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FACEY GROUP NEWSLETTER April 2014 www.faceygroup.org.au Phone (08) 9888 1223 The Facey Group is an Association incorporated in Western Australia comprising broadacre farm businesses based in and around the Shire of Wickepin. The Group is committed to improving the economic, social and environmental sustainability of its members. It aims to access and provide knowledge to its members that will assist them in improving the profitability of existing enterprises while identifying and evaluating profitable additional enterprises. Photo by; Jill Tilbrook The Facey Group would like to acknowledge and thank our valued sponsors Agrimaster, AWB, Landmark, Ballard Seeds, Wickepin Rural Services, Australian Grain Technologies, CBH Group, CSBP, Tincurrin Rural Services, Pacific Seeds, Farmanco & Jilakin Downs

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Page 1: Facey Group AGM · Web viewWhat we are seeing is the relative cost of risk in owning grain within specific port zones (mostly well before the selling price or date is known) flow

FACEY GROUPNEWSLETTER

April 2014 www.faceygroup.org.au Phone (08) 9888 1223

The Facey Group is an Association incorporated in Western Australia comprising broadacre farm businesses based in and around the Shire of Wickepin. The Group is committed to improving the economic, social and environmental sustainability of its members. It

aims to access and provide knowledge to its members that will assist them in improving the profitability of existing enterprises while identifying and evaluating profitable additional enterprises.

Photo by; Jill Tilbrook

Bring on the Rain!

The Facey Group would like to acknowledge and thank our valued sponsors Agrimaster, AWB, Landmark, Ballard Seeds, Wickepin Rural Services, Australian Grain Technologies, CBH Group, CSBP, Tincurrin Rural Services, Pacific Seeds, Farmanco & Jilakin Downs

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Welcome...

ContentsFacey Group AGM.......................................................................................................................................2

From the Executive Officer’s Desk...............................................................................................................3

From The SAC's Desk...................................................................................................................................4

Introducing The Facey Group Technical Field Officer.................................................................................5

Salt Tolerant Lucerne - Ballard Seeds..........................................................................................................5

The Wheat Opportunity - RABOBANK.........................................................................................................7

The Future of Farming - RABOBANK............................................................................................................8

Shire of Wickepin........................................................................................................................................9

Dryandra Country Art, Food & Wine Trail - Mothers Day Weekend....................................................9

2014 Anzac Day Service.....................................................................................................................10

Factors Affecting Port Price Differentials - CBH.........................................................................................11

China Dominate Australian Barley Exports - CBH......................................................................................13

Tech Talk - For The Tech Savvy!................................................................................................................14

App of the Month..............................................................................................................................14

Farmer of the Year.....................................................................................................................................15

Dates for the Diaries..................................................................................................................................15

FACEY GROUP AGM

Facey Group AGM

Tuesday 15th April

6pm

Wickepin Community Centre

RSVP to [email protected] or 9888 1223 for catering purposes.

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FROM THE EXECUTIVE OFFICER’S DESK

Welcome to members, partners and supporters of the Group for the first edition of the Newsletter for the year.

Not to sound like a broken record but what a busy start to the year!! I trust this newsletter finds you all rested after a busy harvest period and ready to tackle what is hopefully another productive year in 2014.

2013 was the biggest year on record for the group … project load wise which prompted the Committee to make the decision to hire a fourth staff member to join our team. The position created was for a Technical Field Officer, whose primary role will be to work closely with Sarah and the Cropping Group to achieve the following -

Assisting in the development and implementation of projects Assisting in the coordination of our Cropping & NRM specialty groups Monitoring, recording and communication of data gathered from sustainability and

productivity trials and demonstrations Interacting with farmers daily to ensure the R D & E function of the Facey Group

remains robust, relevant and useful to our members and wider industry. Liaising with researchers, government agencies and industry representatives to

ensure the activities of the group deliver on agreed outcomes. Assisting in the facilitation of an array of field days, workshops and seminars

The TFO role will initially be a two year contract focussing on the in the paddock assessments and trial monitoring required for some of our new projects. Having the extra person will also free up some of Sarah's time to be more proactive about applying and attracting funding to benefit our members and address local issues.

The selection committee was overwhelmed with the high calibre of applications we received for the role, deciding to interview 5 potential candidates of which our first choice candidate Sheree Blechynden accepted the role. Sheree will introduce herself later in this newsletter and feel free to stick your head in the office to meet the newest addition to our team.

