Managing Indigenous Pastoral Lands

MANAGING INDIGENOUS PASTORAL LANDS

ISBN 978-1-74254-630-8 ISSN 1440-6845

Managing indigenous pastoral lands manual Publication No. 14/014 Project No. PRJ-008777

The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances.

While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication.

The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors.

The Commonwealth of Australia does not necessarily endorse the views in this publication.

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to RIRDC Communications on phone 02 6271 4100.

Researcher Contact Details

Bob McClelland McClelland Rural Services Pty Ltd 49 Gardenia Drive Birkdale QLD 4159

Email: [email protected]

In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form.

RIRDC Contact Details

Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600

PO Box 4776 KINGSTON ACT 2604

Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au

Electronically published by RIRDC in February 2014 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313 introduction to the manual

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd Disclaimer

The information contained in this publication is intended for general use to assist Indigenous pastoralists, their advisors and other stakeholders. It includes general statements based upon scientific research and, in the instance of the Case Studies, information supplied by the operators of these businesses and their advisors.

Readers are advised that this information may be incomplete or unsuitable for use in specific situations. Whilst all care has been taken to ensure that all information is true and correct at the time of publication, McClelland Rural Services Pty Ltd gives no warranty or assurance, and makes no representation as to the accuracy of any information or advice contained in this publication. Before taking any action or decision based upon the information in this publication, readers should seek expert professional, scientific, technical and legal advice.

To the extent permitted by law, McClelland Rural Services Pty Ltd (including its employees and consultants), the authors and its partners do not assume liability of any kind whatsoever resulting from any person’s use or reliance upon the contents of this document.

2 INTRODUCTION Contents

Disclaimer 2 Manual contents 5 Introduction to the manual: Managing Indigenous Pastoral Lands 7 Project Area 7 Indigenous Pastoral Lands 7 Modular Approach to Management 8 Case Studies 9 Stakeholders 9 Acknowledgements 11 Acronyms and Abbreviations 13

3 MANUAL CONTENTS

1. Business Management 4. Property Management Introduction 3 Introduction 3 Business Plan 5 Station Maps 5 Governance 12 Cultural Heritage Information 9 Recording and Budgeting Beef Climate and Weather Information 9 Production and Costs 17 Property Infrastructure 12 Bookkeeping and Accounting 22 Livestock Identification 29 Beef Business Performance 24 Herd Management Systems 37 Assessing the Performance of the Herd 27 Livestock Production Assurance 38 Sensitivity and Breakeven Analysis 30 Financing Arrangements 31 5. Grazing Land Management Introduction 3 2. Markets And Marketing Grazing Systems 12 Introduction 3 Land Condition Management 16 Markets 4 Controlling Cattle Distribution 22 Market Information Sources 10 Fire Management 23 Marketing Strategies 12 Weed Management 29 Selling Methods for Marketing Options 19 Managing Woodland Thickening 34 Stock Movement Regulations Feral Animal Control 35 and Assurances 22 Responsibilities if Leasing Out Your Land 38 3. Land Information Sources of information used Introduction 3 in this module 39 Indigenous Land Rights and Pastoral Land Holdings 5 6. Herd Management & Production Land Tenure 10 Introduction 4 Indigenous Land Holding Managing Breeders and Heifers 6 Arrangements in the Northern Territory 11 Bull Management 25 Indigenous Land Holding Bull Selection and Genetic Arrangements in Queensland 12 Improvement 28 Indigenous Land Holding Weaner Management 38 Arrangements in Western Australia 14 Supplementation 46 Role of Land Councils 18 Hormonal Growth Promotants 62 Land Use Agreements 20 Workshops to Attend for this module 64 Mining Tenures and Income from Mining on Indigenous Land 22 Sources of Information Used in this Module 65

4 back to top 7. Husbandry, Health And Welfare Case Study 1: Warrigundu Station Introduction 3 Northern Territory Husbandry 4 Executive Summary 3 Health 15 Land and Property Information 8 Welfare 37 Business Management 13 Sources of Information Used Markets and Marketing 16 in this Module 49 Grazing Land Management 18 8. Human Resource Management Herd Management and Production 20 Husbandry, Health and Welfare 23 Introduction 3 Human Resource Management 24 Organisation Structure 4 Diversification 26 Staff Employment 6 Staff Recruitment and Retention 10 Case Study 2: Delta Downs Station Staff Training 12 Queensland 9. Diversification Executive Summary 3 Other Income Earning Land and Property Information 6 Opportunities Business Management 12 Markets and Marketing 16 Introduction 3 Grazing Land Management 17 Sub-leasing or Letting Grazing Licences 5 Herd Management and Production 18 Agistment 8 Human Resource Management 21 Contracting 9 Diversification 23 Employment on Non-Indigenous Cattle Stations 11 Case Study 3: Lamboo Station Employment as Rangers 11 Kimberley, WA Mining Royalties and Employment 12 Executive Summary 3 Operating an Indigenous Training Business 12 Land and Property Information 7 Tourism 13 Business Management 13 Small Scale Abattoirs 14 Markets and Marketing 17 Carbon Farming 17 Grazing Land Management 17 Herd Management and Production 18 Husbandry, Health and Welfare 20 Human Resource Management 21 Diversification 23 Attachment 1: Example of Lamboo Station Workplan 24

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Introduction to the manual: Managing Indigenous Pastoral Lands

The Manual for Managing Indigenous Pastoral Lands has been prepared as a component of the Northern Australia Beef Industry Strategy Indigenous Pastoral Project, an Australian Government project, under the Northern Australia Sustainable Futures Program. The project is administered and funded by the Department of Agriculture, Fisheries and Forestry, and managed by the Rural Industryies Research and Development Corporation. Project Area The project area encompasses pastoral zones of beef cattle production across three jurisdictions of northern Australia, being the northern part of Western Australia (WA), all of the Northern Territory (NT) and all of Queensland (Qld).

Indigenous-owned pastoral land in northern Australia is concentrated in the following regions:

WA : Kimberley Pilbara Gascoyne NT: Victoria River District Top End Arnhem Land Sturt Plateau Gulf Country Alice Springs and Central Australia Qld: Cape York Peninsula Gulf Country Central Queensland

Beef production in this vast area is carried out across a diverse range of grazing ecosystems in tropical and subtropical climates. These range from high rainfall monsoonal zones in the far north to low rainfall areas on the edges of deserts in central Australia. Livestock graze on a variety of land types including open woodlands, flood plains and treeless downs.

The live cattle export trade is the marketing focus of the beef cattle industry in northern WA and the Top End of the NT. Both the domestic and export beef markets are the focus of the beef cattle industry around Alice Springs, the Barkly region of the NT and Qld. There are significant variations across jurisdictions relating to land tenure, livestock and transport regulations, funding and extension services.

Indigenous Pastoral Lands Indigenous pastoral lands associated with beef cattle production in northern Australia, are characterised by:

• significant areas of Indigenous land ownership • limited number of properties with large herds and sustainable operations • many properties with small herds and pastoral businesses that struggle financially • properties which are sub-leased or lying idle • market constraints and long distances to domestic markets • inability to source credit to finance cattle for herd establishment and/or expansion • high staff turnover and/or reliance on contractors. 6 back to top INTRODUCTION managing indigenous pastoral lands

Whole communities often live on these pastoral lands or in nearby centres that are close to Indigenous pastoral stations. Most of these community residents see the pastoral property as their traditional land. While some residents are involved in the pastoral enterprise, many live on the properties for social and cultural reasons. Many pastoral communities are located in areas of economic activity involving mining and tourism.

Modular Approach to Management The Manual’s primary objective is to provide Indigenous pastoralists with the necessary information to run viable and sustainable businesses. It is directed at a wide range of Indigenous pastoralists, ranging from larger operations through to those battling with small herd numbers. The target Indigenous audience includes Traditional Owners, Managers, Head Stockmen and young people wishing to advance their knowledge of beef cattle management. The Manual is also relevant to lessors, lessees and Indigenous contractors. Benefits also extend to income earning opportunities for pastoral communities in general.

The Manual is a source of information for all Indigenous pastoral communities and their support base including policy makers, regulators, Pastoral Lands Boards, Land Councils, Indigenous Land Corporation (ILC), extension support staff, industry bodies (including Meat and Livestock Australia), training providers, environmentalists, mining companies and tourist operators.

The Manual is divided into practical management modules to assist northern Indigenous pastoralists in their goal to run profitable and sustainable commercial pastoral businesses. Each of the following modules presents best practice technical information and procedures, as well as management checklists, tools and information sources:

• Module 1 Business Management • Module 2 Markets and Marketing • Module 3 Land Information • Module 4 Property Management • Module 5 Grazing Land Management • Module 6 Herd Management and Production • Module 7 Husbandry Health and Welfare • Module 8 Human Resource Management • Module 9 Diversification and Income Earning Opportunities • Appendix for Case Studies

The content of the modules was determined based upon qualitative data collection through semi-structured interviews and quantitative data collection through structured surveys. These interviews and surveys were conducted with Indigenous stakeholders and associated extension officers. Interview/survey questions were aligned with the information, knowledge and skills required to run a successful and viable pastoral operation. The research indicated a high need for information across all modules. It also highlighted specific sub-topics within each module that required additional emphasis; for example ‘Alternative Markets’ in Module 2 Markets and Marketing.

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Each module has an introduction and checklists contained in coloured text boxes which provide ready references to key management issues.

Case Studies Case studies providing examples of practical management systems that are used by three representative Indigenous pastoral businesses are provided in the Appendix.

A case study from each jurisdiction was selected:

Qld: ‘Delta Downs’ demonstrates sustainable long term Indigenous ownership and management of a large cattle enterprise.

NT: ‘Warrigundu Station’ demonstrates a focus on development, integration and training by its lessee, ILC.

WA : ‘Lamboo Station’ demonstrates the issues and possible diversification solutions that face smaller ventures that lack sufficient cattle numbers and finance for a sustainable pastoral business.

Key questions and topics canvassed in the case studies included:

• how the business was set up • suitability of the land for cattle production • cattle numbers at the commencement of the business • marketing arrangements • infrastructure development • sources and availability of funds.

Stakeholders During the consultation phase, many stakeholders across the three jurisdictions were invited to provide information and their suggested information requirements. This input was subsequently used to assist in designing and developing the modules. These stakeholders included:

• Traditional Owners • Indigenous Managers and Stockmen • Other Indigenous organisations • Non-Indigenous pastoralists • WA Department of Agriculture and Food including Indigenous Landholder Services • Indigenous Pastoral Program Officers in NT including: »» Representatives of Land Councils »» ILC »» Northern Territory Cattlemen’s Association »» NT Department of Primary Industry and Fisheries

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• ILC Staff • State or Territory Land Services • Agricultural and Primary Industry Departmental Officers • CSIRO • Training providers and institutions • Consultants

Importantly, the preparation of the Manual has received the ongoing support of FutureBeef and Meat and Livestock Australia (MLA). Both organisations see the Manual as a means to provide Indigenous pastoralists with information to assist them manage their businesses more profitably; and also become more integrated with the northern Australian beef industry.

The FutureBeef Program for northern Australia is an extension and communication collaboration between the Qld Department of Agriculture, Fisheries and Forestry, NT Department of Primary Industry and Fisheries, Department of Food and Agriculture WA and MLA. These organisations are working together for profitable and sustainable northern beef production. FutureBeef has made available some of their best practice technical information to the Manual.

MLA has made available material from their marketing and research and development programs, as well as best practice extension information about improving productivity and sustainability. This material will help to support effective engagement with Indigenous pastoralists in northern Australia.

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Acknowledgements

The preparation of this Manual would not have been possible without the generous assistance of many people and organisations, especially during consultations in Western Australia, the Northern Territory and Queensland. The contributions of the following persons and organisations are gratefully acknowledged:

• Indigenous cattle producers • Non-Indigenous cattle producers • Management and staff of Case Study Properties from Lamboo Station, Warrigundu Station and Delta Downs • Indigenous Land Corporation • Indigenous Land Services personnel in WA including Kimberley Indigenous Management Support Services • Indigenous Pastoral Program (IPP) personnel in NT including representatives from: »» Northern Land Council »» Central Land Council »» NT Department of Primary Industry and Fisheries »» Indigenous Land Corporation »» Northern Territory Cattlemen’s Association • WA Department of Agriculture and Food • WA Department of Regional Development and Lands • Queensland Department of Agriculture, Fisheries and Forestry • FutureBeef • Institutional and private training providers • Private consultants • Meat and Livestock Australia • Beef Central • Beyond Billabong • Rural Industry Training and Extension • Resource Consulting Services • Live cattle exporters For Reviewing

• David Counsell • Anne Maree Huey, WA Department of Agriculture and Food • Geoff Fordyce, Queensland Alliance for Agriculture and Food Innovation • Mick Sullivan, Queensland Department of Agriculture, Fisheries and Forestry • Peter Smith, Western Australia Department of Agriculture and Food

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Our Editor – Anne Maree Weston

Authors – McClelland Rural Services Pty Ltd

Bob McClelland: Principal Investigator Noel Haug: Agricultural Economist Felicity Hamlyn-Hill: Beef Extension Specialist Steve Craig: Indigenous Liaison Specialist

