Victorian Grains industry

The Drivers of Productivity GainImproved farming practices and technologies

No TilI

GM ?Robotics?Systems Mgt.????????

Farms and value of productionGrains 2011 (Neil Barr, Carole Hollier)

Only a fifth of farms have an EVAO of greater than $500,00. These farms produce over half of the value of grains.

ABARES research suggests large farms drive productivity and have capacity to uptake latest research and innovation.

Family income broadacre farms from farm and non-farm sources$25k-$100k EVAO: 1990-2007

Source: ABARE

٥ Unlikely to be generating sufficient income to invest, build risk reserves or support family without off-farm income.

٥ Family income sustained by off-farm income.

Family income broadacre farms from farm and non-farm sources

$100k-$200k EVAO: 1990-2007

Source: ABARE

٥ Farm income makes a significant contribution to family income.

٥ Non-farm income is a significant secondary income source.

Family income broadacre farms from farm and non-farm sources$200k-$400k EVAO: 1990-2007

Source: ABARE

٥ In ‘normal’ seasons these farms have generated a healthy farm family income with only limited supplementation from off-farm sources.

٥ The current run of dry seasons has cut severely into this income.

Family income broadacre farms from farm and non-farm sources$400k+ EVAO: 1990-2007

Source: ABARE

٥ Generate a volatile, but sustained high cash surplus.

٥ Impact of dry seasons is there, but less severe than in other segments.

٥ Suggests there is the capacity of many of these businesses to adapt to changing climate.

٥ Income is variable, but capacity exists to build resilience to cope with income variation.

Characteristics of top and average

Grains – average area operated (ha)

Source: ABARES

Source: ABARES

Characteristics of top and averageGrains – water use efficiency ($/100 mm rainfall/ha))

Farming for some is very profitable with acceptable risk levels

Number of large grain farms 2011(EVAO gt $500,000)

Market Segmentation - Victorian Grains Industry

5500 grain producers in Victoria

2500 with productivity intentions

FSV Grains in contact with 1500

80% with productivity intentions

800 with EVAO $500k +

FSV in contact with approx 75% direct

Advisory Sector

• Approximately 300 advisers in Victoria• Mix of retail and fee for service• Need to understand each firms business model

to tailor advice packages for their needs• Important to contextualise research• Build their capability and increase accessibility

of research• Work with all key businesses

Grower Groups

6 main grower groupsEach operate very differently and have

different capability and capacityHighlight opportunities for DEPI R&D that

can be demonstrated in paddock to members

Build capability of staff often through successful joint funding bids/collaboration

Capability Capacity

Understand capability and capacity to meet expected

milestones, contracts, and stakeholder expectations

Understand both staff capabilities and capacity to

deliver what is needed

Identify if there is a gap or mismatch

Also identify what future capabilities might be needed

to grasp emerging opportunities

Innovation and OpportunitiesKeys to

Innovation and productivity

Education

Access to Labour

Land use intensity

Farm Size

Off Farm Income

Adviser and Contractor use and availability

Farmer Health and Well Being

Opportunities maybe worth pursuing

Consumer technologyScouting through DronesRoboticsBig Data ie monitoring every seed and plantAgricultural engineering (Machinery)Extracting better value from capital tied up in land ownership