Australian Natural Resources Atlas

Natural Resource Topics

Australian Agriculture Assessment 2001 - Profile of Australian agriculture

SUMMARY

Australian agriculture at a glance
(1989/90 to 1998/99)*

* The data show trends averaged for 1989 to 1992 and for 1995 to 1998. They were all sourced from the Australian Bureau of Agricultural and Resource Economic Commodity Bulletins (1997-1999), where the data for 1998 are stated as 'provisional'.

VALUE OF AGRICULTURE TO AUSTRALIA

Agriculture is Australia's primary way of using natural resources to produce food, drink and clothing. We also export a significant proportion of these goods (Table 8.1).

Table 8.1 Value of major products from agricultural land uses in 1996/97.
Commodity & group Value
(A$ m)		 % of total
agriculture		 %
exported		 Distribution by State
NSW Vic Qld SA WA Tas
Horticulture 4 243 15.1 13 21 26 24 16 9 3
Vegetables 1 213 4.3 15 13 27 33 10 11 6
Fruit 2 389 8.5 - 24 26 19 22 6 3
Orchard 1 668 5.9 22 25 24 26 14 7 4
Grapes 721 2.6 17 22 30 2 41 4 -
Semi-intensive 3 289 11.7 - 41 4 47 4 1 2
Sugar 1 186 4.2 79 6 - 94 - - -
Cotton 1 342 4.8 80* 70 - 30 - - -
Rice 310 1.1 57 99 1 - - - -
Potatoes 449 1.6 >1 11 27 12 26 8 16
Broadacre crops 8 383 29.8 76 32 14 10 15 29 1
Cereals (includes wheat) 7 177 25.5 76 36 11 10 14 28 -
Wheat 4 878 17.3 81 36 10 9 12 33 -
Oilseeds 325 1.2 45 51 17 13 7 13 -
Pulses 594 2.1 69 8 25 4 17 47 -
Hay (includes pastures) 596 2.1 - 20 35 9 16 5 -
Livestock products 5 754 20.4 - 28 37 10 8 13 4
Wool 2 621 9.3 83 38 20 7 11 22 3
Milk 2 809 10.0 - 18 55 12 6 6 5
Livestock slaughters 6 215 22.1 53 28 23 26 7 11 2
Lamb & mutton 1 039 3.7 70 24 33 5 13 23 2
Beef & veal 3 390 12.0 74 23 20 36 4 8 2
Total agriculture 28 156 100 - 29 22 20 10 15 2

* Over 90% in 2000/01.

Source: Australian Bureau of Statistics.

SHEEP

Sheep and wool producing regions of Australia.

National perspective

The sheep and wool industry produces sheep skins and a range of wool qualities that are used for fine garments, yarn, upholstery and carpets. Mutton and lamb are produced for domestic consumption and export markets. Live sheep are also exported.

Sheep farming occurs across much of Australia (Figures 8.1), including areas in the:

Sheep distribution as a proportion of flock by statistical local area for 1996/97.

Freehold land tenure for the higher rainfall and wheat-sheep zones average 73% and 69% respectively, while the pastoral zone is mainly under long-term crown lease (91%). In each of these zones, farm business profit in 1998 was negative, with an average loss of $31,000. Farm debt averaged $135,000, being less in the wheat-sheep zone.

Many innovations and market forces have contributed towards the development of Australia's modern sheep meat and wool industries (Figure 8.2) so that today, Australia is the world's largest producer of wool, and remains the main exporting country.

The wool and sheep industry began with herded flocks of sheep spread over the countryside, grazing native grasses, with the wool clipped by hand shears, loosely packed in open bullock-drawn drays and sent to uncertain markets in the United Kingdom. National sheep numbers peaked in 1970 at around 180 million, but have since declined to about 120 million. Another peak occurred in the late 1980s, mainly in response to higher wool prices. Annual wool production per sheep has remained reasonably static since 1980, at around 4.5 kg.

Total sheep and lambs in Australia each year since 1860, with significant historical events. Number of sheep in the different States of Australia from 1950.

At the State level, total sheep numbers over the last 50 years (Figure 8.3) have always been more numerous but more variable in New South Wales. In contrast to most States and Territories, where sheep numbers peaked during the 1960s, sheep populations in Western Australia continued to increase until 1990, partly caused by land clearing in the Great Southern region during the 1960s and 1970s. The general decline since 1990 in all States relates to lower wool prices from 1989.

Regional perspective

Trends in sheep numbers located within the agricultural zones of each State and Territory between 1983 and 1997 tend to mirror total sheep populations in each State for this span of years (Figure 8.4).

Recent changes in sheep numbers in the intensive agricultural areas of each State and Territory between 1982/83 and 1996/97.

In 1999, 117 million sheep grazed over 86 million hectares, with much of this area being Australia's semi-arid rangelands or pastoral zone. Most of the sheep population and wool produced came from the relatively smaller high rainfall and temperate zones (Table 8.2).

The gross value of production for the industry in 1999 was $3772 m:

About 25% of Australia's sheep meat production is exported each year, and between 4 and 6 million sheep are shipped live.

Table 8.2 Regional sheep and wool production.
Region Flock size
(millions)		 Wool
('000 t)		 Area grazed
(million ha)		 % of Australian
sheep area
High rainfall zone 18 82 5 5
Temperate zone 14 72 12 14
Pastoral zone 9 44 69 81

Source: Australian Bureau of Statistics.

Practice in the sheep/wool industry

Graziers in the three sheep/wool zones identified different resource degradation issues (Figure 8.5).

Proportion of sheep farms surveyed that reported significant degradation (1998/99).

Management practices also vary substantially between zones (Figures 8.6).

Adoption of best management practice in the sheep/wool industry is being achieved through initiatives such as PROGRAZE (see case study).

National sheep farm management and practice applicability (1998/99).

* Pastoral zone farms only

** Temperate and high rainfall zones only

SUSTAINABLE GRAZING SYSTEMS FOR SOUTHERN AUSTRALIA

Meat & Livestock Australia in partnership with government

The Sustainable Grazing Systems program was set up to address the issues of declining pasture productivity and sustainability in the grazing systems of the higher rainfall zone of southern Australia (annual rainfall > 600 mm). Rather than the traditional approach where research works independently to develop and package information for producers, Sustainable Grazing Systems has pioneered an attempt to bring researchers, producers and extension agents into a partnership to collectively improve the productivity, profitability and sustainability of grazing systems in the high rainfall zone. There are three interacting elements within Sustainable Grazing Systems:

Sustainable Grazing Systems already has an excellent record of delivery to stakeholders, including the following key outcomes delivered by the end of June 2001:

The Sustainable Grazing Systems harvest year

Sustainable Grazing Systems concluded on 30 June 2001, following five years of research, demonstration, extension and training. Instead of beginning a new program promptly on 1 July the harvest year will run for 12 months with a vision of producers working with researchers to extract and interpret the results and experiences from Sustainable Grazing Systems, and to derive maximum value from the investment in Sustainable Grazing Systems.

The key outcome of the Sustainable Grazing Systems harvest year will be the development and widespread adoption of more productive and sustainable grazing management practices for grazing (wool and meat) enterprises in the high rainfall zone of southern Australia.

The harvest year will build on the results achieved and seek to deliver the following outcomes:

To progress the development of tools and products for producers, four harvest teams are already operating. These are teams of producers and researchers working to rapidly draw together and interpret the results and experiences from Sustainable Grazing Systems. The harvest teams are:

An integration team provides oversight and manages the trade-offs between teams.

BEEF CATTLE Beef producing regions.

National perspective

The beef cattle industry delivers quality meats and leather to Australian consumers, and exports chilled and frozen beef and veal and live cattle, earning a total annual export income of over $2.5 billion.

Beef production occurs across much of Australia (Figure 8.7), including:

Beef distribution - percentage by statistical local area

The herd consists of 20 million beasts. Major breeds are:

In the pastoral areas of Australia, substantial proportions of the beef grazing lands are held under long-term crown lease tenure (85% of the land). In the higher rainfall and temperate areas, properties are mostly freehold (51% and 93% respectively).

The Australian beef cattle industry has expanded and responded to challenges during its history (Figure 8.8).

In recent times, the industry has sought to increase productivity to compensate for falling prices. In the early 1970s, a large increase in beef cattle numbers occurred as export markets in Europe, North America and Japan developed at the same time that wool prices fell and wheat quotas were introduced in Australia. In the mid-1970s the European Community and Japan restricted access to their markets, causing a collapse in cattle prices.