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Acronyms and Abbreviations

Acronyms and Name Abbreviations 3P Perennial, palatable and productive (grasses) AACV Australian Association of Cattle Veterinarians ABA Aboriginal Benefits Account Australian Bureau of Agricultural and Resource Economics and ABARES Sciences ADC Aboriginal Development Commission ADG Average Daily Gain AE Adult Equivalent AGM Annual general meeting ALRA Aboriginal Land Rights (Northern Territory) Act 1976 ALT Aboriginal Land Trust APVMA Australian Pesticides and Veterinary Medicines Authority ATP Authority to Prospect ATSI Aboriginal and Torres Strait Islander BBSE Bull Breeding Soundness Examination BEF Bovine ephemeral fever BOM Bureau of Meteorology BTEC Brucellosis and Tuberculosis Eradication Campaign BVDV Bovine viral diarrhoea virus CAPEX Capital expenditure CATSI Corporations (Aboriginal and Torres Strait Islander) Act 2006 CDEP Community Development Employment Projects CFA Culled for age CFI Carbon Farming Initiative CLC Central Land Council CoP Cost of Production CSIRO Commonwealth Scientific and Industrial Research Organisation DAFF Department of Agriculture, Fisheries and Forestry DAFWA Department of Agriculture and Food Western Australia DC Days to Calving DEEWR Department of Education, Employment and Workplace Relations DIDP Defence Indigenous Development Program DPIF Department of Primary Industry and Fisheries (NT) DW Dressed Weight EBIT Earnings Before Interest and Tax EBV Estimated Breeding Value EMA Eye Muscle Area ESCAS Export Supply Chain Assurance System ESI Export Slaughter Interval

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Acronyms and Name Abbreviations EU European Union EUCAS European Union Cattle Accreditation Scheme Department of Families, Housing, Community Services and FAHCSIA Indigenous Affairs FBT Fringe benefits tax GCA Gulf Communities Agreement GMS Gunbalanya Meat Supplies GST Goods and services tax IAUA Indigenous Access and Use Agreement (Qld) IBA Indigenous Business Australia ILC Indigenous Land Corporation ILS Indigenous Land Service (WA) ILUA Indigenous Land Use Agreement (Qld) IMF Intramuscular fat IPP Indigenous Pastoral Program IWS Indigenous Wage Subsidy program KAC Kurtjar Aboriginal Corporation KIMSS Kimberley Indigenous Management Support Services KLC Kimberley Land Council LAA Land Administration Act 1997 (WA) LHRPHC Lawn Hill and Riversleigh Pastoral Holding Company LLN Language, Literacy and Numeracy LPA Livestock Production Assurance LW Liveweight M8U Mixture of molasses & urea MLA Meat and Livestock Australia MMPC Morr Morr Pastoral Company Pty Ltd MP Molasses & protein meal MRL Maximum Residue Limit MRS McClelland Rural Services Pty Ltd MSA Meat Standards Australia MUP Mixture of molasses, urea & protein NAC Ngunjiwirri Aboriginal Corporation NAFI Northern Australia Fire Information NAMF Northern Australia Ministerial Forum NIRS Near infrared spectroscopy NLC Northern Land Council NLIS National Livestock Identification System NLRS National Livestock Reporting Service NNTT National Native Title Tribunal

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Acronyms and Name Abbreviations NPAT Net Profit After Tax NTA Native Title Act 1993 NTCA Northern Territory Cattlemen’s Association NTRB Native Title Representative Body NVD National Vendor Declaration OH&S Occupational Health and Safety ORIC Office of the Registrar of Indigenous Corporations P Phosphorous PAYE Pay as you earn PAYG Pay as you go PI Persistently infected (animals with disease) PIC Property Identification Code PILS Pilbara Indigenous Landholder Services PL Petroleum leases PLUA Pastoral Land Use Agreement (NT) PPM Parts per million PT Pregnancy Tested PTE Pregnancy Tested Empty PTIC Pregnancy Tested In Calf PWD Post-weaning diarrhoea QAAFI Queensland Alliance for Agriculture and Food Innovation QDAFF Queensland Department of Agriculture Fisheries and Forestry RBY Retail Beef Yield RCS Resource Consulting Services RFID Radio Frequency Identification Device RIRDC Rural Industry Research and Development Corporation RITE Rural Industry Training and Extension RJCP Remote Jobs and Communities Program RPL Recognition of prior learning RTO Registered Training Organisation SOI Southern Oscillation Index SS Scrotal size (circumference) in bulls SWOT Strengths, Weaknesses, Opportunities and Threats TO Traditional Owner Western Australia Aboriginal Affairs Planning Authority Act WAAAPA 1972 WAFM A West Arnhem Fire Management Agreement WH&S Workplace Health and Safety WHP Withholding Period

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MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 1business management Contents

Introduction 3 List of Tables Business Plan 5 Table 1.1 SW OT Analysis for Indigenous Pastoral Business What is a Business Plan? 5 in Northern Australia 7 Business Objectives 5 Table 1.2 L ivestock Return Glossary 19 SWOT Analysis 6 Table 1.3 B ookkeeping and Governance 12 Accounting Functions 22 What is Governance? 12 List of Figures Governance in Practice for Indigenous Figure 1.1 Exam ple of a Corporations 12 Livestock Return 18 Governance Models 14 Figure 1.2 The armF Business Model 24 Training and Support for Governance 14 List of Photos Recording and Budgeting Beef Cover Photo – business tools Production and Costs 17 Photo 1.1 Engaging Young People 4 Livestock Records 17 Photo 1.2 P lanning at Ullawarra Costs Records 20 Station, WA 11 Finance Costs 21 Photo 1.3 Co ra Johnson, Capital Costs 21 Myroodah Bookkeeper, Bookkeeping and Accounting 22 WA 23 Beef Business Performance 24 Business Model 24

Calculating Gross Income 25 back to start of manual Calculating Gross Margins 25 Calculating EBIT (or Operating Profit) 25 Calculating NPAT 25 Management Accounting Formula 26 Cash Flow Statements 26 Cash Flow Budgeting and Analysis 26 Assessing the Performance of the Herd 27 Price Received 27 Calculating Cost of Production 27 Operating Margin 28 Herd Modelling 29 Sensitivity and Breakeven Analysis 30 Financing Arrangements 31 Workshops to Attend 32

2 MODULE 1 business management

Introduction

Module 1 covers the key areas of business management appropriate to an Indigenous-owned pastoral enterprise in northern Australia. These areas are business planning and governance, recording and budgeting, and how to measure business performance. Goals Business management will assist you in attaining your goals of running a sustainable beef cattle business on your land, engaging young people, and offering properly paid jobs. Business Planning A business plan is an essential tool to run a successful and profitable business. Planning assists owners and managers to define goals and objectives and decide the type of beef cattle enterprise and herd management activities to undertake. With proper records, budgets and forecasts, you can establish operating and financial measures to evaluate your performance and business success.

The Indigenous Land Corporation (ILC) requires that Indigenous pastoral businesses that are seeking funds to commence or conduct their business have a current business plan. This is important as the ILC is often the main source of finance for Indigenous property acquisitions, infrastructure and socio-economic development. SWOT A Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis is a key component of the business planning process. A SWOT analysis of northern Indigenous cattle operations is provided in this module. This will assist you to follow a strategic approach to managing your pastoral business. In particular, there is a need to capitalise on the main strengths of land ownership and association with country, and tap the potential of young people in local communities by providing employment. Governance The Boards of Indigenous pastoral corporations have to consider the wishes of Traditional Owners (TOs), and need to consider both cultural and corporate governance when planning, setting strategic directions and overseeing the management of the business.

Management must satisfy its stakeholders by making a profit for its shareholders, producing beef which meets the specifications of its customers, and providing rewarding employment for its staff.

Management needs to deploy skilled staff to maintain and develop land and cattle resources, and therefore there is a need to educate, train and develop people from Indigenous communities. Business Records, Accounting and Analysis Many pastoral beef businesses in northern Australia operate in remote and risky environments. Boards and management must make budgeting decisions in many varied situations. Often there may be a shortage of cattle and financial resources, as well as challenging market conditions.

This module provides guidelines on the records necessary for management accounting. Properly kept records help in operations, management and analysing business performance.

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Photo 1.1 Engaging Young People

Courtesy “Beef Central”

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Business Plan What is a Business Plan? A business plan is a document that describes your business, its objectives, strategies, target market and financial forecasts. It’s a blueprint to your business’s future.

Business plans can vary enormously in length, style and content, but the key is to ensure the document is realistic, practical and regularly reviewed. It should not only set the direction for your business, but act as a reference point for measuring performance.

Having a business plan will help you:

• apply for finance from a funding organisation such as the ILC • apply for government support • secure investors, sponsors, suppliers and staff • clearly outline your goals and long-term vision • determine the commercial viability of the pastoral business • examine your business idea from many different angles • test your commitment and motivation • identify your business’s strengths, weaknesses, opportunities and threats • develop strategies to successfully operate and market your business • identify the major risks to your business success and develop strategies to reduce risk or respond to risk situations • develop annual budgets and medium term forecasts of where you want the business to be • establish operating and financial measures to evaluate your business success, including recording and accounting systems.

Having a detailed business plan is one of the most important tools you can have to ensure that your business has every chance of meeting its goals. Business Objectives Your business objectives could include:

• achieving annual profits and returning a dividend to the Traditional Owners and/or community • employment creation and training • social and economic development for the local community • preserving the culture of the Traditional Owners • looking after country.

For most pastoral businesses in northern Australia, the business objectives are likely to be a combination of all of these.

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SWOT Analysis SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a useful tool to use when developing a business plan. A well completed SWOT analysis forces you to properly consider all the strategies and actions your pastoral business could implement to achieve the business objectives.

Whilst developing this manual, the project team consulted groups of Indigenous pastoralists and their advisers about the main factors that currently affect their businesses. These factors were placed in context using a SWOT analysis to gain a more strategic understanding of Indigenous beef cattle businesses in northern Australia. The industry-wide SWOT analysis that resulted is included in Table 1.1 SWOT Analysis for Indigenous Pastoral Business in Northern Australia. This table could be used as a template to follow when planning your business.

Following the SWOT analysis, your business plan should include strategies or actions which address each of the issues identified in the SWOT.

For example, an opportunity identified in Table 1.1 is ‘Sub-leasing or agistment’. After consideration, the business plan may include a strategy as follows:

Strategy: Sub-lease the portion of the property that is currently underutilised due to lack of cattle or inability to purchase additional cattle to increase the herd.

Presumably, the implementation of this strategy would result in income for the Indigenous pastoral business, at the same time as addressing several weaknesses in the business that were identified in the SWOT analysis; that is small scale, lack of cattle and inability to borrow to purchase additional cattle. The Board may elect to:

• permanently sub-lease the land to earn ‘passive’ rental income or • sub-lease the land for a shorter period, enabling it to earn income from the land and direct that money towards the eventual investment in more cattle to build its own business. In following this process, you have demonstrated that you have considered everything you need to, made a decision and then documented the objectives, strategies and actions that need to be put in place. As stated above, having it documented makes it a lot easier to communicate to financiers, government departments, your staff and communities.

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Table 1.1 SWOT Analysis for Indigenous Pastoral Business in Northern Australia

STRENGTHS WEAKNESSES Land ownership Small scale Cultural attachment to land Lack of cattle Community labour force Lack of finance including red tape Historical association with pastoral industry Caveats over land restricts borrowing Access to good operational skills High transport costs to southern markets Regional access to live export markets Low cattle prices and high costs of production Inaccessible during wet Conflicts of interest amongst Traditional Owners Aging leaders Low literacy and numeracy Poor communication facilities (phone, internet) Limited markets for cattle breeds that are best suited to these regions OPPORTUNITIES THREATS Business planning including goal setting Market quotas or bans New markets and better information Uncertain lease renewals Find mentors Animal activists banning live exports Jobs and fill management roles Welfare is an easier option Educate youth Drugs and alcohol Training in husbandry, management, Climate change leadership, governance, IT Access extension services Access funds for infrastructure (e.g. ILC) Sub-leasing/agistment Combine landholdings to achieve economies Tourism Community meatworks Off-farm employment Contracting Rangers Royalties Goat & camel enterprises Carbon farming

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It may seem like a lot of work at the outset, but a well prepared business plan can save you time and money in the long run and help you secure major contracts or funding. There are no rules about what your plan should cover, or the level of detail it should contain, but it’s worth considering the ILC guidelines for business plans.

As ILC is an important source of grants and debt finance for many Indigenous pastoral businesses in northern Australia, it is suggested that you follow ILC’s detailed requirements for business plan submissions for land acquisitions, infrastructure development and socioeconomic development. These requirements are listed below with references to the relevant modules in this manual, where more information may be found.

1. Overview a. Your business proposal. b. The nature of the venture. 2. The Corporation The structure of your corporation in legal, financial and operational terms.

a. The current financial position of your corporation, including an up-to-date statement of your assets and liabilities (balance sheet). b. If your corporation already conducts a business, include the last three years’ cashflow statements, income (profit & loss) statements and balance sheets. c. The key people in your corporation, including an outline of their roles, responsibilities and their stake in the venture (See Human Resource Management Module 8). d. Skills, qualifications and experience of office holders of your corporation directly involved in the venture or other relevant project areas/industry. e. Your knowledge and practice of sound corporate governance principles such as participation in relevant training seminars, previous business management history (See Business Management Module 1). 3. The Business a. The external influences that affect the venture in terms of the current market environment, labour requirements and availability, method for marketing the products and capital demands (See Markets and Marketing Module 2). b. Any existing legal and informal business relationships and arrangements. c. The performance of the industry, business or service regionally, with particular regard to any environmental issues that may affect the venture (See Land Information Module 3 and Grazing Land Management Module 5). d. Proximity to markets, key services, inputs, labour, expertise and professional assistance (See Markets and Marketing Module 2). e. Any competitive advantage that your enterprise, region, product or service has. f. Your business partners; their experience and expertise, and the skills and resources they bring to the business.

