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australia_rural.txt
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australia_rural.txt
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PM denies knowledge of AWB kickbacks
The Prime Minister has denied he knew AWB was paying kickbacks to Iraq despite writing to the wheat exporter asking to be kept fully informed on Iraq wheat sales.
Letters from John Howard and Deputy Prime Minister Mark Vaile to AWB have been released by the Cole inquiry into the oil for food program.
In one of the letters Mr Howard asks AWB managing director Andrew Lindberg to remain in close contact with the Government on Iraq wheat sales.
The Opposition's Gavan O'Connor says the letter was sent in 2002, the same time AWB was paying kickbacks to Iraq though a Jordanian trucking company.
He says the Government can longer wipe its hands of the illicit payments, which totalled $290 million.
"The responsibility for this must lay may squarely at the feet of Coalition ministers in trade, agriculture and the Prime Minister," he said.
But the Prime Minister says letters show he was inquiring about the future of wheat sales in Iraq and do not prove the Government knew of the payments.
"It would have been astonishing in 2002 if as Prime Minister I hadn't done anything I possibly could to preserve Australia's very valuable wheat market," he said.
Email questions
Today at the inquiry, AWB trading manager Peter Geary has been questioned about an email he received in May 2000.
It indicated that the Iraqi Grains Board had approached AWB to provide "after-sales service".
Mr Geary said he had forwarded the email to two AWB colleagues and did not remember reading it, although he said he may have skimmed it.
Support
AWB still has plenty of support among grain growers in central western New South Wales despite the revelations of the Cole inquiry.
Producers say they broadly support AWB's attempts to get the best prices for their products.
"I think it's all a ploy by overseas interests to try and get the single desk put aside. The stories that are going round about the commission and everything, I think that's the way people have got to do things to do business with the Middle East and Asian countries," one producer said.
"I think it's actually a pretty reasonable system and I think actually I'd give them pretty fair support at the moment. I think on average they've performed fairly well," another producer said.
"The biggest thing about someone else taking over is whether the multinationals will get too much of a foothold in there and take it too much to their advantage."
Grain prices
But an analyst predicts grain prices will drop another $20 a tonne on the back of the inquiry into AWB.
Malcolm Bartholomaeus says pool returns have already dropped by $20 a tonne this year from the average price over the past five years.
He says the premiums that AWB was achieving through its wheat export monopoly have been severely eroded.
SA farmers help fire ravaged neighbours
Farmers in South Australia's south-east are donating truckloads of hay to their neighbours across the border in the wake of the Grampians bushfires.
In just a few days, farmers have donated 250 tonnes of hay, as well as agistment for cattle.
They say that is just the beginning.
Fodder drive coordinator Peter O'Conner says he has been overwhelmed by the response.
"All the hay that's going this week has all gone from places that have donated one load or up to two loads of hay," he said.
"We've got one man that's donated two full loads and the rest are all one loads, straight loads that we're moving this week.
Floodwaters close highway
A major highway between the Northern Territory and Western Australia remains blocked by floodwaters today.
The Victoria River has cut the Victoria Highway and also flooded the remote Pigeon Hole Aboriginal community.
Stockman Simon Ham describes the relocation of a hundred people to higher ground.
"They had all their vehicles moved out of the community and they had a few camps set up and they were moving more people and belongings out with a couple of boats, just onto higher ground, only 500 metres from the community," he said.
"They are up on a sandstone ridge at the moment and I think the river heights might be up for a little longer but I think it [the Victoria River] will start going down."
Grain company sold for $9m
Tasmania's main grain company has changed hands for the second time in just three years.
The former state-owned Tasmanian Grain Elevators Board has been sold to local agribusiness Roberts Limited for about $9 million.
The deal includes silos at Launceston, Devonport and Powranna in northern Tasmania.
John Macleod from Roberts Limited says the company bid when the board was first privatised.
"We were very disappointed we weren't successful at that point of time," he said.
Wine workers stop work
Workers at Hardy Wines' Stanley winery in south-western New South Wales have walked off the job for the second time in a week.
Forty staff walked out this morning in a dispute over a new enterprise bargaining agreement.
The stopwork comes just as the region's wine grape crush gets under way.
Hardy Wines took the matter to the Industrial Relations Commission (IRC) on Friday.
Wool body eyes sportswear industry
The $50 billion global sportswear industry is the new target of wool promotion body, Australian Wool Innovation (AWI).
AWI is showing wool blend t-shirts and casual wear to manufacturers this week at the largest trade show for the industry being held in Germany.
AWI's Len Stephens says although wool-blend sportswear will be at the pricier end of the market, shoppers are willing to pay more.
"The sports apparel market sector is one of the biggest and certainly the fastest growing apparel sector in the world, and it's no secret that wool hasn't had a very big share of that market at all," he said.
"The level of wool, particularly Australian merino wool in the sports market is really almost below the radar.
Organisation to step up banning rodeos campaign
Tasmania's rodeo industry is under sustained attack from animal rights activists after another animal had to be destroyed at a weekend event.
A bucking horse was put down after breaking a leg at Ulverstone on Saturday.
Two weeks ago, a bull was destroyed after apparently breaking its back during a bull-riding competition at Carrick.
The owner of both animals, Brian Fish, says they were unfortunate accidents and not an animal welfare issue.
But Emma Haswell from Against Animal Cruelty Tasmania says her organisation will up its efforts to have rodeos banned.
Snails used in cancer research
New research is under way to investigate whether South Australian sea snails could eventually be used to treat cancer.
Until now the state's snail population has been virtually unexplored but Flinders University hopes to discover beneficial compounds in predatory sea snails, known as whelks.
Marine biologist Dr Kirsten Benkendorff says the work follows research overseas, where clinical trials are now investigating anti-cancer properties.
"The whelks that I'm looking at at the moment are not currently harvested and not really considered a useful resource so I think that there's a lot of potential economic benefits from that side of things," she said.
Processors fail to meet kangaroo meat demand
International demand for kangaroo meat is putting pressure on Australian processors.
Despite high prices, harvesting quotas are not being met leaving a big gap in the market.
Phil Franolick from King River International Processors in Perth says Europeans are attracted to the meat's low fat content and Russians are consuming large amounts of kangaroo sausages and mince.
"As far as I know every skerrick of manufactured meat that is produced by human consumption processors virtually goes to the Russian market now," he said.
People warned to be on snake alert
With temperatures soaring this summer, particularly in southern Australia, snakes are on the move.
People are being warned to keep their eyes open out in the paddock, especially in areas hit by bushfires, with snakes forced from their usual habitat.
Maria Dovey from Reptile Rescue Tasmania has these words of advice.
"Any people who are regularly outdoors, whether they be camping, bush walking, people who're on the land working, they must always carry at least two bandages with them and a mobile phone," she said.
Aerial spraying begins to control locust threat
Victoria's high country farmers have begun aerial spraying to try to control the threat of locusts.
It is the first time locust plagues have made it to the region, with continued rain and warm weather assisting breeding conditions.
Pastures and crops have already been wiped out by the pest.
Injury won't stop baton runner
A southern Queensland cattle farmer says a knee injury will not stop him running in the Queen's baton relay today in the lead-up to the Commonwealth Games.
Stanthorpe's Bill Bonner travelled to Coffs Harbour in New South Wales to run his leg of the relay.
And he says injury will not prevent him from making the 500 metre dash.
"About two weeks ago I was jumping off my motorbike and twisted a ligament in my knee and I haven't been able to do more than walk since," he said.
"But I promise you I will run that baton because you get such an adrenalin rush that I think you could only have one leg and you could still run it."
The NZ apple debate continues
In a New Zealand newspaper on the weekend, members of the New Zealand apple industry voiced concern regarding the legitimacy of the "science" used in the draft Import Risk Analysis put out last month by Biosecurity Australia. The draft Import Risk Analysis (IRA) determines the risk of fireblight and other pests and diseases if New Zealand apples are imported into Australia.
Under the World Trade Organisation's rules Australia can refuse the importation of New Zealand apples if they are able to provide scientific evidence of a substantial disease or pest risk. But according to the New Zealand apple growers, "professional" scientific evidence shows that mature apples imported into Australia pose no risk of fireblight. However the spokesperson for the New Zealand based Australian Apple Access Group Phil Allison says Biosecurity Australia has not provided the mathematical model used to determine the "scientific" evidence stated in the draft IRA.
A spokesperson for Biosecurity Australia said: "the formulas used in the risk assessment are provided in the Draft Import Risk Analysis Report on New Zealand Apples, which was published last December for anyone to read. A competent modeller can reproduce the model used in the risk analysis from the formulas given in the report." The chairman of the fireblight task force, John Corboy, says the response and concern from New Zealand apple growers regarding the draft IRA is not surprising, but Australia has to be able to exercise its right to refuse the apples based on the scientific evidence it has presented in the IRA.
Younger trees producing more pears
A trial plot of young williams pear trees has produced fruit three years after they were planted. Usually the trees don't produce fruit until they're about five or six years old. The trees are part of a five year experimental project, funded by SPC Ardmona through the Canned Fruits Association, Horticulture Australia Limited and the Lenne family orchard - where the trial plot is located.
Horticulture consultant Bas Van Den Ende says the aim of the project is to increase the number of williams pears grown in the future by encouraging the younger trees to produce earlier than usual.
Local federal National MP supports AWB single desk
The federal Member for Parkes, John Cobb, has brought into the debate over the future of AWB. This comes as the Cole inquiry continues to examines AWB's role in the Iraq oil-for-food program. On top of this the National party will today try and reinvent itself. Mr Cobb says he supports the single desk and producers must become far more pro-active. On the issue of the National party's future, he says they will make themselves different from the Liberals. Mr Cobb says they do represent regional areas far better then his Liberal colleagues.
Fish deaths believed to be due to lack of oxygen
The Department of Primary Industries is investigating a big fish kill in the Lachlan River upstream of the Lake Cargelligo Weir. Between 150 and 200 native fish died in the incident earlier this month. District Fisheries Officer Phillip McCarthy says murray cod, bream and golden and silver perch were killed but no introduced species died. He says inquiries suggest the deaths were the result of an increased water flow not chemical poisoning.
Vegetable industry concern on labels
Agriculture group AUSVEG says food labelling laws in Australia are a joke because nobody follows them and enforcement of the rules is non-existent. AUSVEG says consumers are still being fooled into thinking they're buying Australian products because of false or poor labelling.
Red tape slows west Kimberley horticulture
The Kimberley could be WA's food bowl with its top soil, available water and sunshine all year round - though its facing hurdles to expand. Sweet potato grower Paul Higgins still relies on a generator and says Broome horticulturalists are the only ones in the state not connected to the grid. He and his neighbours have been applying to get a nine kilometre extension to the current grid system to bring them into line. A spokesperson from Western Power says it is possible, though it's up to customers to pay for their connection costs, regardless of the distance from the existing grid. Land acquisition is also causing headaches. Mr Higgins purchased adjoining country last June, though still hasn't received title. He can't improve the land until this is cleared. "All the issues have been resolved - area surveyed, native title issues have been put to bed, monies have been paid, but still we don't have land title. We can't clear the land, apply for water title, can't do anything," he said. The Minister for Planning and Infrastructure, Alannah McTiernan, says the seven month delay is regrettable and Mr Higgins should have been made aware of the hold up in the West Australian Planning Office because the land was not correctly zoned. Though Ms McTiernan says the delay may have worked in his favour, given the land was sold at 2004 property prices. Mr Higgins still waits for the official all clear before he can start ploughing the Pindan for more potatoes.
