criminal offence for employers to force or unduly influence migrant workers to work in breach of their visa conditions.

The Strengthening Employer Compliance Act was passed by Parliament on 7 February and will commence on 1 July this year. The Act introduces three new criminal offences for using a person’s migration status to exploit them in the workplace and also introduces prohibition measures.

Under The Strengthening Employer Compliance Act, employers who engage in serious, deliberate or repeated forms of non-compliance will be prevented from hiring new workers if they hold a temporary visa.

“The prohibition tool will deliberately seek to disrupt business models predicated on exploitative practices, where employers simply churn through new staff, many of whom are unaware of what they are about to experience,” said Minister Giles.

From July, employers who are barred from sponsoring new workers will also be liable to become prohibited employers and will not be allowed to hire new staff if those workers hold a temporary visa.

Prohibited Businesses to Hear from the Minister

In his speech, The Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs, warned that liable employers should expect communication from his office.

“From July, I will be writing to employers who are liable for prohibition and asking why they should not be prohibited from hiring workers on temporary visas,” he said.

“This will include any employer found to have exploited migrant workers in a Federal Court decision under the Fair Work Act as well as those employers who have been subject to a bar due to a breach of the sponsorship obligations in the Migration Regulations.”

“We now have a legislative framework that is substantially better placed to deter the exploitation of vulnerable workers, improving economic and social opportunities for all Australians.”

Pilot Programs to Test Visa Barriers

Also announced during The Law Council of Australia Migration Conference was the development of two pilot programs to address the visa barriers preventing people from speaking up about possible exploitation.

“The pilot programs will focus on introducing a formal protection against visa cancellation – to give people the confidence they can report wrongdoing and seek redress, even if they have breached a work-based visa condition,” noted Minister Giles.

A second pilot will test the concept of a workplace justice visa, designed to enable temporary migrants to remain in Australia while they seek workplace justice.

Sources: HCAMag , Speech – Law Council of Australia Migration Conference, The Hon Andrew Giles MP, Minister for Immigration, Citizenship and Multicultural Affairs

Ag Community Awaits Updated PALM Scheme Guidelines

Tue, 27 Feb 2024 18:13:44 GMT

Imminent changes to the Pacific Australia Labour Mobility (PALM) scheme are continuing to concern the farming community as we await Labor’s release of the new PALM guidelines.

Last year’s Federal Budget updated the laws around the PALM scheme, implementing a minimum standard that the horticulture industry has labelled as “unworkable”, and providing better conditions than domestic labourers receive.

New Rules Surround PALM Scheme

Under the new laws, workers in the Pacific Australia Labour Mobility (PALM) scheme must receive 30 hours of work per week averaged over four weeks, rather than over the time of their placement, and from July 1 2024, must receive 30 hours of work per week.

The Hon David Littleproud MP, Shadow Agriculture Minister, said in early February that farmers were anxiously awaiting Labor’s release of the new guidelines. He noted that there were serious inconsistencies with industrial relations rules when it comes to ‘stand down’ guidelines, making the PALM scheme more expensive for employers.

“Australian workers are occasionally ‘stood down’ temporarily as part of their enterprise agreement (EA) and because of this, they can be paid a higher hourly rate,” Mr Littleproud said.

“This is common in places such as abattoirs when there is no stock or if a processing plant requires maintenance. So Australian and migrant workers aren’t paid during a stand down because they can earn the higher hourly rate to cover them.

“On the other hand, new guidelines for PALM workers indicate they must be paid regardless of a stand down. The oversight means that PALM workers risk receiving greater conditions, i.e. pay, than Australian and migrant workers performing the same job in the same scenario.”

Farmers Feeling the Labour Shortage Pinch

The new PALM scheme laws have hit agriculture in the middle of historic labour shortages, adding expense to an already difficult task.

The Land spoke with a producer who was feeling the strain – David Caslick, who runs a mixed enterprise on the 445-hectare Melrose, Willow Tree. Mr Caslick Gandhis daughter Sarah’s property runs 550 Santa Gertrudis/Angus breeders and crops wheat and canola. But it is their 1800-head Merino sheep operation that has suffered, with the two of them working alongside their 2IC.

“We do whatever tasks the three of us can manage ourselves, but many of the husbandry sheep tasks need a team of contractors and we have struggled to get them together,” Mr Caslick said.

Mr Caslick said he believes the labour shortage issue is a big one and the closure of agricultural colleges across New South Wales has directly impacted on this.

Weather Adds to Horticultural Staffing Woes

A lack of flexibility within the PALM scheme changes means that inclement or unpredictable weather is now a double-whammy for the horticultural industry.

Agronomist, committee member of the Australian Blueberry Growers Association, and farm manager at Smart Berries, Sally Jolly explained to the ABC that with unpredictable weather patterns staff planning and guaranteed hours per week is difficult.

“It’s an essential and important connection that we have between the growers and the employees so they can earn enough to take home to their own families, and the whole point of it is trying to get these guys in a better position than where they currently are.”

Executive officer to the National Farmers Federation (NFF) Horticulture Council, Richard Shannon, said he was concerned the changes would bring about a decreased interest in the scheme.

“It’s going to be fewer workers from the Pacific in Australia earning money, fewer of our employers using it, and I think it’s a massive shame,” Mr Shannon said.

New PALM Guidelines Still on the Horizon

The new PALM scheme guidelines were expected to be released by the Government in February 2024, but have still not hit the public’s eyes.

Sources: ABC , The Land [Paywall], The Hon David Littleproud MP Leader of The Nationals Shadow Agriculture Minister

Image: Al Mabin, Agrishots

Thriving Times for Australian Aquaculture Industry

Wed, 24 Jan 2024 18:30:20 GMT

Exciting news from the latest release of ABARES Australian Fisheries and Aquaculture Statistics, celebrating remarkable achievements within the Australian aquaculture sector.

The heartbeat of our aquatic endeavours, the Gross Value of fishery and aquaculture production (GVP), has surged by an impressive 8%, soaring to $3.42 billion in the 2021-22 fiscal year.

Notably, the value of aquaculture has surpassed that of the wild-catch sector within this period.

David Galeano, Acting ABARES Executive Director, remarked, “Over the last two decades we’ve seen aquaculture continue to grow, helping to boost overall fisheries production”.

In a noteworthy turn of events, aquaculture constituted a whopping 56% of the total Australian fisheries and aquaculture GVP in the 2021-22 financial year, propelled by the escalating value of salmonids. This surge in value addition from salmonids and abalone has translated into a 2% uptick in the total value of fishery and aquaculture product exports, reaching $1.28 billion.

“Australians love their seafood,” remarked Galeano, highlighting a consumption of approximately 350,000 tonnes – an impressive 13.8 kilograms per person – during 2021-22.

While seafood consumption still trailed behind chicken, pork, and beef, it surpassed lamb and sheep meat consumption throughout the year. The import of fishery and aquaculture products also experienced a 2% rise, totalling $2.19 billion, primarily attributed to an upswing in prawn value.

The recent triumph of the Australian aquaculture sector underscores its pivotal role in nourishing the nation and fortifying the economy. The industry’s performance in 2021-22 underscores the sector’s resilience and capacity for growth amidst global challenges.

As the value of aquaculture surges, it serves as a signal of the innovation and transformation driving the industry forward.

We at The Lucas Group take great pride in working alongside this burgeoning sector, committed to pairing outstanding talent with opportunities within this thriving industry. From salmonids to prawns, every tide brings fresh promise to Australian aquaculture – a testament to the strength of our partnership, the innovation of our industries, and the undying Australian love for seafood. Together, we anticipate another year of robust growth and mutual prosperity, ensuring that the Australian aquaculture industry remains a beacon of success.

The Australian Fisheries and Aquaculture Statistics 2022 , supported by the Fisheries Research and Development Corporation on behalf of the Australian Government, is available online on the ABARES website , inviting all to explore the rich tapestry of achievements in our thriving aquatic domain.

Sources: ABARES

Image: Al Mabin – Agrishots

Steps to Upskill Your Agribusiness Workforce: A Comprehensive Guide

Mon, 08 Jan 2024 18:46:40 GMT

Assess Your Workforce’s Current Skills and Identify Gaps

Begin by evaluating the strengths and weaknesses of your team. This assessment should consider both technical and interpersonal skills required for success in the agribusiness sector. Through identifying the gaps, you gain valuable insights into the areas where upskilling efforts can yield the most significant results.

Where to Start

Skills Matrix – Create a skills matrix or survey to gauge technical and soft skills. Consider tools like self-assessment, peer evaluations, or even external assessments.
Feedback Sessions – Conduct one-on-one or group feedback sessions to understand where team members feel they excel or lack confidence. This can provide valuable insights beyond formal assessments.

Set Goals and Define Desired Outcomes

Establish clear, measurable goals for the upskilling process. Determine which skills need improvement and how these enhancements will contribute to the overall productivity and success of your agribusiness. This may include goals such as increasing technical proficiency, improving problem-solving skills, or fostering teamwork and collaboration.

Where to Start

SMART Objectives – Use the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework to define goals. For instance, increasing crop yield by X%, reducing machinery

downtime by Y%, etc.
Align with Business Goals – Ensure that the skills you aim to enhance directly tie into the larger objectives of your agribusiness.

Research Training Opportunities and Resources

Explore possible training programs and resources to address skill gaps and suit your workforce’s needs. Consider accredited courses, workshops, online learning platforms and hands-on training from industry specialists. Stay up-to-date on government initiatives and funding options that may support workforce development.

Where to Start

Diverse Learning Modes – Offer a mix of learning styles, such as workshops, online courses, mentoring, on-the-job training, or conferences.

Tailored Programs – Consider customising training to cater to specific roles within the agribusiness. For instance, sales-focused training for marketing teams or specialised technical workshops for field operators.

Create a Tailored Upskilling Plan

Develop a comprehensive plan that outlines the training programs and activities your employees will undertake to achieve the desired outcomes. Consider the various learning styles and preferences of your workforce when designing this plan. Allocate sufficient time, resources, and support to ensure the success of the upskilling process.

Where to Start

Individual Development Plans – Work with team members to create personalised development plans. This shows that you value their growth and helps align training with their career aspirations.

Regular Check-ins – Schedule periodic meetings to discuss progress and make any necessary adjustments to the training plan based on evolving needs or challenges.

Encourage a Culture of Lifelong Learning

Foster an environment that values growth, development, and learning. Encourage open communication and knowledge-sharing among team members, celebrate achievements, and acknowledge progress. Such an atmosphere will help cultivate a passion for continuous improvement within your workforce.

Where to Start

Knowledge Sharing Sessions – Organise regular sessions where team members share insights, lessons learned, or innovative ideas. This can be done through presentations, workshops, or informal discussions.
Reward Continuous Learning – Acknowledge and reward employees who actively engage in learning opportunities. This could be through recognition programs, incentives, or career advancement opportunities tied to skill development.

Regularly Evaluate Progress and Adapt

Quarterly (at least) revisit your upskilling plan and assess progress. Recognise and address any challenges or obstacles that may arise during the process. Regular evaluations and adjustments will help maintain momentum and ensure your workforce remains on track to achieve their upskilling objectives.

Where to Start

Feedback Loops – Use surveys or feedback sessions at different stages of the upskilling process. This helps in understanding the effectiveness of the training and identifies any areas that need further attention.

Adaptability – Be ready to adapt the training plan based on feedback and changing industry trends. Flexibility is key to ensuring the training remains relevant and impactful.

Partner with Industry Experts

Collaborate with industry experts, like The Lucas Group, to support your upskilling initiatives. Leverage our expertise, insights and network to identify the best training opportunities and resources, ensuring a targeted and effective approach to workforce development.

The Lucas Group is committed to helping you strengthen your agribusiness workforce through upskilling. Upholding a strong foundation of expertise and dedication, we take pride in our ability to contribute to the development and success of agriculture in Australia. Embrace these steps and collaborate with us to unlock the full potential of your workforce and set your agribusiness on a path to enduring success.

A skilled agricultural workforce is vital for long-term success , innovation, and sustainability. Developing the expertise and capabilities of your employees will yield countless benefits, from improved productivity to increased employee satisfaction.

Innovative Bonus Structures are Reshaping Agribusiness

Wed, 03 Jan 2024 04:09:21 GMT

It’s becoming painfully obvious that a shortage of workers is one of the biggest challenges facing agribusiness in 2024. Especially as we work towards the goal of becoming a $100 billion industry.

One of the major players in this struggle is turnover. The cost to replace a good employee well outweighs any bonuses or additional pay structures that might be put in place. Agribusinesses recognise this, and many have put in place incentive bonus structures and higher pay brackets to ensure stability in their staffing.

Gary Rodely’s Tathra Oysters at Nelson Lake is one of these agribusinesses. After struggling to hold onto his star employees he came up with an inventive way to incentivise staff and maintain a stable and effective crew.

“Staff would generate a 1 per cent bonus for each milestone, so for a business that turns over a million dollars, the bonus would be paid to staff in the week when the $100,000 milestone is reached,” he explained.

“When $200,000 is reached an additional $2000 is paid in that week, and so on. People could potentially double their wages and, if they’ve got lots of bright ideas, well, you’ve got the potential to triple your wages.”

While the bonuses are capped at 10 per cent, the scheme is already driving innovation for Tathra Oysters.

“We’ve got a couple of people on the bonus structure already, and it’s working fabulously,” he said.

“They’re thinking about the whole place a different way. And they’re not just waiting for instructions, they’re coming up with so many different ways of doing things and improvements.”

Farmers of all kinds are looking towards adopting similar business models, moving away from undefined bonuses to incentive-based bonus structures and higher salary packages.

With climbing regional job vacancies reaching 92,500 in October 2023, this shifting sensibility is set to change the agri-employment landscape.

Added to these bonus structures are other fringe benefits that are often offered to agricultural employees. The majority of management positions on-farm will come with tools of the trade, top-of-the-line work vehicles, property rental, power, internet, and phone bills covered. Here at The Lucas Group, we will often see these being partnered with additional benefits, such as travel allowances, meat allowances and further education plans.

With a plethora of benefits associated with joining an established agribusiness, and new incentive schemes being rolled out across the industry, 2024 is the perfect time to start looking at your newest career move.

Sources: ABC , Regional Australia Institute

Changes to Fixed-Term Contracts: Everything You Need to Know

Mon, 11 Dec 2023 04:21:24 GMT

The Federal Government’s Secure Jobs, Better Pay Bill is still rolling out its significant reforms to the Fair Work Act 2009 (Cth) (FW Act). The most recent change came into play on 6 December, changing the rules that apply to the use of fixed-term contracts. Here’s what you need to know.

New Rules in a Nutshell

Fixed-term contract employees are workers hired for a fixed period, usually terminating at the end of this specified timeframe. As of 6th December 2023, new guidelines will be in place to protect the rights of both employers and employees.

Here are the most significant changes:

Fixed Term Contract Information Statement (FTCIS) : From 6 December 2023, employers must present a Fixed Term Contract Information Statement (FTCIS) to every worker hired under a new fixed-term contract. The FTCIS informs workers about the nature of fixed-term employment, including rules about when fixed-term contracts are permitted.
Limitations on Fixed-Term Contracts : Fixed-term contracts may not last longer than two years, inclusive of any extensions or renewals.
Renewal Limitations : Employers cannot extend or renew the contract so that the period of employment exceeds two years.

Fixed-Term Contracts and the Individual Situation

It’s important to note that these changes don’t apply to all fixed-term contracts – there are exceptions. For instance, these limitations don’t apply to casual employees.

Moreover, if fixed-term contracts don’t meet these limitations, that does not automatically render them illegal or invalid. Rather, these contracts can only be used for genuine reasons based on the ‘normal and customary turnover of labour’.

The Two-Year Rule

The “2-year rule” is an important aspect of the new guidelines set by the Fair Work Ombudsman. Grounded in the principles of fair and equitable employment, this rule has significant implications for employers and employees alike, particularly in Australia’s vital agriculture and production sectors.

In essence, this rule stipulates that fixed-term contracts may not last longer than two years. This includes any extensions or renewals of the employee’s contract.

The finer details on this mean that:

An employee can’t be offered a new fixed-term contract if the first 3 points below all apply, and one or more of the scenarios in the 4th point applies.

Their previous contract was also for a fixed term.
Their previous contract and the new contract are mainly for the same work.
There is substantial continuity in the employment relationship between the previous and new contracts, and
Either:

the previous contract contained an option to extend that was used
the total period of employment for both the previous and new fixed-term contract is more than 2 years
the new fixed-term contract contains an option to renew extend, or
there was an initial contract in place (before the previous contract):
that was for a fixed term,
that was for the same or similar work, and
where there was substantial continuity in the employment relationship.

Ultimately, this rule means employers cannot continually extend or renew a contract to make the total period of employment exceed two years.

Exceptions to the Limitations on Fixed-Term Contracts

There are exceptions to the limitations of the new fixed-term contract rules. For instance, they won’t apply to government-funded positions, high-income employees or essential workers. They also don’t apply to casual employees.

For more details on the exceptions to the fixed-contract limitations, see here.

What This Means for Employers

Employers must adapt to these new rules to stay compliant. For instance, it will be critical to consider the new two-year rule when drafting your fixed-term contracts.

Also, starting December 6, 2023, you will need to remember to provide all workers engaged on a new fixed-term contract with a copy of the FTCIS . This should be done at the start of the contract.

These incoming changes will introduce more structure and clarity to fixed-term contracts, providing both employers and employees with a more solid foundation for their working relationships. To remain compliant, employers need to alter their practices accordingly.

The limitations don’t apply to fixed-term contracts entered into before 6 December 2023. However, fixed-term contracts entered into before 6 December must be considered when applying the consecutive contracts limitation for a new fixed-term contract that is entered into on or after 6 December 2023.

For further information, help or advice, please visit Fair Work Ombudsman .

Navigating the Exceptions: A Detailed Look into the Upcoming Fixed-Term Contract Changes

Mon, 11 Dec 2023 04:15:15 GMT

As we work together to grow the agriculture and production sectors, it’s important to stay up-to-date on changes to employment law in Australia. Over 2023 there have been sweeping reforms to the Fair Work Act 2009 (Cth) (FW Act) , the most recent of which have been changes to fixed-term contracts. Despite the introduction of broad changes, there are situational exceptions to the limitations of the new fixed-term contract rules . For instance, they won’t apply to government-funded positions, high-income employees or essential workers. They also don’t apply to casual employees.

The below exception scenarios have been sourced directly from the Fair Work Ombudsman .

Exception 1: Specialised Skills for a Specific Task

Where an employee brings specific expertise requisite for a singular task. Take Vivian, a technology professional, assigned to a project demanding her specialised skills. Her 6-month contract has provision for three 1-month extensions should the project be delayed.

Exception 2: Training Arrangements

Under those instances where employees are part of a formal training structure that couples work and study. Consider Javier, starting his plumbing apprenticeship, who receives a 4-year fixed-term contract, mirroring his apprenticeship duration.

Exception 3: Essential Work

This applies when an employee is hired during a high-demand phase to fulfil critical roles. Kevin, for example, a seasoned ski patroller with strong first aid skills, is employed for a 2-month contract during the ski season but may have his contract extended twice by a month each, subject to the ski conditions.

Exception 4: Emergency or Temporary Circumstances

This applies in unforeseen circumstances or to cover for someone temporarily away. Christina, away on 24 months of parental leave, is replaced by Gerry, whose fixed-term contract is extended for an additional 12 months when Christina extends her leave.

Exception 5: High-Income Employees

Should an employee’s guaranteed annual salary exceed the high-income threshold, the 2-year rule does not apply. Think of Esther, an IT project manager, who earns $240,000 annually on a 3-year fixed-term contract, surpassing the high income threshold for that contract year.

Exception 6: Positions Subject to Government Funding

When a role, wholly, or partially funded by government funding extending beyond two years, is unlikely to be renewed post the funding period. Lu, for example, is employed on a 3-year contract to develop a community garden, funded entirely by the Local Government for that period.

Exception 7: Governance Positions

Where a governance role with a fixed tenure (as per corporate or association rules) exists. Sunita’s 5-year fixed-term contract with the Land Management Council executive board is a perfect example.

Exception 8: Award Provisions

Under situations where the employment is covered by an award allowing conditions that are limited by the new rules. Like Ravi, whose award allows him to work on back-to-back contracts, and openly permits multiple contract renewals as agreed by both parties.

There are also exceptions and specific rules to the fixed-term contract limitations that need to be followed. These only apply to:
organised sport
High-performance sport
live performance
higher education
positions funded by philanthropic entities or testamentary gift or contribution

For more information, visit Fair Work Ombudsman – Additional fixed term contract exceptions .

Australia Takes a Stand for Sustainable Agriculture on the Global Platform

Tue, 05 Dec 2023 04:24:03 GMT

Australia has joined the Emirates Declaration on Sustainable Agriculture, Resilient Food Systems and Climate Action at the 28th United Nations Climate Change Conference (COP28) in Dubai, in a move that has been endorsed by the Nation Farmers Federation.

“This Declaration stresses the importance of the agriculture sector as a major stakeholder in the debate, and reaffirms farmers being at the core of decisions made that affect them,” explained NFF President David Jochinke who is attending COP28.

“The NFF recognises the fundamental challenge that adaptation and emissions reduction represent to our industry.

“It’s critical that climate adaptation doesn’t compromise our ability to produce food and fibre, or result in reduced productivity, by limiting herd numbers for example.”

Minister for Agriculture, Fisheries and Forestry Murray Watt said the endorsement supported long-standing industry leadership on sustainable agriculture.

“Australian agriculture has a proud track record of sustainable farming, and many farming groups are working towards ambitious emissions targets they’ve set for themselves, finally with a Federal Government at their side,” Minister Watt said.

“The Emirates Declaration is a commitment to scale-up adaptation and resilience activities across the agriculture sector, which is important because Australian farmers face all sorts of challenges made worse by climate change, including drought and increased natural disasters.

“The declaration aims to maximise the climate and environmental benefits associated with agriculture and food systems.

“And it will deepen ties with valued trading partners across the globe—countries who are increasingly demanding strong sustainability credentials for food and fibre imports.

“Everybody wins: our farmers, our exporters and the next generation of Australian primary producers.”

The Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action at COP28 is a commitment made by more than 130 countries to better align efforts on agriculture and food systems with climate action.

The Declaration marks an important milestone related to sustainable agriculture, food systems, and climate action, underscoring the critical role that food systems play in both driving and mitigating climate change.

The main points of the declaration include nations integrating food into their climate plans by 2025, and enhancing access to finance to adapt and transform agriculture and food systems in response to climate change.

Preparing for the devastating impacts of drought is critical for Australian farmers. Many are adopting new technologies and practices to mitigate the effects of future climate events.

ABARES modelling shows that over the last 20 years climate change has reduced the average Australian farm’s profitability by 23 percent. The Government has recently begun consultation on Australia’s first agriculture and land sector plan for reducing emissions.

On December 10th, a discussion is set to take place surrounding the Emirates Declaration. This meeting will bring together not only influential leaders but also a broad range of collaborators, each contributing their unique expertise in both the practical and financial aspects of transforming our agriculture and food systems.

During this event, a clear plan of action is set to be outlined to achieve the ambitious goals of the declaration by 2025. Attendees can also expect to see a showcase of helpful instruments, platforms for creating policy, and the unveiling of a practical COP28 heritage bundle, called the “Climate Policy Toolkit for Food”. This toolkit is designed specifically to help those who have signed the declaration to speed up their implementation process.

Sources: The Department of Climate Change, Energy, the Environment and Water , Forbes , Senator the Hon Murray Watt – Minister for Agriculture, Fisheries and Forestry , National Farmers Federation , Remarks by Antony J. Blinken, US Secretary Of State at COP28 , World Resources Institute

Cultivating Success by Investing in Employee Upskilling

Fri, 01 Dec 2023 04:27:55 GMT

Our industry is facing a skills crisis, with a shortage of experienced, qualified talent. As things change and evolve the gap between the current workforce and the future is widening. But how can we begin to close that gap? Upskilling.

The Importance of Continued Education and Skills Development

The agricultural sector demands a dynamic skill set from our workers, which includes farm managers, labourers, and agri-tech specialists. Talent needs to adapt to the constantly evolving demands of the industry, shaped by factors like technological advancements, shifting consumer preferences, and sustainability concerns. To be a successful agricultural professional in the modern world, you need a broad knowledge base and expertise in various areas.

A 2018 survey undertaken by Rabobank showed that 70% of those surveyed agreed that upskilling via training and education is important to their business.

Engaging in continued education and skills development enables employees to stay informed, make better decisions, and take on new challenges with confidence. Upskilling not only enhances the individual’s job prospects but also increases overall productivity, efficiency, and resilience within your agribusiness.

Upskilling Programs and Training Opportunities

There has been a surge of attention on upskilling – thanks to the skills shortage – with various training opportunities and programs emerging within the agriculture sector. From accredited short courses, apprenticeships and traineeships to online learning platforms, the options for workers to expand their skill set are both flexible and diverse. These programs cover a wide range of subjects, such as agribusiness management, sustainable farming practices, and agri-tech innovations.

National and state-organised initiatives, along with industry-specific associations, play a crucial role in supporting the development of vocational and technical skills for those working in the agricultural domain.

The Advantages of Employee Development for Agribusiness

Employers within the agriculture sector stand to gain immensely by fostering an environment that encourages growth and development. Investing in upskilling can result in a highly skilled and adaptable workforce, ultimately leading to increased productivity and profitability.

Furthermore, by supporting employee development, employers contribute to building a more attractive, innovative, and sustainable industry – crucial for attracting new talent and engaging with the next generation of agricultural professionals.

The Lucas Group – Your Partner in Upskilling and Workforce Development

At The Lucas Group, we share a deep passion for agriculture and rural jobs. We are dedicated to partnering with our clients in achieving prosperity, recognising the critical role that a skilled workforce plays in success. Through our industry-wide network and expertise, we offer guidance and insights on upskilling opportunities tailored to the unique needs of each client. Our commitment to cultivating successful, enduring partnerships drives us to empower clients to strengthen their workforce, propel their business forward, and contribute to the growth and resilience of Australia’s agricultural sector.

Sources: People in Ag , PWC

All Signs Point to El Nino Weakening Through Autumn

Thu, 23 Nov 2023 04:31:00 GMT

The latest Climate Driver Update has been released this week by the Bureau of Meteorology (BOM) indicating El Niño through to Autumn.

Earlier this year the BOM declared two major hot, dry climate drivers, announcing El Niño and a positive Indian Ocean Dipole (IOD). They’ve now indicated that long-range forecasts suggest El Nino will start weakening after the autumn.

The bureau’s scan of international climate models shows the El Nino likely to weaken from April with the El Nino indicator heading slowly back towards neutral territory.

A Quick Refresher

“El Niño and a positive IOD tend to draw the rain away from Australia. The convergence of these two events can lead to below-average rainfall across the continent and elevated temperatures in the southern region during spring,” as Dr. Karl Braganza, Climate Manager of the Bureau explained.

El Nino and its counterpart, La Niña, significantly affect the weather and climate situation in Australia. El Niño conditions typically heighten the risk for more extreme temperature shifts, leading to possible heatwaves and overall hotter days. Additionally, the fire danger in south-eastern Australia increases considerably, with the IOD further amplifying the potential fire risk during springtime.

The Latest Update

The World Meteorological Organisation said the El Nino “is anticipated to have substantial and widespread effects on weather patterns through much of the tropics and beyond at least until end of 2023 and first quarter of 2024”.

“Based on model predictions and expert assessment, there is a very high likelihood of the El Nino event continuing during November 2023-April 2024.

“Drawing from historical warm episodes and the most recent long-range forecasts, the gradual weakening of the El Nino is anticipated during the 2024 northern hemisphere spring (southern hemisphere autumn),” the WMO said.

Australia’s Bureau of Meteorology

The BOM’s latest scan of international climate models shows El Nino weakening from April, with the ENSO El Niño indicator slowly heading back towards neutral territory.

Australia’s Bureau of Meteorology said warmer than average sea surface temperatures persist in the tropical Pacific and the atmospheric indicators are also consistent with El Nino conditions.

“The 2023 El Nino event is tracking around moderate strength with SSTs (sea surface temperatures) forecast to remain above El Nino thresholds into the early autumn 2024,” the bureau said.

They’ve also noted that the positive Indian Ocean Dipole event is continuing and tracking at strong levels.

“All international climate models surveyed by the bureau suggest the positive IOD is likely to ease in December, slightly later than usual.”

Typically, the combination of El Nino and the positive phase of the IOD favours below-average rainfall for much of tropical Australia at this time of year.

What Will the El Niño/IOD Combo Look Like?

Thanks to the combo, our December to February rainfall is likely to be below average across much of northern Queensland, the NT, Tasmania, southern and central SA, and north-west and western WA.

We’re also in for some hotter weather, with limited relief at night.

Around Australia, we’re in for a crispy, hot summer. So let’s get prepared, get the irrigation systems flawless and keep our demeanour as sunny as the summer’s going to be!

Sources: Farm Online , Bureau of Meteorology

How’s the Serenity? Bonnie Doone Beef Breaks Records with Carbon-Positive Farming

Thu, 05 Oct 2023 04:38:59 GMT

In the tranquil heartland of Bonnie Doone Beef, graziers Carly and Grant Burnham have embarked on a remarkable journey, turning their attention to the very essence of the Earth beneath their feet.

Meet the soil farmers who have not only farmed serenity but are reaping incredible rewards as their carbon-negative soil project breaks records and captivates the world.

Seeds of Sustainability

For the past decade, the Burnhams have nurtured a unique philosophy on their Monto property—a philosophy grounded in regenerative farming and soil improvement. They’ve lovingly referred to themselves as soil farmers, diligently focusing on the roots of their operation.

Despite battling bushfires, disease outbreaks, and droughts, their unwavering commitment to carbon sequestration has paid off in spades. The National Clean Energy Regulator has awarded them an astounding 94,666 Australian Carbon Credit Units (ACCUs)—a historic achievement for an individual soil carbon farming project.

Valued at approximately $2.8 million, these ACCUs hold the potential to change the way consumers perceive agriculture’s role in combating climate change. It’s a testament to how the Burnhams’ land management practices have resulted in the equivalent of 126,222 tonnes of greenhouse gas emissions being absorbed into their soils over the past five years.

The Burnham’s Insight

Mrs. Burnham emphasizes that their project demonstrates how soil carbon initiatives can harmoniously coexist within diverse landscapes and under varying conditions.

“By focusing on developing better grazing practices and improving ecological health, we were able to increase overall carbon stocks across the project area,” she said.

“If you remain focused on ecology and production, soil carbon comes as a result.”

The Burnham family’s extraordinary success holds promise for the 2030 carbon-neutral goal. Their cattle are now proudly carbon neutral, with a remarkable 6.6 tonnes of carbon sequestered in their soil for every tonne of livestock they raise, accounting for all emissions.

Changing the Landscape

CarbonLink Chairman, Dr Terry McCosker, celebrates the Burnhams’ Bonnie Doone project as a new Australian benchmark, providing inspiration to landowners committed to positive climate action.

“The release of ACCUs for Bonnie Doone is a huge step toward a greener, more sustainable future for Australian primary producers and landowners,” Dr McCosker said.

“The land management techniques used by Carly and Grant have added 47,000 tonnes of soil organic carbon to the project area. This equates to an additional 283,000 tonnes of water added to the capacity of the soil.

“It is proof that landowners who are committed to a tangible improvement in soil health can generate a diversified income stream while contributing to a healthier planet.”

This marks the second large-scale issuance of soil carbon credits in just four months, signalling a transformative shift in sustainable land management. Multiple producers are now benefiting from managing soil carbon projects with CarbonLink.

In June 2023, CarbonLink’s soil carbon project partners “Rexton” near Goondiwindi and “Moora Plains” west of Rockhampton made history by becoming the first to receive soil carbon credits at scale. They were granted a combined total of over 151,000 ACCUs by the Clean Energy Regulator—a monumental achievement under the 2021 soil carbon method.

In a world that’s increasingly focused on sustainability, Bonnie Doone Beef and their pioneering carbon-negative soil project stand as beacons of hope, proving that serenity can indeed grow from the ground up while making our planet a better place for all.

References: ABC , Farm Online , Bonnie Doone Beef

Navigating Leave Entitlements in Agribusiness: What You Need to Know

Thu, 05 Oct 2023 04:34:08 GMT

In the realm of agribusiness, a firm grasp of leave entitlements is crucial for both employers and employees. Understanding your legal obligations as an employer and effectively communicating employee rights and responsibilities is the cornerstone of a harmonious workplace.

In recent years, there have been significant shifts in leave entitlements, accompanied by amendments to the National Employment Standards (NES). Furthermore, as the battle for top talent rages on, many employers are now offering unique types of leave, such as birthday leave, to entice prospective employees.

It’s crucial to ensure that your leave policies are up-to-date and adhere to current legal requirements.

Annual Leave

All employees, excluding casual workers, are entitled to paid annual leave. For full-time and part-time employees, this translates to four weeks of annual leave based on their regular work hours. Importantly, any awards, enterprise agreements, or other registered agreements must meet or exceed the NES requirements. It’s advisable to review the relevant modern award, enterprise agreement, or registered agreement for specific clauses concerning annual leave, as there may be additional provisions. For instance, the Pastoral Award (2020) provides for a 17.5 per cent annual leave loading entitlement.

In cases where employees accumulate excessive leave, they can be directed to take their leave. Typically, an annual leave accrual is deemed “excessive” when an employee accrues more than 8 weeks of annual leave or 10 weeks if they are shift workers.

As the year draws to a close, it’s common for employers to mandate leave during shutdown periods. Employers should consult their applicable award or registered agreement for guidance.

Personal Leave

Personal leave encompasses time off for personal illness, caring responsibilities, or family emergencies. Full-time employees are entitled to 10 sick days per year, with part-time employees receiving a pro-rata allocation. Unused sick and carer’s leave carries over to the following year.

A recurring question revolves around the notice period for taking personal leave. Employees are required to inform their employer as soon as possible when taking sick leave, even after it has commenced, such as in emergencies involving hospitalisation. Specific requirements for notice and evidence submission may vary depending on the employee’s contract, award or registered agreement. However, these requirements must always be reasonable in the given circumstances.

Changes to Parental Leave

Significant changes have taken place in the realm of parental leave, necessitating a reevaluation of your parental leave policy to ensure compliance.

All employees are eligible for unpaid parental leave after completing at least 12 months of continuous service with their employer. This includes casual employees who have worked on a regular and systematic basis for the same duration and intend to continue this arrangement if not for the birth, expected birth, or adoption of a child.

Effective July 1, 2023, parental leave can commence within 24 months following birth or placement, and flexible parental leave days have been extended to 100 days. Both parents now have access to full parental leave entitlements, irrespective of the leave taken by the other parent, and they can take this leave concurrently.

For more information on changes to Parental Leave, check out our article July 1 Changes You Need to Know for Your Agribusiness .

The Introduction of Paid Family and Domestic Violence Leave

A significant development in leave entitlements is the introduction of paid family and domestic violence leave, now incorporated into the NES.

As of June 4, 2023, all employees, including casuals, are entitled to 10 days of paid family and domestic violence leave annually. To safeguard employee privacy and security, employers are not required to display this leave entitlement, leave taken, or leave balance on pay slips. Instead, employers can categorise it as ‘special leave.’ Employees can access this leave from their first day of employment, and it renews annually on their work anniversary.

Staying abreast of these leave entitlement changes is crucial for agribusinesses to maintain compliance, foster a positive workplace culture, and attract top talent. By comprehending the intricacies of paid annual and personal leave, understanding the evolving landscape of parental leave, and embracing the introduction of paid family and domestic violence leave, your agribusiness can navigate the complex world of leave entitlements with confidence and care.

For more information on paid family and domestic violence leave, check out our article Paid Family and Domestic Violence Leave Begins 1 Feb .

For information about leave requirements and policies head to the Fair Work Ombudsman’s website .

Agflation: Production Cost Rises Squeezing UK Farmers

Mon, 25 Sep 2023 09:06:36 GMT

Up to a third of British croppers will grow fewer crops for food this year amid staggering rises in the cost of inputs, including fuel, fertiliser and energy – being termed “agflation”.

Many will switch their focus to fodder crops for livestock to reduce their reliance on fertiliser which has risen by up to 400% over the past few years.

This year, Lincolnshire grower Andrew Ward is considering using less fertiliser than normal across his 1,600 acre farm in response to growing input costs.

“If the fertiliser is too expensive and it’s not viable to apply the maximum amount, then the tonnes [of wheat] we’ll get will be less, which means there’ll be less food.”

With the price of diesel also increasing by 200%, the squeeze on profitability is placing an enormous burden on many UK farmers.

“I’ve never known farming to be so volatile and so stressful. I get up in the morning and sometimes I wonder, ‘why am I doing that?'” he said.

Pigs Might Fly (Away)

Likewise, Oxfordshire pig farmer Tom Allen said that economic conditions were putting a significant strain on the pork industry.

“We’re losing £30-£40 on every pig we produce. It’s totally uneconomic.”

The pig industry is still trying to recover from the impact of post-Brexit abattoir worker shortages which saw thousands of pigs culled and burned.

Suffering from more recent fuel and pig feed costs, Mr Allen has recently reduced his herd by a third, and laid staff off.

“What this means is there will be a shortage of pig meat coming quite quickly.”

“Prices will have to rise to cover our costs, let alone make a return on our investments. If it doesn’t, there won’t be any pig meat on the shelves at all, because the industry will just implode,” he added.

Agflation Not on Par with Food Inflation

Agflation – the new term for the inflation of farm inputs – stood at around 25% in May this year, compared with an increase in British food prices by just 8.5%. The UK Government has responded in part by releasing its new food strategy which included a £270m investment for innovations to boost yields, and a lofty target of 50% of government-procured food supplies to be locally sourced.

Some industry commentators are hopeful that food inflation may temper in the near future amid favourable growing conditions in many parts of the world.

“Supply may not be as impaired as we think because other areas will compensate for any losses from Ukraine, and it is happening across the board,” said Marc Ostwald, ADM Investor Services’ global strategist.

Australia’s predicted grain yield is one such contributor, along with the bumper corn harvest experienced recently in Brazil and easing conditions in North America.

A recent Rabobank report showed that wheat and soybean futures have softened by around 15% in June alone, along with a drop in the price of corn, coffee, sugar and cocoa.

The price of palm oil has also dropped by 30% as Indonesia increases global exports.

Sources: BBC , Bloomberg

Image: Photo by Al Mabin at Agrishots

Australia Braces for El Niño Phenomenon

Thu, 21 Sep 2023 04:41:33 GMT

After months of anticipation , The Bureau of Meteorology (BOM) has declared two major climate drivers linked to hot, dry conditions are officially underway in Australia – El Niño and a positive Indian Ocean Dipole (IOD).

The onset of two major climate events means the remaining months of 2023 in Australia are likely to be hot and dry, particularly in the eastern states.

Dr. Karl Braganza, Climate Manager of the Bureau, highlighted the consequences of these weather phenomena in a BOM media release on Tuesday.

El Niño events and positive IODs are not new to Australia; the country last experienced this in 2015. According to Dr. Braganza, nearly two-thirds of Australia’s driest years were recorded during El Niño episodes. However, he cautions that no two El Niño or IOD events and their subsequent impacts are identical.

Potential Dangers: Heatwaves and Fire Risks

El Niño conditions typically heighten the risk for more extreme temperature shifts, leading to possible heatwaves and overall hotter days. Additionally, the fire danger in south-eastern Australia increases considerably, with the IOD further amplifying the potential fire risk during springtime.

Dr Braganza said; “When [an El Niño and positive Indian Ocean Dipole] occur together, that tends to increase the severity of rainfall deficiencies.”

“Those conditions are accompanied by an increase in fire danger and extremely hot days.”

The announcement from the BOM came as parts of New South Wales were put on alert for “catastrophic” fire danger.

“While [conditions] are different to Black Summer in 2019, where we had years of preceding drought … it is drying out more rapidly than has occurred in recent years, and we are seeing that elevated risk now playing out in eastern NSW,” Dr Braganza said.

Understanding El Niño: A Significant Global Phenomenon

El Niño, a climate pattern affecting 60% of the planet and known to severely impact Australia, is a powerful force.

One of the defining attributes of El Niño is its persistence. The effects on Australia usually last between nine months and a year, with the most intense impacts occurring during the winter and spring months.

El Niño affects climates through the movement of warm waters and clouds from the western Pacific to the central region. This redistribution leads to lower rainfall and higher temperatures in Australia, which can cause droughts, extreme heat, and bushfires.

The El Niño phenomenon leaves a variety of fingerprints on the Australian climate, including:

Warmer-than-average temperatures across most of southern Australia, particularly in the second half of the year
Increased number of individual days of extreme heat, as well as increased frost risk under clear skies
Fewer prolonged warm spells for south coastal areas such as Adelaide and Melbourne
Reduction in snowfall, and the number of tropical cyclones
Late onset of the monsoon in northern Australia

In contrast to these effects, the coast of Peru and the southern United States experience opposite impacts during El Niño events.

It’s important to note that El Niño doesn’t guarantee constant dry and warm weather due to other influencing factors.

A Comprehensive Look at the Indian Ocean Dipole

Bureau Senior Climatologist Catherine Ganter said the Indian Ocean Dipole can have as large an influence on Australia’s rainfall and temperature as El Niño. When El Niño coincides with a positive IOD, the two phenomena can reinforce their dry effects, according to BOM.

“Similar to El Niño, the IOD describes a natural climate cycle brought about by sustained changes in the difference between sea surface temperatures in the tropical western and eastern Indian Ocean,” she explained.

A look at the rainfall over winter and spring during past events shows, that unlike El Niño events which mainly impact the eastern states, the IOD’s dry signal dominates South Australia, the Northern Territory, Victoria, Tasmania and parts of Western Australia.

Since records began in 1960, there have been 15 instances of El Niño and 16 positive IOD occurrences, with seven years witnessing both events at the same time.

As we prepare for the El Niño and positive Indian Ocean Dipole (IOD), it is important to focus on developing strategies to counteract their effects. It is crucial to understand the potential impact of these phenomena on climate patterns and to prepare accordingly to mitigate some of the risks they pose.

Sources: BOM , ABC

Coles in a Dairy Fix: Farmers Churn Up Opposition to Milk Factories’ Sale - The Lucas Group

Fri, 08 Sep 2023 05:10:19 GMT

Australian Dairy Farmers (ADF) is calling on the Australian Competition and Consumer Commission to block the sale of two milk factories to supermarket giant Coles.

In April 2023, Saputo announced it had sold its Laverton factory in Victoria and Erskine Park plant in New South Wales to Coles for $105 million, subject to regulatory approval.

The Australian Competition and Consumer Commission (ACCC) will decide next week if it will approve, oppose or impose extra conditions on the deal.

Rick Gladigau, president of the ADF has told the ABC that they are hopeful that the ACCC opposes the deal.

“Our concerns are losing transparency, losing the bargaining power and imbalance it can create for the farmer, and losing competition,” he said.

Coles Buys Saputo Processing Plants

In April 2023, Coles made national agribusiness news when it entered into an agreement with Saputo to buy two of their processing plants – one in Laverton, VIC and one in Erskine Park, NSW.

At the time, Australian Dairy Farmers (ADF) released a statement noting the plans “with interest and caution”.

According to their April statement, ADF was concerned with Coles holding anti-competitive market power and control. They noted that if Coles were allowed to be a processor and a major retailer the supermarket giant would have “total control of every fresh milk price within the Coles sphere of influence”.

ACCC Raises Concerns

The ACCC released a statement concerning Coles’ purchase of Saputo’s processing plants in July 2023, identifying preliminary competition concerns and releasing a Statement of Issues.

In a media release, the ACCC noted that they were considering the ADF’s concerns, looking into “whether the acquisition would give Coles the ability to influence the market in a way that is currently not possible via its current position as a retailer of dairy products and purchaser of raw milk”.

The ACCC said Coles’ acquisition of the Victorian facility was unlikely to lessen market competition. But, deputy chair Mick Keogh said he was concerned about a reduction of competition for raw milk in NSW.

“It’s a first for a supermarket to be involved in processing to this extent — and to have that degree of capacity can result in significant changes in the market,” he said.

“These plants are very important in terms of the total processing capacity available, particularly in New South Wales.”

The ACCC is worried that Saputo — one of Australia’s major dairy processors — could exit the fresh milk market in NSW, which would increase the market power of the supermarket giant.

Dairy Farmers’ Trust in Coles Not High

A lack of trust in Coles’ purchase of key fresh milk dairy factories stems from its actions during the 2011 dairy downturn, according to the ADF.

In 2011 Coles introduced $1 a litre milk, sparking a price war between major retailers that lasted for nearly a decade and had huge ramifications in the dairy industry.

“Dollar milk had a huge impact on the processors and … the farm gate price and it just destroyed what used to be a premium market,” said Mr Gladigau.

“You’re now going to have a retailer that owns from the farm gate price right the way through to the shop shelf.”

Coles also provoked the dairy industry in 2019, when a promised “full amount” of a 10c a litre increase was supposed to be passed on to farmers via their suppliers.

It took a threat of legal action from the ACCC for Coles to make good on this promise and agree to pay dairy cooperative Norco $5.2 million.

In 2018, then Agriculture Minister David Littleproud slammed both Coles and Woolworths for using milk levies as an ‘ empty media stunt ’ .

Coles Silent on Concerns

Coles hasn’t spoken on their purchase since releasing a statement to the stock exchange in July 2023.

“We will continue to work constructively with the ACCC on these issues,” the statement said.

“From Coles’ perspective, we see no lessening of competition in any relevant market, noting that Coles already acquires approximately 80 per cent of the volumes at the facilities and will provide milk processing service to Saputo Dairy Australia under a tolling arrangement.

“We remain confident that any outstanding concerns can be addressed so that the proposed transaction can proceed to completion.”

The ADF hasn’t had any direct contact from Coles about farmers’ concerns.

“But if they are going to allow this sale to happen, there needs to be things in place to make sure farmers are protected into the long term,” Mr Gladigau said.

He says this includes better protection for producers under the Food and Grocery Code, and for the code to become a mandatory set of rules between supermarkets, farmers and suppliers.

The ACCC is expected to make its decision on September 14.

Sources: ABC , ABC , Coles Group , ACCC , ACCC , Australian Dairy Farmers , Australian Dairy Farmers

Closing the Labour Hire Loophole Introduced to Parliament

Tue, 05 Sep 2023 05:22:19 GMT

The Australian government has made moves intended to “close labour hire loophole”, preventing 67,000 workers from being ‘ripped off’ by employers.

The government plans to close a loophole that allows employers to hire cheaper labour, in a series of workplace reforms it deems “life-changing”.

Under the proposed laws, companies with more than 15 workers will be required to pay labour-hire staff the same wages as those engaged under enterprise agreements.

The Fair Work Commission will be given the power to make orders forcing businesses to pay the same wage to directly employed and labour-hire workers, while also preventing them from taking action to avoid their obligation.

The new laws, if passed, won’t take effect until November 2024, allowing businesses to prepare for the new payment obligations.

Under these changes, the FWC would need to consider a range of factors, including whether the enterprise agreement would apply to the labour-hire worker if they were directly employed by the company.

A default three-month exemption period will apply, allowing for surge work and temporary replacements.

Workplace Relations Minister, Tony Burke, noted that surge work, short-term arrangements, and specialist staff may require labor hire arrangements. However, closing the loophole is important for those adversely affected by the current laws.

“These changes will affect a small number of workers. But for the workers this affects, closing this loophole will be life-changing,” Burke said.

“The Liberals and Nationals refused to close the labour-hire loophole when they were in government – and they still refuse to even acknowledge there’s a problem,” he said.

“They call it a ‘made-up issue’. It’s not a ‘made-up issue’ for the workers getting ripped off.”

The bill’s other key features centre around beefing up the commission’s powers to protect workers.

References: Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 , The Guardian

Closing Loopholes for Small Business

Tue, 05 Sep 2023 05:20:03 GMT

The Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 amends the Fair Work Act 2009 (the Act) to provide a range of measures that apply to businesses of all sizes. However, the amendments will apply differently to small businesses.

Amended Casual Employment

In order to request a change in employment status from casual to permanent, employees in small businesses must have completed 12 months of service. In larger businesses, the requirement is 6 months of service before an employee can notify their employer of a change in status. This means that they no longer meet the definition of a casual employee and can seek permanent work. It’s important to note that this notification can only be made after the specified time period has been completed.

The process to change status is entirely employee-driven and an employer’s obligation to respond will only arise if the employee provides a notification.

Small businesses (fewer than 15 employees), will continue to be exempt from the requirement to offer casual conversion to their employees.

Closing the labour-hire loophole

The measures regarding closing the labour-hire loophole won’t apply where the host is a small business employer (fewer than 15 employees).

Where the Fair Work Commission is satisfied the host is a small business employer, it will not have the power to make an order switching on entitlements and obligations under this measure.

Criminalising Wage Theft

The new rules will make it a crime to intentionally underpay employees. Honest mistakes won’t land you in legal trouble. Small businesses can get some relief in two ways:

Voluntary Small Business Wage Compliance Code: Small businesses that may have accidentally underpaid their workers won’t face criminal charges if they follow a new code. This code will be created by the government in collaboration with employer and employee groups.
Cooperation Agreements: If someone, like an employer, confesses to conduct that could be wage theft, the Fair Work Ombudsman might agree not to pursue criminal charges. They’ll look at various factors before deciding.

Civil Penalties

The most significant fines for breaking the rules are getting bigger, and recklessness can now be considered a serious violation. The court still has the power to lessen the penalties based on the circumstances, such as the business’s size and the amount underpaid.

Sham Contracting

Employers accused of wrongly classifying employees as independent contractors must now prove they genuinely believed they were doing the right thing. Courts will consider factors like the size and nature of the employer’s business when determining if this belief was reasonable.

References: Department of Employment and Workplace Relations Factsheet

Criminalising wage theft, civil penalties and sham contracting

Tue, 05 Sep 2023 05:17:20 GMT

The F air Work Legislation Amendment (Closing Loopholes) Bill 2023 amends the Fair Work Act 2009 to introduce a criminal offence for intentional underpayment of employees’ wages and certain entitlements and amends the civil penalties regime to provide for a graduated scale of penalties and enforcement tools.

Wage Theft

Employers who engage in deliberate conduct that leads to underpayment of their employees will face prosecution under the new law. The law will cover employee entitlements as per the Act but will not extend to contractual entitlements or superannuation since the latter falls under tax legislation.

The offence will carry a maximum of 10 years’ imprisonment, and/or a maximum fine of the greater of:

3 times the amount of the underpayment, if the court can determine that amount, or
for an individual, 5,000 penalty units ($1,565,000), or for a body corporate, 25,000 penalty units ($7,825,000).

When an employer is convicted of 2 or more offences arising from a course of conduct, it will be considered a single offence for sentencing purposes.

The Fair Work Ombudsman (the FWO) will be responsible for investigating the new criminal offence. The FWO will then refer matters to the Australian Federal Police or the Commonwealth Director of Public Prosecutions for consideration, and prosecution where appropriate.

The proposed amendments will also include pathways to encourage employers to self-disclose conduct that may amount to wage theft such as intentional underpayment of workers. In return, employers would not be referred by the FWO for criminal prosecution for wage theft.

These pathways include:

A Voluntary Small Business Wage Compliance Code (the Code) will be developed by the government in partnership with employer and employee groups. Evidence of compliance with the Code will ensure that the FWO will not refer conduct for criminal prosecution.
The option for the FWO to enter into a cooperation agreement with a person, if the person discloses that they have engaged in conduct that may amount to the commission of the wage theft offence. The FWO may agree not to refer the conduct for prosecution, after assessing the employer against a non-exhaustive list of factors.

The FWO may still take non-punitive action (such as issuing a compliance notice that workers be re-paid), or it may take civil action, if that is appropriate. An employee or employer organisation may also take civil action in relation to a contravention.

Increasing civil penalties

The proposed amendments will increase the maximum civil penalties for standard civil breaches and serious contraventions of civil remedy provisions.

The suggested amendments modify the threshold for what constitutes a severe infraction. Previously, this was restricted to cases where the violation was knowingly and systematically committed.

Under the proposed changes, this threshold will apply to violations that are either knowingly or recklessly committed. This change ensures that civil violations that are considered severe are also applied to mid-tier violations. Additionally, these changes will operate in conjunction with the proposed criminal offence of wage theft, enabling more comprehensive enforcement of the law.

For civil contraventions related to underpayment (including sham contracting, unlawful job advertisements and records misconduct), maximum penalties will increase fivefold. Maximum penalties for these provisions will be the greater of:

300 penalty units ($93,900) for individuals (currently 60 penalty units or $18,780), or 1,500 penalty units ($469,500) for bodies corporate (currently 300 penalty units or $93,900)
three times the amount of any associated underpayment, if the applicant seeks this kind of penalty.

For serious contraventions, maximum penalties will increase to the greater of:

3,000 penalty units ($939,000) for individuals (currently 600 penalty units or $187,800), or 15,000 penalty units ($4,695,000) for bodies corporate (currently 3,000 penalty units or $939,000)
three times the amount of any associated underpayment, if the applicant seeks this kind of penalty.

Sham contracting

The proposed changes will make it harder for employers to misclassify workers as independent contractors when they’re actually employees, a practice known as ‘sham contracting.’

To prove they were not engaged in sham contracting, employers will need to show they genuinely believed the contract was for services. This is a more straightforward requirement compared to the current one, which simply requires that the employer didn’t know or wasn’t careless about whether the contract was for employment or services.

These changes are in line with recommendations from reviews of the Fair Work Act, a report by the Productivity Commission on workplace rules, and the findings of the Black Economy Taskforce. These reports found that the current defence of ‘recklessness’ is too lenient, making it too easy for employers to avoid penalties for sham contracting.

What does this mean for you?

If you make an honest mistake or miscalculate wages, you won’t face punishment under the wage theft law. However, if employers intentionally pay their workers less than they should, they could face criminal charges, including possible jail time.

The new rules aim to provide some comfort to small business owners who may have unintentionally underpaid an employee while genuinely trying to follow the rules.

If someone reports a potential violation to the Fair Work Ombudsman (FWO), there may be a chance to work things out through cooperation agreements. However the FWO will consider factors like the seriousness of the issue and the person’s cooperation before deciding. If an agreement is reached, the FWO won’t take legal action.

Civil violations that are considered reckless could result in more significant penalties, with no need for the violation to be part of a broader pattern.

For employers who wrongly classify employees as independent contractors, they now need to prove they genuinely believed they were right in doing so. Simply claiming ignorance or making unreasonable mistakes won’t protect them from liability for misclassification.

Small businesses have special exemptions under the proposed changes. You can view them here .

References: Department of Employment and Workplace Relations Factsheet

Labor Introduces Sweeping Closing Loopholes Reforms

Tue, 05 Sep 2023 05:13:54 GMT

The government has introduced its closing loopholes industrial relations bill, but what changes will this mean for employers?

The Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 is the result of extensive government consultation with Australian Business Lawyers and Advisors, The Australian Chamber of Commerce and Industry, Australian Business Industrial, and Business NSW. It aims to close loopholes that undermine pay and conditions and to improve work health and safety laws in the Commonwealth jurisdiction.

Casual Employment Changes

The Closing Loopholes Bill will introduce a new definition of casual employment into the Act.

Commencing 1 July 2024, under a new s 15A of the Act, an employee is a casual employee of an employer only if:

(a) The employment relationship is characterised by an absence of a firm advance commitment to continuing and indefinite work; and

(b) The employee would be entitled to a casual loading or a specific rate of pay for casual employees under the terms of a fair work instrument if the employee were a casual employee, or the employee is entitled to such loading or rate of pay under the contract of employment.

This new definition of casual employment means that the law will look beyond any written contract, making an independent assessment of the ‘real substance, practical reality and true nature of the employment relationship’ to determine employment status.

Casual to Permanent Employment Conversion

The proposed bill makes allowances for the changing nature of employment, recognising that the nature of the employment relationship could potentially change over time from a casual to a permanent employee. The Closing Loopholes Bill contains a new conversion process, where casual employees remain so until the occurrence of a ‘specified event’.

This process is in addition to existing casual conversion laws which require employers to notify employees of their rights to convert.

A specified event occurs when the employee elects to change or convert their employment to a permanent status. Casual employees will be able to give written notification that they believe they no longer meet the requirements set out in the casual employment definition (for small business employees after 12 months, for other employees 6 months) and if they have not previously refused an offer to convert and meet other eligibility criteria discussed further below.

This part of the Bill is intended to protect ‘employee choice’, such that no employee will be forced to convert from casual employment unless they choose to.

New Definitions of Employment

The Closing Loopholes Bill will also introduce a new definition of employment into the Act.

Commencing from Royal Assent, as a new section15AA, the ordinary meaning of employee and employer will be defined as follows:

for the purposes of this Act, whether an individual is an employee of a person within the ordinary meaning of that expression or whether the person is an employer of a person within the ordinary meaning of that expression is to be determined by ascertaining the real substance, practical reality and true nature of the relationship between the individual and the person
for the purposes of ascertaining the real substance, practical reality and true nature of the relationship between the individual and the person:

the totality of the relationship between the individual and the person must be considered; and
in considering the totality of the relationship between the individual and the person regard must be had not only to the terms of the contract but also to other factors relating to the totality of the relationship including but not limited to how the contract is performed in practice.

This means that to determine whether a person is an employee or a contractor, it will no longer be enough to simply look at the terms of the written contract.

This will likely have the effect of ‘reviving’ the traditional approach to how the ‘multifactorial’ test for determining whether a person is an employee or independent contractor used to be applied.

The transitional provisions contained in the reforms indicate that ‘Back-pay’ for unpaid entitlements will not arise for those workers who were contractors under the old version of the Act and will change in status to employees because of the new amendment. However, for such workers, employment liabilities will commence accruing on the commencement of the new provisions.

Regulation of the “Gig Economy”

From 1 July 2024, the Closing Loopholes Bill will introduce new powers for the Fair Work Commission to regulate Employee-like Workers and the ‘Gig Economy’.

The new ‘employee-like’ jurisdiction will regulate ‘Employee-like workers’ performing ‘services contracts’ for ‘digital labour platform operators’.

The regulatory changes will apply to areas like app-based meal delivery or driving that processes the payments in-app, but not forums that do not process payments, like Facebook Marketplace.

Gig Economy regulation will allow the Fair Work Commission to apply Minimum Standards Orders and Guidelines to digital labour platforms and resolve disputes.

Road Transport Reform

Closing Loopholes Bill will also change the Fair Work Act 2009 (Cth) (Act) for road transport workers, defined as the industries covered by:

the Road Transport and Distribution Award 2020
the Road Transport (Long Distance) Award 2020
the Waste Management Award 2020
the Transport (Cash in Transit) Award 2020
the Passenger Vehicle Transportation Award 2020,
any other industry (however described) prescribed by the regulations.
It will introduce new powers for the FairWork Commission to regulate road transport contractors – workers who have not traditionally fallen within their jurisdiction.

The changes will apply to workers who are either:

an individual who is party to a services contract;
if a body corporate (i.e., Pty Ltd company) is the party to the services contract, an individual who is a director of the body corporate or family member of a directors and who perform work under the contract;
if a trustee is a party to a services contract in their capacity as a trustee, an individual who is a trustee of the same trust and performs work under the contract; or
If a partner in a partnership is party to a services contract, an individual who is a partner in the same partnership and performs work under the contract.

This aims to capture workers like traditional ‘owner-drivers’ within the category of work regulated by Chapter Six of the Industrial Relations Act 1996 (NSW).

Unions welcomed the bill but opposed concessions watering down its promise of same job same pay in the labour-hire industry , including the blanket exemption for small businesses.

References: Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 , ABLA , ABLA , ABLA

El Niño Not Declared, But Eastern States Looking Dry Nonetheless

Thu, 10 Aug 2023 05:31:52 GMT

Even as the Bureau of Meteorology holds off on declaring an El Niño event for 2023, we’re already seeing a winter season marked by record-breaking warm and dry conditions.

Some regions in Victoria are experiencing their driest winter in well over a hundred years. Over in New South Wales, the state’s Department of Primary Industries is already declaring certain sections of the state drought-stricken.

