AWB seeks grower support for change
Wheat exporter AWB has hit the road to win support for its proposed constitutional changes.
Mangaging director Gordon Davis is meeting with selected growers to convince them to support plans to create one class of shareholder, and remove AWB's primary obligation to be a grain trader.
Some growers are angry the meetings are not open to everyone, but Mr Davis says that would not be appropriate.
"Clearly we want a positive vote, the board's been unanimous in saying this is the best thing for the company," he says.
"Obviously we've put together a program to get people to support the proposals and un-ashamedly we have to do that.
"That's the wish of the company, it's involved letters from the Chairman and it's involved me being available in forums like this to encourage people to participate". (ABC Rural)
Minister recieves latest export wheat bids
Agriculture Minister Tony Burke has just received the latest round of applications to export wheat.
So far very few companies outside monopoly exporter AWB have had the chance to export, though the industry agrees Federal Government reforms to the system will change that.
While the revamped Export Wheat Commission is responsible for receiving applications, it is up to the Minister to decide which traders get the go ahead.
Mr Burke's office says all applications will be considered, with an announcement expected soon. (ABC Rural)
China gene breakthrough for WA
WA is set to become a world leader in plant breeding technology following the signing of a historical agreement with the Zhejiang University in China.
The agreement, which looks set to revolutionise cereal grain growing in WA, was signed when WA Agriculture Minister, Kim Chance, visited China late last year.
Mr Chance said this week the agreement was one of the most significant developments he had overseen in his time as Agriculture Minister.
“It has enormous potential for WA agriculture,” he said.
“It offers great hope to both Australian and Chinese farmers as a means of adapting to climate change, soil acidity and developing functional foods with better health outcomes.
“The majority of grain produced globally is related to a gene pool established in the Iraq region thousands of years ago.
"Cereal genetics used in North America, Russia, Africa and certain Asian countries have all come from that gene pool.
“The cereal or grass gene pool that exists in continental East Asia is massively bigger. It's one Australia has never had access to previously.
“Currently there is no wheat grown in WA that has any link to Chinese wheat genetics.”
Work is already under way on breeding barley varieties with better acid soil tolerance for WA.
This technology is equally applicable to other cereal crops including wheat. (Farm Weekly)
Rain drives demand for young cattle
The recent rain in the eastern states is expected to drive demand from restockers at the annual weaner and calf sales in Victoria.
The first sales today include a yarding of just over 6000 cattle at Wodonga, in the state's north-east.
Auctioneer Trevor Parker expects prices to be strong, with buyers from across three states.
"We are blessed that New South Wales and Southern Queensland got the rain in the last fortnight, you know otherwise it would have been a very different scenario but the quality of the cattle is outstanding," he says.
"Look we can be relatively confident there is a hell of a field of buyers here from a long way away, people from Dirranbandi, I've been talking to lots of people from the Hunter Valley, people from Gunnedah, people from western New South Wales as well that have enjoyed the recent rains". (ABC Rural)
Grain to remain buoyant in 2008
Although the cream will come off 2007's record grain prices, croppers can still expect historically high prices this year, according to the managing director of ProFarmer, Richard Koch.
He said that continuing tightness of world supply and demand balance sheets and the appetite for corn from the biofuels sector would leave prices at good levels, but back from 2007's drought-driven highs.
"Providing there is an average season in the northern hemisphere next year I think we will see prices come off," Mr Koch said.
He said the price fall could come back as much as $150/t if there was a good northern hemisphere season.
"There has been a lift in plantings globally, with the pricing encouraging people to put in more crop," he said.
Mr Koch said that the price drop would come in the Australian spring, as northern hemisphere grain is harvested.
He said the real opportunity would be in oilseeds.
"That balance sheet looks to be the one in the most severe disrepair and with tightening stocks and farmers in the EU and Canada moving to cereals, it looks to be the one with the best prospects," he said.
The high price for soybeans will provide a floor in cereal prices, because if the cereals are not priced competitively against soybeans, farmers will swing out of cereals and into oilseeds. (FarmOnline)
Sustainable farming feels pinch as fertiliser costs boom
There is concern farmers might move back towards less sustainable farming methods because of soaring fertiliser and chemical prices.
The cost of fertiliser has jumped about 80 per cent this year and weedicide prices have nearly doubled in the past three months.
Farmers say reduced-till farming practices have got the Mallee through this year's drought with little wind erosion, but the rising costs will make some review their options again.
Rob Sonogan from the Department of Primary Industries at Swan Hill says after another mixed season in the Mallee, farmers are paying close attention to budgets.
"They are going to be really closely scrutinising where they can screw things down without sacrificing yield," he said.
"The outlook for next year obviously is, we hope, good prices and all the outlooks look that way, so we don't want to jeopardise anything, but we want to do it as frugally as we can." (ABC News)
Cattle outlook improves
Cattle prices are expected to go up next year, as improving seasonal conditions in southern Australia leads to a tightening of supply.
With recent good rains in many areas, analysts says saleyard prices could rise by up to ten per cent for domestic suppliers, while the live export trade will continue to grow.
Peter Weeks from Meat and Livestock Australia, says a number of favourable factors should help contribute to a better year for cattle producers.
"The breaking of the drought and falling supplies that might come with that," he says.
"We've got now a sharp weakening competition from Brazil in fact for some cuts we're cheaper than Brazil now so the competition for our live animals and for meat, it's not what it was, so that's a positive going through to next year.
"And of course US prices are expected to rise further next year and we tend to follow US prices". (ABC Rural)
Dairy farmers urged to consider GM crops
Dairy farmers on the New South Wales far south coast have been told they will need to look to genetically modified (GM) crops if their industry is to meet increasing international and national demand for dairy products.
Max Roberts from Bega has been elected to his second term as chairman of Dairy Australia.
He is also the deputy chairman of Bega Cheese, which has a ban on the use of GM products in the manufacture of its milk and cheeses.
However, Mr Roberts says climate change and increasing food demands are looming as the dairy industry's major challenges.