Richmond River to stay open to fishers
The Department of Primary Industries has decided against closing the Richmond River to commercial and recreational fishers in the wake of last week's fish kill. About 300 dead fish and eels were discovered near Wardell last Thursday, when oxygen levels in the water dropped alarmingly. The acting director of fisheries management, Anthony Hirst, says inspectors will take further samples from the river tomorrow.
Rural woman finalist
The next 10 days may seem like an eternity for one at least one Rosebank farmer. Catherine Ford is one of three finalists in the quest to find the New South Wales Rural Woman of the Year.
The macadamia producer hopes a win in the event will help her to produce a guide promoting sustainability in the industry, but she admits she's amazed to have even made it this far.
DSE 'is carrying out proactive Grampians burning off'
On the rural report yesterday we heard farmers and CFA officers say they feel the intensity of the Grampians fires could have been lessened if more fuel reduction burns had been carried out in the national park. Charley DeFegley, who's the Ararat VFF branch secretary and a CFA divisional commander, said he felt not enough burning off had been carried out and this had contributed to the destructive force of the fire. But the Department of Sustainability's fire manager for the Horsham district and incident controller for the Grampians fires, Geoff Evans, says the agency has a proactive burning off policy. He says burning off is hampered because some landowners are not keen about burning off beside their properties and the weather does not allow controlled burns at some times of the year, giving a very small window of opportunity. He says there is also strong division within the community about whether more or less burning off should be carried out in the national park. But Mr Evans says about 5,000 to 8,000 hectares of the park are burnt off every year.
Farmers and ag agencies get speedy aid to farmers
The state government has announced it will commit millions of dollars to the recovery effort for the new year bushfires including the blaze in the Grampians and a ministerial task force is to start assessing need. The government says it will also help landowners facing hardship as a result of their water supplies being used by firefighting. But already, Department of Primary Industry officers, the Victorian Farmers Federation, haulage contractors and farmers all over western Victoria, have been working at a grassroots level to help fire affected landowners. Hundreds of tonnes of hay, 21 semi-loads of which was brought to a collection point at Moyston from Warrnambool yesterday, has been donated to farmers who need fodder for their surviving animals. Bruce McKay says he has been on farms helping to put sheep down and fixing fencing in the Willaura area. Tim Wrench from the Warrnambool Coop says people came from all around the area to donate hay. Haulier Scott Wilson from Koroit said when he went onto farms to collect hay people said "just load up until you're full". Neil James from the DPI says hay is being donated from New South Wales and South Australia. Charlie DeFegeley from the VFF says the response has been amazing.
Fuel price, weather blamed for hike in fresh food costs
Fuel prices and fluctuating weather conditions are being blamed for a 12 per cent jump in the cost of fresh food over the past year.
The latest food industry analysis from Rabobank shows consumers are paying more for their milk, meat, fruit and vegetables.
But Rabobank's Dr Ben Russell says the money is going to manufacturers and processors, not growers.
"In the case of passing on higher fuel prices it's to the contrary because farmers have got to pay higher fuel prices as well as see the retail prices of the products they're producing going up," he said.
Low prices, falling demand slow down wheat exports
Wheat exports have slowed due to low prices and falling demand from Australia's traditional markets.
Despite some sales to Egypt, other markets including Iraq, Pakistan, China and India have failed to deliver the expected number of contracts.
With the second largest global crop on record, competition for tenders is particularly fierce.
Grains trader Lloyd George says there are a range of factors for the slow-down.
"Certainly Iraq has been an important customer of Australia's over a period of time, put in pretty significant tonnages and over the recent months AWB hasn't been exporting the quantities we have in the past," he said.
"But there's a whole bunch of broader issues out there as well. A lot of the markets whereby Australia would hope to sell the quantity of the harvest into are the same markets that are quiet this year."
Iraq market
AWB's national pool manager David Johnson denies the oil-for-food inquiry is having an impact on trade and says Australia has not lost Iraq as a major market.
He says AWB submitted a tender to supply a million tonnes of wheat to Iraq last week.
"We'll be looking to participate in that tender, absolutely," he said.
"Probably relatively, compared to the structure of the market in previous years, this pool return might look a little different but the world market is different.
"I think it's just a fact that the export business is extremely quiet and I think you'd find the same comments from other exporting countries around the world."
AWB has announced an increase to new season pool estimates, lifting the returns for hard wheat by $2.00 a tonne and for noodle grades by $4.00 a tonne.
There is a mixed outlook for other grains.
Record soy bean harvests in the US, Ukraine and Brazil mean there is a large global supply of the canola alternative, which will put pressure on oil seed prices in Australia.
David Syme from the WA Grain Pool says malting barley sales have been slow due to the Chinese New Year but sales should soon pick up.
"At this point in time, Australia really has been holding the major stocks of malting barley around the world," he said.
"The Canadians don't have a lot to offer to the marketplace, that puts us in a good position and of course the next lot of supplies of malting barley really come out of Europe in August, so some time away yet.
"Once the Chinese re-emerge we look forward to a strong selling program."
Inquiry chief
Meanwhile the head of the oil-for-food inquiry has yet to respond to complaints that the investigation is not being conducted fairly.
Counsel for AWB told the hearing yesterday that witnesses had been ambushed and ridiculed.
The comments were in response to criticism from Commissioner Terence Cole last week that AWB's level of cooperation was a facade.
AWB's lawyer said Commissioner Cole's expectations were unreasonable because of the time available to prepare witness statements and the availability of documents.
In another development, the New South Wales Farmers Association says it is prepared to fight to maintain the single desk for wheat exports.
Despite keeping a low profile since the start of the inquiry, the association has today come out in support of the current monopoly export system.
Grains committee chairman Angus McLaren says growing pressure from opponents of the single desk is concerning but grain growers are prepared for any challenge to their marketing system.
"I think the most important thing we can do and what we've been concentrating on doing is gathering our thoughts and doing research and preparing for the battle that we think probably will occur," he said.
Lib MP pushes for NZ apple ban
A federal Liberal Party MP is pushing for a permanent ban on apple imports from New Zealand.
Russell Broadbent from the seat of McMillan, east of Melbourne, is drafting a private member's bill to ban imports from any country with the disease fireblight.
Federal Agriculture Minister Peter McGauran has rejected the bill, saying it would also affect a wide range of imports and exports.
But Mr Broadbent says he will push on with the plan.
"Mr McGauran is the Minister but he doesn't actually have many orchards in his seat of Gippsland does he?" Mr Broadbent said.
"So I don't suppose he's exposed as closely to the issue and as passionately to the issue as many of the backbench members are across the nation."
Avocado growers to compete with NZ imports
With harvest about to begin, avocado growers are facing stiff competition from New Zealand imports.
For the past five years, the imports have petered out before the start of the local harvest but this year a record New Zealand crop has led to a 50 per cent jump in exports to Australia.
North Queensland's Shepard avocados will be the first to be picked here.
Shepard Australia chairman Jim Kochi says growers need to focus on sending quality fruit to the markets.
"They certainly don't have enough people left in New Zealand to consume their crop, I think they're all here in Australia ... most of them and so the rest of it is coming to Australia and it is a large volume of fruit," he said.
Govt urged to get tougher on enforcing food labelling laws
Fruit and vegetable growers are calling on the Federal Government to get tougher on states which do not enforce country-of-origin labelling laws.
Producer group AUSVEG says some states are not pushing for new laws to be implemented on fresh and packaged produce, and that is misleading consumers.
Chief executive John Roach says the Australian Consumer and Competition Commission (ACCC) needs to look at the issue again.
"Excuse the pun out of the vegetable industry but you do need a reasonable amount of carrot and you do need a little bit of stick," he said.
"And what has not happened with any consistency across Australia is that last one, that bit of stick, it is not consistent - it varies hugely and often there are cases where it doesn't exist at all."
The ACCC says the labelling issue has been looked at and the authority is satisfied with current compliance.
Growers to get less for currant crop
Dried fruit growers supplying Australia's largest processor have been dealt a major blow.
Uncontracted currant growers have learnt that they will receive just $650 per tonne for their fruit this year, half of what they were paid last year.
Code of conduct for rodeo organisers
Rodeo organisers in Tasmania will have to comply with a mandatory code of conduct in the future.
The code is being implemented after a public outcry over rodeo practices.
There have been two very public incidents at rodeos in the past fortnight that have outraged animal rights activists and the television watching public.
A bull was put down after dragging its paralysed hindquarters behind it as it left the ring and on Saturday a bucking horse was put down in the arena after it broke a leg as it exited the chute.
The public outcry has forced the State Government to declare a mandatory set of regulations will soon be enforced on all rodeos before a permit is issued.
A major requirement will be for a vet to be on site at all events, rather than only on call.
Camp cooks in demand
Camp cooks and grader drivers are proving the hardest jobs to fill on cattle stations in northern Australia this year.
The lure of high-paying mining jobs has kept many away from the Kimberley, in particular.
While they have been lucky to get a full team at Flora Valley Station near Halls Creek, manager Wayne Bean says camp cooks are a dying breed.
"One time, once people finished working as stockhands or ringers on stations they found their little niche in life, either cooking for the station, or driving the grader or running as a bore runner but that just doesn't seem to be happening now," he said.
"People are drifting off into the mines and other big corporations and there's still a few that seem who enjoy being on the stations, and it's not about money for them.
Flooding causes detour
Floodwaters in the Northern Territory are still blocking a major highway today.
The Victoria Highway between Katherine and Kununurra is cut by swollen rivers in at least three places.
NZ shearers break work record
A team of New Zealand shearers has broken the world three-stand lamb shearing record
Jimmy Clarke and Peter and Shane Harvey shore 2,350 lambs in nine hours at Mt Linton Station on the South Island yesterday, breaking the record by 400 head.
Peter Harvey says he has always wanted to shear 700 head a day and has now achieved that goal but did not realise how hard it would be.
Live exports to Egypt halted
The Federal Government has halted live cattle exports to Egypt in the wake of mistreatment claims.
Agriculture Minister Peter McGauran says $350,000 was spent on improving the treatment of cattle at the Bassatin Abattoir in Egypt after cruelty concerns were first raised in 2003.
But Channel Nine's 60 Minutes program last night showed footage of cattle having their tendons cut, which the program says was filmed last month.
Mr McGauran says his decision to halt the trade while the claims are investigated, is not an extreme reaction.
"We shouldn't be defensive about this," he said.
"Where allegations are made, no matter how ill-founded or how lacking in evidence we must confront it head-on if we are to retain the confidence of the general public and fulfil our responsibilities to farmers."
Meat and Livestock Australia says the ban sets a bad precedent.
General manager of live exports, Mike Hayward says he is certain the cattle showed in the 60 Minutes footage were not from Australia.
And he denies suggestions little has changed since the cruelty claims were first raised three years ago.
Iraq will still buy Aust wheat, Vaile says
Trade Minister Mark Vaile has confirmed Iraq will continue to buy Australian wheat but not from current exporter AWB, which is facing claims it paid kickbacks to Saddam Hussein.
But according to grains analysts Australian growers could stay shut out of Iraq until August.
While some grain exporters have already lodged applications to export to Iraq, grains analyst Lloyd George says the next Iraq wheat tender may not by for another four months.
"Not having access to Iraq for maybe 60 per cent of the year would be significant," he said.