El Niño and Drought Concerns Loom Over Australia’s Rainfall Patterns

Recent weather patterns and predictions for the coming months have raised concerns about the likelihood of both El Niño and drought events.

Although the overall July rainfall for Australia was slightly above the 1961-1990 average by 1%, a closer look at the distribution unveils a tale of contrasts. The southern two-thirds of Western Australia, most of South Australia, eastern New South Wales, Victoria, and eastern Tasmania experienced below-average rainfall, setting the stage for potential water scarcity issues.

Since May 2023, extensive areas with severe rainfall deficiency have emerged across the southwestern half of Western Australia and the eastern coast of New South Wales.

This deficiency, which falls within the lowest 5% of historic observations since 1900, raises alarms about the prospect of drought conditions. The situation is exacerbated when considering the period since December 2022, with parts of southern Queensland, the northeastern quarter of New South Wales, and the southwest of Western Australia experiencing serious deficiencies, ranking in the lowest 10% of observations since 1900.

BOM senior climatologist, Jonathan Pollock, told the ABC that climate modelling had predicted changes in Indian Ocean temperatures that, coupled with El Niño, would begin to affect the country over the next few weeks or months.

Records Broken Over Winter

Record-breaking trends continued in July, particularly in the vast majority of East Gippsland. Gabo Island, situated off Victoria’s far eastern point, saw its lowest July rain tally in a 163-year record history.

Jackson Pollock noted that this year delivered Victoria’s sixth-warmest July for maximum temperatures in 114 years of data with Gippsland and parts of north-eastern Victoria experiencing the most extreme weather.

Parts of New South Wales Already Declared in Drought

In New South Wales, the Department of Primary Industries has declared parts of the Clarence, Mid-Coast, Dungog and Port Stephens local government areas to be in drought.

Significantly, for the second consecutive month, South Casino finds itself under drought classification.

Worryingly, the drought’s continued impact now stretches to include parts of the North Coast and Hunter regions, also spanning across sections of the Northern Tablelands, North West, and South East regions.

This sudden onset of drought is a sharp 180 from last year when floods devastated many parts of the state. One of the driest regions is the Northern Rivers, where areas near flood-ravaged Lismore have slipped into drought.

Anthony Clark, from the Department of Primary Industries, forecasted a worrying outlook: conditions exacerbating further as we approach spring and summer.

“That region seems to be faring the worst out of all the regions we’ve been monitoring,” he said.

“You’ve got quite a severe rainfall deficit.

“If you look at the last 12 months, it’s actually sitting well below the fifth percentile, which is the lowest 5 per cent in the last sort of 100 years.”

Challenging Outlook Ahead: August to October Weather Forecast

The long-range forecast for the period spanning August to October, issued on 3 August 2023, paints a complex picture of Australia’s weather landscape.

Brace for drier conditions as below-median rainfall is anticipated, with a likelihood ranging from 60% to greater than 80% for much of the nation. But it’s not just the rain that’s taking a hit – temperatures are set to soar.

Prepare for above median maximum temperatures, a trend that holds a very likely probability (greater than 80% chance) across nearly all of Australia.

Even the nights won’t offer much respite, as minimum temperatures are expected to range from likely to very likely (60% to greater than 80% chance) to be above the median for almost the entirety of the country.

In tackling this complex interplay of climatic conditions, staying informed and prepared becomes our best course of action as we ready ourselves for the challenging weather patterns on the horizon.

References: BOM , ABC , ABC

A Day in the Life of an Agricultural Recruiter

Thu, 10 Aug 2023 05:27:19 GMT

If you’ve ever wondered what it’s like to be an agricultural recruiter, today is your lucky day. We’re going to give you a glimpse into the day-to-day life of our dedicated professionals who work tirelessly to match the right people with the right opportunities in this vital sector of our fair country.

7:30 am: It’s office time! Agricultural recruiters dive into the mass of emails, phone calls, and paperwork that drives the industry. From job orders to client requests, no detail is too small or too big for our meticulous attention. They also review industry articles, social media updates, and press releases within the Agribusiness sector to maintain critical industry knowledge needed to excel in their professions!

The day typically starts with checking my email and voicemail. We often have messages from candidates who are interested in learning more about the open positions we have. We also have messages from clients who are looking to fill specific roles.

8:30 am : After a quick break for a coffee (or cuppa), it’s go time again! It’s time to start working on candidate pipelines. This involves updating the database of candidates, as well as reaching out to candidates who we think might be a good fit for a particular role.

9:30 am : We’ve got to fit in time to connect with our vast network of farmers, production managers, and other industry professionals all across Australia. Having a finger on the pulse of the industry means we’re always up to date with the latest happenings, from technological advancements to changes in government policies.

10:30 am : This is where the magic happens–interview time. Agricultural recruiters dedicate themselves to finding top-notch talent. We conduct thorough and insightful interviews, getting to know each candidate well beyond just their work history. After a solid yarn with a candidate, we take the time to thoroughly write up interview notes to send to the client.

12:30 pm : Refuel and regroup! Recruiting can be hungry work, and with the agricultural industry being so essential to our nation’s economy, it’s important to have energy and focus throughout the day. Grabbing a bite to eat and taking a breather helps us recharge to face the rest of the day head-on.

1:00 pm : Back at it with client meetings and recruiting strategy sessions. Ag recruiters spend the afternoon cementing relationships with our clients, understanding their specific hiring needs, and crafting customised strategies that will deliver successful outcomes tailored to each unique circumstance.

2:00 pm : No hiring process is complete without referee checks! After confirming with a candidate that they’ve warned their references of our impending check-in, we get on the blower. This one gets written up too, a thorough process is a good process.

3:00 pm : Want to be a part of the vital agriculture and production industry? Ag recruiters are also evangelists, spreading the word about what makes this sector unique and attractive to professionals looking for a challenging and rewarding career.

5:00 pm : The sun begins to set, but our day isn’t over. Ag recruiters finish up with candidate follow-ups, emails, and final touches on job orders. We’re determined to leave no stone unturned in our quest to secure the best possible opportunities for our clients.

5:30 pm : The day may be drawing to a close, but our passion for the agriculture and production industries never wanes. Throughout Australia, as the evening stars begin to blanket the sky, agricultural recruiters are already pondering the discoveries and challenges that await tomorrow.

In the life of an agricultural recruiter, each day is a new opportunity to connect dedicated professionals with roles that contribute to the growth and success of Australia’s rural communities.

Murray-Darling Basin Plan to Receive Time Extension

Wed, 26 Jul 2023 05:34:22 GMT

The $13 billion Murray-Darling Basin Plan will not be completed on time, with the Murray-Darling Basin Authority advising that full implementation will not be possible by 30 June 2024.

Federal Water Minister Tanya Plibersek, has concluded that “we have to extend the time frame”, confirming that the Federal Government is “determined to deliver the whole of the Murray Darling Basin Plan”.

The plan is predicted to fall hundreds of gigalitres short when it hits its mid-2024 deadline, with the Minister stating the plan is likely to fall around 750GL, 300,000 Olympic-size swimming pools, short.

MDBA advice states that very little progress has been made in achieving the 450 GL/y efficiency target. Positing that this water will not be recovered by 30 June 2024 as required under current settings.

In a statement releasing the advice, the MDBA chair Sir Angus Houston said he had told Minister Plibersek that, “full implementation of the Basin Plan will not be possible by June 30, 2024”.

“Implementation of the Basin Plan is at a critical juncture. It is important that the challenges inhibiting the full delivery of the Basin Plan are quickly addressed to provide a clear pathway forward,” Sir Angus said.

Where is the shortfall?

In a national address last November, Chief Executive of the Basin Authority, Andrew McConville, warned that less than half the water from state projects was expected to be recovered on time.

The recent MDBA release and advice reveal that only 5 of 20 water resource plans in New South Wales (NSW) have been accredited. These plans are more than 4 years behind schedule, and NSW still has 7 plans to submit for assessment by the MDBA.

Additionally, critical measures for improving outcomes in the Northern Basin will not be delivered on time. With only 2 of 6 on track for on-time delivery.

The implementation of the Basin Plan has reached a critical point. Challenges hindering the full execution of the Basin Plan need to be addressed urgently to establish a clear way forward.

With a changing climate, implementing the Basin Plan remains central to giving our rivers and the communities that depend on them the best chance of a healthy future. Our best chance to deliver rivers, for generations.

Behind schedule, but still achieving.

In the MDBA’s advice to Minister Plibersek, the Authority recognises the significant achievements over the past decade of implementation.

Through water recovery under Bridging the Gap, 98% of the surface water target has been transferred to entitlements with the Commonwealth Environmental Water Holder (CEWH).

This water has been used by the CEWH, in collaboration with state water holders and operators, to deliver environmental water to ecologically significant sites and for the benefit of the whole system. These watering events have been critical throughout droughts and between major floods to sustain these environments, maintain system connectivity and kept the River Murray connected to the sea.

The MDBA also points out that 18 water resource plans have been accredited across all 5 Basin jurisdictions. According to them, this has brought the sustainable diversion limits into effect in these areas, allowing for compliance monitoring and enforcement by the Inspector-General of Water Compliance.

They report that in most catchments, Basin states are managing their water allocations and arrangements to keep use under the consumptive limits.

Timelines still to be set

The Federal Government will work with basin states to establish new timelines and delivery dates for projects. These timelines are not going to be overly extensive, warned Minister Plibersek.

“We’re certainly not talking about five or 10 years,” she said.

“What I won’t do is give an open-ended opportunity to the states to delay and delay. We’re talking about some extensions with an increased expectation of delivery. What I want to see from the state and territories is that if they do get extra time, they will deliver the plan. It’s not an option not to deliver the plan.”

Basin state water ministers have indicated that extensions of timelines will be welcomed by NSW and VIC and accepted by SA.

Read the full MDBA Advice here.

Sources: ABC , ABC , Farm Online , Department of Climate Change, Energy, the Environment and Water , Murray-Darling Basin Authority

Productivity in a Hybrid Team: A Guide to Thriving in the New Norm

Thu, 13 Jul 2023 05:42:13 GMT

In the ever-evolving landscape of agriculture and production, embracing change is not an option—it’s a necessity.

Today, with the rise of digital technology, traditional work setups have transformed, giving birth to the era of hybrid teams. Here at The Lucas Group, we understand the opportunities and anxieties that such transition brings, and we are committed to guiding our partners through the journey.

What’s In A Hybrid Team?

A hybrid team is a blend of on-site and remote workers collaborating towards a shared goal. In the years since 2020, it’s become apparent that hybrid teams represent the future of work. However, the road to adapting can pave a path with numerous challenges.

The Power of Communication

In the paddock, we understand the importance of clear communication. In a hybrid team, it’s no different. The radical difference in environments can make communication difficult, potentially leading to misunderstanding and lack of synergy. This calls for strong, decisive leadership.

Practices such as setting regular check-ins with the team and conducting open forum discussions can bridge the distance and foster unity. Establish a team culture wherein everyone’s ideas and perspectives are valued, harvesting an inclusive environment.

Boost productivity with trust

Trust is the cornerstone of productivity. A recent study by Buffer revealed that 97% of workers wish to continue the remote work setup in some capacity for the rest of their careers. This showcases employees’ drive and responsibility, given the right amount of trust and autonomy.

Leaders must establish trust with their team by clarifying expectations and allowing their team to take charge. Remember, the field of work isn’t solely within four walls—it extends as far as our workers’ passion and commitment can reach.

Embrace Technology

One can’t overlook the role of technology in catalysing productivity for hybrid teams. Tools for project management, time tracking, and simultaneous collaboration can streamline operations and reduce friction.

Investing in Growth and Continuous Learning

In agriculture, as in agribusiness, growth is vital. Continuous learning and skill development should be a part of the hybrid workforce blueprint. Invest in training and development opportunities that cultivate skillsets beneficial to the team and the company.

Nurturing productivity in a hybrid team doesn’t have to be a daunting task. As long as a spirit of partnership, trust, open communication, and continuous learning are present, the seeds of success will surely grow.

Sources: Buffer , BBC , The HR Director

Australian Farmers Leverage Adaptation and Innovation Against Climate Change

Thu, 13 Jul 2023 05:38:51 GMT

Recently, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) released its latest report, echoing one of our core beliefs – the enduring resilience and adaptability of the Australian farming community.

Resiliency Against Climate Threats

There’s no denying the toll climate change has been taking on Australian agriculture. Farmers are grappling with soaring temperatures and dwindling winter rainfall, making it increasingly challenging to maintain productive yields. Yet, in true Aussie spirit, farmers are pushing back against these challenges with resilience and innovation.

According to the latest ABARES report, climate-adjusted productivity in Australia’s broadacre industries has witnessed an annual growth rate of 0.6% from 1988–89 to 2021–22. In the face of climate vulnerability, grain production industries displayed an impressive annual productivity increase of 1.4%.

Necessity Fuelling Innovation

Despite a challenging climate, productivity growth hasn’t been hampered – a testament to the adaptability and tenacity of our farmers. Notably, this success has not been achieved by chance or simple weather endurance alone.

“Significant advancements in technology and management practices were essential in achieving this result and we need that to continue,” shares Dr Jared Greenville, ABARES Executive Director.

Confirming the integral role of continual investment in research and development, ABARES reports have found that every dollar invested in these fields yields approximately eight times that in agricultural Gross Value Added.

The Trend towards Larger Farm Businesses

An additional finding from the ABARES report points towards an ongoing shift in business size within the agricultural sector. The last three years to 2021–22 have seen a trend of fewer but larger farm businesses. The most significant 10% of broadacre farms now contribute around half of the total output, while the smallest half only produces around 10% of the total.

This shift in farm size has significant implications, driving the industry’s performance more than ever. As farm size and output continue to grow in tandem, the influence of larger farms on industry trends and success will undoubtedly increase.

At The Lucas Group, we understand the challenges of operating in an evolving agricultural landscape and offer support to all our peers irrespective of farm size or production style. We celebrate the resilience and innovation that our Australian farmers continue to showcase and are committed to sustainable and adaptable farming practices.

For dedicated partners in a world of changing demands and expectations, remember, we grow together.

Sources: Department of Agriculture, Fisheries and Forestry , ABARES , ABARES

US Approves First Lab-Grown Meat

Wed, 28 Jun 2023 05:49:48 GMT

The United States has recently approved the sale of lab-grown meat, making it the second nation to do so after Singapore. The green light from regulatory authorities marks a historic moment for the scientific and agricultural industries.

Lab-grown meat, also known as cell-based or cultured meat, is produced through a process in which animal cells are harvested and cultivated in a controlled environment, making it possible to create muscle tissue without the need for raising and slaughtering animals. With mounting concerns about the environmental impact of animal agriculture and the increasing demand for protein-rich foods, many companies have been investing heavily in the research and development of lab-grown meat alternatives.

The US Food and Drug Administration (FDA) and the Department of Agriculture (USDA) have recently given their approval for the first cultured meat product to be sold in the US market. Upside Foods and Good Meat became the first companies to complete the approval process in the US last week, planning to serve their product in high-end restaurants before scaling production to reach a lower cost for grocery stores, according to Reuters.

The approval paves the way for more lab-grown meat products to enter the market. As the approval of lab-grown meat in the US marks a significant step forward, other countries are also exploring the possibilities of this innovative food source. For instance, Australia is considering the introduction of cultured meat products to compete with plant-based meat alternatives.

Alternative proteins group Food Frontier said four companies are working in the cultivated meat ecosystem in Australia and New Zealand.

“Food Standards Australia New Zealand, FSANZ, is in the process of reviewing an application from Australian cultivated meat company Vow to sell cultivated quail,” executive director Dr Simon Eassom said.

He added that the US approval would boost the morale of Australia’s cellular agriculture sector and other food innovators working to introduce greater protein diversity.

“With our highly active food systems innovation and technical initiatives, Australia has the potential to lead the way on the global stage. If approval is granted in Australia, we will be at the forefront of the international race to develop alternative and lucrative, solutions for the ever-growing protein demands worldwide.

“Cultivated meat offers consumers additional choices and helps ensure our food security as we move towards a more sustainable future food system.”

As the industry continues to evolve, the availability and affordability of lab-grown meat are expected to increase, forging a new path in the realm of sustainable food consumption and environmental stewardship.

Sources: Beef Central , Reuters , ABC , CNN

July 1 Changes You Need to Know for Your Agribusiness

Wed, 28 Jun 2023 05:46:45 GMT

We’ve collected information for you on some of the July 1 changes you need to know to keep your agribusiness running smoothly.

It’s been a big year for industrial law changes, with the ‘ Same Job, Same Pay ’ Policy and significant reforms to the Fair Work Act 2009 (Cth) (FW Act) – the Secure Jobs, Better Pay Bill , not to mention the Anti-Discrimination and Human Rights Amendment (Respect@Work) Bill 2022.

Even more key changes are set to come into effect on July 1. Here’s what they mean for your agribusiness and employees.

Super Guarantee Increases

It’s time to get your payroll sorted for the increase to the superannuation guarantee on 1 July 2023. This year’s increase will see superannuation increase from 10.5% to 11%.

It’s also good to make sure you’re across the gradual increases, which will see the super guarantee reach 12% by July 2025.

Wage Increases

From 1 July wage increases for minimum wage earners and award employees will come into effect, following a ruling from the Fair Work Commission.

For employees who aren’t covered by an award, the minimum wage will go up from 1 July to $882.80 per week, or $23.23 per hour, and will apply from the first full pay period starting on or after 1 July 2023.

For employees covered by an award, minimum award wages will increase by 5.75%, also applying to the first full pay period starting on or after 1 July 2023.

Paid Parental Leave Changes

From 1st July Parental Leave and Dad and Partner leave entitlements will combine up to a single payment of 20 weeks at the national minimum wage rate, enabling both parents to take parental leave simultaneously. From 1 July 2024 to 1 July 2026 this entitlement will increase further by 2 weeks per annum up to a total of 26 weeks. A threshold limit of $156,647 for individuals and $350,000 for families will apply.

Either parent will be able to claim parental leave and two parents will be able to take leave simultaneously. Parental Leave Pay will be allowed to be taken in blocks as small as one day at a time, with periods of work in between within 2 years of the date of birth.

Flexible Working Arrangements

Employees have the right under the FW Act to request flexible working arrangements in some circumstances. From 6th June, additional consultation requirements will apply. The employer must also provide more detail about the reasons should a flexible working request be refused.

The legislation also paves the way for employees to lodge an appeal of the decision with the Fair Work Commission which will be able to arbitrate an outcome if an agreement cannot be reached.

Pay Secrecy Changes

New regulations by the Fair Work Commission in Australia promote workplace transparency and fairness by addressing pay secrecy. Since December 7, 2022, employees have the right to share or withhold pay information and inquire about it from colleagues. Employers cannot penalise employees for exercising these rights and pay secrecy terms in contracts after that date are unenforceable. Starting from June 7, 2023, pay secrecy terms will be prohibited in all employment contracts, with potential penalties for non-compliance.

The upcoming July 1 changes hold significant implications for your agribusiness and its employees. Stay informed and adapt to these changes to maintain a successful and compliant agribusiness.

For information about all the July 1 changes head to the Fair Work Ombudsman’s website .

Sheep Facial Recognition: A Game-Changer for the Australian Sheep Industry?

Wed, 07 Jun 2023 05:51:58 GMT

The Australian sheep industry is about to witness a major technological trial, as Genesmith gears up to launch its innovative sheep facial recognition trial. This cutting-edge technology promises to revolutionise sheep management, using AI to match ewes with their lambs.

What is Genesmith?

Genesmith is a New Zealand company with a mission to harness the power of technology to improve livestock management and productivity. They focus on research and development and are pioneers in animal facial recognition. Their advanced system uses algorithms and machine learning to identify individual sheep.

Genesmith managing director Mark Ferguson said his company’s facial recognition technology aimed to identify a flock’s most productive ewes and, in turn, improve their bloodlines.

Australian Sheep Facial Recognition Trials

The highly anticipated trial is set to take place in Australia later this year, aiming to showcase the potential of Genesmith’s facial recognition technology in real-world farming situations.

Dr Ferguson said the technology could detect and identify animals from more than 100 metres away and that the camera could scan 360 degrees around a paddock, learning the features of the sheep to identify them later.

“One camera or a couple of cameras can handle lots of animals compared to having to put one thing on individual animals, which works beautifully with cattle but the price point is a bit steep with sheep,” he noted.

Dr Ferguson said the trial of the technology would investigate the practicality and cost points among other things.

“We have no interest in making a technology that doesn’t serve farmers,” he said.

“The idea is to make sure it’s practical and that the technology really will change the game.”

With rapid developments in technology and the enthusiastic adoption of on-farm tech , it will be interesting to see if AI facial recognition is the way of the future for sheep farmers.

Sources: ABC , Genesmith

Highs and Lows of the 2023-24 Budget for Agriculture

Thu, 11 May 2023 05:59:57 GMT

The 2023-24 Budget has been released this week, with Treasurer Jim Chalmers announcing millions for biosecurity, climate-smart agriculture and disaster resilience, but cutting almost $900 million in water infrastructure.

The 2023/24 budget also increased the instant tax write-off for small businesses, gave biosecurity a $1 billion boost and increased welfare payments.

Biosecurity Front Of Mind In 23-24 Budget

The Albanese Government has announced a $1 billion investment in biosecurity, dubbing it the Sustainable Biosecurity Funding model.

The Passenger Movement Charge will increase by $10 from mid-next year and will apply to all passengers departing Australia.

International deliveries of “low value cargo” – which are items valued at $1000 or less – will also be hit with a new biosecurity levy, which is expected to be around 40 cents per item. The new measure is expected to reap $81.3m over three years.

The biosecurity measures give with one hand but take with the other for farmers, where a biosecurity protection levy on Australian producers of agricultural, forestry and fishery products will be implemented from 1 July 2024. The levy will be “set at a rate equivalent to 10 per cent of the 2020–21 industry‑led agricultural levies”.

Welfare Increase To Help Rural & Regional Families

About 400,000 regional and rural residents will benefit from the budget’s cost-of-living relief, which includes raising welfare payments by $40 a fortnight, increasing rent assistance by 15 per cent and raising the cut-off age for payments for children of single parents from eight to 14.

Swings & Roundabouts For Water

Suspicions that Labor would make significant cuts to the water infrastructure budget have been realised, with Dungowan Dam ($595m), Emu Swamp Dam ($162.5m), the Southern Forests Irrigation Scheme ($39.7m), the Fingal Irrigation Scheme ($35m) all being scrapped. The government deferred a decision on the $19m Wyangala Dam wall raising and the Hughenden Irrigation Scheme project, until after the planning work is completed.

About $200m of the funding will be reallocated to fund three water infrastructure projects; Northern Midlands Irrigation Scheme ($109m), Sassafras-Wesley Vale Irrigation Scheme ($62.1m) and the Quality Water for Wannon project ($26.1m).

However, Labor will deliver on an election commitment to incorporate the latest climate science into the management of the Murray-Darling Basin Plan. Announcing nearly $150m to begin the first statutory review of the plan, with updated science to “future proof” the plan against the impacts of climate change.

They also plan to make the water market more transparent. Investing $32.7 million, which includes a public website that publishes live water market updates.

Instant Write-Offs Increase

Starting July 1st, equipment eligible for instant tax write-offs or temporary full expensing must cost $20,000 or less. This replaces the previous arrangement of unlimited pricing introduced during the COVID-19 pandemic.

It is, however, a massive increase on the previous instant-tax write-off cap of $1,000.

While the $20,000 cap may not have been as high as some were hoping, farmers will also have access to a second 20 per cent instant asset depreciation option if their purchase qualifies as an energy efficiency asset investment (worth less than $20,000).

Key agriculture, forestry and fisheries measures in the Budget include:

$145.2 million upgrade to digital biosecurity services through a Simplified Targeting and Enhanced Processing System. This is a program of work to bring our cargo management systems into the modern digital age, reducing costs and delays for industry and government. This will free up biosecurity workers for other jobs and reduce congestion at the border.
$40.6 million to continue the Indigenous Ranger Biosecurity Program in Northern Australia – a key part of frontline biosecurity monitoring, detection and response in our north.
$302.1 million over five years to support climate-smart agriculture through the Natural Heritage Trust – helping farmers transition to a low emissions future and strengthen agricultural sustainability.
$38.3 million for ABARES to improve the collection, analysis and sharing of data on the impact of climate change and low emission technology on agriculture, to assist policy making and farmers’ decision making.
$127 million to the Department of Agriculture, Fisheries and Forestry – a one-off payment in 2022-23 to ensure the viability of the Department.
$5 million to develop a renewed Australian Animal Welfare Strategy – to deliver on the Government’s election commitment to update and enhance a national approach to animal welfare.
$18m will be used to increase the integrity of the Australian carbon credit market.
An additional $166.7m will go towards the Pacific Australian Labour Mobility (PALM) scheme.
National Soil Action Plan will receive a $20m boost.

Labor will continue forging ahead with its decision to phase out the live sheep exports, with $5.6m to establish an independent panel to oversee the assessment and consultation process.

Sources: Farm Online , Farm Online , Farm Online , Senator the Hon Murray Watt Minister for Agriculture, Fisheries and Forestry , Sentinel Times , Sky News

Employers Will Be Required To Pay Superannuation On Payday

Wed, 03 May 2023 06:09:03 GMT

Another employment reform is on the horizon, with the government announcing a change requiring superannuation to be paid on payday.

The reform is slated to come into effect on 1 July 2026 and is set to benefit the retirement incomes of millions of Australians.

Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones give the example of a 25-year-old median income earner currently receiving super quarterly and wages fortnightly. According to them, this individual could be around $6,000 or 1.5 per cent better off at retirement.

The ministers believe that this will benefit bosses too, claiming that more frequent super payments will make employers’ payroll management smoother with fewer liabilities building up on their books.

Payday super will be intended to make cash flow planning easier on businesses and to make it easier for employees to keep track of their payments. Which, in turn, should make it harder for them to be exploited by disreputable employers.

While most employers do the right thing, the Australian Taxation Office (ATO) estimates $3.4 billion worth of super went unpaid in 2019–20.

The ATO will receive additional resourcing to help it detect unpaid super payments earlier and the Government will set enhanced targets for the ATO for the recovery of payments.

This change will strengthen Australia’s superannuation system and help deliver a more dignified retirement to more Australian workers, claim Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones.

Sources: The Hon Dr Jim Chalmers MP, Treasurer

SA Power Networks Issues Farm Safety Warning as Seeding Starts

Thu, 27 Apr 2023 06:14:54 GMT

Two recent incidents on South Australian farms have sparked a farm safety warning from SA Power Networks.

One of these incidents happened on the Eyre Peninsula, and involved a sprayer, with the other occurring on Yorke Peninsula involving an auger.

SA Power Networks warns that electricity infrastructure is a significant hazard on farms, with 65 incidents in SA since 1 January 2021 involving various types of farm machinery hitting powerlines and poles.

Tractors, seeders, harvesters, spray booms, and augers are some of the most common equipment to come into contact with electricity infrastructure, with most of these incidents happening in the broad acre cropping areas.

“Understandably everyone is keen to get the crops in, but in the rush, they can potentially put themselves and others at life-threatening risk,” said Paul Roberts, Head of Corporate Affairs at SA Power Networks.

“This is a positive time on many farms, but an accident would make it disastrous,” Mr Roberts said.

“Most of the powerlines on farms are 19,000 Volt SWER (Single Wire Earth Return) powerlines – that is a high voltage that is potentially lethal or that at best will cause significant, long-term injuries.”

Mr Roberts said, when undertaking specific tasks, all on-farm workers, including family members, contractors and anyone lending a helping hand, need to be aware of the location of powerlines and Stobie poles and the potential risks.

“The location of powerlines is a critical issue for anyone involved in sowing. There may have been some change to the configuration of powerlines on your property since last year and, with equipment getting taller and wider, that means you must review your powerline clearances before undertaking work.“

Powerlines can be difficult to see, so confirming their location before you start work, could avoid serious injury or even save a life.”

South Australian Farmers can access GPS mapping of South Australia’s electricity distribution infrastructure via the Look Up and Live app and website www.lookupandlive.com.au .

What to do if you hit a powerline

If a vehicle strikes a powerline it is best to stay inside the vehicle until help can arrive.

“When a vehicle comes into contact with powerlines you should immediately contact SA Power Networks on 13 13 66 and, unless there is some other emergency, do not move from your vehicle until SA Power Networks confirms it is safe to exit the vehicle,” Mr Roberts said.

“Others in the vicinity also should keep well clear of the vehicle until SA Power Networks confirms the line is safe.”

Worried about your workplace safety? The Lucas Group consultants can evaluate your WHS to see if you’re meeting your legal safety obligations.

We can also create safe work statements, procedures, instructions, and policies to ensure the highest safety standards in your agricultural enterprise.

Get more details here.

References: SA Power Networks

Labour Hire Laws Set To Change This Year

Thu, 27 Apr 2023 06:12:02 GMT

Changes are coming to labour hire laws with a consultation paper released earlier this month for the proposed ‘Same Job, Same Pay’ policy.

The consultation paper, released by the Department of Employment and Workplace Relations (DEWR), details the Australian Government’s plans to introduce new legislation into the Fair Work Act 2009.

Dubbed ‘Same Job, Same Pay’, the measures have been proposed as a way to “address the limited circumstances in which host employers use labour hire to deliberately undercut the bargained wages and conditions set out in enterprise agreements made with their employees”.

According to the paper, the development of the policy will be informed by four guiding principles:

Businesses should be able to access labour hire for genuine work surges and short-term needs.
Labour hire workers should be paid at least the same as directly engaged employees doing the same work.
Disputes about Same Job, Same Pay obligations and entitlements should be dealt with quickly, economically and fairly by the Fair Work Commission.
Targeted anti-avoidance measures are needed to protect Same Job, Same Pay entitlements and ensure long-lasting behavioural change.

What Issues Is the Policy Addressing?

According to ABS data, labour hire workers represent around 2.3 per cent of employed people in Australia, as of June 2022. 81% of these workers were employed for full-time hours but earns less than a directly employed worker.

Currently, under the Fair Work Act, a labour hire worker and an employee performing the same work for the same employer can have different instruments setting the terms and conditions of their employment.

The policy is seeking to address instances where a business has two workforces side by side. One is directly hired by the organisation and another through a labour hire company, often on lower terms and conditions.

The proposed changes follow a raft of recent updates to the Enterprise Bargaining Framework and Fair Work Act 2009.

How would ‘Same Job, Same Pay’ Work?

DEWR has detailed the proposed measures to calculate if a labour hire worker is doing the same work and receiving the same pay as an employee in the consultation papers.

This calculation is “considering the merits” of identifying a ‘same job’ when a labour hire worker is performing:

duties that align to a classification, job, or duties set out in or covered by an enterprise agreement that applies to the host employer and directly hired employees; and/or
the same duties as an employee covered by the modern award; and/or
the same duties as a specific directly employed employee working in the host.

The paper uses the example of Jane, a labour hire worker who works the same job as an employee at a food production company.

Jane is paid according to the relevant modern award by the labour hire provider, but the company has an enterprise agreement that has better pay for the classification that covers the work that Jane does.
Same Job, Same Pay measures will apply, and the labour hire provider will have to pay Jane at least the same pay that employees doing the same work under the enterprise agreement are paid.

When calculating the ‘same pay’ a labour hire worker would be entitled to, the Department proposes comparing labour hire workers’ wages with employees’ ‘full rate of pay’, as defined in the Fair Work Act 2009. This definition includes incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates and “any other separately identifiable amounts”.

The Department of Employment and Workplace Relations is now seeking feedback on the direction the government should take in implementing the Same Job, Same Pay measure. Feedback can be provided via a written submission to WRSubmissions@dewr.gov.au. You can choose to remain anonymous.

Closing date: Submissions close at 11:00 pm AEST on Friday 12 May 2023.

Sources: Same Job, Same Pay Consultation Paper

Agreement reached with China to resolve barley dispute

Thu, 13 Apr 2023 06:20:51 GMT

Local grain growers and exporters had a win earlier this week with Ministers Penny Wong and Don Farrell announcing that the Australian Government has reached an agreement with China that creates a pathway towards resolving the dispute over Australian barley.

The federal government has officially asked the World Trade Organization to suspend its appeal on Beijing’s decision to apply tariffs to Australian barley. In response, China will undertake an expedited review of the barley trade impediments that they installed in 2020.

What happened in 2020 to our barley trade?

Back in 2020 as the pandemic was beginning to show its global impact, the former Coalition Government had called for an inquiry into the origins of COVID-19.

Around that same time, China accused Australian farmers of dumping barley and subsidising grain growers, imposing a tariff on the barley trade.

After imposing similar duties on Australian wine, banning several meatworks, and halting timber, coal and lobster imports, China locked in the barley tariffs for five years to 2025.

Since 2020, China’s 80.5 per cent duties on Australian barley have effectively blocked exports to that market, worth about $916 million in 2018-19.

As a recourse to these unprecedented tariffs, the Australian Government made the decision to appeal to the World Trade Organization – a first for any Australian farm export.

How can the World Trade Organization help?

The World Trade Organization (WTO) effectively acts as a trading umpire. On 21 December 2020, Australia’s request for dispute consultations was circulated to WTO members.

The Australian Government claimed that the duties imposed by China on our barley trade were inconsistent with provisions under the WTO’s Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, and the General Agreement on Tariffs and Trade (GATT) 1994.

By requesting WTO consultation, the Australian Government formally initiated a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

Trade Minister at the time, Simon Birmingham, said that the WTO request was the “appropriate next step” to escalate the matter to the global trade body.

“We ask the independent umpire to adjudicate and ultimately help settle those disputes,” said Simon Birmingham.

He added that Australia remained open to solving the dispute outside of the WTO case “if both parties are willing to come to the table”.

Following recent conversations, China has agreed to undertake a review of the duties over a three-month period. This agreement came in response to Australia pausing the WTO intervention request.

The federal government is confident that this review period will put an end to the tariffs and allow Australia to recommence its barley trade with China.

If that doesn’t happen, however, Australia will resume the dispute in the WTO.

What’s the timeline for resuming trade?

If the Chinese review goes the way the Australian Government hopes, the barley duties could be dropped in the next three or four months. After this, grain traders say, the resumption of exports could happen before Christmas.

When the tariffs were introduced, the grains industry estimated a lost premium of approximately $30–$50 per tonne or up to $500 million a year.

Grain Producers Australia Chair Barry Large said that while other export markets had purchased Australian barley over the past two years, and trade for other important Australian grains such as wheat has continued with China, growers would welcome the return of the China market.

“Barley is an important rotation crop for Australian growers and any optimism on the future outlook is good,” he said.

“We welcome the Labor Government’s constructive dialogue and positive progress towards stabilising the relationship with China and creating this process and opportunity to recommence the barley trade.”

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said that in 2022-23 Australia produced the third largest barley crop ever recorded, with the average farm income for West Australian crop growers soaring to more than $1.5 million.

National Farmers’ Federation Chief Executive, Tony Mahar said it was hoped the development in the barley trade would be reflected in other sectors.

“We also hope this development is another step forward in recalibrating our relationship with China and will mean progress will also advance on removing trade barriers for rock lobster and wine,” he said.

Australia’s wine industry – also locked out of China since 2020 – currently has an appeal with the WTO, with winemakers desperate to resume trade with China as soon as possible.

Sources: WTO , BBC , Grain Central , Senator the Hon Penny Wong , NFF , ABC , Farm Online

Pear-fect Storm: Extreme Weather Leads to Reduced Pome Fruit Crop for 2023 Harvest

Thu, 13 Apr 2023 06:17:32 GMT

Pear and apple crop estimates are set to retract to 2020 levels thanks to extreme weather events.

Heading into the 2023 harvest, the adverse flooding in the eastern states in late 2022 and two significant hail events in the Goulburn Valley are expected to impact the supply of apples and pears in the domestic market in 2023.

A major hail event on 22 December 2022 that affected orchards from Tatura to Bunbartha means APAL anticipates almost 12% fewer apples and 35% fewer pears in the national class 1 supply of pome fruit this year.

Apple and Pear Australia Limited (APAL) chief executive officer, Philip Turnbull, said that the organisation is confident there will be an ample supply of high-quality apples and pears in the Australian market this year, even though reduced volumes will see the sector back on par with the volumes of 2020.

The 2023 Apple and Pear Crop Estimate echoes this outlook, acknowledging that gross apple production is expected to be down 7.9% from 2022 to a total output of just 290,000 tonnes.

Similarly, the crop forecast predicts gross pear production will be down 16.1% at 72,000 tonnes.

APAL believes that due to the reduced amount of fruit, growers will have a more valuable proposition for the retailers, resulting in healthier prices and better returns.

Mr Turnbull said the shifts in supply will enable weightier negotiations this year, whereby growers will be in a position to have more robust conversations with the retailers around fair fruit prices.

“With a smaller crop of good quality fruit and steady consumer demand, we expect prices for apples and pears to be stronger than in 2022,” he said.

Rural Bank’s March Insights report reinforced the impact flooding would have on the current harvest.

“A slight reduction in 2023 output is forecast following flooding in late 2022,” it said.

The total production value of apples for 2021/22 was $568.6 million, according to The Australian Horticulture Statistics Handbook, with 307,630 tonnes of fruit produced. The same publication reported 121,954 tonnes of pears valued at $131.6 million was produced in that period.

Sources: APAL , Rural Bank , The Australian Horticulture Statistics Handbook

The Heat is On (Maybe) With El Niño Warning Activated

Wed, 15 Mar 2023 06:25:50 GMT

The Bureau of Meteorology (BOM) has officially declared the end of La Niña , in the same breath as an El Niño warning.

The 2022–2023 La Niña has ended after more than 6 soggy months of summer bringing devastating floods and dampness.

However, celebrations have been put on hold as the BOM quickly shifted from “in La Niña” straight up to “El Niño Watch”.

Eastern Pacific temperatures are warming rapidly, and at the current rate, the western part of the ocean will be pushing El Niño within months.

A significant amount of warmer-than-average water exists in the western and central tropical Pacific sub-surface, and warmer-than-average sea surface temperatures (SST) have emerged in parts of the eastern tropical Pacific in recent weeks. So while most models suggest the El Niño-Southern Oscillation (ENSO) forecast will remain neutral over autumn, there’s twice the normal likelihood that El Niño will occur.*

What is El Niño?

El Niño is a climate phenomenon that occurs in the Pacific Ocean. In El Niño the sea surface temperatures in the central and eastern tropical Pacific warm up. This warming can have significant impacts on our weather patterns.

El Niño occurs when the trade winds that blow from east to west across the Pacific Ocean weaken or even reverse. As a result, warm water that has piled up in the western Pacific moves eastward, warming the sea surfaces in the eastern Pacific. This warming can disrupt the normal patterns of atmospheric circulation, affecting weather patterns in many regions.

The impacts of El Niño n Australia are generally felt as drought and wildfires. It can also affect ocean currents and marine ecosystems, leading to changes in fish populations and coral bleaching.

When was the last El Niño?

The last time El Niño came to town was in 2015, bringing severe drought to Tasmania, Victoria, tropical Queensland and southern South Australia.

*About 50% of the time a WATCH was reached, an ENSO event subsequently occurred

Sources: ABC , BOM

Three in a Row: Australian Agriculture Set to Crack $90B

Wed, 15 Mar 2023 06:23:40 GMT

Australian agriculture is set to produce more than $90 billion of food and fibre products this financial year, the third year in a row the industry has broken value records.

Strong seasonal conditions and high commodity prices have underpinned strong production and prices. Including forestry and fisheries, the total value of industry outputs is forecast to exceed $96 billion.

Dr Jared Greenville, executive director of ABARES, said that the industry’s success would flow onto the performance of the export market.

“Agricultural exports are also forecast to set new records, reaching $75 billion in 2022–23. This is the first time we’ve seen our exports exceed $70 billion, which is a huge achievement,” he said.

“National winter crop production has driven much of these results, with the winter crop estimated at a new record of 67.3 million tonnes in 2022–23. This beats last year’s record by 4 million tonnes and is being driven by exceptional results out of Western Australia and South Australia.

Dr Greenville said that the national canola and wheat crops had broken production records, and barley reached its third-highest crop.

“High values of livestock production have also contributed to these record numbers, with producers increasing their production while also benefitting from historically high prices”.

While farmers in many areas of Australia have been experiencing relatively strong production conditions, climate patterns are likely to result in drier conditions ahead, with softening production volumes.

“This year will likely be the last hurrah for the La Nina rain system for a while, and we can expect drier seasonal conditions ahead. However, production will continue to be supported by good soil moisture and high water storage levels.

“While we expect production to be lower in 2023–24, at $81 billion it will still be the third highest on record.

“Australia has been very fortunate to have had wet years and high commodity prices. But we are expecting commodity prices to ease with competition stepping up in global markets.

ABARES is predicting the medium-term average national value of agricultural products to return to around $74 billion per year.

Australian UK Free Trade Agreement “Months Away”

The A-UK FTA is one step closer to opening doors for Australian exporters after the Australian Government completed its domestic ratification process.

The proposed agreement will see tariffs eliminated on more than 99% of Australian food products exported to the UK including wine, rice, honey, seafood, nuts, fruit, vegetables and processed foods.

The agreement will also see the tariffs significantly reduced for beef, sheep meat, sugar, wheat and dairy.

The UK government is now undertaking its ratification process, the last step before new trading standards will come into effect. Currently, the UK is Australia’s second-largest market in Europe valued at around $100 million annually.

Up to the 1970s, the UK was Australia’s single largest export market, made up largely of agricultural commodities. At its peak, the UK represented 40% of Australia’s exports, but this figure dropped to a low of 5% after the UK joined the EU.

It is hoped that the new free trade agreement will help to boost the volume and value of exports to the UK.

Sources: ABARES , AUSTRADE

Kiwi Varietals Shake Up the Smashed Avo Industry

Thu, 02 Mar 2023 06:28:02 GMT

Move over Hass & Shepherd, three new avocado varietals are set to land in Australia thanks to Manbulloo.

In news that’s set to shake up the industry – and bougie city cafes – Australia’s largest grower of Kensington Pride mangoes, Manbulloo, has just signed the rights to three new Kiwi avocado varieties.

“Rather than stick with planting even more Hass, when there are some situations where there are just too many Hass around, we wanted to offer customers and consumers a new experience,” Marie Piccone, owner and managing director of Manbulloo Fruit Company said.

“Now we’ve got material here in Australia we want to plant out commercially on a pilot basis, in various regions across Australia to assess the three different varieties,” she said.

In 2022 an oversupply of Hass avocadoes led to turmoil in the industry, with 122,000 tonnes of fruit produced, up from 80,000 tonnes in 2021.

Almost 80 per cent of Australian households buy avocados, with consumption rising last year to almost 5 kilograms per person per year. Industry representative body Avocados Australia has noted that with expectations production will reach 170,000 tonnes by 2026, 2022 wasn’t an anomaly and there’ll be more tough years ahead.

Ms Piccone said with the huge proliferation of Hass all over the world, it was time consumers got more choices with varieties.

“We’ve identified that there is room for other varieties in the avocado industry,” she said.

“The research shows that lots of people are quite available to taste new flavours in avocados.”

More Choice, More Brunches?

The popularity of avocadoes in Australia has seen monumental growth over the last 2 decades. Annual per capita consumption has more than quadrupled, growing from 1.2kg per person to almost 5kgs per person and what was once a 30,000-tonne harvest has exceeded 120,000 tonnes.

“Our most popular food menu item would definitely be the avocado smash on sourdough, without a doubt,” Kelly Behrens owner of Tobruk Kiosk on The Strand in Townsville said.

“Some days I sell out.”

Choosing the Hass variety for its creaminess and consistency, Ms Behrens said she was open to trying the new varieties.

“We’re open to trying anything. If it’s obviously going to be of the same quality and it’s in season when the others aren’t we will definitely try it.”

Will the new varieties be less divisive?

Australians love a Hass avo, it’s undisputed. But ask around and you’ll find that the humble Shepherd avocado is very divisive among consumers.

Manbulloo’s new varieties are like Shepherd avocados in that they’re green skin and don’t go brown when cut.

Ms Piccone said the varieties have a nutty, buttery flavour.

“These varieties are very exciting because they’re all the progeny of Sharwill, which was found in Australia in the 60s or 70s,” she said.

“It never expanded commercially because it was what we call a B-type flower, which means that the flowering and the fruit set is temperature sensitive.

“These three new varieties, from all of our observation, appear to be A-type flowers, which means they’re not temperature sensitive.”

Sources: ABC , ABC , ABC , Pedestrian

How to Make the 4 Most Common Meetings More Effective

Fri, 24 Feb 2023 06:31:14 GMT

Meetings – love or hate them, they’re a part of work life. A well-planned and run meeting can be a great way to share information, collaborate or build team camaraderie. Most meetings, however, seem to be unproductive, wasting team energy and time, and reducing efficiency. But how could you make meetings more effective? We’ve listed the top 4 meetings and how to make them more productive ahead.

Why are meetings not working?

To fix them, it’s important to understand why meetings often fail. Common reasons tend to be a lack of clear objectives, ineffective communication, and disorganized agendas. When meetings lack structure and purpose, they can easily become unfocused and waste valuable time.

Team Meetings

Team meetings are essential for keeping everyone on the same page. To make these meetings more productive, start by setting clear objectives for each meeting and preparing an agenda that outlines specific topics and discussion points. Encourage team members to share their thoughts and ideas, but also ensure that the meeting remains focused on the key objectives.

Stand-ups

Stand-up meetings are short, daily meetings that typically last between 10-15 minutes. The purpose of these meetings is to quickly check in with the team, update everyone on progress, and identify any roadblocks. To make these meetings more efficient, keep them short and focused on the key points. Encourage team members to share updates and ask questions but ensure that the conversation stays on track.

Brainstorming & Strategic Planning Meetings

Brainstorming and strategic planning meetings are critical for generating new ideas and developing strategies for the future. However, these meetings can also be time-consuming and unproductive if not properly managed. To make these meetings more efficient, start by setting clear goals and objectives, as well as a timeline for the meeting. Encourage participation but make sure that everyone stays focused on the goalposts.

1-on-1 Meetings

1-on-1 meetings are essential for building relationships between managers and team members and providing feedback on performance. To make these meetings more productive, start by preparing an agenda that outlines specific discussion points, such as goals, challenges, and progress. Provide feedback and support where necessary and set clear goals for the next meeting.

By following these tips, we can make sure that meetings are a valuable part of the workday rather than a drain on productivity and energy.

Mixed Farming Aggregation Saltbush Ag Sells for $33 Million Amid Strong National Rural Sales

Fri, 10 Feb 2023 06:33:53 GMT

Almost 3,000 hectares of mixed cropping and grazing land has earned the Handbury family $33 million after it was split into six parcels and purchased by local farming families.

Located in the Mid-North region of South Australia, Saltbush Ag had been owned by Paddy Handbury, the nephew of Rupert Murdoch, for the past 27 years. The aggregation included two main homesteads and an additional five houses, shearing sheds, extensive shedding, irrigation infrastructure and grain storage facilities.

Spanning the districts of Booborowie and Leighton, the region is renowned for reliable rainfall and fertile soils, offering local farmers the ability to profit from the mix of crops, pulses, hay and prime lamb production, and ease of market access.

While on the market, there were more than 100 inquiries for Saltbush Ag, including one potential purchaser interested in the aggregation.

“In the end, it was multi-generational farming families from the mid-north region [that] purchased them individually,” said Ray White agent Geoff Schell.

“Two of the buyers are quite large family businesses, and three are small-to-medium family businesses,” he added.

The move to disperse the aggregation was driven by a desire to concentrate business operations in the state’s South-East region.

“When times are good, good properties come up and we have just bought three cracking properties closer to home, so we’re keen for our son Jack and his family to move down south while his family is still young,” Mr Handbury said.

Saltbush Ag has been the primary focus of the Handbury’s farming enterprises since it sold Collinsville Stud in 2014 in a sale to Adelaide businessman George Millington.

Handbury Asset Holdings own 180 hectares at Lucindale, in addition to Chessington, a 668 hectare grazing property acquired for $13.7 million. The family also owns the 215,000 hectare station Arcoona near Woomera in the South Australian outback.

Rural Sales Still Going Strong

Sales of rural land continue to shine with strong interest and record prices achieved in many parts of the country.

Selling for $10 million more than the initial valuation, a 8,500 hectare Western Australian farm has sold to the Canadian-backed Victorian-based Excel Farms for a record $100 million. The previous WA record was set in 2020 when 22,000 hectares at Mingenew sold for $97 million.

The median price for cropping land per hectare now sits at around $4700 in Western Australia, more than double its value in 2018. A significant factor in the increase in value has been the demand from interstate farmers keep to capitalise on WA’s comparatively cheaper land.

Another recent sale of note is the transaction of Gundaline – one of Australia’s largest irrigated farming operations. Located in the Murrumbidgee irrigation area, the property has been sold to Chinese textile firm Zhejiang Sunrise Garment Group for $120 million.

Focus will now be on the next cohort of rural sales with a 3,026 hectare property in Walcha New South Wales recently put on the market.

The breeding and fattening operation – Emu Creek – has been owned by the same family for the last 155 years and is expected to sell for around $35 million.

Sources: Grain Central , Commercial Real Estate , ABC , Beef Central .

Paid Family and Domestic Violence Leave Begins 1 Feb

Tue, 31 Jan 2023 06:36:29 GMT

Is your business ready?

In late 2022 the Federal Parliament passed significant reforms to the Fair Work Act 2009 (Cth) (FW Act) – the Secure Jobs, Better Pay Bill , on 1 Feb the addition of Paid Family & Domestic Violence Leave begins.

From 1 February 2023, employees of non-small business employers (employers with 15 or more employees on 1 February 2023) will have access to 10 days of paid Family & Domestic Violence Leave (FDVL). These entitlements will be available to full-time, part-time, and casual employees, on an annual, non-accumulative basis.

The FDVL becomes available to small business employees on 1 August 2023.

Employees (including part-time and casual employees) can take this paid leave if they need to do something to deal with the impact of family and domestic violence.

As an example, this could include the employee:

making arrangements for their safety, or the safety of a close relative (including relocation)
attending court hearings
accessing police services
attending counselling
attending appointments with medical, financial, or legal professionals.

The new provisions define family and domestic violence as meaning violent, threatening, or other abusive behaviour by an employee’s close relative, a current or former intimate partner, or a member of their household that both:

seeks to coerce or control the employee
causes them harm or fear.

There are also now rules about information that must not be included on an employee’s pay slip relating to paid FDVL. As an employer, you will need to keep a record of leave balances and any leave taken by your employees. However, pay slips must not mention family and domestic violence leave, including any leave taken and leave balances.

Key Points About Paid Family & Domestic Violence Leave

FDVL will be accessible to all employees
It will not be pro-rated – all employees will have access to the full 10 days
FDVL is available upfront, it does not accrue and is available in full from commencement, renewing on the employee’s anniversary date
Payable at the employee’s wage rate (instead of being payable at base rates)

References: Fair Work Ombudsman , Employer Guide to Family & Domestic Violence , A workplace family and domestic violence checklist

Research Breakthrough Makes Australian Renewable Biofuel Sector One Step Closer

Thu, 19 Jan 2023 06:38:52 GMT

A research breakthrough has made Australia one step closer to being able to manufacture sustainable biofuel and other valuable products from sugarcane.

Researchers in Queensland have accelerated the process that converts sugarcane into the chemical isobutanol which is used to manufacture aviation fuel, plastics, rubbers, solvents, paints and cosmetics.

“Rather than taking a yeast cell or a bacterial cell, we basically take these few biocatalysts that we need from these organisms to turn something like sugar into something like a biofuel,” said Gary Schenck, a professor at the University of Queensland.

“So that requires far smaller components … it allows you to actually be far more specific and also get much higher yields in sort of getting the product you want.”

Professor Schenck also said that the sped-up process makes manufacturing isobutanol a more financially viable proposition, and the range of potential end uses will encourage investment in the sector.

In addition to providing an alternative market to sugar cane growers, a significant benefactor of the technology will be the Australian aviation industry which currently relies on imported sustainable aviation fuel. Supply chain disruptions caused by COVID-19 and the Ukraine war highlighted Australia’s reliance on imported fuels, causing the industry to look for alternative options.

Co-researcher Professor Damien Hines said the emerging industry would spark conversations around the use of sugar as a fuel versus a food source, but developing a sustainable, domestic industry was an attractive proposition.

“Because sovereignty comes into it, the governments are very keen on having an industry established,” he said.

“There’s a lot of interest in making sure that we’re developing a sector that has legs and lasts.”

Mackay sugarcane grower Kevin Borg said that while an alternative market was welcome, growers will continue to sell their crops to the highest bidder.

“I think it’s everybody’s view that sugar would still be the mainstay of the industry,” he said.

“For 40, 50 years, as long as I’ve been in the industry, we have talked about value-adding and the problem has been that we haven’t had government support behind those projects, thus they fell over.

“[But now] we’ve got government support and we’ve got a real need to develop food, fibre and renewable fuels.”

The breakthrough comes at the same time as the Queensland government announced the expansion of a manufacturing plant that converts sugarcane waste into bi-products including biofuel.

“The Palaszczuk government has committed funds from our industry partnership program to expand the pilot plant in partnership with QUT [Queensland University of Technology],” said Deputy Premier Stephen Miles.

“This is a pilot plant that takes biomass and turns it into high-value products like biofuels, green chemicals, and bioproducts.

“The opportunities for Mackay and the wider region going into the future are enormous, as the entire world is looking to green products produced using biomass.”

Sources: ABC

Right to Repair Deal Struck in US with John Deere

Thu, 12 Jan 2023 06:41:09 GMT

John Deere and the American Farm Bureau Federation (AFBF) have signed a memorandum of understanding guaranteeing US farmers the right to repair John Deere equipment

Farmers in the US will be able to purchase software diagnostic tools, allowing them to take their equipment to a dealer of their choice or repair the machinery themselves – something Australian farmers are still fighting for.

The memorandum of understanding follows several years of discussions between the two sides.

AFBF president Zippy Duvall said the agreement “addresses a long-running issue for farmers and ranchers when it comes to accessing tools, information and resources while protecting John Deere’s intellectual property rights and ensuring equipment safety”.

“A piece of equipment is a major investment. Farmers must have the freedom to choose where equipment is repaired, or to repair it themselves, to help control costs,” Mr Duvall said.

John Deere’s senior vice president for ag and turf sales, David Gilmore, said the agreement “reaffirms the longstanding commitment Deere has made to ensure our customers have the diagnostic tools and information they need to make many repairs to their machines.”

The US MoU has highlighted the fact that this isn’t an option in Australia, where software malfunctions can leave hundreds of thousands of dollars of machinery sitting in paddocks until an authorised repairer is available.

Renewed calls for right to repair

Right to repair advocates have renewed their calls for Australian reform after the US John Deere deal.

“For years we’ve been calling for Australian farmers to have the right to repair their agricultural machinery,” NFF President Fiona Simson said.

“Farmers are small business owners who should have the same right as anyone else to have their machinery repaired by their preferred repairer or make small repairs on farm without fear of voiding warranties,” she said.

Speaking with ABC, Ms Simpson highlighted the disadvantage it puts Australian farmers at, particularly during peak harvest seasons.

“[Farmers] can’t even access a technician to work out what’s wrong with it, let alone fix it themselves because of the onerous agreements that the manufacturers have put in place.”

Productivity Commission’s Report Back in Spotlight

Little has changed since the Productivity Commission released its report in May 2021 that found there were significant and unnecessary barriers to repair for some products.

The report said purchasers of agricultural machinery would benefit from more independent competition in servicing and repair markets. It proposed measures aimed to enhance consumers’ right to repair, including changes to consumer and intellectual copyright laws.

The Productivity Commission said it wanted to see the recommendations implemented by the end of 2022.

Sources: AFBF , NFF , ABC

FWO fines farm employers more than $78,000

Thu, 15 Dec 2022 06:46:58 GMT

The Fair Work Ombudsman has fined growers and labour hire providers in North West Victoria’s Sunraysia region, South Australia’s Riverland, and NSW’s Coffs Harbour and Grafton a combined $78,362 for breaching pay slips and record-keeping laws in the last year.

In contrast, there has been high levels of compliance found in the Queensland growing regions of Wide Bay and Moreton Bay.

Since the regulator began its agriculture strategy in December 2021, it has investigated 237 businesses in hot spots across Australia where intelligence suggests non-compliance may be present.

Fair Work Inspectors have issued a combined 31 Infringement Notices (fines) totalling $35,964 in Sunraysia, $22,644 in the Riverland and $19,754 in Coffs Harbour and Grafton.

Fair Work Ombudsman Sandra Parker said employers were expected to apply the rules correctly.

“Record-keeping is the bedrock of compliance. Employers who fail to meet these obligations are more likely to be underpaying, whether intentionally or not. It is concerning that Inspectors have needed to issue close to $80,000 in fines to employers who breached payslip and records laws,” Ms Parker said.

Fair Work Inspectors also issued six Compliance Notices to employers who the Inspectors believed had underpaid workers under an award or had contravened the National Employment Standards. Of these, four were to employers in the Riverland, and one was to an employer in each of Moreton Bay and the Sunraysia region.

All but one of the Compliance Notices related to underpayment of hourly rates. The other, in Mildura, was issued for failure to provide the Fair Work Information Statement to workers.

The Fair Work Ombudsman has investigations into more than 80 agriculture employers ongoing nationally.

Technology helps employers get it right

Ms Parker said agriculture employers who had taken the effort to understand their new obligations since the 28 April 2022 changes to the Horticulture Award , and put in place systems to stay compliant, had been eager to demonstrate their management solutions when inspectors came checking.

“We were pleased to see that some farmers have used technology to make it easier to pay their workers correctly under the award changes. We commend those who do the right thing and hope other farmers are encouraged by these practical methods to ensure compliance,” Ms Parker said.

“Compliance levels so far have been high in the regions of Moreton Bay and Wide Bay in Queensland, and we expect employers in other states to similarly meet all their obligations to their workers, including by investing in their time-and-pay systems.”

“Fair Work Inspectors will continue their site inspections in various hotspots throughout 2023, and any employers who need assistance meeting their obligations should refer to our free resources, and contact the FWO directly if they need help.”

In Moreton Bay, Queensland, and Coomealla, NSW, Fair Work Inspectors observed how some farms had rolled out sophisticated digital systems in response to the 28 April Award changes. Each worker scanned an identification card to clock in and out; at a deposit point out in the field; and when packing fruit in a shed. This delivered real-time data about workers’ performance, including whether they were behind, meeting or exceeding the required productivity. Software automatically identified when a worker needed their wages topped up to ensure they received the guaranteed minimum hourly wage each day that they were engaged as a pieceworker under the Horticulture Award.

In North West Victoria and the Riverland, where there has been less compliance so far found, site inspections identified employers not making and keeping the required records for pieceworkers. Some employers still used piecework agreements that referenced old award clauses and wrongly stated a piece worker would not be guaranteed a minimum rate of pay. Some workers were being paid group piecework rates which is against the law.

Since the 28 April piece rates changes, about $11,000 in Infringement Notices have been issued nationally for deficient record-keeping specifically under the Horticulture Award.

Results summary, so far – Moreton Bay, Wide Bay, Sunraysia and Riverland

Overall, high compliance levels have been found in two Queensland locations. In Moreton Bay, from 38 finalised investigations, only one instance of non-compliance was found, leading to a Compliance Notice being issued to an avocado grower who rectified the minor underpayment. There are 12 investigations on foot.

In Wide Bay, from 36 finalised investigations, only one breach (a minor payslip error) was found. There are investigations into eight businesses still active.

So far, non-compliance has been found to be higher among finalised investigations in North West Victoria. Inspectors investigated 58 businesses in the Sunraysia region following site visits in August 2022 and have so far issued nine Infringement Notices, resulting in $35,964 of fines for pay slip and record-keeping breaches, and one Compliance Notice. About 40 investigations remain ongoing.

In the Riverland, Inspectors investigated 34 businesses following site visits in February and July this year. In addition to the 10 Infringement Notices totalling $22,644, Inspectors issued four Compliance Notices. The regulator has 13 ongoing investigations in this hot spot.