He says that criticisms of the use of GM stock products have been what he describes as "uninformed".
"The use of GMs have been portrayed very much as the two-headed monster," he said.
"I would also suggest that a lot of other arguments - green arguments - are being attached to the GM debate which has clouded the debate, which has clouded it a great deal.
"But if we want agriculture to produce product that's going to feed the world population we need every tool in the toolbox." (ABC News)
India sees wheat harvest edging up; imports on cards
India may harvest 75.5 million tonnes of wheat in 2008, edging up from the year before, as there had been no major fall in crop area as feared, officials said, but analysts said imports remained on the cards for next year.
An expanding economy and new lifestyles and diets have fuelled demand for wheat at a time when output has stagnated, forcing India to turn to increasingly costly world markets.
"I took a meeting of representatives from major wheat growing states in the morning and am very happy to tell you we have overcome the shortfall in wheat sowing," Farm Commissioner N.B. Singh told Reuters.
"Our production will be more than 75 million tonnes, largely due to productivity in eastern states like Bihar where per hectare yield has been low in last many years."
A farm ministry statement issued later on Tuesday said the area under wheat would be 27.5 million hectares, down from 28 million in 2007, but added India was heading for a harvest of around 75.5 million tonnes next year.
India produced 74.9 million tonnes of wheat in 2007. The country needs around 73 million tonnes annually to feed its more than one billion population. (Reuters)
Anger over sudden wheat pool closure in WA
ANGER has erupted in Western Australia over the sudden closure of the CBH Wheat Pool yesterday.
Growers who cannot deliver to CBH now have to deliver to other agencies, most likely AWB Ltd.
But AWB too has warned that its pools may close any time, too.
PGA's Western Graingrowers says the move reflected the deficiencies of the system put in place by the previous government, which has allowed CBH to only export 500,000 tonnes in bulk.
According to chairman, Leon Bradley, CBH was left with no alternative but to close the pool as its pool was massively oversubscribed with an avenue to export markets in the absence of a full licence.
"If CBH had been granted the 2.7 million tonnes permit applied for, and if other exporters had been granted permits, then WA growers would have a lot more options open to them today," Mr Bradley says.
"The cash market would be more liquid, and growers would have a better chance of maximising their returns in what is still a very bullish international market.
"With the re-commitment of new federal Agriculture Minister, Tony Burke, to the Labor wheat marketing reforms, this should be the last year when we have a distorted market destroying grower returns.
“However, Mr Burke can also help alleviate the problem this harvest, by moving to immediately re-examine bulk permit applications and approve all those presented by credible industry participants." (North QLD Register)
Drought-hit GrainCorp requests trading halt
ANALYSTS fear more bad news for GrainCorp shareholders after the east coast grain handler put its shares into a trading halt yesterday.
Analysts fear bad news for GrainCorp after the grain handler put its shares into a trading halt. Picture: Angelo Soulas
GrainCorp requested the trading halt for two business days until the start of trading on Monday.
Analysts said the company could announce a capital raising to help it weather the difficult business conditions and subsequent cash-flow problems.
The investment analyst who covers the stock for ABN AMRO, which is also GrainCorp's main broker, did not return The Australian's calls yesterday.
One analyst said if the company intended to raise the money through debt, it might have to tap overseas markets that were still in the grip of the credit crunch.
An acquisition is also a possibility as the company is attempting to diversify its earnings. In October, it paid $26.5 million for Hunter Grain.
GrainCorp has warned that it will suffer another loss this financial year as the drought slashes grain production and hence fees for handling and storage of grain, the company's largest source of income.
The company posted a net loss of $19.8 million for the year ending September, compared to a $32million profit the previous year.
While grain volumes received fell by 79 per cent to 2.3 million tonnes, this was partly offset by strong domestic demand for grain, record global prices and cost reductions.
The board is targeting a $40 million net profit and a return on equity of more than 10 per cent by2009.
GrainCorp encompasses the former Queensland, NSW and Victorian grain handlers as well as a dozen former statutory marketing boards.
One bright spot for the company in its recent financial results is its joint venture with US agribusiness giant Cargill, which recently won a contract with Coles for the supply of its in-store bakery products. (The Australian)
Fonterra dairy monopoly broken by bill
Smaller dairy companies are set to gain a slice of the trade to New Zealand's quota-restricted export markets, following the passing of legislation that will end Fonterra's monopoly in those markets.
Parliament rushed through amendments to the Dairy Industry Restructuring Act under urgency in just a few hours on Wednesday, as it cleared the end of year log-jam.
The legislation removes the exclusive rights Fonterra has had to supply 11 quota-controlled dairy markets, including the butter and cheese trade to the European Union. Those arrangements will expire over the next three years.
Other exporters will be able to apply for a share of the quotas for most of those markets, based on the proportion of milk they collect from farmers.
There will be no restrictions on who can export butter to Canada, cheese to Japan and some types of cheese to the United States.
Westland Milk Products' chief executive, Scott Eglinton, says his company will be looking at the opportunities available, especially being able to spread its butter exports back into the EU. (Radio New Zealand)
Cascade looks to import barley
A major Tasmanian brewery will import barley for the first time in 18 years.
After two dry seasons, the Cascade Brewery will need to find up to half its malting barley from the mainland.
The grain shortage also means it will have to pay 30 per cent more.
Cascade's maltings manager, Roger Ibbott, says the imported grain will need to be segregated to preserve the brewery's iconic Tasmanian brand.
"Whereas when it's all local it doesn't matter, we can just use any malt that we've got in our storage for any of our products, once we bring in grain from interstate, we've got to look at where we use that," he says.
"And we'll be looking to use that in the brands that are not our Tasmanian brands. So the products that we make that are more generic Fosters brands".
Grain harvest expected to end by Christmas
The grain handler Co-operative Bulk Handling (CBH) expects the harvest to be effectively complete by Christmas.
This season has been the fastest harvest on record, with 90 per cent completed within nine weeks, bringing total receivals to seven million tonnes.