As you will see in the up coming events calendar there are some important dates to remember after seeding namely our Super Succession Planning Workshop and "Food for Thought" presented by our Women in Agriculture Committee, please put these dates in your diary now as both have limited tickets and I would hate for you to miss out.

I hope the rain comes when it is supposed to over the coming weeks and seeding is stress free for you all.

Please don’t hesitate to shoot me a text or email while on the tractor if there is any event or activity you would like the group to bring to the area over the coming months, your priorities set our direction so give it some thought and let us know.

Happy Seeding.

Felicity Taylor

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FROM THE SAC'S DESK

“Farming 4 twenty-14”Sarah Hyde, Facey Group

The Facey Group annual Trials Review event took place on Thursday 6th March 2014 in Wickepin held as part of the GRDC Regional Crop Updates and sponsored by Major Sponsors Summit Fertilizers. Following a bumper season locally and a new format for the event it was pleasing to see over 85 attendees present. The event kicked off with the screening of WA produced film ‘Harvest’ by Graeme Carleton – a positive reflection on the past season. From fertilizer, herbicides, on-ground technologies and in season tools through the supply chain, to grain marketing and planning for the next season and some incentive to get young people involved with agriculture this year’s event had a bit of everything.

Frost research locally remained a key talking point, presented by GRDC Seed of Light 2014 recipient Dr. Ben Biddulph. With some distinct results linked to stubble loadings and temperature the frost work continues within the region in 2014 – looking at other farming systems to improve crop tolerance to frost.

Particular interest was received by Tamara Stretch’s, DAFWA presentation on the Australian Export Grains Supply Chain. With the supply chain being the largest cost of production (however WA being the cheapest within the Australian supply chain), Tamara reiterated that we need to stay competitive and better understand the supply chain costs.

Shaun Wittwer, Facey Group member and local farmer gave the attendees a practical overview about variable rate technology. Shaun was able to relate farming back to personal experiences and explained the way that they have set up VRT in their farming system – it doesn’t have to be that hard.

Planfarm Grain Marketing, Jerome Critch took us through scenarios of historical pricing to better make decisions – take the emotion out of grain marketing. While each grower’s situation for grain marketing is different, Jerome offered some food for thought on how to get the best out of those decisions.

Mark Gherardi , Summit Fertilizers - event major sponsor’s highlighted results from current trials being undertaken in the state and use of P fertilizer within the system. Craig White, Bayer Cropscience reiterated the key management points for using Sakura within the system and reviewed the previous 2 seasons since its release in WA. Glenn Cook, Bureau of Meteorology gave growers an insight into weather predictions and understanding the probabilities, while also enticing opportunity for more localised weather records.

Rabobank Client Council was introduced to the attendees by Steve Kelly and an impacting short film was shown as part of the initiative to engage the youth and encourage young professionals into agriculture.

Richard Brake, Farmanco had the hard gig of the day as last speaker. Following a bumper season of 2013 growers are questioning the agronomic and financial considerations to be made moving into 2014 and beyond.

Attendees enjoyed a sundowner following the Crop updates and feedback has been strong with many positive comments and optimism for the season ahead.

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For more information please contact the Facey Group office on 9888 1223.

INTRODUCING THE FACEY GROUP TECHNICAL FIELD OFFICER

Hi, I’m Sheree Blechynden, Facey Groups new Technical Field Officer.

I’m very excited to be part of the group and am looking forward to meeting and getting to know everyone involved.

As one of six of Shane and Rochelle Blechynden’s children, I grew up on a mixed crop and livestock farm next door in Pingelly, and I am excited to be back in town after living away for the last four years.

As a local kid, I went to Narrogin SHS, and from there moved up to Perth and completed my Bachelor of Science at UWA, with a focus on Environmental Science, a decision that was largely shaped by my country background.

After some overseas travel, I then found myself living up in Newman, working for a consulting company in environmental compliance, servicing all of BHP’s iron ore sites in the Pilbara. As much of a fantastic opportunity and challenge it was, I decided the mining game wasn’t for me, and with this new found knowledge of what I perhaps didn’t want to do, I decided to move towards working in agriculture.