Most recently, Inspectors assessed 21 sites in the Whitsunday Coast, Queensland between November and December. Investigations are ongoing, and further inspections will also take place.

Viticulture investigations

The regulator’s proactive viticulture investigations, which are separate from the hot spot inspections, assessed 35 businesses following site inspections in March and April this year in WA’s Margaret River, Victoria’s Yarra Valley, and SA’s Coonawarra. The FWO issued 12 Infringement Notices totalling $53,260 for record-keeping and pay slip contraventions, plus five Compliance Notices requiring that underpayments believed to have occurred under the Wine Industry Award be rectified.

The FWO’s Horticulture Showcase has self-audit tools, templates for employers hiring pieceworkers and a range of resources for migrant workers.

The Lucas Group can help you review your policies and procedures to ensure you’re complying with all legal requirements. To find out more about our HR consulting services view our client page .

Source: Fair Work Ombudsman

How will the Secure Jobs, Better Pay reforms affect your business?

Thu, 15 Dec 2022 06:43:51 GMT

The Federal Governments’ Secure Jobs, Better Pay Bill passed Federal Parliament this week, enacting significant reforms to the Fair Work Act 2009 (Cth) (FW Act). These reforms come hot on the heels of the Respect@Work Act .

Secure Jobs, Better Pay amends the FW Act, changing existing rules and adding a range of new laws. These changes range from pay secrecy to enterprise bargaining.

Many of the changes are coming into effect immediately and affect all employers.

Pay secrecy, job ads and flexible work

As of 7 December 2022, employers can’t prohibit pay secrecy in employment contracts. Employees now have a legislated right to share (or not share) information about their salary and the employment terms and conditions needed to work out their pay, for example, their work hours.

From 7 June 2023, pay secrecy terms in employment contracts or other written agreements entered into on or after 7 December 2022 are prohibited. Including a pay secrecy clause after this date will attract penalties from Fair Work Australia.

The new Bill also affects job advertising. Effective as of 7 January 2023, it’s a penalty-incurring offence to advertise employment at a rate of pay that breaches the FW Act. Effectively, job ads can’t include pay rates or workplace conditions that undercut minimum entitlements.

Fixed-term contracts have also been significantly affected by the changes. From 6 December 2023, employers can’t employ an employee on a fixed-term contract for more than two years (including extensions), can be extended more than once or is a new contract similar to the employee’s previous position.

Additionally, employers will need to give new fixed-contract employees a Fixed Term Contract Information Statement, which will be available on the Fair Work Website.

Some exceptions will apply.

Gender equality measures and small claims process

The Bill addresses recommendations from the Respect@Work report; above the recommendations in the Respect at Work Bill.

The Secure Jobs, Better Pay Bill amends the FW Act to expressly protect gender identity, intersex status, and breastfeeding against workplace discrimination. This change flows through to FW Act provisions dealing with discriminatory terms in agreements and awards.

The reform also enhances the small claims process, increasing the monetary cap for recovering unpaid entitlements from $20,000 to $100,000.

Enterprise agreements and enterprise bargaining

The Secure Jobs, Better Pay Act significantly changes enterprise agreements and bargaining. The Act reduces obstacles to multi-enterprise bargaining, changes approval processes for enterprise agreements, and expands the Fair Work Commission’s (FWC) powers to resolve disputes.

The Act opens the doors to bargaining; employers who have bargained with employees have fewer options to resist bargaining for new enterprise agreements.

These include simplifying enterprise agreement approval requirements, including the Better-Off-Overall-Test, and empowering the FWC to assist bargaining parties in overcoming bargaining disputes and reaching agreements.

The most significant changes are to multi-employer bargaining, with more information available soon.

Immediate Action Required

Most businesses will have to implement immediate changes to areas of their workforce or change workforce planning for future employees.

In immediacy, businesses should:

Ensure that all new or variations to employment contracts after 7 December 2022 do not contain provisions requiring employees to keep their remuneration secret
Ensure the pay rates in current job adverts comply with the Fair Work Act and applicable industrial instruments
Assess job advertising procedures to ensure future adverts are compliant
Ensure adverts for piecework include the periodic rate of pay
Review workforce planning and contract templates
Assess required steps to prevent and prohibit sexual harassment in their organisation

For more information and a complete list of the changes to the FW Act, please see the Department of Employment & Workplace Relations .

References: Clayton Utz , Fair Work Ombudsman , Department of Employment & Workplace Relations Factsheets

Australia Set for Record Grain Harvest Despite Weather

Thu, 08 Dec 2022 06:48:49 GMT

The grains sector is set for a record harvest, despite the challenging weather conditions faced in many regions across Australia.

Released this week, ABARES’ quarterly Australian Crop and Agricultural Commodities Report showed a forecast of 36.6 million tonnes (Mt) of wheat, a 14% increase on the previous estimates. This year’s national wheat yield is likely to be the biggest on record, breaking the previous record set in 2021 (36.3 Mt).

Similarly, the national canola yield is set to break previous records at 7.3Mt, outperforming last year’s total of 6.8Mt. Barley is expected to yield around 13.4Mt, the fourth largest yield on record despite a reduction in the amount sown this year as farmers opted for wheat and canola.

Predictions for the yield of all three crops were increased from the previous quarterly report with ABARES forecasting outstanding performance across the board for Australian agriculture, despite less-than-ideal conditions, particularly in the eastern states.

“The gross value of agricultural production is forecast to be a near-record $85 billion in 2022-23, just shy of the record set the previous year,” said ABARES executive director Jared Greenville .

“The winter crop is forecast to be the second largest on record at over 62Mt.”

While floods, rain and hail wreaked havoc on some agricultural districts, others are growing their best-ever winter crops.

“Crops in Western Australia and South Australia benefitted the most from spring conditions, with total production in both states forecast to reach new record levels.

“Total production in Queensland is forecast to reach the second highest on record, despite parts of the Darling Downs missing out on plantings after being impacted by the floods.

“In other parts of the country, the results are mixed with both flooding and waterlogging impacting winter-crop production.”

While a record amount of Victorian land was sown this year, the yield outlook will vary across the districts.

“At the state level, high yields in the Mallee and the Wimmera will offset crop losses in central and northern border regions. However, the full picture of the damage to crops from extensive waterlogging remains unknown.

The state yield for New South Wales was revised down by 2Mt in the current ABARES crop forecast given considerably wet spring conditions.

“Unfortunately, New South Wales has borne the brunt of the damage from the spring rains and subsequent floods. Considerable uncertainty remains over winter-crop harvest progress and grain quality in New South Wales and Victoria given ongoing high rainfall, which could lead to downgrades in production value.

“Harvests in Victoria and New South Wales are likely to run well into summer.”

Strong yields and buoyant prices are set to net the Australian grains industry a record-breaking $51 billion this financial year, with the gross value for wheat and barley at a record high.

The livestock industry is set to contribute an additional $34 billion to that figure, making the National Farmers’ Federation goal of an industry worth $100 billion by 2030 more likely.

“Another bumper year combined with high commodity prices means Australia’s agricultural exports are forecast to break records at over $72 billion in 2022-23,” said Dr Greenville.

Sources: Grain Central

What the New Respect@Work Laws Mean for Your Business

Thu, 01 Dec 2022 06:53:10 GMT

Parliament has recently passed new legislation, bringing into law seven recommendations from Sex Discrimination Commissioner Kate Jenkins Respect@Work report.

The Anti-Discrimination and Human Rights Amendment (Respect@Work) Bill 2022 implements seven of the 55 recommendations of the Respect@Work Report, primarily through amendments to the Sex Discrimination Act 1984 (Cth) and the Australian Human Rights Commission Act 1986 (Cth) (AHRC Act).

Addressing hostile workplace environments

The original Respect@Work report recommended that the Sex Discrimination Act “expressly prohibit creating or facilitating an intimidating, hostile, humiliating or offensive environment on the basis of sex” (recommendation 16(c)).

To address hostile work environments, the Anti-Discrimination and Human Rights Amendment (Respect@Work) Bill 2022, Schedule 1, makes amendments to the Sex Discrimination Act 1984.

The amendments outline that a workplace environment may be offensive, intimidating or humiliating to a person by reason of:

(a) the sex of the person; or

(b) a characteristic that appertains generally to persons of the sex of the person; or

if it is offensive, intimidating or humiliating by reason of 2 or more matters that include the sex or the characteristic, whether or not the sex or the characteristic is the dominant or substantial reason.

The amendment also expresses that it is “unlawful for a person to subject another person to a workplace environment that is hostile on the ground of sex” and that offensive conduct could be made orally or in writing.

Positive duty on employers to eliminate unlawful sexual discrimination

The Anti-Discrimination and Human Rights Amendment (Respect@Work) Bill 2022 also introduces a positive duty on all employers and persons conducting a business or undertaking to take “reasonable and proportionate measures” to eliminate, as far as possible, certain discriminatory conduct.

This would require measures be taken to prevent this conduct being engaged in by duty holders themselves, as well as their employees, workers and agents, and third parties, where applicable. This may involve implementing policies and procedures, collecting and monitoring data, providing appropriate support to workers and employees, and delivering training and education on a regular basis.

This was one of the key recommendations from the report, which makes it clear that when deciding if a business has taken the steps the following should be considered:

the nature and size of the business or operations
business resources
business operational priorities
the practicability and costs of the measure, and
any other relevant facts or circumstances.

Enforcement of the positive duty

The Bill has also, in line with recommendation 18, given the Australian Human Rights Commission (AHRC) the ability to monitor and assess compliance with the positive duty obligations. This enforcement mechanism will lessen the burden on individuals, allowing the AHRC to initiate action on unlawful discrimination.

Employers have 12 months before the enforcement powers kick in, giving them enough time to understand what the changes mean and introduce any organisational changes.

Systemic inquiries into unlawful discrimination

Implementing Recommendation 19 of the Respect@Work report provides the AHRC with a broad inquiry function to inquire into systemic unlawful discrimination, including sexual harassment.

“The bill would enable the commission to perform its systemic inquiry functions when requested to do so by the minister or when the commission considers it to be appropriate to do so,” the explanatory memorandum says.

“This would allow the commission to commence an inquiry on its own motion, such as where an organisation has requested it do so or it has become aware of issues relating to an organisation or sector.”

Representative Claims

Prior to the legislation, representative bodies (like unions) could initiate a complaint in the AHRC on behalf of one or more persons. However, they could not make an application to the federal courts on behalf of the group if the matter was not resolved by the Commission.

Recommendation 23 of the report was to allow unions and other representative groups to bring representative claims to court. This was implemented by an amendment to Australian Human Rights Commission Act 1986, enabling representative bodies to make representative applications on behalf of people who have experienced unlawful discrimination in the federal courts.

Cost Protections

While everything else is set in stone, the matter of legal costs is still up in the air. The issue has been referred to the Attorney-General’s Department to be reviewed.

Reporting workplace gender equality

Amendments to the Workplace Gender Equality Act bring the public service in line with private enterprise, requiring them to report to the Workplace Gender Equality Agency (WGEA).

It means public sector agencies will have to report annually on six key indicators:

Gender composition of the workforce
Gender composition of governing bodies
Equal pay between men and women
How available and used flexible working arrangements are to support employees with family or caring responsibilities
Consultation with employees about issues around gender equality in the workplace
Sex-based harassment and discrimination

Other Changes

There are some other tweaks to a number of Acts to address other parts of the report.

These include clarifying that victimising conduct can be the basis of a civil complaint as well as a criminal offence. The changes also extended the timeline for complaints to two years after an alleged incident from the current six months.

The Bill text and explanatory memorandum can be found here .

Sources: Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Bill 2022. Supplementary Explanatory Memorandum , Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Bill 2022. Revised Explanatory Memorandum , Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Bill 2022 (as read a third time) , Consultation Paper: Respect@Work – Options to progress further legislative recommendations

8 Classic Job Interview Mistakes & How To Avoid Them

Wed, 23 Nov 2022 06:57:26 GMT

Classic job interview mistakes can affect your chances of securing a new role. A job interview is one of an employer’s first impressions of you. Interviewing gives you a chance to elaborate on your skills, experience, and qualifications. That’s why it’s best to avoid the common mistakes interviewees make and put your best foot forward.

Turning up too early

It’s crucial that you arrive within the correct timeframe for your interview. Arriving on time shows the interviewer that you are punctual and value their time. And as Benjamin Franklin pointed out – time is money, so they’ll appreciate your adherence to a schedule.

Turning up late

If you know you’re going to be unavoidably held up, call the interviewer, and explain your situation. Offer to reschedule at a time convenient for them or discuss with them a realistic eta. It’s not the best situation, but it will make a far better first impression than being late with no warning or worse, not making it at all.

Dressing inappropriately

Always dress appropriately for an interview. Wearing the correct attire shows prospective employers that you are serious about your profession.

Not researching the company

Make sure you know the ins and outs of the company you’re looking to work with. You should Google them for recent updates and news, check their socials for culture and updates, and familiarise yourself with the organisation’s website and history.

Bad-mouthing your former employer(s)

You might have left the worst job ever, on par with working for Trump, but it’s essential that you find a way to diplomatically discuss that. Discuss what you learned from possibly difficult working situations and how you handled them. Using positive answers demonstrates conflict resolution to your prospective employer. What’s more, an employer is always looking for answers on how you would handle yourself and may be hesitant to hire someone who they think will tell tales out of school.

Using your phone

This one seems obvious, but you’d be surprised. According to research by CareerBuilder, answering your phone, replying to a text or keeping the ringer on during an interview is a huge deal-breaker for over 65 per cent of hiring managers. It’s best just to keep the mobile off and respond to any missed calls or messages after the interview.

Having no questions to ask

It’s never a good idea to have no questions for your interviewer. Remember, it’s a two-way street. Ask relevant questions about the role and the company. You could ask about your potential team, the company’s direction or even progression opportunities. Remember, one question is better than none.

Not following up

Keep yourself front of mind by following up your interview with a quick thank-you email. Also, if you’ve been told to expect an update by a certain date, but that date’s passed, it’s essential that you send off a friendly follow-up email.

Corporatisation of farming: helping or harming?

Thu, 10 Nov 2022 07:12:58 GMT

The corporatisation of farming has always been a contentious subject. As with everything, there are two sides to that coin. The trend toward corporatisation brings capital, economic investment can bring with it more human capital, more opportunity, and growth to smaller rural communities. Of course, there’s also the downside, corporatisation has a direct effect on smaller producers, leaving them unable to compete in the market.

Economic advantages for all

For all the press around corporatisation and foreign ownership of Australian agriculture, 99% of Australian farm businesses are family owned and operated and 88% of farmland is Australian-owned.

Corporate investment sounds intimidating, but as WA Farmers president Rhys Turton noted; “there are family farming operations that are almost bordering on the size of corporate scale”.

A recent report by Colliers International noted that corporate investment in Australian agriculture is essential for growth, which can be seen in the recent takeover of South Australian organic and sustainable pacific oyster producer, Angel Seafood.

Listed on the Australian Securities Exchange in 2018, Angel Seafood has grown from a family-operated South Australian business to the state’s largest sustainable and organic certified Pacific oyster producer. In 2022 a takeover bid from Brisbane-based agricultural fund manager Laguna Bay Group.

The $32 million takeover was supported by more than 98 per cent of shareholders and approved by the Federal Court in June. However, with Angel’s founder and CEO Zac Halman retaining a significant proportion of his shareholding and remaining involved in the business, the family element is still at play, along with the capital for an aggressive expansion. They are now looking to increase production for a growing export market using the company’s systemised farming techniques. Growing community, employment, and economic opportunities.

Corporatizing the Family

Australia has also seen instances of family or co-op corporatisation, combatting the loss of competitive edge seen by smaller producers.

When offshore corporate entities started threatening the local farms in Circular Head, Tasmania, agribusiness entrepreneur Stephen Fisher saw a way he could help locals

to “come into the industry and have some ownership in [local farms]”.

His solution was to create Circular Head Farms, which raises funds from local investors to buy properties and then finds aspiring farmers to run them. The “sharefarmers” can raise their own cows and eventually buy a stake in the farm.

The first farm was bought in 2014 and its sharefarmer now owns a herd and a 40 per cent stake in a neighbouring property. Meanwhile, Circular Head Farms has grown into a network of 11 dairies, more than 4,200 hectares of farmland and 8,500 milking cows.

References: InDaily , Small Caps , Angel Seafood , Farm Weekly , NFF , ABC Rural ,

Interesting reading: The Rise of Agricultural Sale and Leaseback Transactions in Australia, Colliers

Profitability and Productivity from Natural Capital

Thu, 10 Nov 2022 06:59:44 GMT

Access to natural capital markets would put farmers at the forefront of the charge against climate change while improving on-farm productivity and generating additional income streams. That was the message from NSW Environment and Heritage Minister James Griffin at a recent Farm Writers’ Association of NSW event.

Minister Griffin used the opportunity to encourage landowners to consider natural capital as an asset class.

“Around the world, this market for environmental improvements and the investing opportunities which go with it are developing at light speed,” he said.

Natural capital – which includes soils, shelter belts, native vegetation, carbon, waterways, and wildlife biodiversity – is gaining interest from international markets. It has been regarded as a way to mitigate climate change, reverse biodiversity loss and improve agricultural productivity.

Many countries are developing natural capital markets, allowing landholders to access and trade credits accrued through undertaking ecological improvements to their farms.

In addition to the potential on-farm gains, access to global agricultural markets is increasingly dependent on environmental sustainability credentials. For net exporters like Australia, the race to comply with the requirements of trading partners is a priority.

“Whether we like it or not, other countries are bringing in legislation that penalises our exports if we are not doing this sort of thing,” Minister Griffin said.

During his speech, Minister Griffin said that the NSW Government was considering ways to introduce a natural asset market for farmers, including using accreditation schemes. Support from the government could also come in the form of incentives and market creation.

Roadmap to a Global Natural Capital Market

A recent thought piece published by the London Business School asserted that agriculture could play a pivotal role in helping the global environment to a “full recovery” in less than 30 years. Under the Nature Positive program, net loss would be fully restored by 2050, helping to mitigate the impacts of climate change and avoiding economic collapse associated with ecological degradation.

Currently, the global economy relies on the natural environment for around 50% of gross domestic product – valued at $44 trillion annually, according to the World Economic Forum. The World Wildlife Fund Living Plant Index argues that this figure is more likely to be around $125 trillion annually.

While protecting this economic value is a priority, developing natural capital markets could extend the value of nature-reliant industries. It has been estimated that the industry could hit $10.1 trillion annually by 2030 and employ 395 million people. That is in addition to the potential economic savings, such as the $300 billion annual bill for global natural disasters associated with climate change.

Discussions around potential natural capital markets are set to continue at the 2022 UN Biodiversity COP15 conference in Montreal.

Read more about natural capital opportunities in our previous article about the sale of NSW carbon credits to Microsoft .

Sources: Farm Online , London Business School

Ongoing Flood Events Threaten Crop Yields for Australian Farmers

Thu, 27 Oct 2022 07:18:14 GMT

Flood events across many Australian agricultural areas have had devastating effects on crop yields and will likely impact future food pricing and availability.

As floods continue to persist, farmers in northern Victoria are surveying the damage to current crops while also moving livestock to higher ground. Dairy farmers facing electricity outages are struggling to milk cows with some forced to throw out milk due to the lack of refrigeration. Dairy processor Fonterra said that it would continue to pay farmers for uncollected milk where flooding had restricted access.

Grain crop losses across the state are inevitable, but the full extent won’t be known for some time.

“We are all a bit concerned about the forecast for this coming week, and how much more [water] that might bring,” said Wimmera grain grower Andrew Weidemann.

“But it’s very hard to gauge, at this point, how much or how little [crop losses] might be,” he said.

Areas in New South Wales face a similar fate with growers facing multi-million dollar crop losses.

“We’ve also got 500 hectares of the most magnificent wheat crop, probably a million dollars worth of wheat, and it’s all going to go under,” said Deniliquin farmer Russell Tait.

“Every week, we seem to get 20 or 30 or 50mm of rain and as soon as it starts to get a bit dry it’s wet again,” he added.

“The other thing that’s being affected is the sowing of rice, because this is the time of year that we sow rice, and that’s been put back and affected.”

Flow-on effects for Australian shoppers will most likely be experienced in the fresh produce section as the floods impact current and future crops.

“The reports coming from these floods are devastating, and we know that our farmers and their communities are being severely impacted by these floods,” said Shaun Lindhe, communications manager at AUSVEG.

“Growers were already operating in a challenging and unpredictable environment, and this is another blow for hard-working farmers trying to get fresh food to Australian families,” he said.

“It is difficult to predict the extent of the situation at this early stage, but in the short-term, we anticipate that this will affect availability of supply and the logistics of moving produce to market.”

Agriculture Minister Murray Watts said that the floods would most likely have an impact on future food prices.

“But I think we’ve seen already in the floods we had in Queensland and New South Wales earlier in the year, that can have very dramatic effects on food supply and prices. This will be a serious longer-term consequence of these floods.”

In February this year, Minister Watts criticised then-Prime Minister Scott Morrison for not using money from the $4.7 billion disaster fund when Queensland faced the effects of floods and cyclones.

“Labor will do what the LNP haven’t – a real plan for disaster readiness,” he tweeted at the time.

Sources: Sydney Morning Herald , The Guardian , Twitter

Australian Government Signs up for Global Methane Pledge

Thu, 27 Oct 2022 07:15:45 GMT

The Australian Government has confirmed that it will sign a global pact to reduce methane emissions by 30% over the next 10 years, also promising farmers that no additional taxes or levies will apply as a result.

Australia joins the UK, US and EU and more than 100 additional nations who have backed the pledge which was previously dismissed by the Morrison Government because of concerns around the impact on agriculture.

Methane represents around a quarter of Australia’s total emissions, and half of all methane emissions are generated by agriculture. Globally, Australia is the 11th highest emitter of methane.

During the announcement last week, Climate Change Minister Chris Bowen said that it was essential for Australia to contribute to global emissions reductions.

“If this pledge is met, it will contribute to an avoidance of 0.2 degrees of warming, which is very important as we strive to keep the world as close as possible to one and a half degrees of warming,” said Climate Change minister Chris Bowen.

While Liberal party members have criticised the move, many industry groups have welcomed Australia’s membership with the pledge, including Farmers for Climate Action.

“Farmers deserve the security of a safe and stable climate in which to grow our food,”

Said the organisation’s CEO Dr Fiona Davis.

“Farm methane has been dropping while methane from the gas industry has been rising.”

John McGoverne, the head of the Cattle Council of Australia, said that the pledge was welcome “provided there are no new taxes or reduction of herd numbers.”

“The Australian beef industry is already on track to reach net zero emissions without reducing livestock numbers,” he added.

R&D Could Hold the Key to Methane Reductions

Minister Bowen backed the announcement of Australia’s pledge with a focus on research and development as a key strategy to support methane reduction strategies with $5 million being invested in projects to develop low-emissions feed supplements.

Several companies, including Rumin8 and FutureFeed, are currently trialling seaweed-based supplements for their ability to reduce the amount of methane emitted by cattle. Initial laboratory trials with Rumin8 have shown a 95% reduction in methane, while FutureFeeds promote a reduction of over 80%. It is also likely that farmers will be able to market beef with sustainable credentials and earn carbon credits.

While the products are yet to be commercialised, there is concern about the production and financial viability of seaweed-based cattle supplements. A recent study showed that the likely cost would be around $1000-a-head per year, and it is not yet clear whether the Australian seaweed industry will be able to produce the amount required without significant investment.

The potential supply issues have prompted Rumin8 to consider a pharmaceutical alternative with a pilot plant due to start production in 2023.

A long-acting dose – which has the ability to last for up to 6 months once ingested – is currently under development, providing a potential solution to extensive cattle operations.

Sources: ABC , Macquarie Port News , Financial Times

Job Advertising vs Job Description – What’s the Difference?

Thu, 20 Oct 2022 07:21:12 GMT

When we’re working with clients, we will send out two drafts – a job ad and a job description – but what’s the difference between these documents?

The terms “job ad” and “job description” are often used interchangeably, but they are very different documents with very different purposes.

To explain the difference in terms of fishing, your job ad is the lure or the bait, but your description is the hook. This analogy isn’t perfect, but it roughly demonstrates why you need both.

Hiring great agricultural staff means attracting great agricultural staff

Job ads (or what we call ad copy) are your first-line means of attraction. A job ad introduces your role to the prospective applicant, describing your organisation and the key requirements of a role; conveying why someone should want to work with you.

It’s a sales tool. A well-crafted job ad is essential in finding the right person for your role.

‘Superstar’ isn’t a job

Job ads that depict the role and your business are likely to attract more candidates.

This starts at the position title. The title you put on your position affects who sees it and is very likely to affect who applies.

Clear language and avoiding cliches (like ‘ninja’ or ‘superstar’) will help increase your position’s visibility. We also see a lot of titles that are very organisation specific which automatically limits applicants – meaning you could be missing out on some of the best people for your enterprise!

Clear, concise and magnetic

The language you use in the body of your ad is also critical. Some common expressions can raise red flags in applicants, restricting your talent pool. For instance, potential applicants often equate terms like “committed” or “high-performing” with “overworked”. Instead of “this job isn’t boring”, the phrase “no two days are the same” is often interpreted as “new issues arise daily”.

Our top tip on job advertisements comes from SEEK , who recommends ads be 300 – 750 words with a good balance of paragraphs and bullet points. If you’re recruiting a Farm Manager for a merino sheep enterprise, then an applicant is probably aware of the basics of the role you don’t need to go into the full responsibilities. They’re most interested in your company, culture and what sets you apart from other employers ( your EVP ).

See 5 ways to improve your job advertisements here.

An effective HR document

A job or position description, however, is an internal HR document. The position description is a full-length and comprehensive document that outlines important aspects of a position within the business. This includes reporting relationships, key task requirements, and expectations relating to behaviour and attitude.

Job Descriptions form a sound basis for recruitment, performance reviews, training and development. They provide clarity for staff and management, which in turn creates greater efficiency (and ultimately, profit).

The nuts and bolts of a position

As a formal HR document, certain areas should be addressed in your position description. Best practice for position descriptions is to include:

a summary outlining the prime function of the role
details of reporting requirements
key functions, responsibilities and accountabilities
Key Performance Indicators that clearly show how you’ll determine and measure the employee’s performance
essential and desirable skills, experience and qualifications
expectations relating to policies and procedures compliance

Understanding the difference between job ads and descriptions is vital to successful recruitment. Job ads ultimately lure applicants in. They need to be concise and tailored to the prospective employee. Job Descriptions, on the other hand, are formal documents that should inform the position you’re recruiting for.

References: SEEK , Datapeople , MyBusiness

Top 5 HR Policies Your Business Should Have

Tue, 18 Oct 2022 07:23:57 GMT

Having good HR policies is essential in agricultural enterprises to establish clear expectations and standards and to protect the employer.

According to the NSW Industrial Relations , well-written workplace policies:

comply with Australian legislation
are consistent with your enterprise’s values
demonstrate that the organisation is being operated in an efficient and businesslike manner
ensure uniformity and consistency in decision-making and operational procedures
foster stability and continuity
maintain the direction of the organisation even during periods of change
provide the framework for business planning
assist in assessing performance and establishing accountability
clarify functions and responsibilities

To help ensure your business is running as smoothly as possible, we’ve put together a list of the top 5 essential workplace policies all agricultural companies should have.

WHS Policy

Workplace injuries in agricultural businesses can range from mildly inconvenient (to both employee and employer) to devastatingly life-changing. Having a thorough WHS Policy isn’t really an option, in fact, it’s legally required in most states.

Chemical Safety in the Workplace (WHS) Policy

Some agricultural businesses may want to include a specific chemical safety policy in their documentation. The chemicals used in agribusinesses often pose health hazards if used or stored incorrectly. Under the WHS Act, a person conducting a business has the primary duty to ensure that the health and safety of workers and other persons are not put at risk from work carried out as part of the conduct of the business. This includes ensuring the safe use, handling, and storage of substances.

Bullying, Harassment & Discrimination Policy

Did you know that as an employer you are legally responsible for bullying, harassment, and discrimination in your business? To minimise the risk from this it’s crucial to have a comprehensive policy in writing. A good policy will help you in the event of complaints and define and outline behavioural standards.

Ensure your agribusiness is covered by updating or implementing your Bullying, Harassment & Discrimination Policy. Download our FREE Bullying, Harassment & Discrimination Policy Template here.

Code of Conduct

Employees are representatives of your business, so it’s important that you outline the standards of behaviour you expect from them. A Code of Conduct commonly outlines expectations around common issues, like dress code, phone use and the use of company property. Having a clearly defined Code of Conduct helps to demonstrate your values and helps to manage conduct in the workplace.

Drug & Alcohol Policy

While it may be clear that drugs and alcohol on company time can pose risks to your business, a drugs and alcohol policy is the best way to establish this. Drugs and alcohol policies will be different for every business and expectations need to be clearly outlined.

Having clearly defined policies and expectations is the best way to ensure your business can handle common workplace issues in line with Australian legislation and regulations.

The Lucas Group offers services designed to help agricultural organisations identify risk areas and ensure compliance with Australian legislation. If you’re concerned about your responsibilities as an employer, contact us for a no-obligation conversation about your HR needs.

Resources: Safe Work Australia , NSW IR

Bottom-Feeders Beware: Release of Herpes Virus to Control Carp One Step Closer

Thu, 13 Oct 2022 07:26:56 GMT

The long-awaited National Carp Control Plan (NCCP) has been delivered to the federal government but is yet to be released to the public.

The plan comes after years of delays and is meant to determine whether a carp herpes virus should be released into Australian waterways as a pest control method.

The Fisheries Research and Development Corporation (FRDC) assessed the feasibility of using the herpes virus Cyprinid to control carp in the Murray Darling Basin.

A herpes virus has previously devastated farmed carp stocks in the northern hemisphere and has long been considered to be the best option to manage the invasive species in Australian waters.

While initial testing has shown that the virus would be effective to control feral carp domestically, concern around the impact of dead carp on native ecosystems has been one of the main barriers to a wider spread release. Large volumes of rotting carp have the ability to reduce oxygen levels in the water which poses a significant threat to native fish species.

Some ecologists argue that the short term issues are a small price to pay for the longer-term ecosystem benefits that a carp-free system will bring.

“It will be very short-lived if there is a water quality problem and it will be for only one season for a lifetime of benefits,” said John Conallin, a freshwater fish researcher with the Institute of Land, Water and Society.

While the NCCP will make a recommendation on the use of the virus, individual state and territory governments and the federal government will all have to also agree in order for the virus program to go ahead.

Shadow agriculture minister David Littleproud, who oversaw the NCCP during the last government, said that Labor needed to make the report public sooner rather than later.

“I just have no idea why the Labor government won’t release the report immediately so everyone can see it, work through it, and have an opinion.”

“The interim recommendations the FRDC provided to me was the virus would eradicate around 96 per cent [of carp],” he added.

European Carp in Australia

Carp, which are native to central Asia, were originally imported to Europe where they became one of the most popular angling species. Early settlers in Australia imported them with the aim of recreating a European environment with the earliest carp introduction being recorded in 1859.

It is thought that carp have been in the Murray Darling Basin system since the 1920s, with a new species imported in the 1960s by an aquaculture farmer in Mildura. Flooding in the 1970s spread this new strain into the river system, and carp established populations in South Australia, New South Wales and Victoria.

With up to 1,000 fish per hectare, the river system has been significantly affected by the presence of European carp. As bottom feeders, carp are responsible for declines in water quality, reducing the amount of sunlight penetration required by native vegetation and fauna species, also competing with native fish for food and habitat.

Prolific breeders, a single 3kg carp can produce 3 million eggs in an average year.

Sources: ABC , Charles Sturt University , Department of Primary Industries .

New Fire Danger Rating System Launched for Bushfire Season

Thu, 15 Sep 2022 07:36:02 GMT

A new fire danger rating system has been launched, aiming to provide easy-to-understand risk indicators for Australians across all states and territories.

The simplified new system, which cost $50 million to develop, provides four risk ratings ranging from moderate to catastrophic. It is predicted that the approach will make decision-making for landholders and firefighters easier and remove the inconsistency created by state-based matrices.

Development by the Australian and New Zealand National Council for Fire and Emergency Services (AFAC) included a significant focus on the science behind bushfires including regional vegetation types and improved weather predictions. Combined, it is hoped that these indicators will provide more accurate and regionally specific fire danger warnings.

“There’s a really wide range of vegetation across Australia which wasn’t represented in the current system,” said Stuart Mathews, the project’s lead scientist.

“We’ve worked together with the states and territories and some of the national agencies to get their best vegetation and fuel information and put that all together in a consistent way, which means we’ve got a detailed understanding of the fuel that’s driving fire danger across the entire country.”

While Dr Mathews stressed that fires are inherently predictable, testing has already shown that the new system is more accurate than the current version.

“We tested our current system and our new rating system against 300 fires over past seasons and we found the current system was correct in describing risk for less than half of those fires,” he said. “For the new system it’s up to about two-thirds so there’s still room for improvement, but in the fire space where there’s a lot of uncertainty, that’s a significant improvement.”

The new rating system

New Fire Danger Rating System Welcomed by States

Initial feedback from bushfire responders and the community has been positive, with many fire management experts welcoming the consistency and simplicity of the new system.

Chris Hardman, chief fire officer with Forest Fire Management Victoria, said that the new approach would help communities at risk to “connect the fire danger rating to what action they should be taking on the ground”.

“It provides government and industry with better decision-making tools and builds a truly national system. Fires do not respect boundaries. The establishment of this national system will make a really significant improvement to how we communicate what the particular risks are at any given time to the community,” he added.

While La Nina conditions have provided wetter-than-average spring conditions, this will also likely result in higher fuel loads in the lead-up to bushfire season. Still, the national bushfire outlook is predicting an average or below-average fire season.

Summer rainfall could create a headache for the country’s summer croppers, but overall estimates show that conditions are largely favourable for Australia’s farmers.

“The Australian farming sector does better when we have more rather than less rainfall,” said Cheryl Kalisch-Gordon, a senior commodities analyst with Rabobank.

“If you look across the sector there is probably equal plus-risk and minus-risk.”

Sources: The Age , The ABC , The Guardian

Photo: Jo-Anne McArthur on Unsplash

For more information about the new Australian Fire Danger Rating System go to the AFAC website, here .

Who’ll Stop the Rain? La Niña Keeps Coming

Thu, 08 Sep 2022 07:41:03 GMT

The possibility of a third consecutive La Niña is threatening to bring more rain over spring and summer.

Australia’s Bureau of Meteorology is currently indicating at least a 70% chance of La Niña reforming later this year – triple its regular chances. Triple-dip La Niñas are relatively rare, having only occurred twice since 1950, in 1973-76 and 1998-2001.

“A third La Nina summer will be nationally positive [for farm values], but there will be nuances at a local level,” said Jared Greenville, executive director at ABARES, the science and economic research division of the Department of Agriculture.

According to Dr Greenville, in many areas and farming communities a third season of high rains will lift confidence levels and drive expansion efforts. Farm equity levels are currently high, with debt servicing rations low – leaving farmers in good stead.

There are Two Sides to Every Coin

A third La Niña brings benefits and downsides to rural and regional Australia.

In Australia, May to July rainfall has benefited 2022–23 production prospects of winter crops. Rainfall across eastern and southern Australia has been sufficient to maintain above-average pasture production and support livestock restocking, according to ABARES data.

ABARES data also shows that cropping farm income rose 28 per cent last financial year to $619,000, with livestock farms enjoying a 10 per cent rise to $202,000.

A triple-dip La Niña would mean cheaper water prices, with water storage at historically high levels. ABARES reports that on 25 August 2022, the volume of water held in storage was around 23,200 GL – around 92% of total capacity.

ABARES modelling indicates that the average water allocation price in the southern Murray–Darling Basin (sMDB) will be forecast to remain low in 2022–23 at $58/ML, $9/ML lower than 2021–22.

The north Australian beef production industry is also set to benefit from higher rainfall, with increased pasture availability driving industry momentum.

However, La Niña also indicates a risk of localised flooding and the possibility of a downgrade to wheat and crop prices.

Regions where crop quality could be impacted will probably experience some buyer hesitancy, while farmers in some areas are facing the longest wet period in living memory.

Farmers on the floodplains of the Macquarie Marshes haven’t had a break in rainfall or continuing releases from a full Burrendong Dam upstream. Their land hasn’t had time to dry out in months, leaving them underwater for almost 12 months.

Crop quality and rain impact on horticultural operations were hinted at in Costa Group’s August half-year results announcement . The report reminded investors that, while there has been favourable demand and pricing recently, “extreme weather conditions, including a prolonged La Nina period, have to date impacted quality, premium product packout rates and increased farming costs across all three growing regions.”

Even if official La Niña thresholds are not met, this summer’s above-average sea surface temperatures will likely bring rainfall. At this point, there is a strong chance of a third La Niña and a complementary IOD, which is likely to bring more rounds of flooding rains this spring and summer.

Our industry’s ability to minimise downside in off years and take advantage of good seasons will be crucial to getting through La Niña number three.

Sources: Australian Financial Review , Costa Group , ABARES , Bureau of Meteorology , ABC

Jobs and Skills Summit – All Hat and No Cattle?

Thu, 08 Sep 2022 07:38:49 GMT

The Labor Government’s Jobs and Skills Summit has ended with no meaningful solution for the agricultural industry.

36 immediate initiatives were agreed to, covering additional funding to TAFE and a one-off income credit to bring Aged Pensioners back to work this year.

None of the immediate initiatives employed are directed at the agriculture industry.

“As farmers, we’ve been at the frontline of Australia’s workforce challenges for years, and for years we’ve waited for solutions,” NFF President, Fiona Simson noted.

“The Summit helped move that conversation forward and achieved some consensus and momentum. But I can tell you as farmers we’re a bit sick of talking. It’s critically important that we start to turn all that talk into tangible action.”

Some outcomes from the summit will help agriculture, such as increasing skilled migration and simplifying enterprise bargaining. However, it remains unclear as to how the industry will fill the immediate skills gap, requiring at least 172,000 workers across our food supply chain.

“While much of the discussion at the Jobs Summit centred on migration for highly skilled workers – which is undoubtedly a challenge for agriculture – we are still left wondering how we will plug the yawning gap in lower-skilled workers,” said Ms Simson.

“We know the PALM isn’t the answer in isolation. We know domestic workers aren’t here in the numbers we need. We need appropriate visa pathways to bring in workers from around the world, and to ensure they’re having a positive experience in regional Australia.”

The lack of immediate solutions for the agricultural industry is reflected in the whitepaper released post-summit. Under ‘areas for further work’ the document notes that: “Government, industry and unions will pursue solutions to better skill, attract, protect and retain workers in the agriculture sector through a tripartite agriculture workforce working group”.

Workplace Enterprise Bargaining

Pledged legislative reforms to enterprise bargaining including multi-employer bargaining, modification of the “Better off Overall Test” (the BOOT) and access to flexible work arrangements. Changes will come quickly, with a commitment to immediately commence the necessary policy reviews and have legislation before the Parliament prior to Christmas.

Workplace Relations Minister Tony Burke has announced the Government is committed to implementing this change, with multi-employer bargaining allowing two or more employers to bargain together.

The Government will also look for changes to soften the BOOT and enable the Fair Work Commission (FWC) to interpret the BOOT in a more flexible manner when approving enterprise agreements.

Increased Migration

The Home Affairs Minister Clare O’Neil announced at the summit that the annual permanent immigration intake will increase from 160,000 to 195,000.

Additionally, regional migration places are set to increase from 9,000 to 34,000, and state and territory sponsored visas will be increasing from 11,000 to 31,000.

There will also be changes to student visas, extending the ability of current international students to work pre, post, and during their studies. The current relaxation of working hours for student visa holders will remain until June 2023, no longer limiting them to 40 hours a fortnight.

Post-study work rights will also increase for selected degrees from:

Two years to four years for select Bachelor’s degrees
Three years to five years for select Masters degrees
Four years to six years for select PhD’s

It was also announced that $63.1 million would be invested into visa processing, increasing staff capacity, and speeding up processing times.

Sources: Prime Minister of Australia , National Farmers Federation , Clayton Utz , Ethos Migration , Jobs and Skills Summit Outcomes , National Farmers Federation

Murray Darling Basin Failing on Cornerstone Environmental Target

Thu, 25 Aug 2022 07:44:00 GMT

A damning report released earlier this month has revealed that just a fraction of the proposed amount of water has been returned to the Murray Darling Basin system as environmental water.

The Murray Darling Basin Plan set a target of recovering and returning 450 billion litres of water to the floodplains and wetlands along the River Murray system in order for native ecosystems to live.

To date, only 0.5% of this water – around 2.6 gigalitres – has been delivered with the report authors deeming that the overall target “cannot be achieved” by 2024, according to a review under the Water Environment Special Fund (WESA). According to the report, very little of the $1.755 billion of funds set aside for the initiative has been spent.

A senior lecturer from the University of Adelaide said that the targets were doomed from the start as efficiency gains aren’t significant enough to support a 450 gigalitre target, comparing water savings to a zombie.

“It staggers around no matter how many times you try who was involved in the development of the Murray Darling Basin Plan, “ said Dr David Adamson from the university’s school of economics and public policy.

“You don’t know where your efficiency losses were, you don’t even know how much water you’re going to save… and so it then becomes actually quite interesting: what are you truly saving? Are you saving any water at all?” he added.

With water savings through efficiency gains clearly not working, focus now returns to the potential of water buyback schemes to recover water for the environment.

Buy Backs Back on the Table

Federal environment Minister Tanya Plibersek has suggested that water buybacks are “back on the table” and the South Australian Minister for Climate, Water and the Environment, Dr Susan Close has also indicated that she thinks that it would be a cost-effective way of saving the 450 gigalitre target.

“We’ve known that ever since 2010 that the buyback was the most efficient way possible [to recover water], cost far less, and was the best way going forward,” said Dr Adamson.

“Buybacks were incredibly popular, incredibly well-supported by the farmers.

“They knew what was happening [in the market], they had the conscious choice to decide whether they got out of agriculture, they could use that money [from buybacks] to transform their farming systems.

“It gave them great flexibility. It ended up with a far better reallocation of resources for farmers and allowed those farmers who wanted to get out, to get out. The efficiency program effectively locked farmers back in.”

Ms Plibersek claimed that the former government deliberately didn’t spend the WESA funds as part of a lack of interest in achieving the goals of the Murray Darling Basin Plan.

“The previous government had no intention on delivering on the Murray-Darling Basin Plan – they just didn’t have the guts to admit that before the election.

“Their failure to deliver on the plan wasn’t due to a lack of money – it was a lack of will.”

Sources: farmonline , The Guardian

Agriculture Feeling the Strain with More Jobs than Workers

Mon, 22 Aug 2022 07:46:02 GMT

For the first time in Australian history, there are more positions actively recruiting than there are people looking for work.

On Thursday (18 August 2022) the ABS announced that the unemployment rate dropped to a 48-year low of 3.4%.

While the lowest unemployment rate in decades seems like something to celebrate, it’s come about because fewer people are working or looking for a job. Australians in work or job-hunting dropped from 66.8 per cent to 66.4 per cent last month, resulting in lower unemployment.

Bjorn Jarvis, head of labour statistics at the ABS, said: “The fall in unemployment in July reflects an increasingly tight labour market, including high job vacancies and ongoing labour shortages, resulting in the lowest unemployment rate since August 1974.”

The ag sector isn’t the only industry struggling to fill positions.

“In July, there were fewer unemployed people (474,000) than there were job vacancies (480,000 in May),” noted Mr Jarvis.

That means there’s more than 1 vacancy per job seeker, more in ag.

The hits just keep on coming, with the ABS’s data on Employed persons by Industry division of main job (ANZSIC). May 2022’s seasonally adjusted number shows just under 278,500 people employed in Agriculture, Forestry and Fishing, the lowest number in over 35 years.

The ABS’s data also shows that over the last year, job mobility in Agriculture, Forestry and Fishing rose from 2.8 to 5.4 per cent. Indicating almost double the number of people leaving for other industries than in 2021.

Wage Growth Accelerating

In an effort to entice workers into vacant positions, and conversely, to stay in their current ones, pay is accelerating . Employers are competing harder, resulting in larger pay packets commissions and bonuses.

ABS data shows average income in the Agriculture, Forestry and Fishing industry rose 18.6% between 2020 and 2021 – over $10,000.

The Financial Review reports that a “wave of pay increases” is now hitting, in a perfect storm of high inflation, low unemployment and the need for continual forward momentum.

For more of The Lucas Group’s insights into employment, head here .

Source: ABS , ABC , Australian Financial Review

What is a Healthy Work/Life Balance?

Thu, 18 Aug 2022 07:50:02 GMT

It’s a popular buzzy term at the moment, but what is a healthy work/life balance? And how can you ensure your organisation is providing it?

Deloitte’s most recent Gen z and Millennial Survey showed that among the things most important to the largest age demographics in the workplace was mental health. Almost half of respondents either felt burned out due to the intensity of their workload or recently left their organisation due to burnout. More than half noted that their organization talks more about mental health recently, but there’s been no meaningful impact on employees.

For business owners, it is important to consider Deloitte’s results with the changing expectations of generations . Gen Z’s and Millennials expect workplace cultures and practices to support their desire for balance, presenting both opportunities and challenges.

Despite the evidence that working long hours can not only be detrimental to employees’ health and that there’s no evidence that employees who are overworked accomplish more , our workforce still tends to penalise employees who are transparent about working less. This comes from cultural assumptions and ingrained habits around work hours.

Not having an organisation geared toward a healthy work/life balance results in a vicious cycle of stress and burnout. Ultimately, by not providing a mentally healthy workplace or recognising the need for lower work hours you’ll lower your employee’s productivity and output, not to mention your retention rates.

Starting to foster a mentally healthy workplace culture can be difficult, but there are some things you can do as an employer to help start the process and in turn, start to increase output and staff retention.

Here are some helpful hints as to how your organisation can start to foster a good work/life balance in employees:

Encourage a culture of openness so employees can speak up if they feel they’re under too much pressure
Offer flexible and remote working where possible
Encourage breaks, during the working day and by using annual leave
Regularly review your employee’s workloads to make sure they are achievable
Increase support for parents and carers
Ask employees what would improve their work-life balance
Allow open working hours, measure performance based on tasks rather than hours in the office/at active work

Sources: Deloitte , Harvard Business Review , Mental Health Foundation (UK)

The Changing Face of Agriculture’s Workforce

Thu, 18 Aug 2022 07:48:06 GMT

There’s movement at the station as Australian businesses usher in the new face of agriculture’s workforce.

It’s a generation that’s been much maligned, but by 2025 Millennials are set to make up 75% of the workforce. They’re a crucial lynchpin to a business’s future success, but with that success is going to come a lot of change.

According to PWC , this is the first time in history that so many generations are co-existing in the workforce – a unique cultural challenge. Of course, an organisation’s success is dependent on its people. So how can you make sure you’re engaging with the changing expectations of your people?

Baby Boomers (Born 1946 -1964)

Boomers are the founding generation of the current work environment. They value flat structures, democratic cultures and a “team environment”. Having been in the workforce for 40+ years, Boomers tend to be comfortable with the status quo.

Generation X (Born 1965-1979)

The anti-institution generation, employees in this age bracket are now likely to be in higher positions. They grew up independent, self-reliant, and wary of Boomer values. The work culture has already shifted to accommodate Gen Xers, who work best in workplaces that are positive, fun, fast-paced, flexible, and informal (no ties, no jackets).

Millennials (Born 1980-1996) & Generation Z (Born 1996+)

The largest generation represented in the workplace is Millennials. With Gen Z hot on their heels. While there are a lot of differences between the two generations, they also have a lot in common when it comes to the workplace.

Millennials are the most diverse adult generation the western world has ever seen. Organisations must work to understand their values and expectations. Currently, understanding of Millennials in the workplace is poor. The media and older generations believe they are lazy, selfish, and obsessed with their phones. However, 40 per cent participated in volunteer work over the last year, 73 per cent reported working more than 40 hours a week, and 96 per cent would rather talk face to face when it comes to their careers.

Upward momentum, growth opportunities, and balance are among the top things Millennials and Gen Z are actively looking for in a workplace – and they’ll leave if they don’t find it. In fact, Millennials move positions an average of 4 times in their first decade in the workforce.

Pay is the primary reason Millennials and Gen Z’s leave their employers. Providing excellent remuneration, true work/life balance, and learning opportunities will help attract and retain skilled Millennials and Gen Z employees.

Sources: PWC , Deloitte , Forbes

Image: AgriShots

What We Learned at WOTL’s Thriving Women 2022

Thu, 11 Aug 2022 07:52:39 GMT

In early August this year, The Lucas Group sponsored and attended the Thriving Women 2022 conference hosted by WOTL .

Held amongst the trees at the Adelaide Hills Convention Centre in Hahndorf, the event focused on the “Impact of Us”, focusing on the contribution of women in Australian agriculture.

Three of the Lucas Group’s team headed up into the hills for the two-day event, so we’ve asked them to provide some insight into what they gained from the event:

What was your favourite experience or moment of Thriving Women 2022?

Claudia: Networking with new people, especially on Day 1 of the conference.

Michaela: My favourite experience of the event was listening to Annabel Crabb’s speech about empowerment and how women have changed the way people, especially how the government looks at female farmers and women in general. Her passion and confidence were inspiring, it was eye-opening for me.

Grace: Hearing Yung Nietschke present on Day 2 about her journey from post-war Vietnam to a wheat and sheep farm in the Barossa Valley. She was very impressive, and her story was so touching (won’t lie, I did tear up a little).

What was your biggest takeaway from the conference?

Claudia: The biggest takeaway [for me] was that women in the agricultural industry are so much more than farmers’ wives.

Michaela: My biggest takeaway from this event was how important HR is and the power of people as a resource. [The workshops I attended] further supported my beliefs that all industries rely on effective HR and People and without it, success is unattainable.

Grace: I found it very illuminating to hear the way different generations approached each subject and toolbox talk. It definitely helped inform me as to how the industry is proceeding.

Tell us one thing you learned about yourself.

Claudia: The one thing I learned about myself from the WOLF conference is that pushing back on certain things and saying no from time to time is okay. I also learnt better ways to communicate in a team environment.

Michaela: One thing I learned about myself from the event was that I needed to be more confident when talking to people and that confidence is key. I spent most of my time with Claudia and I watched her confidently network with many stores/people. She told me that as long as I am confident, then people will perceive me that way. This has changed my perspective and attitude when talking to people and will hopefully both improve my networking skills and recruiting skills for the future.

Grace: One thing I learned about myself at Thriving Women was that my contribution, as a woman in ag, is still a very valid and important part of the industry. It further impressed upon me that not everybody has the same views or strengths, but together we can continue to effect change with a similar goal.

Image: WOTL Facebook

Australian Agriculture Cracks $71 Billion in Annual Value

Fri, 05 Aug 2022 07:54:43 GMT

Favourable growing conditions and strong commodity prices helped Australian agriculture to a new record of more than $71 billion in farm gate value in 2020-21, a 17% increase according to the Australian Bureau of Statistics.

The ABS reported that the value of wheat doubled while production increased by 120%, netting $9.9 billion. Barley performed above average with a 24% price increase and 45% yield increase to $3.7 billion and the value of canola increased by 114% to $2.9 billion.

“Many farmers reported crop yields being at ‘once in a lifetime’ levels, with records broken in many regions for key commodities,” said Amanda Clark, Program Manager of Agriculture Statistics at the ABS.

Drought breaking rainfall helped to restore conditions for irrigated croppers with cotton climbing by a staggering 451.300 tonnes to 566,00 tonnes with an increase of $1.2 billion to $1.5 billion.

The value of livestock sales fell by 6% with declines in wool (down 4% to $2.6 billion) and milk (down 3% to $4.7 billion), but offset by strong gains from eggs which increased in value by 28% to $1.1 billion.

The dip in livestock values is largely tied up with favourable growing conditions which encouraged many growers to increase herd sizes given the additional feed availability. The national cattle herd increased by 4% to 22.1 miillion head and the sheep flock grew by 7% to 68.1 million head.

Of Australia’s 387 million hectares of land, 332 million hectares are grazed while just 32 million hectares are used for cropping.

Outlook Maintains Momentum

Released last month, Rural Bank’s outlook report predicts that the positive momentum will continue this financial year with wet conditions providing a solid start to the growing season.

“It’s a good outlook and quite positive, and it’s great to see this three years in a row for our producers … where we’ve had good conditions across both the seasons and commodity prices,” said Rural Bank’s Andrew Smith.

The overall forecast predicts an above average winter crop yield and will help livestock farmers to continue rebuilding herd numbers, with strong international interest helping to sustain values.

“We’ve been growing pretty strongly our lamb exports into the US for the last couple of years, but this last 12 months we’ve seen markets like the UAE, South Korea, Malaysia, Saudi Arabia increasing as well,” said Mr Smith.

Similarly the new Australia-India economic cooperation and trade agreement will boost export opportunities for almond, wool, lentil and wine grape growers, providing a sniff of relief for the wine industry suffering the effects of China’s stifling tariffs.

Lobster and barley are other commodities on China’s black list, although Asian demand for Australian grains has increased on the back of supply issues caused by Russia-Ukraine conflict.

Sources: Department of Agriculture, Fisheries and Forestry , Australian Bureau of Statistics , Beef Central , The West Australian

Biosecurity Beefed Up Against Foot and Mouth Disease

Thu, 21 Jul 2022 08:51:52 GMT

Discovery of FMD in Imported Food Products

Biosecurity measures at Australian airports have been bolstered amid the discovery of fragments of Foot and Mouth Disease (FMD) in pork products in Melbourne.

Packages of dried pork – branded as Pork Floss – have been seized from supermarket shelves and warehouses after viral fragments of both FMD and African Swine Fever (ASF) were detected during routine testing. FMD fragments have also been detected in beef products declared by a passenger at the border.

The government moved to assure Australians that neither discovery constitutes an incursion or outbreak.

Passengers returning from Indonesia will now need to use disinfecting foot mats upon arrival to reduce the risk of FMD being brought into Australia as part of the latest measures to be implemented in the fight to prevent an outbreak.

“These sanitation mats will be a physical reminder to passengers to do the right thing to limit any spread of FMD, and will be used in conjunction with our current measures, such as passenger declaration, 100 per cent profiling of all passengers entering from Indonesia, real-time risk assessments, questioning and shoe cleaning,” said Agriculture Minister Murray Watts.

“We still encourage Australians to clean their shoes and clothing, and even leave their footwear overseas if they can,” he added.

The mats, which are currently being shipped to international terminals, will be used by passengers to remove soil and dirt from their shoes and will contain a citric acid solution as a disinfectant.

In an interview with ABC, National Farmers’ Federation President Fiona Simson said that she was comfortable with the level of current measures in place to prevent an incursion of FMD.

“We welcome Murray Watt’s announcement today about the foot mats in the current circumstances with Indonesia and we welcome the government’s support to the Indonesians as well as they work in their own country getting on top of these incursions,” she said.

Ms Simson praised the agriculture minister for stepping up biosecurity measures but said that the government needed to prosecute passengers found to be breaching relevant laws.

Opposition Calls for a Border Closure with Indonesia

Shadow Immigration Minister Dan Tehan called for Australia’s border with Indonesia to be closed in order to prevent the spread of FMD.

“If that is the advice that the experts say that we need to undertake to stop this from getting into Australia then absolutely we have to consider that,” he told Sky News.

“This is too serious.”

Meanwhile, Mark Shipp, Chief Veterinary Officer, said that he was confident that Australia could prevent FMD from arriving.

“Many countries in our region have foot and mouth disease, and we’ve been dealing with that for decades,” he said.

“We know that once it entered Indonesia it would get into Bali and spread further, and we ramped up our biosecurity efforts in response to that.”

Sources: News , Beef Central , ABC

Salaries Creeping Up Across Agriculture

Thu, 14 Jul 2022 09:00:40 GMT

Salary, it’s a key factor for candidates, triggering them to look for new roles and playing a large part in why they accept positions.

According to SEEK , 40% of candidates say that salary and compensation are more important now than compared to before COVID.

With unemployment in Australia now at 3.5% and the number of job ads rising 41.4% from 2019 to 2022, there is an increased demand for workers. In this kind of candidate-short market , the increased demand for workers means employers need to make better offers to stay competitive.

Agricultural salaries are among those headed for an increase. Compared to pre-pandemic farm salaries are up across the board, with some increasing as much as 21%. Based on average advertised salaries, SEEK compared data from Nov 21 – Feb 22 and Nov 19 – Feb 20.

The highest jump in the ag industry was for labourers, whose average annual salary has increased 21% to $62,136. Farm Managers have experienced an increase of 10%, with the average advertised salary coming in at $88,089.

Source: SEEK

Rising salaries can be attributed to many external factors, fewer candidates, lower unemployment, higher costs of living… they all contribute. What’s undeniable is that the landscape has changed and increasing salaries are unavoidable for employers.

Biosecurity Breach: Australian Bee Industry Shut Down by Varroa Mite Outbreak

Thu, 07 Jul 2022 09:04:03 GMT

Around 18 million honeybees have been exterminated in the first wave of containment measures in response to Australia’s first known outbreak of varroa mites.

The discovery of the parasite in honey colonies in Newcastle has resulted in an eradication zone being set up around the city and the immediate lockdown of bees in New South Wales. Varroa mites have been identified on several additional properties since then including at Buladelah, 100 kilometres north of Newcastle.

New South Wales accounts for half of Australia’s bee industry, worth around $70 million annually. Many crops rely on bees for pollination including the almond sector worth $1 billion per year. Hives would usually be transported to pollinate canola, macadamias, blueberries, cherries and avocados, putting an additional strain on many sectors already facing the rising cost of inputs.

Honey producer Trevor Monson said that the industry was on high alert since news of the parasite first broke.

“It doesn’t look good. It appears the mite has been here for some time.”

“I turned 75 a couple of weeks ago and was due to retire but those plans have been disrupted,” he added.

Australia is the last major honey producer to face varroa mite, which has been responsible for a sharp decline in the number of colonies globally, and the associated drop in honey production.

Apiarist Anna Scobie, who has 90 hives facing destruction, said that the Australian industry might have to consider learning to live with the mite.

“We will all just have to start to use the processes that the rest of the world has done. That may mean we can return to beekeeping in this area sooner because everyone else is also living with varroa mite. But if we can eradicate it, we need to try to do that as best we can,” she said.

“Between the drought, fires, floods and now varroa there seems to be a bit of bad luck for beekeepers lately”.

The news comes amid increasing concern among the livestock industry as many South-East Asian countries deal with Foot and Mouth and Lumpy Skin disease. Only last weekend, Foot and Mouth Disease (FMD) was detected in Bali, making many nervous about the potential for it to be transported to Australia via tourists.

Agriculture Minister Murray Watt announced that biosecurity measures would be stepped up amid the risk of travellers returning from FMD hotspots.

“Following official confirmation from Indonesian authorities yesterday that FMD had spread to Bali, new measures were immediately imposed to protect Australia’s livestock industry from this threat,” he said.

“High-risk materials cannot be brought into the country, including contaminated equipment or clothing, [and] animals or animal products such as meat products and cheese.”

Additional measures also include additional biosecurity detector dogs in Darwin and Cairns airports, additional signage and expanded publicity campaigns.

Biosecurity officers will also board arriving flights from Indonesia.

Sources: Financial Times , Business Insider , ABC

Image: Photo by Al Mabin at Agrishots

Backlash from Kiwi Farmers Amid Proposed Carbon Tax on Livestock

Thu, 23 Jun 2022 09:09:05 GMT

Farmers on both sides of the ditch have rejected the proposed livestock emissions levy currently being considered for New Zealand’s agriculture sector.

Industry body Beef + Lamb New Zealand has been working with the New Zealand Government to design a farm-level levy on sheep and cattle in order for agriculture to be excluded from an emissions trading scheme.

Andrew Morrison, the chair of Beef + Lamb New Zealand, said that the scheme, which wouldn’t be adopted until 2025, was essential for maintaining social license.

“This is our sector’s plan to manage emissions on-farm in a practical and fair way while keeping agriculture out of an emissions trading scheme,” he said.

