From the President of the NTCA

Members are optimistic as they position themselves for predicted future expansion in both our domestic and export markets. The NTCA remains strong, vibrant and vocal in lobbying for the rights of its members and it also maintains its unique position of having over 95% of the Territory’s cattle herd represented through its membership books.

I mistakenly believed that the past year would have sailed through without too much going wrong. We’ve been challenged on many fronts in the past 12 months and NTCA has initiated meetings with governments at all levels, both at home and in Canberra, to make sure the issues of greatest concern and importance to our members are kept at the forefront of influential minds.

Industry status

The pastoral industry maintained its status as the Territory’s third largest GDP earner in the NT. L ive cattle exports out of Darwin were up by 10 per cent, generating $180 million in export sales alone. The industry turn-over is heading towards $400 million directly, and bolstering the economy in regional areas.

In 2006, despite a slight downturn in national live export sales, cattle numbers shipped through the Port of Darwin rose to more than 230,000 head, which was considerably higher than last year. The Indonesian market continued to be the backbone of the live cattle export industry.

With 45 per cent of the total NT production destined for the export trade in Asia, the northern beef industry continues to focus on partnerships and programs to strengthen this trade.

We were grateful for opportunities during the year to inspect feedlot and market facilities in neighbouring countries and were able to build on our working relationship with their key industry players.

As an example, our Executive Director Stuart Kenny joined the Territory’s Primary Industry Minister Chris Natt at the official opening of the new Sabah Meat Technology Centre (SMTC) in October. The commissioning is expected to bring greater demand for top quality Territory livestock.

More recently, Stuart joined a government-organised trade mission to Vietnam that could soon see this former market re-opened as a profitable outlet for Territory live cattle and buffalo.

The feedback from valuable trips like these gives us confidence that we are heading in the right direction with our offshore relationship-building initiatives.

We congratulate to MLA and Livecorp on the joint program they have implemented to increase market development and promotion in key South East Asian trading outlets. We are continuing to work closely with our industry service providers MLA and Livecorp to achieve the best market outcomes for our members.

Selling cattle interstate has at times been difficult due to the ongoing drought conditions experienced by Queensland, New South Wales, and South Australia.

We look forward to a prosperous rainfall season in the southern and eastern states, with the hope that southern territory beef will again be in strong demand for the back-grounding and feedlot industries. 

ONGOING ISSUES FOR 2006/07

Drought conditions, the continuing unacceptable state of our beef roads, local government reform, new road speed restrictions, Occupational Health and Safety initiatives and national driver fatigue legislation. They’ve all been top priority issues for our members over the past 12 months.

Drought

Central Australian pastoralists continue to keep their operations afloat while in the grip of severe drought conditions. With little or no rainfall in the districts over the past 36 months, many are now in their fourth and fifth years of severe drought and suffering from the impact of this abnormal climatic event.

Remarkably, despite this, only 12 Central Australian properties had been declared in their second year of drought under the Northern Territory Government’s new drought policy.

The NTCA has fought tirelessly during the past 12 months to win appropriate recognition and relief for southern NT producers, through both the Australian and Northern Territory Governments.

We have approached the Territory Government for property lease fees to be temporarily waived for pastoralists that are financially burdened because of the drought.

We presented a comprehensive EC application to Agriculture Minister, Peter McGauran, and we are delighted to report that Minister McGauran has heard our plea and has delivered the interim drought support package for our southern producers. Territory Senator and newly appointed federal minister for community services Nigel Scullion announced this week that, for the first time, drought-ravaged Northern Territory stations have been approved for inclusion in the same Australian Government Exceptional Circumstance (EC) Assistance package as properties in other Australian states.

This welcome break-through means that more than 30 drought-affected pastoralists in the Alice districts have been recognised for the importance of maintaining the industry’s contribution to the Australian economy.

The Prima facie declaration means that immediate income support is available for people that satisfy the means test criteria. More importantly applications may now be started for business and interest support in anticipation of the time full EC declaration announcement.

The timeframe for The National Rural Agricultural Committee (NRAC) to assess and determine full EC is up to six months.

This is far too long for producers to wait, especially considering that most are in their fourth and fifth year of severe drought. We call on the Australian Government to expedite the full EC process for southern producers.

On behalf of the Industry I would like to thank the staff of NTCA and NT Department of Primary Industry, Fisheries and Mines, for their unflagging efforts to bring together the professional and comprehensive “Exceptional Circumstances’ drought relief submission we took to Canberra late last year.

Fatigue management

The NTCA has been actively involved in the Remote Area Livestock Transport Fatigue Management review and has presented a comprehensive submission on behalf of members. We are presently awaiting the outcome. The Association met with consultants and members of the National Transport Commission in Canberra to discuss the review requirements.

Our members strongly oppose current national fatigue management guidelines and are pushing for legislative change so that the east coast restrictions that are totally unsuitable for remote areas livestock transportation are not thrust upon us.

Environment and land management issues

Environmentally responsible land management has again been at the forefront for our members in 2006. We are always proud to broadcast the fact, particularly to the strident, ill-informed critics of our industry, that more than 85 per cent of our members are actively involved in their local landcare groups.