Over the next couple of years I am looking forward to getting to know a lot more about cropping in the region, and to being involved in a variety of trials and demonstrations. I would also like to utilise this role and the opportunities it brings with it to learn more about NRM, and how it can be applied to the region and its farmers in a relevant and profitable way.

Most of all however, I am looking forward to once again being part of the community.

SALT TOLERANT LUCERNE - BALLARD SEEDS

SALT TOLERANT LUCERNE PERFORMING WELL IN WA CONDITIONS

"I am very impressed with both the salt-tolerance and overall performance of Silverosa Lucerne" is an often repeated assessment of this new variety.

Dr Ian Kaehne, the breeder of Silverosa, notes "Silverosa was bred with the combination of extensive areas of salt affected soils in WA and the dominant land use on these soils, extensive grazing, foremost in mind. Consequently, as well as setting a new benchmark for salt tolerance, Silverosa has high grazing tolerance, high forage quality and long term persistence, supported by a broad spectrum of high disease resistance, and a leafy, finer stemmed and broad crowned plant type. Silverosa has a winter activity rating of 7 and high summer production."

Farmers from Esperance, the Great Southern and Eastern Wheatbelt have keenly sought this type of Lucerne to grow in areas affected by salinity or to arrest the seepage of saline subsurface water.

In late 2012 salt tolerant Silverosa Lucerne, based on Australian developed and patented Saltlander® technology, was released and is available from Ballard Seeds for 2014 sowings.

Silverosa extends the potential range of growing lucerne to soils twice as saline as currently tolerated by other lucerne varieties.

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Silverosa is adapted to all Australian lucerne growing conditions from cool temperate areas to the subtropics under both dryland and irrigation.

Growers' experience with Silverosa has focused attention on the extent and degree of salinization in Australian soils.

Silverosa was developed from plants selected for surviving and growing actively for years in field conditions too saline for other lucernes to establish, persist and survive, where soil conductivity was in the range of 15 - 20 ds/m (which is equivalent to about 9000 to 12000ppm or 170 to 220 mMol sodium chloride) Silverosa lifts the limits of lucerne growth from about one eight to one quarter of seawater and some plants of Silverosa persist in saline levels of about one third of seawater. (for comparison saturated saline saltpans are ten times more saline than seawater).

Silverosa should not be expected to survive in extremely saline areas. The key factor for growing lucerne in saline areas is long term persistence (most established lucerne will withstand short term saline shocks).

The plants in lucerne varieties differ genetically and as salinity levels rise it is expected that a lower proportion of Silverosa plants will survive.

Silverosa salt tolerant lucerne will make a significant contribution to meeting the challenges of salinity in Western Australia.

Contact Ballard Seeds in Narrogin for further information on 9881 5711 or email [email protected] to place your order now for spring and autumn sowings.

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THE WHEAT OPPORTUNITY - RABOBANK

EditorialMarch, 2014

‘The Wheat Opportunity’

- Growing Indonesian Consumption Driving Imports and Investment

Driven by economic growth and convenience, wheat consumption is on the rise in Indonesia.Wheat provides an economical and nutritious alternative to rice, and increased consumption could help Indonesia resolve its self-sufficiency target for paddy.

Given the current consumption rate, Indonesia could import more than 10 million tonnes per yearin the coming five years, placing Indonesia among the top three wheat importers in the world.In addition, growth in consumption of wheat-based products will come from both higher and lower income groups, driven by the growth of bakery products and food service chains. As a result of the demand surge, supportive regulatory environment and relatively lower prices compared to 2012/13, the outlook for the wheat industry in Indonesia is very positive and will be seeing investments across its entire supply chain.

This is an excerpt from Rabobanks recently released Industry Report titled

The Wheat Opportunity - Growing Indonesian Consumption Driving Imports and Investment

Please call your local Rabobank Branch on 1300 30 30 33 to obtain the full 7 page report.

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THE FUTURE OF FARMING - RABOBANK

EditorialApril, 2014

The Future of FarmingRural entrepreneurs must broaden their vision to

create a sustainable food supply

As our world population grows and lives longer, we rely on farmers to enable a sustainable food supply.

But farmers everywhere face five food production challenges that prevent them from producing more with

less resources, being sustainable and using innovative technology. These intrepid farmers are seeking

solutions. They are “Rural Entrepreneurs" and they are the future of farming.

