BPS Update to The Board

Transcription

1 CANEGROWERS Burdekin Ltd Newsletter Edition 2016/26 Distributed: Friday 15 July 2016 BPS Update to The Board On Tuesday of this week, Burdekin Productivity Services provided an update on recent activities to the Directors of Canegrowers Burdekin. The update included overviews on the following: False positives for RSD in the plots Seed cane orders: Rob advised there is an issue with growers ordering clean seed cane but then when it is time to pick it up growers want something else and this impacts on BPS. YCS: Rob provided an overview of the trials being undertaken for YCS on selected Home Hill farms. Itch Grass: BPS is working on the banks of some channels to prevent the spread of itch grass. SRA8: new varieties being trialled on two farms. Variety Trials: BPS are conducting 10 varieties trials. Gypsum and lime trials Fertiliser products trials Water Quality Monitoring via the mobile trailers Potassium trials Harvester speed trials Seed Cane Management Fee: dropped to $2 from $4. Goal is to get as much clean seed cane out as possible. Mark Vass has replaced Peter McDonnell as a Director on the BPS Board. In regard to the Water Use Efficiency Project, Rob advise of the benefits of the Irriweb tool. Including: every grower that is part of BPS can access this via BPS for free. Growers may need assistance to set up. BPS have some ability to offer one on one assistance. The tool provides weather data and models growth of the crop and provides weekly updates to say when to irrigate. Growers that use this tool will have the records needed to be compliant with BPS requirements. About 20 growers are using this now. BPS are looking to increase this to around 50 Smartcane BMP Update Terry Granshaw advised, in this region, 193 growers are now part of BMP representing 43,900 Ha. 169 growers representing 41,000 Ha have completed the self-assessment for the 3 key water quality modules. 18 growers representing 6,540 are now accredited and Terry is currently working with an additional 40 growers to become accredited. Terry s focus is on helping growers as much as he can. Terry can be contacted on BPS s Terry Granshaw, Chris Hesp & Rob Milla update the CBL Board on recent activities. CBL Director Greg Rossato pictured third from left. 1

2 Tonnes CCS CROP CRUSHED TO DATE Week 5 as at 09/07/2016 Crush statistics 100% 90% 2016 estimate 8,300,000 80% 70% 60% 50% 40% 30% 20% 10% 0% 880,576 tonnes 11% Burdekin CCS Per Week Week Burdekin Tonnes Cut Per Week Invicta Pioneer Kalamia Inkerman 350, , , , , ,000 50, , , ,955 22,993 33, Crush Week Final payment for 2015 season The updated Advances schedule for 2015 available on the grower web indicates that the final cane payment for the 2015 season will be made on Friday 22 July. For growers who did not participate in forward pricing the final cane price for 2015 is $ /t IPS. 2

3 Harvest Management Group Update Meeting The second meeting for the 2016 season was held on Wednesday at the Wilmar Burdekin Cane Supply Meeting Room located at Inkerman Mill. CANEGROWERS Burdekin Ltd was represented at the meeting by Member Services Manager Wayne Smith. New Grower Web Further training sessions are available for growers and harvest contractors by contacting Peter Pattinson at Wilmar on , Wilmar also advised there are a few further changes to be carried out on the Grower Web. Safety Wilmar officers are working with the Police Service in an effort to identify vandals that are interfering with any safety signage around any of the level crossings used by cane trains. Wilmar logistics officers have also been progressively checking on siding inductions in each mill area and have found that to date there is a very high level of completed inductions through the on line process. With an investigation pending into the recent incident where a driver was run over by a reversing truck operating at a siding Wilmar are expecting that the Workplace Health & Safety Division may bring forward planned siding audits. Mills Wilmar Burdekin Operations Manager Paul Turnbull said that last week s crushing was reasonable being 21k under budget with the overall crushing rate 48 tph below budget. The rain interrupted halt in crushing operations had been utilised to address issues and there is now a focus on building sufficient back up bagasse to assist in restarts. Paul reported on the issue that Invicta had with mud filter and a shredder that day which resulted in approx. 20% reduction in loadings for Wednesday. Inkerman Production Manager Glen Griggs reported there has been a 75% improvement in the loss of time caused by stops to access the marshalling yard, weighbridge and feeding station. Safety fencing installed around the structures and installations under the requirements of the Workplace Health & Safety Division has impacted on crushing operations as there is special processes required now to access. The stoppages on the mills cause interruption to operations and the boilers to react when load is taken off. Twenty cane bins were written off in the incident where the Cromarty loco and a brake van collided at the Barratta loop. The bins along with others will be replaced under Wilmar s ongoing bin maintenance and replacement program which along with loco commissioning is benefitting from the restructure implemented in the Burdekin late last year. The Cromarty and Kalamia locos are expected to be back in commission this week. Logistics officers have appealed to harvesting crews to try and not supply any partially filled bins as they can create delays in crushing operations when they jump the couplings (or piggy back) of other bins waiting to be tipped at the feeding station. The Season Crushing budget has been amended to factor in an additional 16 days for any weather related delays in crushing. The amended budget now indicates that crushing may extend well into December. The meeting was also informed that all mills logistics officers had plans in place to manage cane supply leading into forecast rain to avoid any burnt cane being left unharvested. AG HIRE Cultivating cane Hilling up cane Call Paul