Trend in numbers of beef and dairy cattle in Australian since 1860.

Regional perspective

Beef cattle numbers reached their peak in the late 1970s in Queensland, a little later than the other States where changes in stock numbers were reasonably comparable (Figure 8.9). Restrictions to export markets caused numbers to decline after 1975 in all States. Since 1983, increases in exports of beef, veal and live exports have led to steadily increasing cattle numbers, while maintaining the relativities in total populations between States, with Queensland and New South Wales dominant producers.

Numbers of beef cattle in each State from 1950. Distribution of National Feedlot Accreditation Scheme accredited feedlots 2000

Feedlots are increasingly being used to 'finish off' cattle before slaughter. Feedlots are located mainly along the western slopes of New South Wales and Queensland (Figure 8.10), partly to obtain year-round access to a wide range of cheaper grains as feedstuffs. In 1999, Australia's beef feedlot capacity was for more than 873,000 cattle and was used to 58% capacity. A large proportion (49%) of beef were held on just 14 very large feedlots (each holding >10,000 head). A further 14% were fed in the 700 smaller feedlots (holding <1,000 head). In 1999, 349,000 lot-fed beasts were exported (63% of total beef exports).

In 1999, a total of 9.3 million cattle were slaughtered in Australia, producing 1.96 million tonnes of meat with a total value of $3,763 m; 93% of these were retained for the domestic meat markets.

Beef producing regions.

Practice in the beef cattle industry

The beef cattle industry is spread over six zones in the northern and southern zones (making up high rainfall, temperate and pastoral zones).

The most consistently identified issues facing the beef cattle industry are:

Other degradation problems identified include waterlogging (mainly in the southern zones), loss of soil structure, soil acidity and wind erosion (both zones) and salinity (southern zone).

Producers identified problems in pasture management requiring research in the 1994 Survey of Temperate Pasture Sustainability Key Program (Figure 8.13).

Graziers approach regional degradation problems in different ways (Figure 8.15) and management options in pastoral zones differ from those used in more intensive cattle enterprises.

Best practice guidance is provided to graziers through codes of practice for general agriculture (e.g. developed by the Queensland Farmer's Federation) and through the industry's PROGRAZE (p. 244) and Northern Australia Program initiatives (see case study overleaf). These industries promote sustainability through self improvement approaches to water use, chemical and nutrient management and broadly building manager skills across the business enterprise.

Proportion of northern Australian beef farms surveyed that reported significant resource degredation Proportion of southern Australian beef farms surveyed that reported significant resource degredation National beef farm management and practice applicability (1988/99) Perceived pasture management problems requiring research

SUSTAINING THE BEEF INDUSTRY - NORTHERN AUSTRALIA

The North Australian Program was the main vehicle for Meat and Livestock Australia involvement in research and development in the beef industry from July 1996 to June 2001. The program included direct investment in projects related to natural resource sustainability and healthy landscapes and has spent $5 million of a $12.5 million five-year budget. A further $2 million will be invested in projects marrying beef productivity and sustainability aspects.

The North Australian Program has also supported a number of focused projects to address specific issues:

As well as understanding the typical Australian landscape system and the impact of grazing upon the landscape, the North Australian Program has initiated work to optimise the productivity of these grazed landscapes within a framework of sustainable land use. Large-scale grazing trials and observations in the Channel Country, Victoria River District, southern and northern spear grass and eucalypt/box woodland regions have expanded tools available to graziers for the use of fire, grazing tactics, infrastructure planning and cattle distribution.

Work has also been commissioned to deal with weed problems: notable success has been achieved in controlling rubber vine and parthenium and the search continues for control measures for other invasive weeds such as giant rats tail grass, chinee apple and African love grass.

The North Australian Program has placed a strong emphasis on integrating its funded research into a useable management framework and is in the final stages of producing a comprehensive training package in grazing land management. This package has been developed in response to producer demand and has been designed to deliver relevant, useful and practical outcomes.

The program has also initiated an evaluation of ISO 14000 and its application to beef enterprises. Adoption of a formal Environmental Management System takes environmental considerations into account within a management context (e.g. production, marketing, administration).

North Australian Program is also a key funder of Rangelands Australia, a joint initiative with the University of Queensland and others to develop a centre for rangeland science education and management with an emphasis on industry relevance and involvement. Rangelands Australia will form an essential link between science and application, providing formal training and qualifications for managers, advisors and administrators in Australia's rangelands.

The standout breakthrough North Australian Program project has been the Beef Plan project. This pilot project has reversed the normal Meat and Livestock Australia approach to technology transfer and adoption by empowering a limited number of groups of producers to work on their own issues, coming to Meat and Livestock Australia and other agencies for support if needed but always on their terms. Much of the activity within these groups has been directed towards resource management issues. The dynamic lessons learnt from the pilot have had a profound influence on shaping Meat and Livestock Australia successor to North Australian Program 3, the Northern Beef Program.

Can North Australian Program claim success in its work in natural resource management?

Clearly, the research has been productive from a technical and scientific perspective.

It is also obvious that the program has:

Without being able to attribute cause and effect, North Australian Program is pleased to note the importance of sustainability among producers with a recent survey of beef producers across Queensland, the Northern Territory and Western Australia ranking it equally as important as profitability.

In response to that awareness, the new Northern Beef Program has nominated 'Balancing business and environment' and 'Emerging environmental issues' as key themes for investigation and development over the next five years.

Meat and Livestock Australia acknowledges the integral support of Land and Water Australia, and Environment Australia in funding projects. It also recognises the immense contribution of collaborating agencies and individual producers. Meat and Livestock Australia will seek to strengthen that collaboration for the long-term betterment of the industry, rural communities and the environment.

GRAINSGrains Regions of Australia

National perspective

Products from the grains industry provide raw ingredients for many familiar foods - bread, biscuits, cakes, noodles, spaghetti, pasta, baked beans, and breakfast cereals. They are used unrefined (rice and peanuts), have components extracted from them (vegetable oils and gluten), and contribute to value-added products (e.g. beer and some spirits). An increasing proportion is being used as feedstuffs for intensive animal production units.

Grain crops are grown in three main regions within the sheep-wheat zone of Australia:

The Australian grains industry produces a range of different crops (Table 8.3) including:

The grains industry is still dominated by wheat in terms of:

Table 8.3 Australian grain production in 1997/98.
Grain Volume
(Million tonnes)		 Value
($ million)
Cereals 28.9 5 145
Oil seeds 1.0 417
Grain legumes 2.2 602
Rice* 1.2 293

* In 1997/98, 0.38 million hectares of irrigated cereals were grown, of which 0.13 million hectares was rice. It used 1,643 GL each year with an average return of $189 per megalitre of irrigation water.

Exports

Approximately 75% of the grains produced in Australia are exported, earning about $6 billion a year. More than half of the exports are wheat and, although Australia produces only about 3% of total world production, national exports make up 15% of world trade.

Exports of canola have increased considerably since 1991, mostly to Japan and China. Australia's pulse crop exports make up between 10% and 20% of world trade.

Wheat

Wheat acreage expanded slowly in the late nineteenth century (Figure 8.15). Research since World War II has ensured that innovations have continually occurred such as improved wheat varieties and cropping techniques. Clearing of land and capacity to produce winter grain production means that wheat has continued to dominate total production.

Area of wheat and total winter grains in Australia since 1860 with selected events. Average grain yields of wheat in Australia since 1860 categorised according to incidence of drought.

During the 1980s, areas sown to wheat declined, mainly due to falling world prices. New crops (mainly lupins and canola) were introduced to diversify rotations and to improve control of weeds and diseases. With the collapse of wool prices in 1989, areas sown to winter grains (especially canola) increased, continuing a trend to increase the area sown to other crops relative to wheat.

Paralleling the expansion in area sown to wheat, has been an almost continuous upward trend in yields achieved during the twentieth century (Figure 8.16) that followed the era of exploitation of the soil nutrient reserves at the end of the nineteenth century (Donald 1965, Angus 2001). Wheat yields over the past 100 years have quadrupled, approaching 2 tonnes per hectare, following the adoption of improved crop practices (e.g. stubble mulching, crop rotation and soil fertility management). Recent regional trends in wheat and other cereal yields are presented in Changing face of Agriculture section of this report.