CBH operations manager Colin Tutt says some smaller sites will close in the next 10 to 14 days, and only major primary and terminal sites are likely to remain open.
He says WA experienced the driest November on record which saw growers harvest their crops earlier and quicker.
"We've had really good harvesting conditions throughout November, although some rainfall hasn't been as severe as before, and probably we've seen an increased capacity of headers and harvesting equipment push down to the areas where there's a lot of grain in," he said.
CBH says a total of 510,000 tonnes is now predicted for the season in the Geraldton zone, building on the previous estimate of 400,000.
Geraldton zone manager Duncan Gray says the revised estimate is a result of the excellent weather during the week, which produced better than expected yields.
Mr Gray says the Carnamah, Mingenew and Geraldton terminals will remain open over the next week to accommodate the few growers still harvesting. (ABC News)
Grain freight operations closed in Victoria
The Victorian Farmers Federation says a decision by Pacific National to close grain freight operations in the state will force farmers to use more costly road transport.
Pacific National's parent company Asciano has announced it will also scale back operations in New South Wales, as a result of years of drought and poor harvests.
Geoff Nalder from the VFF says farmers will have to turn to road transport.
He is blaming a lack of state government investment in rail infrastructure.
"Those businesses operating grain haulage on rail are just so handicapped by the poor state of the underwheel infrastructure that it's a non profit making operation for them," he says. (ABC Rural)
AWB lifts 2007-08 national wheat pool returns
AWB has increased the majority of the 2007-08 estimated pool returns (EPRs) for its number one national pool by $10 a tonne and number two pool by $14 a tonne.
The rises follow a depreciation of the Australian dollar and continued strengthening of international wheat markets during the past week.
The increase brings the 2007-08 EPR for benchmark APW grade for the AWB number one pool to $418 a tonne and for the number two pool to $396/t.
Feed and Durum EPRs remain unchanged.
There have been no changes to the 2006-07 National Pool EPRs.
AWB general manager of the national pools, David Johnson, says the AWB is continuing to close port zones across the Australian wheat belt to protect wheat growers who have committed and delivered to the 2007-08 number one pool.
"As harvest is now drawing to a completion in a number of areas across Australia's wheat belt we have closed the South Australian Thevenard port zone and the Western Australian Geraldton port zone for deliveries to the 2007-08 number one pool," he says.
"While the EPRs for the number two pool have risen today, they are about $22 a tonne lower in value to the number one pool due to the anticipated world wheat price reduction when the northern hemisphere harvest starts in mid to late July 2008."
The next pool update is scheduled for Monday, December 17. (North QLD Register)
Grain farmers rejoice amid record prices
Australia's grain farmers are at last getting some good news, receiving both record-breaking prices for oilseed and grain in 2007 and attracting investment from banking majors.
Agricultural banker Rabobank Group expects prices to remain high at least into the middle of 2008.
Senior commodity analyst with Rabobank, Luke Chandler, said the record-breaking year had brought a lot of interest from other financial markets.
Soft commodities - grains, oilseeds, cotton, sugar and cocoa - were a "hot sector", he said, attracting increased funds.
"Agricultural markets have offered investors an effective way of diversifying risk, particularly with the recent global credit market problems caused by the US sub-prime issues." Major banks, he said, were investing in internationally focused futures markets, "and through more direct investment into agricultural land and agricultural enterprises".
"Some of the financial institutions are setting up managed investment schemes where they buy groups of farms and provide returns through them. Some of the investment has been from the farm and farm gate right through to the end product (particularly bioenergy)."
Mr Chandler said it was a global trend through South America and the Black Sea, and even in Australia.
"Domestically there is starting to be some evidence of it, over the past 12 to 18 months," he said.
Prices have been driven by low inventories of wheat and oilseeds, with a growing demand from the relatively new area of bioenergy plus increased demand from India and China, where there is a rapid increase in disposable income and a shift to a more Western diet.
He said the key question for 2008 was whether there could be "a sufficient supply side response to higher prices through acreage expansion and a return to more `normal' seasonal conditions, to meet this strong food, feed and energy demand".(The Australian)
Farmers applaud Government emphasis on agriculture
The National Farmers Federation is hailing the Prime Ministers' first visit to rural Australia as a success.
On Friday, Kevin Rudd and his new Agriculture Minister, Tony Burke, toured a beef property near Roma in western Queensland.
NFF vice-president Charles Burke says it gave rural lobby groups the chance to discuss climate change, and particularly carbon trading.
He says it displays the commitment of the Rudd Government to include agriculture in any discussions on an emissions trading system within Australia.
"From our point of view, it's very reassuring to know that he has agriculture high on his agenda, for making sure that we are able to participate in an emissions trading system, but more importantly that we're not disadvantaged by one," he says. (ABC Rural)
New Ag Minister hints at drought aid changes
The new Federal Agriculture Minister, Tony Burke, is flagging changes to drought support measures, to take climate change into account.
Mr Burke says some existing programs are based on the assumption conditions will return to normal.
However, he says the farming community will be consulted before any adjustments are made.
"I'm not interested in some sort of command economy prescriptive way of dealing with these issues," he says.
"I do think we've got to look at the incentives and the government programs to make sure that at each different point we've actually got the government programs understanding that climate change and the structural change to deal with it, is the fundamental challenge for agriculture into the future". (ABC Rural)
Wheat, Corn and Soybeans Sag on CBOT
Agricultural futures declined Thursday on the Chicago Board of Trade.
Wheat for March delivery fell 3.5 cents to $8.815 a bushel; March corn fell 2 cents to $4.0925 a bushel; March oats shed 0.5 cent to $2.7875 a bushel; January soybeans declined 3 cents to $10.965 a bushel.
Beef futures advanced while pork futures declined on the Chicago Mercantile Exchange.
February live cattle rose 0.2 cent to 96.15 cents a pound; January feeder cattle rose 0.25 cent to $1.065 a pound; February lean hogs fell 0.3 cent to 60.8 cents a pound; February pork bellies fell 0.77 cent to 89.4 cents a pound. (Associated Press)
NSW Parliament approves GM plan
The New South Wales Parliament has passed legislation about the planting of genetically modified canola.