But following his mission to Baghdad, Mr Vaile says Iraq could be ready to take as much as 350,000 tons of wheat a month, but cannot confirm any deal or when it may start.
"There will be further tenders coming up in the short term, we need to look at what mechanisms need to be deployed in the meantime to get our wheat growers access to that," he said.
Meanwhile representatives from grain companies ABB Grain, CBH and Graincorp are meeting with federal politicians today.
Western Australian Liberal Wilson Tuckey has organised the meeting to allow MPs to meet alternative grain traders and learn more about the grains industry.
ABB's managing director Michael Iwaniw says while his company is not advocating change to the wheat single desk, it is ready to take advantage of it.
"If, and I stress if, the legislation were to change and if there were opportunities, and if perhaps we could assist in the marketing of wheat for the benefit of Australian growers then we will certainly look at it," he said.
A lecturer in business strategy at Melbourne Business School says grain growers would be better off without a single desk.
Professor Paul Kerin says the oil-for-food inquiry justifies the need to introduce free competition, and let alternative exporters to enter the market.
Professor Kerin says the ability to spread risk is the key for growers.
"Under free competition, growers have a choice and if one of those traders messes up, then it's not so much of a problem for growers because they can change to another trader," he said.
"In fact, growers should have the right to punish a trader if they really mess up, and so growers will be better off.
Wool market expected to continue gaining ground
The wool industry is closely watching how China reacts to climbing wool prices with the season's biggest sales this week.
More than 82,000 bales are on offer in the wake of strong global interest which has pushed prices to a season high of 746 cents a kilo clean.
But Maurie McNeill from Elders Wool says despite some concern among buyers, the market should continue to gain ground.
"We've got the largest offering of the season coming up this week, so obviously yes we are cautious and we're seeing quite a bit of Chinese resistance at these levels," he said.
Harvey Beef handover delayed
The handover of Western Australia's largest beef processor and exporter Harvey Beef has been delayed while the new owners try to strike a deal with workers.
The Stark-Harmony consortium was due to takeover today but has asked for a one-week delay to allow workers to vote on a new enterprise bargaining agreement.
Feedlotter Paul O'Meehan who helped broker the Stark Harmony deal, says he hopes they can sign off on the deal by next Monday.
"The new owners are better off getting these problems sorted and starting with a fresh slate rather than going into business and not being organised," he said.
Campaigners worried about approval of 'terminator technology'
Gene ethics campaigners are concerned a technology which stops seeds breeding naturally will be approved for commercial cropping in Australia.
Members of the United Nations Convention on Biological Diversity, including Australia, banned "terminator technology" in 2000, when global protests forced biotech company Monsanto to state it would not commercialise the process.
But Bob Phelps from the Gene Ethics Network says the Federal Government is now reconsidering its stance which would threaten the natural biodiversity of seed crops.
"At a recent meeting in Granada in Spain, the Australian Government was arguing that the current ban should be modified," he said.
"The officials are saying that there is no ban on terminator in Australia at the moment and that any application that was made to the Australian regulators would be examined on a case by case basis."
But Dr Jim Peacock from the CSIRO's Plant Industries does not see the technology as a threat.
Research to investigate fish movements
Marine scientists say it is too early to tell whether climate change is responsible for a new mix of marine species being found in Tasmanian waters.
Increasing numbers of southern Australian fish are being discovered off Tasmania's coastline.
Two silver drummers were recently caught for the first time off the wharf at Stanley in the state's north-west.
CSIRO scientist Dr Peter Last says research is being carried out into whether climate change and warmer water is the cause.
"It turns out that something like 10 per cent of the species that we have in the coastal areas of Tasmania have moved further south," he said.
WA braces for third cyclone
The north-west of Western Australia is bracing itself for a third cyclone in as many months, as a tropical low develops off the Pilbara coast.
The Bureau of Meteorology expects the low to intensify rapidly and develop into a cyclone later today.
Aquatic weed to be tested overseas
An invasive aquatic weed is proving extremely hard to eradicate from the Northern Territory.
Cabomba has been discovered in the remote coastal community of Gove.
Further west, the Darwin River has been found to be the only place in the nation where the weed is producing viable seed.
Regional weed officer Steve Wingrave says that explains the rapid spread of the weed along 11 kilometres of the river.
"It's an ornamental plant, the same as roses or any plant you have in your garden," he said.
"Lots of them are hybrid varieties so they are not going to produce viable seeds.
"It turns out that we have got a variety which is producing viable seed. But it mightn't be a result of the variety we have got.
Farmers look to overhaul image
A campaign to overhaul the image of Australian farmers kicks off in Queensland today.
The "Every Family needs a Farmer" promotion is being run by Agforce and features the Coe family, from Durong, in the state's south.
Cattle and grain producer Karen Coe hopes it will change city people's perceptions of agriculture.
"Just even on small terms we have friends come out and say goodness you've got lots of trees and they don't fully understand that the way we farm these days is very different to driving a tractor around the paddock and ploughing, ploughing and ploughing," she said.
New marine species found in reef survey
Several new species of fish, plants and at least one new species of crab have been discovered in a big new survey of the Great Barrier Reef.
Dr Roland Pitcher from the CSIRO says scientists spent more than 300 days at sea covering 536,000 square kilometres of the reef from Cape York to Fraser Island.
"We've seen a number of new fish, possibly a new pipehorse and maybe a new species of crab at least," he said.
"And we can also confirm that there's been a number of species that have been confirmed in Australia waters for the first time.
ABARE Outlook 2006 conference
Today's National Rural News was broadcast live from the ABARE Outlook conference in Canberra.
Matt O'Sullivan: "The Bureau of Agriculture and Resource Economics is taking its best shot at predicting what's going to happen in the farming and mining sectors over the next 12 months. It's fairly good news so far, depending on how you look at it, because it appears there won't be too many nasty surprises for the nation's farmers this year. James Martin has been talking to ABARE to get the latest, what's the story James?"
James Martin: "Matt, I don't usually like using the word normal when it comes to forecasting, but this is as normal an outlook as what I can remember. It's a story of continuing to build after drought, but with that predictable warning that without greater improvement in world trade conditions, the terms of trade for farmers are really going to squeeze. ABARE tells us though that perhaps more of the same is not necessarily a bad thing. His morning, for instance, it's telling us that the grain harvest for 05-06 is the second highest on record. We've also seen, of course, good movement of beef into Japan, and we're even seeing some rebound in the wool price as well."
Matt O'Sullivan: "So it seems that there is going to be higher production in many areas in the time ahead. Is that going to translate to more money in farmers' pockets?"
James Martin: "Not necessarily. Overall we're seeing export earnings at a record $134b, that's including minerals and energy. Now in the farm sector alone, those export earnings are tipped at $29.6b in 06-07, so that's up 6 per cent on last year. But the warning is commodity prices are going to decline across many areas, so while we have increased production pushing up export earnings from wheat, rice, barley, sugar, wine, lamb, live exports and dairy, we also have prices for many items falling. Overall, ABARE says commodity prices in the ag sector will fall by about 1.7 per cent, following a rise in 05-06 of about 1.4 per cent. So the bottom line I suppose, the net value of farm production, will actually fall to around $6b in 06-07. That's down 6 per cent."
Matt O'Sullivan: "What about the economic picture being painted by ABARE's chief, Brian Fisher?"
James Martin: "Economic growth should continue at about 4 per cent, which it has been doing over the last 12 months or so. There has been talk of that "super-commodities cycle" which is helping growth in the minerals and energy sector actually cascading into agriculture. The message from Dr Fisher though is that won't happen:"
"There have been people talking about the notion that we've got a super commodities cycle that a whole lot of the action that we've seen in minerals and energy will then cascade into agriculture. I think frankly that's a bit simplistic. A lot of the story in the case of agriculture is on the supply side. We are as I said before seeing a good strong demand, but in the case of agriculture, it's both a demand and supply story".
"Brian Fisher also says that farm costs, things like fertiliser and fuel, will actually increase by about one per cent. Now on oil, the benchmark for oil prices, that's West Texas Intermediate Crude, that'll stay high in the near term, but over the medium term, down from the current 65 dollars a barrel down below $40 a barrel by 2010. On the dollar, a moderate depreciation, around US73c for 06-07, continuing down though by 2010-11. That's a long way ahead, but Brian Fisher's saying perhaps around US65c for the Australian dollar."
Alan Oster (National Australia Bank): "We think the Aussie dollar is probably going to get down to the levels that ABARE's talking about, except that we think it's going to come down a lot quicker. So we expect something like 68c by this time next year."
Matt O'Sullivan: "And that's going to have a big impact on exports?"
James Martin: "It clearly helps in some senses, in the sense that it means you're more competitive, but if you're on the import side, the oil price goes down in US dollars, but it really doesn't go down at all."
Matt O'Sullivan: "Now I don't think you've got very good news about rural commodity prices?"
James Martin: "Again part of this is that we have a faster fall in the currency, is that in our view, when we look at US dollar agricultural prices, we're down around ten per cent. Now part of that is beef, which has come off really high levels, and we think sugar eventually will start to slow down as well. So we're expecting prices to come back, and the volumes broadly to offset that, so you get those different effects coming through.
Matt O'Sullivan: "So that might be a faster impact than what ABARE's predicting?"
James Martin: "Yes."
Matt O'Sullivan: "You've also been talking about continuing concerns about the labour shortage, particularly skilled labour?"
James Martin: "Yes, when we run our business surveys we find it is very difficult, in fact, even in December this year, it's more difficult according to business to get suitable labour than any time, including the late 80s."
Matt O'Sullivan: "So the concern is always, will that show up in wages?"
James Martin: "At this stage, the good news is nothing's happened. That's why the Reserve Bank is still talking about if we're going to move rates it's more likely up than down. At the end of the day, our view on rates will be, they won't do anything, but the wages one is critical, and if they see any signs of wage pressures starting to move up, then they will pull the trigger."
Matt O'Sullivan: "Will the importation of labour be likely to hold off wage increases?"
James Martin: "To the extent that you can take some pressure off by increasing the level of immigration, that clearly does help. And in the rural sector we know about difficulties of getting people in to help with crops, so it helps there. But at the end of the day, I think yes, there's an element of that, but I think also the domestic part of the economy is really starting to slow a bit as well, so I think unemployment's going to go from 5.2, 5.3 up to about 5.7, 5.8, and that will help. So I think the fact is that within the economy as such, you're probably not going to have to do anything."
Matthew O'Sullivan: "Around Australia, you're listening to a special broadcast of National Rural News from the ABARE Outlook Conference in Canberra.
"Well, the Federal Agriculture Minister Peter McGauran told the conference this morning that the NFF and the government aren't in total agreement about imported workers being a solution to the labour shortage, but certainly agreed there is a problem.
"John Roach joins us now, he's the chief executive of vegetable grower group Ausveg, John is this a critical issue for the horticulture industry?"
John Roach: "I think not only critical to the horticulture industry, it's critical to rural Australia, and I'd probably go so far as to say that rural Australia's undergoing significant change in its labour content that it will require, particularly in the next five to 10 years."
Matthew O'Sullivan: "What about these guest worker schemes? Are they having an impact in your sector?"
John Roach: "If I look at other countries, yes it does. If I look at New Zealand, part of the horticulture industry in New Zealand does use what I call cheaper labour. What they're doing there is bringing it it in, upskilling it there, and sending it back to those countries as part of their aid projects, for example. We in Australia don't have that opportunity at the moment, but if I look at the farm unit in itself, as vegetable growers, much of the innovation happens on small to medium farm businesses. It's not the big end of town in vegetable production. So that area is where the innovation happens. You'd require less labour in that, but you'd need more specialised labour.