Key Challenges for Farmers Around the World

Succession – how to enable the next generation of farmers

Sustainability – how to produce more food with less resources

Supply chain – how to balance the chain from “farm to fork”

Solutions – how to innovate and increase sustainable production

Social Media – how to provide information and connect consumers to farmers

Please call your local Rabobank Branch on 1300 30 30 33 to obtain a free copy of the 160 page book.

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SHIRE OF WICKEPIN

Dryandra Country Art, Food & Wine Trail - Mothers Day Weekend The Dryandra Country Art, Food and Wine Trail provides a great opportunity to invite friends and family to Wickepin to enjoy the wonderful Dryandra region and experience the great art, music, food and wines that are produced here.

The Shire of Wickepin has agreed to participate in the Dryandra Country Art, Food and Wine trail we need your help to make it a success. Planning is underway for stalls, displays and Devonshire teas centred around the Albert Facey Homestead area in the main street of Wickepin. We would love to hear from you or your community group if you are interested in getting involved with any of the following:

Art, craft or sculpture displays Devonshire tea at Albert Facey Homestead Market stalls (cakes, cup cakes, plants, vegetables, white elephant, etc) Art and craft sales (paintings, sculpture, mosaics, crafts) Plant sales (flowers, herbs, chrysanthemums, native tube stock etc) Plant a tree for your mother on the heritage walk trail.

A long table lunch is planned for Sunday 11th May at the Wickepin Town Hall with more details soon.

More information about the Dryandra Country Art, Food and Wine Trail is available on the Shire of Wickepin website at www.wickepin.wa.gov.au or Arts Narrogin on Facebook.

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2014 Anzac Day Service

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FACTORS AFFECTING PORT PRICE DIFFERENTIALS - CBH

Factors affecting Port Price Differentials

Over recent years we have seen an increasing number of growers question what the factors behind port price differentials really are.

This article summarises that conversation and covers each of the key market forces that marketers consider when pricing grain within a specific port zone. The grain market in WA is competitive and is well serviced, with 8 - 20 marketers buying grain at any point in time.

1. Size of crop

Marketers will consider the size of the crop relative to world stocks and likely demand profile and how this affects the cost of money loaned to buy the crop. The cost is approx. $1.40 per month (APW @$300/t) and will be factored into the grower bid.

2. Supply chain efficiency and slots available

Marketers will compete harder in a zone that has an efficient supply chain with a large monthly capacity to port, and more choice of access to stock because it takes the risk out of being sure a boat can be loaded. Once slots are filled for the year, growers who are left holding stock will have very limited marketing choices. A small parcel of grain without a slot to load will incur heavy interest costs and time based storage charges later in the season.

3. Quality of the crop

Where there are material quality differences between zone averages marketers will adjust prices to reflect the merchandising value of the grain coming out of that zone.

4. Customer demand (early or late)

If customers are buying early in the year competition will be stronger as marketers look to service the market, and churn their capital back into grower buying. If the demand is for late in the season marketers must factor the cost of money between the time of purchase and the time of sale into their grower bid. In a zone with multiple outlet options, (domestic, container and bulk) there will be greater competition for certain grains and grades which can drive exporting marketers to bid harder for the grain when they have shipping slots to fill.

5. Grower Selling Dynamics

Marketers will compete harder early in the season to ensure they are filling their harvest shipping slots. As grower selling increases and the size and quality of the whole crop becomes apparent marketers will be less competitive in their pricing.

6. Competitive Responses

A combination of the above factors and marketers positioning themselves in the market or needing to fill a shipping slot will often drive a short term spike in prices within a particular zone. Longer term moves like buying market share to break into a new market or to support an investment into infrastructure can be beneficial for growers, but growers should be mindful of this pushing risk or cost into their own

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businesses. An example of this is carrying grain on the farm or needing to build storage to service an alternative supply chain.

What we are seeing is the relative cost of risk in owning grain within specific port zones (mostly well before the selling price or date is known) flow through into what marketers are prepared to pay for grain within each zone. This is the free market at work and competition between marketers in wanting to own grain will mean that growers receive the most competitive bid on any given day.

CBH - Largest Grain Shipment

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CHINA DOMINATE AUSTRALIAN BARLEY EXPORTS - CBH

China dominate Australian barley exports

Changing consumer tastes in China can be thanked for an increase in demand for Australian barley, with approximately 3 million tonnes expected to be exported to CBH Group’s Chinese customers prior to next harvest.