The legislation approves a new committee, which will oversee the approvals process for growers wanting to plant the crop.
Paula Fitzgerald from Agrifood Awareness, which represents bio-tech companies and grain groups, says there is now some certainty for the industry.
"Certainly last week was spent trying to understand what the New South Wales legislation meant and whether that was a forward step and I think that the general feeling is that it is," she says.
"The other thing that we need to consider in terms of these state decisions is if the decisions are just around canola, what does this mean for other GM crops, whatever they might be, will they have a moratorium on them, will they have to go through a process, how will that work?" (ABC Rural)
ABARE cuts export earnings forecast
The Federal Government's commodity research agency now expects commodity export earnings to increase by 1.0 per cent in 2007/08. This figure is down from the 4.0 per cent rise forecast in September.
The Australian Bureau of Agricultural and Resource Economics (ABARE) said the change reflected the effects of drought and the strong Australian dollar.
"Farm export earnings are forecast to decline by more than 3.0 per cent to $26.8 billion in 2007/08 because of poor seasonal conditions in many parts of Australia,'' ABARE executive director Phillip Glyde said.
ABARE says the decline in farm export earnings is mainly because of drought-reduced winter grains crop.
Export earnings from grains are forecast to decline by 14 per cent, mainly because of substantially reduced carry-in stocks from the previous year, meaning volumes shipped will be well down, it said. (Herald Sun)
Fastest grain harvest for WA
Western Australia's grain handler says the state is having its fastest harvest ever with grain farmers already three-quarters of the way through harvesting.
Cooperative Bulk Handling (CBH) says the harvest estimate is 7.9 million tonnes, well down on the average of 11.3 million tonnes.
Operations manager Colin Tutt has attributed the speed to better machinery and an increased capacity on farms.
Mr Tutt says CBH will consider extending receival point hours and upgrading the facilities around the state next year to keep up with the pace.
"The header capacity and the new technology to get it off is just amazing and our company needs to adapt to the pace of harvesting," he said.
"In some situations around the state we struggle with it." (ABC News)
Strong demand for Aussie beef, but Korea looking to Canada
Australian beef is receiving strong demand from Korea as wholesalers accept that the United States will remain locked out of the market for at least the rest of this year.
But in ominous news, the Korean Government is now also looking to Canada - also locked out since the 2003 BSE detections in North America - to fulfill its beef needs.
According to Meat and Livestock Australia, the Korean wholesale market was firm last week, with demand for short rib - a popular item during the Lunar New Year period - continuing to strengthen.
MLA reports that importers have forecast that US beef will not be available this year so the price of short rib and other popular items are anticipated to increase until the end of the year.
Australia has continued to consolidate its market share in Korea in the absence of its North America rivals.
MLA reports that Korea's total beef imports in October were up 20pc on October 2006 to 21,762 tonnes, according to data released by KOTIS.
Of that Korean imports of Australian beef in October totalled 16,034t, 4pc above October last year, with Australian beef representing 74pc of the market in October, up from 63pc in September.
These sales were boosted by the suspension of quarantine inspections of US beef on October 5.
But Korea is now holding talks with Canada on to set new import conditions, which could lead to the eventual lifting of the four-year ban on Canadian beef, according to Yonhap news.
MLA says the media have reported that no deal has been reached yet with Canada, but both sides have agreed to hold further talks to work out outstanding differences.
Canada was recently given a 'controlled risk' classification by the World Organisation for Animal Health (OIE), placing it in the same classification as the US with regard to BSE.
This technically allows it to export all beef to Korea, with the exception of specified risk materials. (MLA)
$8 a tonne rise for export quality premium white grain
Australia's 30,000 drought-affected wheatgrowers lucky enough to have a crop this season at last have something to smile about.
The price of export quality Australian premium white grain has risen $8 a tonne during the past week.
Growers who have grain to sell into the national export pool this season could be paid up to $408 a tonne, wheat marketer and exporter AWB yesterday reported.
The price lift was attributed to stronger US Futures trading and a rising exchange rate.
Prices also have been pushed up by an international grains shortage caused by crop failures across Australia and in Argentina, which like Australia, is one of the world's leading grain producing nations.
Grain marketers, however, have warned that the present price for the APW variety could fall once the size of next season's European and United States harvests are known.
The price of feed and Durum grades remain unaffected by the factors that caused APW to rise.
This season's Australian wheat harvest is expected to yield just 12 million tonnes of grain, about half the national average.
David Johnson, AWB's national pool manager, said last night that this season's delivery and marketing programs were progressing well.
Yesterday AWB signalled the end to this season's Queensland harvest by closing off wheat deliveries to the port zones in Brisbane.
The harvest continues across the southern states with wheat deliveries to railheads due to continue until Christmas. (Herald Sun)
Drought and bottlenecks taking toll on trade defecit
AUSTRALIA'S strengthening dollar, drought and infrastructure bottlenecks have helped push out the trade deficit to record levels.
The difference between the value of Australian imports and exports -- on a seasonally adjusted basis as recorded by the Australian Bureau of Statistics -- lifted from $1.92 billion in September to $2.98 billion in October.
CommSec chief equities economist Craig James described the result as being of "banana republic proportions" and said it did not seem to make sense given the commodity boom.
It came as other economic figures showed inflation rose 0.3 per cent from October while company profits dipped 2.1 per cent in the last quarter.
HSBC chief economist John Edwards said profits were affected by timing considerations.
"After the strong profit performance in recent years we think the quarterly decline of little significance," he said.
Mr Edwards said the value of Australian exports was "well below where it was in the first half of last year, and volumes are not performing much better". (Bloomberg)
Australian wheat fuels Japan noodle boom
Australians know a lot of their economic good fortune comes from exports, and when it comes to markets Japan is one of the biggest.
But it is not just coal and gas that is being loaded on to ships, as Japan is also a big market for Australian food.
Wheat from Australia plays a crucial role in the availability of a well-loved Japanese dish: Udon noodles.