Regional perspective

Changes in the combined area sown to grain crops in each State (cereals, grain legumes and oilseeds, but excluding rice) show significant differences between States during the period 1982 to 1996 (Figures 8.17, 8.18).

Changes in the area sown to grain crops within each State during 1982/83 to 1996/97. Changes in the area sown to broadacre grain crops comparing the three years 1994, 1996 and 1997 on a statistical local area basis.

The southern grains region produces about 46% of the total grain crop, while the western and northern regions produces about 30% and 25% respectively. Rice is produced entirely (1.2 million tonnes) in the southern region (Table 8.4).

Table 8.4 Regional grain production (1998/99).
Cropping region/location Field grains
('000 t)		 Oilseeds
('000 t)		 Grain legumes
('000 t)		 % of Australian
grain production
Northern region 8 863 177 117 24.5
Qld central 639 77 10 1.9
NSW north-east, Qld south-east 6 105 90 89 16.8
NSW north-west, Qld south-west 2 099 10 18 5.7
Southern region 14 514 529 1 027 46.2
NSW central 2 381 72 16 6.6
NSW, Vic slopes 3 373 262 94 10.0
Vic high rainfall, Tas grain areas 348 18 12 1.0
SA, Vic Bordertown-Wimmera 1 875 122 418 6.5
SA, Vic mallee 3 483 22 213 10.0
SA mid north-Lower Yorke 3 053 33 273 9.0
Western region 9 503 84 1 335 29.2
WA central 4 938 57 588 14.9
WA eastern 1 546 2 126 4.5
WA northern 1 967 4 564 6.8
WA mallee and sandplain 1 046 21 57 3.0
Australia 32 881 790 2 479 100

Practice in the grains industry

The Australian grains industry conducted two benchmarking assessments of industry practices in 1994 and 1998. The assessments were aligned to the three major grain growing areas - northern, southern and western regions. Within these regions, the relative ranking of degradation issues varied, but in each region a proportion of grain growers recognised a range of issues of local importance (Figure 8.19).

The grain industry survey in 1998 indicated that:

Identified best management practices varied (Figure 8.21), but were mainly associated with:

Recent innovations in pasture-cropping techniques (regenerative agriculture) are highlighted in the Birriwa-Gulgong area in Central West New South Wales (see case study overleaf).

Avenues for advice on practice are provided to farmers through the industry programs such as TOPCROP program (Grains R&D Corporation) and through research agencies and agribusiness.

Proportion of surveyed grain farmsthat reported on significant degradation (1998-99). National grain management farm and applicability(1998-99). Comparison of best practice adoption (1998-99).

REGENERATIVE AGRICULTURE

New farming model: Oz farmers show the way

We hear a lot these days about the need to mimic natural ecosystems, increase biodiversity, improve soil structure, maintain year-round water-use, increase ground cover and soil organic matter levels, stabilise soil pH, stimulate nutrient cycles and enhance microbial antagonism to combat root-borne pathogens. There is little practical advice on how to incorporate these highly desirable features into the day-to-day reality of farming, let alone make a profit.

That was, until a handful of innovative Aussie farmers came up with the elegantly simple notion of 'pasture cropping'. Grain growers can now have all of the above, and more. They can graze their paddocks and crop them too. The pastures and the crops will improve with each passing year. How?

Darryl Cluff and Colin Seis from the Central West of New South Wales are two of Australia's leaders in pasture-cropping technology. The Cluff-Seis pasture-cropping technique involves the direct seeding of an annual crop into perennial native pasture. The remarkable success of the technique has hinged on the fact that the C3 winter cereals fit neatly into the growth cycle of C4 warm season native grasses, which are dormant during the cooler months.

They use natural ecological services to replenish and reactivate the resource base. With all agricultural practices, the true bottom line is whether soil is being formed or lost. If it is being lost, farming will eventually become both ecologically and economically unsustainable.

The birth of pasture cropping

Traditional techniques, which involved the complete removal of all vegetation, resulted in vast tracts of bare ground both before and after the crops. These areas were recolonised by relatively unpalatable perennial grasses and naturalised annual weeds. Soil erosion on arable land was extensive, accompanied by soil structural problems and rapid nutrient decline. The use of subclover and superphosphate brought temporary relief, but the long-term trend in soil health continued to be down.

The average annual rainfall in the Birriwa-Gulgong district is around 600 mm with a slight summer dominance, although it is unpredictable and highly variable within and between years. In 1995, following an 18-month drought, Darryl Cluff direct-drilled an oat crop into a native redgrass (Bothriochloa) pasture in which subsoil moisture levels at sowing were zero, yet the crop performed well. The pasture-cropping technique was born. The technique is considered applicable across all rainfall zones.

The following year, Darryl Cluff began experimenting with wheat, and his Landcare colleague Col Seis tried pasture-cropping oats, some grown without herbicide application. Their crops were sown with an Australian-designed and constructed Agrowdrill direct-drill seeder, 30 cm row spacings, approx. 30-40 kg seed/ha and 85-135 kg/ha Granulock 15 fertiliser (N15:P12:S12), dropped into the rows with the seed.

Darryl Cluff intends to continuously crop some of his pasture paddocks to wheat to determine whether the microbial biomass and diversity associated with the living pasture base will be sufficient to prevent the proliferation of pathogens in the soil. In other paddocks, he is trying alternative crops such as lupins (which performed so well last year that follow-on summer pasture regrowth was inhibited), and experimenting with the re-sowing of native grasses such as Themeda australis (kangaroo grass) with the crop seed.

Col Seis has preferred to rotate the paddocks he pasture-crops each year, and reports significant improvement in the vigour and diversity of his native pastures. His principal focus is on livestock production and he uses pasture cropping as a pasture improvement technique.

Improving crops and stock

Col Seis now pasture-crops 240 ha of his 809 ha property to oats, wheat and lupins. He has increased the cropped area every year without reducing his stocking rate; not only because the pasture health is continually improving, but also because the land doesn't have to be taken out of production and 'prepared' for cropping.

His 2000 wheat, Whistler, yielded 3.63 t/ha. The year before, Janz did not do as well and Col Seis puts it down to choosing the wrong variety for the acid soils on his property. Oats have yielded up to 4.4 t/ha since 1995.

Col Seis says the property is producing around 39 kg greasy wool per hectare at an average cost of $2.047 per kg. This compares with a regional benchmark of 35 kg wool per hectare at $3.07 per kg.

Livestock are important to the pasture-cropping method. Col Seis has improved the gross margins on his sheep enterprise by using sheep to heavily graze pastures prior to sowing, as an alternative to spending money on pre-sowing herbicides or cultivation. He also now does not have to re-establish pastures, which was the practice in the past, because they are rapidly improving.

Darryl Cluff says they use conventional harvesting techniques for their cereals; with the grasses below the crop level, there has been no problem. They have not noticed any significant compaction. In fact, the root systems of the pastures seem to have a 'de-compacting' effect which both counteracts the compaction effects of machinery and stock, and also seems to de-compact previously compacted soil after it's been established for a couple of years.

Further adjustments

Both farmers learned that crop establishment is slower in the pasture base, and sow about two weeks earlier than the recommended date. They have observed an increase in red-legged earth mite but feel this will cease to be a problem once the biodiversity of plants and invertebrates increases.

Resowing natives

Col Seis is experimenting with the re-sowing of native Paspalidium and Urochloa (previously Brachiaria) species along with crops. The tools are the Scorpion brush seed harvester and Germinator seeder, enabling locally occurring native grass seed to be harvested and re-sown. This innovative equipment (with more to come) was developed by Darryl Cluff, Col Seis and other members of the Barneys Reef Landcare Group, and skilfully transformed into engineering masterpieces in the hands of Doug Seis, Col Seis' cousin.

As with the pasture-cropping model itself, the fine-tuning of the machinery capable of harvesting and re-sowing the often difficult seeds of native grasses and legumes has required much creative effort and testing, devotion to teamwork, countless late nights and the occasional beer.

The vision is to help develop a native grass seed industry which will enable regenerative practices such as the Cluff-Seis technique to be widely used. If native grasses are re-sown with crops, and nurtured via the pasture-cropping technique, millions of hectares of farmed land currently suffering severe soil degradation and dryland salinity problems could be rehabilitated.

Although the current pasture-cropping methodology has been developed for winter cereals, most annual crops would be healthier if sown into permanent, living, ground cover.