Matthew O'Sullivan: "Is there a need to protect smaller farmers in the future?"
John Roach: "It's more about going to informed choice. The vegetable industry in particular will segment itself into three areas. One is larger production, larger farms, working on lowering costs. The middle section is about innovation, smaller farm units being out there on the cutting edge. The last third of the industry produces about five per cent of production. I think providing informed choice for that sector, of what they actually do with their lives and their farms and their assets, I think it's really important for Australia on social content to be able to allow those people to make informed choice about whether they wish to grow, or not grow and depart."
Matthew O'Sullivan: "We've also heard a lot over the past few years about the significant of China to the global economy, and Australian agriculture. Reporter Sally Davison has been looking at the impact of China on the world economy. Sal, this week is critical in terms of China's future in the global market?"
Sally Davison: "That's right, the National People's Congress is releasing its five year plan, a blueprint for national policy makers. This will affect everything from urbanisation, migration into major cities, to unemployment. But Yiping Hup from Asia CitiGroup says the energy sector will be most affect by these changes. The Chinese Government has said it wants to increase energy efficiency by 20 per cent in the next 20 years, by focussing on environmentally friendly industries. So the international energy sector is eagerly awaiting the release of the Chinese Government's five-year plan."
Fresh roadkill sought for WA snake study
Roadkill is set to help scientists unlock the largely mysterious world of snakes in the far north of Western Australia.
Travellers are being asked to keep their eyes out for specimens that can be studied.
David Pearson from the Department of Conservation and Land Management says venomous and whip snakes from the Kimberley are of particular interest.
"The thing is they're only useful when they are really fresh," he said.
"For instance if a snake is hit during the night, you get it first thing in the morning or that very night, by the time the sun gets to them and birds of prey and other things like that, they are smelly and a bit putrid - no one wants to see them in their freezer and they certainly don't make good museum specimens!
"If they've been run over a couple of times by a road train, they're not very useful!"
Swan Hill ethanol distillery work to begin
Work will start next month on a $60 million ethanol distillery at Swan Hill, in Victoria's north-west.
Australian Ethanol has raised 12.5 million for the project, which should be on line by the end of the year.
Chief executive Peter Anderton expects the facility to process 300,000 tonnes of barley, corn, wheat and sorghum a year.
Cattle producers lean towards smaller exports
Cattle producers in the Northern Territory are leading a push towards smaller live export vessels, despite a growing number of large ships entering the trade.
Italian firm, Siba Ships, has enlarged its fleet with three new vessels, due to enter the trade by the end of next year.
Steve Ellison from the Northern Territory Livestock Exporters Association says he has been surprised to see a determined swing away from large ships, with their lower freight rates.
"We are getting a bit of a backlash from producers who would prefer to see (their cattle) go on the smaller ships," he said.
"I think that a lot of the producers realise that they think those big ships aren't quite all beer and skittles.
"In fact, I bought some cattle a few weeks ago and one of the provisos was that I had to give a guarantee that they wouldn't go on a big ship.
Bird flu diagnosis training stepped up
The CSIRO is training Department of Agriculture staff in every state and territory to improve the nation's ability to diagnose a bird flu outbreak.
An avian virologist at the agency's laboratory in Victoria, Paul Selleck, says because many Asian poultry flocks are vaccinated, symptoms are masked, making the virus difficult to detect.
In Australia though, the disease should be easier to detect, because birds aren't vaccinated.
"In chickens we see swollen heads, excessive expulsion of liquid through the mouth," he said.
"They also become depressed, and you start to see haemorrhages on the unfeathered parts of the skin such as the feet.
Promising findings in fight against pests
Australian vineyards could one day be free of pesticides.
Research in South Australia has found predatory insects including wasps could instead be used to eradicate pests like the brown apple moth.
University of Adelaide PhD student Cate Paull has spent four years studying pests and insects in the Coonawarra, and says the results are promising.
Vic growers to let grapes rot
For the first time, grapes will be left to rot this harvest in one of Victoria's premium grape growing areas.
Poor prices and a lack of contracts are being blamed for the plight of growers in the King Valley, in the state's north-east.
Producing 30 per cent of the state's top, higher priced varieties, Wendy Batey from King Valley Vignerons, says growers are too scared to talk publicly.
"Well growers are really reluctant to speak out because they're in such an incredibly vulnerable position financially," she said.
"They've been selling, many of them have been selling grapes for four years below cost and they're basically quite frightened of jeopardising their fruit sales this year.
Controversial Qld water charges suspended
The Queensland Government has suspended controversial new water charges, which irrigators had been refusing to pay.
Premier Peter Beattie will defer the introduction of the $4 a megalitre charge, and $100 annual bore licence fee, until a review is conducted.
The funds were to be used to manage the state's water resources, but Paul Schembri from Canegrowers says irrigators were angry at a lack of transparency.
"In the short run we were very outraged by the introduction of this new tax, make no mistake," he said.
"It was a brand new tax.
""I guess the issue is, how transparent is the process? how independent is it?
Ministers urged to reject trucking fees hike
Farmers are calling on state and federal transport ministers to reject a proposal to increase trucking charges, ahead of a vote on the new fees tomorrow.
The National Transport Commission wants registration costs for B-doubles and road trains to rise by 37 per cent, and fuel taxes for heavy trucks to climb by 10 per cent.
The Federal Government, along with the ACT, South Australia and Tasmania have already said they will vote against the charges.
Ben Fargher from the National Farmers Federation, says the increases go beyond cost recovery for the trucking sector, and farmers will end up wearing them.
"We need the most efficient freight transport task, the most efficient mode in this country and we need to look at the policy between road and rail," he said.
"Indeed the Productivity Commission has just been tasked with looking at that.
Oil-for-food inquiry terms widened
The Federal Government has widened the oil-for-food inquiry, to include an internal AWB investigation into the allegations that kickbacks were paid to Saddam Hussein.
Cyclone Larry devastates FNQ farms
The most powerful cyclone to cross the north Queensland coast in 20 years is continuing to cause havoc as it moves west.
The core of the category 5 Cyclone Larry crossed the coast near Innisfail, around 7:00am AEST, with wind speeds of 290 kilometres an hour.
Banana grower Naomi King says their property has taken a heavy battering.
"We've lost most of our trees, we've lost a fair bit of the car shed, we've lost another shed just over from our house and it looks like the iron on the lime shed just over the back of the house is lifting up too," she said.
Farmers shouldering vegetation cost, says McGauran
The Federal Agriculture Minister has told a national conference that farmers are bearing too much of the cost of conserving native vegetation.
The Vegetation Futures Conference at Albury in southern New South Wales is looking at how to balance conservation with production on farmland.
More than 400 scientists, government representatives and land managers are attending the four-day conference.
Federal Agriculture Minister Peter McGauran threw the cat amongst the pigeons in his opening address, saying that some state legislation is too focused on protection, sacrificing farm production.
He has announced funding of $2 million over the next two years for pilot projects to develop more flexible approaches to managing native vegetation.
The project will look at things like incentive payments and offsets.
He has also launched a comprehensive database containing information about Australia's native vegetation.
Meanwhile Mr McGauran has rejected suggestions the Government could buy water from irrigators to improve the health of the Murray River.
Parliamentary secretary to the Prime Minister, Malcolm Turnbull, has floated the idea to meet the targets of the Living Murray program, because not enough water savings have been found.
But Mr McGauran says it is too early to talk about entering the water market.
Japan's mad cow case worries cattle industry
The Cattle Council is worried about a consumer backlash against beef in Japan, after the latest outbreak of mad cow disease.
Japan has confirmed its first case of the disease in cattle specifically raised to provide meat.
All 22 previously confirmed cases of the disease were in dairy cattle.
Council President Bill Bray says Japan is our biggest customer for beef exports, and the Japanese consumer is very conscious of food safety.
"It is a concern, it's a wagyu cow that's some 14 years old and it is the 23rd case that's been identified in Japan," he said.
Record-busting market growth expected to continue
Analysts are predicting the Australian sharemarket will continue its record growth, after it broke the 5,000 benchmark yesterday, for the first time since listing in 1987.
Hartley's director John Featherby, says the strength of the Australian mining and energy sector bodes well for the year's trading.
"Well if you measure it by the All Ordinaries index, it's going to be pushing close to 5,500 by the end of the calendar year, in my opinion," he said.
NZ Govt accused of ignoring farmers
Wool prices are down, it is hard for dairy farmers to break even, and the government is interfering - it might sound familiar, but those concerns are coming out of New Zealand, not Australia.
New Zealand's Reserve Bank has cut its national growth forecast, citing a seven-year low in farm incomes.
And while farm businesses across the ditch contribute to 15 per cent of the economy, farmers say they are being ignored by government.
Don Nicolson, from the Federated Farmers of New Zealand, says the Government is over taxing and interfering, and it is hard to make a buck.
"You would wonder whether they take notice of us," he said.
"We have been continually telling them the same thing for many years: we don't need government assistance in our lives.
"We just need the framework to operate our business to be as free and as friendly as we can have it.
Wheat survey aims to find profitable secrets
A survey of wheat growers in Victoria's Wimmera is under way, to try to determine what makes a profitable farmer.
Despite a good harvest this year, growers were hit hard when grain prices plummeted by up to $30 a tonne.
Researchers are hoping to find out what factors enabled some farmers to make a profit, while others had to sell their crops below the cost of production.
John Williams, from the University of Melbourne, says the results will be compared with similar data from the United States.
"One of the things that I've found over the last ten years is that growers don't have a good grasp of their cost of production," he said.
Japanese BSE case compounds US beef fears
The US beef industry fears even longer odds of recovering its Japanese market, after that country's first case of mad cow disease in beef cattle.
US beef producers have always expected to have an uphill battle once Japan resumed imports from the US.
But Japan's 23rd confirmed BSE case, and the first in beef cattle, may cause even longer odds in that market.
American Meat Institute spokesman John Reddington points to recent Japanese press reports.
"It's going to be pretty difficult battle for the United States to change consumers' minds about the safety of our product.
"Our major competitor, when we get back into that market, is going to be Australia."
Higher sheep prices forecast amid steep demand
The live export industry says it will be forced to offer higher premiums to sheep producers to meet demand.
While producers have moved away from breeding heavy boat sheep towards the prime lamb market, the live trade expects increased demand for mutton in Europe.
Gary Tapscott, from the South Australian Livestock Exporters Association, says with more shipments out of the eastern states expected over the next few months, the trade will be demanding merino wethers coming into winter.
Veg growers urge greater marketing mix
Vegetable producers want to join forces with other rural industries to try to increase sales.
Peak grower group Ausveg is looking at cross-commodity marketing, as one of the ideas included in a new industry strategy.
Chief executive, John Roach, says with increasing global pressures on primary producers, the time may be right for more co-operation
"There is real leverage to be had with vegetables in particular co-marketing product with other rural commodities, such as seafood, such as meat, start making whole of meal solutions, particularly on an export focus," he said.
Calls to withdraw ministers' control over truck rego
The rail industry wants decisions on truck registration costs to be taken away from transport ministers, after they rejected a plan to increase charges on large vehicles.
The trucking industry says it could not afford the proposed 37 per cent increase in rego costs for B-doubles and road trains, and a 10 per cent rise in fuel taxes for heavy trucks.
