South West Rural Report

Latest Report

Dairy farmer concerned about proposed coal mine


Third generation dairy farmer Garry Cain was eleven years old when mining companies first came to drill exploration holes near his father's property in Margaret River.

Almost 50 years later, Eastern States miner LD Operations is looking to set up the Vasse Coal Mining Project.

The project would see about 60 million tonnes of coal mined and extracted 15kms outside of the Margaret River township.

Garry's 161 hectare property sits directly above the seam and his house is 500 metres from the extraction site boundary.

He says the mine would damage the water-table and threaten his ability to grow pasture as a dry land farmer.


Cow shortage stunts dairy growth, but spirits high


Cows are in short supply nationwide and that's restricting the growth of the Australian dairy industry, according to the latest industry outlook survey.

Dairy Australia is still predicting growth of between 1 and 2 per cent for the coming year, but says that if more replacement heifers and cows were available, that number would be between 2 and 3 per cent.

The lack of cows is the result of a tough season last year, when many farmers made the decision to significantly cull their herds.

Things are looking up now, though, with the survey of 340 Australian dairy farmers finding 73 per cent now feel optimistic about the future of their industry.

Dairy Australia's manager of strategy and knowledge, Joanne Bills says that's down to a better start to the season, higher prices and settling commodity markets.

She says higher confidence is not surprising when you contrast that to the dire situation this time last year.

There might be more good news to come, with Ms Bills saying Dairy Australia's May forecast of $5 to $5.40 per kilogram for milk solids is still achievable over the course of the season.

"I think it is fair to say, though, that with the ongoing uncertainty in the marketplace, that step-ups may be towards the end of the season, just given how strongly the opening prices have started," Ms Bills says.

While national confidence improved between February and August, the proportion of WA farmers who felt positive about the future of the industry fell from 60% to 50% in the latest survey. This reflects the negative price signals and dry conditions WA farmers have faced over the past 6 months.

WA farmers cited milk prices as the greatest challenge they face for the coming 6 months, mentioned by 40% of respondents, followed closely by the cost of feed inputs, mentioned by 30% of farmers surveyed.

97% of WA dairy farmers purchased grain and supplements over the past 12 months, with bought-in feeds representing an estimated 42% of the total ration for their herds.

While the survey indicates that WA dairy farmers are the most likely to purchase their feed requirements using forward contracts, local farmers are exposed to grain market volatility.


Spring is the time for strategic pasture and fertiliser managment


For many in the South West poor rainfall and low run off has made for a tough season.

The Department for agriculture and food is calling on South West farmers to put in place grazing and fertiliser management programs now to ensure that producers optimise their farming and make the most of any further rain.

John Lucey is the Dairy Team Leader with the Department for agriculture and Food; he says spring is the time for farmers to take action.

The Department for Agriculture and the Beef CRC will be presenting talks on pasture and fertiliser management strategies at the Vasse Field day.

The Field day is being held on Wednesday September 15th at the Vasse Research Centre and you can register for the day with Corrine Mack on 97530309.

Western Australia Features