“Doing nothing is not an option. Our consumers are asking for action and so are our communities.”

Many farmers have hit back at the plan, saying that another tax would drastically reduce the profitability and viability of sheep and cattle enterprises.

“There is no support from grassroots farmers in New Zealand for this tax,” said Steve Craston, a dairy farmer near Hamilton on New Zealand’s north island.

“By 2030, a lot of farmers will paying $15,000-$50,000 each for this tax and it’s going to cause a huge amount of damage. A lot of these guys will just be forced out of business.”

Mr Cranston said that New Zealand farming operated on a climate-neutral basis and that efforts to reduce emissions would offset industries outside agriculture.

“This is an issue for farmers globally because consumers around the world are being led to believe that farming is bad for the climate,” he said. “I think we really need some leadership by the IPCC (Intergovernmental Panel on Climate Change) and scientific community to get together and fix agricultural emissions accounting because at the moment it’s highly misleading and it’s damaging all of our reputations.”

Carbon Neutrality Still the Goal for Australian Farmers

While the move has worried some Australian farmers, the Agriculture Minister sought to reassure the industry that a similar approach would not be on the cards domestically.

“A tax similar to the one floated in NZ is not something the government is considering. The Australian government will continue to support and work with our agricultural industries to reduce their emissions,” said Agriculture Minister Murray Watts.

“The Australian red meat industry has set its own target to be carbon neutral by 2030.”

Australian livestock farmers have already undertaken much of the work to achieve carbon neutrality with the red meat sector slashing their carbon emissions by more than 50% between 2005 and 2016.

Under the CN30 program, Meat and Livestock Australia has pledged almost $200 million in investments to help farmers achieve a net-zero target by 2030, mainly through the adoption of greenhouse gas emissions avoidance activities and by encouraging farmers to sequester carbon on-farm.

Mitigating Carbon “More than Ticking a Box”

In Western Victoria, Mark Wootton’s farming operation achieved carbon neutrality in 2010 by planting 600 hectares of trees on his 3,300 hectare property near Hamilton.

While the milestone has provided a marketing advantage, Mr Wootton said that the improvements to his farm had also improved productivity and biodiversity.

“There’s the shelter that improves your pasture growth because the soil’s warmer, there are higher lambing percentages, and better calving because you’ve got better shelter,” he said.

“We have amazing biodiversity gains here. We started with 47 species of birds, we now have 159, so there are a lot of good reasons to do it beyond the carbon neutrality.”

Sources: ABC , MLA , ABC

Image: Al Mabin

A New Look for The Lucas Group

Thu, 09 Jun 2022 09:11:02 GMT

You might have noticed from our newsletter and website that The Lucas Group has just completed a major rebranding.

The face of Australian agriculture, HR, and recruitment has changed a lot in the 30+ years we’ve been operating, but our face hasn’t, which is why we’ve given our brand a facelift.

The Lucas Group has been Australia’s premier agricultural recruitment and executive search consultancy. We’ve been connecting people in the agricultural industries for over 30 years, ensuring our continued success.

Our new-look website, social media and brandmark are all reflective of the continual modernisation of agriculture and the changing needs of the industry.

“Maintaining our roots was very important to us through the rebranding process, however, so was modernising our organisation,” said Managing Director, Geoff Lucas.

“Our new logo maintains the authenticity and agricultural foundation of The Lucas Group, representing the sky, grass, and wheat, but with an updated feel. The brandmark has been rotated to represent the wind and the colours updated to represent the vibrancy of Australian agriculture.”

“The new website is easier to navigate and more clearly represents what The Lucas Group stands for and our place in the industry.”

Visit lucasgroup.com.au to explore the new-feel website and brand.

For over three decades, The Lucas Group has been recruiting the right people for the right positions. We’re Australia’s premier agri-industry recruitment firm. Providing human resource consulting services across the Australian agriculture supply chain.

Our team members have agricultural backgrounds and knowledge, providing unparalleled expertise to the people that make Australian ag a thriving industry.

On-farm or in the boardroom… if it involves your people, you need our people.

New Challenges for Australian Agriculture as ALP Forms Majority Government

Thu, 02 Jun 2022 09:13:19 GMT

*This post was updated on 21 June 2023 to reflect recent statements regarding live export.*

The Australian Labor Party has won the 2022 election, forming a majority government in the lower house and signalling a new direction in policy areas that will no doubt affect rural Australia, agriculture and agribusiness.

With 11 green seats in the upper house, the ALP will have to gain the support of those senators in order to pass legislation, which will most likely speed up action on climate change but could also result in policies that will challenge rural Australia and change the playing fields for many agricultural sectors.

Live Export Ban Looms

Labor has already vowed to phase out the live export of sheep in a move that will decimate an industry largely operating out of Western Australia. Valued at $92 million per year, Australia exports around 600,000 head of sheep per year, mostly to Kuwait.

Former Agriculture Minister David Littleproud warned voters before the election that Labor’s approach would “destroy 3,000 people’s jobs”.

“There is still demand for live animal exports, not only on a cultural basis, but also on the basis that they don’t have the cold storage facilities, so it comes as a food security issue for these countries,’ he said.

Earlier this month, the Prime Minister said that the cessation of live sheep exports wouldn’t be implemented in his first term in office.

“No one’s envisaging a phase-out in this term of government,” said Mr Albanese.

“We haven’t put a timeframe on [ending live sheep exports] because we want to make sure that we consult with farmers, make sure that they’re looked after, make sure as well that we consult with the WA government, and it is particularly affected given the nature of where the industry is located,” he added.

While the party claims that there are no plans to cease the live export of cattle, the Greens have proposed a blanket ban on all live exports in addition to intensive factory farming and even horse and greyhound racing.

Ag Labour Force in Focus

Another area of focus for rural Australia will be the impact of Labor’s policy on foreign agriculture workers as they scrap the coalition’s new ag visa scheme in favour of an extended Pacific Australia Labour Mobility program (PALM). PALM will foot the bill for workers’ upfront travel costs to Australia, and allow visa holders to bring their partners and children here with the new government claiming that there are already 55,000 workers ready to participate.

AUSVEG spokesperson Tyson Cattle said that the industry was hopeful that the horticulture industry would thrive under the new government.

“There’s been a long history of where a Labor government has delivered good outcomes for Australian agriculture and horticulture,” said Mr Cattle.

While the National Farmers Federation have previously criticised Labor’s ag visa policy, they have renewed their pledge to work with the government “to address chronic labour shortages crippling the farming sector”.

“All of this will help not just by providing food for our tables, fibre for our clothes and timber for our buildings, but also with job opportunities and addressing the rising costs of groceries,” said Fiona Simson, Chair of the NFF.

“Each day Australians are feeling the pain at the supermarket checkout. There are several factors at play, but improving supply chain resilience, competition law reform and worker availability will go a long way to keeping essentials affordable.”

Murray Watts Appointed Minister for Agriculture

Ms Simson also welcomed the appointment of Senator Murray Watt as Australia’s new Minister for Agriculture, Fisheries and Foresty

“Now more than ever agriculture needs strong leadership as our farmers tackle the challenges of climate change, workforce shortages, supply chain disruptions and biosecurity threats from overseas,” she said.

Mr Watts was a solicitor before taking up a career as a public servant in the Queensland Department of Premier and Cabinet.

In addition to his agriculture portfolio, he will also serve as the Minister for Emergency Management.

Sources: ABC , NFF , The Greens , Beef Central , The Guardian

Vote 1 for Agriculture – Farming-Friendly Policies 2022

Thu, 19 May 2022 09:15:42 GMT

In the lead up to voting this weekend, the National Farmers Federation (NFF) has launched a policy voting guide comparing the three major political parties based on five key policy areas – regional growth, environmental sustainability, digital connectivity, access to foreign labour and competition law reform – as a way to help voters make a more informed choice in the lead up to the upcoming election.

“The NFF consulted with farmers, industry and regional voters about what they require from our next Government. The resulting Time to Thrive election platform provides a clear pathway forward, offering solutions to workforce shortages; agriculture’s intersection with climate change; biosecurity funding; connectivity; regional growth; unfair competition laws and more,” said NFF President Fiona Simson.

While the coalition’s lack of commitment to date around climate change has frustrated many long-term liberal voters in regional and rural areas, Simon Birmingham’s recent indication that the instant asset write-off will end in 2023 has perhaps come as the nail in the coffin for some.

While labour has agreed to support existing legislated tax measures, they perform poorly in their approach to securing seasonal labour, proposing that only workers from pacific nations be eligible for a visa, despite agreeing to foot the bill for the majority of expenses relating to workers’ upfront travel costs.

“Early in the campaign, Labor put the brakes on a solution to farmers’ workforce woes by all but scrapping the NFF-led Ag Visa. The Coalition continues to support the Ag Visa which they made a reality last September after six years of advocacy by the NFF. The Greens also back the Visa,” she added.

Ms Simson was also highly critical of Labor’s intention to end live sheep exports.

“It shows that on this issue, Labor continues to bow to pressure from radical extremists and is prepared to ignore significantly improved animal welfare outcomes and the detrimental impact the decision would have on farmers and communities”.

While both major parties have comprehensive climate plans, Ms Simson noted that more work needs to be done to “better understand the challenges and opportunities for agriculture” and a more sophisticated approach to carbon accounting.

“The NFF also welcomes a commitment from the Coalition to changing the tax treatment for new commodities, such as carbon and biodiversity, a move that should be adopted by all parties.”

The Rise of Teal Independents

Offering an alternative to the major parties, momentum among so-called teal independents could dislodge liberal incumbents from traditional safe seats.

Largely targeting frustrated liberal voters, teal independents are all partially funded by Climate 200 and are campaigning for urgent action on climate change, honesty in politics and gender equity.

Most represent largely urban or peri-urban electorates, but the rising popularity of teal independents could result in a hung parliament and therefore strike a deal with the winning party to form a minority government.

While independent Rebekah Sharkie has openly stated that she would reach out to the coalition rather than labour, most of her counterparts are reserving their strategy until after the votes are counted.

Sources: SBS , Climate 200 , ABC , Time to Thrive , NFF

Cattle Industry on Alert for Foot-and-Mouth Disease

Fri, 13 May 2022 09:18:19 GMT

Australian livestock producers should be on alert but not alarmed after foot-and-mouth disease was detected in Indonesian cattle.

Around 2,000 head of cattle have been diagnosed with the disease, the first time it has been detected in Indonesia since 1986. Indonesian authorities suspect that the disease has spread from Malaysia, but did not confirm the source.

Industry groups are calling for a proactive approach to prevent the disease from spreading to Australia while the Australian government has offered Indonesia financial aid to secure a vaccine, as well as technical support. According to Australia’s chief vet, the presence of foot-and-mouth disease in Indonesia significantly increases the risk of an outbreak in Australia.

“We estimated two years ago that the risk was 9 per cent within the next five years,” said Mark Schipp.

“I would expect that that risk would have at least doubled given the proximity of Indonesia, the trade that we have with Indonesia in sending live cattle up there, and the risk of returning stockmen and travellers from Indonesia,” he added.

An outbreak on Australian shores would have a catastrophic impact on the industry with modelling from 2013 suggesting that foot-and-mouth disease would cost $51 billion in lost revenue. The Cattle Council have suggested that the figure would be closer to $100 in today’s terms given the increase in cattle values and trade volumes.

Farmers in Western Australia are calling for a more focussed approach to biosecurity in order to prevent the spread of both foot-and-mouth disease and lumpy skin disease.

Haydn Sale, the manager of eight cattle stations in the Kimberley Ranges, said graziers are cautiously concerned about the risk posed by an outbreak of either condition.

“This is a huge threat. If either of those diseases got into Western Australia it would devastate the industry — it feels like we are underprepared,” he said.

“We should have been in front of this some time ago — it feels like we have left it pretty late. It would shut down our beef industry under the current export protocols.”

Lumpy skin disease is characterised by fever, lethargy and a skin condition but is not generally fatal. Spread by flies, mozzies and ticks, it causes animal welfare issues and losses in production. Australia has retained its status as lumpy skin disease-free, but with the infection spreading through South East Asia, the risk of a domestic outbreak has increased.

Symptoms of foot-and-mouth include blisters around the mouth, limping and drooling and the disease can affect any cloven-hoofed animals, including sheep, goats and pigs. Authorities are warning livestock owners to be on the lookout for signs of both diseases and to report any suspected or confirmed cases to their veterinarian and the Emergency Animal Disease Watch Hotline on 1800 675 888.

An outbreak of foot and mouth disease in the United Kingdom in 2001 cost the industry an estimated $19 billion. In a 1967 outbreak of the disease, more than 430,000 animals were euthanised.

Sources: Department of Agriculture, Water and the Environment , ABC , ABC , ABC , 2GB

Commodity Shock: World Bank Forecasts Steep Rise in Food Costs

Mon, 02 May 2022 09:22:21 GMT

Food prices are at their highest since records began 60 years ago, and are set to continue rising, according to the most recent commodity outlook published by the World Bank.

The report predicts that wheat will rise in value by 42.7%, barley by 33.3%, 20% for soybeans, 29.8% for oils and more than 40% for chicken, with increases directly linked to the cessation of exports from Ukraine and Russia.

Adverse growing conditions in China and North America are set to further exacerbate the issue, meaning a drop in prices will not be expected in the near future.

“We expect reduced crop supplies – caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region – to drive continued tightness in global grain markets for the next few years,” said Juan Luciano – chief executive of Archer Daniels Midland – one of the world’s biggest food commodity traders.

The US-based firm has recently announced a 53% increase in net earnings for the first quarter of the 2022 calendar year, up to $1.05billion.

While wheat supplies could be secured from other exporters in the short term, doubt lingers over the global yield as fertilizer prices are expected to rise by 69% this year alone.

“There’s a real risk that as farmers start to use fewer fertilisers, agricultural yields will decline,” said Senior Economist from the World Bank, Peter Nagle.

Overall, commodity values are expected to peak in 2022 and remain much higher than previous predictions with much riding on the conflict in Ukraine. The World Bank has reported that food prices are unlikely to soften until the end of 2024.

In addition to the increase in food and fertiliser costs, the impact on global markets is being further exacerbated by energy prices which are at their highest since the 1973 oil crisis.

“Overall, this amounts to the largest commodity shock we’ve experienced since the 1970s. As was the case then, the shock is being aggravated by a surge in restrictions in trade of food, fuel and fertilizers,” said Indermit Gill, vice president for equitable growth, finance, and institutions at the World Bank.

Energy prices are set to continue to rise – by more than 50% this year, before softening in 2023 and 2024, but some economists are predicting that the volatility of the global grain market could keep prices up over the medium term.

American financier CoBank has predicted that the impact on the availability of grain will likely linger for more than two years.

“We expect a significant tightening in available stocks-to-use ratios for both corn and wheat,” said Kenneth Zuckerberg, CoBank’s lead grain and farm supply economist.

“Grain prices will remain elevated and volatile for the foreseeable future. It’s an environment that will require U.S. grain cooperatives and exporters to maintain high capital levels and excess liquidity to fund operational and risk management activities.”

Sources: AgDaily , Insider

Photo by gemma on Unsplash

Pulse Protein Boom on the Menu as Consumer Habits Change

Thu, 21 Apr 2022 09:33:01 GMT

While the average Aussie is more likely to favour a lamb chop over a plant-based veggie burger, the rise of the pulse protein market is set to offer Australian agriculture a lentil opportunity.

This emerging sector is attracting a significant amount of interest from industry and government, including traditionally meat-focussed operators such as Thomas Foods International. The South Australian based meat processor has recently entered into a partnership with Australian Plant Proteins and Australian Milling Group in a $378 million project to construct three plant protein manufacturing facilities.

Backed by $113 million of federal money and $65 million from the state government, the construction of these new manufacturing plants will allow the consortium to produce products including burgers, sausages and mince from pulse protein ingredients. The project will quadruple production in South Australia, to produce 25,000 tonnes of pulse protein yearly.

“For Thomas Foods International, we see plant-based protein as a natural complement to our traditional product offering and allows us to reach new markets and customers,” said TFI’s Managing Director, Darren Thomas.

“The market for plant-based products is also expanding rapidly and we see great opportunity to leverage our experience and expertise into this exciting new opportunity for local farmers and consumers across the globe.”

The opportunities for the global alternative protein market are set to rise, with an estimated US$85 billion in sales predicted by 2030 – an increase of $80 billion from the sales in 2018. Australian consumers are set to drive a 570-fold increase in the value of meat substitutes between just 2020 and 2025 with Europe and the United States driving the lion’s share of international demand.

Minister for Finance and Senator for South Australia Simon Birmingham said that the development of the pulse protein manufacturing industry aligned with a new sustainability initiative as well as offering an economic benefit.

“This investment by the Government along with the private sector will put SA ahead of the pack in the manufacturing of products for the high-growth domestic and booming global plant-based foods market,” he said.

“It is a major step forward in transforming South Australia into a plant-based protein manufacturing and export powerhouse.

“It will not only generate thousands of local jobs but has the potential to generate billions in export dollars for our state.

“Demand for plant-based foods is booming globally. Just as SA leads Australia in renewable energy generation this investment will put us at the forefront of capitalising on this environmental trend too.”

The increased capacity of South Australia’s pulse protein manufacturing industry is set to create up to 1345 construction jobs with 384 manufacturing jobs once the facility is online. It is estimated that the plant protein value chain will support more than 8,500 jobs by 2034, contributing in excess of $4 billion to national revenue.

“Fake Food” Summit Captures Industry Backing

Interest in the alternative foods scene has seen the launch of Australia’s first-ever dedicated industry event with the AltProteins22 conference due to be hosted in Melbourne on the 17 May.

While the event is being hosted by controversial “alternative protein think tank” Food Frontier, the wider agriculture industry seems to be backing the program with Victorian Agriculture Minister Mary-Anne Thomas billed as a speaker. Also on the program is David Jochinke, a Victorian Grain Grower and current vice president of the National Farmers Federation.

“As demand for new, sustainable sources of protein continues to grow globally, forums like AltProteins 22 are essential to foster critical conversations and collaborations that enable our food producers and policymakers to claim a leading role,” said Thomas King, founder of Food Frontier.

Sources: Just Food , Markets and Markets , Farm Online , FoodDive , AUManufacturing , Minister for Industry, Energy and Emissions Reduction

Foreign Investment Remains Stable Despite Activity in AusAg - The Lucas Group

Mon, 11 Apr 2022 09:35:29 GMT

While a recent flurry of transactions has seen a number of farming aggregations change hands, the rate of foreign investment in Australia remains largely unchanged.

US-based pension fund Proterra Investment Partners has recently put the last of its Australian investments on the market, offering a portfolio of farming properties across three states.

Vaucluse (4,448 hectares) in Tasmania, One Tree (23,594 ha) in Queensland and New South Wales, and Racecourse (14,425 ha) in Queensland were recently listed for sale with an estimated price tag of around $400 million.

Proterra Investment Partners sold a 22,500 ha aggregation for $360 million late last year. Corinella Farms, comprising a total of 49 properties, included land across the Wimmera and South Australia with a predominant cropping focus.

“Proterra has done an outstanding job to strategically aggregate land and water assets and to transition these into highly productive aggregations, now representing more than $400 million in value, across wide-ranging geographical areas and commodities,” said Danny Thomas, a senior director at LAWD which brokered the sale.

While Proterra had planned to sell its Australian interests as part of a 10-year exit strategy, the recent surge in farmland values had forced the company to reconsider its timeline.

“It is a great time to capitalise on the existing strong market while there is an insatiable appetite from investors who want to enter or expand in the agriculture space,” said Becs Willson, managing director of Proterra.

Now looking at the sale of their remaining assets, Proterra will be looking to make capitalise on market buoyancy to give “strong returns to our investors”.

The redevelopment of properties like Vaucluse will likely provide the returns they’re anticipating, with the property now one of Tasmania’s biggest grain producers with the additional benefit of insufficient local supply.

“Operating a five-year crop rotation across the farm, we have established Vaucluse as a high-calibre, large-scale cereal producer to benefit from strong demand from the Tasmanian livestock and aquaculture industries in an operating environment where there is limited local production,” said Ms Willson.

The property features extensive irrigation infrastructure for the production of grains, poppies, carrots and hemp and has a water entitlement of more than 15,000 megalitres with 9000 ML of on-farm water storage.

“By investing heavily in water infrastructure and agronomics, we have significantly improved yields, while the construction of a 5424-tonne grain storage facility has further allowed us to extract a premium price by holding grain on behalf of customers and delivering throughout the year to guarantee a consistently high-quality product,” Ms Willson added.

Foreign Investment Rate Stable

Despite the activity among foreign investors, the foreign investment rate in Australian agricultural land has been consistent over the last five years.

China remains the biggest foreign stakeholder in Australia (2.3%), but the majority of Chinese interests are on a leasehold basis. Following the Chinese, the UK has a 2.2% stake, with the USA third (0.8%), the Netherlands (0.7%) and Canada (0.6%).

On a freehold only basis, the Netherlands is the most significant investor with 1.6 million hectares of Australian farmland.

At the end of the last financial year, 14.1 per cent of agricultural land has “some level” of foreign ownership – the equivalent of 53 million hectares.

Sources: Farm Weekly , Farm Online

The Rising Cost of Hiring Hits Agriculture

Wed, 06 Apr 2022 09:37:24 GMT

The HR Industry Benchmark Survey by ELMO Software has revealed the cost of hiring an employee has more than doubled in the past year.

It now costs an average of $23,860 per candidate, an increase of $13,360 on last year’s costs. The time it takes to hire has also increased, sitting at an average of 40 days.

It’s a hefty price to pay – adding to the current battle for skilled staff.

With recruitment becoming more costly and time-consuming, employers are beginning to look to staff retention. Research shows that 86% of employers are now worried about losing their top employees – and with good reason! The same survey shows that 43% of workers will actively search for a new role this year.

With high growth targets across enterprises of all sizes, it is anticipated that employers will begin to turn to new tactics and perks to attract and retain talent.

“The cost to hire new employees is a great incentive for employers to do all they can to retain their talented workforce,” says ELMO Software CEO, Danny Lessem.

He says it will be hard enough for organisations to try and recruit talented people to fill the roles that have originated due to the growth of the business, let alone try to replace departing employees.

Sarah McCann-Bartlett, CEO of the Australian Human Resources Institute, says, “The research confirmed that organisations’ biggest issues over the next 12 months are recruitment, followed closely by skills and leadership development.

“This isn’t surprising, with anticipated higher turnover, increased hiring intentions and skills shortages all coming to the fore at the same time,” she noted.

It’s a perfect storm now of hiring needs, candidate choices, staff shortages and the rising cost of hiring. With all these factors at play, it’s time to focus on your retention plans, hiring processes and employee value proposition.

We’ve got some hints on the best job ads , workforce challenges and agricultural staff attraction in our news section .

Sources: The Australian , IT Brief , HR Daily

Interim FTA With India Met With Mixed Reviews

Tue, 05 Apr 2022 09:40:42 GMT

The interim FTA with India has been welcomed throughout the agricultural industries, but some industry bodies are asking if it’s enough.

The interim FTA agreement announced on 2 April 2022, creates the opportunity for Australian farmers and ag experts to enter the massive Indian market.

Tariffs will be eliminated on more than 85 per cent of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91 per cent (valued at $13.4 billion) over 10 years.

In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at $24.3 billion, and the sixth-largest goods and services export market, valued at $16.9 billion.

Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to $14.8 billion each year.

“This agreement opens a big door into the world’s fastest-growing major economy for Australian farmers, manufacturers, producers and so many more,” he said.

“By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home.”

Minister for Agriculture and Northern Australia David Littleproud agreed, noting that the interim agreement covers nearly 90 percent of our current agriculture exports to India.

The interim FTA is set while Australia and India look to finalise a comprehensive agreement by the end of 2022.

A Quick Overview of the Interim FTA with India

Sheep meat tariffs of 30 per cent will be eliminated

Wool will have the current 2.5 per cent tariffs eliminated

Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years

Tariffs on wine bottles with a minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years

Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years

Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced

Wool & Sheepmeat Industries to Benefit from Interim FTA with India

Representatives from the sheep and wool sector have welcomed the Australia-India Economic Cooperation and Trade Agreement.

Under the interim FTA, India will eliminate tariffs currently imposed on Australian sheepmeat, wool and processed skins and hides.

Australian Meat Industry Council board director and director of Fletcher International Exports, Roger Fletcher, said the focus on premium cuts would certainly continue.

“The agreement fits well with Australia’s diversified portfolio of export markets, whereby our industry carefully matches specific cuts with market segments and cuisines,” Mr Fletcher said.

“This deal is a testament to the quality and desirability of Australian sheepmeat across the world, and we are excited to be able to add to the growing list of satisfied global consumers who demand Australian red meat.”

Roger Fletcher, Australian Meat Industry Council board director and director of Fletcher International Exports

Grains Industry Concerned Over Missed Opportunities

While sheep producers are celebrating, the grains industry is warning of missed opportunities with the interim agreement.

Grain Growers chairman Brett Hosking said overall the agreement was ‘a little frustrating’ for the Australian grains sector.

“The details of the interim deal are a little frustrating given the enormous potential for exports, particularly our chickpeas into this market,” Mr Hosking said.

India is the largest producer, consumer, and importer of pulses in the world. However, Indian production is counter-seasonal to Australian.

“We feel there could be some really solid opportunities for both countries in the years where Indian production is down and they need to bring grain in,” said Mr Hosking.

Grain Producers Australia chairman Barry Large applauded the work from Aussie officials to get the deal done and said he hoped there would be further breakthroughs in talks, especially on the chickpea front.

“Whilst we understand chickpeas present some political sensitivities in these negotiations and may be seen as a stumbling block in seeking enhanced market access for all of Australian agriculture, we remain optimistic that these barriers can be resolved.”

The interim FTA with India comes after the success of the landmark Australia-United Kingdom Free Trade Agreemen t .

Sources: AWE , Prime Minister of Australia , Farm Online , Farm Online

5 Ways to Improve Your Job Ads

Thu, 31 Mar 2022 09:46:15 GMT

We all know that it’s a tough market for those of us in Agribusiness trying to make new hires.

One thing you can do to put your best foot forward is to make sure you nail the advertising. A good promotion strategy isn’t only where you should be placing ads but also the language you’re using and the focus of your promotion.

Job ads are a call-to-action – there to prompt an immediate response. More than that, a job

ad is a fantastic opportunity to represent your brand.

So how can you improve your job ad and increase quality applications? Here are 5 proven ways to help your role stand out.

Understand what candidates want

It’s like a more confusing version of Men are from Mars, Women are from Venus. The drivers and desires of employers and candidates are wildly different.

We speak to dozens (if not hundreds) of people working in agriculture every day, gaining insight into what would convince someone to move into a new organisation.

Understanding what people want helps drive your job ads and speak to these points. Career development, your organisation, and work-life balance are all crucial things to address in advertising a position.

Speak directly to them

In today’s market, you’re convincing people to come work for you, not having them convince you to hire them.

Your job ad needs to speak directly to your prospective employee, communicating why they’d want to work for your company.

Shine the spotlight on the perks and bonuses of your position/company to draw candidates in.

Focus on the people, not the tasks

Do you have an excellent team? Are there 3 or 15 of you? Focus on the people that make your business, not the tasks that make the role.

It’s equally important to focus on the soft skills that your ideal candidate might have. These need to be the right fit for your organisation.

Realistically, you can teach people new tasks and new skills, but you can’t teach them a new personality.

Cast a wide net

Don’t play hard and fast with definitive requirements in your job ad.

Is it actually necessary that your Senior Farm Hand have a tertiary qualification in agriculture? Is 5 really the minimum years of experience you’ll accept?

You need to be realistic about the person you’re looking for. Cast a wide net and then weed out the unsuitable applications.

Salary matters

No matter how you slice it, salary is an overwhelming factor in job application success. Transparency is reflected in applications.

According to SEEK 75% of people are unlikely to apply for a role that doesn’t specify salary. You could be missing out on the best candidates.

As an employer, you need to consider why you don’t want to publish the salary and whether that decision will hurt your objective.

Thanks to the cost of living and staff shortages increasing, salary ranges of 2-3 years ago won’t cut the mustard anymore.

With the changing attitudes across employment and current candidate expectations, job ads need to effectively speak to candidates’ wants and needs. Someone applying for a role will already know the gist of the position; you need to communicate why they’d want to leave their current role and come work for you.

We’ve spent decades crafting job advertisements, sifting through applicants, and guiding agribusiness enterprises to the best staff. If you’re struggling to find the right people for your agribusiness, contact us to see how we can help .

Photo by regional photographer Al Mabin

Protein Boost: CSIRO Plan Predicts Multi-Billion Dollar Growth

Thu, 31 Mar 2022 09:43:13 GMT

Australian agriculture could grow by $31 billion per year by producing a more diverse range of high-quality protein sources.

That’s according to a new report released by the CSIRO which investigated the potential for Australia to capitalise on the growing global demand for protein products. Protein: A roadmap for unlocking technology-led growth opportunities for Australia lays out a strategy to target the development of new protein products in line with consumer trends such as the rising popularity of plant-based diets.

As well as the development of new plant-based products, the roadmap suggests the production of protein powders and nutraceuticals, better-tasting legumes, a more sustainable white-flesh fish industry and emerging sectors such as cultivated meat and edible insects were at the heart of the industry’s growth potential.

“As protein demand grows and new consumer trends emerge, solutions from science can help create new markets and complement our existing, globally competitive traditional markets. This will help shift Australia’s reputation from being the world’s food bowl of commodities to becoming a global delicatessen of unique higher value exports,” said Dr Larry Marshall, chief executive of the CSIRO.

“CSIRO’s Future Protein Mission recognises the scale of this challenge and brings together a wide network of partners with the latest innovative technology to seize this opportunity for a resilient and sustainable food system,” he added.

In addition to changes in consumer demands, population growth presents a significant opportunity for the whole domestic agriculture value chain. The global population is due to grow by two billion people by 2050 and with much of this growth in Asia, Australia is in the driver’s seat of potential suppliers.

“Consumer demand is increasing for all protein sources. Australia has a real opportunity to have a thriving local food manufacturing sector, while becoming a leading exporter in value added traditional, plant, and novel protein products,” said Dr Mirjana Prica, managing director of the Food and Agribusiness Growth Centre.

“Building domestic capacity and infrastructure to not only tap but to build scale, for the plethora of protein opportunities is critical if we are to switch from importing ingredients to producing our own domestically.”

Continued development in technology, innovation and development will be required to ensure that Australia can meet demand in terms of both volume and product format.

“We can supercharge growth in our traditional protein industries by harnessing technologies like digital traceability and integrity systems that enhance the premium status of Australian red meat, and grow new complementary protein markets through techniques like precision fermentation to generate a suite of new Australian products,” said Dr Marshall.

Focus on Edible Insects: “They’re Healthy”

An additional stream of research by the CSIRO is proving the benefits of the emerging edible insect scene, which is proving to have significant nutritional benefits as well as being an environmentally sustainable crop.

“[Insects] have a high protein content and they have good fat. Crickets, for example, have more Omega-3 than salmon, and they have minerals like iron. Some insects have folic acid and different types of vitamins. Green tree ants are high in vitamin C, for example, “ said Dr Rocio Ponce-Reyes, a research scientist at the CSIRO.

Dr Ponce-Reyes said that the industry needed to reflect on the use of insects as part of the diets of Indigenous Australians, who have identified at least 60 different native edible species.

“If you combine this great research capacity with the knowledge of Indigenous people and the diversity of species, this can lead to new opportunities to help the industry grow.”

“It’s also very important to protect the Indigenous IP [intellectual property] when it comes to knowledge about edible insects in Australia. It would make the industry stronger.”

Sources: Food Processing , SBS

Image: Photo by LikeMeat on Unsplash

Agriculture Outcomes from the 2022-23 Budget

Wed, 30 Mar 2022 09:51:13 GMT

Last night’s budget came out strong with agriculture outcomes looking forward to our $100 billion industry goal. It’s the Coalition’s final budget before the election, announcing $600 million for producers and regional communities.

We’ve put together the quick details, so you don’t have to go digging.

Trade & Export

$267.1m in a whole-of-government, Simplified Trade System to streamline trade processes
$127.4m to the Digital Services to Take Farmers to Markets initiative for delivery of government agricultural export systems & services to agricultural exporters, farmers & producers
$11.7m to expand Austrade’s Trade Information Service to additional agricultural industries & importers
$7.7m to undertake essential work to consider processes to facilitate agricultural exports and underpin biosecurity

Pests & Disease

$61.6m to boost Northern Australia’s frontline biosecurity
$10m to support state & territory agriculture departments to undertake necessary surveillance & control activities related to Japanese encephalitis virus
$20m grant program, delivered through interested states and territories, to improve on-farm biosecurity & enhance pest & disease traceability

Stewardship

$27.3m to help deliver a voluntary biodiversity market
Improved tax treatment of income from Australian Carbon Credit Units (ACCUs) & biodiversity certificates – expected to reduce taxes paid by eligible primary producers by $100m over 4 years

Innovation

$23.4m over 4 years to extend the recently developed patent box regime

Drought Resilience

Allocating an additional $84.5m (& $10.0m over 2 years from 2026-27) to consolidate the 4-year Drought Resilience Funding Plan

Shows & Field Days

$15.4 million to deliver a second round of the Agricultural Show Development Grants Program
$12m investment into sponsorship of large agriculture trade events

Forestry

$90.6m over 5 years from 2021 22 to support the sustainability of the forestry industry & to respond to emerging challenges
$86.2m over 5 years will support states & territories in establishing new plantations
$4.4m over 2 years to strengthen Australia’s illegal logging traceability & timber identification systems

For more information on the 2022-23 Budget, visit: www.budget.gov.au

Bless Your Cotton: Australia Set for a Bumper National Crop

Thu, 24 Mar 2022 09:54:39 GMT

Good soil moisture levels amid a wet La-Nina dominated summer have created confidence among farmers with one of Australia’s biggest dryland cotton crops now in the ground.

Among the summer cropping options, dryland cotton offered one of the best returns with global markets currently offering the most generous prices in ten years.

Favourable – albeit unseasonal – conditions have pushed the production of cotton further south than usual with growers planting in regions including the Lachlan Valley. While Hillston’s average annual rainfall is around 370mm per year, it received almost twice that in 2021, creating a strong base for summer cropping options.

“This dryland plant has been boosted by some good falls over late summer and again in the last week so it looks good, and the cool finish has been ideal to finish those late bolls,” said Jorian Millyard, the NSW extension and development manager for Cotton Seed Distributors.

“We had two planting windows this summer, there was the early planted dryland cotton in October and then there was an opportunity to double crop out of a winter crop in December,” he added.

According to ABARES, Australia will produce 5.2 million bales of cotton, an almost tenfold increase on the drought-affected 2019-20 crop which yielded just 590,000 bales.

The popularity of cotton cropping along with favourable market conditions are set to boost the value of production by 157 per cent to $4.3 billion in the next financial year. The value of Australian exported cotton is set to rise by an eye-watering 400 per cent to $3.4 billion in 2021-2022 and $4.1 billion in the following period.

While international production of cotton is also up – climbing by 8 per cent to 27 million tonnes – supply chain disruptions are stifling exports from the United States, the world’s largest exporter of cotton.

Another price influencing factor is the prolonged drought in the States, with many traditional cotton-growing regions experiencing dryer than usual conditions in the lead up to 2021 planting. North-West Texas – which grows around 40% of America’s national yield – has experienced significantly low rainfall this year and with crops due to be sown between now and June, analysts are uncertain about the 2022 yield potential.

Increased demand on global stocks is also being driven by China, with a rise in cotton-based products being led by consumers spending more time at home among COVID lockdowns and travel restrictions.

Taking advantage of the swing in the market, the Australian Government has awarded a $1.5 million grant to develop trade relationships with south-east Asian countries.

The funding, awarded to the Australian Cotton Shippers Association and Cotton Australia, will be used to host delegates from growth markets including Vietnam, Indonesia, Turkey, India, Pakistan and Bangladesh.

Cotton Australia CEO Adam Kay said that the grant would allow the industry to capitalise on strong prices and strong predicted yields.

“We’re forecasting a large crop of 4.8 million bales in 2022, compared to an average of 3 million bales produced every year during the period from 2014-2019,” Mr Kay said. “This grant will help increase demand for the sustainable high-quality cotton we produce, avoid the need to stockpile and establish a clear roadmap for our future marketing efforts.”

Sources: Farm Online , Farm Online , Free Malaysia Today , Daily Cargo News

Russian-Ukrainian Conflict Adds More Complexity to Global Ag Markets

Thu, 17 Mar 2022 09:57:38 GMT

The Russian-Ukrainian conflict continues to influence the already complex dynamics of global agricultural markets, with the cessation of exports out of the Black Sea making several African and Asian countries increasingly anxious about food security.

According to a report from the United Nation’s World Food Program (WFP), it is estimated that Russia and Ukraine have 13.5 million tonnes of wheat and 16 million tonnes of maize in storage, effectively inaccessible to the world given the current closure of the Black Sea ports.

Egypt, formerly the biggest importer of Russian wheat – has put a stop to exports of homegrown grain, while the cessation of sunflower oil from Ukrainian ports has caused a wave of anxiety among Turkish consumers as they scramble to buy cooking oil.

Almost 50 countries, including some of the world’s poorest nations, rely on Ukraine and Russia for food exports, causing governments to consider alternative suppliers as supplementary measures. While this presents a potential opportunity for the Australian industry, the bottleneck of export ships means that we’re unlikely to see any short term benefit from increased demand.

The global situation may become more complex depending on the seasonal conditions affecting growing regions this year. La Nina conditions are creating uncertainty with a recent report showing that North America and some European countries have experienced yield gains since global temperatures have risen, while hotter and wetter conditions in West Africa have caused sorghum and millet performance to drop.

“Climate change is increasing weather and yield variability and if severe weather events such as droughts, heatwaves, or floods will hit this season there will be compound effects, destabilising the food system further,” said Jonas Jagermeyr, a climate scientist and crop modeller from the NASA Goddard Institute for Space Sciences.

“China already indicated that their wheat outlooks are very poor and other world regions don’t look great either,” he added.

Disruptions to seeding in Ukraine and Russia this year could exacerbate the situation to a more serious level, warns Maximo Torero, chief economist for the Food and Agriculture Organization.

“My greatest fear is that the conflict continues – then we will have a situation of significant levels of food price rises, in poor countries that were already in an extremely weak financial situation owing to Covid-19.”

Mr Torero estimates that the price of wheat will rise by a further 8.5% if the war continues.

While the upward pressure on global wheat prices may provide the Australian market with optimism – especially given the bumper 2021 harvest – the situation continues to drive the price of inputs to record levels.

As well as being the world’s biggest exporter of wheat, Russia is also a leading exporter of fertiliser and potash, causing input costs to continue to rise along with diesel. With price hikes on glyphosate caused by supply chain issues in China, Australian growers are becoming increasingly anxious about the cost of production for the upcoming season.

“It’s everything from chemicals to fuel to fertiliser are just skyrocketing,” said James Coggan, a grain grower from southern Queensland.

“Fertiliser has gone up by 75 to 85 per cent and fuel’s almost gone up 50 per cent, so that’s really only in a 12-month period.”

While last season was one of the best on record for Mr Coggan, he is now concerned that his 2021 grain profits will be largely used on input costs in 2022.

“..everything from chemicals to fuel to fertiliser are just skyrocketing.”

Sources: ABC , Scientific American , The Guardian

Bumper Harvest and Strong Demand Promotes Optimism in Australian Grain Sector

Fri, 11 Mar 2022 10:00:25 GMT

Despite early pressures , the 2021 winter grain harvest has broken all Australian records with a national yield of 61.9 million tonnes. This is the first time yield in Australia has exceeded 60 million tonnes. Better than expected yields in parts of Western Australia and New South Wales helped to boost annual production from an initial forecast of 58.4 million tonnes.

Australia’s top three yielding crops all broke their respective production records with wheat yielding 36.3 million tonnes, barley at 13.7 million tonnes and canola contributing 6.4 million tonnes.

Summer rains downgraded the quality of some crops, but experts are also hoping that a boost in soil moisture will have a positive impact on summer crops.

“It’s also been an extraordinary season for summer crops in Queensland and northern New South Wales,” said Jarred Greenville, executive director of ABARES.

“While there were flooding conditions in November that damaged early plantings of summer crops, overall the conditions have been very favourable, “ he added.

Currently, Australia’s summer crop is also expected to break national records with an estimated yield of 5.3 million tonnes, a 64% increase from the previous year.

“We also estimate that the area sown for summer crops to have risen by 48pc to 1.5 million hectares, which is 35pc above the 10-year average to 2020-21,” Dr Greenville said. Summer rains have also boosted the outlook for this year’s winter crop, with industry analysts predicting an above-average annual crop again in 2022.

Global Demand Hampered by Export Bottleneck

Strong global demand is likely to push the price of grain up but without an increase in export capacity, it is unlikely Australia will be able to capitalise on the opportunity.

The bumper winter crop has caused a sluggish supply chain with the movement of grain from inland to ports further hampered by recent flooding.

The disruption of trade from the Black Sea – which accounts for 34% of global wheat exports – is putting upward pressure on the price of grain with experts predicting it will exceed $400 a tonne in the near future.

But without increased export capacity, Australia will struggle to get any additional grain on the water. Exports slots are already sold out months in advance making it difficult for Australian exporters to fulfil more urgent orders.

Developing countries in the Middle East and Africa are likely to be affected by trade restrictions caused by the Ukraine-Russian crisis.

“Places like Egypt and Algeria rely on bread as primary foodstuffs,” said Andrew Whitelaw, a market analyst with Thomas Elder Markets.

“It’s going to be tough for them because food price is directly correlated with the price of wheat.”

Bulk handler CBH has made an additional 550,000 tonnes of export capacity available in Western Australia, but no progress has yet been made among East coast ports.

Export constraints will likely frustrate the industry given India’s recent announcement to remove an 11% trade tariff from lentils. India currently imports $1 billion worth of lentils annually and is home to the world’s second-largest population.

Sources: The Guardian , ABC News , The Land , AgTrader

The New No-Till? The Rise of Regenerative Agriculture

Thu, 03 Mar 2022 10:13:13 GMT

More Australian farmers are moving towards regenerative agriculture, citing a host of benefits to overall profitability and productivity, marketing potential and even the ability to monetise soil carbon gains.

While the term refers to a range of individual practises, regenerative agriculture can be defined as an approach to farming that focuses on restoring soil function in order to maximise carbon sequestration and soil water holding capacity.

“[It’s a] form of agriculture in which farmers go beyond seeking to be sustainable to regenerate agriculture ecosystems that have been adversely affected by agriculture in countries like Australia over long periods of time,” said Nick Gill, Head of the School of Geography and Sustainable Communities at the University of Wollongong.

Speaking about the issues caused by conventional farming systems, Dr Gill stressed that the development of regenerative agriculture has its roots in restoring soil function lost over the last 200 years.

“Regenerative agriculture practitioners seek to repair that through agricultural practices,” Dr Gill said.

Regenerative farming can include a number of existing methods such as the addition of biochar and compost to soils, holistic grazing and even aquaculture, so long as the emphasis is on the restoration of soil organic matter and soil biology.

Regenerative Agriculture Hailed as a Climate Change Saviour

Regenerative agriculture is seen by many as a solution to climate change, through its ability to improve the soils’ capacity to store carbon.

“One of the best-kept secrets in the world today is that the solution to global warming and the climate crisis (as well as poverty and deteriorating public health) lies right under our feet, and at the end of our knives and forks,” said Ronnie Cummins from Regeneration International – a not-for-profit organisation promoting the regen ag on a global scale.

Australian farmers have recently started to sell carbon credits generated by improving carbon levels in their soils, including the landmark sale of a carbon portfolio worth $500,000 to tech giant Microsoft.

Wilmot Cattle Co in New South Wales used regenerative farming methods including rotational grazing and high-density stocking rates to improve their soil carbon from 2.5% to 4.5% in just three years.

While many growers consider the role of carbon sequestration as a profit generator, industry experts are warning that Australia might not be the place to chase soil carbon gains specifically for the carbon market.

Richard Eckard, Professor of Sustainable Agriculture at the University of Melbourne, said that declining rainfall in Australia will reduce the potential to build soil carbon.

“Backing something like soil carbon, which is really just dependent on rainfall, is really tricky in a country that can’t depend on its own rainfall,” he said.

According to Professor Eckard, improving soil carbon could be more valuable in terms of its ability to drive on-farm productivity, rather than its value as a credit. Data from a study in Western Victoria showed that an increase in soil carbon drove on-farm profitability by $150 per hectare, compared with a return of $15 to $20 in carbon credits.

“And so, I ask the question if the inherent productivity benefit is $150 per hectare per year of high carbon, why are we chasing $15 to $20 worth of soil carbon credits that lock you into long-term commitments rather than just banking the productivity and saying my farm is more sustainable as a result?”

Professor Eckard also reminded farmers that selling a carbon credit could be a marketing disadvantage as more consumers are choosing to buy environmentally sustainable foods.

“Once [a credit] goes to another entity like the coal industry who use it as their offset, what happens to that farm when the supply chain says we will only buy your product if it’s carbon neutral?”

Sources: Regeneration International , The Lucas Group , ABC

AgriFood Data Exchange Shaking Up Australian Supply Chains

Thu, 24 Feb 2022 10:15:44 GMT

A radical new digital agrifood data platform will provide Australian agriculture with a state-of-the-art information exchange across the supply chain.

Conceptualised by KPMG and Integrity Systems Company – a commercial subsidiary of Meat and Livestock Australia – the Australian AgriFood Data Exchange will allow users to securely and selectively share data with supply chain partners.

Receiving significant backing from private and public partners, and an initial $4 million in funding, the exchange aims to improve market access for Australian agriculture and food producers by reducing regulatory compliance and streamlining traceability processes.

The platform has also been expanded to allow users to identify and anticipate biosecurity risks and record performance data for benchmarking.

Minister for Agriculture, David Littleproud, said that the data exchange will help to improve compliance and traceability processes and improve market access for food producers by providing a point of difference to competing exporters.

“Market access for our products depends on trusted supply chains and trusted compliance and quality assurance data accompanying the products,” he said.

“This project is another example of how the Australian Government is backing Australia’s agriculture, forestry and fisheries industries to access and grow export earnings as the industry strives to meet and exceed its $100 billion farmgate value target by 2030.”

Mirjana Price, the Managing Director of the Food and Agriculture Growth Centre – one of the supporters of the initiative – said that the exchange was needed to help Australian producers remain competitive in a global trading environment.

“An industry-wide data exchange is the critical infrastructure that will help Australia’s food and beverage industry to enhance the quality and assurance of products and provide opportunities for value differentiation against other leading agrifood exporting nations,” said Ms Price.

To date, the system has been tested to ascertain its capability to deliver benchmarking services to the grains industry, biosecurity for viticulture, compliance and certification for sheepmeat and wool, and traceability for the rock lobster sector.

The outcome of these experiments will be showcased at a demonstration day in Melbourne on the 29th of March. Those interested in attending can register here .

Farmers Split over Agrifood Data Security

Having long experienced data mining by agricultural technology companies, many farmers remain guarded about their commercial information.

Western Australian grower and agronomist Doug Smith has long been concerned about farm data being shared with third parties, without the consent or acknowledgement of the grower.

“You know [data is] tremendously valuable, and they’re exceptionally good at extracting maximum value out of everything they do,” he said.

“You’d be pretty naive to think that’s not being on-sold to others.”

While users of the exchange will have to comply with the National Farmers’ Federation’s Code of Conduct, Mr Smith is still unconvinced.

“I’ve got a bit of a love-hate relationship with codes of conduct. They’re sometimes not worth the paper they’re written on,” he said.

“It only keeps honest people honest. I’d like to see things a bit more enshrined in legislation.”

Victorian grazier Tim Leeming said that farmers should be more open to sharing data to boost consumer confidence and supply chain traceability.

“Let’s be transparent on farm. Most progressive producers that want to maintain their good price they’re receiving at the moment would jump at it,” he said.

Sources: KPMG , ABC , Integrity Systems

Women Critical to Agricultural Workforce

Thu, 17 Feb 2022 10:18:05 GMT

Agriculture’s typically blokey profile is stifling the flow of skilled labour to the sector, according to a report released by global consultancy Deloitte.

The report outlined a number of strategies to improve the industry’s ability to attract workers, calling for a more diverse and inclusive culture.

“This branding of the industry does not reflect or promote the innovative, diverse, forward-thinking and positive lifestyle factors that a career in farming offers,” the report stated.

“In fact, it undervalues agriculture’s contribution to the Australian economy and dampens the attractiveness and enticement of skilled workers into the sector.”

With men accounting for 70% of the agricultural workforce the industry does have a way to go before reaching a more balanced gender profile. But with an already stretched talent pool and an ageing workforce, attracting women to the industry is a critical strategy to ensure agriculture remains productive and competitive.

Dr Lucie Newsome, a lecturer at the University of New England, argues that women bring skills into agricultural businesses that complement the strengths of men.

“Despite these constraints, female farmers have been found to be key decision-makers, financial controllers and to use technology to a greater degree than men,” she said.

Dr Newsome, who grew up on a grazing farm near Glenn Innes, said that in some circumstances public policy was lagging behind the realities of agriculture’s workforce.

“Until recently the NSW Department of Primary Industries ran two drought resilience programs. One for “farming men” called Tune up for Fellas (TUFF) and one for “rural women” called Shaping Our Future Together (SOFT).”

“Other government programs see farm women as an economic resource to be harnessed to strengthen the agriculture industry and rural communities.”

Ducks on the Pond are Here to Stay

For shearing contractors Niall McFarlane, the recent hiring of two female shearers has been a welcome addition to his team.

Erin Twigg and Jasmine Morris, both in their early twenties, have recently started shearing with Mr McFarlane across northern Victoria.

“Up here it’s very tough shearing, and most blokes don’t want to do it. It’s very hard to get shearers here.”

“These two girls have such a will to work and they want to do it, and they’re passionate – if you want to be good at something you need to be passionate,” he added.

“It’s an absolute pleasure to have them in the team. They don’t cause any trouble. They work hard. And you know I couldn’t be happier.”

21-year-old Erin Twigg has put her professional career on hold while she explores shearing. Having graduated with a health science degree, she had originally considered shearing to be a summer job before finding a graduate role.

After just a few short months, Ms Twigg is shearing close to 100 sheep a day at a rate of $4 per head.

“I probably would have only been on maybe 20-something dollars an hour if I’d stuck with a career I was looking to do after uni, so it’s way more enticing – so I think I might stick it out for a bit longer,” she said.

“But I haven’t left the shed since. You get to sit down at the end of the day and have a laugh, a beer and just enjoy it.”

Sources: The Guardian , Deloitte , ABC

Australian Agricultural Exports to Indonesia Boosted

Thu, 10 Feb 2022 10:20:04 GMT

Representatives from the governments of Australia and Indonesia have agreed to a Memorandum of Understanding on Agricultural Cooperation, with the aim of increasing the volume and value of imports between the two countries.

The deal was signed by Agriculture Minister David Littleproud on the back of a three-day tour of Indonesia where he help ministerial talks with the aim of promoting agricultural trade.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will implement tariff rate quotes (TRQs) similar to those featured in the recent Australia-UK free trade agreement .

The agreement will allow live cattle, some fruit and vegetables, and feed grains to be imported with a reduced tariff. Once the annual quota is reached, the tariff returns to a higher rate. Imports of carrots, for example, up to 5000 tonnes per year will attract a 10% tariff, or 12.5% thereafter. After five years, the quote volume will increase to 7,500 tonnes per annum, with a decrease to the in-quota and out-quota tariffs to 5% and 10% respectively.

Minister Littleproud said that the agricultural cooperation deal would strengthen trade ties between the two countries that have bloomed since the 2020 trade deal.

“Indonesia is Australia’s fourth largest agriculture, fisheries and forestry export market, valued at $2.9 billion in the 2020/21 year,” he said.

“Indonesia is Australia’s largest market for wheat, largest market for live cattle, and fifth-largest market for beef.”

“Two-way trade for the agriculture, fisheries and forestry sectors was $4.07 billion, which shows that Indonesia is not just a respected partner but a valued one as well.”

Deal Hoped to Ease Indonesia’s Food Price Problem

Economists hope that the trade deal might ease the crippling food prices facing Indonesian consumers. The government’s focus on self-sufficiency and agricultural nationalism has inadvertently increased food prices and reduced supply creating economic uncertainty and dissuading private investment in the industry.

According to data from the Lowy Institute, the country’s poorest consumers spend around 64% of their income on food. The price of beef is double the World Bank’s reference point and staples including rice are often double the price of many other countries. Despite Indonesia’s focus on domestically grown food, food imports have increased fivefold over the last 20 years.

While the agreement is seen as a step forward for both parties, there are still some hurdles to be addressed. Australia lost significant face with Indonesia in 2011 after the live export ban – a backwards step that wasn’t recouped until 2014. The Australian export sector needs to rebuild trust with its trading partner – an exercise that requires time and reliability.

Australian exporters have long suffered the notorious red tape synonymous with doing business in Indonesia. While Indonesian feedlots pivot to deal with the rising cost of stock feed, they are yet to be able to take advantage of the tariff-free quota increase on Australian feed grains that was implemented at the beginning of 2022. The amendment increased the annual quota-free volume of feed grains to 551,250 tonnes per year, but according to Beef Central, no significant volumes have been moved.

Industry sources said that the Indonesian government has not yet included feed grain types on the list of importable products.

Sources: The Interpreter , Beef Central , Mirage News

Image: Photo by Koes nadi on Unsplash

Attracting Agricultural Staff in 2022

Wed, 09 Feb 2022 10:22:47 GMT

Agribusiness owners and managers in Australia can all agree that there is a critical shortage of candidates for the many open roles in our vital industry.

Media coverage focuses on the lack of seasonal workers. However, permanent positions are also facing major staff shortages.

The sirens lure of the mining industry and the ongoing effects of COVID-19 play a large part in these shortages.

How can agribusinesses best combat this?

We’ve previously covered some aspects of staff attraction focusing on changing candidate expectations. This month we’re back with our tips for agricultural businesses on how to attract – and retain – quality staff members.

Workplace Culture

Your reputation and business are only as good as word on the street. Most candidates will research your organisation before applying. If you’ve got blemishes in the past, disgruntled ex-employees, or even just a reputation as an “okay” employer it’s time to work on reversing that image.

Celebrating the success of your people is one of the easiest ways to both morale and reputation. This can be from something as small as an internal congratulations or celebratory lunch to publicly announcing your team’s W’s.

Highlights

Most applicants are going to understand the key responsibilities of a job. Your advertisement needs to highlight the parts of a role that go beyond expectation.

Autonomy can be a standout highlight and help attract the best person for the role.

Incentives

A quality employee can do a similar job in any organisation – and almost everyone is hiring. Agricultural businesses need to look at what incentives are offered to current and prospective employees.

Flexibility, family-friendly hours, or working from home opportunities are often something candidates are looking for. Additionally, work “perks” like phones, vehicles and accommodation can be used to help sweeten the deal. Consider upgrading work vehicles or tired accommodation to help attract the best person for your agribusiness.

Salary

Ultimately, the best culture, incentives and highlights won’t matter if the salary isn’t at least competitive.

Salary benchmarking is a great place to start to make sure you’re paying rates comparable with other businesses in the industry. Also, implementing a regular review structure can help your agricultural business find and secure the right person.

The Lucas Group is Australia’s premier agricultural industry recruitment and human resource consultancy. We take an individual approach to each recruitment or human resource project we tackle.

We’re here to help your business – if it involves your people, you need our people.

Sheep Market Maintains Vigour While Cattle Sales Start to Ease

Thu, 03 Feb 2022 10:25:39 GMT

Saleyard prices continue to return record margins for Australian sheep and lamb growers, despite COVID related supply chain issues.

Prices have continued to track above the 10-year average with restocker lamb performing particularly well.

“The current National Restocker Lamb Indicator (NRLI) is priced 49 per cent or 292c/kg carcase weight (cwt) higher than the 10-year average,” said Ripley Anderson, market information analyst for Meat and Livestock Australia.

Mr Anderson said that the strong demand and ideal seasonal conditions would outweigh issues caused by disruptions to supply chains.

“I know people are worried about the market dropping 20c or $10 per head because there aren’t as many processors operating at the yards, but the market is in a good position.”

“Obviously that supply and demand situation will play out and that increase in supply may place downward pressure on the market, but prices comparatively to the long-term will remain favourable,” he added.

Live Exporters Hope to Decrease Moratorium

The Australian Livestock Exporters Council is looking to increase shipments of live sheep to the Middle East by testing new technologies to safeguard sheep from heat stress.

A moratorium currently restricts the shipment of livestock to the Middle East between June and September each year, but improved animal welfare standards have seen the mortality rate drop to 0.2 per cent since the Awassi Express disaster in 2017.

Mark Harvey-Sutton, chief executive officer of the Australian Livestock Exporters Council said that the industry needs the opportunity to re-examine live exports during the northern hemisphere in summer to retain a competitive advantage.

“We must take every opportunity to maximise shipping opportunities when it is safe to do so from an animal welfare perspective,” he said.

“However, we would be doing both our trading partners and Australian sheep producers a disservice if we do not ensure prohibition timeframes are proportionate to risk, based on evidence and science.”

Restocking Price Pressure Begins to Show

The Eastern Young Cattle Indicator (EYCI) has shown strong signs of softening market conditions amid caution from buyers looking to restock.

Within a week, the indicator dropped from almost 1200 cents a kilogram carcase weight level to 1112 cents – a decline of 7 per cent.

Strong supply and cautious buyers are putting pressure on prices, with analysts predicting the price will drop to 998 cents per kilogram by the end of June. The downward trajectory could continue throughout the year amid a predicted growth in the national cattle herd by 1.1 million to 27.2 million.

Meat and Livestock Australia has also forecast an increase in the slaughter figure by 11 per cent, driven by increased supply.

The local beef industry will perhaps be reassured by the global market as the price for Australian beef went up by US10 cents per pound in just two weeks.

The price currently sits at a high of US308 cents per pound, with industry analysts predicting it will continue to grow if the American cattle stocks decline.

The trend is driven by climate factors at both ends of the world – favourable seasonal conditions in Australia fill the gaps caused by drought conditions in the States.

Sources: FarmOnline , FarmOnline , FarmOnline , FarmOnline

Image: Photo by Jo-Anne McArthur on Unsplash

Almost Four Million Hectares of Hancock Property Sold

Mon, 31 Jan 2022 10:28:16 GMT

Hancock Agriculture and S. Kidman and Co have entered contracts for the sale of Phoenix Farm in the Northern Territory and South Australia’s Innamincka Station and Macumba Station to Crown Point Pastoral. This announcement comes after the sale of three Western Australian stations in 2021.

As reported by the ABC , Innamincka (1,360,000 ha) and Macumba stations (1,106,300 ha) were not intended for sale; significant external interest drove Hancock Agriculture to include them in the divestment.

“Completion of the sales above will occur once approval from the relevant pastoral land regulator in South Australia is received,” the statement read.

“The sale of these properties is consistent with Hancock Agriculture’s strategy of divesting properties where it had already invested to improve them by focussing on specific areas, including improved animal welfare and employee safety, the use of technology and innovation and genetic improvements across the herds.”

A grand total of 3,787,519 hectares will be set to change hands – an area just smaller than the country of Monaco.

Hancock Property Divestment Already Underway

Large swathes of Hancock Agriculture and S. Kidman and Co’s land has already been sold in deals inked last year.

Three Western Australian stations were also sold in 2021, with Ruby Plains and Sturt Creek stations (796,134 ha) bought by Crown Point Pastoral and Nerrima Station (203,142 ha) sold to the Emmanuel family.

2021 also saw Aroona Station in the NT sold to the DiGiorgio famil y and Willeroo Station (171,000 ha) go to NT-based company Brett Cattle.

The latest deal leaves just Riveren and Inverway Stations in the Victoria River District of the Northern Territory available for purchase.

Global Interest but Ultimately Australian Investments

Elders Executive General Manager Real Estate, Tom Russo, confirmed to Farm Online that the sale process had drawn interest from a global field of investors. However, he noted that ultimately all the successful buyers are Australian agribusiness operators.