Territory cattle station owners and operators, like those involved in the Douglas Daly Adaptive Management initiative, know that without a strong commitment to protecting and properly managing their precious land resources, the future in this industry will be bleak.

The holders of the pastoral estate are the most dominant land managers in the Northern Territory. Less than 250 cattle producers manage 620,000 sq km of the NT pastoral estate – which represents 9.6 per cent of the Australian Land mass.

Beef road conditions

Like a reoccurring bad dream the state of the Territory’s beef roads, particularly in Central Australia and the Barkly, remain another critical issue that fails to receive the necessary attention from government. Many Territory producers suffer a substantial penalty in a direct cash cost because they are forced to transport cattle on dangerous and poorly maintained roads.

Despite our association’s intense and relentless representations over many months on this issue, the fact remains that less than 10 per cent of NT road maintenance funding is being spent on these dangerous but vital beef roads.

Primary industry plays a vital role in the Territory’s economy, and its success relies on an effective and safe road network. The growth in the live cattle export industry now requires ongoing production and export activities throughout the year, increasing the demand for year round access on routes traditionally closed by wet season flooding.

We are continuing to lobby both the NT and Australian Governments to increase their current road funding commitment. We have made some progress in meetings with a number of high ranked ministers but it’s the tip of the iceberg. With a federal election in the wind, we see great scope to keep pushing our demands through our local federal members and the responsible ministers in Canberra. We can’t afford to let up on this issue because urgent action is critical for our industry.

An abysmal 6543 km of the Territory’s 21,000 kms of roads are sealed at this stage. While we acknowledge some recent funding advances, most of the unsealed roads are poorly maintained and this poses huge problems for the cattle industry.

Our industry is a 365 days-a-year operation requiring access to markets all year round. We desperately need sound roads to meet our commitments to both domestic and export markets.

If the Northern Territory is to prosper in the future, government must invest in strategic infrastructure to take full advantage of regional growth opportunities presented by the key pastoral, tourism and mining industries.

AREAS OF CONCERN

New speed restrictions

The NT Government’s new 110km/hr regional road speed restriction became a hot issue for the NTCA late last year. In what can only be seen as an ill-focussed reaction to the Territory’s rising road fatalities, the government, without consulting Territorian’s, decided to reduce the open highway speed limit to 130 and imposed a maximum 110 km/hr limit for all other roads, including major regional arterial roads.

This has a major impact on the ability of cattle producers, and other associated industry players to operate effectively in their business.

This change, results from the government accepting a biased and non-consultative road safety report, compiled by a self-interest committee with no community or business representation.

We have and will continue strongly to urge the NT Government to reverse this restriction, and target the real reason behind our road fatalities - lack of seat belts, unlicensed drivers and drink driving.”

Local Government Reform  

The NT Government dropped a bombshell during the year by announcing a proposed reform package to disband 63 existing regional and community councils and replace them with nine super-shires.

it is extremely difficult to embrace this reform experiment especially considering that the people responsible for putting the reform package together are those that are directly responsible for the management of the existing councils.

Unfortunately the model proposed has come from the text book of local government reform 101 and presents nothing new or startling that will address the unique issues faced by the rural territory community at large.

Potentially this experiment has the makings of a recipe that will pit aboriginal language groups against each other vying for a greater share of the mega pie, and more concerning has the potential of regressing black white relations to an era that we thought had long passed.

Our members made it clear from the December round of branch meetings that they are vehemently opposed to the proposed reforms. There is not one benefit to our industry. This is a sinister and aggressive move to create a new tax and level of red tape forcing unfair fiscal pressure on the cattle industry.

The government has set up nine transitional committees to implement the proposed shire changes, but has clearly manipulated these to deliver its own agenda on local government reform, without any reasonable consultation with the pastoral industry.

We have urged the government to consult with the pastoral sector and other economic contributors to better understand the imminent problems before rushing headlong down this road and forcing hardworking bush people to pay for its core services.

Claims that an extra $20 million in road funding will result from this reform is absolute rubbish. We have repeatedly urged the government to back up its claims that the pastoral sector will benefit from these changes. The silence has been deafening.

We agree with the government’s argument that many existing small local government councils are mismanaged and technologically insolvent, compared with cattle stations which are self-sufficient. But had the government engaged with our industry from day one, it could have utilised our experience in regional matters to develop better fiscal and social outcomes for all Territorians.

This offer is still current, provided, this ill considered reform is immediately put on hold and a proper consultation of all stakeholders is considered.

If the government is hell-bent on ramming this reform package through within the next18 months we will continue to fight against what is clearly an unfair, ill-considered and irresponsible move by the NT Government. Be warned the gloves will be removed!

Feral Animals

Feral animals continue to be a major concern for Northern Territory pastoralists, with wild dogs, horses, donkeys and camels still having an impact on stock and land resources.

Our members estimate that 3500 to 4500 head of cattle are killed or maimed by wild dogs every year. The impact is particularly fierce during dry or drought conditions when these starving packs inflict an estimated $4 to $5 million worth of damage on pastoral properties.