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g. Your business structure, including a description of any joint arrangement and proposed equity sharing between stakeholders (See Governance section in Business Management Module 1) h. The cash flow, income (profit & loss) statements and balance sheets for the last three years if you are acquiring an existing business. 4. The Plan a. A detailed management plan, calendar of events and production assumptions (See Herd Management and Production Module 6). b. Identified risks and related management strategies for issues such as disease, production loss, environmental, management, political and legal issues (See Husbandry Health and Welfare Module 7). c. Description of infrastructure, plant, equipment and other assets. Include the level of development required listing cost, maintenance, replacement cycle and expertise required (See Property Management Module 4). d. Human resource planning and development involving training, education and any requirement for outside expertise. Include a description of the individuals involved, staffing levels and management of staff, succession plans and the management of risk associated with management and staff (See Human Resource Management Module 8). e. The mentoring, training and development schedule that will facilitate transfer of knowledge and skills to the applicant group (See Human Resource Management Module 8). f. Market development strategies are based on the expected enterprise capacity and production. Include any development proposals for alternative market options, key market assumptions for production, price and product specification. Also include any identified risks and management strategies (See Markets and Marketing Module 2). g. The management, operational and legal structures for the business including monitoring and reporting regimes, key performance indicators and critical success factors for all elements of the enterprise (See Recording and Beef Business Performance sections in Business Management Module 1). h. For rural businesses, a description of the natural resource base and a plan for management of natural resources, including utilisation and monitoring of water, pasture, stocking rates (if appropriate) and ecological sustainability of the proposed business. (See Property Management Module 4 and Grazing Land Management Module 5). 5. Financial Analysis of the Business Plan a. Cash flow budgets (forecasts) for a minimum of three years and preferably five years. Cash flow budgets should reflect the specific enterprise or project planning undertaken rather than industry averages or benchmarks and be based on conservative estimates, including Goods and Services Tax (GST). Included should be a verifiable explanation of how the assumptions have been made (See Cash Flow Analysis section in Business Management Module 1). b. Sensitivity analysis based on key assumptions such as changes in beef prices, expenses, herd productivity, interest rates, etc. (See Sensitivity Analysis section in Business Management Module 1). c. Break even points for the key products. (See Breakeven analysis section in Business Management Module 1). 9 back to top MODULE 1 business management

d. Industry benchmarks - comparative analysis of enterprise and business projected performance against local, regional and industry benchmarks. e. Analysis of liquidity and debt servicing ability. f. Level of investment of applicant(s) and partners in the business including direct financial investment and investment of plant and equipment. g. Finance structure and any repayment schedule. h. Potential risks to financial performance and how such risks will be minimised and managed. 6. Monitoring and Evaluation a. How progress against the business plan will be monitored. b. Details of who will have responsibility for implementation and monitoring of the plan. c. Details of what will be monitored. d. The key milestones and benchmarks by which the business will be monitored.

Business Plan Checklist

Proposal - business objectives.

Detailed management plan, calendar of events and production assumptions.

Risks and ways to deal with risk.

Type and cost of infrastructure, plant, equipment and other assets such as cattle.

Staff and training required.

Markets, market specifications and prices.

Management structure, management and operation of reporting, recording systems and performance indicators.

Land management including stocking rates and carrying capacity.

Investment required.

Projected business performance.

Cash flow budgets.

Sensitivity analysis and breakeven analysis.

Finance required and repayment schedule.

Monitoring systems.

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Business Plan References ILC Business Plan

Business Plan Guides and Templates

Photo 1.2 Planning at Ullawarra Station, WA

Courtesy “WA Indigenous Land Services”

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Governance What is Governance? Governance refers to the processes, roles of key people and structures that are set in place to decide how a business will be governed. Corporate governance is how people lead and run their organisation; and is usually the responsibility of the Board. The Board performs its duties with the support of management and staff; in line with members’ wishes; the constitution of the business (rules) and the law; and ideally in partnership with stakeholders.

For Indigenous pastoralists, the process of governing a corporation or business typically involves the establishment of a group of people who represent the owners of the assets of the business. This group of people are referred to as the Board and normally comprise some Traditional Owners (at a minimum). In the situation of a cattle business on Indigenous land, the primary asset is the land. As the land is of core value to the entire community, it will be this asset that will be central to all consid- erations by the Board.

In Indigenous businesses, corporate governance is often intermeshed with cultural governance. Directing a cattle business requires corporate governance with an emphasis on reporting, legal and technical compliance and financial management. Cultural governance is about how Aboriginal society organises itself to achieve its goals; it is about looking after land and culture, who should be represented and interrelationships. It can be challenging for many Boards (including Indigenous) to simultaneously achieve the goals of good corporate governance and good cultural governance.

Transparency in structure and decision making in Boards should be a key focus. There is a need to respond to disputes and make decisions, such as how to treat any dividends from the business and royalties from the land, so that monies are not transferred out of the pastoral business to its detriment. Governance in Practice for Indigenous Corporations The Office of the Registrar of Indigenous Corporations (ORIC) is an independent statutory body that administers the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). This Act guides how Indigenous corporations are run. ORIC supports and regulates the corporations that are incorporated under the Act by:

• advising them how to incorporate • training directors, members and key staff in good corporate governance • making sure they comply with the law • intervening when needed. ORIC offers ten important practical tips for good corporate governance as follows.

1. Keep the register of members up-to-date Make sure the register has the following information for every person who is, or has, been a member:

• person’s name and address • date that person became a member • date that person ceased to be a member (if applicable). 12 back to top MODULE 1 business management

(Note: the register of members is a continuing record and if kept correctly, it will help to resolve any disputes about who is a member.)

2. Know your role and responsibilities Make sure the directors fully understand their role and responsibilities.

3. Know your rules Know your rule book (constitution). Encourage your members to learn about it.

4. Know your money position Make sure you know about the money position, or use your auditor more often (say every three months) to check that your staff are managing the money properly. A good auditor will do this for the directors.

5. Taxes Make sure that tax matters are handled correctly, in particular the Goods and Services Tax (GST), Pay As You Go (PAYG), Pay As You Earn (PAYE) and Fringe Benefits Tax (FBT). Make sure the Su- perannuation Guarantee contributions are paid for all your staff.

6. Attendance Make sure a director is at every meeting when the funding agency(s) come to visit.

7. Insurance Make sure the corporation’s property is insured. Check that insurance policies are renewed on (or before) the due date.

8. Assets Be careful to only use the corporation’s assets in line with funding conditions. Most funding contracts will say that personal use is not allowed. Better still, make a policy about this for everyone to see and use.

9. Minutes of meetings Make sure you keep minutes of every meeting of the corporation. Minutes should say what type of meeting you had (annual general meeting, general meeting or directors’ meeting, what day it was held, who came, and what decisions were made).

10. Hold an annual general meeting (AGM) Make sure you have an AGM every year (usually before 30 November).

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Governance Models There are a number of different governance models to suit diverse Indigenous communities across northern Australia, with vast and divergent networks of leaders, family groups, and land ownership rights and interests.

Some Indigenous corporations that are collectively owned by family, clan or community groups have overcome the dilemma of corporate and cultural governance conflicts by having shares in a separate pastoral company to run the pastoral business. This company also may own the cattle. (See Box on the following page which describes the governance structure of Morr Morr Pastoral Company).

Responsibility for corporate governance rests with the Board of the pastoral company to look after the business and the money (with appropriate reporting and accounting systems), make decisions, run programs, and follow the rules. The pastoral company may pay dividends and lease fees to the land owners, which may be the Indigenous Corporation.

Some successful Indigenous companies have also used governance models that broaden Board membership and services beyond the community groups involved. These models may combine the services of a respected mentor on the Board, and appoint an experienced Company Secretary to ensure reporting obligations are met.

Directors need to focus on overseeing the implementation of strategic goals through management, including having a say in the employment of the Station Manager. The Manager then needs to deal with grazing the land, running cattle, employing people and marketing product to ensure success. The Station Manager reports directly to the Board. The staff report to the Station Manager. Training and Support for Governance Indigenous Landholder Services and Indigenous Pastoral Program services, including Land Councils, can help communities in governance matters as well as arrange training for Boards. Governance training is a key focus of Farm Training WA, which has assisted many communities in the Pilbara and Kimberley. ORIC also provides training in governance and directors’ duties.

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Governance Structure of Morr Morr Pastoral Company (MMPC) MMPC operates a pastoral business on Delta Downs under a corporate model and in accordance with Australian corporations’ legislation. The Board consists of 10 members, including a Chairman and Vice-Chairman. The Board and Company Secretary meet regularly and give direction to the Station Manager.

The Kurtjar Aboriginal Corporation (KAC) is the major shareholder of MMPC and provides the Board of Management. The KAC is made of 14 moiety groups who are the Traditional Owners of Delta Downs. The Elders of these clans form the Board of the Kurtjar Aboriginal Charitable Land Trust (KACLT). The KAC elects the Board of MMPC. The Board oversees an Executive Committee of MMPC that includes the Chairman, Vice Chairman, Non-Executive Director, Station Manager and the Company Secretary.

The MMPC pays an annual dividend to the KAC of $250,000 which is paid pro rata on a monthly basis. The Board members of MMPC are paid and receive training in corporate governance.

Half the Board is elected at the Annual General Meeting held in December each year. Each member is elected for two years.

KURTJAR ABORIGINAL KURTJAR ABORIGINAL CORPORATION CHARITABLE LAND TRUST

Pays 100% Pays Land Dividend Owns Rent

MORR MORR PASTORAL COMPANY P/L

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Governance

• Governance for Boards in Indigenous Corporations involves the rules and processes of running the pastoral business. • Corporate governance involves reporting, technical and legal compliance and financial management. • Cultural governance is about looking after land and culture, who should be represented and managing internal relationships. • Ideally, corporate and cultural governance roles should be separated. • Outside help is possible by enlisting the services of a respected mentor to the Board, and employing an experienced Company Secretary to ensure reporting obligations are met. • Boards should give strategic direction and leave management alone to concentrate on managing grazing land, cattle, people and marketing to ensure success. • Indigenous Landholder Services and Indigenous Pastoral Program services including Land Councils can help communities in governance matters and arrange training for Boards. The Office of the Registrar of Indigenous Corporations also provides training in governance and directors’ duties.

Governance References Corporate governance

Indigenous governance tool kit

Achieving Indigenous governance, Chapter 2 Social Justice Report 2012 AHRC

Indigenous Governance Program (Australian Institute of Company Directors)

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Recording and Budgeting Beef Production and Costs

Before you can begin to plan, you will need records or budget estimates of your beef enterprise, expected incomes from sales and expenses for running the business. This means having good information relating to herd size, herd composition, branding, death and turnoff rates, and cattle sales and purchases. You will also need financial information on all cattle sales and purchases, as well as details on what it will cost to run the business each year. Livestock Records • Livestock records are a very important part of running a beef cattle business. Basic requirements are an annual herd summary or Livestock Return. This can be prepared on a monthly, quarterly or annual basis. The Livestock Return shows the starting or opening numbers, the physical movement within herd numbers on the property during the period, sales and purchases of cattle, numbers of cattle branded and weaned, mortalities and closing numbers. Therefore, in order to keep up-to-date, managers need to record the following data on a regular basis: • starting numbers of cattle by sex and class • any natural increases (brandings in a Branding Book) • all sales including age, sex and class of animal • all purchases, including age, sex and class of animal • estimated deaths in each class of animal, which can be verified later by a bangtail muster.

This information may be recorded in a Livestock Return as shown in Figure 1.1. A glossary of terms used in the Livestock Return is also provided. The Livestock Return should be completed and returned to the business’s accountant on a monthly basis, as part of normal end-of-month management activities.

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Figure 1.1 Example of a Livestock Return

Aboriginal Pastoral Company

Monthly Stock Return Whichone Station Month Ending 31-Jan 2013

Year Class Age Opening Purchase Brand- Recoveries/ Sales Rations Deaths Adjustments Closing- No. Numbers ings Losses Numbers

Breeders Maiden 2 1–2 220 10 2 208 Heifers Maiden 1 2–3 200 20 2 178 Heifers 0 First Calf 3–4 180 10 2 168 9 Cows Mxd 700 100 12 588 Sub Total 1300 - - - 140 - 18 - 1142 Unjoined Females F. Calves & 3 0–1 - 350 10 340 Weaners Maiden 2 1–2 150 150 Heifers Maiden 1 2–3 20 20 Heifers Sub Total 170 - 350 - - - 10 - 510 Speyed Females Heifers - - Cows 4+ 50 25 2 23 Sub Total 50 - - - 25 2 23 Total Females 1520 - 350 - 165 - 30 - 1675

Year Class Age Opening Purchase Brand- Recoveries/ Sales Rations Deaths Adjustments Closing- No. Numbers ings Losses Numbers

MALES

Steers S. Calves & 3 0–1 - 350 350 Weaners 2 Steers 1–2 340 280 2 3 55 1 Bullocks 2+ 130 120 2 8 Sub Total 470 - 350 - 400 2 5 - 413 Bulls B. Calves & 3 0–1 - - Weaners Young 2 1–2 - - Bulls 1 Joiners 2–3 10 1 9 0 Herd Bulls 3+ 35 2 1 32 Sub Total 45 - - - - 2 2 - 41 Total Males 515 - 350 - 400 4 7 - 454 Herd Total 2035 - 700 - 565 4 37 2129 B/F Year to Date 2035 - 700 - 565 4 37 2129

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External Purchases External Sales

Waybill No. Number Waybill No. Number Waybill No. Number

Total 0 Total 0 Total 0

Table 1.2 Livestock Return Glossary

Year No. (Number) The year the animal was born. Age The age of the animal in years. Opening Numbers The number in that age group at the beginning of the period. External Purchase Add any cattle purchased into the business (onto the property) in the period. Natural Increase Add any calves or weaners branded during the period. Recoveries/Losses Add any extra cattle found or subtract any extra cattle lost during the period (+ or -) External Sales Subtract any cattle sold during the period. Deaths Subtract any cattle that would have died during the period. This number is generally an estimate, based upon deaths as a percentage of the herd and may be done monthly, quarterly, half yearly or annually. Rations Subtract any cattle used for killers during the period. Adjustments Use this column to move numbers from one class to another for example subtract Unjoined Heifers and add to Joined Females, or to change a number of males to females if necessary. In this column the Total Line should always be Zero (0) as you are only adjusting numbers, not increasing (+) or decreasing (-) numbers. Closing No. (Number) Is the sum of the (Opening No. + External Purchases + Natural In- crease + or – the Recoveries/Losses – External Sales – Deaths – Ra- tions + or – Adjustments = Closing No.) Year to Date Opening Is the opening number for the beginning of the recording period Number (year) and remains the same through each recording period.

