From the Executive Director of the NTCA

This report encompasses the period from the annual general meeting in 2010 to the end of March 2011.

The last 12 months have seen significant change of circumstances for Central Australian producers with outstanding rainfall after prolonged drought.  With this has come the inevitable concern over wildfires and what appears to be a lack of understanding within the government of the impending disaster. The past 12 months have also seen the live export market go through a number of challenges and particularly the imposition of the 350 kg restriction has driven a significant change in the market.  We also know that animal welfare remains number one priority for industry and equally, the opponents of industry keen to use it as a means what by which live export can be reduced to the annals of history.

Immediately following this annual general meeting and conference Jo Shearn will be moving on to a new career in Queensland. Jo has been a wonderful asset to the organisation over last 2 ½ years and will be greatly missed.

In Alice Springs we have seen a change of staff with the new management arrangement in place at the Bohning Yards at Roe Creek.  Jim Willoughby is the new yard manager overseeing operations and I also welcome his wife Tracy who is currently working in an administrative position in the office. I would also like to make particular reference to Tony Freshwater who not only managers the NTCA Indigenous Employment Program but has also played a central role in the redevelopment and restructurings of the Roe Creek complex.

I would also like to thank Mick Armstrong,  who based out of Katherine has played a vital role in the delivery of the Indigenous Employment Program along with Greg Vidler located at Tennant Creek. The employment program is delivering significant results and is testament to the hard work of the program staff and the support of the various pastoral companies, stations and their staff who make this initiative possible.

The NTCA executive met five times during the year including a meeting at Helen Springs, on the Barkly. The executive finance subcommittee also met and has played an important role in overseeing the organisation finances. The NTCA and its wholly-owned subsidiary, Northern Territory Cattlemen’s Training (NTCT) both posted profits for the calendar year, 2010.  This result is reflective of increased income through the Alice Springs Yard due to new income sources at the Alice Springs Yards and increased cattle numbers. The Alice Springs Yards have also been the focus of training events as part of the NTCA employment program and investment has been made to improve facilities to support the program. The outlook for the coming year remains positive with good seasonal conditions through Central Australia and the expectation of increased cattle numbers. The Alice Springs Yards are an outstanding facility in a good location and comprise the organisation single largest asset with long-term development potential.

A decision has been made to relocate the NTCA’s office in Alice Springs to the Roe Creek Yards and work has commenced on the new office. This will see centralisation of all activities at Roe Creek and is a very positive development for the NTCA in Central Australia. 

Major issues 2010/11

Indonesia remains the Northern Territory’s single largest market for cattle with just under 300,000 head exported during the 2010 calendar-year through the port of Darwin. The fundamentals of the Indonesian market remains strong and are continuing to improve. At the same time the imposition of 350 kg weight restriction has placed a great deal of pressure on produces who have been forced to find alternative markets the heavy cattle. Moves towards the establishment of a northern processing facility have been welcomed with a great deal of enthusiasm by producers seeking a market for out of specification animals. Continued challenges with the implementation of improved warfare standards, particularly at point of slaughter continued in 2010 and remains a key priority. We’ve also seen increased efforts by the NTCA to improve the direct relationship, and people to people links between the Northern Territory and Indonesian industry and government. As the world’s largest Muslim country and one of the largest democracies, Indonesia, as one of our closest neighbours is critical to Australia, the future of the Northern Territory and our region.

During the year we have seen the introduction of proposed changes to the pastoral land act, and the introduction of a native vegetation bill. Proposed changes to the pastoral land act are significant and the NTCA will be working to insure the industry is not disadvantaged.  As an election promise of the current government the introduction of completely new legislation for native vegetation have been received with a high degree of concern.  This legislation aims to consolidate decision-making powers and introduce prescriptive and highly restrictive regulations regarding the development of land, management of native vegetation and food production.

Debate has quickened on the carbon tax and it is likely that legislation will be introduced during 2011. The impact on Northern Australia and the rural sector of a carbon tax will be significant. This single piece of legislation has the potential to drive up production costs with a tax upon energy related costs, including on property fuel, freight, and the energy component of most station- inputs.  Introduction of proposed carbon farming legislation has been viewed sceptically by the NTCA as it is seen to offer no alternative source of income to offset the cost of the carbon tax. It is well-established that Northern Australia has a very limited opportunity to generate income through carbon offset programs, making the net result of a carbon tax and the carbon farming initiative detrimental to the economic viability of the industry.

Unfortunately 2010 saw a replay of the 2006 land valuation debacle with unimproved land values increasing on average by 450% over the three-year period with some valuations as high as 1500% for the same period. More than 50% of the pastoral lessees objected to the valuations and these objections will play out mid to late 2011. In anticipation of the hike in value NTCA negotiated changes to be multiplier for pastoral rental with a reduction from 1.2% to 0.24%, delivering an average increase in pastoral rentals of no more than CPI. Equally the NTCA has also negotiated with the Northern Territory government for a cap on Shire rates for two years.  Longer term the NTCA will continue to work towards minimising the potential for increase in statutory fees and charges on the pastoral estate.

The year has seen a number of significant rainfall events across the entire NT, resulting in significant damage to infrastructure including the main Stuart Highway. On top of the chronic lack of funding for roads and infrastructure the situation is worsening and remains a constant source of frustration to the industry. A report conducted by Engineers Australia in 2010 produced a damning snapshot of the condition of Northern Territory roads and infrastructures and an overall decline in condition. This remains a significant challenge for the NTCA and significantly for the Northern Territory government as we fight for an equitable share of federal funding which unfortunately is often tied to political leverage, of which the Northern Territory is in short supply.

While changes to the rules surrounding a wild dog baiting in 2009 allow landholders to access  prepared baits,  the process for obtaining approval requires dealing with two separate government departments in a lengthy and detailed application process.  The system for wet meat baiting has become costly, cumbersome, bureaucratic and unwieldy, resulting in reduced baiting and the explosion of wild dog numbers across much of the Territory.  This has led to direct and significant production losses, to the economic detriment of producers and the Northern Territory as a whole.  A revision of the guidelines around baiting is currently underway. 

As we look to the coming 12 months there are a number of challenges which will continue to focus the attention of the NTCA including:

Building the NTCA’s capacity to influence Territory and national policy and direction.

Challenging the implementation of the carbon tax and negotiation of amendments to see the minimal possible impact on industry, if the tax is to be implemented.

Challenging unreasonable changes to existing legislation, in particular pastoral lands act, and new legislation for the management of native vegetation.

National policy development and implementation relating to Northern Australia and the Northern cattle industry.

Continued work towards diversifying options for Northern producers who are largely dependent upon the live export market to Indonesia and opportunities for local processing. 

In conclusion I would like to thank the NTCA executive for their tireless work over the past 12 months and pay particular attention to the work of NTCA president Rohan Sullivan who has been taken away from the demands of his own family business for extended periods of time. Thanks also to George Scott who has thrown himself into the role as NTCA representative on Cattle Council of Australia and Roy Chisholm who provides great depth to the role as the NTCA’s representative on the National Farmers Federation.

Luke Bowen
Executive Director
March 2011