4 High Flotation Tyre Permit Extended Peak lobby and representative group CANEGROWERS has been successful in negotiating a renewal for the use of high flotation tyres on Cane Haulout Trucks used in the harvesting sector of the sugar cane industry. The following gazetted notices for the use of high flotation tyres have been renewed for one year and can be accessed here: Queensland Class 3 Tandem Drive Axle (Cane Haulout Truck) Flotation Tyres Mass Exemption Notice 2016 Queensland Class 1 & Class 3 Agricultural Machines and Cane Bins Flotation Tyres Mass Exemption Notice 2016 Operators should note that the Haulout Truck notice contains information about accessing the Operating Manual that is required to be maintained as a record of systematically managing the risks associated with operating a Haulout Truck fitted with Flotation Tyres. Train in the rain CANEGROWERS Burdekin are offering members to undertake a certified first aid course for FREE, next Wednesday 20th July, 9am - 2pm at the CANEGROWERS Hall in Home Hill. Members are welcome to send up to two participants each which can include yourself, family members or employees. This is a very informative workshop with the members participating in the course a couple of weeks ago saying they enjoyed the training and learnt new skills to secure your spot. To book into the First Aid course call Other training being offered next week is a one day suicide intervention training hosted by CORES (Community Response to Eliminating Suicide) on Thursday 21st July at the PCYC, bookings essential. Phone Ross Romeo, CORES Co-ordinator to register for the suicide intervention training on or coresqld@kentishrc.com.au 4

5 Trade CANEGROWERS Queensland taking up the fight on all issues affecting cane farmers For the week ending 4 July2016 Brazil is pursuing preparations for a WTO case against Thailand s sugar policy structures. Thailand denied the EU and Guatemalan requests to join the WTO consultations. CANEGROWERS participated in a teleconference with Tate & Lyle Sugars to assess the implications of the UK vote to leave the EU (Brexit) for the forthcoming FTA negotiations between Australia and EU FTA. Britain has not yet formally commenced the exit process and is not expected to do so until later in the year. Electricity CANEGROWERS is scheduled to discuss electricity issues with Minister Mark Bailey on 14 July. Transport The change from FORM 14 zone 1 to zone conditions to allow for movement of up to 5.0m width agricultural vehicles on major and minor roads north of Rockhampton has been agreed to and is now with the National Heavy Vehicle Regulator for the notice to be gazetted. It is not known how long this process will take. Smartcane BMP BMP forum was hosted by QFF to present the various industry programs to key QDAF staff in addition to Smartcane BMP, there were presentations from Grazing BMP, Horticulture, Dairy, Cotton, and the Nursery industry. Mid-year reviews of each of the district BMP delivery contracts will be undertaken during July. 61% of Qld cane area is now benchmarked, with 8% of the cane area accredited. 70% of the accredited area is in the Wet Tropics. CANEGROWERS is recruiting for a new Policy Officer Position. This Brisbane based position is full time and the successful candidate will be working within an experienced policy team, to support the development and implementation of policy that is of state, national and international importance. Successful applicants will be asked to: Assist to develop policy positions and implementation plans Research issues relating to CANEGROWERS policy positions particular those associated with energy and environmental policies Collect and analyse data relevant to industry issues Assist with the preparation of Board papers and submissions Respond to requests from within and outside the organisation Engage with relevant stakeholders outside the organisation such as government, industry organisations and other rural bodies, as directed. For more information or do apply for the position please click here 5