The NT Parks and Wildlife Service recently reported that after 30 years of responsible control programs using 1080 poison baiting, the Territory now has a healthy population of pure bred dingoes. Perhaps the dingo has learned to bark.

The NTCA argues that bait laying and the implementation of other control measure should be based on sensible risk assessment.

Our association also believes the NT Government should take a sensible control approach by allowing producers to protect their livelihood from cruel and vicious wild dog attacks on aged cattle, cows and vulnerable young calves.

If the NT Government is serious about protecting the gene pool of the dingo it must follow the example of the other states in Australia and allow us to use new technologies such as Doggone baits to control the wild dog problem.

Camels

Camels have become a huge problem across Central Australia. A recent national forum heard that feral camel populations were now estimated to be over one million, with an estimation that left unchecked, the herd will double every eight years.

This is a problem that requires immediate action.

Research Farms under threat

Government-run research farms are under threat in the Territory and any closures will have an impact on how our cattlemen go about their business. These institutions ground-truth key R&D projects and provide critical training for departmental extension staff, who can then pass on their valuable advice to land and stock owners.

They run extension work field days, demonstrate research innovations and provide a focus for district industry and producer association meetings.

R&D conducted on northern region research stations has underpinned the vibrant $180 million-a-year live export through jointly-funded industry and government animal husbandry, market development and promotional programs. Likewise, other regional facilities provide invaluable back-up for cattlemen wanting to improve their stock for the domestic sector.

Our network of Territory research stations is critical in underpinning the potential for future generations within our industry to operate successfully in tune with changing climatic, market and other aspects.

I urge the Northern Territory Government to continue to invest in future generations by maintaining strong well-focused research programs on all such facilities.

MILESTONES

OH&S

Occupational Health and Safety is a critical issue for all workplaces - and that includes cattle stations. The NTCA has been working hard to produce a new operational OH&S manual specially tailored for the Territory cattle industry, and we are proud to be launching this manual during today’s proceedings. This document will enable Territory cattle producers to fine tune their OH & S operations on their pastoral properties.

It is important for the entire industry to take heed of the guidelines presented and adhere to appropriate occupational health and safety principles. Our workforce is a precious resource that’s hard to replace these days, with less people inclined to work on the land. Let’s don’t leave them vulnerable to dangerous practices - and let’s don’t leave ourselves open to unwanted expense, particularly in light of today’s litigious society.

Renewable Energy Initiative

With global warming and greenhouse gas issues hotting up and becoming more urgent, the NTCA has intensified its push for our members to take advantage of government-funded renewable energy rebates for remote area residents.

More and more pastoralists all over the Territory are making the switch to solar power and reaping significant financial and social benefits. They report dramatic cuts in costs and carbon emissions by reducing their reliance on diesel fuel for power and water generation.

The NTCA, NT Government and Australian Government partnership which promotes renewable energy to the local pastoral industry, continues to actively encourage members to investigate and utilise this renewable option.

Pastoral Lands Act – review

The pastoral land act 1992 has served the pastoral industry and the people of the Northern Territory for the past for the past fourteen years.

The authors of this document had the foresight to deliver an Act that would serve and develop both the industry and community of the Northern Territory.

This government must understand that the pastoral land Act is an act dealing with the pastoral estate and is not an environmental documen.

Our association’s Pastoral Lands Act subcommittee delivered a review submission which was signed off by members at the December round of branch meetings before being presented to the Minister. A working group, made up of departmental and Pastoral Land Board people, is now reviewing all submissions and we await the outcome. The document is on our website, for members who wish to peruse the final copy.

FarmBis

The joint Australian and NT Government Farmbis initiative remains a pivotal force in financially supporting station people across the Territory to upskill in a whole range of cattle industry sectors. Farmbis has supported some 2500 Territorians in this manner since its inception in 1998.

Farmbis-supported activities during the year included the successful Breeding EDGE workshops attended by many of our members. The workshop was part of Meat and Livestock Australia’s EDGEnetwork program that assists producers to enhance their skills in utilising breeding programs and genetic and reproductive technologies to achieve specific production targets.

Other available EDGEnetwork workshops available include the Nutrition EDGE and Grazing Land Management workshops. FarmBis is a joint Commonwealth and Northern Territory Government initiative, which provides financial support for primary producers and land managers to attend eligible management training activities.

Our Peak Bodies

In closing, I would like to congratulate and thank the Cattle Council of Australia and National Farmer Federation for another year of excellent, well-focussed industry representation.

Conclusion

Looking forward to the future, the NTCA remains clearly focused on viable export markets while also strengthening the Territory’s domestic meat markets. You are well positioned to implement wide-ranging production and marketing advances resulting from ongoing research and development initiatives.

Your efforts mean that our industry is in top shape - but we can’t afford to rest on our laurels. We face continuing challenges in 2007 but your hard-working executive will again pull out all stops to make sure your significant economic contribution is recognised and that you receive fair and equal treatment as Territorians.

Finally I would like to thank the executive and NTCA staff for your help thought the year, and also to our members for your unyielding support.

Thank you.

Roy Chisholm
President
30 March 2007