But the rail industry says only 2 per cent of trucking operators will benefit.
Brian Nye from the Australasian Railway Association says there still needs to be fundamental reform of road and rail pricing.
"I'm not arguing that the trucking industry doesn't pay," he said.
"What we're saying is that smaller vehicles are cross-subsidising heavier vehicles and it's the heavier vehicles that are doing the damage.
"So, yes the trucking industry can say 'Yes we are paying a fair amount but it's the way the formula's worked out', and this was trying to redress some of that.
But the Victorian Transport Minister says the increases would have jeopardised rural businesses, already battling high transport costs.
Peter Batchelor says there needs to be a uniform approach to truck rego fees, and uncertainty over Federal Government funding for freight infrastructure also needs to be resolved.
Doctors warned of racial abuse in wake of Patel scandal
Overseas trained doctors are being warned against practising in rural Australia, because they could face racist abuse from both patients and colleagues.
The Australian Doctors Trained Overseas Group says fallout has not abated, after the "Dr Death" case in Queensland.
Martin Stanley, from the Rural and Remote Workforce Agencies Group, says a positive campaign about the work of overseas trained doctors is urgently needed.
"I think there is a lack of understanding," he said.
"I think there's an assumption that some communities make, that there are doctors all over the place and it's just a matter of picking one to come to their community.
"I think we all, collectively, need to keep telling some of the positive stories about what overseas trained doctors are doing in local communities."
Dr Adel Asaid trained in Egypt, and has practised as a GP in the Victorian town of Elmore for the past eight years.
But he says while getting to know the locals took some time, stories of racism in country areas are exaggerated.
"It wasn't an easy task for me, or even for the town, but the town actually was great, like the town accepted me and welcomed me so that made my life much easier," he said.
Growers count cost of cyclone Larry
Far north Queensland's horticulture industry has been almost wiped out by cyclone Larry.
The Category 5 cyclone has caused hundreds of millions of dollars damage to sugar and banana crops, along with the rest of the farming sector.
Ninety per cent of Australia's bananas come out of the Innisfail and Tully regions; at this stage most of the industry looks to have been lost.
Jan Davis from horticulture's representative group Growcom says the damage looks worse than anticipated.
"Avocados are in the middle of harvest and probably 70 to 80 per cent of that crop's gone. We've got significant damage reports coming in from tropical fruit. Very, very serious damage right across the sector," she said.
Sugar cane along the coast from Tully to Cairns also copped the blow of the cyclone, with most of the Innisfail crop which faced 290 kilometre winds destroyed.
The cyclone will have huge ramifications for jobs and local businesses in the affected districts, which heavily rely on the two crops that used to dominate the landscape: sugar and bananas.
There have been calls for the State Government to help out with compensation.
It says it is still assessing the damages.
Those heavy losses in the far north are expected to drive the price of bananas to above $40 a carton, or between $5 and $6 a kilo.
But Tony Heidrich from the Australian Banana Growers Council is concerned about how growers in far north Queensland will rebuild.
"If growers aren't making any money, they can't afford to keep staff above those which are essential to getting the farm back into production," he said.
"And the question is as far as key people go, key employees, if you do have to let some of those go, whether they come back again."
Remote cattle stations in the Gulf of Carpentaria are apprehensive over what Cyclone Larry may bring to the already water-logged region.
Stuart Zlotkowski of Wollogorang Station, says he is relieved to have turned off cattle months in advance.
In the metric scale, the station has had around 768 millimetres of rain this month, which is by far the wettest March on record and the second wettest of any month ever in about 28 years of recorded weather statistics.
Growers vote to keep wheat export's single desk
Grain growers in Victoria have formally shown their support for keeping the single desk for wheat exports.
Almost 330 growers voted to retain the single desk, at the annual Victorian Farmers Federation Grains Conference.
Grains group president Ian Hastings says it is a strong result.
"We've got a very very clear message that people want single desk and at this point in time they are not including how or who the manager will be," Mr Hastings said.
"They want single desk marketing, which is what we've been saying all along, and at the end of the Cole inquiry is the time when we will then look at what the structure will be to ensure that we have a single-desk marketing system."
Meanwhile a better outlook for crop prospects in the US has hit domestic grain prices.
Chicago wheat futures have dropped more than 3 per cent in the past 10 days, with rain and snow expected to help US crops.
Leonie O'Driscoll from Agfarm marketing says the fall is being felt.
"Already we have seen domestic end users drop their buying values by about $10 a tonne," she said.
Analysts urge consortium to move quickly on Iraq wheat deal
Grains industry analysts say Australia could lose a deal to supply hundreds of tonnes of wheat to Iraq, unless it moves quickly to seal the contract.
Media reports from Baghdad say the Iraqi Grains Board is refusing to agree to the deal unless it controls shipping arrangements, accusing Australia of over-inflating transport costs.
Analyst Lloyd George says dealing with Iraq is not a simple process.
"You know those terms and conditions can vary from customer to customer significantly and hence the risks vary with that as well," Mr George said.
"Even in the past day or so it's been talked about in the United States that Iraq is essentially looking around for another 300,000 tonnes of wheat out of the United States, which suggests they may be starting to look in other directions if business hasn't been concluded."
Anderson urges states to stand by water initiative
Former deputy prime minister John Anderson says the National Water Initiative is in danger of stalling and the states need to recommit to it.
Mr Anderson says the deal, to secure water for the environment and property rights for farmers, is months behind schedule and he is worried it is heading off target.
He has also reject suggestions that it is time for governments to buy water from farmers for the environment.
"Where they do want to enter the market in my view, they should do it as was agreed in the case of the Living Murray, as a last resort only," Mr Anderson said.
"I'm glad you asked the question because I think there's a few governments now and few people around the place thinking 'oh the easy way out of this, it's all too hard to find the savings' and I don't know what's wrong with modern governments, but they're all so reluctant to get their hands involved with infrastructure."
Malcolm Turnbull, parliamentary secretary to the Prime Minister, says only half the necessary water savings have been found for Murray River environmental flows.
Mr Turnbull says there may be no other option than buying water and he will put the idea to a Murray Darling Ministerial Council meeting next month.
He is rejecting suggestions that would lead to a big increase in water prices.
"There's this kind of implicit assumption that if governments are going to participate in water markets they will do so recklessly, overpaying," Mr Turnbull said.
UN outlines farming's threat to water
A new United Nations report says farming is the biggest threat to the world's freshwater supply.
The report has been unveiled at a World Water Forum in Mexico, and recommends an end to subsidies on pesticides and fertilisers, and realistic water pricing.
But the forum has been told Australian farmers are world leaders, for using market forces to stop water wastage and pollution.
Mike Young from CSIRO Land and Water is at the forum and says Australia is recognised as a pioneer in tackling dwindling river flows, increasing contamination and pollution and damage to fisheries.
"I think we are very much at world's best practice in terms of innovations," Mr Young said.
"All of the discussions I have been involved in, people have been amazed at the approaches that Australia is taking in introducing tradeable water rights, actually moving very quickly to full cost recovery and often being there.
N Qld cyclone damage hits prawns, avocado producers
Flooding is now causing havoc in Queensland between Cairns and Townsville, in the aftermath of cyclone Larry.
Innisfail recorded 289 millimetres of rain in the 24 hours to 9am AEST, with most coastal areas receiving more than 100 millimetres.
The floods have devastated the region's prawn farming industry, which supplies 40 per cent of the Australian market.
Scott Walter from the Australian Prawn Farmers Association says there are huge losses due to flood damage and loss of power.
"Basically we have power to run our freezers where the stock is kept," Mr Walter said.
"We've got power that run aerators in our ponds, which keep the oxygen levels up to a point where the prawns are capable of basically growing and surviving, so if we lose the ability to oxygenate our ponds we'll lose our crops, and if the freezers go down for too long and the seals are broken, the temperatures will drop and we'll have to destroy the stock because it'll no longer be safe for food."
Cyclone Larry has also devastated avocado plantations on the Atherton Tablelands in far north Queensland, with losses estimated at up to $15 million.
Just last week the region supplied 80 per cent of the Australian crop.
New South Wales grower Gordon Birch says New Zealand imports are likely to fill the shortfall, until other growing regions begin picking fruit.
McCain cuts hit Vic potato farmers
Potato growers in Victoria are facing a 10 per cent supply cut and lower prices from food processor McCain this year.
Negotiations on this year's contracts started in the middle of last year and the federal industry and produce ombudsman has been called in to try to resolve the dispute.
President David Myers says it is unfair, when fuel costs have gone up for producers.
"We want a finalisation of the contracts," he said.
Telstra admits 3G upgrade will not fix all black spots
Telstra has begun upgrading 5,000 mobile phone towers as it prepares to roll out a new 3G phone network early next year.
But there are growing concerns about whether mobile phone black spots will ever get network coverage, even with the 3G service.
The technology will allow mobile phone users to access fax, email and high-speed Internet services.
Telstra's Michael Patterson says mobile coverage will improve with 3G, but concedes there will be black sports, particularly in more isolated areas.
"Absolutely but at the same time all the major communities above 350 people have mobile coverage at the moment, and we're gonna be fixing some of the black spots on the highways," he said.
"We're also working with both state and federal governments to see what sort of funding is available to roll out additional base stations."
Tas push to maintain freight subsidy
Tasmanian farmers say they will fight to keep the state's $90 million freight equalisation scheme.
The Federal Government is reviewing the scheme, which subsidises the cost of freight and passengers across Bass Strait.
While Tasmania wants the scheme strengthened, parliamentary secretary for finance Richard Colebeck will only say the Government remains committed to freight equalisation of some kind,
"It's recognised pretty generally that the method of freighting and even operations on Bass Strait have changed significantly over the last 30 years," Mr Colebeck said.
Predicted egg shortage to increase prices
There are predictions of a looming national shortage of eggs, despite an oversupply and all-time low prices over the past six months.
Those two factors, coupled with a hot summer, have led to birds being culled in South Australia, Victoria and New South Wales.
Steven Todd from Southern Eggs says fewer birds means fewer eggs with prices set to rise by 20 per cent.
He says the bigger players are the ones who will benefit.
BOM to consider marine weather service's viability
The Bureau of Meteorology is review its HF radio marine weather service.
The bureau assumed responsibility for the free 24-hour service four years ago, after Telstra stopped funding it.
It services vessel operators who are a long way off shore without access to satellite technology.
The bureau's Vernon Carr says they to find out how relevant the $3 million service is.
"There are a number of alternatives available that we're looking at," Mr Carr said.
"Again technology is advancing as well and that's where we're looking as well is to see how far advanced, particularly for mariners in the open ocean, you know how technology is helping them receive this weather information.
Major supermarkets excluded from new code of conduct
The fruit and vegetable industry is angry at a decision to exclude major supermarkets from a new mandatory code of conduct.
The code was promised by the Federal Government in 2004 to try to give growers more clout in negotiating contracts with supermarkets.
But it has now decided not to include retailers Coles and Woolworths.
Andrew Young from the wholesaler-backed, Central Markets Association, believes supermarkets could end up benefiting at the expense of both growers and wholesalers.
"Over 50 per cent of the product will be outside the scope of the code so there's really a big question mark over whether it's meaningful at all, particularly given that two prior government reviews into the code issue have both recommended that if there is to be a code it should apply to the whole retail/grocery industry," he said.
Food prices to soar in cyclone's wake
Food prices could be set to soar in areas of far north Queensland devastated by cyclone Larry.