“When considering the structuring of the sale campaign, a key priority of Hancock Agriculture was to ensure that all potential buyers were given the opportunity to visit the properties,” he said.

“The high quality of these properties after investment by Hancock Agriculture and their management under its ownership was evident in the level of interest received and the feedback from multiple parties that visited the properties, praising the status of the properties and the condition of the cattle.”

“It really is exciting to see such a strong level of confidence and willingness to invest in the future of northern Australian beef production from such successful and well credentialled Australian family-owned businesses.”

The 2019-20 report from the Foreign Investment Review Board shows that most international investment in Australia was in residential real estate.

In the agriculture, forestry, and fishing sector, there were 174 approvals worth $8.3 billion, compared to residential real estate where there were 7,056 approvals worth $17.1 billion.

Sources: Farm Online , ABC Rural , S. Kidman & Co. , FIRB

Photo by Michael SKOPAL on Unsplash

Self-Driving Trucks Could Solve Food Shortages

Thu, 27 Jan 2022 05:10:28 GMT

Autonomous trucks could solve current food shortages and help to reduce the spread of COVID-19 across Australia according to Andrew R Timming, deputy dean of research and innovation at RMIT’s school of innovation.

Commenting on the continued food supply shortages caused by the response to the Omicron variant, Mr Timming said that the use of automation was a key way to relieve pressure on an industry suffering from a lack of available labour.

“Already we have the technology to deploy self-driving trucks that can transport goods across the country with zero COVID-19 risk,” he said.

The use of driverless trucks would be welcome news across the supply chain as a significant number of employees are affected by COVID. In South Australia, an entire abattoir was shut down after 140 workers tested positive to COVID-19, while as many as 40% of employees in the dairy industry were either off sick or in quarantine.

Fredrico Collarte – CEO of LiDAR tech company Baraja, said that autonomous vehicles could help to ease pressures on sectors that rely significantly on the prompt movement of fresh produce.

“The key benefit is you can get fresh produce to the market sooner, so the shelf-life can be longer.”

Driverless Truck Technology on the Horizon

In America, the highly competitive race to commercialise driverless trucks could mean that long-distance routes will be operated autonomously in the not too distant future.

Texas – the US epicentre of remote vehicle development – passed laws in 2018 to allow autonomous vehicles on the road. With vast distances to travel and an increasingly smaller pool of truck drivers, the industry has realised that going driver-free is the way forward.

According to Embark Technology, driverless fleets would drop the cost per mile from $1.76 to $0.96, save 10% in fuel costs, increase annual per truck revenue by 300% and reduce delivery times by 40%.

“Because Embark-powered trucks don’t need to rest, we will empower our carrier partners to move foods faster than human-driven trucking at a fraction of the costs,” said Embark CEO Alex Rodrigez.

“We know the technology we’re building together can maximise fuel efficiency, help drive adoption of zero-emission trucks on short-haul routes, and reduce food waste,” he added.

Australian Mining Industry Already on Board

Autonomous trucks aren’t new to Australia, with the domestic mining industry the leading global user of driverless technology. Currently, with 575 trucks – the largest fleet in the world – the sector is growing with BHP expecting to add another 375 trucks in mines in Western Australia and Queensland. Rio Tinto will add 100 autonomous trucks across their Pilbara operations this year.

Six Australian mines currently have an entirely autonomous fleet, including the Christmas Creek iron ore mine with 74 trucks.

Mining companies have reported a raft of benefits from driverless vehicles including increased operating hours. FMG – the company that owns Christmas Creek – reported a 30% increase in productivity while Rio Tinto saw a 20% jump in productivity gains and a 20% savings in operating costs.

Sources: Food & Beverage , Mining Technology , News.com.au , Embark , The Guardian , ABC News

Image: “Autonomous truck cab on display” by OregonDOT

Urea and Glyphosate Shortages Continue to Threaten Seasonal Profitability

Thu, 20 Jan 2022 05:17:57 GMT

Supply chain issues are presenting another challenge for Australian farmers as urea and glyphosate shortages continue.

The shortages have largely been caused by issues with Chinese manufacturing plants affected by a myriad of issues including flooding and COVID-19 outbreaks which have seen entire factories shut down and a significant shortage of workers.

Manufacturing delays and congestion in Chinese ports has further restricted the supply of glyphosate, while strong demand from Australian buyers reduced local stockpiles, leading to a significant increase in price.

“The price of our main knock-out herbicide Roundup has more than doubled to over $10 a litre and that was over just a six-week period,” said Stuart Barbary, cropping and livestock farmer from the Midlands in Tasmania.

“At these prices, we’re looking at $500 to $600 more a hectare so you’ve either got to limit your inputs and try to hold the crop that way or run your program as normal and cop the extra.”

“Yes, commodity prices are good, but if they turn around suddenly we’ll be operating on extremely thin margins,” he added.

Issues with the availability of urea and AdBlue have largely been driven by China – the world’s largest manufacturer of urea – which has restricted the amount of stock sold overseas in a bid to keep domestic food prices under control. Add to that the impact of panic buying and the rise in online shopping, and the increased pressure on the trucking industry has reduced stocks for the Australian industry.

Australia to Establish Plant in Wake of Urea and Glyphosate Shortages

In an effort to become less reliant on international supply, the federal government has signed an agreement to support Incitec Pivot to establish a urea plant the Gibson Island Fertiliser Plant in Brisbane, which was due to close in 2022.

“The ramping up of production by Incitec Pivot will be done without impacting agricultural fertiliser supply to local farmers or disrupting local distribution chains for AdBlue,” said Energy minister Angus Taylor.

“This agreement is another important part of the Government’s broader strategy to build supply chain resilience, which includes addressing shipping issues, ensuring local supplies of critical products and bolstering local manufacturing capability.”

While Prime Minister Scott Morrison said that the deal represented a short term solution to the AdBlue shortage, National Farmers Federation CEO Tony Mahar welcomed the announcement.

“This is a welcome relief to potential supply disruptions to AdBlue that is used in some farm machinery and on-road vehicles used by farmers.”

“Along with the stock already on hand, new shipments secured in the last month, and domestic capabilities coming online, farmers and the agricultural sector can move back to a business as usual approach without the fear of supply chain disruptions.”

Data released from Thomas Elder Markets shows that urea prices remained around $400 per tonne from 2017 until the beginning of 2021, with an increase to $1400 per tonne.

Andrew Whitelaw, Manager of Market Insights said that the demand for urea had also exerted pressure on the price and availability of DAP.

“Since September last year, DAP/MAP is up 55 per cent, and 170 per cent since November 2020,” he said.

Shipments of DAP from Morocco have eased supply concerns, but are likely to cost Australian farmers between $1200 – $1500 per tonne.

Sources: AgroPages , Electrek , ABC , Farm Weekly .
Image: Photo by Ian Taylor on Unsplash

Ag Visa Woes: Unions Block Buy-In from Partner Countries

Fri, 14 Jan 2022 05:28:09 GMT

The long-awaited launch of the ag visa is yet again delayed, with not a single South-East Asian country signing up to be involved.

Despite coming into effect in October last year, no workers have been granted a visa or employed under the scheme. The Australian government has lashed out at the Australian Workers Union (AWU), accusing them of spreading misinformation to countries to halt bilateral agreements.

“The AWU has met with ambassadors and visitors, and contacted many embassies from Southeast Asia, encouraging them not to sign up to the agricultural visa because they believe that Australian farmers will exploit their citizens,” said Agriculture Minister David Littleproud.

“I don’t know why the AWU hates Australia so much and hates farmers so much.

“You don’t go and do that, and actively sabotage a program and actually remove any goodwill around our reputation as a good citizen globally.”

The AWU confirmed that it had spoken to diplomats from several South-East Asian and Pacific Island nations but would not specify which ones. In defending their position, the AWU said it was concerned about the industry’s track record for “worker exploitation and worker abuse”.

“If your industry serves up a mountain of bad apples, you have to be unethical, stupid, or both to ignore the need for systemic reform,” said AWU’s national secretary Daniel Walton.

“We have spoken to ambassadors and we will continue to tell them – and anyone else who will listen – that the new ag visa is dangerous and will pave the way for even more exploitation,” he added.

Pressure is now on Foreign Affairs Minister Marice Payne to convince key South-East Asian countries to sign up to the visa program.

“We need the Foreign Minister [Marise Payne] to have clear air, the AWU needs to get out of the road so we can have clear bilateral discussions,” said Mr Littleproud. “All we’re waiting on now are the bilateral [agreements] with a number of South-East Asian countries that [Foreign Affairs Minister] Marise Payne is negotiating.”

Industry Still Hopeful for Ag Visa

Despite the myriad of setbacks, sectors of the agriculture industry are still hopeful that the ag visa will help to ease labour shortages.

Will Evans, chief executive of the NT Cattlemen’s Association, said he was “cautiously optimistic” that visa holders would come online in 2022.

“I think we would mirror some of the scepticism around some of the details with this [visa],” he added.

“Finding a regional workforce has been a massive challenge for us, especially for some of our remote cattle stations, and the reality of having no backpackers has been a challenge.

Sources: Farmonline , ABC , Farmonline

challenges-and-opportunities-recruiting-agriculture-candidates-in-2022/

Wed, 05 Jan 2022 05:34:20 GMT

The Lucas Groups specialist recruitment consultants have provided insight into recruiting agriculture candidates in 2022. We’ve highlighted the trends and strategies that will shape successful workforces as we enter another exciting – and likely challenging – year of producing food and fibre for a global market.

While Australian agriculture enjoys strong demand, yield and prices, the focus is now on 2022 and the impact industry buoyancy will have on recruiting and retaining staff across the supply chain.

Growing and Emerging Agriculture Sectors

The role of data in streamlining agricultural operations has led to a surge in the value of precision agriculture on-farm, with specialist PA roles becoming a more common feature in the landscape. Supported by initiatives like government funding, the market will continue to see increased demand for PA specialists – so long as the education sector continues to attract and produce skilled graduates.

“The increased productivity, profitability and career options that precision agricultural technologies bring to our industry ensure continued growth through innovation,” said The Lucas Group’s Managing Director Geoff Lucas.

“To continue to ensure the maintained growth of this industry area, the inclusion of agriculture in STEM should be highlighted, labelling the acronym STEAM.”

Another emerging trend will be increased vacancies for candidates with speciality skills in carbon neutrality and emissions reductions . With agriculture seen as a golden ticket for Australia’s emissions reduction strategy, Mr Lucas said that an increasing number of employers are seeking in-house staff with relevant knowledge.

“Positions helping our industry to achieve carbon neutrality are on the increase. As the industry continues to move towards emissions reductions, candidates in this specialty area will continue to be in high demand.”

Across the 2019-2020 financial year, Australia’s horticulture industry grew produce values at more than $15 billion, employing more than 60,000 workers. Despite the ongoing worker shortage, demand and production remain strong, presenting opportunities throughout the sector.

“The continued strength and growth of the horticultural supply chain represents outstanding opportunities for agricultural workers, from entry-level to senior management,” said Brodie McHugh, Recruitment Resourcer for The Lucas Group.

Agricultural Workforce Challenges

Consistent with previous trends, supply chain disruptions and worker shortages will continue to be the most dominant challenges for the industry, according to Senior Consultant, Tom Lucas.

“Supply chain disruptions are bound to continue, but if we’ve seen anything over the last few years it’s that agriculture is as resilient as ever. We’ve managed to continue to thrive through global restriction and diplomatic issues, and I’m sure we will continue to grow.”

“Even with some disruptions, we will continue to build towards the $100 billion by 2030 target in 2022.”

Buoyant trading conditions in 2021 saw more than 300,000 new workers employed in the industry, putting further strain on worker shortages already facing many sectors. While relaxed border controls and the implementation of the new agriculture visa may help, Geoff Lucas says that more needs to be done at an industry level.

“Unless the agriculture and horticulture industries take responsibility for the people who are in the industry, it may never be an attractive career. The industry needs to invest in education and skills development, possibly covering the cost of education of the next generation, making ag industries more attractive for school leavers,” he said.

Recruiting Agriculture Candidates

With a short supply of skilled and qualified candidates, employers must be prepared to search widely for candidates and provide flexibility in salary packaging and working arrangements.

“In a candidate-short market , employers will need to actively search for the right candidates. They are not likely to just apply. It’s important to stay up to date with what potential employees expect in terms of remuneration and workplace flexibility,” said Geoff Lucas.

“While the rate of salary increase in agriculture is only two per cent, employers should take the opportunity to communicate the total package involved. Investment opportunities, share-farming arrangements, and seasonal bonuses can help to attract and retain skilled workers,” he added.

Presenting the best first impression with a job advert is an essential part of the process, but requires a strategic approach to maximise candidate interest.

“A professional job advert that focuses on enticing applications, rather than technical competencies, can help attract a diverse range of potential workers. Keeping an open mind when going through the recruitment process is crucial in bringing new talent and diversity to our industry.”

Attracting New Staff In A Competitive Climate

Sun, 02 Jan 2022 06:04:37 GMT

It is becoming increasingly difficult for employers to attract staff in the current competitive climate. The uncertainty of the last couple of years has left a lasting impact on the job market, with fewer candidates applying across all industries, and changing candidate expectations. Agricultural job recruitment is no exception, with staff shortages being felt across Australia.

SEEK.com.au reports a market-wide trend indicative of strong job numbers but a decrease in applicants, even in agribusiness and agricultural industries.

To combat the effects of this incredibly competitive climate it’s crucial to understand the driving factors behind job seekers or how to get someone to leave their stable job for your business.

Job Security and Stability

Job security is one of the primary considerations by job seekers. SEEK.com.au’s research shows that 31% of respondents said they’ve cancelled their plans to switch jobs, while 40% feel uncertain about their job security.

Businesses now need to make sure they are impressing upon candidates the history, longevity, and solid foundation of the business. Once appointed, it’s more crucial than ever to ensure that employees feel valued to feel secure.

Candidate Expectations Are Changing

It’s been 34 years since Gordon Gekko proclaimed that “greed, for lack of a better word, is good”. He was talking about money, and while financial compensation is still important, there’s more emphasis on work/life balance, flexibility, and personal fulfilment.

“Ensuring the satisfaction and engagement of your current staff and potential candidates by understanding their changed expectations will help your business attract new staff in today’s competitive climate,” says The Lucas Group’s Geoff Lucas.

“You need to make your business an employer of choice, a company where people can fulfil their career and life goals. By adapting as expectations change, you can ensure your business maintains growth and productivity.”

SEEK.com.au states that 2 in 3 candidates want a job that makes a difference in society.

Businesses must now ask themselves about the intrinsic value of a position and how they can market it, promoting the benefits that this role brings to the community.

Are Applicants Enough, Or Should You Be Proactively Recruiting?

With job applications down, proactively recruiting (headhunting) may be the best way to approach, negotiate, and attract the perfect candidate for an open position.

Hiring managers and SME’s can take the pain out of the hiring process with help from The Lucas Group.

The Lucas Group is Australia’s premier agribusiness recruitment agency. We have the connections and industry expertise to find the right candidates for our clients.

For every agricultural job recruitment project we apply a parallel search process, utilising outbound marketing and directly approaching candidates across our network of over 100,000 people.

Attracting and finding the right candidate for a position is a lengthy undertaking and convincing someone to leave their current job for a new opportunity is getting harder and harder.

The Lucas Group can help you to market the role, promote your business, build candidate trust, and conduct a thorough search for candidates who aren’t actively seeking a new position.

Photo by Tim Mossholder on Unsplash

Australia Signs Landmark Australia-UK Free Trade Agreement

Fri, 17 Dec 2021 06:11:18 GMT

Following through on the Christmas deadline , Australia has signed off on a landmark Australia-UK Free Trade Agreement .

The recent FTA will result in Australian exports to the UK being cheaper, create new opportunities for workers, young people and businesses and further strengthen the special relationship between our countries.

The AUS/UK is the most comprehensive and ambitious free trade agreement that Australia has concluded, other than with New Zealand. It is also the first free trade agreement struck by the UK since it left the European Union.

Once the FTA is in force, exporters will benefit from the immediate elimination of tariffs on over 99 per cent of Australian goods exports to the UK, valued at around $9.2 billion.

[This Free Trade Agreement] demonstrates our countries’ commitment to free trade as a driver of economic growth and stronger bilateral relationships.

The Hon Dan Tehan MP, Minister for Trade, Tourism and Investment

Aussie farmers will have improved access to more than 65 million UK consumers, greatly increasing our economic potential.

Australia-UK Free Trade Agreement Delivers Benefits Across The Board

Around $43 million in annual customs duties will be removed from Australian wine when the agreement enters into force.
Beef – a tariff-free quota of 35,000 tonnes at entry into force will expand to 110,000 tonnes in year 10. Tariffs on beef will be eliminated after ten years.
Sheep Meat – a tariff-free quota of 25,000 tonnes at entry into force will expand to 75,000 in year 10. Tariffs on sheep meat will be eliminated after ten years.
Sugar – a tariff-free quota of 80,000 tonnes at entry into force will expand to 220,000 tonnes in year 8. Sugar tariffs will be eliminated after eight years.
Professionals will have the same access to the UK’s lucrative jobs market as their European competitors. Australian job seekers will be able to compete on an equal footing with EU nationals in the UK for the first time in more than 40 years.
Australian households and businesses will save around $200 million a year as tariffs on British imports into Australia, such as cars, whisky, confectionery, biscuits and cosmetics, are phased out within five years, with tariffs on almost all UK goods being eliminated on entry into force.
Australian businesses will have the guaranteed right to bid for a greater variety of UK government contracts in a procurement market worth an estimated half-a-trillion dollars annually.
UK businesses will be encouraged to invest in Australia thanks to best practice investment rules, including to set up regional headquarters in Australia to leverage our network of free trade agreements.

FTA To Open Up Two-Way Trade in 2022

The agreement is set to be brought into force in 2022, allowing Australian exporters, farmers, workers, businesses and consumers can access the benefits of this gold standard agreement as soon as possible.

When the Australia-UK FTA enters into force, around 75 per cent of Australia’s two-way trade will be covered by free trade agreements, representing preferential access to 2.9 billion customers.

Source: Media Release , The Hon Dan Tehan MP, Minister for Trade, Tourism and Investment & The Hon. Scott Morrison MP, Prime Minister

Original photo by Sabrina Mazzeo on Unsplash

Australian Produced Christmas Feasts Looking Fresh

Thu, 16 Dec 2021 06:21:50 GMT

Australian produced Christmas feasts are looking promising this year with the return of Coffin Bay Oysters, low lobster prices, avocados galore, and pork going ham. Increased consumer awareness of locally produced Christmas food is helping to increase the market for Australian growers.

Oysters Back on The Menu for Season Celebrations

After a recent contamination scare world-famous Coffin Bay Oysters are now back on Christmas menus. The restrictions have cost the industry hundreds of thousands of dollars but are being lifted just in time.

Oyster farmers in the Coffin Bay growing area are being progressively opened for harvesting again, with the first oysters from the area able to reach customers this week.

Minister for Primary Industries and Regional Development David Basham said the State Government has been working closely with the oyster industry to lift restrictions as soon as possible.

“We are confident Coffin Bay oyster growers have done everything possible to give confidence to consumers about the safety of their product and we can start seeing South Australia’s famous oysters back on family dining tables in time for Christmas,” Minister Basham said.

SA Health has varied three emergency orders to allow Angel Seafood Infrastructure Pty Ltd, Pristine Oyster Farm, and Southern Eyre Seafood to harvest and sell oysters from the Point Longnose Aquaculture Zone for their licensed areas only.

Lobster Industry Focuses on Australian Christmas Feasts

The seafood sector is the latest casualty of increasing trade tensions with China after several deliveries of live lobsters were held up for quarantine inspections. In October this year, lobster shipments were halted on the tarmac of Chinese airports with no notice and little explanation from trading partners or government officials.

South Australian company Ferguson Group usually exports around 350 tonnes of live lobsters to China each year, but constant bureaucratic hold-ups have made trading with Chinese buyers “too risky” according to the company’s Managing Director.

For the Ferguson Group, sights now shift to the domestic market with hopes that low prices at Christmas will help to maintain profitability in the wake of the loss of its Chinese buyers . CEO of Seafood Industry Australia, Veronica Papacosta says that China’s loss is our gain at Christmas time.

“As we saw last year, Australian rock lobsters are again a great buy. People can expect to find small, whole western rock lobsters starting at the $20-25 price point, moving up to $30-32 for a 400-500g lobster.”

“With international and domestic travel restrictions still in place, we’re seeing more people in Australia for Christmas than we have previously,” she says. “This means there’s an increased number of people wanting to eat seafood at Christmas. Coupled with labour shortages across all sectors of agriculture, this means we could see supply stretched.”

Aussie Avocados Versatility Perfect for Australian Produced Christmas Feasts

The oversupply of avocados and shortage of pickers this year has led to the fruit selling for less that the cost of production.

Growers and industry bodies have been calling for Australians to increase their avocado consumption, highlighting the fantastic value for consumers that has resulted from the oversupply.

“Australian avocados are in abundant supply this year and great value.”

“This year’s Hass crop is of excellent quality, and at this time of the year Australian Hass avocados are coming from the Western Australian and Tristate growing regions,” Avocados Australia CEO John Tyas said.

SA Riverland based Sarah Tucker-Boehm is highlighting the versatility of the fruit, publishing a variety of recipes featuring avocados on her social media profiles .

Sadly, spring storms have caused damage to several key horticulture regions. Queensland watermelon growers reported losses of up to 85% making this Christmas favourite significantly more expensive this year. Storms and ongoing labour shortages are also likely to increase the price of cherries, while stone fruit will also be less abundant than usual.

AusVeg’s Shaun Lindhe said that it was difficult to predict how worker shortages would impact produce availability and price into 2022.

“Growing conditions have generally been good in most vegetable growing areas, so ensuring there are enough workers to harvest vegetables and supply customers with high-quality produce is the industry’s top priority,” he said.

Get Some Christmas Pork on Your Fork

Pork production levels are running above average this year, assuring consumers of excellent prices on Christmas hams. Having competed with cheaper imports in previous years, Australian pork is one sector enjoying a resurgence among buyers looking for locally-grown produce.

“It’s unfortunate that the majority of ham and bacon in this country is made using imported pork,” said Margo Andrae, CEO of Australian Pork.

“However, we are also anticipating a renewed enthusiasm for Australian consumers to want to choose Australian-grown produce this Christmas.”

Australian Pork has stepped in and done the legwork this year to help consumers pick the perfect Aussie Christmas ham . Judging hams across Coles, Woolworths, Aldi, Costco, and IGA to help shoppers.

Annually, Australian retail Christmas food sales are valued at just under $30 billion. This year is shaping up to be an excellent one for the industry and for consumers!

Sources: Roy Morgan , Eativity , Eativity , ABC , David Basham MP , Avocados Australia

Photo by Lynda Hinton on Unsplash

School Leavers the Key to Solving Agricultural Workforce Shortages

Wed, 08 Dec 2021 06:31:37 GMT

A new report from Deloitte suggested that school leavers may be the key to solving current agricultural workforce shortages.

The report claims that farming is on the verge of a workforce crisis. It highlighted attracting school leavers as one of six strategies to reverse the ongoing issues that worker shortages pose. In addition to current workforce supply constraints, the aging demographic of farmers and lack of diversity will likely exacerbate the workforce shortage over the coming decades; unless plans are put in place to reverse the trends.

The report says that the industry needs to frame farming careers in a more progressive light, pointing to the role of young people as the next wave of agricultural employees.

“Agricultural careers need to be promoted as successful and respectable career options, not just for students who have a family farming background. It has been shown that creating positive, hands-on experiences (such as training placements), not only attract young people into the industry but also create strong advocates for careers within agriculture.”

With funding from the Australian Government, a new pilot program aims to encourage young people to consider a role in the industry – promoting an agricultural gap year to school leavers.

Announced as part of National Agriculture Day on 19 November, AgCAREERSTART will place school leavers in agricultural jobs, supported by relevant training, pastoral care, networking opportunities, and relocation costs.

“An agricultural gap year opens up a whole universe of amazing careers in this thriving, important sector, from livestock and cropping to technology, innovation and entrepreneurship,” said Minister for Agriculture, Drought and Emergency Management, David Littleproud.

“An agricultural gap year is a crucial pathway to attract young Australians to agriculture, creating long-term, meaningful careers.”

“People are our most important asset in agriculture, and we’re relying on them as we stride towards our ambitions Ag2030 goals of a $100 billion industry, ” he added.

AgCAREERSTART is open to anyone under the age of 24. Businesses and organisations looking to provide a placement through the scheme can register their interest via the website .

Agricultural Industry needs “an image makeover”

In addition to the development of career pathways for young people, Deloitte’s report noted the need for an image makeover for the agricultural sector as a crucial requirement in attracting new talent.

The report authors also claim that current stereotypes and outdated images of industry players continue to contribute to labour shortages.

“This branding of the industry does not reflect or promote the innovative, diverse, forward-thinking and positive lifestyle factors that a career in farming offers. In fact, it undervalues agriculture’s contribution to the Australian economy and dampens the attractiveness and enticement of skilled workers into the sector.”

Other strategies suggested include improving job advertisements to create better first impressions and the publication of total salary packages, highlighting the breadth of cash and non-cash components.

“Being innovative in the type of rewards offered, such as investment opportunities and share farming arrangements can also benefit the attraction and retention of skilled workers into the agricultural sector.”

Sources: Minister for Agriculture , Agcareerstart , Deloitte

Photo by Spencer Pugh on Unsplash

Resilient and Growing: The Future is Bright for Australian Agriculture

Fri, 03 Dec 2021 06:40:46 GMT

Strong financial performance, growing export demand and the use of emerging technologies are positioning agriculture to be one of the most exciting sectors in the Australian economy.

Agriculture is already the second biggest contributor to GDP, after mining ($202 billion in 2019), contributing $71.9 billion.

In 2019-20, the domestic agriculture and food sector contributed $71.9 billion in Australia’s gross domestic product (GDP). This year, total agricultural production alone is set to surpass the $70 billion threshold for the first time.

Currently, 70% of food produced in Australia is exported, with the increasing wealth of Asian citizens a key driver for future growth. While recent trade tensions with China have forced exporters to review their market, Asian markets are still forecast to double in value by 2050.

Renewed investor interest in agriculture has been driven by the sector’s potential, along with strong returns and resilience to weather and climate events, geopolitical tensions and COVID-19. Of the 35 agricultural stocks on the ASX, the majority have made returns above 10% in the last year.

Agtech is one subsector viewed as having significant growth potential with more investor appeal than on-the-ground farming. Globally, investors backed agtech with $22 billion in 2018, while Australia’s slice of the pie was just $39 million . AgTech innovations span emerging markets such as cannabis which globally is set to grow by 25% per year, reaching US$67 billion by 2028. New research has predicted that the domestic cannabis industry will experience annual growth of 40% over the next five years – and with our clean, green credentials, industry experts are tipping Australia as a potential export powerhouse for medicinal cannabis.

Ducking and Weaving: Current and Future Challenges

While the future of Australian agriculture is bright, external pressures will continue to challenge the industry to adapt and acclimate. Global supply disruptions have tightened the availability of fertiliser, herbicides and pesticides, simultaneously jacking up prices. The price of glyphosate increased by 75% in 2021 with phosphate at its most expensive since 2011. Research released by Rabobank suggested that freight dynamics will continue to exert pressure on farmers until at least the first quarter of 2022.

The longer-term implications of climate change have been highlighted by the announcement of a La Nina event which has already caused havoc for farmers in regions across Australia . Grain yields, in particular, will be smaller with poorer quality than usual, putting additional pressure on farmers in New South Wales and Queensland who were eyeing off the 2021 harvest as a way to recover financially from an extended period of drought.

Labour shortages continue to be an issue at the coalface of farming, with a shortage of backpackers and uncertainty around the new agriculture visa system. Shortages are experienced across all sectors of the industry, and at all levels with the aging workforce set to snowball the issue over the long term.

Sources: Minerals Council of Australia , Stockhead , Rabobank , Deloitte , Stockhead

Image: By Benjamin Davies on Unsplash

Pressure on 2021 Australian Grain Harvest

Fri, 26 Nov 2021 06:47:13 GMT

The 2021 Australian grain harvest has been hampered by adverse weather events in many parts of Australia, ramping up the pressure on growers.

November has received near-record rainfall, with more than 150 millimetres falling across parts of New South Wales, flooding in parts of the Lachlan Valley, and farmers on the Liverpool Plains unable to harvest crops due to flooded paddocks. Local grain grower Andrew Watson described the season as being worse than a drought year.

“For those that had a complete wipe out, you might as well have had a drought. But with a drought you wouldn’t have spent as much money growing the crop,” he said.

“It’s not just rainfall, it’s going underwater, having a swim. It’s pretty heartbreaking,” he added.

If able to harvest his wheat, Mr Watson expects it to be downgraded to feed quality at a loss of $500 per tonne; in a year when fertiliser and herbicides have been at a premium.

Early season indications strongly suggested that the agriculture industry would exceed $70 billion in annual production for the first time on record. However, this prediction will now have to be significantly revised; due to late seasonal conditions.

“It’s been extraordinary weather all around the country, all the cropping areas have received very untimely rain,” said Richard Heath, Executive Director of the Australian Farm Institute.

“The fact that it was a cool temperate spring had added to the crop yields being so good, but the flipside is now we’ve gotten into the harvest period and the La Niña is really expressing itself and we’ve gotten all this rain.”

WA Grain Growers Experience Yield Loss in 2021 Australian Grain Harvest Season

Grain growers in South Australia have dealt with two hailstorms and a wet start to harvest. Farmers in Western Australia have experienced significant frost damage with yield losses of up to 35% for wheat and 15% for barley. Good growing conditions, including the wettest year on record, make frost losses even more frustrating.

A reduction in grain protein levels is concerning the world grain market, which was looking to Australia to solve the shortfall left by grain-growing countries in the Northern Hemisphere.

“In Western Australia this year, nearly half of the crop is standard white wheat,” said Ole Houe, director of advisory services at IKON Commodities. “In a normal year, average standard wheat is just 25% of the overall output.”

Supply shortages have seen wheat prices rise to the best in almost a decade. The gap between APW and ASW is currently at $40 a tonne, four times the usual difference.

La Niña Confirmed for Australian Summer

The Bureau of Meteorology officially confirmed that Australia is entering into a La Niña phase until at least January 2022.

Eastern and Northern states will experience a cooler wetter summer with an increased risk of flooding and more storms and cyclones than usual.

The La Niña event at the beginning of 2021 resulted in more than 65,000 insurance claims with a total value of $1 billion.

Sources: The Guardian , The Land , Agriculture.com , The Guardian
I m age: Photo by meriç tuna on Unsplash

UK AUS Free Trade Agreement to be Signed off by Christmas

Fri, 19 Nov 2021 06:55:02 GMT

British and Australian trade representatives have confirmed that the UK AUS Free Trade Agreement will be finalised by the end of the year.

Speaking to Sky News Australia, the head of the Australian British Chamber of Commerce, David McCredie, said that he was confident that the deal will be finalised within the next six weeks.

“We’re inching ever closer,” McCredie told Sky News Australia.

“We’re really close, not quite there yet, but watch this space and I don’t think it’s very far away at all.”

The free trade agreement, which was agreed in principle in June this year, will reduce tariffs on Australian red meat, wine, sugar and dairy imports to the UK – potentially adding $1.3 billion annually to Australia’s export revenue.

British Farmers Concerned About UK AUS Free Trade Agreement

News of the deal has worried British farmers who are concerned about the impact imported meat will have on the profitability of the domestic livestock industry.

While the staggering of tariff reductions will control the pace of Australian imports, a new report has signalled that Australian exporters will likely favour more lucrative markets over the UK.

Published by Strategic Insights, the report suggested “more lucrative and rapidly expanding markets closer to home” would be a better option for the Australian red meat industry.

“At present their geographically closer markets are probably more attractive than the UK market and the new quantitative economic model demonstrates that in a stable world the impact of the trade deal will increase imports into the UK from Australia by relatively small amounts.”

The report also found that the uncertainty facing British farmers was creating an industry on edge.

“Many UK farmers are currently able to remain profitable due to financial support from government in the form of BPS and other financial incentives.”

Other factors are Australia’s favourable cost of production, which is significantly cheaper than British beef and lamb counterparts. UK farmers have also argued that they will struggle to remain competitive from countries with lower animal welfare and environmental standards.

Earlier this year, the UK’s trade secretary Liz Truss moved to reassure the industry that imports under the free trade agreement would not affect the value of British produced commodities.

“At the moment, there are extremely small quantities of Australian beef coming into the UK,” she said.

“So what we’d be looking at here is over time some of the EU imports [lost due to Brexit] being replaced by Australian imports.”

Botham Bats for UK AUS Trade Relations

News of the impending free trade agreement comes as Lord Ian Botham has become a two-month visit to Australia as the UK’s Trade Envoy. The cricketing great was appointed to the position by UK Prime Minister Boris Johnson to develop trade relationships between the two countries.

Lord Botham will meet key business partners in Adelaide, Melbourne and Sydney; whilst also commentating on all five Ashes matches for the Seven Network.

Sources: Gov.UK , Bloomberg , The Lucas Group , Farm Weekly

Agriculture Carbon Neutrality Leapfrogs Government Position

Thu, 11 Nov 2021 07:07:23 GMT

Australian agriculture industry groups are setting their own pace to achieve agriculture carbon neutrality in the wake of COP26.

To remain competitive in a global market our industries must reduce emissions. Acknowledging this Australia’s red meat sector has committed to being carbon neutral by 2030, while the pork industry is aiming for the same achievement by 2025.

Last week, the New South Wales Irrigators Council announced a commitment for their members to become carbon neutral by 2050, with an aspirational goal of 2030.

“The economy of the very near future will demand and expect nations to demonstrate their demonstrate Australia is doing our bit,” said CEO Claire Miller.

“It’s only a matter of time. We are already seeing the shift, with the EU recently warning Australia may face carbon tariffs if it does not commit to strong 2030 targets.”

The potential implementation of tariffs is likely to continue motivating industry participation in reducing agricultural emissions, and aiming for agriculture carbon neutrality, despite the Australian Government’s stance.

Europe Proposes Carbon Border Adjustment Mechanisms (CBAMs)

Looming on the horizon, Carbon Border Adjustment Mechanisms (CBAMs) will assign a tax to the carbon content of imports from countries without an emission trading scheme or carbon tax, including Australia. The EU, US, Canada, and Japan are considering implementing CBAMs. UK Prime Minister Boris Johnson has suggested a carbon club with membership reserved to countries with high climate ambition.

The EU’s proposed CBAM covers heavy metals, electricity, cement, and fertiliser. An analysis of this proposal predicts a significant risk to the profitability of Australian suppliers, who would be penalised with an additional tax. As a result, many suppliers have undertaken significant investments in renewable energy.

Townsville-based Sun Metals, the largest producer of zinc worldwide, has pledged to be 85 per cent powered by renewables by 2030 and 100 per cent by 2040.

“With our existing portfolio of 124MW of solar and 30 per cent interest in the 924MW MacIntyre wind farm, which is targeting full commercial operations by November 2024, we could potentially be producing green zinc as early as 2025,” said Daniel Kim, the CEO of Sun Metal’s sister company Ark Energy.

“We feel a responsibility to demonstrate corporate leadership in tackling global warming, so it’s the right thing to do. But it’s also the smart thing to do,” he says.

CBAMs Scope Could Capture Agriculture

While the development of CBAMs currently focuses on heavy industrial imports, there is scope for agricultural imports to be on the cards. A recent report by Ernst & Young warns Australian agriculture to “be prepared for the risk that agricultural products are captured under the CBAM.”

Research from the Australia Institute goes one step further, proposing CBAMs as a source of opportunity for exporters.

“…a CBAM would only create positive price signals for clean exports. Indeed, Australia’s abundant and low-cost solar and wind resources, minerals endowment, land availability, and scientific and technological capacity would position it to prosper in a low-emissions world.”

Australia Institute , Carbon Border Adjustments – What are they and how will they impact Australia?

Sources: ABC , The Guardian , Australia Institute , The Guardian

Photo by RawFilm on Unsplash

Hourly Minimum Wage for Casual Farm Workers

Thu, 04 Nov 2021 07:28:12 GMT

In a landmark ruling, the Fair Work Commission has ruled that casual farm workers are entitled to an hourly minimum wage of $25.41. From 2022, piece rate workers will be paid the minimum hourly wage in addition to piece rates which would allow a competent worker to earn an additional 15 per cent. Growers will also need to keep a record of hours worked.

The ruling follows consideration of the fairness of piece rate arrangements, where fruit and vegetable pickers are paid on a per piece basis. In delivering their findings, Fair Work said that the use of piece rates enabled some employers to pay workers just $3 per hour.

“The existing pieceworker provisions in the Horticulture Award are not fit for purpose; they do not provide a fair and relevant minimum safety net as required by (the Fair Work Act),” the Commission’s ruling found.

“The Full Bench was satisfied that the insertion of a minimum wage floor with consequential time recording provisions in the piecework clause is necessary to ensure that the Horticulture Award achieves the modern awards objective.”

Australian Worker’s Union Advocates for Minimum Hourly Wage

The case was brought by the Australian Workers Union (AWU), who appealed to Fair Work to scrap the use of piece rate agreements in favour of a minimum hourly wage. AWU national secretary Daniel Walton said that the move would protect pickers from being exploited as cheap labour.

“Fruit pickers in Australia have been routinely and systemically exploited and underpaid. Too many farmers have been able to manipulate the piece rate system to establish pay and conditions far beneath Australian standards,” he said.

“From now on if you’re making less than $25 an hour fruit picking in Australia your boss is breaking the law and stealing from you.”

Growers Hit Back at Increased Labour Costs

Growcom chief executive Stephen Barnard worried the decision would cause more issues for an industry already facing an unprecedented labour shortage.

“We know for many growers labour is their most significant input cost. If they can’t wear these increased costs of offering piece rates, then our real concern is that we’ll see another exodus from horticulture of the most willing and motivated workers right in the middle of a severe labour shortage when we need them the most,” he said.

Mr Barnard said that the industrious nature of piece rate work was an essential drawcard used to attract workers to the sector.

“Looking forward, we need more employers offering rewarding piece rate work if we’re going to attract more Australians to our industry, and also more workers through Pacific labour programs and the new agriculture visa.”

Sources: Sydney Morning Herald , ABC , AFR

Image: “ Working the Field ” by Alex Proimos is licensed by

2050 Net-Zero Target Achievable but Farmers Need Better Support

Fri, 29 Oct 2021 07:47:50 GMT

Australian farmers will benefit considerably from a reduction in carbon emissions but need greater support to reach Australia’s net-zero target by 2050.

That’s according to a report by the Grattan Institute, released in the lead up to Prime Minister Scott Morrison’s attendance at the United National Climate Change Conference in Glasgow later this month.

Australian agriculture accounts for 15% of national greenhouse gas emissions, with sheep and cattle producing 75% of the total. In addition to contributing to the national overall net-zero goal, Australian agriculture needs to avoid future trade tariffs likely to be imposed on heavy emitters.

A key finding of the report was the need for farmers to be better supported through the development of low-emission technologies to replace machinery currently powered by fossil fuels. Another recommendation focussed on the availability of advisory services to help decision making for farmers looking to reduce carbon emissions or sequester carbon on-farm.

National Farmers Federation president Fiona Simson said that farmers need “far better tools for evaluating and reporting on individual business emissions” in order to access carbon credits under the Emissions Reduction Fund.

“This will require new investment in research and development, so we have more robust baseline information, new pathways to reduce emissions, and fewer barriers to participation in carbon markets,” Ms Simson said.

Ernst & Young Report On How Australian Agriculture Can Achieve 2050 Net-Zero Target

Data developed by Ernst & Young suggests that meeting the 2050 net-zero target could be a reality for agriculture if current government policies and schemes were scaled to suit. Several schemes currently support Australian farmers with economic incentives to adopt more sustainable methods, including the carbon farming initiative and the agricultural stewardship package.

With further enhancement, it could be well positioned to assist the sector to decouple economic growth from greenhouse gas emissions and take action to build upon its inherent strengths.

How can Australia’s agriculture sector realise opportunity in a low emissions future? , Ernst & Young Australia for Farmers for Climate Action, Sept 2021

The modelling, undertaken by Ernst & Young on behalf of Farmers for Climate Action, suggested that agriculture could reach net zero emissions by 2040. Key actions include a reduction in methane, a move to renewable energy sources and changes in land management use.

The report also included a case study on the electorate of Maranoa in Queensland which has relied on industries including farming, mining, and energy production for local jobs. Upscaling the uptake of sustainable opportunities would generate between 58 million and 71 million carbon credits over ten years, with an economic value of 14,000 – 17,000 jobs in the electorate alone.

Queensland Graziers Diversify with Carbon Storage

Queensland farmers Nadia and Robert Campbell have sold the first carbon credits under the state government’s Land Restoration Fund.

The graziers have stored around 35,000 tonnes of carbon on Goondicum Station near Bundaberg, with the aim of storing another 165,000 tonnes over the next 25 years.

Land management practices including reforestation have been incorporated into their approach, offering a duo of benefits to their business.

“The beauty of our carbon project and working with the LRF is that they’re not two mutually exclusive things when it comes to integrating with our beef production,” Ms Campbell said.

“A better-quality environment means less overheads for us in terms of land management, and we’re seeing those rewards by improving canopy coverage and regenerating large areas of forest.”

Currently, carbon credits are valued at about $18, each representing a tonne of carbon dioxide (or equivalent) removed from the atmosphere.

Sources: Farm Online , Farm Online , The Guardian

Photo by Leon Ephraïm on Unsplash

National AgDay Showcases Career Opportunities in Agriculture

Fri, 29 Oct 2021 07:34:58 GMT

National Agriculture Day (AgDay) on 19 November, is rapidly approaching and in addition to celebrating the remarkable contributions of Australian Agriculture will highlight the varied and exciting career opportunities available in agriculture.

The theme of this AgDay is ‘Choose your #AgVenture’ showcasing the agricultural industry in Australia and challenging Australians to consider career opportunities in the industry. “There is a job for everyone in agriculture – whether it’s riding the boundary fences of a Top End cattle station or breeding the next breakthrough wheat variety in an inner-city laboratory, Australians really can choose their own #AgVenture,” NFF CEO Tony Mahar said.

“The quintessential farm jobs that have in many ways defined agriculture are still there and new entrants are desperately needed. Jobs like shearers, roustabouts, station hands, header operators and stock truck drivers.

“And, there are many other jobs, lots of which can be city- or country-based, that aren’t on-farm but which are vital in the farm supply chain. Careers in fields as diverse as finance, digital technology, science, marketing, trade and policy development,” Mr Mahar said.

“No matter what your interest, where you live (or want to live) there are rewarding, fulfilling, and diverse jobs waiting for you in agriculture.”

Virtual Learning Opens Gates for Agriculture Career Opportunities to Metro Schoolkids

Virtual learning developments over 2020/21 have already begun to highlight the opportunities in agriculture to primary students across Australia with dial-a-farmer, a virtual program zooming rural farmers into the classroom. By exposing metro students to agriculture the program hopes to inspire them to become a part of the industry.

Australian farmers invest $3.3 billion a year in research & development, opening avenues for new technologies and techniques. The rapidly changing nature of agriculture in Australia means that the opportunity to become a part of Australia’s industry of choice can be open to people from all backgrounds, and most higher education qualifications can be applied in the field.

Careers in the agricultural industry are incredibly varied. Currently, over 313,000 people are employed in agriculture, which accounts for about 2.4% of the national workforce.

Australian Government Commits to Agriculture

AgATTRACT, announced in the 2021/22 Federal Budget, is an Australian Government initiative to help the agricultural sector secure, skill and build the ag workforce.

AgATTRACT provides for:

$5.1 million in administered funding for AgCAREERSTART pilot – a structured and supported gap year in agriculture for school leavers
$7.3 million in administered funding for AgUP pilot – a grants program to support industry-led projects that create opportunities for upskilling and career progression
$1.3 million in administered funding for research on community views and worker experiences of the agriculture sector
$1.5 million for ABARES to improve agriculture labour forecasting
$4.2 million for the Australian Bureau of Statistics to update agriculture occupations in the Australian and New Zealand Standard Classification of Occupations and to get a better picture of agriculture workers
$2.7 million for the National Careers Institute to ensure career information reflects modern agriculture occupations with the development of an up-to-date map of careers and pathways.

The government hopes that this investment will help support the sector build towards the $100 billion Ag2030 target.

The Lucas Group

As an agricultural recruitment firm, The Lucas Group believes that the people working across the agri-industries will ensure our bright future. To register your resume and details with us for future career opportunities in agriculture fill in the form here . If you’re ready to start looking at your next move in agriculture have a look at our Available Jobs .

Sources: ABC , Department of Agriculture, Water and the Environment , National Farmers Federation

Photo by Warren Wong on Unsplash

Initial Hancock Station Sale Raises $100 Million

Wed, 13 Oct 2021 07:56:33 GMT

Three Western Australian stations have sold for a combined $100 million, marking the initial divestment of an aggregation of properties by Hancock Agriculture .

Nerrima Station, totalling 200,000 hectares in the West Kimberley, was sold to Jonathan Emanuel in partnership with the McLarty family from Pinjarra. The property has a carrying capacity of more than 15,000 cattle and sold for more than $30 million.

The adjoining leases of Ruby Plains and Sturt Creek were sold to Northern Territory identity Viv Oldfield. Combined, the two properties cover almost 800,000 hectares in the southeast Kimberly region with a carrying capacity of 25,000 cattle and a price tag of more than $60 million.

In 2017, Gina Reinhardt outbid Mr Oldfield for the S. Kidman & Co cattle station aggregation. The following year, he secured Clifton Hills in South Australia for between $45 million and $50 million, in conjunction with farmer Danny Costello.

Encompassing four pastoral leases, Clifton Hills Station is thought to be the second largest station in Australia, with an area of 16,510 kilometres. At the time he purchased Clifton Hills, Mr Oldfield already owned the adjoining Pandie Pandie Station, and also has an interest in Anado, Horseshoe Bend and New Crown Stations, running a total of 50,000 head of cattle between his properties.

Hancock’s Northern Territory Stations Still for Sale

he remaining Hancock properties for sale are all located in the Northern Territory, including Aroona (147,500 hectares), Willeroo (171,600 hectares), with Riveren and Inverway located across 555,400 hectares of Victoria River Downs country.

Phoenix Park, located near Katherine, is operated as a feedlot and “large-scale export pre-feeding depot” with a license to handle 20,000 head of export cattle. Located just 340 kilometres from Darwin, the property has the capacity to turn off 45,000 head of cattle per year, supported by more than 3,000 hectares of irrigated fodder.

While the sale of the aggregation represents about 20% of Hancock’s 10 million hectares of grazing country, the company will still retain the crown as Australia’s largest land owner. Listing agents Elders Ltd said that the sale represented a “refinement of the overall portfolio following a period of value creation.”

The sale of all seven properties includes almost 110,000 head of cattle and will raise around $300 million.

Land Supply Tight as Farmers Battle FOMO

A bumper forecasted harvest, excellent growing conditions and low interest rates are increasing the demand on farmland, according to a report released by Rabobank.

The Agricultural Land Price Outlook reveals double-digit growth in the median value of farm land in all states except New South Wales and South Australia. Nationally, the value of farmland grew by 6.1% in 2020, to a median of $5,552 per hectares, with Tasmania enjoying an increase of 28.3% to $15,999 per hectare.

Victorian farms grew by 15.8% to $10,981, Queensland bumped up by 15% to $2,734 and Western Australian farms were worth 14.1% more than the previous year at $3,244 per hectare.

ABARES expects the gross value of agricultural products to reach $73 billion in 2021-22 – 8% up on last year’s $68billion record.

Sources: Hancock Prospecting , Queensland Country Life , Australian Financial Review , Clifton Hills Station , News
Image: “Tanami Track S35578” by yaruman5 is licensed under CC BY-NC-ND 2.0

Agricultural Machinery Sales Soar Amid “Perfect” Seasonal Conditions

Wed, 22 Sep 2021 09:17:39 GMT

Strong commodity prices, low interest rates, federal government tax incentives and excellent seasonal conditions have led to a surge in agricultural machinery sales around Australia.

Forecasts are predicting new and used sales of agricultural machinery will exceed $4 billion this year, a new national record for the sector.

The Commonwealth Bank has reported a 50% increase in machinery finance compared to the previous financial year, with the volume of finance for tractors up 41% and seeders up 72%.

Gary Northover, the executive director of the Tractor and Machinery Association, said, the sale of tractors was around 25-30% better than levels seen in previous good years.

“In terms of tractor sales, the average running rate over the last five years has been about 12,000 tractors per year. We are on about a 16,000 tractor per year pace right now,” he said.

Mr Northover said that one implement dealer reported a 100% increase in sales on the previous financial year.

“Since the pandemic broke and the government introduced its instant asset write-off scheme – that’s coincided with the best grain conditions and certainly the best prices and it’s a perfect storm.”

The trend is being echoed in Queensland where demand for trucks, vehicles, and motorbikes has seen a spike in sales.

“I’ve been out and about quite a bit recently on many properties and we’re certainly seeing a huge investment in upgrading water infrastructure, fencing, sheds, yards, even the houses are getting a renovation,” said Peta Ward, regional general manager of Westpac Agribusiness.

“Of course we’re also seeing the family farms, that are here for the long term, are looking at the neighbours or looking at buying more country.”

Ms Ward also said consumer confidence had extended to livestock, with significant interest in bull sales.

The record for Australia’s most expensive Angus bull has been set twice this year after Texas Iceman sold for $225,000 in July , before being beaten last month when Paratrooper R38 was sold for $280,000.

Service Labour Shortages a Concern for the Future

While the news of a buoyant machinery market is welcome, market expert Alan Kirsten said COVID-19 related delivery delays are an immediate issue for consumers and suppliers.

“Order books are full and there’s no sign of a decline in sales, but market share is being determined by what you can physically get hold of at the moment.”

During a recent presentation to machinery sales representatives, Mr Kirsten also highlighted the medium term issue of service and maintenance of equipment in a market that is already hampered by labour scarcity.

“That in itself is going to produce its own range of issues – not right now, but in three to five years’ time when we have to support and service the equipment that is going through now,” he said.

“We can’t find enough technicians and while [dealer networks] might be addressing this issue, it does not seem to be taken seriously by governments.”

“We need a lot of employment and to attract people to our industry, because supporting the equipment going forward is going to be the challenge.”

Mr Kirsten said that he expected the surge in sales to slow down by 2023.

Sources: ABC , Farm Weekly , Queensland Country Life
Image: “IMG_2012 (2400×1600)” by Chafer Machinery is licensed under CC BY 2.0

Twiggy Forrest Doubles Down to Block Huon Aquaculture Sale to JBS

Wed, 22 Sep 2021 09:10:36 GMT

Twiggy Forrest has doubled his efforts to block the sale of Huon Aquaculture to global meat giant JBS Meats , buying an additional 10 million shares in the Tasmanian-based business.

Through his private holding company, Tattarang, the Western Australian businessman bought enough shares to increase his voting power from 7.33% to 18.51% – enough to block JBS’ plans to acquire the fish processing business.

Mr Forrest initially bought into the company in June this year in support of Huon’s commitment to improving environmental sustainability. Now he believes that Brazilian-based JBS Meats company is trying to ride on the coattails of Huon’s improved sustainability practises.

“Huon have demonstrated they want to be leaders in the pursuit of sustainable salmon farming practises but my aspirations for this company are even greater. And there are a range of steps that can be taken by new ownership to achieve this,” he said.

“And then JBS, the largest animal protein company in the world, appeared,” Forrest said.

“I say to JBS, will you commit to make Huon environmentally neutral, to not rest until there is no fish in your fish meal? Will you commit to removing the environmental negatives which currently exist with salmon farming in Huon, to continue the journey of its founders?

“And even more importantly, JBS, will you commit to removing the pain and fear in all your beef processing operations?”

Call for Foreign Investment Review

Tasmanian environmentalists have called on federal treasurer Josh Frydenberg to use his foreign investment review powers to reject JBS’ takeover bid.

In August this year, JBS presented an acquisition plan to buy Huon Aquaculture for $425 million through a scheme of arrangement. Huon’s founders and major shareholders – Frances and Peter Bender – voted in favour of the sale, which was also endorsed by the board.

The Tasmanian Alliance for Marine Protection (Tamp) has written to Mr Frydenberg, citing JBS’ history of convictions for bribery in the US and the continued destruction of Amazonian rainforests to develop agricultural land.

JBS Meats was forced to pay US$128 million in penalties after pleading guilty to bribery charges in the US last year.

Two US Senators have moved to use foreign investment legislation to block potential American acquisitions by JBS and associated entities, including companies owned by brothers Wesley and Joesley Batista – the sons of founder Jose Batista Sobrinho.

Under scrutiny for its business practises and environmental sustainability, JBS Meats has pledged US$1 billion over the next ten years to cut carbon emissions and invest in traceability systems to track livestock through their value chain.

Tasmania’s salmon industry has also come under scrutiny since the release of a damning book published in April this year. Toxic: The Rotten Underbelly of the Tasmanian Salmon Industry by Richard Flanagan, took aim at the sector’s green-washing of unsustainable environmental practises.

As well as polluting Tasmanian waterways, the book highlighted the role the industry played in the clearing and burning of Amazon rainforests to make way for soy plantations.

Globally, the aquaculture industry is one of the fastest growing users of soybeans, with the FAO expecting the industry to grow to account for more than 60% of sales by 2030.

Sources: Food and Drink Business , Bloomberg , Australian Book Review , Grain
Image: “Salmon Farm” by rodc is licensed under CC BY-NC-ND 2.0

New Agriculture Visa Imminent

Wed, 22 Sep 2021 09:03:37 GMT

A new agricultural visa will be in place by the end of the month, providing the horticulture and agriculture industries with a much-needed solution to labour shortages. Members of the Liberal and National parties issued a joint media release announcing a new visa which will “build on the highly successful existing Pacific Schemes”.

Federal Agriculture Minister David Littleproud said that the new visa represented a “structural change to the agricultural workforce.”

“It gives our farmers the confidence to plant a crop and know that they’ll be able to get it into the supply chain,” he said. “It will complement the Pacific programs we have got in place but also provide a pathway to permanent residency.”

Mr Littleproud had previously called for the new visa to replace the British backpacker visa scheme which was scrapped in the recent UK-Australia Free Trade Agreements . Previously, 10,000 British backpackers worked in seasonal agriculture roles, representing almost a quarter of the backpacker farm workforce.

While the government has yet to provide details on the visa, it is believed that the scheme will offer participants a pathway to residency. The visa will be available to workers in agriculture (including meat processing), fisheries and forestry.

Mr Littleproud has previously confirmed that the visa would be available to the Association of South-East Asian Nations (ASEAN) which includes Indonesia, Myanmar, Vietnam, Singapore, the Philippines, Malaysia, Thailand, Laos, Brunei, and Cambodia.

Devil in the Detail

With no firm details about the visas – and a looming deadline for the launch of the scheme – many industry stakeholders remain sceptical about the potential for the program to effectively meet agriculture’s labour needs.

“We are yet to see the details, but we are pushing the government to finalise this visa”, said Fiona Simson, president of the National Farmers Federation (NFF).

“The details still have to be worked out, I believe it still has to be finalised in Cabinet and by the expenditure review committee,” she added.

“We have to do this, this is a critical thing for agriculture.”

Ms Simson reiterated the need to correct the labour shortages left by UK visa holders.

“Hopefully that will more than make up for the 10,000 British backpackers that we will ultimately lose with this 88 days [requirement scrapped in the UK FTA],” Ms Simson said.

“We were very surprised to lose the 88 days … This is the time for the government to actually deliver. We’ve had these discussions, we’ve had these promises for many years now; this is the time to make good on those promises.”

Sources: ABC , Minister for Foreign Affairs , ABC

Australian Grain Growth to Come from Yield, not Acreage

Wed, 22 Sep 2021 08:58:03 GMT

While the amount of available land for annual cropping has reached its likely potential, the Australian grains industry is confident that yield increases will continue to drive production growth.

Nationally, 23 million hectares of Australian land is planted with annual crops, a figure which is unlikely to grow significantly.

But with the average Australian cropper growing around 55% of their potential yield, researchers are confident that improving actual lead will allow the industry to continue growing.

Dr Zvi Hochman, CSIRO’s chief research scientist, said that some progressive farmers grow crops reaching up to 75-80% of their maximum potential.

“You’re never going to get that figure up to near 100pc in the long-term, there are always unexpected things that occur, whether it’s frost or waterlogging or disease, but this would be a good figure to aim for.”

While improved farming methods are driving yield grains in many areas, the effects of climate change are hampering others.

“We’ve been making improvements in percentage terms of around 1pc a year, but given seasonal rain is declining and temperatures are warming through much of our cropping belt in low and medium rainfall zones that top potential yield is coming back,” said Dr Hochman.

Associate Professor James Hunt from La Trobe University said that while climate change had adversely affected the performance of grains in some areas, improvements in farming practises have resulted in better resource efficiencies.

“Climate change has eroded yield gains since the 1990s, the yields have stagnated over that period, dragged down by the big droughts,” he said.

“What we have seen, however, is that when we get the right conditions we can do a great job, especially compared with what used to be grown with equivalent rainfall.”

“Based on a water use efficiency basis we are doing better than ever.”

Future Grain Growth to Come from Technology

Future improvements in yield will likely come from advances in technology and research , according to Dr Hochman.

Better understanding and implementation of existing knowledge is a key method in closing the yield gap, while future breakthroughs will also play a significant role.

Dr Hochman said that practises such as the use of dual purpose cultivars would help marginal areas to manage risk.

“Having a crop that can also be cut for hay if the season comes in dry is a great way to manage production risk. Croppers have already adapted more drought tolerant varieties such as barley and in the summer cropping regions sorghum, so they are actively managing that risk.”

Similarly, those in high rainfall zones are strategically using crops to help manage excess moisture.

Farmer Neil Vallance from Lake Bolac in Victoria said that long season varieties provided a sound approach for his wetter country.

“We bought a farm to the south of us at Mortlake last year and we’ve found it gets very wet, we plan to use it more for pasture and livestock.”

“Dual purpose grain and graze canola is fantastic, this year the canola did a great job in drying out the profile and it tolerated the wet autumn much better, so that might mean a few more marginal paddocks can be cropped.”

Sources: Farm Online , Farm Online
Image: “Canola cultivation, Binalong, NSW.” by jemasmith is licensed under CC BY 2.0

Texas Iceman Breaks Australian Record for the Most Expensive Angus Bull

Wed, 11 Aug 2021 09:33:28 GMT

A stud in Northern New South Wales has set a new Australian record after selling a prized Angus bull, Texas Iceman R725, for an eye watering $225,000.

The bull was sold by the Mayne Family at Texas Angus stud, and purchased by Macka’s Angus in conjunction with Genetics Australia who will market semen globally.

Macka’s Angus run 3,500 commercial breeders, 150 stud cows and 140 donor cows across properties in the lower Hunter and Gloucester districts in New South Wales with a focus on producing branded, retail-ready cuts with a strong emphasis on traceability and Angus verification.

The business was attracted to the bull given his pedigree’s performance traits, particularly from the Undine line on the maternal side.

“Phenotypically this bull fits into our program. He has structural soundness, length and depth, has a moderate frame and has great carcase attributes. We will market his semen straws all over the world and see where this takes us,” said Jack McKenzie.

The bull’s impressive statistics include a weight of 730 kilograms at 16 months old with an average daily gain of 1.45 kilograms. Eleven estimated breeding values (EBVs) rated in the top 10% or above for the Angus cattle, most notably for the domestic index, heavy grass index and 400 day weight.

In addition to strong maternal traits, Texas Iceman R725 was sired by record breaker Poss Maverick, ranked in the top 1% of Angus cattle.

Macka’s Angus also bought Texas Beast Mode Q377 for $32,000 while the second top-priced bull, Texas Quality Time Q549, sold for $58,000 to Little Meadows Angus in Dardanup, Western Australia.

