This Weeks Agribusiness News Recap

By: "Farm Tender" News
Hay & Fodder News
Mar 29, 2019
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This article is bought to you by Australian Fodder Industry Association.

By Georgia Devenish - Agricultural Research Analyst at JLL.

Horticulture

Tech start-up, Green Atlas, has launched new technology called 'The Cartographer' which uses a combination of satellite imagery and a specialised camera to count fruit on trees. The technology is aimed at improving orchard management whereby data is collected, recorded and available for inspection for comparison from one year to the next.

Livestock

The South Australian government has committed $7.5 million to improve the state's red meat sector supply chain with a focus on technology adaption, infrastructure and measures to enhance biosecurity. The investment will build on the Beef and Sheep Industry Blueprints document with the long term objective of increasing the amount of quality product available for processing.

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ANZ has released a research report into the sheep industry. The report highlights the positive outlook for the industry in the global marketplace. Market dynamics appear to remain favourable given the low supply conditions - both domestically and internationally - and strong demand from China, the Middle East and the US.

Cropping

Lempriere Grain was placed into administration last Friday with unofficial estimates of debts reported to range as high as $10 million. This is the latest in a line of insolvencies featuring grain buying companies. Brett Hosking, Grain Growers chairman, has said the issue of counterparty risk was something the industry needed to continue to work on.

Growers planning their 2019 winter crop rotation have been warned that China's anti-dumping investigation against the Australian barley industry is ongoing and has the potential to impact the market this year. China has accounted for approximately 75 percent of Australia's total barley exports in recent years.

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The next phase of T-Ports’ $130 million Lucky Bay port project on the Eyre Peninsula of South Australia has begun with ground improvements commencing at the port site last week. The development is South Australia’s first farmer and private equity partnership port. Lucky Bay will provide an alternative grain storage and export option which will be fully operational for the 2019/20 grain harvest.

Dairy

Fonterra posted a net profit after tax of $A77 million for the six months to January 31 2019, a considerable turn around from the $A338 million loss from the previous corresponding period. Fonterra said its Australian ingredients division had suffered a 17 percent decline in earnings before interest and tax to $A448 million due to the impact of drought.

The global dairy price has recorded its eighth consecutive rise in the Global Dairy Trade price index to $US3,324 per tonne - back to the levels set in June last year. Australian analyst Fresh Agenda in its latest Milk Price Outlook has lifted its midpoint forecast average southern Australia farmgate milk price for 2018/19 to $6.10 per kilogram milk solids.

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Wattle Health Australia plans to produce Australia’s first fresh and powdered organic milk with the A2 protein. The company has first rights on all dairy products produced by the Corio Bay Dairy Group (CBDG), a joint venture it has a 45 percent stake in, alongside Organic Dairy Farmers of Australia (ODFG) and minor partner Niche Dairy. CBDG has varied its supply agreement with ODFG to take commercial quantities of organic A2 milk to process into dairy powder - a deal which would make it the first nutritional dairy company to produce an Australian organic A2 range of products.

Work will soon commence on Norco’s $30 million extension of its ice-cream facility in Lismore. The increase in capacity and efficiency improvements will be the platform the company uses to grow its exports. The project received a $14.9 million Federal Government’s Regional Growth Fund grant.

Agribusiness

Nufarm revealed a $60 million earnings downgrade on Wednesday due to a combination of the drought and supply challenges in Europe, taking EBITDA to between $440-470 million.

One of Western Australia's biggest fruit and vegetable providers, Odeum Farms, has appointed David Lock as its new chairman as its looks to expand its operations. Mr Lock said the company was actively looking to build its scale, diversify its product lines and reach a broader range of local and export customers. Mr Lock is chairman of ASX-listed fishing company, Mareterram, chairman of Australian Pork, deputy chairman of the Water Corporation and a director of CBH.

Bega Cheese is growing its portfolio of food products with a "paddock to plate" peanut butter brand. Bega Simply Nuts is the first brand to be launched by Bega Cheese since its 2018 $11.9 million acquisition of Peanut Company of Australia. Peanuts used in the new product are grown by farmers around Kingaroy and on the Atherton Tablelands in Queensland.

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Green Camel is building the world’s largest integrated fish and horticulture facility at Camden. Their latest development, known as 'Cobbitty 2.0', will be a working research and production facility. The organisation is able to grow more than 130,000 kilograms of fresh leafy greens in an area of just one acre. The glasshouses use fish waste from the farmed barramundi to fertilise the crops.

Retail Food Group is reportedly considering selling off its Dairy Country business separately as Asia-based alternative investment management firm PAG remains in negotiations to buy the company's other brands. Dairy Country is an operation within Hudson Pacific; RFG bought Victoria-based food maker and distributor Hudson Pacific in 2016 for $88 million. RFG describes the business as Australia's largest independent cheese-value-adding enterprise, focusing on high-volume contract conversion, packing and processing.

Property

Viridis Ag has acquired the 'Brudle Park Aggregation' from the Ceres Agriuculture Company portfolio for approximately $50 million. The 8,870 hectare dryland cropping aggregation comprises four properties ('Brudle Park', 'Oaklands', 'Braden' and 'Yileena') and is the first major divestment by Ceres Ag since the business was listed for sale two years ago.

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The Langenhoven family has purchased 'Kalala Station' near Daly Waters in the Northern Territory for $58 million. The 376,000 hectare property is the third Northern Territory station bought by the family in just nine months following the purchase of 'McMinn Station' in June 2018 and 'Big River Station' in December 2018.