ACCC Media Release , 22 August 2008 The ACCC have published a report which examines the reasons for recent increases in fertiliser prices. The factors underlying the import price of fertilisers were considered through voluntary submissions from fertiliser suppliers and representative farming organisations. The detailed report, (36 pages, pdf 688 Kb), concluded the significant rises in fertiliser prices reflect global supply and demand. Expanding world production of grains, livestock feed and bio-fuels coupled with increasing energy costs and a limited supply capacity, resulted in an increase in fertiliser prices worldwide. Much of the conduct that raised industry concerns late in 2007 could be attributed to a deficiency in short-term supply associated with an unexpected bringing forward of demand to capitalise on improved growing conditions.

ABC News, 18 August 2008 Waste water is widely used to irrigate urban agricultural land in developing countries, a practice that has both advantages and disadvantages, a 53-city study presented at a water conference in Stockholm has shown. The International Water Management Institute report, showed that 80 per cent of cities studied were using untreated or partially treated waste water for agriculture. Waste water irrigation contributes to urban food supplies and helps provide a livelihood for the poor, but can be a health risk if the food is consumed uncooked. In over 70 per cent of the cities studied, more than half of the urban agricultural land produced vegetables and rice using waste water. Waste watere was being used on 20 million hectares of land, throughout China, India, Vietnam, sub-Saharan Africa and in many Latin American cities. In Ghana's capital Accra, some 200,000 city residents purchase vegetables produced on just 100 hectares of urban agricultural land irrigated with waste water. The report urged local authorities to develop policies for safer waste water use, and advocated low-cost measures such as the use of drip irrigation and correct washing of produce.

FreshInfo UK, 18 August 2008 Borrowing levels for the UK agriculture sector have broken the £10 billion mark for the first time, according to the Bank of England. The figures show that despite higher market prices for most agricultural products over the last 12 months, debt has risen. This clearly reflects the massive increase in input costs, which is impacting upon cash flow and profitability. The bank, has seen many cases of overdrafts being extended to cope with not only increased input costs but also much tighter credit terms, particularly from fuel & fertiliser suppliers. Growers have also increased forward purchasing as a hedge against further cost inflation. The concern must be whether output prices remain high enough to enable worthwhile profits over the coming year. If businesses are locking in their input costs they must also consider locking in to forward sales contracts where possible, to secure their profit margin. However, despite the effect of input costs, bank lending is up significantly. This illustrates that although costs are rising, farmers are showing an increased optimism on the back of improved commodity prices, and are taking the opportunity to invest to secure sustainable profits in coming years.

FreshInfo UK, Wed 6 Aug 08 10:01;

UK Growers are being advised to think ahead and plan their fungicide campaigns now, if they want to reduce the threat of downy mildew in their vegetable and salad crops at harvest time.

The risk of downy mildew, and the resulting crop losses, is strongly linked with the type of weather conditions expected over the next few weeks, warns one adviser.

UK vegetable specialist Chris Wallwork, says that the key thing for growers to do now, is think ahead as to what fungicide options they have available for the duration of the crop’s life.

“Farmers will know the autumnal feel that brings downy mildew into their crops, but my impression is that, these days, those conditions are becoming more common by late July or early August,” said Wallwork.

“When the downy mildew weather arrives, growers need to be ready. Growers are constantly told to minimise pesticide use and the range of products is also diminishing, which means that they need to be even more targeted with their applications.”

Wallwork suggests that spray intervals can be stretched in low risk periods of dry, breezy weather. Equally important, he stresses, is that too long a delay will leave the crop vulnerable if the disease gets hold.

It is also important to match the strengths of different products to appropriate stages of crop and disease development.

“Downy mildew resistant varieties will help but they will still need treating, depending on the severity of the disease and the variety in question,” said Wallwork. “If downy mildew is present at harvest then it's a real threat to the marketability of salad crops, while vegetables will suffer from reduced yields.

