Feedlotting Adapting with confidence

Your Farm Your FutureDookie

Greg Ferrier

Farm Services Victoria

Feedlotting … outline

• ‘Pictures’ of feedlotting• Drivers behind feedlotting• The Victorian/Australian industries• Adapting with confidence

Feedlotting … a ‘picture’

‘Pictures’ of a feedlot?…… your words ………to describe a feedlot/feedlotting

(images/perceptions/experiences)

Feedlotting … outline

• ‘Pictures’ of feedlotting• Drivers behind feedlotting• The Victorian/Australian industries• Adapting with confidence

Beef and Veal Channel Share

0

5

10

15

20

25

30

35

40

Rolling quarters

shar

e (v

ol %

)

Butcher

Woolworths

Coles

Bi-Lo

IGA/Foodland

Aldi

Market/Deli

2006Fresh Beef and Veal LY TY LY TY

All butchers 30.3 29.9 29.7 29.1 26.8 28.0 29.9

All Supermarkets 63.3 64.1 63.6 64.7 67.6 66.6 63.1

Woolworths 28.4 29.7 29.4 31.9 33.7 33.2 28.0

Coles 18.4 20.1 18.8 19.7 18.2 19.1 21.6

Bi-Lo 6.0 2.5 4.5 1.3 3.5 1.5 1.5

IGA/Foodland 5.4 7.8 7.2 8.1 7.8 9.4 8.5

Aldi 1.6 2.7 1.8 2.9 1.8 3.0 3.1

Market/Deli/Other 6.4 6.0 6.7 6.2 5.6 5.4 7.1

Nov Dec

Source: Roy Morgan LY = Last Year TY = This Year

Jan - Dec Oct - DecDec

12 Months 3 Months 2007

Sha

re (

Vol

%)

Butchers (29.9%) managed to close the year with a slightly higher average share of beef and veal than Woolworths (29.7%), although the Woolworths’ share appeared higher for the last 4 months. The main movers were the same as in total fresh meat, with Coles/Bilo losing share, IGA and Aldi gaining share.

25-30% Domestic

65-70% Export

Climate impacts

Corryong (Vic)

10

12

14

16

18

20

22

24

26

28

30

32

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Te

mp

era

ture

(oC

)

1971-2000 Tmax

2030 Tmax low

2030 Tmax mid

2030 Tmax high

Corryong (Vic)

0

2

4

6

8

10

12

14

16

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Te

mp

era

ture

(oC

)

1971-2000 Tmin

2030 Tmin low

2030 Tmin mid

2030 Tmin high

Local climate impacts

CSIRO modelling

Other drivers

Grain suppliesDiversificationBusiness structureOther …. ?

Feedlotting … outline

• ‘Pictures’ of feedlotting• Drivers behind feedlotting• The Victorian/Australian industries• Adapting with confidence

National

ALFA/MLA survey

Aus. Feedlot capacity and numbers on feed

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

On feed Capacity

National - Victoria

No. on feed(March 2009)

44,816 (6.9%)

(Vic)

650,026(Total)

Capacity 79,532 (6.4%)

1,244,069

Utilisation 56% 52%

Victoria

ALFA/MLA survey

Vic. Feedlot capacity and numbers on feed

10,000

20,000

30,00040,000

50,000

60,000

70,000

80,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

On feed Capacity

Victoria (as at MAR 2009)

ALFA/MLA survey

Size Capacity No. on feed

<500 head 1,538 1,118(73% utilised)

500-1,000 3,995 1,996 (50% utilised)

1,000-10,000 18,533 9,385(51% utilised)

>10,000 55,466 32,317 (58% utilised)

Total 79,532 44,816

Planning considerations

PlanningPlanning permit required – Code complianceBroilers – Meat ChickensBeef (and Dairy) Feedlots – greater than 1000 headNo Planning permit required – Code compliance requiredBeef (and Dairy) feedlots less than 1000 head.

Planning permit required – No CodeEggs – Cage, Barn, Free RangeSheep Feedlots – Lamb finishing systemsIntensive poultry – turkeys, squab, quail

No Planning permit required Stock Containment Areas – emergency or supplementary feeding systems.

Planning permit required – regard to the CodePigs – Intensive, Eco-shelters

Victoria Code

Cattle feedlots - Code

Code has eight key elements:1. Location and size2. Design and construction3. Odour4. Noise5. Waste storage, treatment and use6. Traffic and parking7. Landscaping8. Operations and management

Cattle feedlots - auditing

• Pre-operational audit

• Annual audit

• Additional audit(s)

• Other audits … NFAS, e.g. ‘Woolies’

Feedlotting

• ‘Pictures’ of feedlotting• Drivers behind feedlotting• The Victorian/Australian industries• Adapting with confidence

Feedlots … plan, plan, planChanging/diversifying business strategy or

direction:• Does it fit the (whole) farm plan?• Are there capabilities (infrastructure, people

etc) to do this?• Is the supply chain solid?• Will the new business provide enough profit?• How are the products to be marketed?

With confidence?

A range of adaptation options is available, adapting with confidence reduces vulnerability

• Managerial e.g. farm practices• Technological e.g. heat/drought tolerant• Behavioural e.g. purchasing decisions

With confidence?A wide array of adaptation options is available, adapting with confidence reduces vulnerability• Managerial, e.g. farm practices• Technological, e.g. heat/drought tolerant• Behavioural, e.g. purchasing decisions

Though, there are economic, social, informational and attitudinal components in adapting with confidence

With confidence?

‘Local’