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Costs Records Chart of Accounts and Operating Expenses Work with your accountant and bookkeeper to develop a suitable Chart of Accounts. This is usually done at the start up of the business. The Chart of Accounts is a series (usually numbers) that allows your accountant to form expenditure and income categories to enable tracking of individual cost and income groups such as:

4117 Repairs and Maintenance Vehicles

4118 Repairs and Maintenance Windmills

Your accountant will be the best guide in this area. All operating expenses should be identified. Operating expenses are all the costs that are necessary for the business to complete its day to day operations. They can be further broken down into two main types of costs - Variable and Overhead costs. Variable Costs Variable Costs are also referred to as Direct or Production costs. These costs are directly related to the size and nature of the livestock enterprise. Variable Costs often change from year to year depending on stock numbers and seasons, and are typically broken down into the following headings:

• animal health – vaccines, dips, drenches and veterinary costs such as medical treatments, pregnancy testing, spaying • contract services such as helicopter and contract mustering • freight for shifting the herd around during the year; for example trucking weaners to the weaner camp • any direct insurance costs (valuable bulls) • materials • livestock selling costs • supplementary feed costs including all hay, lick and supplements. Overhead Costs Overhead Costs are also referred to as Fixed Costs. These costs remain relatively stable year on year, and do not vary too much whether the property is fully stocked or the season is in a downturn. Overhead Costs are typically broken down into the following headings:

• Administration • Depreciation • Electricity and Gas • Fuel and Lubricants

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• Insurance • Land Care (weed and pest animal control) • Materials • Motor Vehicle Expenses: »» Registrations »» Repairs • Rates and Rents • Repairs & Maintenance General: »» Infrastructure »» Plant and machinery • Wages (Staff Costs): »» Salaries and Wages (excluding contract mustering) »» On costs including board and keep, workers’ compensation, superannuation, payroll tax and long service leave »» Recruitment costs such as advertising of vacancies and employment agency fees »» Staff Training. Finance Costs Finance Costs include all costs to finance the business such as:

• interest on loans • bank fees and charges • leases on land • hire purchase • chattel mortgages • vehicle / equipment leasing.

Capital Costs Capital Costs are often described as CAPEX or capital expenditure. There are two main types of capital cost:

• ‘Stay in Business’ costs: These costs cover replacement of plant, machinery and infrastructure. • ‘Development’ costs: These costs include any expenditure on plant and infrastructure that will increase the profitability of the business by improvements in technologies or through expansion.

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Bookkeeping and Accounting

Your business may have an accountant to manage financial transactions. You may have to carry out some recording and bookkeeping functions on station, so that all transactions are verified there and then forwarded to your accountant. You will also need to verify cattle sales and purchases, and enter the numbers into the Livestock Return described previously. Expenses may need to be authorised with Purchase Orders and then passed for payment on receipt of goods and services.

The accountant will keep a Ledger with a Chart of Accounts for the various cost categories.

You will also need a Staff Time Book or Wages Book to be kept at the station. When work has been done and staff are due to be paid, forward the details to your accountant who will calculate and pay the wages.

A summary of responsibilities for the Manager, Bookkeeper and Accountant is provided in Table 1.3 Bookkeeping and Accounting Functions.

Table 1.3 Bookkeeping and Accounting Functions

Transaction Manager verifying financial Bookkeeper/Accountant recording transactions and recording livestock financial transactions and preparing movements reports Verify trucking numbers and forward Checks deposits into bank account, Cattle Sales Sales Accounts to accountant. Enter enters into Journal and Ledger, and numbers into Livestock Return. creates Livestock Trading Account. Verify receiving numbers and Makes payment and records Cattle authorise invoices for payment by the transaction in ledger. Creates Livestock Purchases accountant and enter numbers into Trading Account. Livestock Return. May use purchase order from May issue purchase order to Manager. accountant. Verify goods or services Costs Enters transaction into Ledger against received on invoice, pass for payment Chart of Accounts. and forward to accountant. Maintain Wages Book and Calculates wages and deposits wages Wages forward to accountant. into employees’ bank accounts. Livestock Return Reports Creates Livestock Trading Account. forwarded to accountant.

Files Business Activity Statement Reports (BAS) quarterly.

Preparation of Income Statement, Cash Reports Flow Statement and Balance Sheet.

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Photo 1.3 Cora Johnson, Myroodah Bookkeeper, WA

Courtesy Myroodah Station Management, WA, ILC

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Beef Business Performance Business Model Analysing a beef business’s production and financial performance is important in understanding how profitable the operation really is, where the financial restrictions are to success, and where the income that sustains the business is coming from. The recording and reporting data described in the previous section can be used with management accounting to calculate Cost of Production, Operating Margins, Price Received, Gross Margins and annual Profit (or Loss) and analyse Cash Flow.

Figure 1.2 The Farm Business Model

Total Capital at 1st July

Equity Debt

Financial performance for the year

Price Per Unit x Quantity (Units)

Gross Income

Enterprise Costs

Gross Margin

Overhead Costs

Net Income

Owner/Operator Labour Cost

Operating Pro t

Interest & Lease Costs

Business Pro t (Before Tax)

Ta x

Business Pro t (Aer Tax)

Total Capital at 30th June

Equity Debt + Growth

Figure 1.1 demonstrates how all of the different farm business economic terms come together and are calculated. The diagram shows the different profitability measures.

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Calculating Gross Income Gross Income can be calculated from the annual Livestock Return using the following formula:

Gross Income = Cattle sales minus Cattle purchases plus Inventory Change, where:

Cattle sales and purchases reflect the value (as measured by weight and price) of the total numbers of animals sold and purchased. These numbers can be taken from the Sales Advice provided by your livestock agent.

Inventory Change is worked out by subtracting the value of the herd at the end of the year from the value of the herd at the beginning of the year. To do this, you will need to place a value on each class of cattle at the beginning and end of each year. The change in the value of the herd over the year is then calculated and used for assessing the Inventory Change.

The value of each age group and class of animal at the start and end of the year can be estimated by using prices from various sales centres, and making estimates of weight and class. Your local livestock agent can be a useful source of information for this work. Calculating Gross Margins The Gross Margin for a beef enterprise is one measure of efficiency that is a useful tool for cash flow planning and determining the relative profitability of different cattle enterprises. It can also be used to assist in assessing the opportunity to develop new enterprises, or analyse whether certain management strategies are more profitable than others; for example, supplementary feeding strategies. The Gross Margin is the difference between the annual gross income for that enterprise and the Variable Costs directly associated with the enterprise during that period.

In constructing Gross Margin budgets, Overhead (fixed) Costs are ignored, as it is considered that they will be incurred regardless of what enterprise activity is undertaken. The Gross Margin of different enterprises should not be compared if they have different Overhead Costs. No allowance is included in the Gross Margin for machinery ownership costs such as depreciation or opportunity cost of capital. Calculating EBIT (or Operating Profit) EBIT stands for Earnings Before Interest & Tax and is a widely used term in business circles. EBIT indicates or measures the amount of profit that a business has made. Business people are always interested in the EBIT of a business as it tells them if the business is inherently profitable. Looking at the EBIT over several years tells you whether the business is reliably profitable, highly profitable, -un profitable, or is in real trouble. Calculating NPAT NPAT stands for Net Profit After Tax (and Interest) and is also a widely used term in business circles. A positive NPAT indicates that the business has made a profit after it has paid its finance costs and its company tax. A negative NPAT indicates that the business was unable to pay its finance costs for the year.

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Management Accounting Formula Gross Margin = Gross Income – Variable costs

Operating Profit (EBIT) = Gross Margin minus Overhead Costs

Net Profit After Tax (NPAT) = Operating Profit minus Interest Costs & Tax

Return on Assets = (Operating Profit divided by Total Assets) X 100

Return on Equity = (Net Profit divided by Total Equity) X 100 Cash Flow Statements Cash Flow Statements simply measure the actual money flowing in and out of the business during the year. It is not a reliable measure of financial performance as it does not take into consideration any changes in Assets or Liabilities on the Balance Sheet, although the income from sales or purchases will be seen in the cash flow report.

In the short term, we need to pay attention to cash flow because it is the cash flow that the business generates during the year that provides for the ongoing operating expenses of the business, and the servicing of any financing arrangements.

If the business is not generating a positive and reliable cash flow each year, then the business will need to draw on reserves, or may even need to borrow money to pay the costs of running the business. Unless this changes and the business is able to rely on future cash profits, it could be unsustainable and could be spiralling downwards to a loss situation. Cash Flow Budgeting and Analysis An important task for Station Managers or Owners is to prepare Cash Flow Budgets for the coming year. Budgets are typically prepared for each month of the coming year, and the company’s accountant will most likely do this with the assistance of the Station Manager.

To prepare these budgets, cash income into the business can be estimated from herd modelling and estimating the numbers of cattle to be sold, their weights and estimated prices on a ‘per kg’ or ‘per head’ basis. Cash into the business can also be generated through the sale of assets, sub-leasing of land and the proceeds of loans when money is loaned to the business. These also need to be provided for in the budget if applicable.

Cash that flows out of the business will be for all the costs of running the business including Variable, Overhead and Finance costs, as well as expenses for cattle purchases and capital items. The Cash Flow Budget also reflects flows out of the business when dividends are paid or when owners take drawings from the business.

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Assessing the Performance of the Herd

Analysing the herd’s production performance is important in understanding the likelihood of the operation being profitable, where the restrictions are to success, and where the income that sustains the business is coming from.

There are three key measures that relate to the herd:

• Price Received (cents per kilogram (c/kg) of liveweight produced) • Cost of Production • Operating Margin. Price Received Price Received is a measure of the average price received per kg (liveweight) of beef produced by the business over the year. In some cases, the business has produced a lot of beef over the course of the year but the cattle will not be sold until next financial year. Nevertheless, this beef has been produced and needs to be brought to account to understand the overall average Price Received.

Remember this is a weighted average and takes into account all the beef produced by all cattle that leave the property, including old ‘Culled for Age’ (CFA) cows and bulls.

Price Received = (Gross Income ÷ kg of liveweight beef produced)

To arrive at this figure, you need to calculate the total kilograms of beef produced by the business. Total beef produced is simply the total liveweight of all cattle sold minus total liveweight of all cattle purchased plus the change in the herd (Inventory Change) over the year.

For sales and purchases, you will need to use data on the weights of all animals sold and purchased. Inventory Change is worked out by subtracting the weight of the herd at the start of the year from the weight of the herd at the beginning of the year.

Price is only one measure of performance, and other factors such as age of turnoff and capital invested should also be considered. Calculating Cost of Production The Cost of Production (CoP) is another measure of business efficiency but again should not be taken as the only indicator of performance. CoP measures how much it costs the business to produce a kilogram of beef. Theoretically, the lower the CoP, the better it is for the business.

The CoP is driven by both the business’s control on costs but also productivity of the herd. CoP is measured in c/kg (or $/kg) liveweight produced.

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There are four components to the CoP calculation:

1. Kilograms of beef produced (liveweight) See section above.

2. Variable Costs This figure comes directly from the management accounts prepared by the accountant.

3. Overhead Costs This figure comes directly from the management accounts prepared by the accountant.

4. Owner/Operator Allowance Typically labour costs are included in Overhead Costs; but if the Owner/Operator is not drawing a PAYE wage from the business, then an Owner/Operator allowance must be made for the value that this person adds to the business. As a rule of thumb, $55,000 is the value used for a fulltime Owner/ Operator in 2013. It is important to place an economic value on the owner, as later you will wish to calculate the profitability and sustainability of the business, and to do so you will need to also place a reasonable cost on the role of the Owner/Operator.

Total costs are divided by the kilograms produced to give the CoP in c/kg (or $/kg) liveweight.

MLA’s Tips and Tools (2006) states that if you have a CoP less than $1.00/kg liveweight, you are performing better that the average beef producer. If it is greater than $1.50, the future of your business may be at risk. Again this measure should not be relied upon in isolation of other measures, because in some cases where the CoP is too low then animal condition may suffer.

Financed Cost of Production is the CoP with financing costs also taken into account. The financed CoP is perhaps a more important measure for businesses that are carrying debt. This indicator tells business management the average liveweight beef price it needs to achieve to break-even, after its loan repayment commitments have been met. Operating Margin The Operating Margin is the difference between what it costs the business to produce a kg of beef and the price it has received for each kg produced.

An important rule of thumb is that this figure needs to be over 60c/kg if the business is to be profitable and ‘bullet proof ’ over the medium term.

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Herd Modelling You can model your herd to:

• understand the number of replacement heifers that are required to keep the herd number stable • gauge how many breeders you can cull without reducing numbers too much • look at the cost-benefit of different husbandry strategies • find out the most profitable age of turnoff and what weaning rate is required to sustain that strategy • carry out herd, profit and cash flow projections over a period, say 10 years.

This can be done by using your existing records and anticipated herd management changes. Alternatively, you can use a software modelling package such as Breedcow Dynama, which can be downloaded from the internet for free. Future Beef Link to Breedcow and Dynama

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Sensitivity and Breakeven Analysis

Sensitivity and Breakeven Analysis is used if there is uncertainty in estimating an important component of price or quantity. It determines the amount of component necessary to result in the cattle business breaking even (where gross income and costs are the same). Then you have to decide on whether the breakeven price or quantity is likely to be achieved, in practice. If it is, then there is less risk in running the business at a loss. Again, you can do these analyses using Breedcow Dynama software.