“We know the disease is the next thing to look out for, so the message is to be ready when it comes,” concluded Wallwork.

source: Stock & Land, Vic 24 July 2008 Trading in carbon could be a real winner for farmers, if common sense prevails. The politics of carbon trading are unfortunately well ahead of the science right now, particularly agricultural science. With most of the nation paranoid about what fuel, electricity and food will do under a carbon trading scheme, few have even thought of where the carbon offsets will come from to "save us all". Trading in carbon could be a real winner for farmers, if common sense prevails. Any secondary school student will tell you, the role of agriculture in the carbon cycle is to take carbon from the atmosphere and place it in living things - plants, animals and soil microbes. Wow, that sounds like a great way to reduce atmospheric carbon! Yes cows and sheep belch and fart but common sense will tell you that agriculture’s net effect has to be positive if farmers are doing their job properly and profitably. The more efficiently carbon is fixed into living things, the better it should be for the environment. Inefficient use of fertilser, fuel, feed or even fire, constitute losses of carbon. Farmers are in the business of growing a natural resource, not losing it and this fits in perfectly with carbon trading. The advent of the Landcare movement in Victoria over 20 years ago, led to the recognition of farmers as good land managers, before the movement was sadly hijacked by bureaucracy and died. The carbon debate should again prove that good farmers build things from carbon - it's how they have made a living since the first seed was planted by man. Could carbon trading be the next Landcare? The financial opportunities stemming from carbon trading could be enormous and systems in the United States are already rewarding farmers for their soil carbon management. You don’t have to plant trees and leave them there forever to help save the planet. Stubble retention, minimum tillage and building up fertility in soil may well be a great way to make money as well as practise good agriculture. All we need to wait for is some good science, good policies and hopefully some good seasons. Related articles: "Soil carbon: just do it" by MATT CAWOOD Stock & Land 17/07/2008 "Soil carbon a must for emissions trading - Garnaut" LUCY SKUTHORP Rural Press 09/07/2008

source: Stock & Land 22/07/2008 Mustard plants are proving too hot to handle for some crop pests, and are providing an innovative bio-control for fruit and vegetable farmers. "Brassica plants naturally release compounds that suppress pests and pathogens, principally isothiocyanates (ITCs), which most people would recognise as the 'hot' flavour in mustard or horseradish," CSIRO's Dr John Kirkegaard said. Although it is a centuries-old farming practice, its modern applications will be put under the microscope at the Third International Biofumigation Symposium in Canberra this week where . Researchers, growers and industry specialists from 22 countries will share the latest research into the use of brassica species - such as mustard, radish, or rapeseed - to manage soil-borne pests and weeds. "The technique is relevant to developed countries seeking alternatives to banned synthetic pesticides such as methyl-bromide, as well as poor farmers in developing countries who often have few alternatives for controlling serious diseases in their crops. "It can provide economic and social benefits, as improved crop yields lead to increased incomes, as well as a range of environmental and health benefits from a reduced reliance on fumigants and pesticides." Using brassicas to manage soil-borne pests is not new, but modern science is providing new insights and techniques to enhance the reliability of the effect as part of an integrated pest control strategy. Brassicas can also provide other benefits to the soil as green manures. Australian scientists are at the forefront of this area of research, in projects on tropical vegetable production systems in north Queensland and the Philippines, supported by the Australian Centre for International Agricultural Research, and on temperate southern Australian vegetable production, supported by Horticulture Australia Limited.

source: telegraph.co.uk 7/21/2008 Desperate British vegetable growers are lobbying supermarkets to increase the price they pay for cauliflowers, cabbages and broccoli by around 30% in order to keep the industry from total collapse. Suppliers have written to Tesco, Asda, J Sainsbury and Wm Morrison explaining that their overheads will shoot up over the next year because of a near trebling of fertiliser costs and sharp increases in the price of seed and fuel. Large growers with combined annual revenues of well over £100m have told The Daily Telegraph that food price inflation - currently 10.6% - will hit new heights next year. Geoff Philpott, who runs GG Philpott & Son, a Kent-based cauliflower grower, said his fertiliser costs would triple over the next year, while other costs - for seeds, spray, staff and fuel - were likely to increase by up to 30%. "It is doubtful whether our crops can be financed over the next year," said Mr Philpott, who sells vegetables to wholesalers, exporters and big supermarkets and grows 103 varieties of cauliflower. Greville Richards, who runs Southern England Farms, which supplies sprouts, cauliflowers, cabbages and broccoli to supermarkets, said: "Vegetable inflation has not hit UK shelves yet. I don't think the Government realises that real inflation will come on stream next year." Mr Richards' fertiliser bill will rise from £812,000 this year to £2.2m next because of an increase in the price of fertiliser from £203 to £550 a tonne. Mr Philpott, who has written to the businesses he supplies, needs 44p per cauliflower this year to cover his costs. This will rise to 50p next year. He is currently paid just 39p.