Trucks which transport fruit and vegetables from the region, usually backload with fresh produce and non-perishables from the state's south.
But with crops destroyed, the cost of carting food into the north is expected to skyrocket.
Les Blennerhassett from Blenners Transport says without assistance, freight costs could increase by 90 per cent.
"If we can't get freight subsidies from the Government our freight rates into north Queensland will double from next week, everything on the shelf's going to go up," he said.
"Every food item that's on the shelf there now from fruit and veg to ice cream back to your Wheatbix, every item that's on there all travels by road and rail.
"Rail do have a percentage of the freight and might be able to travel a little bit cheaper going back empty but they have costs also."
Meanwhile sugar millers in north Queensland are assessing damage caused by the cyclone.
Bundaberg Sugar's Mourilyan, Babinda, South Johnstone and Tableland mills all suffered significant damage.
Govt won't allow banana imports
The Federal Government says it will not relax quarantine import restrictions for bananas following the destruction of Queensland's crop by cyclone Larry.
Agriculture Minister Peter McGauran says the current supply of local bananas is expected to run out within the next few days.
But he says reducing biosecurity checks to import bananas to meet the shortfall would hurt Queensland growers.
"We will not compromise the science to meet a short term shortage on the domestic market," he said.
"Moreover this would be the worst thing possible for the devastated banana industry that bananas came in from overseas on a faulty or hastily decided science."
Banana growers at Carnarvon, in Western Australia, say they will not bow to pressure to send fruit to the eastern states to fill the gap.
WA representative on the Australian Banana Growers Council Tom Day says they will continue to supply local markets.
"Whilst we sympathise with the people in the east there are are some bananas in New South Wales and there are still a few in Queensland," he said.
"We've got our markets in Western Australia, that's always traditionally been our market and we've got some very faithful buyers there and we want to stick with those people and help the east if we possibly can.
A new report raises doubts over the ability of the National Water Initiative (NWI) to solve the water crisis and deliver infrastructure reform.
But it says reforming rural and urban water infrastructure could add between $6 billion and $8 billion a year to the economy.
One year since conducting its first review of infrastructure policy, the Business Council of Australia (BCA) says the National Water Initiative is lacking urgency and clear direction.
The BCA found of all areas reviewed like energy and transport, only water policy did not see significant progress.
Backing comments from former deputy prime minister John Anderson, it says the NWI is missing targets, like the creation of a national water trading market and finding more barriers than solutions.
The BCA's Maria Tarrant says the organisation has given the Council of Australian Governments until the end of the year to reinvigorate the National Water Initiative and further develop water trading.
Mission Australia highlights city-country divide
Divisions between the wealth and health of city and country dwellers are continuing to grow, according to a new report by welfare group Mission Australia.
The report says rural Australians are less likely to finish school, more likely to die from alcohol abuse or be affected by domestic violence, or suffer mental illness.
Anne Hampshire from Mission Australia says the concerns will be taken to Canberra next week along with a push for new programs.
"The report actually has three components, identify the problems which we have, identify some of the great initiatives which are happening on the ground so we make sure we can develop those further, but also we've suggested a whole suite of recommendations," she said.
Probe into low Vic commodity prices
The Federal Government is setting up a taskforce to investigate the impact of low commodity prices in western and north-western Victoria.
Farmers say low grain, wool, grape and citrus prices are crippling the economies of rural communities.
Agriculture Minister Peter McGauran says the Government will not subsidise farmers, but will try to reduce cost burdens.
Hindmarsh mayor Darryl Argall says the taskforce will give rural communities more direct contact with the Federal Goverment.
Dairy companies compete for suppliers
Competition for milk suppliers is intensifying between dairy companies in Victoria.
After years of dismal prices, milk company Fonterra is now offering a sweetener of a 50 cent per kilogram premium to new suppliers.
Doug Chant from the Victorian Farmers Federation is happy with the higher prices, but he is worried the incentives will not give farmers long-term financial security.
Woodside signs big gas deal with Japan
Oil and gas producer Woodside has signed its biggest agreement for the supply of liquefied natural gas.
The company will supply up to 2 million tonnes of LNG a year to Japan from 2011.
Biodiesel plant opens
One of Australia's biggest biodiesel plant is being opened in Adelaide today.
The was opened this morning and will be capable of producing of 45 million litres of diesel each year.
Initially this plant will be producing diesel from animal fat but it is hoped it will soon be coming from oil seeds and the plant will be looking for some 100,000 tonnes of oilseed each year.
Bio-gas plant to put cow manure to good use
A feedlot and abattoir in southern New South Wales is planning to generate electricity from cow manure.
Rockdale Beef at Yanco is developing a bio-gas plant, to make better use of 120,000 tonnes of manure produced at the feedlot every year.
General Manager Paul Troja says the $12 million plant will be one of the first of its kind in the country.
"The manure is collected and put into a digestor where the methane is extracted, the methane is cleaned then put through a gas turbine which generates electricity and hot water," he said.
"The electricity is used in the plant and the hot water in terms of our normal requirements in an abattoir operation.
NT flower growers meet Games shortfall after cyclone
Cut-flower growers in the Northern Territory have had to come to the rescue of Commonwealth Games organisers, in the wake of Cyclone Larry.
The red and orange tropical heliconias are a centrepiece of the bouquets presented to medal winners, and had been provided from both north Queensland and the Territory.
Darwin growers like Jan Hintze have had to come up with more than 10,000 blooms after the Games order doubled overnight.
"I had to find another 1,000 flowers, from Monday lunchtime to Tuesday lunchtime, which is actually quite difficult," she said.
"But however, we all got together and sure enough I did manage to get them all together and they went off on Tuesday night and they will be the bouquets today and tomorrow.
Iraq wheat sale still on track: consortium
The grain consortium Wheat Australia is hosing down speculation its deal to sell wheat to Iraq is in trouble.
Spokesman Rhys Ainsworth says the consortium this week made its tender submission to the Iraqi Grains Board, and has already started talks with the board.
While he would not be drawn on the content of discussions, Mr Ainsworth played down the time the deal is taking.
"Well it's very hard to talk about what's normal and what's abnormal," he said.
"I suppose, what I can confirm is that the initial offer has been made and discussions are continuing.
"So that's the certainly the context that Wheat Australia is proceeding with at the moment.
Moody's review pushes up AWB shares
Shares in wheat exporter AWB have surged more than 20 cents after a positive review from ratings agency Moody's.
The share price has hovered at all-time lows in recent weeks but Moody's assessment of subsidiary company AWB Harvest Finance has improved confidence in AWB's ability to handle risk.
Senior financial analyst at CommSec Grant Saligari says while it is an important review, it is expected the share price will continue to fluctuate.
"I think this is more a reaffirmation of short-term prospects at this stage," he said.
"I think you're going to see quite a bit of volatility until the outcome of the Cole inquiry is known and the Government's response to that is known."
Shares opened trading this morning at $3.97.
Meanwhile 220 grain growers have voiced their support for the single desk for wheat exports at a meeting in WA's mid-west.
Just six farmers at the gathering in Morowa wanted the single desk deregulated.
Many believe their support is not being recognised in the eastern states but David Hayes of Badgingarra says WA growers want the single desk left alone.
"I think there's a clear demonstration that Western Australian farmers are 100 per cent behind single desk," he said.
They have done the wrong thing and I think that there's going to have to be some heads roll in the AWB but at the end of the day, the rank and file of the people that work for the AWB are great people and they've got our best interests at heart."
SA barley growers vote to keep single desk marketing system
Grain growers in South Australia have voted to keep the single desk marketing system for barley.
A total of 5,900 barley growers were sent out the South Australian Farmers Federation's barley ballot, asking growers whether they wanted to retain the single desk or complete deregulation.
Only 2,000 responded.
This comes after months of debate over poor barley prices which has led to some growers demanding competition for the state's barley market.
Fourteen hundred growers voted yes to the single desk, while 300 voted to remove it but one change has resulted, with 1000 growers wanting an independent single desk, with a similar structure to the Wheat Export Authority.
Falling Aust dollar good news for farmers
In some good news for farmers, the falling Australian dollar is adding hundreds of millions of dollars to export returns.
Chief economist at Deutsche Bank Tony Meer says the dollar is at its lowest level in 18 months, trading at 71.5 US cents.
He says the drop is boosting returns in the resources sector and there are also benefits for farm commodities.
"Definitely anyone who gets to export, I am thinking resource companies but also the farm sector and the good news for the farm sector is that those broad acre croppers, those people who produce things like wheat and barley, at least they have got something to sell on those global markets this time around because of the breaking of the drought," he said.
Wool market falls off
A 3 per cent fall in the US exchange this week should have led to higher wool prices in Australia.
Instead the market has fallen off, due to poor, older wool being reoffered at sales this week.
The biggest fall was in Fremantle, where there was a 15 cent drop-off.
The eastern market indicator fell seven cents to 744 cents a kilo clean.
US lawmakers urged to oppose food aid commodities plan
US farm groups are angry at a plan by the Bush administration to spend almost a quarter of its main food aid program on Australian and European commodities.
Wheat, soy, rice and other minor crops are involved.
The groups have written to US lawmakers urging them to oppose the Bush administration's plan to buy food aid commodities from Australia and others, closer to needy areas like South-East Asia.
US Wheat Associates' Dawn Forsythe says the proposal amounts to as much as $305 million.
"Twenty-five per cent of the budget would be purchased elsewhere. Now, we have a problem with that ... with US taxpayer money going to buy competitors' products," she said.
NZ growers question Australian fire blight detection skills
New Zealand apple growers have questioned the ability of Australian quarantine workers to inspect their orchards for the plant disease fire blight.
Inspections would be carried out as part of new regulations to allow New Zealand apple imports into Australia.
Submissions on the draft regulations close next week.
But Pipfruit New Zealand's Peter Beaven says Australia does not have the skills to detect fire blight.
"The draft contemplates AQIS inspectors coming out to New Zealand and doing work that I don't think they are qualified to do, quite frankly, because you know they are going to be looking around orchards, looking for canker and so forth and they've got no experience in doing that," he said.
Live export campaign to improve welfare
Meat and Livestock Australia will fund a million dollar campaign to raise awareness of its efforts to improve animal welfare, particularly in the live export trade.
The campaign will begin in WA in a few weeks before being launched nationally, targetting consumers, metropolitan media and schools.
Tim D'arcy from the Pastoralists and Graziers Association says he hopes it will make the live export industry more transparent as well.
"You know, there are people out there who still don't do the right thing, and we're aware of that," he said.
"And we're trying to, through this process, trying to encourage everybody, to ensure their animal welfare management is of the highest order.
Dairy farmers needed for Tasmania
Tasmania's dairy industry has launched a recruitment drive to attract more farmers.
The campaign has the theme "a great place to live, a great place to dairy", and promotes not only the sound economics of dairy farming, but the lifestyle qualities of living in Tasmania.
Dairy consultant Basil Doonan says while there has been a big influx of New Zealand farmers in the past decade, this campaign targets Europeans.
"We don't mind where the investment comes from, we just need foreign investment, we need an injection of capital at the farm level in the Tasmanian industry," he said.
Dairy industry rallies behind FNQ producers
The Queensland Dairyfarmers Organisation (QDO) has set up its own cyclone relief fund to provide help to farmers affected by cyclone Larry.
The cyclone damaged infrastructure, and power is still out in many dairies five days after it hit.