Iceman’s full brother, Texas Top Gun R66 sold for $55,000 each, with the sale grossing $3.795 million for a 100% clearance rate and a record $20,967 average price per bull.

World’s Most Expensive Angus Bull

Schaff Angus Valley America holds the world record as the most expensive Angus sire, netting his breeders a cool US$1.51 million in 2019.

He was purchased by Herbster Angus Farms, Nebraska with strong performance indicators from a young age. America ranked in the top percentile for weaning weight, yearling weight and carcass weight.

The sale book described the bull as having “true herd bull authority – long bodied, thick, square hipped, deep and massive with a sound structure, large scrotal and gentle disposition.”

Poshspice Takes the Crown

The world’s most expensive cow was sold in the UK earlier this year for AUD$500,000, double the previous record for the Limousin breed.

Wilodge Poshspice, described as “shapely and stylish” was bred from Millbrook Gingerspice, herself a supreme champion cow having won the Balmoral Show three times in a row.

Wilodge sold an additional six heifers for between GBP10,000 and GBP 25,000, but it was the sale of Poshspice that her breeder described as “mind-blowing and surreal”.

“We never ever expected her to make that much in our wildest dreams,” she said. “We are overwhelmed and equally delighted to have achieved this fantastic result,” said stud principal Caroline Williams.

Responding to queries about the cow’s name, Ms Williams explained that the cow’s mother was also named after a Spice Girl and that Poshspice was not an indication of her temperament.

“She wasn’t moody or anything like that.”

Sources: RFDTV , The Independent , The Land
Image:

Power for the People: A New Source of Biofuel from Chocolate Waste

Wed, 11 Aug 2021 09:24:42 GMT

A new biofueled power plant in the Ivory Coast is set to improve the profitability of cocoa farming, while also increasing the amount of electricity generated from renewable energy sources.

The new power plant will be the biggest in West Africa with the capacity to deliver between 46-70 megawatts of power per year while reducing the greenhouse gas emissions by 4.5 million tonnes.

“This plant alone will be able to meet the electricity needs of 1.7 million people,” said Yapi Ogou, managing director of the Ivorian company Société des Energies Nouvelles (Soden), a stakeholder in the development of the plant.

What makes the project unique is that the power plant will be entirely fuelled by the waste products generated by cocoa farmers and, as the largest producer of cocoa in the wold, the Ivory Coast has an abundant supply.

Locally, more than 6 million people are employed in the cocoa industry. The Ivory Coast produces more than 40% of the world’s cocoa beans and, by association, a significant amount of waste products including shells, husks and “sweatings” – a liquid produced during the fermentation process.

A number of small, pilot projects have investigated the potential to generate electricity by burning the cocoa waste to turn a turbine. The culmination of this work is the development of the Divo biomass power plant which is being funded partly with money from the US Government.

Alongside the development of a new, renewable form of energy, the project also provides a lifeline to the nation’s cocoa growers who are suffering a period of low returns. Recent years have seen a global oversupply of cocoa, and low profit margins have been exacerbated during COVID-19 lockdowns.

“I grow cocoa and it has educated my children but the returns have been minimal,” said Fraciah, a cocoa farmer near Divo, “we don’t make much profit.”

For Fraciah, who farms around 15 acres of cocoa, the development of a new income stream will be a welcome change.

“Considering I am a widow – my husband died 18 years ago – extra income will also help me educate my four grandchildren. With more money, I can also save.”

The development of a new industry will also provide jobs and economic opportunities for those outside the agricultural value chain, which comes just at the right time for the Ivory Coast.

“Successful utilisation of these cocoa pods will not only ensure universal access to electricity, but also add value to the cocoa production value chain, in addition to other economic benefits,” said Mohammed Adow who provides advice on energy issues to African governments.

“Job creation through collection, transportation, storage and processing of the pods will be realised. It will empower many economically.”

The Ivory Coast currently generates around 70% of its energy from natural gas. National targets are aiming to increase the use of renewable sources to 42% by 2030, while reducing greenhouse gas emissions by 28%.

Sources: BBC
Image: “COCOA PLAN” by Nestlé is licensed under CC BY-NC-ND 2.0

China’s Tariffs Impact Export Sales but UK Growth Buffers Losses

Wed, 04 Aug 2021 09:50:03 GMT

The full force of China’s trade tariffs have been realised by the Australian wine industry which announced a $477 million hit in the six months to June 30. Figures released earlier this month by Wine Australia show that exports to China dropped to just $13 million for the half year period, compared with $490 million for the same timeframe in 2020.

Overall, total wine exports from Australia dropped by 10% in the 2020-2021 financial year to $2.56 billion, while the UK has seen a jump in Australian wine sales , increasing by 23% to $472 million. The long term lockdown has seen UK consumers move to online purchasing and at home consumption, with Australian wined favoured for its value-for-money.

According to Wine Australia, wine exports to the UK were the highest in a decade with market growth at 40% in the six months to December last year. Growth mellowed after Christmas, averaging 9% growth between January and June 2021.

Treasury Wine Estates Resilient Amid Tariffs

Treasury Wine Estates has shown its resilience despite being hit with a 175.6% tariff from the Chinese last year . The announcement saw the company’s share price drop to $8.59 after investors grew concerned about the impact of the tariffs given 30% of TWE revenue comes from China.

The tariff announcement was met by determined chief executive Tim Ford who pivoted the company strategy away from the Chinese market. Around 60 China-based employees were made redundant, with a new sales and marketing strategy focussed on other Asian countries, Europe the US and Australia.

Better than expected financial performance has helped the share price to bounce back this year after TWE announced a 33% increase in second half EBIT. The share price has risen steadily since the May announcement, climbing to a high of $12.28 in June before settling at just under $12 at the end of July.

Naked Wines Offers Lifeline to Small Growers

Online wine retailer Naked Wines has announced the first benefactors of their $5 million Stop the Squeeze fund, developed to help Australian winemakers buffer the losses of the Chinese market.

Eleven labels including Tomich Wines, Two Pairs and The Engine Room have been provided capital to help develop a more sustainable business model.

Among the benefactors, Pyren Vineyard has used the funding to help achieve organic certification and become carbon net zero by the end of 2021.

“We’ve been really fortunate to be working with Naked and seeing our wines continue to be placed in domestic markets, but the funding from the Stop The Squeeze rescue fund has meant that rather than hit pause, we’ve been able to go forward on a range of critical projects for the future sustainability and stability of our business,” said Pyren Vineyards winemaker Leighton Joy.

“When China announced the tariffs would be here for five years it forced our business and the wider industry to take a reality check, and because of the instability in the market we went back to square one with what the future might look like,” Joy said.

Labels funded under the Stop the Squeeze campaign are available through Naked Wines until the end of October.

Sources: ABC , Food Processing , Food & Drink Business , Financial Review, Fool , ABC , InDaily
Image: “Pinot Grigio prior to harvest, vintage 2012” by stefano lubiana wines is licensed under CC BY 2.0

Eucalyptus Trees a Sustainability Boost for Brazil’s Beef Sector

Wed, 04 Aug 2021 09:43:40 GMT

Eucalyptus trees could become a common site in the paddocks of Brazilian cattle farms, as the industry strives to become a carbon-neutral industry.

Booming Brazilian Beef Sector

The booming beef industry has made Brazil a dominant player on the global stage. The country has quickly risen to become the largest exporter of beef, contributing around 20% of the world’s exports. Driven by Brazil’s increasingly lucrative relationship with China, the last 15 years have seen the South American country move from being a net importer of food to the third largest exporter of food in the world.

Such development has required a rapidly increasing amount of available farm land, which has quickly accelerated the rate at which Amazonian forests have been cleared. A third of the world’s tropical deforestation for commercial use is attributed to Brazil, and cattle farming represents the lion’s share of the use of reclaimed land.

In addition to issues surrounding the production of methane by cattle – each animal emits around 70-120 kilograms of methane annually – deforestation for grazing contributes 6% of the world’s greenhouse gas emissions. Methane is also emitted by bare soils, while forest losses reduce biodiversity and increase the risk of the transmission of new diseases to humans.

Eucalyptus to the Rescue

While farmers could purchase offset credits to counteract their emissions, the Brazilian Agricultural Research Corporation (Embrapa) is pushing the industry to achieve carbon neutrality at a farm level. In addition to making the industry more sustainable, Embrapa is focussed on the industry achieving carbon neutrality as a key marketing feature.

At a farm-level, a cornerstone of Embrapa’s approach is the planting of Eucalyptus trees on cattle farms where native forests were cleared for commercial use. Researchers found that planting trees at a density of around 250-350 per hectare produced 25 cubic metres of wood per year in addition to sequestering up to five tonnes of carbon – the equivalent to 12 fully grown cows.

Roberto Giolo de Almedia, a lead researcher with Embrapa, said that the integration of Eucalyptus trees also increased stocking densities by up to 100%. Pastures shaded by trees performed better and offer more nutrition to grazing cattle. De Almedia’s team found that shade also benefitted livestock by providing relief from intense afternoon sun, with the study showing that cattle raised in tree-dotted pastures reached their goal weights around 30% quicker than those without shade.

While the development of a more sustainable agricultural industry is good news for Brazil, many argue that ending deforestation is the ultimate goal. Richard Eckard, professor of sustainable agriculture at the University of Melbourne, says that the Brazilian government will need to intervene in order to put a stop to further land clearing.

“In the end it all comes back to government policy,” he said.

“The only reason the Australian government achieved its Kyoto protocol targets was because they legislated against deforestation in Queensland. It requires leadership from government.”

Sources: DialogoChino , BBC
Image: “eucalyptus tree” by alex1derr is licensed under CC BY-NC-SA 2.0

AUS UK FTA Could Add $1.3B Annually to Australian Economy

Wed, 30 Jun 2021 10:16:25 GMT

Australia is one step closer to strengthening trade ties with the United Kingdom after it was announced that an in-principle free-trade agreement was reached earlier this month.

Higher commodity quotas, the phased removal of trade tariffs on agricultural produce, a relaxation of visa requirements and better recognition of professional qualifications are thought to be the main terms of the agreement, although the finer details have yet to be agreed upon.

The agreement would allow 35,000 tonnes of Australian beef to be imported to the UK annually before tariffs would be applied, increasing to 110,000 tonnes over ten years. Sheep meat tariffs would end after ten years with an initial duty-free quote of 25,000 tonnes in the first year, increasing by 65,000 tonnes each year thereafter. An initial duty-free quota of 80,000 tonnes would apply to Australian exports of sugar, rising by 20,000 tonnes per year for eight years.

Dairy tariffs will expire over five years, with an initial duty-free quota of 24,000 tonnes cheese, increasing to 48,000 tonnes per year. Other dairy products will attract an immediate duty-free quote of 20,000 tonnes annually. It is believed that rice will also attract an immediate duty-free access.

NFF Perspective

National Farmers’ Federation president Fiona Simson said that the deal heralded a new era in the relationship between Australia and the UK.

“We applaud Trade Minister Dan Tehan and our negotiating team on an improved set of market access outcomes. The UK deal will create new opportunities for Australian farmers as we work towards growing industry output to $100 billion by 2030.”

Ms Simson also used the announcement to reiterate calls for the creation of a dedicated agriculture visa.

“Given the acute labour shortfalls already wreaking havoc across our industry, any good work achieved by the in-principle agreement on trade will be undone if the Government continues to delay the implementation of a dedicated Ag Visa. Taking away a source of farm labour now could be a devastating blow for Australian farmers, in an environment of existing shortage.”

“The Ag Visa must not only make up for the shortfall in backpacker farm labour, but address the growing shortage of farm workers. The NFF will need to see more detail on how an AgVisa and the flagged agribusiness visa will work, and when, because we have heard this one before.”

UK Government Quells Farmer Concerns

The UK’s trade secretary, Liz Truss, moved to reassure British farmers that the new trade deal would not harm their businesses in an interview last week.

“At the moment, there are extremely small quantities of Australian beef coming into the UKL.

“So what we’d be looking at here is over time some of the EU imports [lost due to Brexit] being replaced by Australian imports.”

For the UK, the trade deal is seen as being a move towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which, as Ms Tuss affirmed, would have benefits for British producers.

“We can see the evidence, that sales of British beef are growing to places like Asia-Pacific and the United States because people want to buy high quality British products produces in a high animal welfare way.”

Sources: Sydney Morning Herald , National Farmers Federation , BBC

Hands-Free Farming to Showcase the Future of Agriculture

Wed, 30 Jun 2021 10:09:45 GMT

A bold new project will combine technologies including autonomous vehicles, drones, sensors, data analytics, geospatial mapping and remote sensing to create Australia’s first fully automated farm.

At a cost of $20 million, the Global Digital Farm will be established at the AgriPark at Charles Sturt University’s Wagga Wagga campus across 1,900 hectares, operated entirely without hands-on human labour. Currently, the farm is operated commercially, growing a range of broadacre crops including, wheat, canola and barley, alongside a vineyard, and cattle and sheep enterprises.

The development of the property into a fully automated operation will include the use of a variety of technologies to demonstrate their potential to the wider community including fully autonomous machinery such as tractors, harvesters, survey equipment and drones. Farm operations will be streamlined using artificial intelligence to better inform decision making, while state of the art cyber security will protect the farm from emerging cyber threats. Sensing technologies will be used to enhance the performance of plants, soils and animals.

Carbon Farming and Sustainability in Focus

In addition to developing best practise models for the various technologies involved in the Global Digital Farm, the Food Agility CRC and Charles Sturt University will be using the opportunity to develop their understanding of carbon management and evidence based sustainability practices.

Charles Sturt University Professor of Food Sustainability Niall Blair said that the farm will act as a combined commercial operation, educational campus and extension facility.

“This ambitious and unique project will arm Australia’s primary industries workforce with knowledge and technology in crucial fields like data analytics, geospatial mapping, remote sensing, machine learning and cybersecurity,” he said.

“The Global Digital Farm will utilise Charles Sturt University’s world-class research and development capability in the agriculture space to help ensure the next generation of Australia’s farmers are at the forefront of innovation and efficiencies.

Automated Farming Closer than We Think

Food Agility CEO Richard Norton said that the commercial application of hands-free farming is closer than many realise, with the purpose of the Global Digital Farm to accelerate real-world adoption.

“Full automation is not a distant concept, we already have mines in the Pilbara operated entirely through automation,” he said.

“It won’t be too many years before technology will take farmers out of the field and immerse them in the world of robotics, automation and artificial intelligence.

“Food Agility, Charles Sturt University and the Riverina will be at the forefront of that transformation in Australia courtesy of the Global Digital Farm.”

Sources: Food Agility CRC , ABC

Cyber Hacking of JBS Meats Highlights Supply Chain Vulnerabilities

Wed, 30 Jun 2021 10:02:04 GMT

Global meat supplies have been largely undisrupted despite a major cyber-attack on JBS meats earlier this month.

The world’s largest meat supplier was forced to shut down meat processing operations across the world, including North America and 47 locations in Australia, after hackers took over JBS Meat’s computer network, demanding a ransom in return for restored access.

According to agriculture minister David Littleproud, the attack affected the system used by JBS to manage quality assurance standards of processed meats, causing the company to suspend production until the software was restored.

Initial concerns about the shortage of meats had been contained by JBS who said that stock on hand would be able to manage the requirements of their US market. The Australian Meat Industry Council (AMIC) said that it was highly unlikely that the domestic supply chain would be affected.

“The Australian meat industry has systems in place across the supply chain to deal with these types of issues, including managing livestock through the system effectively and access to cold storage for meat supply,” said Patrick Hutchinson, chief executive of AMIC.

“The strength and flexibility of the red meat and pork products supply chain has been demonstrated in the past on market access issues and Covid-19 impacts. That is why we are world-renowned as the most reliable meat supply chain globally.”

Tracking the Hackers

While the company worked to get their systems back online, American, Canadian and Australian authorities worked to determine the legitimacy of JBS’ claims that the hackers were members of a Russian criminal gang.

“The White House is engaging directly with the Russian government on this matter and delivering the messages that responsible states do not harbour ransomware criminals,” said White House spokeswoman Karina Jean-Pierre.

Since then, the FBI has named Russian gang REvil – also known as Sodinokibi – as the group responsible for the cyberattack.

While JBS operations were back online within days, the hack has highlighted the potential damage cyberattacks can have on agricultural supply chains, global food supply and pricing.

“JBS are a significant global and local player in the meat processing space, so if the effects of the attack are extended it could become problematic,” said Matt Dalgleish, manager of commodity market insights at Thomas Elder Markets.

Australian Operations

As the major exporter of Australian beef and sheep meat products, interruptions to JBS’ supply continuity could have a significant impact on domestic revenue and trade relationships.

Mr Dalgliesh said that while other Australian meat processors could ramp up production to fill the gap, longer term supply chain issues could cause a 5-10 per cent rise in the price of supermarket meat.

JBS’ Dinmore facility in Queensland is the largest beef processing facility in the Southern Hemisphere and the company employs 11,000 workers in Australia and New Zealand alone.

Revenue from their Australian and New Zealand operations make up just 4 per cent of their global revenue.

Sources: BBC , 9 News , The Guardian

Shining Lights: Canola and Cotton offer a Promising Season

Wed, 30 Jun 2021 09:55:43 GMT

Australian farmers have sown a record 2.9 million hectares of canola mid optimism about pricing and early rainfall events. On the back of a global shortage of oilseeds, farmers are hedging their bets with Western Australian growers committing to grow canola on across 1.5 million hectares.

The increase in plantings and records prices could see the Australian economy net $2 billion at harvest time.

“In in 2006 – 07 the price was around $667 per tonne, it peaked at that, in today’s dollar terms that’s about 854, so it’s just under that,” said Michael Lamond, the author of a recent report for the Grains Industry Association of Western Australia.

“So it’s the prices we are getting for canola at the moment are the second highest ever on record and that has fuelled the extra canola area that has gone in,” he added.

“[Western Australian growers] have had a an early break with subsoil moisture, and when you have that you have a lot of confidence in that the outcome will be that your yields will be above average.”

Good Pickings for Cotton Growers

Good opening rains across the country have benefited many agricultural sectors with cotton growers also likely to experience a record 2021 harvest.

This year’s national cotton crop is set to be worth $1.5 billion, a relief for many farmers recovering from drought and the effects of other natural disasters. In 2020, the national cotton crop was just 600,000 bales – a 40-year-low.

Stuart Armitage, a farmer from Cecil Plains in Southern Queensland, said the improvement in conditions was a welcome relief for growers who have suffered through a prolonged drought.

“You’ll see the Darling Downs has its biggest cotton year for quite a number of years and even Australia-wide it’s going to be one of the biggest,” Mr Armitage said.

“It’s going to be a big season around here. Most people you talk to are going to be increasing their acreage by 50 to 100 per cent and some could be 200 to 300 per cent. So next cotton season is going to be a big one.”

No Aussie Cotton for China

While many cotton growers breathe a sigh of relief, market access is still an issue requiring attention amid declining relationships between Australia and China.

The Chinese market was once worth $800 million a year in Australian cotton sales alone. This year, China has banned Chinese mills from buying Australian cotton altogether.

“[Chinese mills] were contacted by Chinese government officials and told if they purchased Australian cotton they’d be penalised … in the form of not receiving tariff-free quota the next season. So it’s a strong disincentive,” said Adam Kay, chief executive of Cotton Australia.

“China did take 70 per cent of our crop but there are other markets there and those cotton shippers are working very hard on developing new markets and increasing existing markets.”

Mr Kay noted that the industry needed to work on diversifying trade partnerships in order to mitigate potential losses from the closure of China.

“(They’re looking at) places like Vietnam, Bangladesh, Indonesia, Thailand, South Korea, and working really hard on getting that crop in there, trying to displace cotton (purchases) from our competitors like the US and Brazil.”

The global price for cotton remains positive at around $550 a bale, but a record harvest will increase the need to secure new markets as supply levels return to normal.

Sources: ABC , ABC
Image: “Canola Fields – Wollogorang NSW” by sachman75 is licensed under CC BY-NC-ND 2.0

Mice Plague Continues as Farmers Look to Winter for Relief

Fri, 30 Apr 2021 11:19:28 GMT

Farmers across New South Wales and Queensland, as well as parts of Victoria and South Australia continue to battle mice plagues of once-in-a-lifetime proportions.

As many growers look to sowing winter crops, trying to get a handle on mice populations is an unwelcomed distraction.

On a University of Sydney research farm at Narrabri in New South Wales, Manager Guy Roth calculates a staggering figure.

“I know we had two mice per square meter in our cropping paddocks at the peak … [so] if I have the math right, it’s 20 million mice. That’s more mice than the population of most big cities,” he said.

Mr Roth said that he and his family were catching around 100 mice each day, just from their house and offices.

“They’re all around the house. Every time you open a drawer, you’re potentially going to find one,” he said. “You’ll be sitting at the desk and a mouse will run across it.”

According to CSIRO researcher Steve Henry, mice infestations are causing some farmers to abandon summer cropping programs altogether.

“Some farmers are giving up on summer crops … because the mice have damaged them so severely, so that’s essentially a total crop loss,” he said. “And in some scenarios where farmers have managed to get the crops through to harvest, they’ve had it rejected because it’s full of mouse poo.”

“We’ve had a run of dry years and [now] the drought has essentially broken, so the mice get switched on to that change in environmental conditions, and they start to breed. The farmers have had a good crop and that puts a lot of food into the system. So you’ve got favourable climatic conditions, favourable food in the system, lots of good shelter, lots of moisture.”

While the first cold days of winter will slow mice down, Mr Henry said that farmers shouldn’t rely on the weather alone.

“We hear about rainfall events ending outbreaks, big frosts ending outbreaks, but that probably doesn’t hold [true],” he said.

“Mice are digging quite extensive burrow networks out in paddocks and it’s pretty easy for them to get away from those nasty climatic conditions and continue to thrive if there’s plenty of food in the system.

“What will happen during the winter is that breeding will slow down … and mice go into self-preservation mode to get through winter so they’re still there in spring.”

Julian Cross from Kumbia in Queensland said that the mice problem has worsened since Easter.

“We’ve had a few in the past but never to this extent and it’s ongoing,” he said.

“They just bar into the cobs and chew on the corn and on the mung beans — they nibble at the pods and the pod dies.

“Like cockatoos, they only take a bite out of each one so 90 per cent of it gets wasted anyway.”

Earlier this week, the Government granted farmers permission to use a bait double the strength of normal poison.

In New South Wales, farmers have joined forces with the Country Womens’ Association to call for a $25,000 package to be provided to agricultural businesses fighting the plague.

Sources: NBC News , ABC , The Guardian
Image: “Image of the mice plagues” by Public Record Office Victoria is licensed under CC BY-NC 2.0

Automation Driving Sustainability and Productivity for the Red Meat Industry

Fri, 30 Apr 2021 10:32:38 GMT

As the popularity of Australian red-meat has increased over the past decades, the supply chain has been challenged to adapt and innovate in order to maintain the throughput required by customers – both domestic and international.

Other challenges for the industry include a shortage of labour and a more recent focus on achieving a carbon neutral food red meat supply chain by 2030. Added to the mix, many medium-sized abattoirs have aging plant and machinery which needs to be upgraded in order to maintain or exceed current production levels.

According to Ross Derbyshire of engineering consultancy Beca Australia, these factors are at the front of mind for the industry when considering what technology could be used to drive productivity while also reducing its carbon footprint.

“The industry is looking at smarter ways to produce power. This includes solar farms and producing biogas off their waste and other materials for reuse to generate power,” he said.

“Boilers are being changed to biogas coming from onsite treatment ponds. Capture and reuse of this biogas is offsetting use coal-fired boilers.”

A reduction in energy consumption comes with a quick return on investment, with the use of artificial intelligence of particular benefit in refrigeration. Renewables and biogas present a longer term payback term.

“Typically, meat industry plants are of medium scale and can be challenging in terms of energy offset capital investments,” said Rhys Davies, Beca Australia’s business director.

As a vast country, gains from improving efficiencies in refrigeration represent a significant opportunity for the Australian red-meat industry. Rather than the movement of different formats of meat – carcasses, large cuts and smaller goods – the industry has focused on store-ready cartons packed with goods that are consumer-ready.

“This change, together with aggregation of manufacturing plants, has allowed enormous improvement in the efficiency of cold storage, handling and automation.”

And its automation that has the potential to be one of the biggest efficiency drivers for the industry.

While the production of meat will always have a labour intensive component – particularly at the carcass processing end – automation will streamline other processes, particularly logistics.

“In the old days meat was once put into a 24 kilo carton, and handled three or four times before it got to the end user. Now it won’t be touched once because it is fully automated,” said Darbyshire.

“The labour at the back end has been replaced by robots and is fully automated racking.”

While investment in automation is significant, energy efficiency gains, production gains and a reduction in labour costs make the expense worthwhile.

“The larger operations are investing in automating the meat carton in terms of handling, assembling and cold storing ready for despatch for exportation overseas,” said Davies.

“You need the volume to support that investment, but once you are there, you are efficient, and have enhanced your national and global competitiveness. You know where stock is, coding out is minimised, and you are maximising shelf life.”

“The reality is having made the investment in automation, it’s harder for others to catch up.”

Sources: Food Magazine
Image: “File:Live export – cows from australia in Zofar quarantine in Israel.jpg” by Anat Refuah is licensed under CC BY-SA 4.0

Australia Vulnerable to African Swine Flu, NFF Warns

Fri, 30 Apr 2021 10:24:11 GMT

The National Farmers’ Federation has renewed calls for tighter biosecurity systems, amid the interception of parcels containing pork products contaminated with African Swine Flu and Foot and Mouth disease.

“Fortunately, in this instance the offending products were detected at the border, however all it takes is one missed parcel to put the productivity, profitability and ultimately market access of Australia farmers at serious risk,” said NFF Chief Executive Tony Mahar.

Mr Mahar said that the detection of the two diseases showed how exposed Australia is to a biosecurity breach and highlighted biosecurity systems as underfunded and outdated.

“The importation of new pests and diseases has the potential to bring many agricultural industries to their knees, not only hurting farmers and communities but the economy as a whole.

“Biosecurity is key to controlling domestic weeds and pests and crucially, maintaining and expanding our export markets.

“The cost of a single outbreak of disease or pest has been conservatively estimated to exceed $50 billion.”

In 2020, the Biosecurity Levy Steering Committees recommendation of a biosecurity imports levy was ignored by the Government.

“The commitment would ensure adequate long-term funding for the national biosecurity system, targeting risk-creating activities and communication to give our trading partners confidence in Australia’s pest and disease-free status.

“The ongoing COVID-19 pandemic has demonstrated the wrecking ball effects a biosecurity outbreak can have.”

Feral Pigs a Domestic Headache

For some Australian farmers, pigs are already causing grief.

While the National Feral Pig Action plan is still being finalised, an estimated 23 million feral pigs are costing Australian agriculture more than $100 million a year.

In Queensland, one of the states most affected by feral pigs, one farmer wages a nightly battle to reduce the number of pigs on his farm, observing groups of up to 30 pigs on his land.

“Sometimes I’m sure they knock down 10 tonne a night of cane and last year I lost around 5 tonnes of soya beans which is $4,000 worth,” said Lester Cronau.

Mr Cronau has started to pig-proof his property with fencing including a double strand of barbed wire.

“I’ve only done 800 metres … it’s helped but the whole place needs a fence around it,” he said.

“The issue with that is the creek – fencing along that is an issue because if you get floods it’ll just knock it down.”

At Maryborough just south of Hervey Bay, cane farmer Norm Muller has culled 250 pigs on his property, reducing the population for now.

Mr Muller said that the damage caused by pigs extended beyond his crops.

“It’s the mess they make when they dig for grubs underneath the trash and some of the holes can be 2 or 3 feet deep.”

“You’re running through there with machinery and the next thing you’re free falling into these holes. It’s dangerous for people working.”

One pig trapper said the feral pig problem had increased over the last 20 years with significant damage to cane and macadamia crops.

“What they do in the cane and macadamias – it’s quite disturbing on a big scale.

“Thousands of dollars just gone, probably even hundreds of thousands in just this area [Fraser Coast] alone.”

In this week’s budget, the government has announced a $371 million biosecurity package, including $59 million towards swine flu prevention and a $67 million surveillance and response program.

Sources: ABC , Post Online
Image: “Anna Phosa’s Piggery Business” by USAID Southern Africa is licensed under CC BY-NC 2.0

Nanotechnology: The Next Step for Precision Agriculture

Fri, 30 Apr 2021 07:10:36 GMT

What do chemical weapons, sun screen, tennis balls and chewable dog wormers have in common?

They’re all examples of products developed with the use of nanotechnology – the manipulation of incredibly small particles (less than 100 nanometres) with the aim of improving the properties of objects – from textiles to computers and pharmaceutical drugs.

Revered as one of the most exciting branches of science today, Nanotechnology has been used across a range of applications – making tennis balls last longer, increasing the stickiness of sticky tape and targeting drug delivery to certain parts of the human body.

More recent attention has been examining the potential that nanotechnology could offer agriculture as the industry seeks to continue productivity gains while also becoming more sustainable. The innate precision of nanotechnology provides agriculture with something it desperately needs – the ability to do more with less.

Nanotechnology In-Crop

Canadian start up Vive Crop Protection developed Allosperse – a patented polymer “shuttle” to carry active ingredients to target sites. Vive has combined Allosphere with widely-used pesticides such as azoxystrobin and abamectin, offering better efficacy through targeted applications as well as a reduction in the amount of chemical required.

Another benefit to this use of nanotechnology is its ability to be combined with other chemicals at the time of application. Launched in 2016, Vive’s Azteroid is a fungicide used to control a range of diseases in lucerne, corn, cotton, beans, potatoes, soybeans and sugarbeet, and can be deployed with liquid fertiliser without any loss of performance to either input.

Nanomedicine

Given nanotechnology’s existing use in medical developments, it has a natural fit for the animal health sector. The use of anti-microbial agents is a common use of nanotechnology in human-grade medical products and can be easily transferred to animal health scenarios.

As well as treating wounds before they become infected, nanotechnology could easily offer alternatives to antibiotics, reducing the rates of resistance. Targeted drug delivery has the potential to further improve drug efficacy rates, while experts have also cited nanotechnology for its ability in diagnosis, growth and production gains – all good news for livestock owners.

The potential of nanotechnology in agriculture is even more exciting because it doesn’t require any new equipment to deploy. In-crop products can be used with existing machinery and their ability to be applied with other chemicals makes them a highly efficient option considering the labour, diesel and water costs involved.

Other applications include the development of new food packaging, designed to protect food items from physical damage and UV exposure. Smart packaging offers the potential to extend the shelf life of food while protecting its nutritive value.

Initial consumer feedback has been hesitant about the use of nanoparticles at the retail end of the value chain, requiring the industry to think strategically about ways to manage consumer attitudes towards such technology.

Sources: Global News Wire , Vive Crop Protection , The Conversation , Intech Open
Image: “dairy cows” by pascalk is licensed under CC BY-NC-SA 2.0

Global Agribrands Eye Off Australia for Expansion Plans

Mon, 29 Mar 2021 11:36:06 GMT

Global Agribrands Minerva Foods and SALIC have announced the signing of a memorandum of understanding to establish new agricultural operations in Australia.

SALIC – the Saudi Arabian government’s agricultural fund – currently owns 211,000 hectares in Australia of which 158,000 hectares are arable and 90,000 hectares are currently being cropped. Merredin Farms, located in Western Australia also houses SALIC’s flock of 40,000 Merino sheep.

Brazilian meatpacker Minerva Foods is a dominant player in the supply of meat to the Middle East and Asia, markets which represented 60% of global meat exports in 2020. Between January and September in the same year, 55% of Minerva Food’s exports were destined for Middle Eastern and Asian countries.

The deal will allow SALIC to buy up to 25,000 metric tonnes of goods from Minerva Foods annually, with an additional non-binding memorandum of understanding indicating the formation of a joint venture to breed, process and export sheep and cattle from Australia.

In a statement released by Minerva Foods, the company said that establishing a better presence in Australia would provide better export opportunities to expanding markets.

“Australia is the world’s leading exporter of sheep meat processed products and the second largest exporter of beef; it is recognised worldwide for the tradition and quality of its products, accessing both high-growth markets, such as Asia and the Middle East, and markets with high income levels that enable high profitability, such as the U.S., Europe, Japan and South Korea, among others.”

Minerva Foods processes more than a million tonnes of meat per year, selling to in excess of 100 countries around the world. Currently, SALIC is a 34% shareholder in Minerva Foods.

SALIC Expresses Interest in Rinehart Portfolio

Alongside WA billionaires Andrew “Twiggy” Forrest and Kerry Stokes, SALIC has expressed its interest in Gina Rinehart’s portfolio of cattle stations which was recently listed on the market at a price tag of around $300 million.

The aggregation includes seven stations and one feedlot across 1.876 million hectares of land in the Northern Territory and Western Australia, and almost 110,000 head of cattle.

Strong demand for large-scale grazing country and excellent livestock prices will provide an excellent return for Ms Rinehart who is retaining the bulk of her agricultural holdings. In total, she currently owns 10 million hectares of land in Australia.

“This sale is a refinement of the overall portfolio following a period of value creation through further investment and strong management and our client’s intention is to reinvest in the growth and improvement of their larger agricultural enterprise,” said Tom Russo, General Manager of Real Estate at Elders.

“Hancock Agriculture is committed to Australian agriculture and intends to retain and grow its remaining substantial portfolio,” he added.

Favourable conditions have seen a number of high value transactions over the last year, with Wave Hill Station in the Northern Territory selling for $104 million, a price which included 40,000 head of cattle.

Also in the Northern Territory, Tanumbirini and Forrest Hill stations sold to South African-backed Rallen Australia for $70 million.

Sources: Financial Times , Queensland Country Life
Image: “Until the Cows Come Home” by mdalmuld is licensed under CC BY 2.0

Dual-Purpose Cropping Leads to Record Breaking Canola Yield

Mon, 29 Mar 2021 11:27:44 GMT

The use of dual-purpose cropping on Mayfield Farm near Oberon in New South Wales has restored the farm from a “dustbowl” to a productive business with record-breaking canola yields.

Farm Manager Peter Brooks attributes the yield – 7.16 tonnes / hectare – to the practise of dual-purpose cropping and favourable growing conditions. Mr Brooks sowed Canola variety Hyola970CL in 2020, allowing lambs to graze on the crop for eight weeks during winter at a stocking rate of 20 lambs per hectare.

The system was designed in conjunction with the CSIRO, the Grains Research and Development Corporation (GRDC) and agronomy consultancy, Delta Agribusiness.

“We’ve had great conditions in 2020, but achieving this yield didn’t happen overnight – it was a culmination of 15 years of working with CSIRO to improve our systems,” said Mr Brooks.

“We followed what the science said we should do to improve our enterprise, and it all came together last year.”

CSIRO farming systems researcher Dr John Kirkegaard said that the fact the crop was grazed provided an additional benefit to the crop yield.

“An event like this is a mixture of bold science meeting excellent agronomy, and brave farming to push the envelope,” he said.

“Grazing the crop in winter provides incomes early in the season, and when managed carefully comes at no cost to grain yield.”

“But to achieve significant grazing and a record-breaking yield is remarkable and a credit to Peter, his on-site management Troy Fitzpatrick and the rest of their team.”

Ideal growing conditions meant the crop recovered well from the early-season grazing.

“Dual-purpose crops also help farms to manage their operations during times of drought, due to the extra winter feed which forms a significant part of farm revenue,” said James Cheetham from Delta Agribusiness.

“What we’ve found exciting from an agronomic perspective is that this occurred in a region where canola isn’t very common, and it could provide inspiration for a lot more farmers to from dual-purpose canola.”

Research found that dual-purpose canola could provide a financial benefit of $100-$200 per hectare through increased grain yield and a reduction in supplementary feed costs.

Grain and graze wheat crops show strong financial benefit

CSIRO-led research across dual-purpose wheat showed a potential bottom line boost of $1000 per hectare. Less than 10 per cent of the farms included in the study returned less than a grain-only wheat crop.

“The median increase in net returns from grazing was 25pc and in one third of cases, net returns increased by 75pc or more,” said Lindsay Bell, the Agriculture and Food principal research scientist at CSIRO.

“In the 87 canola grazing experiments returns were somewhat less, median 17pc, due to less grazing and higher grain-value and so increased economic risks from yield reductions.”

The study showed that long-season wheat cultivars sown before April were the best option for farmers considering dual-cropping, with early sowing needed to increase the opportunity for grazing.

Dr Bell encouraged farmers to consider the economic implications of grazing grain crops to determine the acceptable level of grain yield loss.

“In many cases, especially where the feed is being used to fatten or finish lambs or cattle, it is possible that accepting a grain yield penalty makes the most economic sense,” he said.

“However, managing these potential trade-offs to optimise profit will be influenced by the relative value of grain or livestock feed in that season as well as your location.”

Sources: CSIRO , Farm Weekly
Image: “Canola cultivation, Binalong, NSW.” by jemasmith is licensed under CC BY 2.0

Australian Agriculture Celebrates a Bumper Year Ahead of a Predicted Drop in Value

Fri, 26 Mar 2021 11:52:13 GMT

ABARES has announced that the value of agricultural output is set to reach a record of $66 billion in the 2020-2021 financial year, a $5 billion increase on the record set in 2016-2017.

Favourable seasonal conditions are the main driver of the increase in production, outweighing the drawbacks of the COVID-19 virus and trade tensions with China. Australia’s national wheat yield broke the records, with the total winter crop almost the highest on record. Consumers paid more than 15% more for food last financial year, fuelled by the increasing prices for red meat.

Farm incomes were also up by 18% with broadacre grain and livestock farmers earning an average of $184,000 and $190,000 for dairy farmers. In New South Wales, farm cash incomes outperformed the 10-year average – a significant turnaround for a state that has suffered significant effects of the drought.

Aus Ag to Generate $60 billion Plus for the Next Five Years

While the record year has provided a well-needed boost to profitability and general optimism, ABARES has warned that agricultural performance will contract this year. Forecasts show that Australian agriculture will generate around $63.3 billion in the 2021-2022 financial year, and maintain a return of above $60 million across the next five years.

Among the factors is a drop in the national wheat yield, which is expected to be around 25 million tonnes, down from the record 33.3 million tonnes last harvest. As farmers continue to rebuild sheep and cattle herds after the drought, there is still a shortage of meat for sale. In addition, the widespread outbreak of African Swine Flu in China has seen pig numbers decimated, increasing demand for Australian lamb and beef.

“Shifting trade, along with macroeconomic and production uncertainties, will provide the backdrop for what we expect to be a more difficult environment in which to grow production and trade value,” said ABARES’ acting Executive Director, Jared Greenville.

Beef, wine and barley exports to China are also under threat as tensions between the two countries continue and tariffs are applied to more commodities.

ABARES Outlines Agricultural Megatrends for the Next Decade

In addition to the performance figures and forecasts, ABARES has released a report outlining the megatrends set to shape Australian agriculture over the next ten years. Dr Grenville said that the trends were being released to help inform all layers of agriculture.

“The article seeks to help farmers, government and industry make informed decisions about an increasingly uncertain future,” he said.

“Australian agriculture is well positioned, but it is critical that industry, government and communities have the tools and information they need to understand the risks and opportunities they face, so they can create a future they want”.

“Well-informed decision making and risk management will remain central to Australian farming and we hope this Insights article supports this process,” he added.

The six megatrends are:

Growth juggernaut: Three billion empowered consumers refers to the growing Asian middle class and their shift to a diet with more protein, and with greater expectations around quality, nutrition and provenance.
More from Less: The permanent race for advantage covers the continual cycle of technology adoption, noting its benefits as well as the potential draw backs. Efficiency gains make food more affordable for consumers, but also reduces jobs in rural and regional areas, forcing workers to regional centres and cities.
Fractal politics: Beware of the dance of giants While Asian populations provide opportunity for Australian agriculture, geopolitical factors will continue to become more complex, requiring an flexible approach to export markets
Cascading Planetary risks: coming, ready or not As we come to grips with the realities of climate change, agriculture needs to adapt and innovate in order to remain productive. While there are challenges, opportunities such as carbon market and ecosystems are also valuable propositions
Disruptive Technologies: Only for the brave New technologies present new opportunities, but requires new skills and partnerships to implement and operate.
Positioning for the lucky country: Who will surf and sink? In order to manage the challenges and opportunities presented to Australian agriculture, the government must continually review and adjust relevant policy decisions.

Sources: Bloomberg , ABARES , Foodmag , ABC
Image: “NSW RFS Farm Fire Safety” by rfsmedia is licensed under CC BY-NC-SA 2.0

Significant Investment Boost Required to Realise Ag’s $100 Billion by 2030 Goal

Fri, 26 Mar 2021 11:44:30 GMT

Australian agriculture needs to attract a significantly bigger amount of annual capital investment in order to reach the National Farmers’ Federation target of AUD$100 billion in farm gate value by 2030.

That’s according to a new report released by Agrifutures Australia last month which included data modelled by economists to show the impact of investment levels on the output of agriculture.

The report showed that the industry needs to attract an additional $7.5 billion in annual funding over the next ten years. Currently, annual investments in agriculture total around $1.2 billion.

AgriFutures Australia General Manager Jennifer Medway said that farmers need access to additional funds in order to be able to maintain the level of innovation required to drive productivity and profitability.

“Stakeholders told us that the missing piece of the puzzle to achieving the $100 billion goal was understanding the capital needed to support growth.”

In understanding the roadblocks facing investors, the report details a number of strategies that would facilitate more interest in the industry.

One key issue is the absence of timely and relevant information to help investors assess investment options. This was the case across business-specific opportunities, sectors and the industry as a whole.

“Without quality data, such as industry performance benchmarks, available in a timely manner, investors struggle to see the merits of investment,” said Jim Binney, Director of Natural Capital Economics and an author of the report.

“In a competitive market, agriculture needs to demonstrate an attractive risk adjusted rate of return.”

“Individuals need to work together to provide consolidated sector and industry level data essential for investment analysis. Clearly industry associations and organisations such as ABARES also have a pivotal role in collecting and reporting this information.”

Access to information was also one of the issues highlighted for farmers, who need to be able to compare the performance of their business against other enterprises in the same sector.

The report – Capital requirements of Australia’s agriculture, fisheries and forestry sector – included a number of recommendations to attract more investment to the industry including the availability of better data, clearer guidelines around foreign investment and more diversity in investment formats.

“Over time if these recommendations are implemented, farmers’ options for sources of investment capital should broaden from the current reliance on loans and their own equity to also include investment from other sources,” added Mr Binney.

What do new forms of investment look like?

While farmers generally rely on fairly traditional forms of investment – Ms Medway said that the sector needed to look at more innovative investment models.

“Our past reliance on increasing land values to fuel debt as a form of capital is unsustainable. To innovate and grow productive farm businesses, we need capital investment to drive agtech adoption and new ways of doing things.”

“There are alternative farm investment models such as leasing, share farming and corporate investment, however we need to continue development of new models that are accessible to all types of agricultural enterprises, including small family farms.”

Sources: AgriFutures Australia
Image: “2011 08 06 Farmers Market” by gmtbillings is licensed under CC BY 2.0

Recruitment Trends for Australian Agriculture in 2021

Mon, 01 Feb 2021 12:07:36 GMT

While all plans for 2020 were swiftly hijacked by the outbreak of COVID-19, here’s hoping that 2021 will be a slightly more predictable period. Last year, Australian agriculture bucked the global trend of a contraction in job vacancies, growing by 0.37%. Considering the market forces currently affecting the industry and its workforce, here are our predictions for agri-recruitment in 2021.

Workplace Flexibility

Thanks to the COVID pandemic, many workplaces have a renewed understanding about the benefits of a flexible working environment, including working from home options and allowing employees to choose their own hours. Studies have shown that people tend to be more productive and happier when offered a flexible approach to working, and employee retention rates also improve.

While working from home won’t work for on-site teams, there are other options. There are apps on the market which allow workers to design their own rosters, and swap shifts with colleagues. Flexible starting and finishing times will also help you to retain good workers.

Remote Working Options

The benefits of a connected world means that we’re no longer limited to expertise based on a geographical location. For many positions, it’s not even necessary to be in the same state. By considering hiring someone on a remote basis, you open up your organisation to talent on a nationwide scale, and that’s great news for sectors like agriculture that have very specific skill-set requirements.

If your company is willing to consider appointing remote candidates, there’s an untapped pool of talent right at your fingertips – tree changers. Many have excellent professional skills and a wealth of experience to build value for your organisation.

Digital Recruitment Strategies

The days of meeting in-person seems distant, as many employers have moved to online candidate interviews. This creates a great deal of flexibility in overcoming scheduling issues and the distances that agricultural businesses often face. This also allows you to speed up the recruitment process, which is a key strategy in finding the right talent.

Depending on the position, you may want to follow up with an in-person interview for shortlisted candidates. Make sure that this is a genuine two-way interview where candidates can have the opportunity to ask questions about your company and gain an understanding of your organisational culture.

Navigating a Candidate-Short Market

While agriculture has proven to be resilient in the face of a global pandemic, it also means that good candidates with relevant experience are hard to find. If you’re looking to recruit in 2021, make sure that you have an attractive salary package to entice candidates to apply.

While money talks, there are a number of other benefits that you can use to increase the overall salary package such as bonuses, equity shares, a vehicle or vehicle allowance and accommodation.

Be sure to move quickly on good candidates. Don’t delay in scheduling interviews, providing feedback, conducting reference checks or making an offer.

With good candidates frequently in the running for more than one position, it’s critical that you act with a sense of urgency.

For more information about hiring in a candidate-short market, read our full article .

Need our Help?

If you’re looking for assistance to attract and retain the best talent for your business or organisation in 2021, The Lucas Group can help. As Australia’s leading agri-recruitment agency, we have the industry insight and networks to find the right candidates for you.

Find out more here or speak to one of our consultants on (08) 8201 9999.

Wilmot Cattle Co Sells Carbon Credits to Tech Giant Microsoft in First-of-its-kind Transaction

Mon, 01 Feb 2021 12:00:16 GMT

A New South Wales grazing aggregation has sold carbon credits worth around $500,000 to global tech brand Microsoft – the first of its kind involving an Australian grazier.

Over the past three years, Wilmot Cattle Co has sequestered more than 40,000 tonnes of carbon using a regenerative grazing system to produce grass-fed beef. Their farming approach includes time-controlled rotational grazing and intensive stocking rates in smaller paddocks, resulting in better ground cover, larger volumes of biomass and improved water-holding capacity.

In addition to restricting grazing in drought years, Wilmot’s land is now more productive and resilient, with soil organic carbon rates lifting from 2.5% to up to 4.5% with the goal of achieving 6% by 2023.

The company, which is owned by the Macdoch Group, runs a total of 4,000 hectares across two properties in the New England Tablelands – Wilmot and Woodburn.

Wilmot Cattle Co General Manager Stuart Austin said that the sale of the credits reinforced the benefits achieved through their farming system.

“Our data has shown us over many years now that we are consistently increasing soil organic carbon levels in our soils, as our soil health improved as a result of our grazing management system. Carbon is now a tradable commodity, and as such, we have looked all over the world to find a way to monetise these carbon gains, this project has enabled that,” he said.

Mr Austin, who was placed in his position at Wilmot Cattle Co by The Lucas Group, said that he hoped that the transaction would improve the uptake of carbon trading by Australian agriculture.

“Our hope is that through securing this transaction, we can send a message to both the Government and private carbon markets to get on with it! There is huge demand for carbon credits from big business globally, and ecologically friendly land stewardship will sequester carbon, so there is huge opportunity for land managers to monetise these gains if more products, like the CarbonPlus Grassland credit, are brought to market.”

Wilmot Cattle Co continues to investigate the opportunities that carbon trading offers including future credit sales and leveraging the opportunity to brand and market their own beef products.

“We are still committed to a Federal Government soil carbon project at our Gunnedah property, ‘Morocco’, and we hope to continue to sell credits annually through the Regen Network. Is a ‘climate positive’ grass fed beef brand on the radar? Quite possibly.”

Exploring the Carbon Market

The deal was facilitated by US company Regen Network which verified the credits, giving them CarbonPlus Grassland Credit status. According to Regen, the rating reflects the volume of carbon sequestered, along with “a suite of co-benefits including ecosystem health, animal welfare, and soil health.”

The credits issued to Wilmot and Woodburn were the first CarbonPlus Grassland issued by Regen. The project was initially registered with the company in 2016, with baseline monitoring undertaken between 2017 and 2019. The credits were issued in December last year and expire in 2027.

Microsoft pledged to become carbon negative by 2030, and to mitigate all carbon emitted through electricity use since 1975, by 2050. To date, the brand has bought 1.3 million metric tonnes in carbon credits from 26 projects around the world.

These purchases have effectively reduced their emissions over the past year by 6% to 10.9 metric tonnes.

Sources: Regen Network , The Land , Wilmot Cattle Co

Making Hay and Electricity While the Sun Shines: Agrivoltaics provides a bright opportunity for Australian Agriculture

Fri, 22 Jan 2021 12:36:47 GMT

A new application of solar power generation – agrivoltaics – is being deployed in paddocks and vineyards around the world, showing encouraging results for an ongoing partnership between renewable energy and agriculture.

In a vineyard in Herault, a region of Southern France, an imposing structure towers over three rows of black grenache vines. The industrial formwork covers around 600 metres of the vineyard with 280 dynamic solar panels mounted on top, providing a generation capacity of 84kW.

Importantly, the solar panels are mobile and, in conjunction with artificial intelligence (AI), are able to move in real time in response to both the requirements of the vines and environmental factors.

“Artificial intelligence is programmed to favour the growth of the plant,” said a representative from developer SunAgri. “In the event of extreme climatic hazards – drought, heatwave, hail, frost, heavy rain etc – the AI controls the panels to protect the crops.”

Over the course of the trial, the panels shaded the vines during heatwaves with a 12-34% reduction in the amount of water required. The developers also reported an improved aromatic grape profile with 13% more anthocyanins (red pigments) and between 9-14% more acidity.

“Vines are among the crops most affected by the effects of climate change, so it is essential that they be at the heart of our experiments,” added the spokesperson.

Closer to home, Australia’s abundance of sunshine could prove to be an ideal match for the development and commercialisation of agrivoltaics. Wynergy, a New South Wales-based company, operates several agrivoltaic enterprises, selling wholesale and retail energy back into the National Energy market.

They also develop and install systems for landholders who are keen to take advantage of their land and abundant sunshine. In addition to developing an additional stream of revenue, the raised solar tracker systems installed by companies like Wynergy have proven to have a range of agricultural and environmental benefits.

The company points to several studies from the US that have shown the shading effect of the panels creates an increase of up to 328% in soil moisture, a 90% increase in biomass production and a 200% increase in carrying capacity. The ability to provide additional shade to livestock also raises animal welfare and standards and could positively benefit animal health.

Even solar panels perform better in an agricultural setting with evidence showing that the microclimate surrounding them has a lower temperature, increasing panel performance.

The New South Wales State Government has shown its support for the potential of the technology by providing funding to Farrer Memorial Agricultural High School to integrate a 60-kilowatt system on Farrer Farm.

The system, which includes solar panels built on raised platforms, will replace four diesel irrigation pumps with electric pumps, saving the school around $75,000 per year in energy costs, in addition to agricultural and environmental benefits.

“The amount of money we will save each year is considerable, but there will also be valuable educational outcomes for our students,” said Farrer Farm Manager Andrew Eather.

“The agricultural industry can benefit immensely from agrivoltaics and this project will certainly educate students about the synergies between agriculture and renewables in a changing climate, both now and into the future,” he added.

Sources: PV Magazine , PV Magazine , Wynergy , PV Magazine , Mirage News

Longer-Life Fridge-Stable Milk Could be a “Game Changer” for Australian Exports

Fri, 22 Jan 2021 12:30:49 GMT

Fresh milk could soon have a longer shelf life, after food tech company Naturo, a subsidiary of The Wholey Milk Co, was given a $1 million grant to continue the development of innovative new pasteurisation technology.

The federal government grant will be used to build a pilot manufacturing plant capable of processing milk to become fridge stable for 60 days. The patented process, known as Haelen, is able to remove undesirable bacteria while creating a longer fridge-stable product.

According to The Wholey Milk Co’s CEO Jeff Hastings, milk processed through the Haelen process is also much closer to the original product than traditionally pasteurised milk.

“Put simply, our technology kills more of the bugs and has a superior shelf life,” he said.

“Our patented process is the only known method that kills Bacillus cereus, a common but unwanted spore forming bacterium in milk that produces toxins causing vomiting or diarrhoea.”

Current pasteurisation methods heat milk to 72 degrees Celcius for a minimum of 15 seconds, a process with both benefits and draw backs. In addition to eliminating the organisms responsible for diseases such as typhoid, diphtheria and Q fever, pasteurisation also removes alkaline phosphatase activity, “an essential enzyme for liver function and bone development,” according to Hastings.

“Our milk tastes like milk straight from the cow. It is safer, better for you and lasts longer. The primary difference between our milk and pasteurised milk is the fact that we don’t ‘cook’ the milk to make it safe for human consumption. It is much closer to milk in its original state and independently proven to be nutritionally superior”.

Milking the Export Potential

Commercialisation of Haelen could signal an exciting export proposition for The Wholey Milk Company as a longer fridge life offers the ability to be shipped to countries such as Japan, China and Malaysia.

As the diet of many Asian countries transitions from a grain base to a protein base, the potential for such products is significant.

“The key advantage is our shelf life which means we can sea-freight the product into broader Asia, including China or in fact anywhere in the world,” said Mr Hastings.

“There is also a greater portion of the younger generation that have possibly been educated offshore, who have travelled the world and are very familiar with the western diet and a key part of that is their appetite for protein including meats, milk and other dairy products”.

While Naturo is a Queensland based company, Mr Hastings said that it was likely that the pilot facility would be built in Tasmania.

“In terms of our commercial operations, the pilot factory will produce about 10 million litres of milk per year which will be manufactured into a range of products that is yet to be determined but could also include milk, cheese, gelato, ice cream and specialty milks”.

In 2020, Dairy Food Safety Victoria reviewed the technology, concluding that the process “could be used as an alternative treatment to the pastuerisation for raw milk”.

Sources: Food & Drink Business , Food & Drink Business
Image: “Model of a pasteuriser @ 100 innovationer @ Tekniska Museet” by pellesten is licensed under CC BY 2.0

Indian Farmers March into a Sixth Straight Month of Protests Amid Sweeping Changes to Agricultural Laws

Fri, 22 Jan 2021 12:25:25 GMT

Protests led by farmers near Delhi are entering their sixth consecutive month, after the Indian Government hurried three new agricultural laws through parliament without consulting a parliamentary committee for consideration.

Since November last year, hundreds of thousands of farmers and supporters have taken to the border of the Indian capital to express their anger at the passing of new laws regarding the sale, storage and marketing of agricultural products.

The new laws will relax the way in which agricultural produce is sold, stored and marketed, essentially moving Indian agriculture towards a free market. Currently, most farmers sell their produce thoroughly a local wholesale market controlled by the government, receiving a minimum support price (MSP) set by the Government. Although the new laws don’t dismantle the MSP, there are concerns that by bypassing the current marketing mechanism, small-scale farmers will be forced to accept more volatile prices and greater price pressure from large traders .

The protests, which began in the states of Punjab and Haryana in August last year, were met with a heavily handed response by police who used tear gas and water cannons to control protestors. Despite action from farming unions, state governments have declined to intervene and in November hundreds of thousands of farmers descended on Delhi to protest.

“This is a death warrant for small and marginalised farmers. This is aimed at destroying them by handing over agriculture and market to the big corporates. They want to snatch away our land. But we will not let them do this,” said farmer Sukhdev Singh Kokri.

Economists argue that access to a free market will ultimately benefit farmers, so long as it can work in collaboration with the public wholesale marketing system.

“Giving the freedom to the farmer to sell outside the mandi system, to whoever, is a welcome step, in unshackling the farmer,” said economist Ajit Ranade.

“But you need the mandi system to coexist with private trading system. Perhaps the government needs to come out with a written law that they will not withdraw the MSP or the mandi system.”

Influences on India’s agricultural landscape are vast and complex. The amount of agricultural land has shrunk from 159.5 million hectares (2010-2011) to 157 million hectares (2015-2016) with the average farm size dwindling from 1.2 to 1.08 hectares. Concurrently, the number of farming businesses has risen from 138.3 million to 146 million. Around 86% of farmers have less than 2 hectares of land, representing almost half of India’s total farmland. Almost half of India’s population is employed in agriculture, but the industry only contributes 16% towards the country’s gross domestic product.

In addition to protecting the income of farmers, the Government’s procurement system is also part of the national strategy to mitigate hunger. Data suggests that malnourishment in Indian women and children has worsened in recent years and as a central pillar of the Public Distribution System (PDS), access to food at a subsidised rate is essential.

Sources: Time Magazine , ABC , CNN , BBC , The Indian Express

Image: “Assessing how Indian farmers manage climate and weather risks” by CGIAR Climate is licensed under CC BY-NC-SA 2.0

$38 million of fresh produce left unharvested is “just the tip of the iceberg” according to Growcom

Fri, 22 Jan 2021 12:20:50 GMT

Australian fruit and vegetable growers have reported losses valued at more than $38 million since December last year, due to the lack of seasonal labour available.

More than 50 growers have contributed data to the National Lost Crop Register, which was established by Growcom late last year to quantify the effect labour shortages were having on the sector.

In a matter of weeks, 55 growers from five states and territories reported their losses through the register, representing the berry, tomato, carrot, citrus, banana, pumpkin, chilli and leafy green vegetable sectors.

Of those who have contributed to the register, two farmers reported losses of more than $10 million each.

Growcom warns that as a representative sample, the actual figure of Australian crop losses is likely to be significantly bigger than the $38 million.

“Our belief is that reports to the Register so far are just the tip of the iceberg. As awareness of the Register grows and as labour supply remains tight, the recorded losses will likely only increase,” said Richard Shannon, Growcom’s Manager of Policy and Advocacy.

“This is important evidence that will be used to inform decision-making and improve the ability of industry to collectively advocate for greater government intervention.”

Worker Shortages Add Insult to Injury

One Queensland grower, Fresh Produce Group, reported losses of $3 million after they failed to find 150 seasonal workers to pick blueberries with 20 hectares left unharvested.

“I conservatively estimate that we left over 400 tonnes of blueberries out in the field. We put all the effort and cost to grow this crop, and just had to walk away from so much,” said Anthony Poiner, Executive Director of Fresh Produce Group.

“The experience has been very demoralising for our team. We experienced extreme drought, a massive bushfire ripped through one farm, and then when we needed to harvest, we experience these worker shortages.

“Altogether it’s been an exceptionally challenging 12 months. Unfortunately, the challenges are not over. We are currently harvesting raspberries and blueberries in Tasmania, and we are about to start grape harvest in Mildura and West Australia.

“It remains relentlessly challenging to gain full attention of all the levels of authority to allowing us to get the harvest staff to these locations. One of the more irritating incidents was having a large number of our regular harvest workers, people who have been integral to our harvest team every year, trapped on the NSW side, unable to get across the border despite being in a region with zero COVID cases.

“I just hope we can get the right responses in time so we don’t have to lose more of our crops due to labour shortages.”

Government Action Required

The Government is under increased pressure to increase access for seasonal workers from the Pacific Islands and East Timor amid state and territory quarantine restrictions.

Mr Shannon reiterated the need for the Trans-Tasman bubble to allow increases to include workers from COVID-free Pacific Nations.

“With 22,000 pre-vetted workers in the Pacific Islands and the fact that these nations have been decimated by the lack of tourism, this serves as a genuine win-win for industry and our Pacific neighbours.

“And while backpackers will likely continue to prove an important part of our seasonal worker mix, we need to now start planning to reduce our reliance on them into the future. This should include consideration of a new visa category designed specifically to meet our seasonal harvest needs.”

Sources: Growcom
Image: “Fresh Berries” by cookbookman17 is licensed under CC BY 2.0

Experienced Agribusiness Professional VJ Boland to Lead The Lucas Group’s Presence in Queensland, New South Wales and the Northern Territory

Mon, 07 Dec 2020 12:43:23 GMT

Toowoomba-based VJ Boland has been appointed to The Lucas Group in a dual Recruitment Consultant and Business Development role.