COTTONCotton growing areas in Australia.

National perspective

Cotton produces one of the world's premium fibres (lint) used for garments, sheeting and threads. It is also the second largest source of oilseed in Australia, second only to canola.

Australian cotton is grown in three regions:

Cotton has been grown in Australia since the 1800s, although the modern cotton industry was not born until the 1960s, when the construction of large dams in northern New South Wales and southern Queensland made the development of irrigated production systems in these areas possible. A reliable supply of water, and the arrival of a small group of American cotton growers were the main driving forces behind the growth of irrigated cotton in Australia. Irrigated and dryland production expanded rapidly during the 1980s and 1990s. 1985 production totalled 1.1 million bales while 1998 production was 3 million bales (one bale = 227 kg of cotton lint). Average production for the last three years (1997-2000) is over 3 million bales per annum.

Australian cotton growers consistently achieve the highest yields of any of the world's large cotton producers. For example, in 1999 and 2000, the average yield on Australian farms was 1366 and 1574 kg/ha respectively. Corresponding figures for the United States of America were 725 and 696 kg/ha, and for China, 1064 and 1040 kg/ha. Most of the Australian crop (generally around 90%) is exported. The value of Australian raw cotton exports was $1.7 billion in 1999, and $1.6 billion in 2000.

Irrigation generally trebles the yield of lint and other cotton products.

The industry's major environmental issue relates to its use of pesticides for controlling budworms (Helicoverpa spp.). These pesticides collect in waterways affecting fish, birds and human health. Other issues relate to efficient use of water and fertilisers that may affect the volume and quality of water available downstream.

Table 8.5 Areas of irrigated and dryland cotton production, 1999 and 2000*
Production system Area grown
1999
(ha)		 Area grown
2000
(ha)
Irrigated 403 300 402 400
Dryland 131 100 59 500
Total 534 400 461 900

* Source: Australian Cotton Grower Yearbook

Practice in the cotton industry

Recognition of key challenges - pesticide use, land use and water use - arose through an industry-wide environmental audit and appropriate best management practices were developed (Williams et al. 2000). Adoption of these practices across country is progressing very well. Research and extension are targeted to ensure comprehensive adoption. Direct expenditure on research and extension aimed at improving environmental sustainability, is almost $6 million each year from Cotton Research and Development Corporation funds.

The Australian cotton industry Best Management Practices Manual (Williams et al. 2000) was developed out of a joint research between the Cotton Research and Development Corporation, Land & Water Australia and the Murray-Darling Basin Commission.

The Best Management Practices Manual outlines the principles, purpose and benefits of best management practice and the need for 'due diligence'. The manual is in its second edition and incorporates extra information on pesticide storage and handling, farm hygiene, human safety, and dryland cotton production. It also contains extensive information updated from edition 1 of the manual on management strategies for:

Each area covered in the Best Management Practices Manual contains:

The Best Management Practices Manual provides a flexible way for cotton growers to manage their farming operations so that they minimise environmental risks associated with pesticide use and is serving as the foundation for a comprehensive environmental management program. It provides a range of potential benefits, including:

COTTON INITIATIVE - BEST MANAGEMENT PRACTICE IN ACTION

The Australian Cotton Industry Best Management Practices program has been developed to help cotton growers manage and improve their farming operations and minimise environmental impacts.

Rogate Farms is an irrigated cropping enterprise near Boggabilla in the Macintyre Valley of northern New South Wales. The farm has 1116 ha of irrigated cultivation and cotton is the principal crop. The farm manager and five other full-time workers have taken a proactive approach to innovation by applying research in practical ways.

The major farming and resource issues for Rogate Farms are the same as those facing most other cotton-growing enterprises:

Adoption of and ongoing commitment to the cotton industry voluntary Best Management Practices program is producing significant on-farm benefits to operations in these three resource areas.

Rogate Farms adopted the Best Management Practices program in 1998 and has successfully completed the first two audits (initial and compliance). A certification audit will take place in August 2001.

A key element of the Best Management Practices process is the identification and assessment of farm risks. Worksheets in the Best Management Practices manual assist growers to assess their farm operations and subsequently develop and implement action plans. For Rogate Farms, the risk identification and assessment process resulted in a number of capital improvements.

Enlarging the tail water return has increased irrigation system capacity and allows all water on the farm to be recycled. In conjunction with other farm-design initiatives this system also minimises the environmental impact of storm events by increasing control of run-off flows. In the field, water use is monitored throughout the season. Analysis of the data collected during the 2000/01 season revealed that Ingard© cotton (genetically modified varieties) grown on Rogate Farms produced 1.4 bales of cotton per megalitre of water, compared to 1.3 bales per megalitre for conventional cotton varieties - a productivity gain of around 7%. Conventional varieties took slightly longer to mature and needed one more irrigation than the Ingard crops.

The introduction of Ingard varieties has facilitated the widespread adoption of integrated pest management strategies in the cotton industry. This management philosophy suggests that effective control of insect pests can be facilitated by encouraging natural agents including predators, parasites and viruses. The practical implementation of this 'softer' approach to pest management by Rogate Farms includes placing Ingard cotton in sensitive areas (e.g. along property boundaries and near waterways). Some early season insect damage to the crops is tolerated as research has shown that cotton plants can compensate for early losses. Improved farm productivity has been a tangible benefit of the integrated pest management program with farm records showing significant reductions in pesticide use and therefore input costs achieved during the past five years.

Farm productivity can be significantly affected by soil health. On Rogate Farms beneficial elements within the soil are an important consideration for the overall disease management plan. One innovation has been trial of vetch as a rotation crop to cotton. Rather than being harvested, the vetch is worked into the soil as a green manure. This is based on research showing that vetch could fumigate the soil and help with disease control, particularly Black Root Rot. An added bonus is that vetch can fix a significant amount of nitrogen, reducing the need to apply nitrogen fertilisers. In last season's field trial, strips that had no additional nitrogen fertilisers produced a cotton crop of 7.2 bales per hectare, comparing favourably to other strips in the field which had 115 units of nitrogen applied to the soil and yielded 8.3 bales per hectare.

Farm hygiene plays an important role in maintaining soil health by preventing the spread of disease and is a key element of the Best Management Practices program. Central to the diseases management strategy on Rogate Farms has been the installation of an improved wash down facility and establishment of several disease management units. A number of soil-borne diseases can be transported from field to field and farm to farm in mud and dust on vehicles, equipment and footwear and thorough cleaning is required to prevent this.

The practical strategies and flexible guidelines outlined in the industry's Best Management Practices program have had a significant and beneficial impact on the operations of Rogate Farms and many other cotton properties. Improved resource management is occurring on a broad scale as a result of this program, with an even broader range of beneficiaries.

Cotton vetch

The best management practice program is successful because it is:

The best management practice program includes an audit scheme for cotton growers (by independent assessors) on their adoption and compliance of the best management practice , as well as, implementation of specific best management practices. These independent auditors are required to have a background in cotton production and must complete an 'Environmental Systems' Auditing Course, specifically tailored to the Best Management Practices Manual.

By June 2001, 145 cotton growers had been audited on their compliance with the Best Management Practices Manual. Regional levels of adoption of the principles in the Best Management Practices Manual varies (Table 8.6).

Improved resource management is occurring on a broad scale as a result of this program (see case study example of the significant and beneficial impact of the industry guidelines).

Future directions of best management practice will include management of:

The best management practice program also recommends that growers keep up to date with current Australian Cotton Cooperative Research Centre extension materials (e.g. SPRAYpak, ENTOpak, SOILpak, MACHINEpak, NUTRIpak).

Table 8.6 Level of adoption (%) of the industry's best management practice manual by regional cotton growers.
Audit stage Australia total Northern region Central Border
region		 Southern Inland
region
Number of growers 112 1 006 162
No progress / don't know (%) 17 46 13 19
Progressing (%) 57 37 60 53
Audit ready (%) 12 12 11 16
Audited (%) 11 5 17 12
2nd Best Management Practices Manual (%) 70 54 79 26

SUGAR CANE Cane growing regions of Australia.

National perspective

The sugar industry produces sucrose - refined to give sugar - and some by-products such as molasses and fibre used for composite boards.

Australian sugar is grown mainly along the east coast of Australia in:

A small area of production also exists in the northern Western Australia Region (Ord River mill area).