Without power farmers cannot milk and cows face the possibility of mastitis and going dry.
There has been a major effort to fly in mobile milking machines, source generators and even fly in a tanker so milk that can't be chilled can be picked up every day, otherwise it has to be poured down the drain.
QDO president Wes Judd says farmers across the country have offered their help and any donations will be most welcome.
Cave on standby as waters rise in Kimberley
Residents of stations and communities in the east Kimberley are on stand-by to evacuate as rain continues to bucket down in WA's far north.
Kununurra has had double its average March rainfall, with 200 millimetres over the past two days.
Yesterday a helicopter arrived at nearby Ellenbrae Station to collect the Stanley family, although farmer Norm Stanley decided to stay on.
"I can't see anyone coming to too much grief," he said.
"We've got a big hill about a kilometre over from the homestead and I'll shoot across there if it gets too bad.
Top End crabbers facing tough times
Commercial crabbers in the Northern Territory say the industry will be forced to downsize under major new restrictions.
Thirty per cent fewer crabs will be able to be caught under amendments to the Territory mudcrab plan and there will be tougher penalties for breaching catch limits.
Chris Calogerous of Sea King Seafoods is disappointed there is no provision to buy out any of the 49 commercial licence holders.
"Most of us feel like we've been kicked in the guts. Our advice has been ignored and I can see how this is effectively going to put this industry under extreme pressure," he said.
"We support all the rules relating to tougher penalties but this size limit increase of 10 mm basically means that we're going to not be able to harvest crabs in the Gulf because a large proportion of the crabs there are always a smaller crab.
Farmers sign up to save rare cocky
Farmers are signing up in droves for a project which offers them cash for preserving the habitat of the Commonwealth Games mascot.
The Federal Government will spend more than $1 million to try to save the last 1,000 red tailed black cockatoos, found in Victoria and South Australia.
Cockies have been seen on the farm of Richard Hobbs at Clear Lake, who says protecting trees serves a dual purpose.
"We do value the trees, we think that we can crop and have trees," he said.
"We think it increases production - protection for the livestock and probably for crops too.
Rural jobs last resort for migrants: agent
There are claims today the growing social divide between city and country is making it hard to recommend rural areas to migrants.
Attracting migrants to regional areas has been touted as a solution to the skills shortage but migration agent Michael Walker says jobs in rural areas are often the last resort for his clients.
Mr Walker from Absolute Immigration Services says there is often a lack of opportunities, infrastructure and support in country areas.
"The infrastructure in many regional areas is not sufficient enough to sustain an influx of migration," he said.
"We already know that many young people who have grown up in regional areas are coming into the cities seeking employment.
Fears compo payments may restrict farmers' borrowing
Farmers who receive government-funded compensation payments are being warned they could have less leverage to borrow money from banks.
The issue has been highlighted in New South Wales, where compensation paid to ground water irrigators will be taxed as income.
Bruce Brown from Namoi Catchment Management says under the tax ruling, farmers who receive compensation for the loss of any property will see their asset base reduced.
"Banks would be seeing a loss of their loan security ratios which would obviously impact on the amounts of money they are prepared to lend because they will do their credit risk ratings etc on that," he said.
Research focuses on merino meat breeding
The merino industry is taking a stand against competition from meat sheep breeds.
While there has been plenty of study into merino wool, less is known about the sheep itself.
A five year project has been researching fertility, worm resistance, muscle and fat depth in more than 10,000 stud sheep.
South Australian breeder Robin Schwartz says the industry's future lies in being able to compete by offering good wool and meat characteristics.
"While wool prices are up and down, and more down than up at the moment, everyone is keen to kick some goals with the meat breeding side of the operations," he said.
Emerging market may help grape growers
An emerging grape seed oil market could help deal with the nation's oversupply of wine grapes
The seeds come from a by-product of wine production and the oil is used for eating and cooking, as well as pharmaceuticals and cosmetics.
Rocco Rombola has established a grape seed oil extraction plant at Loxton in South Australia's Riverland and says while it is a relatively new product in Australia, it has been used in Europe for years.
AWB accused of reneging on wheat commitment
Grain traders are accusing AWB of reneging on a public commitment to relax the company's power of veto over wheat exports.
They say applications for hundreds of thousands of tonnes of wheat, including one from the consortium Wheat Australia, are held up at the Wheat Export Authority (WEA).
It is nearly a month since Trade Minister Mark Vaile told grain growers that AWB would relax its veto power to allow other companies to export to Iraq.
But applications to export more than half a million tonnes of wheat have been before the WEA for weeks, including a Wheat Australia bid to sell 350,000 tonnes to Iraq.
Under current legislation, AWB must give written authority to the WEA before any export applications can be processed.
"The authority must not give a bulk export consent without the prior approval in writing of AWB. I guess they're still waiting for that," Alick Osborne from the Grain Exporters Association said.
Agriculture Minister Peter McGauran is confident AWB will stand by its word.
"AWB has committed to the Government and to wheat growers to waive its veto power, they will honour that commitment," he said.
Regional workers first to feel impact of IR changes: unions
Unions say regional Australia will be the first to feel the effects of the Federal Government's new industrial relations laws.
The changes come into force today, meaning employers have more power when negotiating contracts with workers.
Dr Chris Briggs from the Workplace Research Centre at Sydney University believes regional workers will see major changes.
"These types of laws were trialled in Victoria in the mid-90s under the Kennett government and what it found is that ... things didn't change all that much in the middle of the capital cities but where they changed were in regional areas where you had three times as many low paid jobs, particularly in jobs like retail, construction and hospitality, so it is likely that regional areas will feel the effects of this," he said.
But farmers and other regional businesses say the changes will lead to more jobs in regional Australia and greater flexibility for workers and employers.
Only farms that are incorporated or in Victoria will be able to negotiate under the new laws but the National Farmers Federation (NFF) says it will be encouraging farmers to incorporate so they can access the changes.
The NFF's Denita Wawn says over time the new laws will lead to better relations between employers and employees.
Farmers expecting conditions to worsen
Confidence in rural Australia remains weak, with more farmers expecting conditions to worsen over the next 12 months.
The latest quarterly rural confidence survey from Rabobank has found only a quarter of primary producers expect the agricultural economy to improve.
Rabobank's Neil Dobbin says farmers are particularly cautious in the lead-up to the winter cropping system, with many farmers in the eastern states waiting for rain.
"Across Australia the confidence was weaker. It's mainly what they're thinking about in the future, what they see commodity prices and input costs," he said.
Beef producer set for wagyu cattle production
Australia's biggest beef producer is set to take over the world's largest breeder of wagyu cattle.
Wagyu beef is renowned for its marbling and is highly prized in the Japanese market.
The Australian Agricultural Company has bought a bull herd belonging to Ballarat-based Westholme Wagyu, regard as the world's best outside Japan.
Managing director Don Mackay says the company hopes to buy Westholme's cows and calves, embryos and semen later this year.
"You produce a higher quality beef, you produce beef products that are worth considerably more value," he said.
"Clearly you've got a higher cost of production and the animals that we feed in our feedlot today are generally on feed for about a year but those animals are worth a lot of money.
"As long as you get the right performance from the right genetics.
Tasmanian wine grapes in short supply
While the mainland deals with a massive oversupply of wine grapes, Tasmania does not have enough for this year's vintage,
The island state is short around 500 tonnes of grapes, mainly those used to make sparkling wines.
The shortage means growers are receiving a good price for premium fruit and winemaker Andrew Pirie says there are no plans to import more fruit.
"If you examine why Tasmania is now, let's say isolated and good position it's because we've stuck with a strong Tasmanian regional branding," he said.
"For 20 years now we've focused on 100 per cent Tasmanian content and that now sets us apart from the south-east Australian blend which is becoming the wine that's in oversupply, so regionality has been our saviour."
Meanwhile a new national task force will work to find niche global markets for Australian wine.
The 13 member "new directions" group will also try to build stronger ties between producers and retailers, exporters and governments.
It is part of a bid to reduce the wine surplus.
And in another development, one company is introducing tetra paks for wine, the same as those used for long-life milk and fruit juice.
Already used in Canada, a business in Victoria's Sunraysia district will become the first company in the southern hemisphere to install the technology.
Ken Henderson from Best Bottlers says the taste of the wine will not change.
"It's virtually unbreakable, it can go into places where glass is not normally allowed in such as sporting venues, beaches," he said.
Flooding hits northern WA town
A tropical low hovering over the east Kimberley has continued to dump huge falls of rain over the region.
Wyndham received 560 millimetres over the weekend, causing major flooding and forcing road closures.
Graeme Down from the Fire and Emergency Services Authority of Western Australia says flooding in the lower Ord River is reportedly the biggest ever seen.
"The local manager for SES here advised me that he pulled his pump up to one and a half metres above what he thought was the highest he had ever seen and his pump went under again," Mr Down said.
"So I think there's been a huge volume of water that the Water Corp was telling us, before the waters had really come down out of the diversion dam that they were letting 580 cubic metres per second."
Rain sets back fight against noxious weed
While pastoralists in Western Australia's Pilbara region are rapt with the wet start to the year, record rainfall has resulted in a growing problem with noxious weeds.
Mesquite is a weed with spiny thorns and covers 150,000 hectares of grazing land west of Karratha.
Linda Anderson from the Pilbara Mesquite Management Committee says the rain has put the fight against the weed back a number of years.
"It's now going to germinate a lot of the seed bank that we think that was there that we haven't seen germinate in probably the last six or seven years when we haven't had rain," she said.
Spiralling whitefly found in Darwin backyard
Efforts have begun to control a new pest species found in the Northern Territory.
Spiralling whitefly was previously restricted to Queensland but has now been discovered in a Darwin backyard.
The pest can reduce production in plants like the mango, papaya and guava but Stuart Smith from the Department of Primary Industries says it can be controlled using a natural parasite.
"This is actually an extremely effective parasite," he said.
"It is classical biocontrol in that the parasite really knocks the pest down by 80 to 90 or 95 per cent but there is just enough to survive to maintain the parasite as well as the pest populations.
"But almost always in very low populations and not enough to be damaging."
Farmers set to show off produce
Preparations are well under way for this year's Sydney Royal Easter Show.
And farmers on the state's far south cost are getting ready to show off their produce, including Noel Watson, from Bega.
He is picking giant pumpkins and says it takes more manpower than you might think.
"More than we got here. I'll be bringing the tractor down here directly to pick it up, I think that one up there is probably the biggest I have grown, it could be pulling 200 kilos," he said.
Chinese uranium deal could prompt new mining boom
Australia could be set for a new mining boom with China set to sign an agreement to explore for uranium.
China is also a step closer to buying more uranium from Australia, to feed its new breed of nuclear power plants.
Mining analyst Warren Edney, from ABN Amro, expects Chinese companies to seek joint ventures rather than stake their own claims.
"They will be able to contract sales to the Chinese nuclear power generators and potentially we may even see BHP's Olympic Dam selling to the Chinese," Mr Edney said.
"I don't think that we will see massive exports because there is not necessarily a lot of free uranium which is why the price has gone up for yellow cake.
Woodside to spend billion on Vincent oil field
Australia's largest oil company will spend a billion dollars developing the Vincent oil field, off the coast of Exmouth, in north-western Western Australia.
Vincent will produce about a fifth of Woodside Petroleum's annual oil production by the end of 2008.
Hartley's analyst Rob Brierley says Woodside has locked in oil production from Vincent for higher than the current price of crude oil.