With a demonstrated background in agriculture and a reputation for driving exceptional results, VJ brings a wealth of industry insight that will help to drive The Lucas Group’s presence in Queensland, New South Wales and the Northern Territory.

“We’ve always had a strong relationship with agribusinesses and primary production in the eastern states,” said Managing Director, Geoff Lucas. “To further support our clients, the appointment of VJ was a logical fit for The Lucas Group.”

VJ has a rich history in agriculture having grown up in a family with multiple interests in primary production. She graduated from the University of Sydney with a Bachelor of Business (agricultural commerce) and developed a career working in a range of agricultural industries across Australia for top tier agribusiness brands including NAB, PIRSA and Cotton Australia,” he added.

“Having a presence in Toowoomba will increase the support we can offer our clients, across executive search, general recruitment, salary surveys, WHS consulting and human resource compliance.”

For VJ, the chance to work with The Lucas Group presented a way to use her collective experience across a wide variety of agricultural sectors.

“In addition to working in agribusiness, I spent more than ten years managing livestock, irrigation and broadacre farms as well as a farm contracting business across the Moree district, so my management experience of agriculture will really help to support our clients,” said VJ.

“I understand the specifics and intricacies of agriculture, and I’m keen to apply that knowledge and experience with The Lucas Group’s client.”

Although based in Toowoomba, VJ will be available to travel across Queensland and intestate including New South Wales and the Northern Territory.

Contact VJ Boland | Associate Consultant & Business Development Lead | 0427 444 468 | vj.b@lucasgroup.com.au | lucasgroup.com.au

Harvesting Talent: Recruitment Trends in the Grain Sector

Fri, 04 Dec 2020 12:47:48 GMT

2020 is a year that will be indelibly marked in our minds for its trademark characteristics – the COVID-19 pandemic and associated lockdowns and China’s decision to enforce tariffs on Australian barley and – thankfully – an end to the drought that has plagued many regions of Australia.

Despite the economic effects of COVID-19, primary production has again proven its resilience as an essential industry. New data has shown that agriculture is one of four Australian industries that has seen growth in job vacancies since the pandemic hit. According to data compiled by seek.com.au, job ads in agronomy and farm services are up 19.5% year on year and job ad views have increased by 26.8% YOY – the disparity between the figures showing candidates’ reluctance to jump ship.

Understanding the Pinch on Available Talent in Australian Grains

Figures released last week by ABARES suggest the winter crop harvest will be 27.6 million tonnes – the largest since 2016 and New South Wales is predicted to yield 9.5 million tonnes in wheat alone. On the back of a good season, demand for harvest workers has increased, with machinery drivers significantly in demand. Despite good news stories about grounded pilots being redeployed into agriculture, many growers are still struggling to find the staff required to get the crop off. The presence of job seeker payments is a factor, in addition to border closures and the migration of backpackers back to their home countries.

While there was some early season movement in storage and handling positions, employees in trading roles have their feet planted firmly under the desk. Unease about market conditions and COVID are preventing many employees from changing jobs, including in the grains sector. This has resulted in a shallow pool of candidates for employers looking for skilled and experienced workers, with many hiring managers feeling the pinch.

How Employers Can Tackle a Candidate-Short Market

Recruiting staff in the current environment is challenging, but not impossible. Employers are encouraged to focus on proactive strategies to target passive candidates. For more in-depth information on this subject, read our latest blog post – Recruiting Staff in a Candidate Short Market or contact The Lucas Group .

Exotic Pest Fall Armyworm Threatens Australian Summer Crops

Wed, 04 Nov 2020 04:05:55 GMT

Farmers in Queensland, New South Wales, the Northern Territory and Western Australia are being warned to monitor crops as the fall armyworm has been spotted in new locations across the continent.

Fall armyworm – an exotic pest with a ravenous appetite for many species of summer crops and pastures – was first identified on Australian shores after being spotted near the Torres Straight at the beginning of 2020. In May this year, it was reported that the fall armyworm had been detected in Bundaberg, Queensland.

Since then, populations have migrated south and south west, with positive identifications made in Kununurra (Western Australia) and into New South Wales. The NSW Department of Primary Industries has set up a network of 45 detection stations across northern New South Wales, using pheromones to attract the male of the species.

Industry groups are now warning summer croppers to regularly monitor crops and undertake closer inspections where crop damage is observed.

Fall Armyworm’s Global Footprint

A native of the American subcontinent, populations of the fall armyworm have exploded over the last few years, migrating to African and South East Asia, having a devastating effect on crops. It’s estimated that the fall armyworm is responsible for reducing maize yields in 12 African countries by as much as 17.7 million tonnes annually – the equivalent of 40% of Africa’s annual maize yield, valued at USD $4.6 billion.

While the national and international losses are significant, many of the continent’s smallholder farmers are pushed further towards poverty and hunger with the decimation of their annual crop.

In 2019, up to 50% of the maize yield in Asia was affected by fall armyworm in 2019, across 40,000 hectares of land. While maize farmers have been severely impacted, the fall armyworm is known to eat up to 350 different plant species including pastures, grasses, sorghum, rice, ginger and sugar.

As a tropical insect, the fall armyworm is highly active in warm climates. Except for a few small pockets in northern New South Wales, Australian winter temperatures will all but eradicate the pest. Until then, it poses a significant risk to the productivity of sectors at risk of contamination.

In warm weather fall armyworm is an exceptionally robust pest, capable of reproducing rapidly and travelling long distances. Fall armyworm uses prevailing winds to travel up to 100 kilometres overnight and can also be spread by humans on infected plant material.

Talking to AgriFutures Australia, Mark Stevens – a Principal Research Scientist with the NSW Department of Primary Industries – said that the pest’s ability to survive make it hard to control.

“It’s disturbing that it has moved so swiftly in Australia in a relatively short timeframe and it’s appearance in inland NSW so early during spring is a particular cause for concern. Fall armyworm cannot survive low winter temperatures, so these moths must have rapidly moved south from Queensland, or from another area with relatively mild winter conditions.”

Dr Stevens added “Moths dispersing from warmer locations, where conditions are suitable for overwintering, can establish damaging populations elsewhere and multiply over several generations, causing substantial damage before falling temperatures in late Autumn impact on their survival.”

Sources: IPS , PBRI , Agrifutures Australia

6.6 Billion Acres of Land: Who is the World’s Biggest Landholder?

Wed, 04 Nov 2020 04:01:38 GMT

The biggest landholder in the world owns 6.6 billion acres of land including 25,000 acres of forest, all the gold mines in Scotland, an offshore windfarm and a tidal power plant.

That’s in addition to 15 retail parks and three shopping centres – a total of 4.3 million square feet of retail space.

Surprisingly this landowner has an incredibly small herd of cattle – just one Aberdeen Angus cow in fact. The cow was presented as a gift by the Calgary Stampede agricultural show and remains in Calgary as a founding member of the Stampede’s herd.

Our mystery landowner is, of course, Her Royal Highness the Queen of England.

In addition to her more traditional landholdings, the Queen also owns half of the British shoreline and the UK’s territorial seabed – extending 12 nautical miles from the coast. In 2010, the Thanet Offshore Wind Far was constructed seven miles off the cost of Kent, at the time the largest offshore wind farm in the world. The Crown owns this site in addition to a string of offshore green-energy projects. Europe’s biggest tidal power plant, Pentland Firth is also an asset of Her Maj’s portfolio.

As well as shopping centres, the Queen owns a string of premium heritage real estate including most of Regent Street, The Tower of London (including the crown jewels and a flock of ravens), Westminster Abbey, Hyde Park and Trafalgar Square.

Residentially, the portfolio does not disappoint. The Queen’s primary residence is of course, Buckingham Palace in London, all 775 rooms of it. Other ‘houses’ include Windsor Castle (the world’s largest occupied castle), Holyrood Palace in Edinburgh, Scotland and Hillsborough Castle in Northern Ireland. The Royal family spends Christmas each year at

Sandringham Castle, while Balmoral is rumoured to her the Queen’s “favourite summer estate”.

While Her Royal Highness’ cattle holdings may be rather lean, she does make up for it with other livestock collections. Renowned for her love of horses, the Queen has a string of up to 30 hay burners at any one time. Her eye for bloodstock has earned her around $9 million in the last three decades, with 451 race wins to her name.

The Queen was gifted two giant tortoises during a visit to the Seychelles in 1972. Initially they were housed at London Zoo before being rehomed. Not to mind as a statute dating back to 1324 decreed that the king “shall have reck of the sea through the realm, whales and sturgeons taken in the sea or elsewhere within the realm,” meaning that the Queen also owns all the whales, sturgeons, porpoises and dolphins within three miles of the UK coast. She also has her own colony of bats and owns all the swans on the river Thames.

As the head of state of the United Kingdom, the Queen also own 14 overseas territories, and 16 Commonwealth realms, including Canada, Australia and New Zealand. As the current reigning monarch, she also technically owns the Isle of Man, Jersey and Guernsey. Collectively, these are known as the Crown dependencies.

If that’s not enough to keep the Queen busy, she also owns the Royal Box at Wimbledon Tennis Court, 150,000 works of art, a fleet of vehicles worth $10 million, an extensive collection of Fabergé eggs, and the world’s largest clear-cut diamond.

Known as the Great Star of Africa, the diamond is valued at around $51 million.

Sources: Mental Floss , Independent

The Future is Female: How the Landscape of Agricultural Employment is Set to Change

Wed, 04 Nov 2020 03:57:32 GMT

With agriculture degree courses now attracting more women than men, the future of primary production will have a vastly different look to the current, male dominated industry.

That’s according to a report ANZ Agri Insight this month, released earlier this month on the International Day of Rural Women.

With female enrolment in agriculture courses now up to 56%, an additional 18,500 female graduates will join the Australian agricultural workforce, compared to 13,500 men.

ANZ Agri researcher Madelaine Swan said that while women have long contributed to both on farm labour and off-farm income, the number of women in formal agri-employment is on the rise.

“Many women have been isolated from the broader industry as ‘silent’ participants on farms, however that trend is slowly changing, as more women gain qualifications in agriculture and related disciplines, and the workforce shifts to an increased formal, paid participation from women,” she said.

The number of women in formal, paid positions has increased steadily over the last few decades, rising from 26% in 1984 to 34% in 2020. The balance of women in full-time versus part time agricultural roles is also shifting. In 1984, women made up 73% of the part-time agricultural workforce, and 15% of the full-time positions. In 2020, women held 56% of the part-time roles and 26% in a full-time capacity. The underemployment rate is also heading in the right direction with 8.5% of women in agriculture wanting more hours.

Executive Agriculture Trailing Behind in Diversity

While around 28% of all managers in agriculture are women, ANZ’s Agri Insight report highlighted the lack of women’s representation in agri-board positions. In industry bodies, 90% of board positions are held by men and only 2.3% of Australian agribusinesses have a female CEO, compared with an average of 17% across other sectors.

When we consider that the average age of a farmer is 61 – and the average age across the entire agricultural workforce is 49 – it’s obvious that agriculture will face a massive shift over the next few decades. On its own, that forces the industry to plan for a huge number of job vacancies over the next few decades, without accounting for huge growth predicted for Australian agriculture.

ANZ’s report predicts that there will be another 50,000 jobs created in agriculture. Of those 27,000 will be filled with women and 14,000 of those will be in a management position.

Growth Potential for Global Female Focus

Globally, one in three women work in agriculture. Despite being as productive and profitable as their male counterparts, female farmers have less access to land, credit, agricultural inputs and markets.

Research by the United Nations asserts that “if women in rural areas has the same access o agricultural assets, educations and markets as men, agricultural production could be increased, and the number of hungry people reduced by 100-150 million”.

Sources: Beef Central , ANZ

ANZ Bank’s Emissions Target “Won’t Affect Mum and Dad Farmers”

Wed, 04 Nov 2020 03:53:09 GMT

ANZ has assured its customers that bold new emission reduction targets won’t affect Mum and Dad farmers.

ANZ Chief Executive Shayne Elliott made his position clear after several politicians questioned the bank’s new policy and its potential impact on Australian agriculture. During its results announcement earlier this month, Mr Elliott outlined the banks new strategy to encourage its 100 largest carbon-polluting customers to reduce their emissions.

Mr Elliott said that the bank would work with customers in energy, transport, building, good and agriculture to “establish or strengthen low carbon transition plans”.

Federal Agriculture Minister David Littleproud hit back at the CEO, claiming policy and morality issues should be decided by the government.

“Banks are not, and should not try to become, society’s moral compass and arbiter – the Australian people decide that by who they elect,” said Mr Littleproud said.

“We can’t let unelected, profit-driven financiers from Pitt Street dictate to society how to produce food and fibre or how we run our economy,” he added.

Michael McCormack, the Deputy Prime Minister, agreed with Mr Littleproud, accusing the ANZ bank of “virtue signalling”.

“The banking sector’s entire focus should be on supporting our agricultural producers, not adding an extra layer of administration. Transport, fertiliser and fuel companies snared by these new rules could have no choice but to pass on costs along the agricultural supply chain, only to have farmers pick up the bill at the end.”

Mr Elliott hit back at his opposition, saying that the ANZ’s position would only affect the bigger players in each industry.

“I know some farms in Australia are pretty big but I’d be really surprised if the 100 largest emitting customers included mum and dad farms. So no, it’s not going to impact them,” Mr Elliott said.

“We’re working with the really, really big food manufacturing companies, all of whom, in our experience, are fully engaged in that conversation. It’s just about us working together around a just transition, and a transition towards that lower carbon future.”

ANZ’s position mirrors that of many agricultural industry bodies including the National Farmers’ Federation.

The NFF has set a net-zero emissions target for 2050, gaining an endorsement from GrainGrowers. The red meat industry has also agreed to meet a net-zero goal, by 2030.

David Heath, Director of the Farm Institute said that far from moralising, agriculture’s response was based on the realities of business.

“It’s a result of having a cold hard look at the short-term business environment as well as a longer assessment of business sustainability that is driving the change,” he said.

During the results announcement, Mr Elliott also announced that ANZ would withdraw finance from thermal coal by 2030 and immediately cease funding new coal mines and power stations.

Sources: Sydney Morning Herald

Recruiting Staff in a Candidate-Short Market

Mon, 26 Oct 2020 04:10:47 GMT

If you’ve tried to hire staff recently, you might have experienced the symptoms of a candidate-short market – applications trickle in slowly at a glacial pace from poor quality candidates, leaving you feeling less than inspired about finding the right person for your team.

In this blog post, we’ll talk about the factors influencing the trend, along with strategies to help businesses and organisations looking for staff in the current market.

Despite drought and bushfires, strong global demand for Australian produce has helped to maintain the industry’s value. In the 2018-19 financial year, Australia grew $60 billion of agricultural products, up 3% on the previous year.

“The downside to strong industry performance is a lack of people looking for work and COVID-19 has made the situation even tighter with people less likely to take the risk of a new job,” says Tom Lucas , a Senior Consultant at The Lucas Group .

While COVID-19 has had a significant impact upon industries like retail and hospitality, agriculture has remained resilient. According to seek.com.au, demand for agriculture employees is up 0.15% compared to last year, one of only three industries to see an increase.

If you’re currently in the market for a new employee, there are ways to get around the roadblocks to finding the right employee for your workforce.

Put your best foot forward

In a market where candidates are shy about jumping ship, putting your best foot forward is key in attracting interest. Whether you’re replacing a staff member or hiring a newly created position, you’ll need to know what the sector benchmark for remuneration is so that you can attract the right candidates. Additional package features such as a vehicle and performance bonuses should also be used to sell the opportunity to potential applicants.

Proceed without delay

A delay in recruitment process is the number one cause of candidates withdrawing from an application. Whether you’re dealing directly with candidates or using a recruitment partner, make sure that you’re setting short timeframes to provide feedback to applicants or interviewees. Keep candidates up to date on a regular basis – even if it’s just to provide an estimate on when the candidate should get an answer.

Let us do the work for you

As Australia’s premier agribusiness recruitment agency, we have the connections and the industry expertise to find the right employee for your business. In addition to a database of more than 35,000 agriculture candidates, we undertake targeted advertising campaigns to promote your organisation as an employer of choice. The Lucas Group undertakes thorough reference checks and offers a guarantee on all placements, freeing up your time and giving you peace of mind.

Consider retention strategies

If you’ve had a number of employees resign recently, it might be time to ascertain how engaging your organisation is as an employer. Consider surveying your staff to identify areas from improvement. If remuneration is a common theme, you might need to see how your business ranks among other employers in the sector – The Lucas Group’s salary benchmark service could be beneficial. If more complex factors are in play – workplace culture, management styles, WHS, etc. implement corrective action to make your organisation an employer of choice.

Need more support?

While it is a hard market to recruit in, the right candidate is out there – they might just be a little harder to find. Widen your search to a national approach and make sure you have a competitive salary package to offer potential employees. If you need help, we’re here to support you. Call The Lucas group on 08 8201 9999 for an obligation-free discussion with one of our consultants.

Sources: ABS , Seek

Better Uptake of Digital Technologies Could Boost Australian Farm Outputs by $20 Billion

Wed, 30 Sep 2020 04:14:40 GMT

Widespread uptake of digital technologies across Australian farms could lead to an increase in industry revenue of $20 billion per year, according to the Chair of the National Farmers’ Federation, Tony Mahar.

Mr Mahar’s comment was in response to an announcement by Agriculture Minister David Littleproud who outlined a new agricultural innovation agenda earlier this month.

“To realise this, we need the right policy and regulatory settings to support farmers to adopt safe and proven technologies,” he said.

“The NFF has been calling for Government to lead the development of a digital strategy for agriculture, with a focus on skills; data policy and regulation; innovation and telecommunications connectivity and adoption”.

According to economic modelling commissioned by the NBN, internet-enabled digital tools that collect information to help growers make data-driven decisions have the capability to add $15.6 billion to agricultural revenue.

Technologies monitoring climate and environment factors with sensors, such as soil moisture monitors, have the potential to add another $4.3 billion and automation of farm machinery could add another $3.3 billion.

The research showed that every state and territory would benefit from improving the capacity and use of digital technologies in agriculture. New South Wales would gain an additional $3.7 billion a year, followed by Victoria ($3.5b), Queensland ($3.4b), Western Australia ($2.4b), South Australia $1.9b), Tasmania ($50 million) and the Northern Territory ($10m).

By sector, dryland cropping would benefit the most ($3.7) with a boost of $5.7 billion, followed by extensive livestock ($4.3b) and horticulture.

Mr Mahar said that the use of digital tools had the ability to build value and manage risk, in addition to financial gains.

“Whether adopting sensors and analytics to help increase crop yields or using robotics to automate dangerous tasks and reduce workforce risks, there is significant scope for connected farming to grow exponentially across Australia, particularly as technology and infrastructure improves,” he said.

Target ‘Low Hanging Fruit’ Advises AgTech Expert

While agtech has the potential to offer solutions for a range of agricultural tasks, one expert has warned farmers to concentrate investment in areas with significant potential production gains.

“If you look at northern Australia, knowing where your cattle are for mustering efficiency and reducing helicopter time, that’s a very big win,” said Dr Mark Trotter, an Associate Professor in Precision Livestock Management at Central Queensland University.

While dairy farmers gained an easy advantage from using smart tags to better time joining, Dr Trotter advises that tagging only bulls could be a more cost-effective strategy for beef cattle graziers.

“You can see a shift in behaviour when a bull breaks down and stops working properly,” Dr Trotter said.

“There may also be some interesting ways we can optimise the percentage of bulls that are put out based on understanding their behaviour in real time.

“In the middle of the season, we can see what’s actually happened with those bulls; how many are working, how many aren’t, and it’s the same thing with rams.”

Sources: Farm Online , Beef Central

Quad Bike Sales Surge in the Lead Up to Manufacturer Withdrawal from Australia

Tue, 29 Sep 2020 04:26:10 GMT

Retailers are reporting a surge in sales as consumers ‘panic buy’ new quad bikes, as four manufacturers have indicated they will be withdrawing from the Australian market next year.

It is believed that Honda, Yamaha, Suzuki and Kawasaki will no longer offer quad bikes for sale in Australia from October 2021 after the Government announced that all new quad bikes must be fitted with a roll bar.

Quad bike manufacturers are principally concerned with the implication of the responsibility that would come with integrating new safety features.

“My understanding is that there have been about 15,000 deaths in the United States involving quad bikes. I think there might be some concerns around litigation that might come from an admission that there is an issue in design,” said Nationals MP Mark Coulton.

“It’s not a huge added cost to the machine so I think there’s deeper concerns as to why the manufacturers are behaving the way they are.”

Brad Ryan, the chief executive of Yamaha Motors Australia has previously expressed his position on the future for quad bike manufacturers in Australia, saying that the new safety devices were based on recommendations stemming from “appalling science”.

“[It’s] a legal risk far beyond what we could accept, let alone the risk of failure resulting in harm to our customers,” said Mr Ryan.

Practical Help for Farmers

For those managing a farm or property on which quad bikes are a fixture, understanding the implications of the changes is essential to protecting the safety of employees and contractors.

“All staff need to have specific training on the use of quad bikes, regardless of whether they’ve operated them before or not,” said The Lucas Group’s Senior Consultant Tom Lucas.

“Staff need to be provided with relevant PPE including a helmet, and wearing relevant PPE needs to be enforced by property owners and managers on an ongoing basis,” he said.

Mr Lucas said that businesses should also make sure they have relevant WHS policies in place such as staff and contractor inductions and regular servicing and maintenance of all quad bikes.

“Agribusinesses carry a significant WHS risk compared with other industries, so a regular external WHS audit is an effective way to identify potential hazards and put corrective steps in place to remedy any issues,” he added.

More Resources and Support

Several states and territories have rebate schemes for quad bike owners wanting to retrofit safety devices or upgrade a quad bike to a side-by-side vehicle, as well as dedicated quad bike training programs.

Check your local state or territory’s safe work website for more information or check out QuadWatch .

Find out more about having an external workplace health and safety audit conducted for your business. Identify risk and understand what practical steps can be taken to ensure the livelihood of your business and the safety of your staff.

For more information or support, our specialist Consultants are here to help. For an obligation-free discussion, call our office on (08) 8201 9999.

Sources: ABC , Safe Work Australia , Work Cover Queensland , ABC , Country News , Bendigo Advertiser
Image: “Rhiwlas, North Wales” by A Roger Davies is licensed under CC BY 2.0

Sale-and-Leaseback Model Critical for the Growth of Australian Agriculture

Tue, 29 Sep 2020 04:21:03 GMT

The sale and leaseback of Australian agricultural land will be a critical component for the growth of Australian agriculture over the coming decades, according to a recent report by Colliers International.

The report includes data on the sale of Australian agricultural land over the last two years, investigating the increasing trend of investors purchasing agricultural land on a leaseback deal with the vendor.

The growth in interest in agricultural investments has grown considerably in the past few decades. In 2009, there were only two active agribusiness funds investing in agricultural land; today there are 43.

The report – The rise of agricultural sales and leaseback transactions in Australia – revealed that the total value of lease back transactions totalled A$2.15 billion between 2018 and June 2020, A$1 billion of which occurred in 2019. Real Estate Investment Trust Charter Hall bought Inghams portfolio for $207 million on a weighted average lease expiry (WALE) deal with a term of 15.8 years. The transaction included 27 properties including hatcheries, feed mills and breeder sites.

Allied Pinnacle milling portfolio sold for nearly A$400 million with a leaseback term of 27.5 years.

The report outlined the favourable conditions driving domestic and international investment into Australian agricultural land including low interest rates, a low Australian dollar and a favourable environmental reputation. With intense interest from investors, agribusinesses are currently in the driver’s seat to take advantage of the competition.

In addition, agriculture has proven to be more reliable than many traditional investment classes through the COVID-19 pandemic – a timely reminder of the critical nature of food production to investors. While the value of property assets such as offices, retail space and hotels will likely recover from the economic downturn, their longer-term risk outlook could increase, forcing investors to look elsewhere.

While seasonal conditions, bushfires, floods, market fluctuations and market access all pose a risk to agricultural investments, Collier’s International cautions that certain business models offer a buffer for potential investors. Vertically integrated business processing value added products with a distribution or marketing channel are better placed to weather commodity price fluctuations, as are businesses with diverse outputs. Businesses with varied farm locations are viewed as being more resilient to natural disasters than single-site enterprises.

“Investments on land-intensive assets in principle provide the best return over the long term, as land vale growth forms an important part of the overall return,” the report stated.

In addition to the favourable risk profile, agricultural land investments have consistently produced the highest yields among property asset classes since 2016, with a positive medium-term outlook.

“In the case of the agricultural sector, we do not expect to see a significant swing towards a softening on yields in 2020/21.”

“Rental growth for agricultural tenants has historically averaged around 2.0% per annum, and we expect this to remain in the short to medium term.”

Sources: Australian Financial Review , Colliers International

White Gold: Smart Robotics to Drive Yield and Quality in the Lucrative White Asparagus Sector

Mon, 28 Sep 2020 04:35:16 GMT

As a common feature on the plates of German and Dutch diners, the popularity of white asparagus has led to clever innovation to improve the growing and harvesting of the ‘King of Vegetables’.

A delicacy in some countries and a household staple in others, in the Netherlands alone a staggering $82 million of white asparagus is consumed every year, while the Germans inhale 125,000 tonnes of it during ‘Spargelzeit’ (white asparagus season). Unable to satisfy domestic demand, more than a third of white asparagus eaten in Germany is imported.

On Australian shores, the sector is so small that it barely even registers. Outside Germany and the Netherlands, consumer interest in white asparagus is largely driven by the gourmet food scene, grown in small quantities and sold to high-end restaurants on the hunt for unique ingredients. Outside Central Europe, white asparagus retails for between $14-$20 a kilo.

Derived from the same variety as its green counterpart, white asparagus is grown exclusively under the soil. The absence of sunlight inhibits the production of chlorophyll, preventing it from going green. Growers plant asparagus under mounds of soil, in polyhouses or under plastic to ensure the right conditions.

Given the volume of production in central Europe, innovation and precision in growing white asparagus is a focus for the German and Dutch industries. A Dutch company, Cerescon Harvesting, has recently commercialised robotic technology specifically for the white asparagus sector, attracting interest from farmers and investors alike.

Cerescon’s automatic selective asparagus harvester robot, known as Sparter, uses sub-surface detection sensors and electrical pulses to identify the exact location of asparagus. Once located, the spears are plucked out of the ground by the machine’s cutters and put on a conveyor belt and sent to a collection point on the harvester.

Available in one and two-row models, the self-propelled unit is also capable of repairing seed beds in preparation for next season’s plantings and can even lift and relay the plastic on top of the crop rows.

In addition to the production and quality gains offered by Cerescon’s harvester, the labour shortages worsened by the COVID-19 outbreak has increased interest from asparagus farmers across central Europe.

“Since the outbreak of the coronavirus, interest in Sparter from growers has doubled now that harvesters are even thinner on the ground,” explains Mark van Lier, International Sales Manager at Cerescon.

According to Cerescon, one machine can replace the work undertaken by 25 workers, reducing harvesting costs by 50% while increasing the yield and quality of harvested asparagus.

Operated autonomously, the one-row Sparter is capable of harvesting around 0.3 hectare per hour and will retail for around AUS $577,000.

Interest in Sparter has encouraged Cerescon to start production of 150 machines per year over the next 5 years.

Sources: Cerescon , BBC
Image: “White asparagus” by RaeAllen is licensed under CC BY 2.0

“Grain King” John Nicoletti Sells Dealership Network in Favour for a Return to Farming

Mon, 31 Aug 2020 04:50:48 GMT

Once Australia’s biggest farmer, John Nicoletti has made a return to the coalface by investing in a significant amount of Western Australian cropping land.

Nicoletti sold his most of his holdings in 2018 to focus on the network of John Deere dealerships he owned across Western Australia. In a deal rumoured to be worth around $40 million, he has recently offloaded the business in an effort to refocus on farming.

“I don’t mind being either – a farmer or a machinery dealer – but I think buying land for people who want to lease it is a lot easier than running a dealership,” he said.

“I think what is happening nowadays is that we have been somewhat dictated to and I don’t like that – I think that if you have a look at where machinery dealers all across the globe are going, I don’t think that’s the way we should conduct business.

“I strongly believe that the person who owns the store should run the store.”

In addition to his sentiments about the role of a dealer, he said that a lack of succession options was also a factor in his decision to sell.

With a renewed bank balance, Nicoletti is investing in broadacre country in Western Australia with the aim of leasing it out.

“If I know people who are very good farmers but can’t afford to buy land, well I don’t mind buying land for people to farm who love it and are good at it.”

“Investing in farmland is a strong way to invest your money. I see land values in WA as still rather manageable and affordable so that is the road I chose to go down.”

In total, Nicoletti has bought 26,000 hectares of land across Borden, Hyden, Beacon and Beermullah at an estimated value of $32.65 million. Buying land in different regions has been a strategic decision, driven by the need to reduce risk.

In addition to the leased land, Nicoletti is also managing two other cropping and sheep operations.

“[We need to] knock them into shape. Once we have done that, we will either on-sell them or lease them out – most likely lease them if we have good operators lined up,” he said.

Good recent rains have boosted the outlook for this year’s crops.

“In the past four weeks we have seen a fantastic change in the crops – we didn’t get big rains, just nice gentle rainfall, so it has been good. It is certainly much better than what we were expecting at the start of the season.”

Sources: Farm Weekly , The Lucas Group

Agriculture Warns Border Closures Could Wreak Havoc on Regional Communities and Food Security

Mon, 31 Aug 2020 04:47:16 GMT

Industry stakeholders are calling for Victorian border restrictions to be lifted, warning that agriculture is facing an “absolute disaster” without free access to neighbouring states.

David Jochinke, president of the Victorian Farmers’ Federation, said that livestock management and harvest operations were in threat without the availability of labour anD resources.

The VFF were among key stakeholders in a meeting held earlier this month to determine how the industry could mitigate potential losses. Also in attendance were representatives from the Melbourne Market Authority, retailers, abattoirs, livestock transporters, Nufarm and Incitec Pivot.

Mr Jochinke said that while he understood the severity of the pandemic, border closures could place further strain on regional economies and food security.

“We understand the need in these times to adhere to good health practices and want to be part of limiting contact, but the reality is the way the restrictions and border closures are structured, we are headed toward an absolute disaster,” he said.

“That is in terms of getting produce harvested on either side of the border [with NSW] as well as farmers being able to be good stewards to their animals.

Poor grain harvests in Europe could provide an economic boost to Australian growers, provided grain can be adequately stored, transported and exported on demand.

According to Stefan Vogel, a grains and oilseed strategist with Rabobank, Europe’s wheat harvest was down by 10 million tonnes because of dry conditions.

“So, who can offset that shortfall in European production that would be going into export markets? Everyone is banking on Australia to make that happen on the world market because no one else has a whole lot of buffer to make that up,” he said.

“So, if we want to keep stable or even growing global export volumes, Australia is actually required to give us a decent amount of wheat on to the world export market.”

The Victorian industry is likely to be further frustrated by last week’s easing of boarder restrictions for rural workers in New South Wales and Queensland. Under the new rules, critical workers will not be limited to operating within 100km of the border, but farmers and farm workers will not be allowed to make unnecessary stops when travelling between home and work.

In Victoria, only highly specialised agricultural service providers are allowed to cross the border, and only up to 100km within New South Wales. Workers travelling under this ruling must self-isolate when not at work.

Frustration around the inconsistency of border rules and pressure on the government has forced Scott Morrison to consider a national approach. Mr Morrison indicated that an agricultural workers’ code would be considered at the next national cabinet meeting.

Sources: AFR , The Australian

Working Holiday Visa in the Spotlight as Unions Call for an End to Overseas Workers

Mon, 31 Aug 2020 04:43:49 GMT

Issues around the use of visa holders to undertake seasonal work in the horticulture industry have raised their head again after an alliance of unions called on the Federal Government to end the working holidaymaker visa.

The Australian Workers’ Union, the Shop Distributive and Allied Employees’ Association and the Transport Workers’ Union have lodged a joint submission claiming that the visa should be scrapped in order to provide more job opportunities to regional Australians.

The unions also claimed that the backpacker labour sector was rife with exploitation.

According to the Australian Fresh Produce Alliance (AFPA), around 130,000 working holiday maker visa holders are employed in the horticulture industry, although that number is estimated to have fallen by 50,000 since the COVID-19 pandemic forced many to return back to their home countries.

THE AFPA said that without the working holiday maker visa, the Australian economy would experience a $13 billion penalty and fresh fruit and vegetables could rise in price by as much as 60%.

The Australian Workers’ Union (AWU) fought back at the AFPA’s position, saying that Australia’s dependence on overseas labour had been highlighted through the pandemic.

“Farmers need to attract Australians back into the horticulture workforce,” said Daniel Walton, the national secretary of the AWU.

“The concept that Australian don’t want this work is just wrong, it’s offensive. All work is dignified and should be respected.”

Conceding the wage disparity, Mr Walton added “[if farmers] started paying people decent wages, there’s a willing workforce already out there in rural and remote Australia.”

The Retail Supply Chain Alliance opposed the position of the unions, calling for a broadening of the rules of seasonal worker visa to include people from Pacific nations.

The alliance also suggested that the seasonal worker visa could also be a pathway to permanent residency and citizenship.

Despite the debate about the use of seasonal worker and holiday visas, the consensus in the horticulture industry is that Australian citizens are unwilling to work in the industry. Many believe that the short-term nature of fruit picking, weather conditions, transport to and from farms and low wages are issues that put Australian workers off.

Citrus Australia CEO Nathan Hancock said that the reluctance of Australian workers to undertake horticultural work was the reason the working holiday and seasonal workers were created.

“Over the last 20 years, various federal governments have worked to create programs like the working holiday visa and the seasonal worker programs because that gap exists ,” Mr Hancock said.

“To fill using Australian workers, it just hasn’t been a success in the past.”

“We hope that changes, but I can’t see the future being a rosy one without working holiday-makers.”

Sources: ABC , ABC

Drawing a Line in the Wine: China Launches Anti-Dumping Probe into Australian Wine

Mon, 31 Aug 2020 04:40:05 GMT

The Australian wine grape industry is the latest agricultural sector to be in the firing line after the Chinese government announced a new anti-dumping investigation.

The news comes after China imposed a prohibitive tariff on Australian barley in May this year while concurrently suspending imports of meat from four abattoirs.

The move is seen as being an act of aggression by China, angered by Australia’s involvement in calling for an enquiry into the origin of Corona virus.

As Australia’s most significant trading partner, ongoing embargos have the ability to hit Australia where it hurts the most. One in three export dollars comes from China, and 52 million Chinese wine drinkers collectively spend $1.2 billion a year on Australian wine. Around 62% of Australian wine is exported to China, presenting a potentially hefty glut if the enquiry finds Australia in the wrong.

In addition to China’s thirst for Australian wine, recent growth in export value has come from the sale of premium wine – a product segment favoured by Chinese consumers. Despite China’s rank as the most valuable buyer of wine, the Asian superpower ranks third behind the UK and US in terms of the volume of wine purchased (14.2 million 9 litre cases in FY 2019-2020). Sales of wine valued between $40 and $100 per litre increased by a staggering 59% in the 2019-2010 financial year. Wines in the $100-$200 and $200+ per litre range also enjoyed strong growth (35% and 22% respectively) while all price segments below $15 per litre shrank.

If trade restrictions are placed on Australia, the wine industry could target other growth markets to help stem the damage. Europe and South East Asia both performed well in the last financial year with Singapore increasing its consumption by 13% to $98 million and sales to the UK increased by 3% to $383 million. While there are certainly opportunities to increase sales to alternative trading partners, sales of wine to the US, UK, Canada and Singapore would have to double in order to completely mitigate losing the Chinese market.

News of an impending restriction in trade is a blow for the Australian wine industry which has had a mixed year. Wine Australia announced that the average value of Australian wine exports has grown to $3.89 per litre free on board, the highest level since 2004-2005. That takes into account the impact COVID-19 had on both demand and the availability of distribution channels.

“The advent of COVID-19 pandemic has resulting in unprecedented disruption to wine markets around the world with the closure of restaurants, cafes and bars,” said Andreas Clark, the Chief Executive Officer of Wine Australia.

Despite favourable export figures, this year’s national wine crush was the smallest since 2007 with Australian wine makers crushing 1.52 million tonnes, the equivalent of one billion litres of wine. The 2020 vintage is 13% lower than the 10-year average of 1.75 million tonnes, supressed by frost, drought and bushfires which have had a significant toll on Australia’s smaller wine makers.

Janice McDonald – head winemaker at Howard Park Wines in Western Australia – said that weakened yields were likely to put a financial strain on many small-scale producers around Australia.

“From the beginning of the season we have the same inputs – pruning vines, shoot thinning – you have the same inputs,” she said.

“Ultimately if your yields are much lower it means your fruit is costing you more, which means your wine is costing more. We can’t just put our wine prices up to compensate so it becomes really difficult and that is probably the most challenging thing in a year where the yields are very low.”

Sources: Wine Australia , ABC , ABC

The Only Way is Up: Stacked, Soil-Free Farming Provides Food for Thought

Tue, 28 Jul 2020 04:54:57 GMT

While rooftop dining has become a popular past time in many cities around the world, the use of roof space has also gained popularity among urban farmers.

In Paris, one grower has blended aeroponics with vertical farming on city rooftops to understand the potential to produce food for urban communities.

Like hydroponic farming, aeroponics is characterised by a lack of soil. But instead of plant roots being submerged in water they receive a continuous fine spray of water and essential nutrients.

Early adopters of the movement say that there are significant advantages to aeroponics. Crops yield more produce than conventionally grown counterparts, with one study indicating that capsicums yielded 65% more when grown aeroponically. Water use is up to 90% lower than other farming methods, and the use of pesticides and fungicides is also significantly reduced.

According to Pascal Hardy, the brains behind the Paris experiment, the benefits don’t end there.

“It uses less space. An ordinary intensive farm can grow nine salads per square metre of soil; I can grow 50 in a single tower. You can select crop varieties for their flavour, not their resistance to the transport and storage chain, and you can pick them when they’re really at their best, and not before,” he said.

Mr Hardy started growing food in vertical towers on the rooftop of his own apartment building five years ago. Today, his project spans several buildings including a research and development site on top of a gym and the most recent acquisition, 14,000 square feet atop a new exhibition building in the southern 15th arrondissement.

The new site is now the world’s largest urban rooftop farm, and the first crops of strawberries, basil, sage, peppermint, lettuces, cherry tomatoes, and eggplant have recently been harvested.

In full production, this site alone will yield up to 1000kg of produce per day.

Nature Urbaine is already supplying produce to local residents, caterers and wholesalers, offering a further benefit to the system.

“[Food is] produced up here, and sold locally, just down there. It barely travels at all,” he said.

“I don’t much like the fact that [conventionally-grown food] travelled an average of 2,000 refrigerated kilometres to my plate, that their quality is so poor because the varieties are selected for their capacity to withstand that journey, or that 80% of the price I pay goes to the wholesales and transport companies, not the producers.”

With wholesaling and freight costs all but eliminated, there are potential margin gains to be had. Sold online, direct to the consumer, Nature Urbaine’s produce is marketed at a price between conventionally-grown and organic foods. Set up costs are modest – around AUD$200 a square metre. Roof top farms benefit from free sunshine, meaning electricity consumption is a fraction of the energy used by other emerging indoor farming models.

The main restriction is the amount of available roof top space, and the price that owners may start to charge as demand rises.

For Mr Hardy, the potential benefits of his farming system surpass the economics to offer urban communities a sustainable approach to food production.

“It is a clean, productive and sustainable model of agriculture that can in time make a real contribution to the resilience – social, economic and also environmental – of the kind of big cities where most of humanity now lives,” he said.

“And look: it really works.”

Sources: Food Navigator , The Guardian

Government Slashes the Cost of Agriculture Degrees

Fri, 24 Jul 2020 05:07:25 GMT

The Federal Government has slashed the price of agriculture degrees, wiping 62 per cent off fees from 2021.

Agriculture degrees will move to the band one tier of courses, which attract an annual fee of $3,700. Other band one courses include teaching, clinical psychology, English, maths, nursing and languages.

The move to reduce fees reflects the government’s push to increase the number of agriculture graduates and to increase the level of education of regional areas.

Minister for Education Dan Tehan announced the changes during his Press Club address last month.

“To deliver cheaper degrees in areas of expected employment growth, students who choose to study more popular degrees will make a higher contribution,” he said.

The Minister outlined a raft of measures designed to improve the participation in education by regional students, including increasing the number of university places in regional Australia by 3.5 per cent per year. Students from regional or remote areas will be eligible for a payment of $5000 plus a Fares Allowance to allow students to travel home during their first year of study.

National Farmers’ Federation president Fiona Simson said she supports the Government’s position towards educating the next generation of farmers and agriculture professionals.

“It really seems like a commonsense announcement by the Federal Government to reduce the course fees for subjects, particularly in the agriculture-related disciplines,” she said.

“Our aim is to double the number of ag graduates by 2030. This lessening of course fees of about 62 per cent is really going to go a long way to making sure we can keep bringing the best and brightest into agriculture.”

“The future of humanity relies on food and agriculture”

Director of strategic projects at Southern Cross University, Lorraine Gordon, said that the Government’s move would help universities to play a part in the future of food production and environmental management.

“The future of humanity relies on food and agriculture,” she said. “And us being able to equip students in those regenerative practises that also look after the environment while we produce food.”

Southern Cross University’s new regenerative agriculture degree was swamped with 100 entrants last year, making it the most popular agriculture course in the country.

Ms Gordon expects demand for the course to be stronger in 2021, as students take up the opportunity of a cheaper education.

“There is no cap on this; we will take as many students as we can because we are about actually changing the status quo.”

Sources: ABC , Ministers’ Media Centre
Image: By the University of the Fraser Valley , republished under an attribution 2.0 Generic (CC BY 2.0) license.

New Zealand Farmer Smashes His Own Wheat Yield World Record

Fri, 24 Jul 2020 05:03:45 GMT

Eric Watson, a farmer from Ashburton on New Zealand’s South Island, has set a new Guinness World Record for his wheat crop which yielded 17.4 tonnes per hectare.

Mr Watson held the title for his 2017 crop which yielded at 16.8 tonnes per hectare until he harvested his most recent crop in February this year.

Farming on the Canterbury Plains provides the Watsons with a near perfect environment for growing crops and, in particular, ultra-high yielding cereals. The region’s fertile soils, abundance of rainfall and sunlight provide locals with a long, slow growing period. Mr Watson’s wheat crop was sown in April last year, growing for 300 days before it was harvested in mid-February this year.

Selected for its yield potential, Mr Watson planted Kerrin wheat and used a high input approach to maximise his investment.

“By trying new cultivars, switching to liquid nitrogen and monitoring plant health more regularly, we were able to achieve another incredible result,” he said.

Internationally, Scotland is the next best player in the biggest yield stakes. Donald Ross from Rhynie in north east Scotland has won several awards for his crops including a silver medal for a yield of 14.8 tonnes per hectare in 2017. In some spots of the paddock, his yield monitor indicated the crop was yielding up to 18 tonnes per hectare.

The Australian average wheat yield is around 2.5 tonnes per hectare.

Research by Dr Allan Peake, an irrigated grains researcher from Toowoomba, suggests that Australia’s highest yielding wheat crop was grown by Michael and Fiona Chilvers from Evandale in Tasmania. In 2015, they sowed Einstein wheat which received 225 millimetres of irrigation and a total of 124 kilograms per hectare of in-crop nitrogen.

The resulting crop was verified at the weighbridge to have yielded 12.46 tonnes / hectare with 11.8 per cent moisture and 10.5 per cent protein.

Dr Peake’s research indicates that the Gilberton family at Millicent are the highest grossing dryland wheat growers, reaping a crop of 11.5 tonnes per hectare in 2016. The Gilbertons sowed LongReach Trojan wheat into broad bean stubble at the beginning of June with 165 kg / hectare of nitrogen applied in-crop. With a shallow water table, the crop may have accessed ground water in addition to rainfall during the growing season.

More Record Breaking Farming Feats

In 2018, UK TV show Top Gear broke the world record for the world’s fastest tractor (modified) after the Stig navigated the 500 bhp ‘Lamborghini-inspired’ vehicle around the Bruntingthorpe Proving Ground. The ‘Track-tor’ recorded a top speed of 147.929 kilometres per hour.

The most expensive pork carcase ever sold fetched JPY 1,394,690 (AUD $18,117) and the largest litter of pigs is 37, born to a sow in the United Kingdom. Canadian dairy cow Smurf holds the record for the most milk produced in a lifetime, yielding 215,891 kg of milk by the time she was 15. Big Bertha was the world’s oldest cow, reaching 48 years before she died in 1993 in Ireland.

The biggest wool clip from a single sheep was 41.1kg. Chris, a lost Merino ram, was found wandering around scrubland near Canberra and rescued by the RSPCA before being shorn.

Sources: ABC , GRDC , Farmers Weekly , Guinness World Records ,

Wool Industry Revisits On Shore Processing as COVID-19 Highlights Reliance on China

Fri, 24 Jul 2020 04:59:28 GMT

Players in the domestic wool industry have renewed calls for the government to support the rebuilding of the Australian wool processing sector.

As current supply chains are affected by COVID-19 disruptions, wool growers are becoming increasingly concerned that a reliance on Asian processors poses a risk to the sector.

As well as consumers having an increasing interest in the provenance of their fibre, Trish Esson, a niche cashmere and wool processor from Victoria, said that having most wool processed in China could be an issue in the future.

“The word that we are hearing is that people are starting to take notice of where things are coming from,” she said.

“Wool growers have put all their eggs in one basket, [raw wool] predominantly goes to China.”

“If something goes wrong with the Chinese end, or they do like they have done – threaten to cut off buying stuff – then where do the Australians go? They need more markets.”

Despite the significance of the sheep industry in the initial development of the Australian economy, the domestic wool processing industry was offshored during the 20thcentury as rising energy and labour costs reduced profitability.

But according to one of the last remaining domestic wool processors, Michell Wool, those barriers have been reversed.

Advances in technology and automation have meant that processing wool in their Australian factory is now cheaper than their China site.

“We’ve put a lot of work into automation; we’re looking for that 1 per cent gain in everything we do, said David Michell.

“In China, it’s very much people first and machinery second, so I think it’s a whole different philosophy in how you run a factory.”

Mr Michell has also seen a positive impact from changing consumer preferences on demand for Australian-processed fibre.

“There’s been a trend in the last 10 years to move production back to Western countries to service Western markets, and I think that that will increase.”

Ag Minister Backs Potential for Onshore Processing

Victorian Agriculture Minister Jaclyn Symes has expressed her support for an Australian wool processing sector, saying that there were a raft of benefits for the industry and consumers.

“Not only as the coronavirus pandemic identified how important our agriculture sector is, it has again highlighted a desire for Australians to want to become more self-sufficient,: she said during a Rural Press Club of Victoria webinar earlier this month.

“As a government, particularly as the Minister for Regional Development, I am always interested in ideas and ways to create more country jobs, and if that is in the wool industry, I’m all ears.”

As a key supporter of onshore wool processing, The National Farmers’ Federation has called for the government to support sector development through by cofounding capital investments, providing tax offsets and by investing in research and development.

The NFF’s chief executive Tony Mahar said that technology was key in developing a sustainable wool processing sector.

“We need to have the food and fibre value-adding and processing here in this country,” he said.

“We have seen improvements in technology. Things are cheaper, things are more efficient to run.”

“It’s timely to have a look at it, so if it’s viable and we can get governments to commit to it, I think it will have a real beneficial impact in rural and regional Australia.”

Sources: ABC , Sheep Central
Image: By Bjoertvedt , published under a Creative Commons Attribution-Share Alike 3.0 Unported license.

Smart Farts: How One Farmer’s Quest for Carbon Neutrality is Burping Dividends

Thu, 25 Jun 2020 05:34:43 GMT

For Queensland pig farmer Laurie Brosnan, improving the carbon footprint of his farm has not only alleviated a significant waste issue, but has reduced his electricity bill by $600,000 per year.

Mr Brosnan installed an on-site biogas plant that turns pig effluent and cattle paunch into methane, which is then used to power the farm.

The system generates enough electricity to power 30 farm buildings, the property’s irrigation system and return 80kW of power to the grid, reducing his electricity costs from $50,000 per month to $130.

For every kilowatt of electricity produced, the system also generates a kilowatt of heat, which is used to keep piglets warm, saving another $2000 per month.

“We’ve replaced our LPG gas heaters. We have heat exchanges and we are using that hot water to keep piglets warm,” said Mr Brosnan.

BettaPork, which runs 16,000 pigs, produces 280,000 litres of pig effluent per day, which is then mixed with 22 tonnes of cattle paunch – the stomach contents from cattle carcases – supplied by a local meatworks.

The effluent and paunch are mixed in tanks on farm and then treated by an anaerobic digester which breaks the waste down to produce methane.

“The bacteria basically farts and creates the gas that goes into the engines, and the engines power the whole site.”

Mr Brosnan was initially driven to install the system as a way to improve the carbon footprint of his operation.

“I’m not going to say we are [carbon] neutral but we are doing our darndest to do the right thing for the environmental for future generations.”

“It just so happens that a plus is the cost advantages too.”

Collaborative Approach to Biogas for New South Wales Dairy Farmers

The use of biogas technologies will be trialled in New South Wales where a cluster of dairy farmers have partnered with energy company Innovating Energy.

Eighteen dairy farmers around Nowra on the state’s south coast have mobilised to create a shared biogas plant. Manure from each farm will be collected and used to generate methane and then electricity.

The electricity will be shared between the group’s farmers with the balance sold to retail customers.

In addition, the by product of the biogas process is a nutrient-rich loam which can be used as a fertiliser.

“Using manure from the dairies to run the biogas plant will not only provide clean renewable energy, but once fully operational it will address the challenges of manure storage over the year,” said Ian Zandstra, a dairy farmer involved in the project.

“It will allow a timely spreading of nutrient rich organic fertiliser on the farms from the biogas process, which is great news for the local environment.”

Tim Cochrane, another member of the trial group, said that there were a range of benefits to be realised by the new system.

“The plant will provide significant cost benefits and energy savings for dairying in the area and greatly assist in dealing with manure clean-up.”

“Rising energy costs are a major consideration in operating dairy farms, particularly the costs associated with keeping milk at the required temperature prior to pick up by the processors,” they said.

The project received funding from the federal government’s Microgrid Energy Initiative.

Sources: ABC , Food and Drink Business

Northern Australian Seafood Industry to Explode over the Next Decade

Thu, 25 Jun 2020 05:31:05 GMT

The Northern Australian aquaculture industry has the capacity to grow five-fold over the next ten years, exceeding an annual turnover of $1.34 billion.

That’s according to a report released in May this year by the Cooperative Research Centre for Developing Northern Australia (CRCNA).

The document outlines the potential for the creation of 2,340 jobs across sectors including fish, prawns and other seafood products.

One significant growth area identified through the report is inland aquaculture with the potential for 500,000 to 700,000 hectares suitable for “marine farming in earthen and lined ponds”.

According to the report, up to 50 times this area is available for fresh water aquaculture operations.

James Cook University professor Dean Jerry said the research had developed a clear picture for the strategies required to ensure industry growth, including better biosecurity, improved market access, research and development.

“A more coordinated approach across the sector is needed to support stronger biosecurity protocols and infrastructure investment, good RD&E and production outcomes, strong marketing efforts and an increase in global demand to fully realise our 2030 vision.”

One sector ready to reap the rewards of research and development is the redclaw crayfish industry.

Native to northern Australia, redclaw crayfish have developed a reputation as a high-end delicacy with demand growing at a rapid rate.

Townsville-based Australian Crayfish Hatchery (ACF) has developed in vitro embryo technology specific to the redclaw crayfish, which significantly speeds up the breeding process.

Until now, sector growth had been stymied by a single annual breeding crop that suffered significant production losses. Redclaw crayfish grow-out farmers have traditionally relied on inefficient breeding process with significant production losses.

“The major problem in the past was that production of seedstock was an ad-hoc affair. Mum and dad were put in ponds and the hope was they produced offspring,” said marine biologist Lisa Elliot from ACF.

“We’ve actually been able to take the eggs from the females, hatch them and produce craylings, baby crayfish, at a known age and number.”

ACF’s hatching process takes place on the edge of Townsville where thousands of eggs are grown. Once commercially available, farmers will be able to buy craylings at 10 millimetres and grow them to 600 grams ready for market.

For farmers like Andy Gobsell from Gympie, access to ACF’s craylings will be a game changer.

“For redclaw farms to boom, and this industry will boom with this new technology, they need to go to a grow-out phase and let someone else do the breeding,” he said.

“That way, you literally can do two crops a year instead of one every 12 months.”

Sources: Food and Drink Business , ABC

Dried Fruit Grower Capitalises on Property Acquisition as Export Demand Outweighs Supply

Thu, 25 Jun 2020 05:17:20 GMT

Golden Dried Fruits (GDF) signed a long-term lease on Advinco Farm in Nangiloc, in a move that will make the company the largest grower of dried grapes in Australia.

The 750 hectare Sunraysia property will inject around 3,000 to 4,000 tonnes of additional volume into the business over the next three to five years once production gains are realised.

“It needs a lot of TLC, a good drink and a good feed, and maybe two or three years of diligent farming practices to bring it back to decent health,” said Craig Greenwood, chief executive of Australian Premium Dried Fruits, a subsidiary of GDF.

“But in an industry where supply is declining, to be able to sign up a property that represents this volume is a great result for any dried fruit company.”

Mr Greenwood said that despite strong demand for Australian dried fruit, many growers were exiting the industry.

“We’ve probably seen 10 to 20 per cent of our grower base move away from the industry in the last two years, which is a massive decline and a big problem for the dried fruit industry.”

Many dried fruit growers are nearing retirement with small, low-yielding farms. With scale and time working against them, many have sold out to the table grape market.

“Table grape growers have had quite a good time of it lately, buying up a lot of these dried fruit properties,” he said.

The acquisition of the new property will see an investment of “many millions of dollars” into the region, including a significant boost to local employment.

“The Advinco Farm is more than three times the side of our existing property down there, so we need quite a few new staff. For a farm that size, maybe somewhere between 20 or 30 full-time people as well as extra contractors during harvest time.”

With strong demand for dried fruit, Mr Greenwood said that it was the ideal time to expand their holdings.

“We send about 80 per cent of our fruit into the domestic market and we’ve got some very high-grade traditional export markets in Europe.”

“Germany and Italy are still very strong buyers of Australian five-crown sultanas.”

In 2016 – 2017, the value of dried grapes (sultanas, currants and raisins) alone was $29 million, with exports at $18.7 million.

While Europe has been the traditional export partner for the dried fruit sector, interest from Asia is increasing with overall demand exceeding supply.

“We’re getting orders all the time,” said Mark King, chair of Dried Fruits Australia.

“Before the virus came, people would come up and say they wanted a few thousand tonnes of dried fruit, so we’d send them on to one of the three big processors [Sunbeam, Murray River Organics and Australian Premium Dried Fruit] who’d tell me later, ‘That bloke wanted 500 containers and we started them off with one’.

“With competition out there like that … if you can grow 4 tonnes to the acre, the returns are very good.”

Sources: Plant Health Australia , ABC

Booze, Cars and Visas: Australia – UK Free Trade Agreement set to Protect and Enhance Export Opportunities

Thu, 25 Jun 2020 05:11:44 GMT

Official discussions to form a free trade agreement between the United Kingdom and Australia begin online next week, with many industry bodies expressing their support for improved market access.

The food and beverage industries are seen as being particular features of the bilateral agreement, in addition to working visas for young people. It is hoped that the deal will also reduce red tape for small businesses setting up overseas.

WoolProducers Australia, the red meat sector and the wine industry have all signalled their support for a free trade agreement between the two countries, with a signed deal expected by Christmas.

“This announcement marks a very important step in the continuation of the Australian Government’s ongoing effort to boost Australian agricultural exports, and could not come at a better time as the sector works to recover from Covid-19,” said Tony Battaglene, chief executive of Australian Grape & Wine.

“Australia’s long-standing wine-export relationship with the UK can only be strengthened by this FTA, driving opportunities for Australian grape growers and winemakers to deliver their wines to British consumers.”

“[There is] quite a lot of booze flowing between the UK and Australia,” said Liz Truss, the UK’s Secretary of State for International Trade.

In 2018, Australia exported $389 million of wine to the UK, representing the largest export market for the industry. In the same year, Australia bought almost $351 million of UK beverages and spirits, most notably whiskey and gin.

Meanwhile, the red meat industry is hoping that the free trade agreement could increase access to the lucrative UK market.

“Whilst an enduring partner, Australia’s beef and sheepmeat access has been limited by virtue of the UK being a member of the EU,” said Andrew McDonald, Chair of the Australia-UK Red Meat Market Access Taskforce.

“Compared with many other countries supplying the EU, Australia has disproportionately low volume quota access coupled with trade prohibitive above quota tariffs. This import regime has stifled Australia’s ability to respond to growing UK consumer demand for high quality beef, sheepmeat and goatmeat.”

Mr McDonald’s sentiment is shared by Cattle Council CEO Travis Tobin who is lobbying for easier access for prime beef cuts.

“Brits were eating Australian beef for decades before joining the EU – they know it’s a good product. For example, more than 100,000 tonnes of beef was shipped to the UK in 1973,” he said.

According to Meat and Livestock Australia, beef exports to the UK in 2018 totalled just 4,395 tonnes.

“[British consumers] demand the world’s best and we lead the world in eating-quality, nutrition and sustainability.”

“Our $19 billion beef business will strengthen long-term food security in the UK. And with 66 million customers, the UK is potentially a big market for Australian producers.”

UK Prime Minister Boris Johnson recently hailed talks with Australia as a chance for Brits to have access to an Australian icon.

“How long can the British people be deprived of the opportunity to have Tim Tams at a reasonable price?”he asked.

Arnotts responded to the PM by suggesting a line of UK-inspired Tim Tam flavour combinations including scotch eggs, and bangers and mash.

Sources: Sydney Morning Herald , Wine Australia , Trading Economics , The Drinks Business , MLA ,

Drought, Fire and a Global Pandemic: Australian Agriculture Well Placed to Weather the Storm

Tue, 26 May 2020 05:58:31 GMT

Despite widespread drought, bushfires and the COVID-19 pandemic, Australian agriculture is well positioned to weather the economic uncertainty, according to recently released data.

Excellent opening rains in many regions along with a positive outlook for the rest of the season are working in the favour of Australian grain growers and livestock producers. While grain growers in Western Australia are awaiting decent rains, 20 per cent of New South Wales has moved out of drought.

Factors working against producers include the impact of social distancing measures on the food service industry, and the flow on effect to producers supplying the sector. There are also concerns about labour shortages and how they might affect sectors which rely on a high volume of staffing to manage peak seasonal work loads.

The exchange rate has fallen out of favour for those who rely on international markets for inputs, but this could also benefit growers who sell offshore.

The latest hit to Australian agriculture was the 80% tariff imposed by the Chinese Government as punishment for allegedly selling barley at a price cheaper than Chinese domestic barley growers. While a decision was expected on the case this year, it’s widely believed that the tariffs have also been motivated by China’s disdain for Australia’s position on an international inquiry into the origin of Corona virus.

In addition to the tariffs, China also put a stop to imports from four Australian red meat avvatoirs on account of “technical infringements”.

National Australia Bank reported that fresh fruit and vegetable prices increased by 10 and 20 per cent respectively in March this year, but labour shortages posed a risk to the horticulture sector’s ability to fulfil key seasonal tasks.

Another challenge for the industry is Australia’s dwindling livestock numbers with the national sheep flock at its lowest level for more than 100 years. Recent rains will encourage many producers to start restocking and breeding, which is likely to keep prices steady for the rest of the year.

“We’re going to be producing less meat if we have a restocking phase,” said Phin Ziebell, an agribusiness economist with NAB.

“Because cattle will be held over [for breeding] that actually means lower production, but I don’t think it’s a negative for the industry.”

On the fibre front, the wool sector could be facing a storm of uncertainty. Almost 75% of Australia’s raw wool is sold to China, and around half that is consumed domestically. The balance is sold to Europe and the United States, markets which have been deeply affected by unemployment.