Financial Measures for a Northern Cattle Enterprise

• Gross Income = Annual Cattle Sales minus Annual Cattle Purchases plus Inventory Change in value of herd. • Change in Inventory Value = Value of the herd at the beginning of the year minus the herd’s value at the end of the year. • Variable Costs = Direct or production costs including animal health, feeding, transport and selling costs directly associated with the cattle enterprise. • Fixed or Overhead Costs = Staff, R&M, Energy, Motor Vehicles, Rates & Rent, Insurance, Land Care, General and Depreciation. • Gross Margin = Gross Income minus Variable Costs. • Kilograms (kg) of Beef Produced = Total liveweight (kg) of all cattle sold minus total liveweight (kg) of all cattle purchased plus the liveweight change in the herd (Inventory Change) over the year. • Cost of Production (cents per kg) = Total Variable and Fixed costs divided by kg (liveweight) of Beef Produced. • Earnings Before Interest and Tax (EBIT) or Operating Profit= Gross Margin minus Overhead Costs. • Return on Assets = (Operating Profit divided by Total Assets) X 100. • Net Profit After Tax (NPAT) = Operating Profit minus interest and tax. • Net Cash Flow Before Financing = The net of all money in and out of the cattle business before interest. • Net Cash Flow After Financing = the net of all money in and out of the cattle business after interest and loans.

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Financial Tools and Workshops Future Beef Link to Breedcow and Dynama

Cost of Production Calculator

QDAFF Monthly Cash flow Forecast

Business EDGE is a two-day financial and business management training workshop for northern beef producers

Financing Arrangements

Most businesses will, from time to time, wish to borrow money to fund activities within the business. There are a wide range of reasons, such as cash flow shortfalls, growing the business, property development programs or buying a large piece of equipment.

Generally, Indigenous businesses have a limited ability to borrow money. This means that they have to rely on their cattle sales to generate working capital or cash to run their businesses on a day-to-day basis.

The major external source of finance for Indigenous pastoral properties is the ILC which is supported by the Aboriginal and Torres Strait Islander (ATSI) Land Fund. The ILC funds land acquisition and land management. Funds in the form of grants from the ILC are available for property management planning, infrastructure development and environmental management and training. All applications for funding of property-based projects require a business plan. Examples of types of property-based projects funded by the ILC are as follows:

• construction of fences to improve livestock management or protect areas of cultural or environmental significance • acquisition of equipment to assist with land management such as tractors, weed eradication or fire management gear • propagation and planting of native trees and plants • weed and pest animal eradication • development of watering points on properties • construction of infrastructure to assist with land management such as sheds, buildings and renewable energy systems. Access to finance for Indigenous businesses in the form of loans is often limited because of caveats (cautions or warnings) on the land being available to use as security against the loan.

Section 191S of the Aboriginal & Torres Strait Islander Act 2005 enables the ILC to place a caveat on the title to land, in order to prevent sale or mortgage without the consent of the ILC Board. However the ILC does grant consent in some instances.

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Although finance is theoretically available from various other sources such asIndigenous Business Australia, other government grants and the major commercial banks, these sources generally have not been active in the field of northern Indigenous pastoral development. There are notable exceptions where overdrafts have been granted to successful Indigenous pastoral businesses with sufficient cattle numbers to provide banks with security.

Sources of Finance

Indigenous pastoral businesses can access the following sources of finance:

• Self finance from own cattle sales • Indigenous Land Corporation (ILC): Land Acquisition and Management (requires a business plan) • ILC grants: property management planning, infrastructure development and environmental management and training • Indigenous Business Australia - mainly involved in tourism ventures • bank overdraft with stock mortgage on large herds.

Further Information on Finance for Indigenous Pastoralists ILC Land Management Program Handbook 2013

Indigenous Business Australia

Section 191S of the Aboriginal &Torres Strait Islander Act 2005

Workshops to Attend Business EDGE is a two-day financial and business management training workshop for northern beef producers

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MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 2markets and marketing Contents

Introduction 3 List of Tables Markets 4 Table 2.1 Co mparative Returns: Live Live Exports 4 Export Port & Local Market, Hodgson River Station 6 Local Markets 7 Table 2.2 T ransport Distances and Market Information Sources 10 Handling Requirements, Interpreting Reported Cattle Prices 10 Alternative Market Centres, Marketing Strategies 12 Hodgson River Station 7 Supply Chain and Transport and Table 2.3 Live Cattle Specifications 13 Selling Costs 12 Table 2.4 Dentition Table 14 Specifications for Indonesian Live Export and List of Figures Alternative Markets 12 Figure 2.1 S easonal Growth Curves for Integration into Supply Chains 14 Various Annual Liveweight Change in Management Practices 14 Gains and Markets 4 Selling Methods for Marketing Options 19 Figure 2.2 Dentition 15 Live Export 19 Figure 2.3 Location of P8 Site 16 Domestic Store and Feeder Cattle 19 Figure 2.4 Exam ple of Abattoir Meatworks 19 Grid Sheet 17 Saleyards 19 List of Photos AuctionsPlus 20 Cover Photo – Road train, Urldunda, NT Other Producers and Feedlots 20 ©iStockphoto.com/Harlz Stock Movement Regulations Photo 2.1 L ive Export Wharf 4 and Assurances 22 Photo 2.2 Indonesian Feedlot 5 Animal Welfare 22 Photo 2.3 Cattle Transport 8 Movement Requirements 22 Photo 2.4 A erial View of an Livestock Production Assurance 23 Indonesian Feedlot 13 Export Slaughter Interval 23 Photo 2.5 D rafting Sale Cattle in Bohning Yards, Withholding Period 24 Alice Springs 16

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2 MODULE 2 markets and marketing

Introduction

Module 2 provides information on the markets that are available to Indigenous pastoral businesses in northern Australia. It also outlines sources of market information, appropriate marketing strategies, selling methods and regulations and assurances that apply. Market information is general in nature since the module covers all of northern Australia. Where necessary, regional differences are explored and producers may also find it necessary to consult local sources. Markets Available to Northern Producers Most Indigenous-owned pastoral properties in northern Australia have land types and climate suited to breeding herds, which turn off lighter feeder steers for live export markets. The northern location is an advantage because of proximity to South East Asian markets, particularly feedlots in Indonesia. Recently, this advantage has turned into disadvantage due to new restrictions to the Indonesian market, which in turn have necessitated the diversion of northern-produced cattle to distant southern local markets. The absence of large scale processing works in northern Australia means northern enterprises face logistical challenges and high transport costs for slaughter cattle, such as cull cows, that they produce. Properties in areas with more productive land types and easier access to markets have the opportunity to produce finished cattle for slaughter markets. This section of the module details the specifications that relate to the respective markets, and the factors that need to be considered when determining which market to target. Marketing Information Sources Where to find information on markets and market trends is provided in this section of the module. Marketing Strategies Strategies to improve marketing efficiency are explored in this section, including:

• finding alternative markets • knowing your cost of production • integration into supply chains • breeding and assessing cattle to better meet customer specifications which can lead to better prices. Selling Methods for Market Options This section details the methods of selling to different marketing options. Selling methods will depend on access to target markets and what is available in a particular region such as station yard inspections for live exports, saleyards for store cattle or abattoirs for the sale of slaughter cattle. Stock Movement Regulations and Assurances Producers need to be aware of the regulations that apply to livestock movements, vendor declarations and assurances, and how to meet animal welfare standards. This section of Module 2 outlines these requirements. 3 back to top MODULE 2 markets and marketing

Markets

Access to stable and profitable markets is important to the growth of Indigenous pastoral businesses in northern Australia. Live Exports Importance of ‘Weight for Age’ The growth rate of cattle and consequently ‘weight for age’ is the main factor in determining which markets an enterprise can supply. Figure 2.1 shows the seasonal growth curves for various annual liveweight gains — 100, 135, 150, 180 and 220 kilograms (kg) — for grazing cattle in northern Australia in relation to live export and meat market specifications.

Figure 2.1 Seasonal Growth Curves for Various Annual Liveweight Gains and Markets

Source: MLA, Hormone growth promotants and beef production, A best practice guide Photo 2.1 Live Export Wharf

Because of the land types and climate in the far north, cattle enterprises are generally limited to breeding herds which turn off lighter feeder steers, since liveweight growth rates are in the order of 100 kg/year (red line in Figure 2.1).

In more productive areas, such as the Alice Springs district, central Queensland, the Top End flood plain and the black soil and river frontage country in the Kimberley, there are opportunities to target other markets.

Courtesy “Beef Central”

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Feeder and Slaughter Cattle Indigenous pastoral properties in Western Australia (WA) and Northern Territory (NT) are located relatively close to the live export ports of Darwin, Broome, Wyndham and Port Hedland; and in north Queensland they can be exported from the ports of Karumba and Townsville.

• Feeder cattle (18–24 months old) have a live export market, including the main market in Indonesia which is subject to export permits, quotas and weight restrictions (less than 350 kg liveweight), associated with Indonesia’s beef self-sufficiency plan. • Older or heavier cattle for feeding and slaughter have to find alternative live export markets. As shown by the red line in Figure 2.1, these markets include South-East Asian countries such as the Philippines, Malaysia, Vietnam and Brunei Darussalam and countries in North Africa and the Middle East such as Egypt, Israel and Turkey.

Photo 2.2 Indonesian Feedlot

Source: Greg Pankhurst Location Advantages Northern Australian properties are ideally located to supply live export markets because of two key factors:

• lower freight costs due to shorter distances to live export ports • reduced animal stress due to shorter transport times and less handling. A submission in 2011 by Ms Jo Anne Bloomfield of Hodgson River Station to an Independent Review of the Live Export Trade, quoted distances and costs from her property located 700 km south of Darwin to the nearest live export port (Darwin) and nearest live auction (Winton, Qld). As shown in Table 2.1 Comparative Returns: Live Export Port & Local Market, Hodgson River Station, transport time to Darwin is nine hours; in contrast, transport to Winton takes 45 hours plus an additional day to spell the cattle.

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Table 2.1 Comparative Returns: Live Export Port & Local Market, Hodgson River Station

Market Live Price Gross Distance Cartage Commission Total Net/ Location Weight $/Kg Return km Cost Levy/$/hd Selling Return Kg LW $/hd Costs $/ $/hd $/ $/ hd deck hd km Live Export 317.8 1.65 524.7 700 1.69(a) 40.92 21.53 62.45 462.25 Dawin Local Live Auction 358.6 1.15 412.34 3771 1.35(b) 87.63 28.37 116 296.34 Winton

(a) Inclusive of 2.5% insurance (b) Plus 2.5% levy Source: Jo Anne Bloomfield

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Local Markets Location disadvantages Because of their remote location and lack of local processing facilities, properties which have to divert cattle to local (domestic) markets face high transport and handling costs as shown in Table 2.2.

Table 2.2 Transport Distances and Handling Requirements, Alternative Market Centres, Hodgson River Station

Market Market Distance Movement Requirements Spelling and Location (km) Handling Darwin NT Live Export 700 Alice Springs Saleyards 1,016 Clearance dip from property NT auction (1/ for ticks yr) Winton Qld Saleyards 3,771 Clearance dip from property Spelling at Mt auction for ticks, travel permits into Isa, feed, water, tick free areas handling costs, yard fees Longreach Qld Saleyards 3,951 As above As above auction Roma Qld Saleyards 4,646 As above As above auction Townsville Qld Abattoir 4,192 As above As above Dalby Qld Feedlot 4,908 As above As above Adelaide Saleyards 2,568 Clearance dip from property Auction cost, (Dublin) SA auction for ticks spelling and recovery before sale Murray Bridge Abattoir 2,641 As above Spelling and SA recovery before slaughter Melbourne Vic Abattoir 3,297 As above Spelling at Port Augusta, recovery before slaughter.

Source: Jo Anne Bloomfield

Store cattle Store cattle diverted from the live export market trade remain in the Australian market, and go to local southern growing out areas and domestic feedlots. An increase in the number of cattle diverted from the live export market to the store market can cause an over-supply of cattle and a fall in the domestic cattle price. In addition, a challenge for northern producers is the growing preference of domestic store buyers for cattle with lower Brahman content. This preference has resulted in lower prices for high grade Brahmans compared to Brahman crosses. 7 back to top MODULE 2 markets and marketing

Slaughter cattle Photo 2.3 Cattle Transport Slaughter cattle from the north mainly comprise cull cows and small numbers of heavier steers, cull heifers and bulls. With limited local demand and no large meat processing plants in northern Australia, these animals have to be transported long distances to eastern and southern Australian abattoirs. These animals are usually processed for manufacturing meat which is used in low value products such as hamburger patties. Only small quantities of higher value cuts go to other markets.

Development of meat processing facilities in northern Australia would provide increased slaughter market opportunities for Indigenous producers. At the time of writing (April 2013), there are three abattoir projects in northern Australia under consideration which aim to supply beef demand in nearby Asian markets as well as the traditional US manufacturing meat market. These projects include:

• Australian Agricultural Company’s (AACo) new abattoir, 50 km south of Darwin, will have a design capacity of 250,000 head throughput per year. The plant is under construction and is planned to be open by the end of 2013. • Yeeda Pastoral Company is planning a 60,000 head per year processing plant located between Broome and Derby in the Kimberley region of WA. • The Qld Government is promoting the development of a processing facility in north-west Qld with a capacity of approximately 50,000 head per year. An Investment Opportunity Document is currently available from the Government.

Finishing cattle Finishing cattle is an option for properties in more productive areas in northern Australia, including the Alice Springsdistrict and central Queensland. Properties can grow out and finish cattle and send them to more accessible southernAustralian and Qld abattoirs. Figure 2.1 on page 6 shows that if cattle can gain 150 kg per year or more, the Japanese Ox market can be targeted. For the domestic and European Union (EU) markets, annual weight gains of 180 kg or better are required to produce cattle with the required weight and dentition. (Dentition is explained later in this module, in the ‘Change in Management Practices’ section.)

