Use of business analysis in beef businesses to direct management practice change for climate adaptation outcomes

Beef businesses in northern Australia are facing increased pressure to be productive and profitable with challenges such as climate variability and poor financial performance over the past decade. Declining terms of trade, limited recent gains in on-farm productivity, low profit margins under current management systems and current climatic conditions will leave little capacity for businesses to absorb climate change-induced losses. In order to generate a whole-of-business focus towards management change, the Climate Clever Beef project in the Maranoa-Balonne region of Queensland trialled the use of business analysis with beef producers to improve financial literacy, provide a greater understanding of current business performance and initiate changes to current management practices. Demonstration properties were engaged and a systematic approach was used to assess current business performance, evaluate impacts of management changes on the business and to trial practices and promote successful outcomes to the wider industry. Focus was concentrated on improving financial literacy skills, understanding the business’ key performance indicators and modifying practices to improve both business productivity and profitability. To best achieve the desired outcomes, several extension models were employed: the ‘group facilitation/empowerment model’, the ‘individual consultant/mentor model’ and the ‘technology development model’. Providing producers with a whole-of-business approach and using business analysis in conjunction with on-farm trials and various extension methods proved to be a successful way to encourage producers in the region to adopt new practices into their business, in the areas of greatest impact. The areas targeted for development within businesses generally led to improvements in animal performance and grazing land management further improving the prospects for climate resilience.

Implications of retaining woody regrowth for carbon sequestration for an extensive grazing beef business: a bio-economic modelling case study

A bio-economic modelling framework (GRASP-ENTERPRISE) was used to assess the implications of retaining woody regrowth for carbon sequestration on a case study beef grazing property in northern Australia. Five carbon farming scenarios, ranging from 0% to 100% of the property regrowth retained for carbon sequestration, were simulated over a 20-year period (1993–2012). Dedicating regrowth on the property for carbon sequestration reduced pasture (up to 40%) and herd productivity (up to 20%), and resulted in financial losses (up to 24% reduction in total gross margin). A net carbon income (income after grazing management expenses are removed) of $2–4 per t CO2-e was required to offset economic losses of retaining regrowth on a moderately productive (~8 ha adult equivalent–1) property where income was from the sale of weaners. A higher opportunity cost ($ t–1 CO2-e) of retaining woody regrowth is likely for feeder steer or finishing operations, with improved cattle prices, and where the substantial transaction and reporting costs are included. Although uncertainty remains around the price received for carbon farming activities, this study demonstrated that a conservatively stocked breeding operation can achieve positive production, environmental and economic outcomes, including net carbon stock. This study was based on a beef enterprise in central Queensland’s grazing lands, however, the approach and learnings are expected to be applicable across northern Australia where regrowth is present.

A case study on the use of legume crop rotations in sugarcane

Growing legume fallow crops has proven to be an important factor in reducing the yield decline effect in sugarcane production. Legumes can also provide a direct economic benefit to sugarcane farmers by providing a source of nitrogen. Further, in some instances, income can flow from the sale, of grain or seed. The following case study provides an insight into the changes made by Russell Young, a sugarcane farmer situated in the Rita Island area of the Burdekin district. The case study focuses on the economics of the old farming system versus a new farming system. The old farming system is based on the conventional farming practices previously used by the Young family in 2002 compared to the 2006 farming system which involves a reduction in tillage practices and use of a Soybean rotational crop for seed production. A whole-of-farm was used to assess the impact of the new farming system on farm profitability. A whole-of-farm economic analysis looks at the impact of a change in farming practice across the whole business, rather than focusing on one single component. This case study is specific to an individual grower’s situation and is not representative of all situations. When evaluating a farming system change, it is important to have a detailed plan.

Rangeland profitability in the northern Gulf region of Queensland: understanding beef business complexity and the subsequent impact on land resource management and environmental outcomes

The farm-gate value of extensive beef production from the northern Gulf region of Queensland, Australia, is ~$150 million annually. Poor profitability and declining equity are common issues for most beef businesses in the region. The beef industry relies primarily on native pasture systems and studies continue to report a decline in the condition and productivity of important land types in the region. Governments and Natural Resource Management groups are investing significant resources to restore landscape health and productivity. Fundamental community expectations also include broader environmental outcomes such as reducing beef industry greenhouse gas emissions. Whole-of-business analysis results are presented from 18 extensive beef businesses (producers) to highlight the complex social and economic drivers of management decisions that impact on the natural resource and environment. Business analysis activities also focussed on improving enterprise performance. Profitability, herd performance and greenhouse emission benchmarks are documented and discussed.

Biocontrol of Chromolaena odorata in Papua New Guinea

Chromolaena odorata (L.) King and Robinson (Asteraceae) is a significant agricultural weed in Papua New Guinea (PNG), affecting plantations, food gardens and grazing lands. It was the focus of a collaborative biocontrol program funded by the Australian Government between 1998 and 2007. Chromolaena was recorded at 680 sites in 13 provinces of PNG through surveys, field releases of biocontrol agents and feedback from public awareness programs. Three biocontrol agents, the moth Pareuchaetes pseudoinsulata Rego Barros (Lepidoptera: Arctiidae), the stemgalling fly Cecidochares connexa (Macquart) (Diptera: Tephritidae) and the leaf mining fly Calycomyza eupatorivora Spencer (Diptera: Agromyzidae), were introduced to control chromolaena. Cecidochares connexa was found to be the most effective of the agents introduced as it quickly established at over 300 sites where it was released and spread up to 100km in five years from some sites. Experimental field plots established to determine the impact of the agents on chromolaena, showed that the size of chromolaena infestations decreased with the presence of C. connexa. A survey was conducted to quantify the social and economic benefits of biocontrol of chromolaena to landholders. Chromolaena is considered to be under substantial/significant control in nine provinces in PNG, with about 50% of respondents stating that there is less than 50% of chromolaena remaining following the release of the gall fly. This has resulted in landholders spending less time clearing chromolaena and the re-establishment of small-scale subsistence farms and the regeneration of natural vegetation. Crop yield and income generated from the sale of agricultural produce have increased by at least 50% since chromolaena was brought under biocontrol. It is anticipated that the gall fly will continue to spread and control chromolaena in areas where it has not yet reached, thereby further reducing the impact of the weed in PNG.

Veneer Recovery Analysis of Plantation Eucalypt Species Using Spindleless Lathe Technology

The Australian hardwood plantation industry is challenged to identify profitable markets for the sale of its wood fibre. The majority of the hardwood plantations already established in Australia have been managed for the production of pulpwood; however, interest exists to identify more profitable and value-added markets. As a consequence of a predominately pulpwood-focused management regime, this plantation resource contains a range of qualities and performance. Identifying alternative processing strategies and products that suit young plantation-grown hardwoods have proved challenging, with low product recoveries and/or unmarketable products as the outcome of many studies. Simple spindleless lathe technology was used to process 918 billets from six commercially important Australian hardwood species. The study has demonstrated that the production of rotary peeled veneer is an effective method for converting plantation hardwood trees. Recovery rates significantly higher than those reported for more traditional processing techniques (e.g., sawmilling) were achieved. Veneer visually graded to industry standards exhibited favourable recoveries suitable for the manufacture of structural products.