The Australian fashion industry is experiencing a massive drop in sales with 43% of retailers surveyed saying that they were not confident that they would rebound financially and 23% reporting that they were certain they would never financially recover.

Sources: ABC , ABC , The Conversation , ABC

Barley Sector Hit With 80% Tariff by Chinese Government

Tue, 26 May 2020 05:50:01 GMT

China has sent a strong message to the Australian Government, implementing a staggering 80 per cent tariff on barley imports.

It’s a move that could seriously damage the barley sector which is Australia’s third most valuable export to China, valued at around $1.5 billion per year.

While a decision from China’s investigation into anti-dumping claims was expected this month, it is likely that Australia’s position on an international enquiry into the origin of the Corona virus is a significantly influencing factor for the Chinese Government.

In addition to the new tariff on barley, the Chinese government also suspended imports from four of Australia’s largest red meat abattoirs earlier this month. The dairy sector also feels particularly vulnerable to the situation with China buying 33 per cent of exported dairy products per year, valued at $1 billion.

The situation adds insult to injury for many dairy farmers who have faced drought, low margins and supermarket price wars over the last few years. In 2019, the Australian dairy sector lost 500 farmers.

For dairy farmer Malcolm Holm, news of China’s increasing hostility dampens a strong seasonal outlook. His farm near Deniliquin received excellent autumn rains after several dry years.

“The country is looking really good,” he said.

“The dairy industry hasn’t had any clear air for years and years. And the recent drought has just exacerbated that. Farmers have felt the pressure whether they’re in the domestic or export market. In our region around the year 2000 we had 200 dairy farmers. Now we’re down to 40.”

Barley Background

In 2015, the China-Australia Free Trade agreement removed Chinese tariffs on Australian barley. The removal was accompanied by a clause – that China could impose a tariff if Australia was found to be selling barley into China at a cheaper price than Chinese domestic producers.

China has imported the lion’s share of Australian barley over the past few years. Between 2015 and 2018, Australia exported an average of 4.6 million tonnes worth $1.3 billion and representing 70% of Australia’s exported barley.

In 2018, the Chinese barley industry asked for the government to introduce an anti-dumping tariff on Australian barley of 56.14%. After China investigated the claim, they increased the proposed tariff to 73.6%. China’s ruling earlier this month accepted the 73.6% recommendation and added a “subsidy margin” of 6.9%.

Another factor in China’s aggressive response is Australia’s use of anti-dumping measures on imported goods from China, including Chinese steel. That the decision was due as Australia and its allies were calling for an investigation into the origins of COVID-19 was an act of terrible timing.

While there are legal avenues that can be pursued by Australia, the process is lengthy and a win is not guaranteed. Even if Australia was to win, China could reinvestigate anti-dumping claims and maintain their original position.

The tariffs will apply to four exporters – The Iluka Trust, Kalgan Nominees Pty Ltd, JW & JI McDonald & Sons and Haycroft Enterprises.

The tariffs came into effect from May 19thand will apply for five years.

Sources: Sydney Morning Herald , The Conversation , Australian Financial Review

Image by Williamsangelack shared under a CC3.0 license .

Spot the Robotic Dog Highlights the Potential for AgTech

Tue, 26 May 2020 05:42:17 GMT

Technology has been applied to diverse facets of agriculture, from monitoring crop health to tracking yields and improving the precision of a variety of tasks across all sectors of the industry.

But what if technology could replace the humble working dog?

That’s a question being posed by Boston Dynamics, a Massachusetts-based robotics company that has developed Spot, a robot capable of working across diverse environments.

Spot was originally developed for a range of applications outside agriculture. Boston Dynamics promotes Spot as being suitable for inspecting high risk sites such as construction, oil and gas and mining.

During the pandemic, Spot was deployed to counsel patients and enforce social distancing guidelines. Healthcare is another realm that the developers see as being a fit for Spot, including Spot’s ability to “triage patients, deliver food and medicine, or disinfect rooms from afar.”

In a recent collaboration with New Zeland robotics firm Rocos, the developers sought to see what capability Spot might have on farm.

“We were interested in what the future holds for robotics and we thought it might be interesting to take Spot to a sheep and beef station and let it run around,” said Rocos’ David Inggs.

“We didn’t really have expectations that it was going to be replacing the dogs on the station but we were incredibly surprised at how agile the dog was and it gave us a very interesting look of what the future holds.”

In addition to working sheep, Spot was also used to inspect crops and collect valuable information which it can then transmit back to a central data point for a farmer to analyse and use in decision making.

“Equipped with payloads like heat, LIDAR, gas and high resolution camera sensors, Spot navigates rugged environments to capture data in real time – feeding this data back into existing business systems, wherever they are located.”

“In agriculture, farmers can access information such as more accurate and up-to-date yield estimates. This provides access to a new category of automation, and a safer, more efficient business.”

Spot can be operated remotely meaning that it could offer farmers a greater range of flexibility in managing their farms, with the ability to traverse fairly extreme terrain reducing the risk for famers and employees.

While the trial was a proof-of-concept activity rather than a strategy to commercialise Spot for agricultural purposes, the partnership has shown how versatile robots are in terms of the scope of their abilities as well as the breadth of the industries that they apply to.

And in case you were wondering, it seems that Spot was accepted by its canine counterparts.

“The really interesting thing is that domestic dogs really don’t like Spot at all they find that it’s a very strange machine or weird animal but the farm dogs didn’t react at all they just treated it just like a farm bike, just like another machine that was on site and the sheep actually just manoeuvre away from spot as if it was another dog.”

“I’d say Spot is no where near close to replacing those dogs, they have generations of breeding and instinct that AI is a long way off replicating but it did show how many us cases it is valuable already.”

Sources: BBC , Mashable , Rocos , Boston Dynamics

“An Historic Day for Farmers” – South Australia Lifts the Ban on Genetically Modified Crops

Tue, 26 May 2020 05:38:34 GMT

Mainland growers from South Australia will soon be allowed to grow genetically modified crops, after new laws were passed through state parliament.

The legislation, which is the result of an agreement between the Liberal state government and Labor opposition, signifies the end of the moratorium put in place by the Labour government in 2003.

Kangaroo Island will continue to remain GM-free. South Australian regional councils will have six months to consult with local growers and food producers before deciding on whether to apply to remain GM-free.

“South Australian farmers have been looking forward to this day for nearly two decades,” said Primary Industries Minister Tim Whetstone.

“This agreement is a great outcome for South Australian farmers who will have the opportunity to reap the beneifts of growing GM where that is best for their business.

“By lifting the GM moratorium on mainland South Australia, we are backing our farmers and researchers to grow the state’s agriculture sector and create jobs.

“Now our grain growers have the certainty they need to invest in GM seed and plant GM crops in time for the 2021 grain growing season.

Opposition primary industries spokesman Eddie Hughes said that lifting the moratorium would provide a benefit to farmers while also allowing sceptics to air their concerns.

Mr Hughes said that while Labor supports the role of genetically modified crops, that some growers felt that there was a market advantage to be gained from being GM-free.

But Greens MP Mark Parnell said that the new legislation would undermine South Australia’s strategy to be renowned as a “clean, green” food bowl.

“They recognise the importance of South Australia remaining the only mainland GM-free state, a place where we can promote out natural clean and green image, especially to growing overseas and domestic markers,” he said.

In 2019, the state government commissioned an independent report which revealed that restricting the use of genetically modified crops had cost the state’s farmers at least $33 million over the past 15 years.

Mr Whetstone said that the passing of the legislation represented “an historic day for farmers in this state who can look forward to the choice in what they want to grow.”

“Lifting the moratorium will not only provide economic benefits for our farmers but it will put South Australia on a level playing field with every other mainland state in Australia which has had access to GM technology for at least a decade.”

Sources: Canberra Times , 9News

Penfolds Demerger Likely as Treasury Wine Estates Looks to Sift the Premium from the Plonk

Tue, 28 Apr 2020 06:07:39 GMT

Australia’s largest wine company, Treasury Wines Estates (TWE), is likely to hive off its luxury Penfolds brand by the end of 2021.

The move comes after TWE announced a 17 per cent drop in earnings from America, down to $98.3 million. While the company’s global performance was up by 5.1% for the six months to December 2019, TWE have expressed concern about the effect of drought, heat and fires in Australia, along with the impact of COVID-19 on sales and logistics.

TWE’s share price took a nosedive in January this year, tumbling by 30 per cent and wiping $3.85 billion of its value. The free fall came after TWE reduced its profit forecast amid fears of increasing competition in America, as well as the likely impact of Corona virus – particularly on high end sales into China.

In a move hailed by some as well overdue, TWE has indicated that the company is strongly considering the demerger of Penfolds to improve the ability of both businesses to focus on different segments of the market.

“A demerger of Penfolds will create incremental long-term value for shareholders. We believe that both Penfolds and the remaining TWE [labels] will be better positioned to pursue their own strategic priorities independently, and deliver a stronger long-term growth profile,” said TWE CEO Michael Clarke.

“Penfolds accounts for approximately 10 per cent of our volume, but well over half of our earnings, with unique resources and a differentiated execution focus compare to the remainder of our business,” he said.

The proposed Penfolds enterprise would include Grange, Bin 407, Bin 389 and more, while “New TWE” would retain Wolf Blass, Lindemans, Seppelt, Jamieson Run and Beringer and others.

Current shareholders would be awarded shares in both new entities, with TWE forecasting that the demerger would make Penfolds an ASX top 50-100 company, and New TWE to be a top 100-150 company.

Craig Woolford, an analyst at Citi, valued the new Penfolds company at about $6.5 billion and New TWE at around $2.1 billion.

Penfolds Win the Right to Chinese Name

Earlier this month, TWE won a ten-year legal battle to register their preferred trademark in China.

“Ben Fu”, which literally means “chasing prosperity”, has been hotly contested by TWE and copycat and counterfeit brands, creating a legal nightmare for the TWE’s North Asia division.

Ben Fu was originally registered in China in 1995 by an agent of Penfolds. When the agreement between the agent and Penfolds ended, the registration lapsed, allowing squatter labels to register the Ben Fu name.

In 2014, Penfolds wines were withdrawn from all Chinese Intercontinental Hotels after the chain was threatened with legal action from Li Daozhi who had registered the Ben Fu trade mark after the original trade mark application had lapsed. At the time, it was estimated that Intercontinental Hotels accounted for 5% of Chinese sales of Penfolds, igniting a bitter legal battle between the two entities.

This month, Chinese courts approved the application of TWE to use the Ben Fu trade mark, rejecting the application and counter claims made by Mr Daozhi.

“[This is a] significant milestone for the company since it cements TWE as the legitimate registered trademark owner of the “Ben Fu” brand, which is one of the most recognised wine brands in China,” said Tom King, the managing director of TWE North Asia.

“Protecting the integrity of our historic wine brands against trademark piracy and misappropriation has always been a priority and we have never wavered in our commitment to this endeavour.

“We are delighted with the outcome, as it gives us even greater ability to enforce the protection of our brand in line with our zero-tolerance approach to IP infringements, including counterfeit and copycat brands.”

Sources: McIvor Times , Sydney Morning Herald , The Drinks Business , Lexology

Social Isolation Measures Provide Producers with a New Opportunity for Direct-to-Consumer Sales

Tue, 28 Apr 2020 05:13:39 GMT

While the COVID-19 pandemic has caused chaos in supermarkets around the world, changing consumer behaviour has had a positive impact for some segments of the market.

Producers who sell direct to the consumer have seen a significant lift in sales as customers look to avoid supermarkets amid social distancing concerns.

For many producer-led food brands, the affects of Corona Virus on the food service industry has forced a change their market focus from hospitality to consumers in order to mitigate losses, a strategy that has worked in favour for some.

“We’ve seen an 85 to 100 per cent increase in order this month alone,” said Debbie Richardson from Running Creek Beef.

Mrs Richardson’s business, which is located on the Queensland / New South Wales border, previously relied on food service trade and on-farm tourism, which were both obliterated after COVID-19 restrictions were imposed.

But a spike in direct-to-consumer sales has helped the enterprise to stay afloat amid the pandemic, establishing a new network of valuable clients.

“Our beef is our lifeline at the moment,” she said, “had we not had those additional orders, we would not have covered our costs and about 200 kilos of beef would have had to be put in the freezer.”

While the spike in sales may be partially attributed to panic buying, Mrs Richardson also sees the benefit of increasing her customer base.

“I do feel there is some additional quantity buying going on, people have bought a bit more and we’ve had a lot of new customers too.”

Bulk Sales to Consumer a Winner for Premium Pasta Brand

For South Australian brand Pangkarra Foods, the freeze on the food service sector has also forced a shift in their marketing strategy.

Earlier this year, the company developed a new range of pasta in 5 kilogram cartons with the aim of improving sales in the food service sector. Their first batch of wholesale products hit their warehouse shelves just weeks before the effects of social isolation measures hit the Australian public.

“With our current restaurant customers being forced to close due to the restrictions of COVID-19, we were left with a significant supply of bulk pasta,” said Pangkarra Foods Managing Director Sam Maitland.

“We needed to look at alternative ways to adapt to this situation and decided to offer our wholegrain bulk pasta to our online consumers at a discounted rate for their benefit.”

Prior to the COVID-19 outbreak, web sales represented about 3% of Pangkarra’s total revenue. Marketing the bulk-to-consumer offer through social media has grown website sales around ten fold and approximately half of those sales were from new customers.

“We’ve now sold half of the stock from the warehouse and, importantly, this has helped to secure cash flow through March and April.”

Mr Maitland sees future potential to drive sales through a better connection with their consumers, post Corona Virus.

“I think that consumers have embraced buying food online, direct from the producer and hopefully this continues. There’s a potential opportunity here for Pangkarra to sell more products through other like-minded paddock-to-plate brands that have also shifted their focus from food service to direct-to-consumer channels.”

The company is also considering adding other brands to their online store, with the aim of increasing the spend per customer.

“We’re planning on offering products like olive oil, stock, salt, coffee and passata, foods that align with our brand and products, adding value to the online shopping experience for our customers.”

Sources: ABC

Smoke Signals: Australia Tightens Foreign Investment Review Rules

Tue, 28 Apr 2020 05:07:10 GMT

The Government has announced that it will significantly increase the foreign investment review process in order to prevent foreign entities from taking advantage of a depressed economy.

Effective immediately, the Foreign Investment Review Board will scrutinise all transactions, regardless of value, with a mandatory six-month assessment process. Previously, FIRB assessments were handled in a 30-day period.

The move comes amid growing concern that foreign companies would capitalise on the impact of COVID 19 on the Australian economy, buying up companies and land at a depressed price.

Tightening the foreign investment review process is widely seen as a message specifically for China, although the measures apply to all non-Australian buyers regardless of their home country.

Treasurer Josh Frydenberg was quick to reassure the commerce sector, adding that the changes to FIRB processes were “not an investment freeze”.

“Australia is open for business and recognises that investment at this time can be beneficial if in the national interest,” he said.

Some members of the agriculture industry have warned that the new restrictions could have “unintended adverse consequences”.

Paul McKenzie, a West Australian-based consultant with Agrarian Management said that while he understood the Government’s move, agriculture’s reliance on foreign investment could add insult to injury for farmers already suffering the effects of drought.

“At this point in time, its clear that in certain areas that additional investment is required rather than less investment,” he said.

“I think we need to be quite cautious about the possible negative impacts of the FIRM changes adding to a liquidity trap.”

As well as companies and land, the FIRB restrictions also apply to the investment trusts, putting the brakes on the funding projects including agricultural technology and innovation.

Guy Hedley, the Executive chair of Atlas Advisors Australia, is concerned about the impact that delayed and restricted funding will have.

“[We represent] an agricultural tech company, NSW registered, that is going incredibly well with robotics and because my money is coming from foreign nationals, I need to get FIRB approval,” he said.

“What good is it for the company that needs capital now if they’ve got to wait for six months to secure that capital? They wont be around.”

Mr Hedley argues that managed funds should be treated differently to other foreign-owned transactions given their nature.

“There’s a big difference between foreign direct investment … and people like us who are managing money on behalf of investors, through a collective instrument that is based here in Australia, even though my beneficial owners happen to be offshore.”

While China is often seen as being the biggest investor of Australian farmland, it’s actually the United Kingdom which holds the largest portfolio of land with 2.6%. China comes second, owning a 2.3% share, followed by America with 0.7%. Other players in the top ten include the Netherlands, Bahamas, Canada, Switzerland, Hong Kong and Saudi Arabia.

Of the amount of foreign interest in Australian agriculture, approximately 80% is leasehold.

Sources: Infrastructure Investor , AFP Factcheck , ABC

COVID-19 forces Australian Agribusinesses to Implement New Health and Safety Measures

Tue, 28 Apr 2020 05:01:38 GMT

While many sectors of the Australian economy have been hampered by the onset of COVID-19 social distancing measures, agricultural businesses continue to operate in order to fulfil essential seasonal tasks.

In central Queensland, citrus grower Craig Pressler has amended his approach to occupational health and safety in order to secure a team of almost 200 staff for harvest.

With such an influx of employees, Mr Pressler has imposed a mandatory self-isolation period for all new employees, many of whom have travelled from interstate and other parts of Queensland.

New arrivals are required to self-isolate in accommodation in a nearby town before they are able to start working on farm.

In addition, he has installed sanitising stations, conducts temperature testing of staff and contract tracing.

“We’re going to have a slower start than normal, but that is what it is,” he said.

“We’re trying to take appropriate action to make sure the safety of everyone – in the fields, in the pack houses, and in the community.”

Mr Pressler explained that he had broken up the workforce into four groups in order to further prevent the spread of any outbreaks.

“[The groups] have four different start times, and their arrival is stage so they don’t congregate together.”

While mandatory self-isolation has been enforced to protect workers and the wider community, one farmer warned that it could put vulnerable workers at risk.

In Far North Queensland, watermelon farmer Shaun Jackson recounted the story of a woman who had travelled a significant journey to work on his watermelon farm, only to be told she would need to complete a mandatory 14-day self quarantine period before being able to start working.

“We had one particular case where we had a poor, young lady who applied to our ads, tried to get here, got her all signed up and everything that was required,” said Mr Jackson, a farmer located 250 kilometres north of Cairns.

“Late that night they changed the rules. She arrived at the destination, at the checkpoint, and was told the rules have changed and was turned away.”

The woman was forced to self-isolate in her own car in the backyard in a nearby town before she was allowed to start working.

Mr Jackson said that it was impossible for staff to self-isolate on his farm as it was against the rules.

“I’m extremely conscious of the safety of our staff and I don’t think there’s a safer place in the country than our farm at the moment.”

The National Farmers’ Federation has developed a COVID-19 Workplace Guide which aims to help agricultural businesses make informed decisions around work health and safety in the era of Corona virus.

The guide also provides information to help business who rely on seasonal labour, and includes a Personal Disclosure Statement form to record information about the health status of employees.

Source: ABC

Legal Heat Intensifies for Chemical Manufacturers Bayer and BASF

Tue, 24 Mar 2020 05:35:45 GMT

A Missouri court has ordered Bayer and BASF to pay US$265 million in damages and fines after it was found that a peach farmer lost his orchard because dicamba drifted onto his property.

The ruling is the first in around 140 cases pending in the US court system, in which dicamba is being blamed for crop damage.

Peach farmer Bill Bader sued Bayer and BASF, claiming that dicamba drifted onto his orchard from nearby cotton and soybean farms. Mr Bader claimed that he noticed trees dying or becoming weakened from dicamba from 2015, with repeated exposure wiping out his 1,000-acre orchard – the largest in Missouri.

Mr Bader was awarded US$15 million in damages, while Bayer and BASF were ordered to pay a further US$250 million in punitive damages.

Attorney Billy Randles, who represented Mr Bader in court, said that Bayer and BASF are facing several other similar dicamba lawsuits later on this year in the same court, potentially with the same presiding judge.

“These are all the same allegations”, said Randles. “The claim negligent design, failure to warn and all allege a joint venture between Bayer and BASF. The jury found the two equally liable for the damages.”

The ruling intensifies the legal woes for both companies, with Bayer currently facing multi-trillion-dollar litigation over the chemicals dicamba and glyphosate. In the weeks after the court’s decision, a federal class action law suit was lodged on behalf of a growing group of farmers concerned about the implications of dicamba.

“We now have the road map to get justice for dicamba victims. The Bader verdict in Missouri sent a clear signal that you can’t profit off of hurting innocent farmers and get away with it,” said Joseph Peiffer, the lead attorney on the class action.

The increasing volume of legal cases is taking its toll on chemical manufacturers, with a drop in the value of Bayer share prices over the last year. In July 2019, Bayer admitted that the number of pending lawsuits had grown from 13,400 to 18,400 in just three months.

Last year, Australian farmer Ross Wild filed a law suit claiming that exposure to glyphosate caused him to develop Non-Hodgkin’s lymphoma. It is the first time an Australian farmer has launched legal proceedings against Bayer, who are fighting up to 20,000 cases in the US.

Tony Carbone, the lawyer representing Mr Wild, has also lodged a case on behalf of Michael Ogliarolo, a landscaper diagnosed with cancer.

“I’m pretty confident that more people will come forward,” said Mr Carbone.

“These are very sick people [who] deserve to be compensated – why should Australians be treated any differently to Americans?”

Sources: Financial Times , Reuters , US Right to Know , BBC

Image: “IMG_5601” by sumitramedia is licensed under CC BY 2.0

COVID-19 Causes Concern for Agricultural Employers

Tue, 24 Mar 2020 05:32:39 GMT

Charged with the decision of returning home in the wake of COVID-19, many backpackers have elected to stay in Australia, creating a temporary spike in the number of temporary visa holders looking for agricultural work.

In Manjimup, WA, Harvey Giblett has been inundated with requests from backpackers looking for work.

“A lot of people are coming through every day, and with coronavirus we’ve basically had to put up signs and tell them to not come in and look for work, but to instead make contact by phone,” he said.

“People are still driving straight past the signs and seem to be quite desperate to get a job. They’re not pleading for work, but they’re very close to it.”

Representatives from various sectors of the industry have expressed concern about future temporary labour given the ban on non Australian residents from entering the country.

There are currently around 140,000 backpackers in Australia, and 7000 Pacific Islanders who undertake seasonal work.

“We will get all of our crops harvested one way or another,” said Richard Shannon from industry body Growcom.

Late last week, the Government indicated that it was close to announcing measures to extend visas for seasonal workers and backpackers currently in Australia in order.

“There is a workforce that is here and it’s about making sure that we continue to provide continuity to our producers,” said Agriculture Minister David Littleproud.

Mr Shannon also raised the idea that shortfalls in the agriculture workforce could be stemmed by those laid off from other industries.

“A majority of labour is unskilled so anyone can perform those roles. Is a flight steward able to? Absolutely, as is a barista, as is a student.”

“It’s work outside and it’s rewarding.”

Live Export Sector Feeling the Pinch

The live trade sector is already facing unprecedented staff shortages after the Federal Department of Agriculture announced that independent observers are now deemed as “non-essential international travel”.

Mike Gordon, the general manager of Rural export and Trading WA, said that he was already struggling to find vets and stockmen to accompany livestock on ships to the Middle East.

“I’ve approached three vets for our next shipment without luck,” he said. “I’ve got a couple more that I’ll try, but then it’ll be a decision for the Department of Agriculture whether they will allow a shipment [to sail] without Australian vets and stockmen on board.”

With some Middle East countries having now closed their borders, Australian staff will not be allowed to disembark ships in order to catch a flight back home.

“They don’t mind doing the loaded voyage, but they then want to get home. Instead of taking three weeks out of your life to do a job, do you want to now take five weeks for the same job? A lot of people don’t want to make that commitment.”

Despite the operational difficulties, NT Livestock Exporters Association chief executive Will Evans said that demand from trading partners is still strong.

“There are some restrictions around personnel movements in market, but the information we have at this stage is that food security is potentially going to become a bit of a problem depending on how long this goes on for, so livestock are going to be very important to our trading partners in South East Asia.”

In response to the Coronavirus outbreak, the Australian Livestock Exporter’s Council (ALEC) wrote a letter to the Government, outlining potential strategies to help the industry including a temporary waiver of export fees and charges for the next six months.

The letter also called for a national approach to implementing strategies across Australian ports.

Sources: ABC , 7News

Image: Brahim cattle at Townsville by writenq , published under a CC BY 2.0 license .

Amid the Chaos: Understanding the Impact of COVID-19 on Australian Agriculture

Tue, 24 Mar 2020 05:22:32 GMT

Despite concerns about the impact of Coronavirus and the associated economic downturn, there are potential benefits for the grocery retail sector, with a potential flow on to supply chain and production components.

Increased demand on supermarkets has lead to Coles to announce 5,000 new temporary jobs around Australia to meet consumer demand, while Woolworths has agreed to take on Qantas workers who have been temporarily stood down.

Supermarkets have seen unprecedented demand for products including hand sanitiser, toilet paper, meat, and long life goods such as canned foods, pasta and rice with some industry sources claiming that the retailers are experiencing an increase in sales volume of up to 160%.

One industry analyst predicts that supermarket sales are up at least 25% year on year, and that’s despite both retail giants closing down their online shopping and delivery services because their websites couldn’t cope with the surge in traffic.

Roger Drake, the owner of a chain of supermarkets in South Australia, says that he’s “never seen anything like it in 50 years of retailing.”

“We were just staggered; we could not believe it,” he said.

Grocery spending has helped the major retailers to weather the financial storm to date with Woolworth’s shares falling 2.6 per cent and Coles down 5 per cent, while the ASX / S&P index fell 9 per cent.

Truck drivers are in demand to fill the shortfall in restocking supermarket shelves, while the government has assured the industry that the inter state transport of food would still be protected from state and territory border closures.

“In terms of freight, that means livestock, to refrigerated foods, to general freight,” said David Smith, the president of the Livestock and Rural Transporters Association of SA.

“There is no restriction on freight, all freight is exempt from the border shutdown.”

Demand for food and other grocery items has lead to a spike in sales for the retail sector, with many brands imposing restrictions on the most popular items such as pasta and rice.

Uncertainties regarding grain supply in addition to the falling Aussie dollar have had a positive impact upon grain prices.

The Australian dollar took a dive to a 17-year low late last week before recovering to 57.5 cents to the US dollar on Monday.

The result is that Australian grains are much more competitive on the global market with increased demand from existing trading partners. In addition, new market opportunities have opened including the sale of Australia sorghum into China, leading to a $48 / tonne jump in price to $418.

The fall in the value of the Australian dollar along with supply uncertainty also lead to an increase in wheat and barley prices of around $15-25 / per tonne for stockfeed.

The value of new season milling wheat delivered in January 2021 jumped $35 / tonne for the week to $356 per tonne.

Sources: Business Insider , ABC , Farm Weekly , IT News , Queensland Country Life

Image by Christopher Corneschi , republished under a CC BY-SA 4.0 license .

Agriculture Minister vows to “Make Agriculture Sexy Again”

Tue, 24 Mar 2020 05:17:14 GMT

Federal Agriculture Minister David Littleproud revealed his plan to “Make agriculture sexy again” at a recent ABARES Outlook conference, including a push to make Australia the number one country in research and development globally.

Amid drought, bushfire and now coronavirus, Minister Littleproud said that agriculture should be proud of its resilience and ability to innovate and adapt.

According to Littleproud, the Government’s plans to support agriculture include improving on-farm water storage by cutting red tape for farmers looking to create dams, while noting that policy around dams is currently a responsibility of the states.

“We’re going to cut a cheque, and we’re going to start digging some holes and plumbing this nation,” he said.

“But we need the states to work with us, so we’re putting our hand up. Because if we build that infrastructure, we don’t just build national resilience, we build regional and rural Australia.”

Minister Littleproud also expressed his support for farmers as environmental stewards of the land, as well as their ability to sequester carbon, indicating that this would create a new income stream.

Under the new plan, farmers would also be financially rewarded for reaching biodiversity standards, providing a valued-added boost to farm gate revenues.

“If you produce beef, grain or sugar in this country, and you’ve reached a biodiversity standard, you should have a seal that is internationally and nationally recognised that demands a higher price.”

According to Minister Littleproud, Australia is well placed to be the first country to market produce using a biodiversity standard to improve consumer confidence.

“No one is doing this, so we can either lead the world or try to catch up.”

In addition to the dam building and biodiversity programs, the minister also wants to elevate Australia’s global ranking in terms of research and development, citing the sector as a potential “pillar of agriculture”.

“We are number 20 in the world for research and development, and science technology.”

“Now, we have the same number of researchers in the United States and the Netherlands, and they’re numbers four and six in the world.”

Increasing the world’s view of Australian research and development would provide new jobs and help to “bring our young people home.”

“Not everyone had the ability to get back on the farm, but they have an ability to have a career and lifestyle and bring them home to regional and rural Australia.”

“Agriculture has a huge future. The story of agriculture is just add water. Agriculture is sexy again.”

Sources: FarmOnline

Image by the US Department of Agriculture

Australian Agriculture Feeling the Effects of Corona Virus

Thu, 20 Feb 2020 05:45:24 GMT

While the fall out from the outbreak of Corona Virus is yet to be fully realised, disruptions to agricultural trade with China are already causing issues for many sectors.

Most affected are exporters of products heavily reliant on food service as millions of Chinese are on home quarantine, with restaurants and food outlets closed until the outbreak is contained.

Australia’s seafood industry has been particularly hit by the impact of the virus, with experts warning that the long term impacts on the food and agriculture supply chain will reflect the duration and severity of the outbreak.

One Australian fisherman, who asked not to be named, said sales of live abalone and crayfish were at a standstill with fisheries in Victoria, Tasmania, New South Wales and South Australia instructed to cease fishing.

“Frozen abalone are technically still going, but the lack of flights to China are halting sales. South Australian frozen abalone are still selling because stocks were depleted over Chinese New Year, so they are going into cold storage in the hope the market will reopen soon,” he said.

“Because there have been no sales since the outbreak, we don’t know what the impact on price has been – but there will be downward pressure. It all depends on when airlines fly into China again.”

Cattle Live Trade Continues

Despite the effects of the outbreak on the food service industry, the impact on Australian beef exports has been minimal so far.

Austrex/Ag Trade CEO Justin Slaughter said that while current and contracted shipments of cattle to China are continuing without interruption, the industry was keeping a close eye on potential developments.

“We are working closely with our partners worldwide to manage risk and keep supply lines open, while also ensuring we have strong contingency plans in place,” he said.

Given current public sentiment about the live cattle trade, trade delays and disruptions could potentially open up a public relations can of worms for the sector.

“Ensuring the health and safety of people and animals is, of course, our primary consideration at this time.”

Post-Corona Potential

One positive indicator is the predicted ‘explosion in growth’ expected once the epidemic is curbed, leading to increased activity in Chinese imports and exports.

Liu Ying, a researcher at Chongyang Institute for Financial Studies at Renmin University in China, thinks the global supply chain could recover quickly once the virus is controlled.

“Although the epidemic has had a negative impact on China’s imports, in the full year it will drive imports up, because China has just signed the phase one trade deal with the United States to import agricultural products and food worth $100 billion, and there will be increased imports of medical supplies and medicines because of the epidemic.”

It is likely that predicted recovery will benefit Australia, given its position as a significant trade partner with China. Australia’s total annual exports to China are valued at around $47 billion per annum, including around $5 billion in agricultural products.

Sources: Maritime Executive , Trading Economics , Beef Central

Image: Darwin’s Fort Hill Wharf Cattle by Ken Hodge shared under a CC 2.0 license.

Brave New World: UK Starts to Battle Out Post-Brexit Agriculture Policy

Thu, 20 Feb 2020 05:39:51 GMT

As Britain begins to grapple with its post-Brexit status, many wonder what the UK’s agriculture industry will look like as policy-making returns from EU control.

Coined, “one of the most significant pieces of legislation for farmers in over 70 years.” the UK’s proposed agriculture bill is eagerly awaited in Britain, where 460,000 people rely on farming for an income and 70 per cent of British land (17.4 million hectares) is under agricultural management.

The most significant difference between the EU’s Commons Agricultural Policy (CAP) and the new bill is the move away from the cash subsidy program which has historically paid farmers for productivity and food security outcomes.

The new agriculture bill will include subsidies for “public goods” – outcomes which benefit everyone, but provide little or no financial return to the farmer – such as clean air and water.

The move away from production-based incentives reflects the UK Government’s attempt to use agriculture as a way to achieve lofty goals under their 25 Year Clean Environment Plan and the Clean Growth Strategy, which includes aims such as, “enhanced beauty, heritage and opportunities to engage with the natural environment.”

One wide-spread concern of a post-Brexit world is the availability of migrant labour for low-skilled agriculture jobs, with many concerned about the impact that stricter immigration laws might have. This week, the UK Government revealed plans to implement a points-based immigration system to restrict the flow of low-skilled migrant workers.

The plan was met by criticism from business groups and unions in several different industries for its potential to cause staff shortages. In Cambridgeshire, Beverly Dixon from G’s Fresh – a horticulture enterprise that sells more than a billion packs of salads and vegetables per year, said that the company could face a shortage of up to 1,000 pickers during next year’s harvest.

“The immigration policy-points based system is unlikely to include workers at the skill level that the government categorise our roles as – which is low skilled. The English language level would also be a concern,” she said.

Similarly, the meat processing industry also faces significant labour shortages. According to Nick Allen, chief executive of the British Meat Processors Association, 60-70% of meat plant workers are migrants.

“They quickly get trained and go above [the] salary cap. Our concern is getting access to that sort of person… We struggle to get that on the home market. The only option will be slowing down how many animals we can take in, it will disrupt the whole supply chain from farm gate to consumer – costs for farmers, and the shortages of food on the shelves.”

Common Agricultural Policy

The UK’s agriculture industry has been subject to the EU’s Common Agricultural Policy (CAP), introduced in 1973.

The key focus of CAP was the use of financial subsidies to increase productivity and food security, improve the living conditions of agricultural employers and workers, to stabilise markets and provide food to consumers at a reasonable price.

Over the years, CAP evolved to include environmental and sustainability outcomes, to increase the number of young farmers, small farms and off-shoot sectors such as agri-tourism.

Sources: The Independent , The Guardian

Image: Migrant EU Labour? by John M , published under a CC-BY 2.0 license .

Blue Chip WA Cropping Property Sold for a Record Price - The Lucas Group

Tue, 18 Feb 2020 10:58:12 GMT

The sale of a cropping property in Western Australia has likely broken state records after the 22,000 hectare holding was sold for a staggering $97 million.

Erregulla Plains, near Mingenew in the state’s Mid West Region, was bought by Daybreak Cropping, a subsidiary of Warakirri Asset Management.

The addition of the property was a welcome to Daybreak’s current portfolio, which includes 75,000 hectares across Queensland, New South Wales, Victoria and Western Australia.

“Its scale, efficiencies, stage of development and proximity to the port of Geraldton make it a highly attractive asset,” said Daybreak Chief Executive Will Heath.

“In addition, it is our first asset in the northern Wheatbelt of WA, and therefore provides important diversification benefits for the business.”

“We look forward to continuing the responsible stewardship of the asset and contributing positively to the Mingenew community.”

The property had been owned by Stuart and Cherie Smart and had been in the Smart family for three generations. Mr Smart’s father Peter and grandfather Sir Eric Smart, were well regarded in WA cropping circles as agricultural innovators.

The Mingenew property, which comprises 22,191 hectares was known for its fertile soils, solid yield potential and reliable rainfall. A significant feature of the property is its neat layout with conjoined paddocks and just one boundary.

Erregulla Plains has an impressive homestead, extensive shedding and on-farm grain storage, dams as well as an established network of internal roadways.

The property was put on the market in August 2019, quickly attracting attention from both domestic and international institutional investors.

CBRE’s Agribusiness Regional Director Danny Thomas said he wasn’t surprised about interest in the property or the eventual price tag.

“[Eurregulla Plains] is of significant scale and very efficient,” he said.

“It was well marketed, and Ray White, acting for the vendor, were able to bring the obvious buyer into the deal at a very high price, in my view.”

Mr Thomas said that strong interest in WA cropping land by corporate and foreign investors was continuing to grow, with interest from buyers in North America, Europe, the Middle East and Asia.

“Any vendor seeking to test the market for a substantial-sized portfolio will be rewarded in the current market.”

“[The sale of Erregulla Plains] compares favourably with the divestment of the Nicoletti portfolio and other large deals done on deferred settlement terms in Esperance.”

John Nicoletti, formerly Australia’s biggest cropping farmer, sold his 200,000 hectare portfolio last year , netting $60 million.

The Baladjie aggregation included farms across Western Australia’s eastern wheatbelt including 76,000 of freehold land and 134,000 hectares of leasehold land, a flock of 40,000 merino ewes, plus rams and lambs.

Mr Nicoletti’s holdings were sold as a whole to SALIC – the Kingdom of Saudi Public Investment Fund. The sale was subject to scrutiny by the Foreign Investment Review Board which has the power to scrutinise the sale of farmland to foreign buyers when the price tag exceeds $15 million.

Mr Nicoletti sold the farming business to concentrate on his network of John Deere Dealerships.

Sources: ABC News , ABC News , Commercial Real Estate , ABC News , Farm Weekly

Prices Up, Production Down: Rabobank Predicts a ‘Challenging’ Year for Australian Agribusiness

Tue, 18 Feb 2020 06:18:44 GMT

Australia’s Agriculture industry should expect an “extremely challenging” year in 2020, amid drought, bushfires and the complexities of a global market, according to the Agribusiness Outlook 2020 report released by Rabobank.

Despite the industry’s reputation for resilience, the bank warned that the effects of drought and bushfire will take more than one season to recover from, encouraging farmers to take a “multi-year rebuild” approach.

The report’s author, Rabobank’s Head of Food & Agriculture Research Tim Hunt, said that the ongoing drought was still a significant factor for many agricultural regions.

“2019 was marred by drought, fire and flood. It was the driest year on record, compounding the drought already being experienced by the eastern states in the years prior,” he said.

“And, while recent rainfall across drought-affected regions has brought some optimism, farmers will need continued rain to replenish soil moisture and break the drought.”

“Low soil moisture and feed shortages are widespread, while key water storages in the southern Murray Darling Basin are at the lowest levels in a decade.”

While the impacts of the drought and bushfires have caused a contraction in production for many sectors, higher commodity prices have helped to offset losses.

In addition to the contraction in supply, solid demand from overseas trading partners and a weak Australian dollar have also assisted in the rise in farm gate prices. However, despite the increase in commodity prices, the 2019/20 season will be the third consecutive year that farm revenues contract.

Information from the Bureau of Meteorology suggests a quick rebound is not on the cards in the foreseeable future.

“Given the low level of soil moisture, farmers will likely need more-than-average rainfall to get an average winter crop, and current Bureau of Meteorology forecasts suggest there is a less-than-even chance of average rainfall over the next three months,” said Mr Hunt.

“Physical constraints will also impede recovery. The beef herd and sheep flock will take years to rebuild from current lows, while refilling key storages in the southern Murray Darling Basin will likely take several favourable seasons.”

Likewise, the Chinese pig herd which has seen a 25% cull in the wake of African Swine Fever – will take years to rebuild, providing a trading advantage to the Australian livestock sector.

“For the animal protein sector, Chinese imports will remain at elevated levels in the wake of China’s culling of livestock in response to African Swine Fever, with the rebuilding of their pig population to take several years,” Mr Hunt said, “while global markets for wool and dairy remain firm and the local market basis (wheat price) will be sustained by constrained domestic grain production.”

Mr Hunt warned that Australia’s ability to tackle the effects of climate change would be a significant indicator in its future performance and resilience.

There are a number of factors mounting to indicate 2020 is going to see a significant transition in the world’s tackling of climate change, which will create opportunities as well as threats for agriculture. It will be important for the Australian sector to rebuild out of drought to be strong and adaptable so it can capitalise on these opportunities and mitigate the threats that lie ahead.

Additional factors at play include tensions with China, especially in the wake of the anti-dumping investigation into Australian barley due by June 2020. Trump’s Phase 1 trade deal with China, the US election and post-Brexit Europe are all issues that will potentially have an impact upon global markets, but whether they pose an opportunity for Australia remains to be seen.

Sources: Rabobank

Image: “Peak Hill2” by Granny Bee is licensed under CC BY-NC-ND 2.0

Craft Beer Joins the Growing List of Gluten-Free Foods

Thu, 23 Jan 2020 06:37:51 GMT

Coeliacs rejoice, Australian-made gluten-free craft beer is now available.

Established to cater to the growing market of those with a gluten intolerance, Twobays Brewing Company has released a line of four different brews including an IPA, summer and pale ales.

Founder Richard Jeffares came up with the idea after travelling to America where he found a burgeoning craft beer scene with brewers producing high-quality gluten-free beers in line with emerging market trends.

“Wine is pressed using an assortment of grape varieties and beer can be brewed from many grains – not just barley, wheat and rye”, he said.

“Gluten free grains have their own flavour profile, which is different to barley, but we don’t see that as a barrier; we see it as an opportunity.”

While beer is traditionally made with barley, Jeffares says that gluten-free grains including millet, sorghum, buckwheat, rice, quinoa, corn, lentils and even chestnuts could be used to make beer.

“There is no doubt that barley is the predominant beer-brewing malt, but gluten free grains have been used in brewing for more than 5,000 years – so it’s been done before.”

Australian Gluten-Free Sector Booms

Changes in attitudes towards intolerances has seen a significant increase in the number of patients diagnosed with a gluten intolerance over the past two decades. Today, it is estimated that up to 11% of Australians follow a gluten-free diet, providing ample opportunities for manufacturers able to develop alternatives to mainstream food products.

“The fact that coeliac disease is incurable and must be treated through a lifetime commitment to a gluten-free diet has created huge opportunities for the growth of companies producing foods that are free of gluten,” said Dr Kim Faulkner-Hogg, a dietician who specialises in gluten-free diets.

Domestically, the gluten-free food sector was valued at US$90 million in 2014, with an expected 11 per cent annual increase on that figure until 2020. Australia is ranked as the leading producer of gluten-free foods in the Asia Pacific and a significant exporter to continents including the US and Europe.

Globally, the industry is worth US$4.72 billion (2017), with growth expected to increase this figure to $9.24billion by 2022.

Given Australia’s early foray into the sector, it is well positioned to capitalise on potential future growth. As research catches up with anecdotal theories about gluten free products the outlook for the sector is positive.

“There’s enough medical evidence to know that wheat does play a role. But science is only now catching up and answering questions such as, does a gluten-free diet lead to a decrease in dementia and arthritis,” said Dr Faulkner-Hogg.

“The fact that more than 80 per cent of coeliacs remain undiagnosed hints at the huge potential of this industry to grow even further. Expect the next 10 years to be astronomical.”

Sources: Australian Food News , Naturally Good

Image: TwoBays Brewery

Burping Sheep Could Hold Key to Climate-Friendly Livestock Farming

Thu, 23 Jan 2020 06:33:10 GMT

Welcome to North Ronaldsay, a remote 690-hectare island off the Scottish coast – home to just 50 people and a flock of 2,000 seaweed-eating sheep.

It’s this mob of burping ruminants that might offer the global industry an insight into how to reduce the methane emissions associated with raising sheep.

Studies from both the United States and Australia have shown that the presence of seaweed in a sheep’s diet significantly reduces the amount of methane and carbon dioxide expelled through burping. As methane is a serious contributor to greenhouse gas emissions (almost 30 times more powerful than carbon dioxide), this theory offers an insight into how seaweed could be used to mitigate the sector’s footprint.

Armed with this knowledge, David Beattie – a researcher from the Scottish mainland – is working on a project to develop a feed pellet that incorporates seaweed.

“You’d be amazed how picky animals are about their food. We have to put molasses into the mix to get the animals to eat it – otherwise they just pick out the bits they like and leave the rest. So, it’s quite a task to introduce seaweed into the feed and to make sure it’s still protein-rich and of top quality,” he said.

“A large proportion of the ingredients we put into animal feeds in the UK at the moment are sourced from across the world, like oil seed from South America. This clearly has negative implications for the environment both in terms of farming methods to harvest that crop but also in terms of transportation. If we could identify a seaweed variant that could substitute oil seed, it would have a huge environmental benefit.”

A revival in the use of seaweed could also benefit the sustainability of islands like North Ronaldsay, which has seen a significant decline in its population from 500. Until the 20th century, the island was home to a buoyant seaweed business, supplying companies producing iodine and other chemicals.

In 1832, local residents built a drystane dyke – a two-metre high stone wall – around the outskirts of the island and sheep were confined to graze outside the boundary. With no other alternatives, the sheep were forced to survive on a diet of brown kelp, evolving to adapt to surviving on seaweed as their main source of food.

It is thought that the particular breed is descended from the Northern European short-tailed sheep, possibly with some genetics from Scandanavian breeds introduced between the 9th and 15th centuries when the islands were under Norse control.

The sheep are raised for meat consumption with a distinctive darker meat and gamey flavour attributed to the high amount of dietary iodine. Purebred North Romaldsay lamb is considered a delicacy and can be marketed as Orkney Lamb.

It is highly sought after throughout the UK and North Romaldsay mutton was served to the Queen at her Diamond Jubilee dinner.

Sources: BBC , North Ronaldsay Sheep

Image: North Ronaldsay Sheep is by Ian Caldwell and is reproduced under a Creative Commons Attribution-Share Alike 3.0 Unported license.

Trial Aims to Future-Proof Australia’s Pacific Oyster Industry

Thu, 23 Jan 2020 06:27:13 GMT

A new breed of Pacific oyster is giving hope to the Australian seafood industry after outbreaks of a deadly disease decimated stocks across New South Wales and Tasmania.

Developed by Australian Seafood Industries, the new oyster is resistant to Pacific Oyster Mortality Syndrome (POMS). POMS is a virus that affects baby oysters (spats) when their environment reaches 19 degrees for 10 consecutive days or more.

In 2013, an outbreak of POMS wiped out the New South Wales oyster industry, spreading to Tasmania in 2016. It has also been detected in feral oysters in South Australia, although no outbreaks have been seen in commercial fisheries.

“It stops them dead,” said Dr Len Stephens, chair of Oysters Australia.

“The industry [was] shell shocked for a year or two.”

The development of a POMS-resistant oyster includes breeding trials with a group of growers on the Hawkesbury and Georges rivers in New South Wales.

“[Breeding resistant oysters has] proved to be a very wise decision for the industry,” said ASI managing director Matt Cunningham, who has been running the trials.

If successful, the resistant Pacific Oysters are likely to be highly sought after by fisheries across the globe. POMS struck oysters in France in 2008 and New Zealand in 2010, obliterating stocks.

Australia’s oyster sector recovered from POMS outbreaks much quicker, due to ASI’s breeding program. However, the outbreak still had a significant toll on oyster farmers.

“[POMS killed] virtually 100 per cent of Pacifics in a matter of days,” according to New South Wales oyster farmer Bruce Alford.

“Four farmers [out of thirteen] were left here in 2013. Everyone else sort of shut up shop and went and did other jobs.”

Results from the initial POMS trial should be released in the next few months.

“We’re pretty confident that we’re going to have at least a pretty good resistance level and it’s only going to get better as the next couple of years go on,” said Mr Alford, who is taking part in the trial.

Based on the Hawkesbury River, he also farms Sydney rock oysters which were decimated by QX disease in 2004. QX – named because it was first detected in Queensland, with an unknown cause – is a parasite that affects the digestive gland of the oyster, effectively starving them to death.

He sees breeding programs as the key to managing disease outbreaks.

“[The industry] won’t exist without [ASI’s] input through the POMS resistance program. If they ever have to stop, then we have to shut up shop. We’ve got no way forward without the breeding program.”

For Mr Alford, breeding a POMS-resistant oyster has provided a new level of hope to the industry.

“Everyone’s looking towards what they’re going to do next year, which is something we haven’t been able to do for the last seven or eight years.”

Disease outbreaks have had a significant impact on price stability for the oyster sector. At the Sydney Fish Market, Pacific oysters hover around $19-22 per dozen during the festive period, increasing to $20-27 per dozen after the 2016 POMS outbreak in Tasmania.

Sources: Sydney Morning Herald , Sydney Morning Herald

Agriculture Begins to Calculate the Toll of the Bushfires

Thu, 23 Jan 2020 06:21:25 GMT

In the wake of a horrific bushfire season, the scale and impact of the devastation is slowly being revealed by many sectors of the agriculture industry.

According to figures by Meat and Livestock Australia, up to 80,000 livestock farms have been affected by the fires, affecting up to 12% of the national sheep flock and 9% of the national cattle herd.

In regions including Tasmania and Kangaroo Island, haunting images have been released showing the devastating losses of cattle and sheep with the heartbreaking job of euthanasia and carcass disposal now a priority. Burying dead livestock is an added trauma for many farmers who have experienced the bushfires, often in addition to several years of drought.

While it’s still too early to tell what impact livestock losses will have on the market, it will likely compound an already tight season.

“When we do get a reasonable enough turn in the weather it’s going to be a big scramble for those that want to get back in [to livestock production],” said Matt Dalgleish, a senior market analyst with Mercardo.

Issues for the dairy industry are more immediate, according to Mr Dalgleish, with the sector already having endured a turbulent time before the fires.

“They’re now facing a situation where they have not been able to milk their animals for 48 to 60 hours because of the fires, and that also starts to impact the production of milk.”

Damage to infrastructure has also caused short-term issues for the fresh produce sector with experts warning that the price and availability of fruit and vegetables should be expected.

“The ongoing fires that are devastating many parts of the country have impacted on supply of some vegetables due to both farm damage and creating logistical issues in getting product to consumers,” said Shaun Linde, a spokesperson for AusVeg.

“There have been reports of highways being closed for periods of time which have caused issues getting product to consumers, as well as power outages, which can affect cold store facilities, picking and packing.”

In South Australia, more than half of the crop of the Adelaide Hill’s wine region has been lost, representing a loss of around $100 million in revenue. Growers in many regions in Australia are concerned about the possibility of grapes being tainted by smoke.

In 2019, fires burning in the Bunyip State Park caused smoke damage to neighbouring vineyards. When wine grapes are exposed to smoky conditions, the resulting wines are at risk of inheriting an unwanted smoky character rendering the fruit useless.

Earlier this month, Prime Minister Scott Morrison announced a $2 billion fund to help aid the recovery of affected communities and businesses.

The largest portion of the funding ($100 million) has been allocated to bushfire-affected farmers who will have access to a one-off payment of $75,000. $76 million will go towards a range of mental health programs, $60 million to local government, $50 million for wildlife, $40 million to charities, $15 million to rural financial counsellors, $10 million for financial counselling, $8 million for children’s disaster payment and $8 million to children’s mental health programs.

$1.6 billion of the total fund is yet to be allocated.

Sources: ABC , MLA , The Guardian , Sydney Morning Herald , Sydney Morning Herald , The Guardian

Image: Bushfire at Captain Creek Central Queensland by 80 Trading 24 , is shared under a CC BY-SA 3.0 license.

From China with Love? Russia Grapples with Influx of Chinese Farmers

Wed, 11 Dec 2019 06:40:17 GMT

An improved relationship between China and Russia has led to an influx of Chinese farmers into some of the most inhospitable parts of Russia. While the opportunity provides significant benefits to both countries, experts say that China’s presence in Russia could be a ‘geo-political time bomb’.

While there has long been a Chinese presence in Russia, the early 1990s saw a new-wave of immigration as Chinese farmers arrived to take over farms that had collapsed along with the Soviet Union. The flow of Chinese farmers increased further after the Global Financial Crisis of 2008 as China looked to manage risk by spreading investments.

In the Russian Far East province alone 350,000 of a total 2.2 million hectares is owned or leased by Chinese farmers, predominantly growing soybeans, wheat and potatoes as well as an increasing pork sector. In 2018, 150,000 hectares in East Siberia was leased to a Chinese company on a 49-year contract at a price of just US$5 / hectare.

Recent development between the two countries has been heavily influenced by the US-China trade war as China struggles to fulfil its enormous demand for soybeans. China has traditionally been a major consumer of US soybeans to the tune of $14 billion annually. In 2018, only 1% of China’s estimated 80 million tonnes of imported soybeans came from the US.

The Chinese government has continued to aid domestic production, including dedicating an additional 1 million hectares of land to soybeans. Also keen to capitalise on the situation, Russia made 2.6 million hectares of land available to foreign investors. Keen to restore the economy after the last recession, Putin is supportive of Chinese farmers and workers, despite lingering concerns about China’s real intentions.

The Russian government has made some investment into developing the infrastructure and transport required to aid trade in agricultural areas, but significantly more is required to make Siberia and the Far East more productive regions. As the relationship between China and Russia improves, the two countries have agreed to large scale cross border infrastructure projects, but Russia’s commitment is often hampered by a lack of capital. Currently recovering from a national recession, Russia’s population is just 10% of Chinas, as is their gross domestic product.

The Russians are concerned about the Chinese liberal use of agricultural chemicals which is seen as being excessive by Russian standards. Farmers often import chemicals from China, causing issues with methodology and analysis, as well as raising concerns around soil degradation and consumer safety.

One of the major issues is tensions between locals and Chinese workers. Among both Chinese and Russian employers, Chinese workers are seen as harder working and more reliable, and are favoured by Russian and Chinese employers alike. A large portion of the Chinese workforce is semi-migratory, working on farms during peak seasons before returning to China and taking their earnings with them. And While Putin is happy for the Chinese to farm some of the most inhabitable parts of Russia, many are suspicious of China’s interest in Russia. One in three Russians think that the new wave of Chinese farmers is part of China’s expansion policy, while a third think that it endangers Russian economic development.

Herein lies the conundrum for Moscow. With Chinese development of the Russian Far East and Siberia set to continue at a moderate pace, the Russian government will have to invest more money into the infrastructure required to maintain agricultural productivity. Concurrently, it must manage the social tensions that will likely increase as a result of those investments.

Sources: BBC , SCMP , SCMP

Image: Nicolaevka (Jewish Autonomous Oblast) by Garankov

Cough Up: Coles Agrees to Honour Pledge to Australian Dairy Farmers after ACCC Flexes Muscle

Tue, 10 Dec 2019 06:49:21 GMT

Australian supermarket giant Coles has agreed to pay dairy cooperative Norco $5.2 million amid the threat of legal action from the Australian Competition and Consumer Commission (ACCC).

The payment comes after the ACCC launched an investigation after it was alleged that the retailer had failed to pass on the levies that it announced in March as part of their commitment to “support Australia’s dairy farmers who supply Coles Brand milk to our customers”.

In March this year, Coles announced that it would increase the price of its own-brand 2 and 3 litre milk by 10 cents per litre and pass on the full amount of the increase to farmers via their supplier, including the use of statements such as “An extra 10 cents per litre to Australian Dairy Farmers”, and “Coles will pass the extra 10c per litre to processors who will distribute all of the money to the farmers who supply them with milk for Coles Brand”.

While Coles sources milk from a number of suppliers, cooperative Norco received significantly reduced portion of the levy compared with other suppliers. At the time that Coles announced their 10 cents per litre levy, Norco had recently finalised an unrelated deal with Coles for a 6.5% price increase.

Instead of adding the 10 cents per litre levy on top of the proposed new Norco price, Coles added just 3.5 cents per litre. According to the ACCC, Coles passed on the full 10 cents per litre price increase to other suppliers.

The ACCC labelled the move as an “egregious breach of Australian consumer law” with a commission representative saying that Coles’ promise of passing on the 10 cents per litre price increase directly to the farmers was misleading.

“Coles allowed farmers, consumers and the Australian public to believe that its 10 cents per litre price rise would go straight into the pockets of dairy farmers, when the ACCC alleges this was not the case for Norco farmers,” said ACCC Chair Rod Sims.

After negotiations with the ACCC, Coles agreed to pass on an additional 7 cents per litre to Norco with an initial sum of $2.8 million due to be paid within a week of the announcement.

Each of Norco’s 300 famers are due to receive around $10,000 for milk sold between 1st April 2019 and 1st December 2019, with an additional 7 cents per litre to be paid on milk supplied after the 1st December.

No More Creative Accounting

The ACCC will be keeping watch to ensure the retailer follows through on its promises.

“We take commitments made to us very seriously. The ACCC will be keeping a very close eye on Coles to ensure they follow through on this commitment, and we are not ruling out future litigation if necessary,” said Mr Sims.

The 7 cent per litre increase is 0.5 cents more than the 10 cents originally promised, perhaps a sign of the ACCC’s frustration with Coles.

“We were fully prepared to take Coles to court over what we believe was an egregious breach of the Australian Consumer Law. We believe we had a strong case to allege misleading conduct by Coles,” said Mr Sims.

“Accepting this commitment means that farmers will receive additional payments from Coles, with the majority of the money to be paid to Norco within seven days.”

“Court action would also have taken many months if not years, with no guarantee that any money would have been paid to farmers as a result.”

In 2018, Agriculture Minister David Littleproud slammed both Coles and Woolworths for using milk levies as an ‘empty media stunt ’ .

Sources: ACCC , The New Daily , Sydney Morning Herald
Image: Coles Fremantle 2015 with Dockers PF week by Orderinchaos under a CC4.0 licens e.

Trouble in the Fields: US Agricultural Profitability a Sign of the Trump Times

Tue, 10 Dec 2019 06:46:04 GMT

In the lead up to the 2020 presidential election, the US government is rallying to protect the support of farmers and farming states in the wake of the economic destruction born from Trump’s volatile approach to foreign policy.

The world’s largest exporter of agricultural products is in trouble. Amid falling commodity prices and a number of natural disasters, Trump’s disastrous trade tariffs are the last blow for many US farmers.

Since September 2018, when the trade war between the US and China escalated, the number of American farms filing for bankruptcy has increased by a staggering 24%. Exports to China, a country that attracts significant ire from the president, have halved since the trade war began down from $20 billion in 2017 to a projected $7.5 billion in 2019.

As well as being economically concerning, the impact of the trade war on farmers should be a political worry for Trump who is up for re-election in 12-months time. Trump won the 2016 election with backing from farmers and farming states and he will likely count on those votes to get over the mid term line.

Despite the traditional conservatism of American farmers, the impact of Trump’s trade policy may convince some to vote in opposition. Wisconsin and Pennsylvania are margin states and their farmers have been particularly caught up in the trade war cross fire. Wisconsin, the dairy hub of America, has the highest farm bankruptcy rate in the States and the number of farms has fallen by 10%.

In October this year, Trump announced that a new trade deal with China was in the pipeline, but his flagrant optimism makes many uneasy. According to the president, the new deal would be worth $50 billion a year in exports to China, which is unlikely given the high of $20 billion in 2017, not to mention the time it will take to rebuild relationships.

Trade disputes with other global trading partners have worsened the outlook for US farmers with tariffs imposed on American agricultural imports by Canada, Mexico, Turkey, the EU, Japan and India.

To date, the impact of trade wars on agricultural productivity has cost the US an additional $28 billion in compensatory payments to farmers, and Trump has recently announced plans for another wave of funds.

But there’s controversy among compensation, too. Many believe that the US administration is over-compensating farmers for losses received as a result of trade wars, in a deliberate attempt to retain votes in the mid-term elections. ‘Agricultural Policy in Disarray’ – a paper released recently by the American Enterprise Institute – a conservative think tank – states that the government could be overestimating the damage done by 100%.

The paper also raises concerns about a potential breech of the commitment the US made with the World Trade Organization (WTO) regarding the amount of domestic support provided to agricultural commodities. According to the paper, ‘Current WTO rules require that annual US domestic supports that distort trade flows not exceed a maximum of $19.1 billion.”

According to the American Farm Bureau 40% of farm profits are expected to come from federal assistance in 2019, with recent analysis showing that the payments ‘overwhelmingly flowed to the largest and most successful farmers.”

The study revealed that the top 10% of recipients receive 54% of all Market Facilitation Program (MFP) payments. The top 1% of MFP recipients received an average of $183,311 with DeLine Farm Partnership of Missouri being the largest benefactor having received $2.8 million so far.

The bottom 80% of farmers have received an average of less than $5000.

Sources: EWG , American Enterprise Institute , BBC , ABARES
Image: “farmyard sky” by zenTourist is licensed under CC BY-NC 2.0