Transport distances can restrict access to the domesticMeat Standards Australia (MSA) market. (The MSA market is described more fully later in this module, in the‘Specifications for Slaughter Cattle’ section.) Dry seasonal conditions, particularly in the Alice Springs district, may necessitate turning off growing out cattle, to be finished in southern grazing areas or feedlots that are closer to the markets. Alice Springs has a niche live export market for British breeds including mickey bulls (unmustered bulls) to Turkey.

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Markets – Key Points

Live Export • Light feeder cattle, including steers and heifers, are exported to Indonesian feedlots. • The Indonesian market has been reduced and is subject to export permits and quotas and feeder cattle must be less than 350 kg liveweight. • Heavier cattle, including those for slaughter, have limited alternative live export markets in South East Asia, North Africa and the Middle East. Local Markets • Store cattle diverted from live export markets can be sold to growing out producers in the south, or directly to local southern feedlots. However, the store market is highly sensitive to increases in supply with depressive impacts on prices. Because of a preference for lower, Brahman-content cattle in these markets, high Brahman-content cattle tend to attract lower prices. • Cull cows and bulls have a limited local market and are transported long distances to southern or eastern abattoirs. • Finished cattle ready for local processing can be produced from cattle grown on Alice Springs and central Queensland pastures, with greater opportunities to meet quality beef specifications. Overall • Beef production from northern Australia mostly finds its way to export markets, including manufacturing beef to Japan and the United States.

Sources of Information on Markets for Northern Producers ABARES, Northern Australian beef industry Assessment of risks and opportunities, May 2012

ACIL Tasman, An Economic Analysis of the live exportation of cattle from northern Australia, October 2012

Department of Agriculture, Forestry and Fisheries, Live Assessing to Meet Market Specifications, 2012

MLA Livelink (monthly live exports data)

Live Export Care, Australia’s Live Exports Industry

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Market Information Sources

Indigenous owners and managers can obtain information on market prices and specifications from both direct and indirect sources. Direct market information sources are people and organisations directly engaged in the buying and selling of livestock such as: • meatworks • live exporters • store buyers • livestock agents. Indirect market information sources can be obtained from a range of market reporting services, including: • Meat and Livestock Australia (MLA) provides market data and market analysis services for all beef industry sectors, including a free weekly email news update. Subscription is via www.mla.com.au. • National Livestock Reporting Service (NLRS) independently collects market data from the key auction and direct markets, in addition to slaughter statistics, wholesale, skin and hide prices. • Livestock agents such as Elders, Ray White Rural and Landmark produce regular market reports. • Relevant media sources include: »» rural newspapers such as Queensland Country Life and WA Countryman »» Beef Central, a free online news and market intelligence service specialising in the Australian beef industry, www.beefcentral.com »» AuctionsPlus, www.auctionsplus.com.au »» Radio – ABC Country Hour »» TV – ABC Landline. Interpreting Reported Cattle Prices Market reporting services source information from saleyard auctions and meatworks’ price quotations. Prices for different classes and specifications may be quoted on a:

• cents per kg liveweight (c/kg LW), or • cents per kg dressed (carcase) weight (c/kg DW) for slaughter cattle.

The dressing percentage is used to estimate a live animal’s carcase weight from its liveweight:

Dressing percentage = Carcase weight X 100 Final liveweight

For example, if a 500 kg cow produces a 250 kg carcase, the dressing percentage = 50%. On this basis, a price of $3.00 per kg DW is equivalent to $1.50 per kg LW.

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Further Information on Markets and Prices MLA Market News

MLA Publications

Beef Central website

AuctionsPlus

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Marketing Strategies

To implement an effective marketing strategy the pastoral manager should:

• understand the supply chain including transport and selling costs • source timely and accurate market price information, so you know what your cattle are worth • be aware of alternative markets and their specifications • choose the market most suitable and profitable for a certain line of cattle from your property • muster cattle and draft into weight and class ranges to suit particular markets • be part of a wider integration of supply chains linking breeding, growing out, backgrounding and feedlotting, including with non-Indigenous producers who may have better market access • in the longer term – change management practices and genetics to better target customer specifications. Supply Chain and Transport and Selling Costs The supply chain for producers may include breeding, growing out, backgrounding, and finishing on the way to market outlets. Knowledge of transport and selling costs in the chain to various markets is essential for producers in remote areas. Local livestock agents or staff from the WA Indigenous Land Service (ILS) or NT Indigenous Pastoral Program (IPP) can assist in assessing the suitability of proposed turnoff from a particular property, and provide information on market trends. Specifications for Indonesian Live Export and Alternative Markets Because of quota and weight restrictions to the Indonesian live export market, alternative live cattle export markets and domestic markets have to be found.

Sale description of feeder or store cattle can include liveweight, sex and dentition. Other descriptions that may be used include breed content, fat score, frame score, muscle score, pregnancy status, horn status, temperament, structure, and colour.

Examples of specifications for export and domestic markets are provided in Table 2.3 on the following page.

If live sales to the Indonesian market are much below 350 kg/head, the cost of production per kg (See Module 1 Business Management) is higher because too few kg are being produced. Hence, if you supply the Indonesian live export market, you should retain cattle as long as possible to lift their average sale weight to be as near as possible to the 350 kg maximum accepted.

For heavier markets such as the Philippines and Brunei, it may be possible to retain some steers less than 320 kg for an additional season. They may attract a lower price per kg than in Indonesia, but can still be profitable because the cost of production per kg is less.

Niche markets are also available such as selling mickey bulls to Turkey.

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Table 2.3 Live Cattle Specifications

Transaction Indonesian Live Egypt Live Export Domestic Yearling Export Feeder Feeder Liveweight (kg) 260–350 350–550 300–400 Brahman, or Brahman, or Breed All breeds Droughtmaster type Droughtmaster type Steers, Young bulls, Sex Males only Steers, heifers sprayed heifers Dentition 4 or less 0–2 Fat score Store 1–2 Pregnancy Unjoined/PTE Unjoined/PTE Status — Females Check with buyer, agent HGP Status Any Nil or extension officer Tipped, scurred, Horn Status dehorned, polled

Notes: HGP – Hormone Growth Promotant PTE – Pregnancy Tested Empty

Source: Live Export, FutureBeef; Domestic, Australian Country Choice

Photo 2.4 Aerial View of an Indonesian Feedlot

Courtesy “Beef Central”

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Integration into Supply Chains Some larger Indigenous organisations including the Indigenous Land Corporation (ILC) and Morr Morr Pastoral Company in Queensland, have supply chains which integrate their breeding properties with growing out areas to add value to their production. Weaner cattle sent from breeding areas gain weight in growing out areas to become feeder or store cattle, and are closer to markets. Change in Management Practices A longer term marketing strategy is to change management practices to improve growth rates and carcase quality and to better target customer specifications. This can be achieved through better nutrition, genetic programs and live animal assessment. Supplementation and Hormone Growth Promotants Supplementation and Hormone Growth Promotants (HGP) practices are covered in detail in Module 6 Herd Management and Production. Changing genetics Changing genetics may involve such measures as using bulls with better genetic merit which produce progeny suited to different markets. Genetic programs take advantage of hybrid vigour from cross- breeding, higher fertility and pregnancy testing (see Module 6 Herd Management and Production). Live animal assessment for slaughter markets Live animal assessment, including the use of scales to draft cattle into weight lines, assists in ensuring compliance with specifications to attract premium prices. These include the Japanese Ox, EU and MSA markets. Enterprises in more productive areas, such as Alice Springs and central Queensland, may benefit from live assessment.

Traits to be measured or estimated include sex, dentition (number of permanent erupted incisor teeth), liveweight, estimated carcase weight and P8 fat depth. The P8 site is on the rump, forward of the tail head above the short ribs, as shown in Figure 2.3 on the following page.

The age of cattle can be estimated from their dentition. AUS-MEAT gives the following approximate age of cattle on the basis of dentition. (AUS-MEAT is responsible for establishing and maintaining the National Industry Standards for Meat Production and Processing in Australia.) A diagram illustrating the various dentition stages is provided in Figure 2.2 on the following page.

Table 2.4 Dentition Table

Dentition (teeth) Age Range (months) 0 Birth–20 2 18–30 4 24–36 6 30–42 8 >40 Source: AUS-MEAT 14 back to top MODULE 2 markets and marketing

Figure 2.2 Dentition

0 tooth

2 tooth

4 tooth

7 tooth

8 tooth

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Figure 2.3 Location of P8 Site

P8 Site

Source: FutureBeef Specifications for Slaughter Cattle Figure 2.4 on the following page provides an example of an abattoir grid sheet which lists the applicable prices for each class of cattle against criteria such as dentition, fat cover, bruising, shape, meat colour, fat colour and weight. This grid applies to grassfed cattle processed at the Teys plant at Beenleigh, Qld and illustrates the premiums available for quality cattle including those produced to meet EU and MSA specifications. MSA grading is now available at JBS Swift plants in Townsville and Rockhampton. MSA provides an endorsement of quality for graded cuts of red meat indicating product has met quality standards for tenderness, juiciness and flavour.

After slaughter, feedback sheets are provided by the processor to the producer to show how animals performed against the grid.

Photo 2.5 D rafting Sale Cattle in Bohning Yards, Alice Springs

Source: NTCA

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Figure 2.4 Example of Abattoir Grid Sheet

Source: Teys Australia

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Marketing Strategies – Key Points

• Know your supply chain and transport and selling costs. • Draft cattle according to customer requirements and market specifications. • Look for alternative live export markets for both feeder and slaughter cattle. • Look for alternative local markets in southern growing out areas and feedlots. • It is better to hold cattle longer whilst they are still gaining weight. For example, the cost of production per kg is higher for light steers if they are sold to Indonesia at weights below 350 kg, since too few kilograms are being produced. • Take advantage of hybrid vigour characteristics achieved from cross- breeding for higher growth rates and higher fertility. • Use bulls with better genetic merit which produce progeny suited to different markets. • Explore premium markets for turnoff from more productive areas such as Alice Springs and central Queensland, including markets that require MSA and EU specifications to be met.

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Selling Methods for Marketing Options

Your choice of selling method will depend on access to target markets and what is available in your particular region such as station yard inspections for live exports, saleyards for stores, or abattoirs for the sale of slaughter cattle. Regardless of the selling method, a transaction levy of $5/head is paid to MLA on all cattle sales. The following section sets out the various methods available for selling your cattle. Live Export Live exporters purchase cattle through their cattle buyers or livestock agents. Professional buyers work with producers to ensure quality animals are selected, to meet the customers’ requirements and the health protocols of the importing country. The producer then delivers them to the exporters’ holding areas for pre-shipment quarantine, where they are weighed. Price is generally negotiated on a c/kg LW basis. Agents can assist with all forms of sale with commissions of up to 5% payable. Using an agent includes del credere insurance which guarantees that the seller will receive payment for the sale. Domestic Store and Feeder Cattle The domestic store and feeder cattle market has similar buying and agency services as described for the live export market. Meatworks Cattle can be sold to the meatworks with or without a livestock agent. Sellers are paid on an ‘over- the-hooks’ basis according to carcase weight and grade. Generally, transport to the abattoir and the MLA transaction levy are paid by the vendor, with ownership changing at the point of slaughter.

All producers who sell over-the-hooks or to AUS-MEAT-accredited abattoirs through Auctions- Plus (refer below) will get feedback on their cattle. The feedback uses AUS-MEAT language and includes the company’s grade and value for each carcase. The abattoir also outlines the specifications for relevant markets using the same language. This feedback is valuable for identifying problems and opportunities to improve production to meet specifications. Saleyards Cattle sold at a saleyard are sold at auction using a livestock agent. Most of the larger saleyards have scales and sell on a LW basis. Saleyard fees range from around $4 to $7.50 per head. Additional charges apply when NLIS tags cannot be read or have to be replaced if lost. Saleyards relevant to the northern cattle industry are located at:

WA Muchea, north of Perth

NT Bohning, Alice Springs Qld Cloncurry Charter Towers Longreach Rockhampton (Gracemere) Winton Roma. Mareeba

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AuctionsPlus AuctionsPlus is a computer-based on-line system for selling livestock based upon description. Nationwide cattle sales are held each week and bids can be taken through your preferred livestock agent or by you using your home computer. The sale is ‘on property’, and livestock is assessed prior to sale by an accredited AuctionsPlus assessor who enters a description and photos of the cattle into a computer-based catalogue.

Potential buyers must register and receive a user code and password that allows them to view the catalogue. Selling livestock on AuctionsPlus is through the vendor’s preferred livestock agent. The system enables the cattle transaction, reserve price setting and legal change of ownership without the seller, buyer or cattle having to come together physically at the time of the sale.

Cattle can be sold on the basis of $/head, c/kg LW or c/kg DW or on a grid. AuctionsPlus has a listing fee of $5.90/head. Agent fees, including assessing, are charged separately. AuctionsPlus delivery is farm gate and the purchaser pays the freight unless offered by the seller. Other Producers and Feedlots Cattle can be sold to other producers including local feedlots, with or without the assistance of a livestock agent.

Cattle are sold on a LW basis, either c/kg or $/head.

Case Study - Morr Morr Pastoral Company (MMPC) Market Diversification

• The live export crash necessitated market diversification. • More steers are now sold into the store market in central Queensland to repeat buyers. • MMPC has purchased a growing out property to further diversify its market opportunities. • The live export crash has removed the floor price depressing local store cattle prices. • Heifers are sold either to local re-stockers or the live export market. • Slaughter cattle are sold to Townsville abattoir. • Market information comes from local livestock agents or news reports. • Abattoir feedback sheets are studied to better understand the markets, pricing and grading systems. • The manager visits JBS Swift meatworks in Townsville to gain an understanding of the slaughter process and the grading system.

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Selling and Marketing Options – Key Points

• Live exports and domestic store and feeder cattle are sold through buyers or agents. The price received is c/kg LW. • Sales to meatworks can be handled with or without an agent. The price received is on an ‘over-the-hooks’ basis, according to carcase weight and grade, c/kg DW. • Cattle sales at saleyard auctions are carried out through an agent. The price is on a LW basis — either c/kg or $/hd. • Auctions Plus is a method of computer-based selling based upon description of the cattle. Cattle can be sold on the basis of $/head, c/kg LW c/kg DW, or on a grid.