Udon is a staple dish of Kagawa Prefecture, on the island of Shikoku in central Japan, where in several hundred shops it sells for around a $1 bowl.
In recent years, Udon has gone nationwide, the genesis for noodle fast food chains that have mushroomed across the country.
One man credited with a big role in that boom is Kazutoshi Tao, a professor at Shikoku's Gakuin University.
Professor Tao in part sparked the craze by publishing a book on Kagawa's Udon shops, rating them and tallying the overall experience.
He says Australia has a key role in the noodles of Kagawa, as it supplies nearly all of the wheat used to make them.
"So lots of ordinary people know Australia is having a drought and the wheat has been badly affected. Everyone is paying a good deal of attention."
Enough attention to be worried about the price of Udon going up as a result.
However, Professor Tao says that is unlikely, as he believes the price of oil should be more of a concern.
The Australian wheat ended up as the core ingredient for the Japanese noodles after a freakishly wet summer in the early 1970s wiped out Kagawa's entire wheat crop. (ABC News)
Rain a mixed blessing for grain growers
The grain harvest in Victoria's Wimmera Mallee region is continuing to be mixed and highly variable.
The Birchip Cropping Group says the central Mallee is producing better yields than expected, but the southern Mallee's harvest has been tough.
Rain of between 10 and 20 millimetres last month slowed down the harvest and raised concern about grain sprouting in the head.
But the Cropping Group's Alex Gartmann says some Wimmera lentil and wheat growers found that there was also an upside to the downpour.
"The November rain has certainly turned things around," she said.
"If we didn't have that November rain we'd be in a really dire situation across the Wimmera, but that November rain has supported crops to really continue to reach potential."
She says the quality of barley crops in the Mallee is generally better than expected, with yields of between half a tonne and 2.5 tonnes per hectare.
But she says the results remain mixed.
"Generally on the lighter country yields are much better than anticipated and the heavier country it's a lot less," she said.
"Across the Wimmera we're hearing that there's an average of three tonne per hectare of barley, and people are about to start wheat, and generally lentils and chick peas are certainly reaching potential." (ABC News)
Dubbo leads lamb supply bounce
Lamb supply increased slightly this week at markets covered by the National Livestock Reporting Service with the big NSW selling centre of Dubbo leading the charge.
The Dubbo yarding almost doubled from a low base.
Nearby Forbes also reported a rise of 5000 head.
However, Wagga Wagga recorded a fall of 8000 to just 25,000 lambs in the wake of useful storm rain in the supply area during the past week.
This compares to regular yardings of about 35,000 head per week for the past month, possibly indicating a tightening of supplies in the next few months as pressure on producers to offload stock eases.
Quality at most centres was mixed as new season lambs from western areas run out and most of those consigned to auction showed signs of dryness and seed infestation.
In contrast to a few weeks ago, the best quality lots were among the old lamb section with shorn trade and heavy lambs attracting a premium at some sales. (MLA)
Grains group calls for WA to lift GM ban
Agriculture Minister Kim Chance says he will not consider reviewing the ban until the end of next year. (ABC)
The Commonwealth's grains research organisation has called on the Western Australian Government to join Victoria and New South Wales in lifting its moratorium on genetically modified (GM) crops.
WA Agriculture Minister Kim Chance says he will not consider reviewing the state's ban any earlier than the end of next year.
But the Grains Research and Development Corporation chairman, Keith Perrett, says the Government is denying Western Australian growers the chance to bridge the technology gap with their competitors.
He has rejected Mr Chance's claim that the lifting of eastern states moratoriums creates a risk of WA crops being contaminated.
"There's been GM products in Australia for many years now," he said.
"We've got cotton which has been growing in northern New South Wales and Queensland, central and western New South Wales for many years now.
"We don't seem to have a problem there.
"We've had trials of genetically modified canola grown in this country for many years now [and] we haven't encountered problems." (ABC News)
ABB Grain's FY profit falls 89%
ABB Grain Limited (ABB) said that severe drought conditions resulted in an 89% fall in net profit to $7.3 million for the year ended 30 September 2007.
The company reported that it would look for further opportunities and possible acquisitions in FY08, with the aim of extending its operations into New Zealand and Europe.
The agribusiness group advised that the result was consistent with its recent profit revision, in which the company cut its full year profit guidance by more than half to between $5 million and $8 million.
ABB Grain's net profit after tax was slightly higher than a consensus estimate among five analysts of $7.2 million.
Managing director Michael Iwaniw said that the drought, and the volatile market activity that followed, had a significant influence on the group's net profit.
"Our 2006/07 grain receivals of 1.8 million tonnes were just over a quarter of the previous year's 6.6 million tonnes," Mr Iwaniw said.
"However, a strong performance from our expanded malt operations, and growth in non-grain activities and value adding services have been real positives to come from the year," he advised.
ABB Grain posted a 32% increase in revenue for the year to $1.522 billion.
Mr Iwaniw said that despite the record low receivals, in the past five years ABB had been able to lower its break-even tonnage figure due to cost management and efficient operations.
GM canola approved
Both New South Wales and Victoria have lifted a 4 year ban on genetically-modified (GM) canola crops.
It now puts farmers in both states on a level playing field, with their overseas counterparts.
GM canola is now responsible for 70 per cent of the world's trade in the crop.
A Victorian government review concluded there were no health or environmental risks associated with GM farming.
Strict labelling laws will be placed so people know what they're eating.
But still, not everyone is pleased.
Western Australia and Tasmania had pleaded to New South Wales and Victoria to extend the ban.
In addition, there were also concerns the wind could carry GM seeds into non-GM areas. (Sky News)
WA farmers want bans on genetically modified crops reviewed
WA should review its ban on genetically modified crops, the state's farmers say.
Eastern state governments announced today that GM Canola will be grown in harvests next year.
WA Farmers president Trevor De Landgrafft said WA growers have been left behind by their overseas competitors in recent years and now they faced the risk of falling behind their interstate colleagues.