The sugar industry on farm employs 12,700 people across more than 5,300 properties. The number of cane farmers increased steadily between 1989 and 1999 (from 5% to 22% in different regions of Queensland). The industry generates about $1.2 billion in value each year, with 70% of the refined sugar exported to a wide range of markets.

Regional perspective

In 1998, nearly 60% of the sugar area and cane production were located in the Herbert/Burdekin and Central regions of Queensland (Table 8.7). The Ord River Irrigation Area of Western Australia has the advantage of high radiation and plentiful irrigation water. Sugar yields are optimised and controlled in those areas where the cane is irrigated and where sunshine hours are highest.

Major environmental issues for the industry are water-borne soil erosion, chemicals and fertiliser to waterways, with special concern for impacts of outflows to the Great Barrier Reef Lagoon. The industry itself is also concerned about lack of yield increases in many areas. Gains in total productivity within the industry regions relate mostly to increased use of mechanisation and increased scale of operation.

Table 8.7 Regional sugar production.
Region/mill area Cane (Mt) Sugar (kt) Cane yield (t/ha/year)
Northern Region 7.7 862 87
Herbert/Burdekin Region 12.2 1 610 103
Central Region 11.4 1 412 105
Southern Region 6.0 781 85
New South Wales Region 2.5 294 ~67*
Western Australia Region 0.4 47 126
Australia 40.2 5 006

Source: Canegrowers Annual Report 1998 and Australian Sugar Year Book 1999.

* New South Wales harvests are generally every two years as opposed to one year crops for other regions. The estimate of 67 t/ha/yr for New South Wales is likely to be an underestimate with some annual cropping in New South Wales.

Practice in the sugar industry

The industry's intensive production areas are located in environmentally sensitive regions, where river systems discharge to the Great Barrier Reef. The areas also have high habitat value such as floodplains, wetlands and estuaries and increasing human populations.

The Queensland sugar industry audit in 1996, identified eight main environmental issues:

More recently, extension officers identified a range of issues for each sugar-producing region (Table 8.8) including:

In response to the 1996 audit, the industry continues to develop environmental policies , codes and guidelines aimed at minimising environmental impacts. These guidelines are supported by extension and research, enabling informed adoption of technology. Codes of practice developed by the industry include: Sustainable Cane farming in Queensland, Fish Habitat Code of Practice and Best Practice Guidelines for Acid Sulfate Soils.

Adoption of recommended practices from these documents has increased, particularly for those practices that deliver positive environmental and economic outcomes (O'Grady & Christiansen 2000). Rapid adoption of green cane trash blanketing (to protect soil from eroding) is a good example and reflects the flexibility in harvest that green cane techniques provide. Other practices which are progressively improving are: waste disposal of chemicals, slashing techniques for headlands and grassed waterways, tail water drains, record keeping, trash management in ratoon crops and fallow, irrigation scheduling and chemical use and handling (O'Grady & Christiansen 2000). The development of sustainable production systems is highlighted by the research and adoption of surface drainage and nutrient management for canelands on floodplains in the Herbert (See Ripple Creek case study).

Table 8.8 Environmental issues in the sugar industry as identified by regional industry extension officers.
Issue Northern Herbert/Burdekin Central Southern NSW WA
Erosion in replanting tick tick tick
Erosion in ratoon
Rodents tick tick tick
Nutrient runoff tick tick tick tick
Weed control tick tick tick
Acid sulphate soils tick tick tick
Pest and disease control tick tick tick
Fish kills tick tick
Reduced oxygen in rivers tick tick
Riparian condition tick tick tick
Salted soils and groundwater tick tick
Pesticide runoff tick tick tick
Elevated groundwater levels tick tick
River health tick tick tick tick tick tick

INTEGRATED SURFACE DRAINAGE, SEDIMENT AND NUTRIENT MANAGEMENT FOR FLOODPLAIN CANELANDS

A sugar industry case study in the Ripple Creek catchment, Herbert floodplain

John Reghenzani, Bureau of Sugar Experimental Stations (Herbert) and Christian Roth, CSIRO Land and Water (Townsville)

A considerable acreage of sugar cane grown in North Queensland occurs in regions of high rainfall that need effective drainage. The sugar industry seeks to remove excess water within a multi-objective framework recognising the need to minimise any impacts on the high value ecological resources of Queensland (e.g. World Heritage Rainforest, Great Barrier Reef Marine Park, estuaries and fish habitats).

Industry need for integrated drainage and management plans has prompted the Sugar Research and Development Corporation, Bureau of Sugar Experiment Stations and CSIRO Land and Water to work with industry to provide both productivity and environmental outcomes.

The Herbert region has a pattern of less productivity in high rainfall years with delayed recovery (Figure 8.22). Productivity was further reduced after a succession of wet years. Gross sugar income in the Herbert was $141.9 million less in 2000 than in 1996. The cumulative effect of four recent successive wet years has placed a tremendous strain on farm profitability with flow-on effects to regional businesses and communities.

Productivity (tonnes cane/ha) for the Herbert and for Queensland compared against Ingham rainfall (mm).

A series of key practices and activities has been confirmed as delivering the multi-objective production and environmental outcomes that the cane industry is seeking.

These activities are based on a strong partnership between industry and science. The key ingredient for success has been the willingness of cane farmers to link their concerns for increased productivity and reduced environmental impact. Farmers are adopting techniques identified through research, trials and monitoring, ensuring a productive and sustainable future for the cane industry and for the ecology of the Herbert floodplain.

Thick growth of Pangola grass planted on the right bank by the property owner, acts as a filter strip for runoff from the field and protects the drain bank, while the unprotected left bank erodes.

HORTICULTURE

National perspective

Australia produces a diverse range of annual and perennial horticultural crops, including vegetables, fruits and nuts, and has a well established and expanding viticultural industry. About 100 crop types are produced over more than 80,000 enterprises. The products are mostly used as fresh vegetables (e.g. beans and peas, onions, lettuce and carrots) and fresh fruit (e.g. bananas, apples, pears, peaches and oranges). Some are processed as frozen (peas, beans) or canned (pineapple, peaches), dried (sultanas, apricots) or made into beverages (e.g. wine and fruit juices).

The horticultural industry is distributed across a wide range of environments, but is primarily restricted by access to irrigation water, quality soils and topography. Major production areas are concentrated in fertile regions with high annual rainfall or abundant water for irrigation (Figures 8.24, 8.25). Vegetable production is highly concentrated close to major towns and cities, where domestic water supplies are used.

Distribution and density of perennial horticultural crop production (excluding viticulture). Distribution and density of annual horticultural crop production.

In 1997, equal areas of annual (mostly vegetables) and perennial (mostly fruit) crops were grown (~136,000 hectares) with the major ones shown in Table 8.9. In 1997, these products were valued at $1,905 million for the annual and $1,719 million for the perennial crops. Much of this production was grown on 164,000 hectares of irrigated land, using 1,640 GL of irrigation water and an average return of $590 per ML of irrigation water.

In 1998/99, Australian horticulture employed more than 93,000 people across 13,865 properties and generated an average farm income of $59,000 for fruit growers and $44,000 for vegetable growers.

Table 8.9 Gross area, volume and value of production of horticultural crop groups.
Crop group Area (ha) Production (tonnes) Value ($m)
Annual Perennial Annual Perennial Annual Perennial
Beans & peas 18 040 - 83 260 - 74.6 -
Brassicas 13 910 - 181 730 - 152.6 -
Cucurbits 9 340 - 116 910 - 74.9 -
Leaf vegetables 6 040 - 160 120 - 115.8 -
Melons 7 710 - 163 370 - 91.2 -
Nurseries 4 670 - N/A - 378.2 -
Onions & garlic 5 630 - 205 070 - 107.7 -
Peppers 1 880 - 32 220 - 40.6 -
Potatoes 45 450 - 1 393 660 - 489.3 -
Root vegetables 9 880 317 930 - 177.1 -
Sweet corn 5 430 - 64 790 - 26.5 -
Tomatoes 8 830 - 393 120 - 176.9 -
Asparagus - 2 140 - 7 884 - 37.5
Bananas - 11 610 - 199 580 - 216.6
Berry fruit - 1 624 - 13 140 - 68.4
Citrus - 30 400 - 645 260 - 391.8
Nuts - 19 750 - 23 440 - 101.9
Pome fruit - 18 690 - 940 470 - 513.0
Pyrethrum - 740 - 590 - N/A
Stone fruit - 26 910 - 151 824 - 216.2
Tropical fruit - 24 710 - 186 370 - 174.0
Total 136 810 136 574 3 112 180 2 168 558 1 905.4 1 719.4

N/A data not available

Source: Australian Bureau of Statistics 1997.