Sources of Information on Selling and Marketing Options The AUS-MEAT language | FutureBeef

Meat Standards Australia

AuctionsPlus

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Stock Movement Regulations and Assurances

Producers must be aware of their legal requirements relating to stock movements or sale within and between states as well as for live export. These requirements cover:

• proof of ownership • traceability • prevention of introduction or spread of diseases, pests and, in some cases, weeds • animal welfare.

In addition, certain markets require other livestock product assurances. For instance, animal welfare requirements for live exports now means meeting reporting obligations under the Federal Govern- ment’s new Exporter Supply Chain Assurance System (ESCAS) and for livestock to be fitted with National Livestock Identification System (NLIS) tags. There may be other requirements such as HGP-treated animals not being accepted by Egypt or EU. Animal Welfare There are new Australia-wide rules in relation to transporting livestock. An animal is not fit to be loaded for transport if it:

• is not strong enough to undertake the journey • cannot walk normally, bearing weight on all legs • is severely emaciated or visibly dehydrated • is suffering from severe visible distress or injury • is in a condition that could cause it increased pain or distress during transport • is blind in both eyes or • is in late pregnancy. Movement Requirements There are five main requirements for cattle movement or sale within and between states and territories regarding:

• livestock brands, earmarks and property identification codes • Waybills and National Vendor Declaration (NVD) Waybills • NLIS • movement requirements into a particular state or territory • movement requirements relating to cattle tick zones.

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Livestock Production Assurance The Livestock Production Assurance (LPA) program is the Australian livestock industry’s on-farm food safety program. It meets the stringent requirements of our export markets and provides an assurance of the safety of red meat grown on Australian farms. This includes the European Union Cattle Accreditation Scheme (EUCAS).

Producers who become LPA-accredited commit to carrying out specific on-farm practices in order to fulfil their responsibility to produce safe red meat.

LPA covers on-farm practices in five key areas:

1. Property risk assessments Producer responsibility: To minimise the risk of livestock being exposed to sites that are unacceptably contaminated with persistent chemicals. 2. Safe and responsible animal treatments Producer responsibility: To ensure animal treatments are administered in a safe and responsible manner that minimises the risk of chemical residues and physical hazards. 3. Stock foods, fodder crops, grain and pasture treatments Producer responsibility: To minimise exposure of livestock to foods containing unacceptable chemical contamination and guarantee livestock are not fed animal products. 4. Preparation for dispatch of livestock Producer responsibility: To ensure livestock are fit for transport and minimise the risk of stress and contamination of livestock during assembly and transport. 5. Livestock transactions and movements Producer responsibility: To ensure traceability requirements, with respect to treatments or exposure to food safety hazards, have been fulfilled for all livestock movements - between farms and feedlots, and including to slaughter and live export. TheLPA National Vendor Declaration (LPA NVD) is the main document behind Australia’s meat and livestock food safety reputation. When an LPA NVD is signed, the producer is sharing information on livestock history, and declaring compliance with all LPA requirements. It enables important information regarding livestock history to be transferred through the supply chain.

NLIS is Australia’s system for identification and traceability of livestock. LPA and NLIS work together to provide assurance to customers and consumers. Export Slaughter Interval An Export Slaughter Interval (ESI) is the minimum time that should elapse between administration of a veterinary chemical to animals and their slaughter for export. The ESI manages differences between Maximum Residue Limits (MRL) allowed for chemicals in Australia and the MRL of the trading partner. ESI advice is particularly important for quality assurance schemes, and especially for producers filling out the National Vendor Declaration forms, as part of the whole-of-chain management of exported product. Each respective ESI has been agreed to by the cattle industry and the registrant of the veterinary chemical.

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Withholding Period The Withholding Period (WHP) is the minimum period which must elapse between last administration or application of a veterinary chemical product, including treated feed, and the slaughter, collection, harvesting or use of the animal commodity for human consumption. WHPs are mandatory for domestic slaughter, and are on the label of every registered product.

Stock Movement Requirements – Key Points

• Producers must meet legal requirements relating to stock movements or sale within and between states as well as for live export. • NLIS whole-of-life identification enables individual animals to be tracked from property of birth to slaughter for food safety, product integrity and market access purposes. • Producers must comply with animal welfare protection regulations including whether animals are fit to load for transport. • Health certification is required to prevent the introduction or spread of disease and pests. • Livestock Production Assurance is required for some markets. • Export Slaughter Intervals (ESI) and Withholding Periods (WHP) apply to animals exposed to chemicals and going to meatworks for slaughter.

Information Sources on Stock Movement Requirements Laws for transporting livestock

NT Cattle Movement Requirements Fact Sheet 1/01/2013

Qld regulations for transporting and selling livestock

WA Livestock Movements into out and within WA

Livestock Production Assurance

Information can be found at Export Slaughter Intervals and Chemical Withholding Periods | FutureBeef

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MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 3 land information Contents

Introduction 3 List of Tables Indigenous Land Rights and Pastoral Figure 3.1 M ap of Northern Territory Land Holdings 5 Aboriginal Land 7 Land Rights 5 Figure 3.2 M ap of Queensland Indigenous Pastoral Land Holdings 5 Aboriginal Land 8 Land Tenure 10 Figure 3.3 M ap of Western Australian Indigenous Lands - Aboriginal Land (Kimberley & Pilbara) 9 Definitions and Complexities 10 Indigenous Land Holding Arrangements List of Photos in the Northern Territory 11 Cover Photo – Ghost gums Legal Framework 11 back to start of manual Permitted Land Uses 11 Indigenous Land Holding Arrangements in Queensland 12 Legal Framework 12 Forms of Land Acquisition 12 Renewals of Pastoral Leases 13 Indigenous Land Holding Arrangements in Western Australia 14 Legal Framework 14 Forms of Land Acquisition 14 Pastoral Lease Reform 15 Renewals of Pastoral Leases 15 Role of Land Councils 18 Overview 18 Northern Territory 18 Queensland 18 Western Australia 19 Land Use Agreements 20 Mining Tenures and Income from Mining on Indigenous Land 22 Mining Tenures 22 Mining Income 24

2 MODULE 3 land information

Introduction

Module 3 describes the rights and obligations of Indigenous land holders in the northern Australia pastoral industry. Indigenous land tenure is administered differently in the Northern Territory (NT), Queensland (Qld) and Western Australia (WA) which has resulted in a high degree of complexity. In addition, this whole area is undergoing a great deal of change.

• In November 2012, the Northern Australia Ministerial Forum (NAMF) initiated a review of land tenure management across northern Australia. A high level summary of key issues and opportunities will be discussed at the next NAMF meeting in Cairns in 2013. • The Qld Government also established a land tenure review in August 2012, with a report due by 31 May 2013. • WA has embarked on a range of legislative changes to the Land Administration Act 1997 (WA) through the Rangelands Reform Program. • All WA pastoral leases expire on 30 June 2015, with renewal conditional upon lessees meeting a range of obligations in relation to the quality and condition of the land. Indigenous pastoral businesses need to ensure they contribute to the various reviews with a view to achieving long lasting, useful outcomes for the industry, as well as remaining informed of their rights and obligations.

The module provides an overview of land-related information in the areas of land rights and land tenure, Land Councils, land use agreements and mining activity on Indigenous land. Indigenous Land Rights and Pastoral Land Holdings Land rights struggles and legislation have resulted in substantial Indigenous pastoral land holdings in northern Australia, with a concentration in the NT and the Kimberley region of WA. Land Tenure Native Title and Land Rights both recognise the traditional rights of Aboriginal and Torres Strait Islander peoples to land. Indigenous pastoral land through land trusts is held under various types of tenure in each State. These are currently under review. Land Councils The role of Land Councils is described in relation to ensuring that Aboriginal culture, traditions and law are respected and followed on Aboriginal land, and that the relevant Aboriginal people make informed decisions. Land Use Agreements Under land use agreements ratified by Land Councils, Aboriginal land can be utilised by third parties, including for grazing, which can assist Indigenous pastoralists to develop their land and earn income.

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Mining Tenures and Income from Mining on Indigenous Land The module describes how mining tenements are granted over pastoral land with the owners of the land having little control of these tenements or exploration licences. It also shows how mining companies can meet their corporate responsibility objectives by providing income and employment opportunities, to assist in the development of Indigenous pastoral properties. It highlights the importance for communities to decide on how these funds should be directed, in the best interests of pastoral development.

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Indigenous Land Rights and Pastoral Land Holdings Land Rights Since the early 1960s there has been a concerted effort by Indigenous people and successive governments to address the issue of Aboriginal land rights in Australia. The change began in the NT in 1963. In that year, the Yolngu people at Yirrkala in the north east Arnhem Land sent a representative to Canberra to protest their land rights in a decision by the Commonwealth Government of the day to excise part of their land for mining.

The protest was unsuccessful; however, the protest is still current today. This was followed by a strike of the Gurindji people of Wave Hill cattle station in 1966. The strike’s purpose was to demand wages and a return of some of their traditional lands. The demand was rejected but the Gurindji continued to camp on their traditional country at Daguragu.

There were demonstrations and arrests in southern Australia in support of the Gurindji walk-off, and many groups, including trade unions, churches and students, gave practical and fundraising support to the Gurindji. After nearly 10 years of protest, the Gurindji won title to part of their land in 1975.

In the meantime, a Federal referendum had been held on 27 May 1967 to determine whether two references in the Australian Constitution, which discriminated against Aboriginal people, should be removed. The amendments were overwhelmingly endorsed by all the states, winning 91% of votes cast.

These Constitutional amendments were considered by many to be representative of the prevailing movement for political change within Indigenous affairs. The referendum, together with the achievements of the Gurindji people, had put Aboriginal land rights on the national political agenda. Indigenous Pastoral Land Holdings Today, Indigenous landholdings occupy:

• 15% of the land area in WA • 50% of the land area in the NT (a large percentage is not used for pastoral activities) • 3.4% of the land area in Qld. The location of these holdings for each jurisdiction is shown in Figures 3.1, 3.2 and 3.3 on the following pages.

Understanding the rules and regulations that govern the use of land is important to being able to manage a pastoral property to the best advantage. This means that it is necessary for Indigenous pastoralists to know their rights and obligations under the various systems of land tenure that operate around Australia. This has become even more important, as Indigenous pastoral corporations struggle to meet their lease obligations following the market disruption caused by the live export suspension of 2011. The situation for Indigenous pastoral businesses in WA is further aggravated because all pastoral leases are due to expire in 2015. A lease will only be renewed if the lessee has met a range of conditions.

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Aboriginal people also need to know:

• their business diversification options under the various tenure arrangements • their rights when dealing with mining interests. Governments, working together with Aboriginal and industry bodies, can offer assistance in land matters under various Indigenous pastoral programs in each jurisdiction.

Further Information on Regional Maps Queensland ILC Regional Map Queensland

Northern Territory NT Indigenous Property Map

ILC Regional Map NT

Western Australia ILC Regional Map WA

WA Indigenous Land Maps

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Figure 3.1 Map of Northern Territory Aboriginal Land

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Figure 3.2 Map of Queensland Aboriginal Land

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Figure 3.3 Map of Western Australian Aboriginal Land (Kimberley & Pilbara)

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Land Tenure Indigenous Lands - Definitions and Complexities Land tenure is defined as the act or right of holding and using land rights. A land tenure system is the system of rules and conditions under which land rights may be held and used.

Following European settlement, the law of Australia originally considered that all the land of Australia belonged to the Crown (the government). In other words, all land was Crown land. The Crown could then grant or create interests in this land. Those interests could be freehold (what is commonly thought of as ‘ownership’ of land) or leasehold. Both of these interests carry with them a legal right to hold, occupy and use the land. That legal right is known as a land title. Land title can be held by a person or an organisation or another legal entity. The granting of freehold land title means that the land is no longer considered Crown land but is ‘owned’ by the person or organisation that holds the land title.

Native title and land rights both recognise the traditional rights of Aboriginal and Torres Strait Islander peoples to land. However, they are legally very different terms. Native title is based on traditional Indigenous ownership of land and waters. Land rights are a legislative response by parliaments to those traditional rights.

Aboriginal land is private property owned under special title. Aboriginal land is not owned by individuals. It is granted as a communal title. Land is formally held by land trusts - groups of Aboriginal people who hold the title for the benefit of all the Traditional Owners and people with a traditional interest in the land.

A review of land tenure management across northern Australia was announced in December 2012, following an agreement by Federal, Qld, WA and NT Regional Development Ministers at the Northern Australia Ministerial Forum (NAMF). The review is the first stage of understanding the complexities of land tenure throughout Australia, with a view to the various jurisdictions moving to a consistent approach to land tenure management. The NAMF Expert Advisory Panel will conduct the review and will report back to the next NAMF meeting in 2013.

In late July 2012, the Qld Government also announced a review of land tenure. Submissions closed in late August 2012 and the review team is due to report by 31 May 2013.

Changes to land tenure may open the door to increased native title claims on previously classed pastoral leases which are, at present, exempt from native claim. The following provides information on how Indigenous holdings fit into the various land tenure systems in the three northern jurisdictions.

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Indigenous Land Holding Arrangements in the Northern Territory Legal Framework In the NT, most Indigenous land is held under the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth) (ALRA) and is classed as Aboriginal freehold. The Northern Land Council (NLC) and Central Land Council (CLC) are two of four Land Councils in the NT that were established under the Act to manage the Aboriginal Land Trust areas. These two Land Councils are the most likely of the four councils to be involved with pastoral areas.