source: LUCY SKUTHORP - Rural Press 4/07/2008 Soil carbon must be recognised if agriculture is to be part of an emissions trading scheme, according to economist Professor Ross Garnaut, who today released a draft report into Australia's response to climate change. He has recommended in his report to the Federal Government that the agriculture sector be initially left out of an emissions trading scheme. "It's very important that the arrangements put in place give true credit for carbon that is in the soil," Professor Garnaut said. "That's one of the reasons we can't go quickly with agriculture is because we're still working out how to measure that." "Getting the measurement right and the administration right is crucial and a lot is going to be depending on that," he said. "But my view is we shouldn't be moving to put agriculture in until we've got that right." * Click here to read the DRAFT Garnaut report.

source: 'Irrigation and Water Resources' magazine, Winter 2008 Vegetable growers at Werribee South are set to benefit from a $120,000 SmartWater grant to identify best practice strategies for the use of recycled water. The grant was awarded to the Victorian Department of Primary Industries, in conjunction with Southern Rural Water and AgChallenge P/L and supplements $185,000 already allocated to this work. The project will undertake on-farm surveys, grower focus groups and demonstration trials to identify which farm management practices are protective against soil salinity and sodicity, with communication of these results to other growers within the region. Smartwater grants were also awarded to: Victoria University to research improved water purification efficiencies. Monash University to reduce water consumption and heavy metal discharges from electroplating industries. The Smartwater fund is an initiative of Melbourne's water businesses - City West Water, South East Water, Yarra Valley Water, Melbourne Water - and the Victorian Department of Sustainability and Environment.

By Daniel Palmer A new Senate inquiry led by Bill Heffernan will examine how Australia can produce enough food for itself and maintain its major export capacity in the face of global warming. The inquiry hopes to determine how to produce food that is: affordable to consumers, viable for production by farmers environmentally sustainable The Committee will look at: the impact of climate change both globally and nationally, the effect of carbon trading, market distortions including, commodity traders / speculators, consolidated retailers, supply and demand, global cartels, Impact on fuel, fertiliser and chemical prices and supply, tax distortions and the impact of their incentives in the market, eg. Managed Investment Schemes (MIS), supply chain efficiencies availability of agricultural land and water and other related matters. Shadow Minister for Environment, Heritage, the Arts and Indigenous Affairs, Dr Sharman Stone, believes that the inquiry is pivotal, as it should provide greater understanding of the future of food-related industries here in Australia. “Australians have long taken for granted the diversity, quality and low prices of foods grown locally,” she claimed. “Government policy, in particular in relation to research and development, climate change and emissions trading schemes as they relate to agriculture, will all play a significant part in the future capacity of Australia’s farmers to feed us and to continue to export globally.” “This inquiry comes at a critical time for Australia’s farmers,” Dr Stone added. “The cost of farm inputs has risen alarmingly, (and) fuel, fertilisers, veterinary services and supplies are all thinning margins. Urban, mining and forestry encroachment is reducing the arable land supply and labour shortages and the age of those in farm and food production are all adding to the mix of a sector needing very special attention if it is to flourish into the future.” “I encourage all sectors of Australian food producers and those with a concern for our natural environment to make their submissions to the committee,” Dr Stone said. The inquiry comes at a time when food prices have been skyrocketing, COAG meets to discuss the future of the Murray-Darling basin, and drought continues to cause great hardship in many rural farming areas.

By James Ferre ABS Retail Trade figures for May 2008 showed that retail Food sales improved in May with a 3.7 per cent rise in sales. More importantly, the seasonally adjusted figure rose by 1 per cent which paints a much brighter picture than some expected. With food inflation being so high in the past year some food retailers are still struggling.