Most horticultural products are aimed towards the Australia's domestic markets, with less than 20% being exported. At least a third of the harvested asparagus, Chinese cabbage, strawberries and cauliflower are exported. In 1996/97, export earnings totalled $577 million and were dominated by citrus.

Productivity and sustainability: key findings

The Audit in partnership with the Horticulture Research and Development Corporation commissioned and published an assessment of Australia's diverse horticultural industries (HRDC & NLWRA 2001).

Improved environmental performance is under way across all crop groups with industry changes being driven by:

Not all crop groups and regions are progressing at the same rate, with the larger professionally managed groups (e.g. Queensland Fruit and Vegetable Growers) being typically further advanced than others. However the process of cultural change and improved environmental performance is evolving. Strong signals for improved environmental management from the marketplace or from legislation are not common. As these signals strengthen, incentive for greater grower adoption will increase. Weakness in environmental performance relates to:

Perennial crop groups are generally better prepared for improved environmental performance than annual crop groups.

FARMCARE AND SUSTAINABLE FRUIT AND VEGETABLE PRODUCTION IN QUEENSLAND

Queensland's fruit and vegetable producers have taken a proactive approach to responsible environmental management and sustainable development. Through its Environment Program, Queensland Fruit & Vegetable Growers Ltd has played an important role facilitating industry activities.

Our achievements to date include the development of the Farmcare Code of Practice for Sustainable Fruit and Vegetable Production in Queensland. Our Code of Practice was launched in 1998 following two years of intensive work collecting ideas on environmental best practice from over 500 growers and a number of other horticultural and environmental specialists. Farmcare provides guidelines for the sound management of land and soils, water, biodiversity, air, noise and waste and integrated crop management. By following the Code of Practice, growers are able to demonstrate their due diligence under the Environmental Protection Act 1994 (Qld).

Farmcare has been distributed to all fruit and vegetable growers throughout Queensland and to many stakeholders in the horticulture industry as well. A total of 8,000 copies have been distributed to date and Farmcare has recently been made available in CD-ROM format. To maximise awareness and adoption, the code of practice was launched by the Queensland Environment Minister and has been actively promoted at field days, workshops, commodity conferences and in industry journals. Farmcare training has also been incorporated into the natural resource management module of the Futureprofit in Horticulture integrated workshop series. Adoption of Farmcare practices is understood to be very high across all commodities.

The code of practice would be highly applicable and relevant to horticultural production systems across Australia and strong interest in Farmcare has been shown in other States, particularly in Victoria and New South Wales.

While the Farmcare Code of Practice provides valuable guidelines for fruit and vegetable growers, the Queensland horticulture industry still faces serious environmental challenges. Ongoing research, management innovation and commitment will be required to:

Optimising grower access to information about environmental issues and management options and establishing processes to monitor and report industry progress towards sustainability will also be important.

To address these needs and build on our successes with Farmcare, and to maintain momentum towards a more sustainable fruit and vegetable industry in Queensland, Queensland Fruit & Vegetable Growers Ltd conducted an Environment Forum in June 2000 with financial support from the Sustainable Industries Division of the Queensland Environmental Protection Agency.

Participants in the forum included representatives from most commodity groups in Queensland Fruit & Vegetable Growers Ltd and other stakeholders in the horticulture industry. The aim of the forum was to consider emerging opportunities for environmental management in Queensland's horticulture industry and to chart out future directions for Queensland Fruit & Vegetable Growers Ltd in facilitating the sustainable development of the industry. Queensland Fruit & Vegetable Growers Ltd then conducted meetings in growing regions across the state to seek feedback on, and support for, the action plan developed at the forum.

The 2000 Environment Forum and regional meetings were highly successful. Growers across Queensland demonstrated a strong interest in environmental issues and recognised the need for continual improvement in environmental management.

In response to this feedback, Queensland Fruit & Vegetable Growers Ltd now aims to expand its environment program. Investigating the application of Environmental Management Systems in horticulture was identified as a key priority. A case study has been established with banana growers in North Queensland to trial the use in horticultural operations of the AS/NZS ISO 14001 standard for Environmental Management Systems. Case studies in other growing regions and commodities are also proposed. Should the case studies show that Environmental Management Systems provides a useful framework for growers and delivers improved environmental performance, Queensland Fruit & Vegetable Growers Ltd will develop a program to support and facilitate widespread adoption of this approach.

Queensland Fruit & Vegetable Growers Ltd hopes to attract a number of co-investors to support other components of an expanded Environment Program, including:

Through its Environment Program, Queensland Fruit & Vegetable Growers Ltd aims to continue to support its members in their commitment to meet the challenges of a greener future. In our work, we will focus on developing a thorough understanding of the environmental impacts and risks of horticulture in Queensland; tools and strategies that assist growers to protect the environment; and methods for monitoring and reporting our progress towards sustainability.

Image of Fare Care manual

Research

Much industry-sponsored research is directed at soil issues including:

Integrated pest and disease management research is also in progress for the larger horticulture industries. Other areas of research include: spray management, waste disposal, and research of water, salt, salinity and riparian issues within horticultural catchments.

Industry development and sustainability

The horticultural industry is generally ahead of other industries on quality assurance and equal with other industries for environmental management practice. However, its fragmented and multi-commodity nature creates barriers for introducing environmental initiatives. Variation between State legislative requirements inhibits a national approach to better environmental performance. This is not confined to horticulture and is a key issue across all commodities and their support agencies.

Implementing indicators to assess progress towards sustainable environmental management requires a substantial change among managers. Low grower membership of industry organisations is a limitation, creating difficulties for promoting industry-wide changes in practice.

Future industry expansion will be constrained by access to viable markets rather than by environmental limitations. Although accountability for food safety and environmental compliance will be increasingly important to future markets, the complexity of industry organisational structures inhibits close liaison and coordinated planning.

Access to resources (especially water) is considered the key industry risk. However the relatively high water use efficiency of many horticultural crops, compared with other irrigated agriculture, means that horticulture is well-placed to compete for increasingly expensive water entitlements.

Future industry expansion will be based on market requirements and access to water resources. The scale of horticultural investments is likely to increase in the future, as technology and plant breeding become more integrated with consumer markets and supply chains serving domestic and export markets. Given that the existing horticultural industry is only equivalent in total area to the Australian Capital Territory, land is not expected to be a limiting factor. Wherever expansion does occur, it will probably be achieved through the re-allocation to horticulture of existing agricultural land rather than clearing of new land.

Technology will be increasingly important to expansion of horticultural industries by providing rapid access to information on markets and innovations, and assistance in farm management and environmental practice.

DAIRY INDUSTRY: DAIRYING FOR TOMORROW

Dairy regions across Australia

National industry profile

Australian dairy production systems are dominated by pasture grazing with herds also receiving grain and fodder supplements. With the exception of inland irrigation schemes, dairy pastures depend heavily on natural rainfall, although in most regions at least some supplementary irrigation is now being used. Dryland dairying areas are mainly located in the high rainfall, coastal and adjacent areas (Figure 8.26).

Number farms dairy per statistical local area

In 1998/99, over 60% of Australia's dairy farms (Figure 8.27), dairying herds and milk production were located in Victoria. Fourteen percent of the national dairy farms were located in New South Wales, 12% in Queensland, 6% in Tasmania, 5% in South Australia and 3% in Western Australia. Over 34,000 people are employed on 13,900 dairy properties.

During the last 25 years, the number of dairy farms has declined consistently (from around 30,630 in 1974/75 to 13,880 in 1999/2000); the size of the national dairy herd has remained reasonably constant. The volume of milk produced has increased strongly to over twice that produced in 1980/81 (Figure 8.28).

Milk is produced for direct human consumption (market milk) and for the production of dairy products (manufacturing milk). The increased production of milk in Australia (Figure 8.28) has led to strong growth in the manufacturing milk sector of the industry (Figure 8.29), fuelled by increasing domestic consumption of milk based products and increased export sales. Approximately 18% of total production is used for market milk and 82% for manufacturing (~8.9 billion litres). About two-thirds of the dairy products from manufacturing milk are now exported.