"It's a decent oil field," he said.
"They've managed to hedge about 30 per cent of their production. Where they've got oil price locked in between $55 a barrel and $75 a barrel that's pretty healthy margin stuff."
Record floods hit gulf country
Graziers in Queensland's gulf country are still trying to assess damage caused by record floods.
Heavy rain from ex-tropical cyclone Larry has caused both the Leichhardt and Alexandra Rivers to burst their banks, covering up to 40 kilometres.
There have also been reports of sharks spotted near a homestead, 80 kilometres inland from the Gulf of Carpentaria.
Further south, Michael Crisp from Lorraine Station, says more than 250 millimetres of rain has flooded areas he never believed would go under.
"Part of our farm, our irrigated farm has been really heavily damaged," he said.
"There was up to 900 acres of corn sown and 60 or 70 acres of sorghum that had about three or four foot of water go over it and appears to be buggered altogether."
But in sharp contrast, cattle are perishing in Queensland's far south-west, because it has been so dry.
SA dams fill for first time in decade
There has been good rain across South Australia over the past few days, boosting soil moisture levels.
One farmer says his dams have filled for the first time in a decade, with more than a hundred millimetres of rain falling.
Julian Baillie near Tumby Bay on the Eyre Peninsula says it has come as a surprise.
"I sort of did a lap around earlier in the day and a lot of them which haven't had any water in them for the best part of 10 years or even more some of them," Mr Baillie said.
Blair attacks EU trade policies
British Prime Minister Tony Blair has used an address to the Australian Parliament to attack the European Union's protectionist trade policies on farm goods.
Mr Blair says despite some gains in trade reform, a tide of protectionist sentiment is still flowing around the world.
The PM has also singled out the closed trade policies of the United States and Japan, saying the future of all trade negotiations hinges on the current Doha round of talks.
"If we can't put a decent trade round in place, when it is so plain that our long-term national interest and the wider interest of the world demand it, this will be a failure with multiple consequences, all of them adverse," Mr Blair said.
AWB pool returns up
To the grains market and wheat exporter AWB has lifted its expected pool returns for the 2006-07 season by $5 a tonne.
It is also expecting an increase in returns for 2004-05 because of a lower Aussie dollar.
The National Party wants to set targets for ending the flow of urban waste water into the ocean and increasing the use of recycled water in both cities and rural areas.
The Nationals research arm, the Page Research Centre, will conduct a study into recycled water to see if reused water could help attract and keep industries to regional centres.
Chair of the study, Queensland Nationals president, Bruce Scott says there needs to be greater debate on community attitudes to recycled water.
"What I do know is that there are so many communities that are on water restrictions almost year round now and there are communities in regional areas that are unable to attract new industries to those towns because they don't have any water to offer those industries," Mr Scott said.
Mixed response to wool contract system
A new contract selling system for superfine wool has had a mixed response from producers at the first of a series of nationwide meetings.
Under the plan, specific fibres would be supplied to customers through direct marketing, rather than the auction system.
Frank O'Connor, from the Australian Super Fine Wool Growers Association, says he is not confident the plan will get the support or the half million dollars it needs to get off the ground.
"Not at all, but I think that's the challenge ahead of us," Mr O'Connor said.
Electronic nose could solve sheep industry woes
A small grey box could be the key to reducing fly strike, one of the sheep industry's biggest health problems.
The electronic nose is being trialed by the Sheep Cooperative Research Centre at Armidale, in New South Wales.
It detects the stench of blowfly maggots in sheep near a watering point and sends a signal back to the farm's computer.
Dr Ian Colditz says, if successful, the e-nose could help the industry save more than $160 million a year.
"The device works by having some electronic sensors that are picking up chemicals that are part of an odour and that creates an electrical signal that can be picked up by a computer and could be relayed to the farm office," Dr Colditz said.
Milk prices increase angers WA farmers
Western Australian dairy farmers are angry at milk price increases announced by dairy company Fonterra, because they say they are not enough.
Fonterra owns the state's biggest milk processor, Peter and Brownes (PB).
Farmers say the increase of 1.6 cents per litre, as well as an extra two cents a litre for production is too little, too late.
Northcliffe farmer Alan Walker says farmers should demand a fairer price.
"I would like PB suppliers to all to send a letter there, just to say how they've been treated," he said.
"The way to look at it is if only five people send a letter over there, then we may as well get back to work because nobody's worried.
"But if 105 people send a letter over there, I think the Fonterra board would have to look at that quite seriously and come back and renegotiate this situation."
Cow excema outbreak poses threat
There has been an outbreak of potentially deadly facial excema in several cow herds in eastern Victoria.
Sunburn on teats is the first sign of the disease, which is caused by fungal toxins in damp pastures.
Gippsland vet Jack Winterbottom says if left untreated there could be a major outbreak.
"We'd have dead cows, at the very least you'd have cows that would be very hard to manage in terms of being irritable perhaps not wanting to be milked, be very reluctant to have units put on teats," he said.
Pork given a health lift
Researchers in the United States have found a new way for humans to take omega 3 oils, by eating pork or bacon.
While vitamin-enriched plant-based foods have been around for years, the researchers have now bred pigs, which produce the fatty acids normally only found in fish.
Professor Randall Prather from the University of Missouri says he is confident the technology will not have the same problems as cloning procedures previously used in sheep.
"Well we used the cloning procedures so the procedures are the same, and yes sometimes you do get some animals that aren't perfectly normal," he said.
"What you saw with the sheep in the UK was the first generation, and when they had offspring the offspring were normal.
Sniffer dogs to hunt cane toads
Sniffer dogs trained to smell out cane toads will soon be introduced in north-west Australia.
Tenders have been called by Western Australia's Department of Conservation and Land Management for canine training.
The department is looking for a hardy dog to withstand the tropical conditions and regional manager Gae Mckay says it will be trialed in the scrub this dry season.
"Obviously it has to be a dog that's trainable and in particular with the cane toads we want to make it a field ready dog, so it's not just a matter of sitting sniffing luggage and so forth," she said.
Vaile confident of Iraq wheat deal
Trade Minister Mark Vaile says an important deal to sell wheat to Iraq could be completed as early as this week.
The Iraqi Grains Board told reporters overnight it had signed a contract to buy 500,000 tonnes of wheat at $US190 a tonne or around $US130 million in total.
But the consortium dealing with Iraq, Wheat Australia is not confirming details of the deal or that the Iraqi Grains Board has signed a contract.
Mr Vaile says conditions are still to be sorted through, but he believes the reported figures are close to the mark.
"I understand it is getting close, the negotiations are getting close to conclusion but there are still a number of issues left to be resolved," Mr Vaile said,
"I'm also aware that what is being negotiated is a contract for around 500,000 tonnes of Australian wheat but not being involved at the centre of negotiations I can't confirm yet that that has been concluded."
Grains market analyst Lloyd George says if the Iraq contract goes ahead, it will be a big increase on the tonnage originally proposed.
But he says the price reportedly agreed to by Iraq, casts some doubt over the deal.
WA prepares for cyclone Glenda
Western Australia's Pilbara region is bracing for severe winds and heavy rainfall as cyclone Glenda tracks down the coast.
The cyclone has been upgraded to category five and is north of Port Hedland, with warnings of wind gusts up to 200 kilometres an hour.
Weather forecaster Gavin Edmonds says by late tomorrow or Friday morning cyclone Glenda will be very close to the Pilbara coast.
"It is a very large system, one of the strongest cyclones we have seen off our Australian coast line," Mr Edmonds said.
"The estimated wind gust in near the centre are up to 300 kilometres an hour, exactly the same as Larry was prior to it approaching the coast line.
Gulf graziers appeal for assistance as floodwaters rise
Graziers in Queensland's north-western Gulf country want more state help for families affected by the worst flooding in 100 years.
Authorities fear the damage bill will run to millions of dollars after heavy rainfall in the wake of cylone Larry.
Bill Olive from Cliffdale Station says he had nearly 70 millimetres of water flow through his house and expects significant stock losses.
"I do hope that they do something to help a lot of people, especially people who are working in the area and a lot of the graziers," Mr Olive said.
CSIRO works with grain farmers on harvest predictions
The CSIRO hopes new research will give graingrowers an idea of what the season will be like six months in advance.
At the moment the Bureau of Meteorology can only give a three month outlook.
Peter McIntosh, from Marine and Atmospheric Research in Hobart, says they are a step closer to helping farmers make more accurate decisions in the lead up to harvest.
"What we'd really like to be able to do is to tell the farmer whether the climate conditions in the coming six months would be really good for growing or not," Mr McIntosh said.
DPI finds exotic tomato virus in SE Qld
Queensland officials have confirmed an outbreak of an exotic virus in tomato crops near Brisbane.
Yellow leaf curl virus has never before been found in Australia and has the potential to significantly cut production.
Chris Adriaansen, from the Department of Primary Industries, says up to 40 small farms could be affected, but says seedling nurseries that supply growers in other parts of the state are so far clear.
"Yellow leaf curl is quite a serious virus of tomatoes," Mr Adriaansen said.
"In other parts of the world where it has attacked before it's been responsible for very significant losses in some cases up to 100 per cent.
Resource industry struggles to find workers
Mining and resource companies are starting to face staff shortages as the jobs boom in rural Australia continues.
A new report says the demand for good staff is making it hard to find and retain skilled workers, and it's going to get worse.
Andrew Staite from Hudson Employment says the falling dollar and growth in China will continue to cause problems.
"It is good news but is also starting to now present lots of organisations with difficulties because the difficulty in attracting skilled workers, into certainly Western Australia and Queensland, is getting greater every day.
Mining boom apparent at NT conference
The boom in the resources sector has been reflected in a record turn-out at this year's Northern Territory mining conference.
About 200 executives from around Australia have been learning more about potential mineral and metal discoveries in the Territory.
And most agree that companies are stepping up exploration as they look to cash in on strong commodity prices.
"I'm Peter Robinson I'm a consultant I'm up here for URANEX, Uranium Exploration Group, people are starting to focus here a lot and the more they focus the more they find and the more they find the more they focus."
"John Thevissen from Mincor Resources, because we're based in Western Australia this is our first time in the Northern Territory, we've applied for ground in the Northern Territory to look for base metals copper, lead, zinc and silver."
Push for licence review after trawling company goes under
Darwin's prawn trawling fleet has been cut almost in half with the demise of a major company.
Austfish has been placed in receivership with higher operating costs, cheaper imports and season limits believed to be responsible.
It is expected most of the company's 12 boats will be withdrawn from the fleet along with those of a smaller operator, who has voluntarily entered administration.
David Carter of Newfishing Australia is calling on the Commonwealth Government to urgently buy back licences.
"We expect in the next couple of weeks, the Department of Agriculture, Fisheries and Forestry will invite all operators in the northern prawn fishery to tender their right, that will be in the form of a buy back," Mr Carter said.
Residue concerns open up Japanese hay market
Concern over residues found in hay exported from the United States to Japan is opening up new markets for Australian farmers.
The hay exporting company Johnson Asahi wants more farmers to grow oaten hay for the Japanese market, to capitalise on Australia's clean, green image.
Spokesman Anthony Chapman says it is not yet clear what the residues found in the US hay were.
Flooded market makes life tough for citrus growers
Citrus growers say their outlook is going from bad to worse.
Growers says a large crop, a flood of cheap imported juice concentrate and shrinking export markets are preventing many from selling their fruit.