6 Career research awards make the investment in capability, innovation and development Applications are open for Sugar Research Australia s (SRA) Early-Career and Mid-Career Researcher (ECR/MCR) Awards, which encourage innovative research ideas and seek to enhance the capability of the research sector that supports the Australian sugarcane industry. Dr Michael O Shea, General Manager of the Research Funding Unit at SRA, said the awards were an investment in professional development for people directly involved in the sugarcane industry. The awards are available for diverse activities, including for researchers who may require initial results or a proof of concept prior to developing a larger project, and who want to expand their skills and build collaborations in pursuit of an innovative initiative. SRA usually grants two ECR/MCR awards per year at a typical level of $10,000 to $15,000 per award, Dr O Shea said. They present a valuable professional development opportunity for researchers in the Australian sugarcane industry, to assist them to develop innovative and transformative projects that benefit sugarcane growers and millers. SRA is committed to investing in research that can be adopted on farm or in the mill, and providing a tangible and positive outcome for sugarcane growers and millers. All applications will be assessed in that context of their benefit to the industry. The benefits of the ECR/MCR awards should be aligned with the recently announced Impact Areas or Key Focus Areas within the current SRA strategic plan, available on the SRA website. Applications close on August 31, New sugarcane Nuffield report Sugarcane industry Nuffield Scholar Simon Mattsson has published a report on his 2014 Nuffield Scholarship, titled Making the most of your soil's biological potential: Farming in the next green revolution. The report address the importance of soil carbon, the role of soil biology in the nutrient cycle, and increasing plant diversity to enable increased biological diversity. You can read the report online here. SRA E-newsletter Friday 15 July edition of Sugar Research Australia s e- newsletter can be read by clicking here. Road Sign Vandalism A message from the Ayr Police Service by Steve Barton The 2016 sugar harvest is presently in full swing. A major contribution to the success of this harvest is the rail infrastructure that connects the field to the four sugar mills in the Burdekin. Some of these crossings are controlled by flashing red lights, however the majority are not. All crossings have signs advising drivers that they are approaching such crossings. These signs have been placed to enhance the safety of both road users and loco crews. Unfortunately in recent weeks, some ignorant drivers have been pushing these signs over with the bull bar of their vehicles. Not only does this behaviour amount to wilful damage, it also places the road safety of other road users in great danger. Both Burdekin Shire Council and Wilmar Sugar are in talks regarding investment in portable cameras to place at these sites. Should a member of the public have knowledge of who is responsible or sees this occurring, I would urge they contact Policelink on and provide as many details as possible. Quad Bike Safety Survey Workplace Health and Safety Queensland are conducting a survey on their public awareness campaign, Ride ready. Quad bike users are encouraged to complete a short online questionnaire to help understand how Ride ready is performing, how it can be improved and how it has affected attitudes and behaviours towards quad bikes. The survey is now open until 5pm, Friday 29 July 2016 by using this Link. 6