In 1999/2000, 10.8 billion litres of milk were produced, with a gross value of $2,853 million, of which $1,991 million was derived from the manufacturing milk sector (Figure 8.29).

In the period between 1979/80 and 1999/2000, the gross value for manufacturing milk more than doubled in constant dollars, but the value of market milk remained roughly constant in real terms.

Trends in number herd size, milk production and dairy farms. Change in milk production Australia.

Industry deregulation

During the 1980s and 1990s, Commonwealth and State governments regulated milk production, fixing a price for a guaranteed amount of milk to be supplied for direct consumption of market milk. Manufacturing milk was sold at an unregulated price (generally well below that for market milk) and produced products such as cheeses and milk powders.

From 1 July 2000, the regulations in each State were removed, introducing a free market for the supply of all milk. Farmers relying on the sale of premium priced market milk, were faced with a severe and immediate challenge on farm profitability. To assist the industry during this transition, the Commonwealth government introduced the Dairy Industry Adjustment Package.

In the same way, Australian dairy manufacturing companies are now also restructuring, adapting their operations to remain internationally competitive.

Australian dairy industry survey 2000

With the support of the Australian Dairy Farmers Federation, Australian Dairy Products Federation, Dairy Research and Development Corporation and the Audit, over 1800 of Australian dairy farmers (representing all dairying environments), were interviewed by phone to develop regional perspectives on:

From this survey, a picture of the 'average' dairy farm and farmer was developed (see box).

The average Australian dairy farm

(assembled from across the eight dairy regions of Australia)

Regional dairy industry profilesDairy regions

Production variation

Dairying farms are found in eight regions of Australia (see Figures 8.30), from subtropical areas in the north to cooler temperate regions of southern Australia. On-farm statistics differed between regions (Table 8.10 and Figure 8.30).

Milk production by dairy region.
Table 8.10 Dairy region production statistics.
Region Milk area
(ha)		 Stocking rate
(cows/ha)		 Stocking rate
(cows/farm)		 Production
(L/cow)
West Victoria dairy 143.4 1.6 226 4 323
Gippsland dairy 97.0 2.0 192 4 299
Murray dairy 112.5 2.2 207 4 702
Dairy Industry Development Company 110.8 1.7 159 4 886
Subtropical dairy 131.5 1.4 137 4 080
Dairy Tasmania 112.8 2.0 219 4 013
Dairy Western Australia 199.1 1.1 200 5 489
Dairy South Australia 143.8 1.8 188 5 398

Irrigation practices

The dairy industry has a heavy industry reliance on irrigation to boost pasture and fodder production (Figure 8.31):

Where flood irrigation is used, 75% of farm of the farm is irrigated, averaging 6.1 ML water per ha, and 2.6 ML/cow. On average, 80% of flood irrigated farms have a 'tail-water' re-use system and 95% have farms that are at least partly laser graded; 60% have laser graded more than half of the farm.

Where spray irrigation is used, 16% of farm is irrigated, averaging 4.3 ML water use per ha, and 0.9 ML/cow.

Expenditure on feed supplements (Figure 8.32) and fertilisers (Figure 8.33) is on average high. The quantity of feed supplements fed per cow varies between regions. Expenditure on fertilisers varies substantially both within and between dairying regions.

Table 8.11 Irrigation statistics for in dairy industry regions.
Region % of farms
irrigating		 Average area
irrigated (ha)		 % of irrigating
farms using
flood
irrigation		 % of irrigating
farms using
spray
irrigation		 Average
irrigation
water
application
rate (ML/ha)		 Average
irrigation
water usage
rate (ML/cow)
West Victoria dairy 25 34 16 89 4.5 0.9
Gippsland dairy 29 60 58 53 4.1 1.3
Murray dairy 92 98 96 10 6.0 2.6
Dairy Industry Development Company 57 49 5 98 4.5 1.4
Subtropical dairy 62 29 2 100 4.5 0.9
Dairy Tasmania 62 45 2 99 2.7 0.5
Dairy Western Australia 42 41 92 13 9.5 2.1
Dairy South Australia 71 46 27 86 5.4 1.3
Australian average 57 64 49 56 5.3 1.9
Irrigation on farm area and use (%) Purchased feeds. Fertiliser expenditure.

Dairy industry's attitude to resource degradation

Nationally, around 50% of dairy farmers surveyed considered dairying in their regions was having minimal impact on land and water degradation. Over 30% considered 'environmentally friendly farming' in their regions would reduce farm profits. These were fairly consistent results across all regions (Figure 8.34).

Environmental attitudes representative of a cross section of the dairy industry.

Recognising and responding to resource challenges

Soil management

The health and condition of dairy farm soils is vital for feed production and for minimising any off-farm impacts from farming activities. The national survey (Figure 8.35) indicated a strong awareness of soil health issues by farmers, and when recognised, they responded by adopting best management practices to contain or overcome them (see descriptions below). However, with 28% of farmers reporting no land management problems there is a question as to whether all soil health issues are recognised by farmers.

Recognition of local soil loss a as degradation issue

78% of those with wet soils use 'on-off' grazing, 76% do not graze wet areas.

90% of those with acidity problems soil test for soil pH; 83% apply lime.

73% of those with poor soil structure adopt conservation tillage; 72% deep rip and 73% changed their grazing management.

91% of those with soil erosion risks have permanent pastures; 84% avoid cultivation at high-risk times; 69% adopt conservation tillage and revegetate.

80% of those with irrigation-induced salinity installed drainage; 70% adopted improved irrigation practices.

Weeds invasion and their management were also given high priority by the industry, which supports concerns listed by the sheep/wool and beef cattle industries.

Effluent management

High concentrations of waste are generated where dairy cows congregate in high numbers (e.g. around milking sheds).

Pond systems are the most common form of effluent management (54%), while 27% of farms use a sump and dispersal system.

Percent of farms with effluent management systems

Vegetation and waterway management

The ability of dairy farms to support native vegetation and wildlife varies between regional environments and with farming systems. However, the management of any remnant native vegetation, creeks and stream banks can enhance the property's contribution to biodiversity. Well-maintained waterways can also help minimise potential impacts off-farm.

A number of these activities provide broad benefit to the community, possibly ahead of benefits to the individual who must invest time and money in the works and their maintenance.

Fencing remnant vegetation and waterways, and revegetating was associated with having a farm plan, being a member of a Landcare group, having a positive expectation for a future in dairying and being younger.

Future options

The level of investment that farmers are prepared to make in their properties is influenced by a number of factors.

To improve farm productivity, farmers nominated better pasture management, more use of fertilisers, enhanced irrigation and improved dairy milking sheds. Planting more trees was seen as the single most beneficial means to improve the environment.

Dairy conclusions

The Australian dairy industry is vital to the national economy, providing domestic milk and dairy products and valuable export earnings. Dairying also generates considerable regional employment and economic activity. It is undergoing rapid restructuring through milk market deregulation, but the industry considers itself to be viable in the long term.

Dairying is an intensive grazing industry, centred mainly in higher rainfall catchments, and irrigation areas, which necessitates high levels of environmental management. Water is a key resource input and as a consequence, the industry will seek to increase their participation in the design and implementation of regional, catchment and waterway management to responsibly contribute to regional environmental needs.

The industry also seeks sustainable growth into the future. To achieve this it must simultaneously optimise production, profitability and environmental benefits and outcomes.

Australia's dairy industry is committed to adopting best management practices and modern decision support tools to recognise and resolve problems and to achieve the synergy required to build a greater industry capacity.

Through the Audit's partnership with the Australian dairy industry, greater awareness of industry and natural resource management issues and knowledge gaps were exposed. These new findings will now be used to frame and implement national and regional strategies and action plans including more targeted research, development and education. The strategies will resolve regional issues within the industry and deal with national natural resource management risks. It will focus on:

As the dairy industry intensifies to meet the challenges of deregulation, it is important that natural resource management issues are incorporated in on-farm development. Support to incorporate natural resources considerations at the design stage is imperative.

WHOLE FARM PLAN PAYS DIVIDENDS

Using farm plans to increase production

  • Paul & Nicole Clarke
  • Eddie & Lillian Clarke
  • Farming at Roelands, 15 km north-east of Bunbury, Western Australia
  • 150 ha dairy farm plus 40 ha run-off block
  • 53 ha flood irrigation
  • Milking 200 cows in a 12 double-up dairy
  • Developed a property plan to achieve increased production and a more sustainable management style.

