Opinion 
 Blogs 
 Inside wool  
 ABARE gets one right 

ABARE gets one right

It is a perennial joke in the country: ABARE's predictions often appear wildly out of touch with reality, like this year's forecasts that an oversupply will drop lamb prices. Really? Has ABARE seen the national flock lately?

However, this year the national forecaster appears to have hit at least one nail on the head.

Executive director Phillip Glyde has recognised that farmers can no longer produce more from less and the increasing land and water pressures, coupled with the reality of climate change and the emissions trading fiasco that proposes to somehow fix it, is too much.

Australian farmers have attempted to keep up with the unrelenting march of costs through productivity gains - it has been one of the few weapons farmers can use against the increasing costs and lower returns that define what is known as "Cochrane’s treadmill".

This year in Canberra, Mr Glyde said the rate of productivity growth on farm had slowed due to the "return of more land and water to the environment".

I would have thought farming land might have been considered to be part of the environment, but we know what he means: the environmental movement.

The recognition that farming can no longer carry the strain of failed seasons, increasing costs, political will and diminishing returns is a landmark statement and the message will hopefully make it from the ABARE building to a few more concrete monoliths in Canberra.

Mr Glyde also observes how consumers' expectations are simply unrealistic.

Producing more from less in a clean and green manner is what Australian farmers have been doing for generations, and doing it without tariff or subsidy.

Australian consumers have been enjoying cheap and clean food for far too long because they have not been paying the true environmental cost of that produce.

Food must become more expensive and the extra value passed back to farmers to allow them to look after their land.

Importing cheap food from low-cost countries has the capacity to increase land degradation and pollution in developing countries, simple exporting the problem.

The kicker to this scenario is that agriculture and the exports it creates is one of the shining lights of our weakening economy and one of the ways Australia is likely to pull itself out of the economic mess currently gripping the world.

Give farmers a chance.

Print
Increase Text Size
Decrease Text Size

comments


Date: Newest first | Oldest first
Yes but. In our modern economy the only connection between consumer and producer is a small part of the price. The full price includes distribution costs far greater than the farm gate price. The consumer can't discover the problem until undersupply becomes critical. With consumers being in the vast majority, poor information leads to poor political decision making.

I draw attention to an excellent article in the Grenfell Record of 5th December last, http://grenfell.yourguide.com.au/news/local/news/general/aus tralian-cattle-prices-reach-the-bottom-of-global-ladder/1378 752.aspx?storypage=0. It includes these figures for dressed weight prices in Eurodollars for beef, drawn from an Irish farm journal: - UK 3.56, Italy 3.46, Netherlands 3.35, Germany 3.30, France 3.19, Uruguay 2.51, US 2.46, Brazil 1.83, Australia 1.57 and the politically price capped Argentina on 1.32. A serious problem that I see in this report is that while Mr Glyde speaks of increasing "land and water pressures" he makes no mention of the people.

Posted by Ted O'Brien., 7/03/2009 1:48:18 AM
The script is written, the stage is set, the actors are in place, let the play begin, "A time to starve".
Posted by Hunger, the new world order, 16/03/2009 6:27:26 PM
Yep, and has any desk-bound economist ever tried farming 'roos?! ABARE is just another speculator - their comments influence markets. Imagine this - a regulatored price for all soft commodities (food and grain). Unlike the wool floor price ALL commodities are set at a fair price, with minimal changes to futures regarding supply/demand. So say wheat at $300 give or take $40 depending on fluctuations. Canola at $490 depending on fluctuations, oats at $190 etc. etc. Growers, end users and consumers would actually be able to budget and the producers of earth's most precious resource - FOOD - could actually make a living.
Posted by Bluey, 7/05/2009 6:19:19 PM
Inside wool
Wool growers are sick of the politics at a time when industry most needs a connection with growers. But what is needed and how can it be done?
Related Coverage
POLL
Q: Should the Federal Government delay the introduction of an emissions trading system?

Yes - the economy is too vulnerable
(71.5%)

No - action on global warming is needed now
(25.1%)

Undecided
(3.4%)

Total Votes: 1007
Poll Date: 01 March, 2009

Most popular articles

Advertisement

Irwin Hunter 160x160


Farm Weekly







Weather brought to you by:

Weatherzone

Classifieds

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2012. Fairfax Media.
 SEND...
 SAVE...
 SHARE...