"There is no reason that the WA government should not follow the leadership demonstrated by their interstate counterparts and keep WA growers on an equal footing in relation to access to technology," Mr De Landgrafft said.
Yesterday, WA's Agriculture and Food Minister Kim Chance and Tasmania's Primary Industries and Water Minister David Llewellyn jointly called on Victoria, NSW and South Australia to maintain their freeze on the commercial production of GM crops.
A spokeswoman for Mr Chance today said the minister was disappointed with the NSW and Vic decisions.
However scientists believe GM technologies could one day help solve population pressures facing the world.
(PerthNow)
China faces large 2007 grain and oilseed supply deficit
Chinese think tank the National Grain and Oil Trade Center reports that the world's most populous nation is facing a significant grain and oilseed supply deficit as the rising population and strong demand have offset production increases and rising import levels. That's according to a story early Tuesday from Dow Jones Newswires.
The Trade Center estimates 2007 grain production at 501.5 million tons against demand of 527.5 million tons for a total short fall of 26 million tons. That is primarily due to a soybean deficit of 31 million tons, along with a half million ton rice deficit. Wheat's expected to have a 6 million ton surplus and corn could have a 3.1 million ton surplus. In their November 9 world production update, the United States Department of Agriculture placed Chinese corn production at 145 million tons, rice at 129.50 million, wheat at 106 million, and soybeans at 14.3 million tons.
Seeing a net deficit for supply is not really new territory for the Chinese. As recently as 2006, China produced 490 million tons of grains and oilseeds, with consumption estimated at 505 million to 510 million tons. (Brownfield Ag News)
ABB extends wool operations
Grains marketer and rural services provider ABB Grain Ltd is extending its operations in the wool sector, announcing that it will buy Western Australian-based Standard Wool Australia's broking and trading arm, Stawool Brokers, for an undisclosed sum.
Stawool is the second-largest wool broker in WA.
"It's widely acknowledged that this business is a leader in its field and is performing extremely well," said ABB general manager, pastoral and rural services, Steven Read.
"It's a first-class acquisition for ABB, enabling the company to further grow its rural services division into Western Australia."
ABB has been diversifying into other agricultural sectors besides grain, which has been significantly impacted by the drought and volatile prices.
During fiscal 2007, ABB established a wool export arm with the acquisition of Adelaide Wool Company, the second biggest wool company in South Australia. (The Age)
Japan Temporarily Bans Poultry from South Korea on Bird Flu Fears
Japan has temporarily halted poultry imports from South Korea because of a bird flu outbreak among ducks, the Japanese Agriculture Ministry said Monday.
The latest outbreak in South Korea, confirmed Saturday, involved a "low pathogenic" H7 strain, not the deadly H5N1 strain. The flu has not been known to spread to humans.
Regardless, quarantine workers slaughtered about 17,000 ducks at a farm in Gwangju, 205 miles southwest of the capital. Tokyo has asked Seoul for more details about the outbreak.
Japan lifted its most recent ban on South Korean poultry imports in July, prompted by a bird flu outbreak a year ago. Japan imported less than 1,300 metric tons chicken -- only 0.2% of Japanese consumption -- from South Korea in 2006, the Agriculture Ministry said. (Associated Press)
Canola yields looking better
Australia's east coast canola crop has been revised down again with the estimated overall production down about 10 per cent on last month's predictions, however it remains well above last year's yield.
The Australian Oilseeds Federation November crop report predicts the expected canola yield for the east coast to be about 953 000 tonnes, compared to the 2006-07 total of 512 000 tonnes.
The AOF's latest canola report said although a downturn in production was expected across Victoria, the outlook for areas in the south west and southern Wimmera were positive.
The report said extremely hot temperatures towards the end of October caused a lot of tipping on later crops.
The AOF estimates Victoria's yield to reach 248 000 tonnes.
Despite good recent rainfall in southern NSW, it is unlikely crops would have benefited from this.
There is very little left to harvest and windrowing is nearly complete. There was some damage caused by late frosts and it is estimated about 55 000 ha will be harvested for 40 000 tonnes in NSW, which is 10 000 tonnes above last year. (Country News)
Australia eyes African cattle breeds
Australia's cattle might soon be more fertile and have tastier meat, thanks to Africa.
The Beef Co-operative Research Centre has been working in South Africa to better understand their cattle breeds.
Chief executive Heather Burrow says they have identified several that could be successfully cross-bred with Australian cattle.
"Breeds like the Nguni, the Mashona, the Tuli", she says.
"We already have the Tuli in Australia and another breed that is now being imported into Australia as the result of our program in South Africa is the Drakensberger.
"We also have examples of the Nguni." (ABC Rural)
Harvest result better than originally anticipated
Over all there has been a much lower volume of grain and higher number of segregations than would be received in a typical season.
Generally though the news on the local harvest is not as bad as originally expected.
Mr Adam Nisbett (GrainCorp Regional Manager) said yesterday that initial expectations were for a harvest of “around” the 25,000 tonne mark for the entire region.
To date receivals have already exceeded this with over 20,000 tonnes taken in at both Condoblin and Mungincoble.
“Many growers are now winding up their harvest operations as there has been less to strip and it has been quicker to get off this year,” Mr Nisbett said.
“Reports are that there are still a few to come in from the south.
“Expectations are that before the end of the year the harvest could be somewhere close to the 100,000 tonne mark.
“This is really surprising given the season but this number is still a long way short of the one million tonne average that we would expect to take in from a good grain growing region such as this,” Mr Nisbett
Canadian canola supply projections vary widely
Supplies of Canadian canola at the end of the 2007-08 crop year are expected to either be very tight or ample, with the opinion varying significantly from individual to individual.
Projections for Canada's canola carryover in 2007-08 ranged from as tight as 1.1 million tonnes to as high as 1.9 million.
Ending stocks of canola in 2006-07 totalled 1.820 million tonnes.
"I am expecting Canada's 2007-08 canola ending stocks to be around the 1.900 million-tonne level," said Tony Tryhuk, vice-president and manager of commodity trading for RBC Dominion Securities.