With more Chinese drinking beer in recent years, China has overtaken the US as the world’s largest consumer of beer and as the Chinese government removed the subsidy for local farmers to grow barley, we have seen malting barley import demand rise to compensate.

Trevor Lucas, CBH Group’s Barley Trading Manager said traditional premium malting barley demand is steady, (approximately 1 million tonnes goes to China each year) and Western Australia continues to dominate this market, consistently supplying more than 50% of the total annual import demand.

“Chinese buyers seem comfortable paying between $20 - $30 per tonne premiums (above feed) for premium malting barley varieties, however demand tends to fall when premiums are above these levels,” he said.

Favoured varieties include Baudin, Hindmarsh and Buloke. Bass is a relatively new variety for Chinese customers such as state-owned Supertime Malting, but the feedback so far has been good.

According to Mr Lucas, much of the demand is driven because of low carry-inventory stocks and a less than favourable domestic crop in China, which was traditionally used to supply the local Chinese malting and brewing industry with low quality barley.

Subsequently the demand for Australian Fair Average Quality (FAQ) was the largest increased barley export segment; with over 1.2 million tonnes of FAQ sales used to replace the poor domestic Chinese crop.

This increase in demand for malting barley in China is not the only thing Australian barley growers should be thankful for; people are eating more red meat, which increases the need for feed grade barley.

“Traditionally China hasn’t imported Australian feed barley for stock feed, however due to a significant amount of corn rejections in the US and high priced American Sorghum, Australian feed barley has become feasible,” Mr Lucas said.

“We have seen imports of more than 600,000 tonnes of Australian feed barley this harvest, however whilst it is not anticipated this demand will be consistent, it will clearly provide support for Australian barley values when it happens again.”

CBH’s grower owned and controlled supply chain means WA has a significant freight advantage too. Shipping loads from Kwinana take only 13-14 days to reach China, compared with vessels from Canada which take 18 days, due to major issues getting grain to port.

This freight advantage is supported by the ability to provide consistent and adequate quality and a real connection with WA growers.

“Customers trust CBH and have confidence in the fact they are transacting with the Western Australian grower when buying barley through us.”

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“We are well placed to continue to dominate barley exports into the Chinese market, with strong long term relationships with all of our key end users, including brewers and malt houses,” Mr Lucas said.

“Our market dominance also allows us to be a price maker and ultimately provide the strongest bid, and return maximum value to Western Australian barley growers.”

TECH TALK - FOR THE TECH SAVVY!

App of the Month

iPaddock Yield

Born out of the need for practical tools for practical farmers, iPaddock Apps are the creation of WA Grain Farmer & Mechanical Engineer, Mic Fels.

iPaddock brings to you iPaddockspray & iPaddockyield, functional farmer focussed Apps designed to save you money, optimise your yields, improve productivity and increase your profits.

iPaddock Apps are easy to use for every skill level,

regardless of your App experience. They are fully hosted

on your device, with no requirement for internet access

other than for syncing devices, so they work, in the

paddock where you need them most.

Built, tried & tested in the real world, by real farmers.

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FARMER OF THE YEAR

Event details

Name: 2014 Australian Farmer of the Year AwardsDate: Wednesday 10th September 2014Location: Melbourne

Award description- Long description:

In its fifth year, the Australian Farmer of the Year Awards has quickly occupied its place as one of the showpiece attractions on the national events calendar.

With 11 award categories, the winner of each category automatically qualifies for the prestigious Australian Farmer of the Year award.

Hosted by Kondinin Group and ABC Rural this year’s dinner and award ceremony will be held in Melbourne on Wednesday September 10, 2014.

To nominate visit:www.farmeroftheyear.com.au

Cost:Join us at the Awards dinner and ceremony:

- Dinner tickets: $220 per person- Table: $2,000 for a table of ten

Contact details:- Sponsorship opportunities:

Stephanie ShepherdsonP: 08 6316 1364E: [email protected]

- Award information:Tanya BulatovicP: 08 6263 9189E: [email protected]

DATES FOR THE DIARIES

Tuesday 15th April - Facey Group AGM

Thursday 26th June - Sucession Planning Workshop

Wednesday 30th July - Women in Ag Event

Wednesday 17th September - Spring Field Day