Roelands Western Australian dairy farmer Paul Clarke has taken his dairy herd from 130 to 200 milkers in eight years without adding to his land holding and reckons he has 'another 100 cows to go' before he reaches maximum carrying capacity.

He singles out his decision in 1993 to develop a whole farm plan and acquire a detailed farm map that included contours and gradients, as the driver behind this dramatic growth in productivity.

Paul, who farms a 150 ha dairy farm and 40 ha run-off block in partnership with his wife Nicole and parents Eddie and Lillian, says the farm contour map made him 'look at his farm as he had never seen it before'.

'I just hadn't realised the levels in some of the paddocks, but the map showed us that we could create open drains to shift water that we previously had thought was impossible to shift without a huge amount of excavator work,' Paul says.

By referring to the contour map (Paul says there isn't a week that goes by, almost eight years later, when a family member does not refer to this map), they were able to make informed drainage decisions and approximately 1.5 km of open drains were installed.

'We were always going to address productivity by developing a better drainage system, but we estimate that we would have spent close to double the money using drainage pathways that we had incorrectly thought were the right ones, prior to the contour map showing us otherwise.'

The next phase in the farm's development was the establishment of a new dairy (more centrally located) and associated laneways, again taking into consideration the fall of the land and the associated soil types and the dirt excavated during the drainage program was put to good use in building up laneways.

But perhaps the most pronounced productivity gains came from the subsurface drainage program, introduced initially on a 10 ha plot in an area most prone to waterlogging.

Paul Clarke with wife Nicole and son Jack, of Roelands, Western Australia
Photo 8.3

At a cost of around $1,800 per hectare, the rationale is that the process is still cheaper than purchasing new land and in this case, produced an immediate doubling in the carrying capacity of that paddock, which was previously unusable most winters and with comparatively poorer quality pastures during summer.

By 1999, the Clarkes had applied the same principles to a second plot and see an ongoing subsurface drainage program throughout their 53 ha of irrigation as the key to achieving carrying capacity targets.

The other strategy as it relates to achieving target stocking rates, is a complete review of the current flood irrigation practice (incorporating re-use of effluent at a 1:10 ratio), but with the intention to convert to centre pivot in order to use less water and grow more grass.

A centre pivot system should also reduce the amount of water draining off the property, which currently travels about 1 km and flows into the Collie River. Rate of flow varies considerably throughout the year and has been monitored for salt content, which was higher in the initial stages of the subsurface drainage program but has dropped to virtually negligible levels now.

And while salt by comparison is a 'lesser' issue, Paul admits to being surprised at discovering just how salty their irrigation water is and was quick to embrace a South West Irrigation initiative to survey the Collie River district using Electro Magnetic technology to identify saline areas and surface soil types.

Paul Clarke (right) with his father Eddie and son Jack, of Roelands, Western Australia
Photo 8.4

The resulting salinity farm maps have been an invaluable decision support tool to identify areas of salt build up and differentiate these from areas with deep water table levels that in most instances would not respond well to soil and drainage treatment.

'What we have been able to do with that information is make sure our dollars are spent wisely on renovating areas that have the capacity to improve and leave other potential trouble spots as areas for annual pastures.'

Buoyed by the success of the strategies employed so far as part of their whole farm plan, the Clarkes are now committed to introducing subsurface drains to all remaining irrigated areas on the property.

Paul believes once he has achieved this and made the conversion to centre pivot irrigation, he will be able to realise his ambition of milking 300 cows on the existing land holding.

IRRIGATED AGRICULTURE Australia's major irrigation areas.

Irrigation offers opportunities for agricultural intensification, greatly enhanced yields and the substitution of low value crops with higher value enterprises. Without irrigation, a significant proportion of Australia's agricultural industries would either not exist or be greatly diminished

Irrigated agriculture occupies about 1% of Australia's agricultural land. Just under half of the water applied is used to irrigate pastures and fodder crops (~8,000 GL), particularly in Victoria and New South Wales. About two thirds of Australia's agricultural production from irrigation is derived from the Murray - Darling Basin, producing rice, cotton, cereals, soybean, fruit and vegetable crops (see Changing face of agriculture section of this report). Outside the Basin, irrigation is used mainly for dairy pastures, seed, fodder, cereal and horticultural crops and sugar cane production.

The gross value returns from irrigated agriculture in 1996/97 were estimated to be $7.3 billion, or 26% of the total gross value of production derived from Australian agriculture (ABS 2000).

In the 40 years since 1955, the area of irrigated agricultural land in Australia has quadrupled to 2.06 million hectares. In 1996/97, a total of 18,000 GL of irrigation water were applied (NLWRA 2001a).

Irrigation water comes as either regulated or non-regulated diversions of water from rivers, dams and lakes, ground water reserves and from surface harvested water stored on farms.

Irrigation scheduling (the frequency and volumes of water applied at each irrigation event) attempts to match water application with plant water requirements. The amount of water that plants require is determined by interactions between the crop being irrigated, the soil type (particularly its water holding capacity) and local weather conditions experienced during the growing season.

Water can be applied by many different irrigation techniques including:

At the farm scale, records of water volumes applied are either poorly documented or inaccessible. The box (p. 299) provides average data sourced from recent farm surveys, and indicates that in any irrigation region, water applications vary appreciably. Rice crops, because they pond water for significant times, use the most water per hectare.

A national framework of terms and definitions for water use efficiency in Australian irrigation has been determined (Barrett Purcell & Associates 1999). Further work on gaining acceptance of this framework is under way (Aquatech Consulting and Naturally Resourceful).

Surveys reporting the volume of irrigation water

Recent farm surveys reporting the volume of irrigation water applied to different land uses in Australia

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Dominant land use Irrigation region (State) Year Mean water applied (ML/ha) Reference
Citrus Riverland (South Australia) 1996/97 11.5 1
Sunraysia (Victoria) 1996/97 10.2 1
Murrumbidgee (New South Wales) 1996/97 7.9 1
Queensland survey 1997 7.6 2
Wine grapes Riverland (South Australia) 1996/97 8.3 1
Sunraysia (Victoria) 1996/97 7.2 1
Murrumbidgee (New South Wales) 1996/97 7.1 1
Queensland survey 1997 3.5 2
Banana Queensland survey 1997 6.7 2
Pineapple Queensland survey 1997 0.7 2
Stone fruit Queensland survey 1997 5.2 2
Avocado Queensland survey 1997 7.5 2
Vegetables Queensland survey 1997 2.3 to 5.5 2
Potato Riverland / Sunraysia 1996/98 3 to 5 3
Beef/sheep Kerang/Cohuna (Victoria) 1995/96 4 4
Murray Catchment (New South Wales) 1996/97 3 5
Murrumbidgee (New South Wales) 1996/97 3 5
Central West (New South Wales) 1996/97 3.9 5
Far West (New South Wales) 1996/97 3.6 5
Barwon (New South Wales) 1996/97 4.3 5
Dairying Shepparton/Central Goulburn (Victoria) 1994/96 7.8 6
Murray Valley (Victoria) 1994/96 9.1 6
Rochester/Campaspe (Victoria) 1994/96 9.4 6
Torrumbarry/Pyramid Hill/Swan Hill (Victoria) 1994/96 9 6
Southern Riverina (New South Wales) 1994/96 7.8 6
Mixed crops and pasture Murrumbidgee (New South Wales) 1995/96 7 4
Kerang/Cohuna (Victoria) 1995/96 4.6 4
Rice Murrumbidgee (New South Wales) 1995/96 13.7 4
Murray Catchment (New South Wales) 1996/97 11.9 5
Murrumbidgee (New South Wales) 1996/97 13.9 5
Murrumbidgee (New South Wales) 1997/99 13.5 7
Cotton Central West (New South Wales) 1996/97 7.3 8
Barwon (New South Wales) 1996/97 4.9 8
Far West (New South Wales) 1996/97 12.8 8
Namoi Valley (New South Wales) 1998 3.5 to 6.2 9
Macquarie Valley (New South Wales) 1998 6.9 to 7.8 9
Darling Downs (Queensland) 4.4 9
Lockyer Valley (Queensland) 4.4 9
Emerald (Queensland) 3.4 10
Industry survey (Queensland) 1996/99 2.5 to 8.1 11
Sugar cane Atherton Tableland (Queensland) 11.5 12