He based his large ending stocks forecast on Canada's 2007-08 canola exports only coming in at 4.85 million tonnes and Canada's canola production estimate from Statistics Canada being understated by as much as 400,000 tonnes.
Statistics Canada, in its October production survey, estimated 2007-08 canola production in Canada at 8.864 million tonnes, which would compare with nine million during 2006-07.
Tryhuk said the canola export estimate was down from his original ideas, and reflected the slow pace of sales to date.
"There is lots of canola on farm, there is lots of canola in commercial position, and there just has not been the demand from the export sector to absorb those supplies," Tryhuk said.
He said the strong Canadian dollar was a factor in the reduced canola export picture. (Alberta Farmer)
Rabobank adapts to the changing wheat market
Rabobank has announced changes to its Harvest Advantage Loan, expanding its harvest finance product to include a range of pool providers, in addition to AWB.
Rabobank rural state manager for Western Australia, Crawford Taylor, says that the dynamic nature of the wheat market in WA has seen Rabobank adapt its Harvest Advantage Loan to improve flexibility in order to meet grower’s shifting needs.
“Rabobank thought that the logical response to the evolving market, which has seen multiple pool providers emerge, was to allow clients to choose from one or more pools for wheat delivered to the CBH storage network, within one Harvest Advantage loan,” Mr Taylor said.
“This increases flexibility with no additional paperwork.”
Harvest Advantage is now much more streamlined and provides a solution in a wheat market that has fragmented with multiple pool providers.
There are also no assignment fees, no establishment fees, no on-going bank fees and no underwriting fees, making Harvest Advantage very attractive to existing clients. (Rabobank)
AWB to appeal US ruling
Grains trader AWB has been dealt an expensive legal blow on the eve of this morning's annual profit announcement.
A US court has ordered one of AWB's subsidiaries to pay $US35 million ($A39.6 million) to Standard Chartered Bank.
In a statement issued after the share market closed last night, AWB said it intended to appeal the judgment made against its offshoot AWB (USA) Limited.
Standard Chartered Bank brought an action against the AWB subsidiary in February 2005 claiming it was entitled to financial compensation after several Indonesian counterparties defaulted on their exposures to US soybean contracts.
In the case Standard Chartered argued that, in a six-month period to March 2004, AWB agreed to sell more than 50,000 tonnes of US soybeans to three Indonesian buyers.
The trades, which were partly guaranteed by the US Department of Agriculture, were not completed after the Indonesian buyers failed to pay.
Standard Chartered purchased the government-backed credit guarantees from AWB but still suffered financial losses after the buyers defaulted.
The judgment given by the US District Court for the Southern District of New York will be appealed by AWB.
"AWB remains confident it has a very strong position and will vigorously appeal this ruling," AWB said in an ASX filing.
AWB scrip yesterday fell 8c to $2.68 as investors hedged their bets on the quality of the annual profit result.
The company's shareholders have been taken on a rollercoaster this year after the shares peaked at $4.33 in June.
Analysts have been reluctant to issue definitive long-term recommendations on the stock due to the significant regulatory risk that hangs over the company. (Herald Sun)
Record lamb, mutton exports to the Middle East
Continued strong demand from the Middle East has seen last year's lamb export record beaten in just 10 months.In the year to October 2007, 18,180 tonnes of Australian lamb were shipped to the region compared with 14,536 over the same period in 2006, representing a 25 per cent increase.
Total exports of Australian lamb to the Middle East have now more than doubled in the past three years.
The UAE has been the strongest market in the region and now accounts for about two thirds of total exports.
The year has also seen a surge in exports to Jordan and Kuwait. Most of the lamb exported to the Middle East are lightweight lamb carcases, either fresh by air freight or shipped in frozen form. Leg, forequarter and rack cuts are also popular.
Mutton exports also look set to beat last year's bumper volumes with 39,334 tonnes exported in the year to October, representing a 19pc increase on the same period last year. While Saudi Arabia remains the world's largest market for Australian mutton, the Middle East demand growth in the last few years has been driven by other markets such as the UAE, Kuwait and Qatar.
Total exports of Australian beef to the region have remained stable in the face of stiff competition.
MLA and Australian meat exporters will be involved in the International Travel Catering Services Exhibition in Dubai next month, with the regions largest annual trade show, Gulfood, upcoming in February 2008. (MLA)
Canada cautious about expanded U.S. beef trade
The United States lifted restrictions on Monday on some imports of Canadian cattle and beef that were placed when Canada found its first case of mad cow disease in May 2003.
But battered Canadian ranchers are wary of a pending court challenge to the new measures, and trade and markets remain far from profitable, the president of the Canadian Cattlemen's Association said.
"There are a lot of things that seemed to have lined up against us," Hugh Lynch-Staunton said in an interview.
The United States, Canada's largest export market, has allowed imports of live cattle under the age of 30 months since 2005, as well as meat from young animals, which are considered at low risk for bovine spongiform encephalopathy, known as mad cow disease, which takes years to incubate.
But a new rule allows imports of cattle born on or after March 1, 1999, as well as meat from all animals, recognizing Canada's safeguards against the brain-wasting disease.
The expanded trade could eventually boost competition and prices for older livestock, Lynch-Staunton said, although he said he expected a slow and cautious start.
The new rule is opposed by activist rancher group R-CALF USA and several U.S. consumer groups, which have asked a South Dakota court for an injunction to stop the trade, and filed a request for a temporary restraining order on Friday.
"That's hanging over our heads, so obviously people are going to be a little leery to invest too much in case (animals or meat) get stuck in transit," Lynch-Staunton said.
He said it was hard to project how many extra cattle would cross the border, partly due to the strong Canadian currency.
"Our dollar going above parity makes the price less attractive in the U.S.," Lynch-Staunton said.
But more Canadian ranchers are trying to sell their herds because of heavy financial losses, shifting land into more lucrative grain production, he said. (Reuters)
Australian Cotton Production to Fall to 30-Year Low
Cotton production in Australia, predicted to be the world's fifth-largest exporter of the fiber, may plunge 62 percent to a 30-year low this season because of drought, Cotton Australia Ltd. said.