By HELEN MURDOCH - The Press | Friday, 20 June 2008 Gone are the days of Tasman's traditional family market gardener. They have followed the national trend and been replaced by commercial growers, the sweep of whose clean tilled paddocks and neat rows of vegetables covering hundreds of hectares are manicured by giant tractors. But even the rationalised grower is under threat from today's soaring labour, fertiliser, land and fuel costs, coupled with almost stagnant retail-chain returns. The outcome could soon be higher vegetable prices for consumers. HortNZ senior business manager Ken Robertson said the loss of Tasman's tobacco industry, many growers of which produced vegetables, the withdrawal of Talley's from local vegetable processing and the development of supermarkets saw a downturn in production and the rationalisation of the region's commercial produce growers. But recent massive increases in fertiliser, fuel and labour were now putting even large growers under pressure. Robertson said commercial-grower returns had not changed in the last decade and some had even gone down. "Some are finding it very hard to make ends meet and I suspect banks are looking at some parts of horticulture very closely," Robertson said. Climate change and the proposed emissions-trading scheme could effectively spell the end for many commercial growers, he said. "It will impose huge costs on the industry, because they are big users of diesel in the cultivation of crops and transport to markets. And basically the Government has ignored the fact that growers cannot pass these costs on because they are selling to retailers." Retailers', and consumers', expectations of year-round supplies of perfect cheap fruit and vegetables had done nothing to ease the industry's increasing financial crises, he said. He predicted these increased pressures would see the last of the smaller growers soon completely disappear, and some larger growers reassess their future. Robertson said the national grower population was getting older and, apart from the big specialty businesses, many were starting to wonder where the future of the industry was going. "If the situation in the marketplace does not change, consumers will start to see some real price rises in fruit and vegetables," he said.

Thursday, June 19, 2008 The world’s current food crisis and the future of sustainable food provision are in the spotlight at the 52nd World Food Business Summit. commencing in Munich today. The Food Business Summit – themed Growth and Sustainability – Building Profit with Responsibility - represents the apex of the world food industry Around 800 leaders in the food retail, manufacturing and supply industries, from 50 countries have gathered to debate the considerable challenge of sustainable food production, rampant fuel and commodity prices,and food supply.

26 May 2008 Queensland fruit fly has been detected at Clifton Creek, north of Bairnsdale. A suspenion zone has been declared and the movement of host fruit to Melbourne and sensitive interstate markets is restricted. Most fruits including citrus, stone and pomme fruit, berries, tomatoes, capsicums and chillies, are considered hosts of Queensland fruit fly. Host fruit must be certified under a DPI arrangement prior to leaving the suspension zone. It is critical the pest is controlled at Clifton Creek to prevent it affecting other horticultural production in Gippsland. Eradication activities will begin after winter when they will be most effective. Source: foodweek.com.au

May 28, 2008, David McKenzie - Weekly Times The Horticultural Code of Conduct, introduced last year could soon be extended to agents who buy from growers on behalf of retailers. The code regulates trade in horticulture produce between growers and wholesale traders to encourage commercial transparency in transactions and resolve disputes. The ACCC has considered the Horticultural Code of Conduct during their grocery price inquiry. There was no obvious reason to extend the code to supermarkets as they are already bound by the Produce and Grocery Industry Code of Conduct. “The Horticulture Code Issues Paper has now been published and the ACCC wants to ensure that industry participants have had an opportunity to comment on these issues.” Interested parties are invited to make submissions to the ACCC in relation to the Horticulture Code and issues identified in the paper by 5 p.m., 10 June 2008. View submissions from AusVeg Coles VFF

May 22, 2008, Isobel Drake Just twelve crops and fourteen animal species now provide most of the world’s food. This limited diversity offers fewer opportunities for growth and innovation to boost agriculture at a time of soaring food prices. Fewer crop types leaves our food supply more vulnerable to climate change, water scarcity and plant pests & diseases. The UN Food & Agriculture Organisation believes that erosion of biodiversity in food and agriculture severely compromises global food security. We need to strengthen our efforts to protect and wisely manage biodiversity for food security. Biodiversity is central to achieving a secure and sustainable food supply system.