7 % Pricing information 2016 Season Advances & Payments as at 11 July 2016 $/tonne IPS Initial $ August 16 $302 % estimated return 20 October 16 $ December 16 $ January 17 $ % 23 February 17 $ % 23 March 17 $ % 20 April 17 $ % 18 May 17 $ % 22 June 17 $ % Final Payment $ % Waterfind Burdekin Haughton WSS Water Market Summary As at 15 July 2016 * paid The Advance Program is a guide only. CANEGROWERS Burdekin takes no responsibility for its accuracy. It only applies to growers who did not forward price for 2015 (the default method). Growers who have forward priced for 2015 will be paid the same percentage of their final expected proceeds. For individual advance rates check your grower forecast on the Wilmar website. Allocations Wilmar Indicative Future Sugar Prices as at 15 July 2016 Gross $/Tonne IPS Net 2016 Season $576 $ Season $530 $ Season $498 $ Season $471 $451 Dam Storage Estimated QSL Pool Prices As at 17 June 2016 $/Tonne IPS GROSS 2015 $/Tonne IPS GROSS 2016 QSL Harvest Pool $383 $521 QSL Actively Managed Pool $414 $550 The above information is provided by Waterfind. The information provided is of a general nature only and must not be relied upon in substitution for professional advice. Waterfind accepts no responsibility for the accuracy, completeness or timeliness of any information provided. For more information click here. QSL Guaranteed Floor Pool $408 $465 QSL US Quota Pool $695 $778 QSL 2-season Forward Pool $437 $477 QSL 3-season Forward Pool $442 $ Burdekin Falls Dam Assessable Capacity Percentage % 14 July Growers can monitor QSL pool performance via the Price Pool Matrices published on the QSL website ( This information is updated regularly and provides a sense of how the QSL-managed pools are performing over the current season Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 7

8 Marketing Choice Update QSL remains acutely aware that growers in the MSF Sugar, Wilmar and Tully Sugar areas are not in a position to choose QSL as a marketer today. We are working to put arrangements in place to allow growers to access QSL as a marketer and to begin pricing sugar for the 2017 Season and beyond as a matter of the highest urgency and importance. There have been some recent comments in the media regarding Wilmar s on-supply proposal and FOB (Free On Board) payment arrangements. As we are in continuing negotiations with Wilmar regarding their proposal, commercial confidentiality requirements mean that we cannot publicly comment on the details of this document, nor would it be in the spirit of the current negotiation process to do so. However, it should be recognised that FOB has not been the standard payment arrangement for Queensland sugar industry up to this point and while QSL has the capacity to access finance to enable this requested contractual change to occur, the real question is how this benefits the Queensland cane farming families that we serve. To read our full Q&As on this subject as well as our latest QSL Marketing Choice Update, click here: Australian Sugar Heritage Centre Project Update Last year the Australian Sugar Industry Alliance provided the Australian Sugar Heritage Centre Committee $50,000 to deliver a fully-costed Strategic Business Plan for the Australian Sugar Museum at Mourilyan. The Committee has appointed Townsville-based consultant Andrew Davis to deliver the Plan. To date, Mr Davis has undertaken a comprehensive Strategic Review of the Centre s operations and is due to report his initial recommendations at the Museum Committee s next Board meeting on 25 July. Mr Davis is in the process of engaging a design specialist to advise on a possible new look for the Centre, which includes more interactive displays and exhibits. It s important that key aspects of the industry s history, environmental stewardship, Best Management Practice and nutrition messages are included in any new-look Centre. The key objective of the project is to deliver a fully-costed strategic Business Plan that positions the centre as the modern, interactive, and educational centrepiece of the Australian sugar industry. Mr Davis will be looking for broader feedback on of his recommendations and concepts as the project progresses. You can visit the Australian Sugar Heritage Centre s website here: 8