The nation may produce 500,000 bales of cotton from the crop now being planted, Adam Kay, the industry group's chief executive officer, said today in a phone interview from Narrabri, New South Wales state. That compares with last year's 1.3 million bales and a previous forecast of 700,000 bales for this year's crop.
Australia's cotton production has fallen five of the past six years as prolonged drought dried up rivers and dams, reducing irrigation supplies. In a normal season, as much as 90 percent of the nation's cotton crop is irrigated, Kay said.
``People aren't prepared to take big gambles these days so where they haven't got the water they haven't planted,'' Kay said. ``There's no areas you can say are in good shape.''
Cotton prices have gained 29 percent in the past year as farmers in the U.S., the world's largest exporter of the fiber, shift to other crops including corn, seeking better returns.
Production of 500,000 bales would be the best estimate at this stage, Bob Bell, chief executive officer of Namoi Cotton Co- operative Ltd. said in an interview.
``The biggest challenge for growers will be keeping infrastructure up-to-date and continuing to invest, and certainly seeing out a substantially smaller production year,'' said Bell, of Wee Waa, New South Wales-based Namoi, which sells about a third of the nation's crop. ``I'm fairly confident about the longer term for cotton prices.''
The U.S. is forecast to be the world's largest exporter of the fiber in 2007-08, followed by India, Uzbekistan, Brazil and Australia, according to the U.S. Department of Agriculture. (Bloomberg)
Australia Beef Exports: Japan Largest Market; South Korea Surge
Recently, Australia’s Department of Agriculture, Fisheries and Forestry (DAFF) issued October 2007 red meat export data for Australia. According to the numbers, during October, Australia exported 86,607 MT of beef and veal. This was 19.3 percent more than the previous month but was 4.5 percent less than October 2006. Specifically, frozen beef exports equaled 61,603 MT, which accounted for 71.1 percent of the total. Fresh, chilled beef exports equaled 25,004 MT. Australia’s beef exports to Japan during October rose 23.7 percent over September to 33,065 MT.
However, this was down 10.7 percent from October 2006. Total year-to-date beef exports to Japan equaled 314,494 MT, 4.5 percent below a year ago. Japan was Australia’s largest beef export market with 40.3 percent of the total. During October, Australia exported 27,212 MT of beef to the U.S. This was up 8.5 percent over the previous month but was down 3.4 percent from October 2006. Year-to-date beef exports to the U.S. were 2.9 percent higher than a year ago, amounting to 256,481 MT.
During October, Australia exported 13,293 MT of beef to South Korea, which was up 28.2 percent over the previous month but was down 5.9 percent from October 2006. The monthly surge was due to South Korea re-implementing a ban on U.S. beef. Year-to-date beef exports to South Korea totaled 115,367 MT, slightly less than a year ago. Overall, Australia’s total year-to-date beef and veal exports equaled 780,609 MT, nearly unchanged from the same period a year ago. (Cattle Network)
Shock election results for wool body
In a surprise shake-up of the wool industry's peak body, two of its most vocal opponents will now sit on its board of directors.
Long-time critic Charles Olsson and sheep meat processor Roger Fletcher won big support from woolgrowers to be elevated onto the board of Australian Wool Innovation, along with incumbent Dr Kevin Bell.
Mr Olsson and AWI chairman Ian McLachlan have publicly clashed on a number of major issues in the past, but Mr McLachlan says those differences will now be set aside.
"We've agreed that the industry is bigger than these rows so we'll get on alright," he says.
"I've been in politics, I get on terribly well with a whole lot of people I used to have barneys with because they're on the other side of politics.
"I know them well now and there is just not a problem at all".
But Mr Olsson, a former chairman of the Australian Wool Growers Association, is not making any guarantees.
"I think that debate is healthy and there is nothing wrong with good heated debate in fact the industry needs more of it". (ABC Rural)
Soybeans Rise to 19-Year High on Increasing Demand in China
Soybeans rose to a 19-year high on speculation that demand will increase in China, the world's biggest oilseed consumer.
China will increase supplies of food and energy to slow rising costs, Premier Wen Jiabao said at a State Council meeting today. The country's consumer prices jumped 6.5 percent in October from a year earlier, matching August's gain as the fastest pace in a decade. Vegetable-oil prices surged 34 percent because of shortages, the statistics bureau said yesterday.
``China's food inflation is a threat to their economy, and they will pull out all the stops to fight it,'' said Roy Huckabay, executive vice president at the Linn Group in Chicago. Pep=ople in China spend more than 35 percent of their incomes on food, he said.
Soybean futures for January delivery rose 20.5 cents, or 1.9 percent, to $10.7675 a bushel at 11:15 a.m. on the Chicago Board of Trade. The price earlier reached $10.7925, the highest since June 1988. Most-active futures have jumped 64 percent in the past year after U.S. farmers planted the smallest acreage in 12 years to sow more corn.
Soybean-oil futures for January delivery rose 0.87 cent, or 2 percent, to 45.45 cents a pound, after earlier climbing to a 33-year high of 45.51 cents. Futures have gained 56 percent in the past year on increased demand for alternative fuels made from oilseeds including soybeans.
On Sept. 21, China cut import duties on soybeans for the three months through December and ordered corn, vegetable oil and pork to be sold from state reserves to curb food costs. (Bloomberg)
SA harvest hits top gear again
Grain has been pouring into silos across the State in the past week, as harvest shifts into top gear after earlier rain delays.
ABB operations manager, Andrew Hannon said, "Harvest has really ramped up now," he said.
"The good weather has helped things along."
A lot more grain is expected in the coming week, with the warm weather allowing croppers to put in longer hours on the header.
But with a lot of grain being harvested at the one time, silo delivery delays can be expected. (Stock Journal)
Indonesian demand boosts live cattle exports
It's predicted that livestock exports will defy a high Aussie dollar and rising oil prices, and increase to the highest levels in | |