Presentation is loading. Please wait.

Presentation is loading. Please wait.

Resources, Water and Agrifood Opportunities Year of the Farmer, Wangaratta David Sackett.

Similar presentations


Presentation on theme: "Resources, Water and Agrifood Opportunities Year of the Farmer, Wangaratta David Sackett."— Presentation transcript:

1 Resources, Water and Agrifood Opportunities Year of the Farmer, Wangaratta David Sackett

2 An easy future? “Invest in ag and go to the beach for the next five years” (Blackrock)

3 The big picture issues we need to focus on Fewer farmers ( p.a.) Increase demand for food (70% increase by 2050) Increase demand on farmers – Social, environmental, welfare – More complex Farming still a good low risk business

4 Rain-fed farming systems Low labour requirement (replace with capital) Low cost producer Technology Commodity v Niche? – Out of season – Quality (safe, organic) – Location – C ereals, oilseeds, sheep, beef (?), cotton – Low labour requirements (capital replaces labour) Where is our competitive advantage?

5 Cereal and oilseeds Southern beef Sheep meat Wool Dairy Cotton? Sugar? ?????????? Horticulture Northern beef

6 Commodity v Niche Location Natural resources Human resources – Expertise – Interest and passion YOUR competitive advantage?

7 Lamb Production Average cost/kg DWt

8 Lamb Production Average cost/kg DWt

9 The best wheat producers Average Cost/tonne

10 The best wheat producers Average Cost/tonne

11 Three things Productivity Note: Production and Productivity are very different What really does matter?

12 Sheep0.3% Beef1.5% Cropping2.1% Productivity gain by sector

13 Some key questions “Low input” or “high input”? Specialised or diversified? Variation (risk?) – resilient – responsive

14 Chasing price premiums ( organic, out of season ) Price risk management ( forward selling etc ) Grazing systems “Farming” carbon ( <$200/tonne ) Most new technology The Things that do not Matter

15 Labour (machines) Livestock Land Where will the gains come from?

16 A food crisis or a water crisis? 70% of the worlds water is used to grow 40% of the worlds food

17 Water use – Human use (golf courses) – Manufacturing/Mining – Agriculture » Horticulture » Seed crops » Summer crops eg cotton, rice, corn » Dairy » Winter crops eg wheat, canola » Beef and lamb » Wool Decreasing returns

18 The opportunities Slow change in farm structures – Fewer larger farms v lifestyle – Separating ownership and management – Separating land and enterprise ownership Intellectual property

19 Identify your competitive advantages – Look at a range of models Productivity gains remain critical for long term viability in commodities Plenty of scope Human capital Fewer farms New technology Summary

20


Download ppt "Resources, Water and Agrifood Opportunities Year of the Farmer, Wangaratta David Sackett."

Similar presentations


Ads by Google