May 23, 2008, James Ferre The Tasmanian Government is looking to the organic farming industry to improve food security. The Tasmanian Minister for Primary Industries and Water, David Llewellyn, opened the ‘Organic Conversion and Expansion' conference in Launceston and pledged his support to organic farming. “Tasmania has a natural, clean, green image, and Tasmanian organic products rate highly in quality against other national and international products,” said Mr Llewellyn. Mr Llewellyn stressed that the organic industry was well placed in the marketing of its products to the world and urged industry to continue the push to satisfy consumer demand for regular supply and consistent quality. Mr Llewellyn said the Organic Coalition of Tasmania, which convened the conference with the Department of Primary Industries and Water, has a key role to play in the future growth of the industry along with the Organic Federation of Australia. ”The Organic Coalition has already shown leadership in fostering partnerships between the industry and Government,” said Mr Llewellyn. recent findings show increasing interest in organic food is being driven by parents concern for their child's health.

27th May 2008, JODIE THOMSON Prices for fresh produce will need to rise to cover a jump in fertiliser prices that has added to the jump fuel and labour costs. Prices for fertiliser have more than doubled since December, with distributors warning of further rises as international supplies become increasingly difficult to source. WA Vegetable Growers Association president David Anderson said the increase in fertiliser prices was the latest of many rising expenses which were not being matched by farm gate prices. Julian Baker, owner of fertiliser and chemical supplier Growers Rural, said wholesale prices for standard nitrogen, phosphorus and potassium compound fertiliser had doubled to about $1400 a tonne in five months while prices for other top-grade fertilisers, common to hydroponics, had trebled. “The rise is staggering,” he said. “Basically we are buying whatever we can get and paying whatever we can to secure supplies.” “Sulfate of potash from Taiwan has jumped from $US850/tonne for a shipment to $US1350/tonne in a matter of weeks,” he said. “Every time we buy it is costing more and I don’t know where it will end up.” Soaring demand for food in developing countries, such as China and India, and demand for biofuel crops had driven global demand for fertilisers, CSBP fertiliser general manager Darryl Dent said supplies had been further restricted by increased export tariffs on fertiliser from China. We are seeing some smaller growers drop out of the system because of the high running costs WA Fruit Growers Association Diane Fry said unless farm gate prices improved, rising costs of fertiliser, fuel and labour would drive down the State’s fruit production as tightening margins pushed out more growers.

May 16, 2008, Jodie Thomson Australia may have its own food crisis, with the WA Vegetable Growers Association indicating their fear that WA will be unable to feed itself with fresh local produce by about 2020. The WA Vegetable Growers Association has called on the state government to create a regulatory authority to license growers and ensure sufficient production levels. Grower margins have become an issue as skyrocketing costs outweigh any increases in sale prices. Chief Executive of the WA Vegetable Growers Association, Jim Turley, has labelled the current system as “unsustainable”. “The way we are going, WA growers will be incapable of supplying sufficient quantities of fresh vegetables within 10 to 15 years. We simply won’t be able to grow enough to feed ourselves” The WA Fruit Growers Association and the WA Farmers Federation (WAFarmers) have also outlined their concerns about current regulation and the future of the food industry in Western Australia and fear an exodus of farmers from the industry.

May 20, 2008, by Daniel Palmer Hidden environmental costs could make food production more vulnerable than previously thought and we should prepare for rising food prices to continue. A new report (1208kb) explores threats and opportunities in Victoria’s food systems from production to consumption, paddock to plate. The report calls for an immediate transition to food systems that regenerate Victoria’s soil and water resources, can cope with unpredictable and changing climate conditions, and provide affordable food to all Victorians. The ability for Victoria to feed itself in the decades ahead has been questioned and follows similar findings in Western Australia where fears for the future of their food industry have been growing this year. Lead author Kirsten Larsen, based at the University of Melbourne, says food production will be increasingly challenged by changing climate, dwindling supplies of cheap oil and declining water and soil resources. “What has become patently clear is that major innovations - well beyond efficiency improvements in existing food production - are needed, and soon, if we are to have good food to feed all Victorians and to meet export demands.” “We have major gaps in knowledge about Victoria’s and Australia’s food systems that we must address” Strategies ranging from precision farming to urban food production provide glimpses of future food systems, but Victoria needed to carefully consider all approaches - old and new - to actively plan for and design sustainable and secure food systems. “There is an urgent need to act. Environmental risks and resource constraints are already undermining our ability to increase food production and are reducing access to healthy and affordable food.” The report is not welcome news as food prices are already on a rapid incline and fears of a global food shortage have become commonplace in some areas of the world.