9 QSL s market view remains strong As at 15 July, 2016 As raw sugar prices continue to provide strong returns, here s the QSL s Treasury team s must watch areas over the short-tomedium term. Short -Term Bearish Factors Short-Term Bullish Factors Specs at record net-long positions (300,000+) so threat of liquidation hangs over market. Positive start to Brazilian crush hampered by rains over the second half of June. USA Federal Bank is looking more dovish post BREXIT and likely to delay further rate rises. Producers are already well-priced in the front contracts. Stronger Real eliminates immediate producer pricing appetite. Lower local inflation forecasts have changed AUD/ USD outlook. Medium/Longer-Term Bearish Factors Medium/Longer-Term Bullish Factors Risk of global production reacting more quickly to higher prices. 2016/17 Indian and Thai crops have been marked down versus 2015/16. Brazil outperforms at the same time India receives encouraging monsoons. Re-bound in oil, dragging sentiment in commodities higher. Risk that Brazilian Real retraces back above Thai expansion for 2016/17 expected due to co-generation and ethanol policy provides ongoing support for sugar producers. Statistical deficit in 2015/2016 now supported by a tightening in trade flows, into 2016/17. Australian economic data remains weak, fuelling a lower currency. New Brazilian Government, yet to be decided, may bring about positive economic change and support BRL. Note when referring to markets, a bearish sentiment generally means a weaker outlook, versus a bullish sentiment, which usually means a more positive outlook for the market. QSL expects market volatility to remain high as sentiment swings between technical short-term and fundamental mediumterm drivers, with particular attention paid to shifts in the spec position and UNICA (Brazilian Sugarcane Industry Association) updates for the Brazilian crush and Indian rainfall results. The Australian dollar consolidating back into US72-75 cent range post-brexit and local political uncertainty. With further rate cuts likely (60% priced into August), the AUD should cap out at US75 cent levels. The variable remains, where US economic recovery and a commodity price cycle is driven by Chinese growth. In the medium- long term, the AUD remains vulnerable to further downside pressure toward US70 cents. At these levels, it is possible to see further easing from the RBA. 9

10 DATES TO REMEMBER Sugar Industry Calendar Click here CANEGROWERS Burdekin Ltd Would you like to advertise in canenews? to receive more information Payroll CANEGROWERS Burdekin can help your business by providing the following professional services at a reasonable cost. Take advantage of our services today. Phone Melissa Bookkeeping Media Website Company Secretary Click here for more information 10

11 Contact Us HEAD OFFICE 141 Young Street, Ayr Office Hours Mon - Thurs: 9am - 5pm Fri: 9am - 3pm PROJECT & TRAINING CENTRE CANEGROWERS Hall, 68 Tenth Street, Home Hill canenews is read by the majority of Burdekin cane farmers and their families in the Burdekin. Copies are also circulated to all CANEGROWERS Offices, businesses, industry, politicians, Government Agencies and members of the community. Published Weekly by: CANEGROWERS Burdekin Limited Debra Burden General Manager Wayne Smith Manager: Member Services ABN: Postal Address: PO Box 933, AYR QLD 4807 Telephone: (07) Facsimile: (07) bdk@canegrowers.com.au Michelle Andrews JP (Qual) Manager: Finance & Admin Please direct all advertising enquiries and materials Tiffany Giardina Payroll & Administration Racheal Olsen Insurance Manager Mel De Domenico Administration Officer DIRECTORS Phil Marano Chair Owen Menkens Deputy Chair address: firstname_lastname@canegrowers.com.au marano@bigpond.com owen_menkens@hotmail.com Steven Pilla mpbella@bigpond.com.au Roger Piva rogerdpiva@gmail.com Sib Torrisi sibbyt58@bigpond.com Disclaimer In this disclaimer a reference to CBL, we, us or our means CANEGROWERS Burdekin Limited and our directors, officers, agents and employees. This newsletter has been compiled in good faith by CBL. Although we do our very best to present information that is correct and accurate, we make no warranties, guarantees or representations about the suitability, reliability, currency or accuracy of the information we present in this newsletter, for any purposes. Subject to any terms implied by law and which cannot be excluded, we accept no responsibility for any loss, damage, cost or expense incurred by you as a result of the use of, or reliance on, any materials and information appearing in this newsletter. You, the user, accept sole responsibility and risk associated with the use and results of the information appearing in this newsletter, and you agree that we will not be liable for any loss or damage whatsoever (including through negligence) arising out of, or in connection with the use of this newsletter. We recommend that you contact CBL before acting on any information provided in this newsletter. Greg Rossato greg_rossato@outlook.com Burdekin Cane Auditors Workplace Coordinators Site Name Phone Inkerman Vicki Lewis vicki@burdekincaneaudit.com.au Kalamia Ray Collinson ray@burdekincaneaudit.com.au Pioneer Geraldine Cantarella geraldine@burdekincaneaudit.com.au Invicta Mark Saunders mark@burdekincaneaudit.com.au