Aboriginal Land Trusts in the NT are statutory bodies under the ALRA. They hold the title to land handed back to the Traditional Owners under the ALRA. An Aboriginal Land Trust has certain responsibilities in relation to the land that it holds, as is set out in the ALRA. The Land Trust cannot carry out those duties unless a direction is given to it by the Land Council which is responsible for that particular area. Although freehold is the most secure form of tenure in Australia, Aboriginal freehold land is inalienable. This means it cannot be bought or sold or mortgaged, and thus remains unencumbered by debt.

The consultation team identified 36 Indigenous pastoral properties in NT held under the ALRA, of which a significant number had entered into Pastoral Land Use Agreements (PLUA). These Agreements must be registered under Section 19 (S19) of the ALRA. In addition, four pastoral leases are owned by private interests that have Indigenous heritage, and have been handed down through their families.

There have been some changes affecting Aboriginal pastoralists directly under the Aboriginal Land Rights (Northern Territory) Amendment Bill 2006. These mainly relate to expediting the granting and negotiations of mining and petroleum exploration licences on Aboriginal land. Permitted Land Uses There are no direct restrictions on what business activities can be conducted on Aboriginal freehold land; that is grazing licences can be issued, tourism ventures and carbon farming established. However, the land uses have to be ratified by the Land Councils under Section 19 of ALRA. The S19 Land Use Agreements process gives Traditional Owners an opportunity to consider development terms and conditions and the right to consent to, or reject, proposals on their land.

The NT Land Councils carry out consultations and negotiations on behalf of Traditional Owners with those interested in conducting commercial activities on Aboriginal land. The Land Councils must ensure that any land use proposal is fair and equitable. Multi-disciplinary teams within the NT Land Councils comprising regional staff, lawyers, anthropologists and external experts, undertake a rigorous assessment of all land use proposals. The NLC also has established a working relationship with the National Australia Bank, which assesses all business plans submitted with land use proposals.

Traditional Owners are then given the opportunity to make an informed decision in accordance with their traditional decision making processes. Affected Aboriginal people and communities are also given an opportunity to express their views in relation to land use proposals. If informed consent is given, the Land Council may direct the appropriate Aboriginal Land Trust to enter into a S19 Land Use Agreement with the proponent. 11 back to top MODULE 3 land information

Indigenous Land Holding Arrangements in Queensland Legal Framework In Qld, Aboriginal groups have acquired land under a variety of titles. These include:

• pastoral leases • statutory Aboriginal freehold • trustee arrangements. However, the majority of Indigenous held land in Qld is in the form of pastoral leases, indicating there are some limitations to diversification of business activity on such land. Sub-leasing and agistment agreements must be approved by the Minister for Natural Resources and Mines.

The Qld government has recently made significant changes to the framework for Indigenous land ownership.

Under recent amendments to the Aboriginal Land Act 1991 (Qld) and Torres Strait Islander Land Act 1991 (Qld), land will now be granted to corporations registered under the Commonwealth Gov- ernment’s Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). Previously new land trusts were established to hold the land. The CATSI Act guides how Indigenous corporations are run and the Office of the Registrar of Indigenous Corporations (ORIC) is the independent statutory body that administers the CATSI Act. ORIC also supports and regulates the corporations that are incorporated under the Act. It does this in a variety of ways – by:

• advising them on how to incorporate • training directors, members and key staff in good corporate governance • making sure they comply with the law • intervening when needed. The Aboriginal and Torres Strait Islander Land Holding Bill 2012 provides a statutory framework for Indigenous land access on State rural leasehold land that is leased for agriculture or grazing. It sets out the requirements for Indigenous Access and Use Agreements (IAUA) and Indigenous Land Use Agreements (ILUAs) in the Land Act 1994 (Qld). Forms of Land Acquisition In the past, major pastoral lease holdings were acquired by the Aboriginal Development Commission and transferred to their Traditional Owners. The transfer of Delta Downs Station to the Kurtjar people in 1982 is an example of this (Refer to Case Study 2).

At present, the Indigenous Land Corporation (ILC) is active in Qld in acquiring and divesting leasehold properties.

Lawn Hill and Riversleigh Pastoral Stations provide another example of Indigenous land acquisition. The mine site of Century Mine (owned by MMG Limited) in north west Qld is surrounded by Lawn Hill and Riversleigh Pastoral Stations which were acquired by the mining company in 1996. In 1998, the Gulf Communities Agreement (GCA) was executed which provided Native Title approval for the development of the mine.

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A key part of the GCA was the transfer of ownership of the stations owned by the mining company to the Waanyi people. Lawn Hill and Riversleigh Pastoral Holding Company (LHRPHC) was incorporated in December 1998 and the pastoral leases of Lawn Hill and Riversleigh Stations were transferred to LHRPHC. Shares in LHRPHC were issued to the Waanyi people representing 49% of the company. Further transfers of share capital have occurred over ensuing years such that 51% of shares are held by the Waanyi people and 49% by MMG Century. Renewals of Pastoral Leases The State Rural Leasehold Land Strategy or the ‘Delbessie Agreement’ is a collaborative agreement between the Qld Government, Agforce (which is the peak body for the beef, sheep and grain industries in Qld) and the Australian Rainforest Conservation Society. The agreement aims to assist land managers to balance using the land profitably with maintaining healthy land condition and adapting farming practices to address challenges such as climate change.

The agreement applies to all rural leasehold land. Using a mixture of incentives and legal remedies, the framework introduced benefits to stakeholders by:

• providing security of tenure through longer lease terms • clarifying duty of care where this has previously not been defined • enabling lease land condition to be assessed using scientifically-based guidelines • introducing land management agreements to guide ongoing land management • promoting voluntary conservation agreements and Indigenous access to State rural leasehold land for traditional purposes • clarifying what will happen if land is identified as having significant environmental values that should be conserved within the protected area estate; for example future national parks.

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Indigenous Land Holding Arrangements in Western Australia Legal Framework In WA, the issue of land tenure is covered under the Land Administration Act 1997 ( WA) (LAA). The Pastoral Lands Board is a statutory authority established under Section 94 of the LAA charged with administering WA pastoral leases in accordance with Part 7 of the Act. Pastoral lessee’s duties in regard to leased land are set out in Section 108 of the Act. These duties are:

1. A pastoral lessee must, to the satisfaction of the Board, at all times manage and work the land under the lease to its best advantage as a pastoral property. 2. The lessee must use methods of best pastoral and environmental management practice, appropriate to the area where the land is situated, for the management of stock and for the management, conservation and regeneration of pasture for grazing. 3. Except with the written permission of the Board, the land under a pastoral lease must be worked as a single pastoral unit. 4. The lessee must maintain the Indigenous pasture and other vegetation on the land under the lease to the satisfaction of the Board. 5. In satisfying itself for the purposes of subsection (4), the Board must seek and have regard to the advice and recommendations of the Commissioner on the matter. 6. In subsection (2) — stock means — a. authorised stock; and b. stock for which a permit has been issued under section 122A. If the Pastoral Lands Board is not satisfied that a pastoral lessee is meeting any of its obligations, it can issue directives to the lessee to correct the situation. If the directives are not complied with, then default notices can be issued which can potentially lead to prosecution and forfeiture. Forms of Land Acquisition The WA Government established the Aboriginal Land Trust (ALT) under theAboriginal Affairs Planning Authority Act 1972 ( WA) (WAAAPA Act) to acquire, manage and use land for the benefit of Aboriginal people. Most of the pastoral leases acquired have been handed back to communities through their Aboriginal corporations. Since the ILC began acquiring land in 1998, it has purchased additional alienated land, mostly in situations where Native Title has been determined. In accordance with its Charter, ILC aims to provide sound management, training and employment opportunities and divest these properties once they become self- sufficient.

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Pastoral Lease Reform Currently there are 32 Indigenous pastoral leases in the Kimberley and nine in the Pilbara. The ALT still holds six leases - four in the Kimberley and two in the Pilbara. The consultation team was informed that there are 10 to 12 sub-lease agreements with third parties.

Pastoral leases are for the grazing of animals and ancillary activities. Agricultural development is approved for pastoral leases by the issue of a Diversification Permit. The WA Government, through the Department of Regional Development and Lands, has commenced the Rangelands Reform Program. This program aims to address the vision for the economic and social future of the rangelands and to tackle ongoing issues faced by the pastoral industry in the rangelands. The Rangelands Reform Program is a three year program that commenced in December 2010. In March 2012, the WA Government approved the drafting of amendments to the LAA, and consequen- tial amendments to other Acts, to implement the new land tenure options. The major changes being progressed are as follows:

• Rangelands Lease is a new form of tenure which is intended to allow for multiple and varied uses of the rangelands, provided that the use is broad scale and consistent with the preservation and ongoing management of the rangelands as a resource. • Perpetual Pastoral Lease allows for a pastoral lease with a perpetual term, with all other requirements and administrative responsibilities under the LAA to apply as for a term pastoral lease. • The renewal of pastoral lease provisions provide that the Minister has to renew a pastoral lease for the same term, if there is no outstanding breach of the lease under the terms of the LAA or rangeland condition-monitoring requirements. • A new permit provision for appropriate ‘primary production activities’ as defined in the Native Title Act 1993 (Cwth) (NTA) allows for a broader range of activities than is currently permissible under the LAA, including aquaculture activities and farm tourism as referred to under the NTA. • Changes are proposed to facilitate the conversion and increase of variable term pastoral leases to up to 50 years. • A mechanism is proposed for a streamlined process that enables the Transfer of Diversifica- tion Permits to a new lessee if it wishes to continue with a diversification activity that existed prior to the transfer. Due to the complexities of drafting the amendments and the implications for consistency with the Native Title Act and National Competition Policy, a Bill has not yet been tabled in the WA Parliament. Renewals of Pastoral Leases All WA Pastoral leases are due to expire in 2015. The legislation that governs pastoral leases provided that, 10 years prior to the expiration of the term, pastoralists could write to the relevant Minister requesting renewal of the pastoral lease. If the lessee has complied with the terms of the lease, the Minister would then recommend renewal.

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The offer of lease renewal in 2015 is subject to the following conditions:

• compliance with lease conditions, including stocking requirements and maintenance of infrastructure, at the time of expiry on 30 June 2015 • there being no Soil Conservation Notices or other orders by the Commissioner of Soil and Land Conservation in force (refer to the Department of Agriculture and Food website for more information) • there being no unfulfilled requirements of the Commissioner of Soil and Land Conservation and/or the Pastoral Lands Board in relation to the observance of lease conditions under the Soil and Land Conservation Act 1945 (WA) and the LAA • exclusion of areas from the existing lease that may be required for public works, conservation, national park, nature reserve or other State purposes. The annual lease rental applicable up to 30 June 2015 will also apply to the renewed lease. The rental review period for the renewed lease will continue to apply every five years in accordance with the LAA. The first rent review for the renewed lease will be on 1 July 2019.

With all pastoral leases up for renewal in 2015, the immediate prospect is that a lessee needs to ensure that there are no outstanding compliance issues as, technically, the lease cannot be renewed if there are outstanding compliance issues.

The following link provides information on the lease renewal process and answers the most common questions regarding lease renewal.

Land Tenure – Key Points

• Land tenure is the system of rules and conditions under which land rights may be held and used. • If considering Land Use Agreements or Grazing Licences, contact the Land Council for your particular area for advice. • In the NT, most Indigenous land is held under Aboriginal Land Rights (NT) Act 1976 and is classed as Aboriginal freehold. • In Qld, Aboriginal groups have acquired land under a variety of titles including pastoral leases, statutory Aboriginal freehold and trustee arrangements. The ‘Delbessie Agreement’ also sets out a framework for the renewal of rural leases. • In WA, the Aboriginal Land Trust (ALT) acquired pastoral leases for the benefit of Aboriginal people and most of these have been handed back to communities through their Aboriginal corporations. All pastoral leases expire in June 2015.

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Further Information on Land Tenure Indigenous Land Tenure Reform

Fundamentals of Land Ownership

RIRDC Land Tenure and Land Management Alternatives

Northern Territory Amendments to the Aboriginal Land Rights Act 2006

Leasing Land from the Central Land Council

S19 Land Use Agreements

Leasing Land from the Central Land Council

Queensland Aboriginal and Torres Strait Islander Land Holdings Bill 2012

State Leasehold Land Strategy

Western Australia WA Lease Renewals

Department of Regional Development and Lands – Rangelands Reform agenda.

Paper on Land Ownership in Western Australia (includes section on Aboriginal Land Trusts Pg7)

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Role of Land Councils Overview Land Councils are Commonwealth Statutory Authorities representing Aboriginal affairs at State or Territory level. They help Aboriginal people reclaim and manage their land. Their role is to ensure, as far as possible, that:

• Aboriginal culture, traditions and law are respected and followed on Aboriginal land • the relevant Aboriginal people make informed decisions • commercial and resource exploitation agreements are fair. Land Councils must be satisfied that the relevant traditional Aboriginal landowners understand the nature and content of any land use agreement, including mining, which is entered into on their behalf and that they agree to it. They have a particular role to play in lease renewals in WA, and in the NT they are the driving force within the Indigenous Pastoral Program in negotiating PLUAs. Northern Territory Land Councils in the NT that are relevant to the northern Australia pastoral industry are the Northern Land Council and the Central Land Council. The role of the NT Land Councils, as set out in the ALRA, is to:

• discover and express the wishes and the opinion of Aboriginal people living in the area of the Land Council as to the management of Aboriginal land in that area and appropriate legislation concerning that land • protect the interests of traditional Aboriginal owners of, and other Aboriginal people interested in, Aboriginal land in the area of the Land Council • assist Aboriginal people in the taking of measures likely to assist in the protection of sacred sites on land (whether or not Aboriginal land) in the area of the Land Council • consult with traditional Aboriginal owners of, and other Aboriginals interested in, Aboriginal land in the area of the Land Council with respect to any proposal relating to the use of that land. Queensland Land Councils in the parts of Qld relevant to the northern pastoral industry are:

• Carpentaria Land Council Aboriginal Corporation • Cape York Land Council Aboriginal Corporation • North Qld Land Council Native Title Representative Body Aboriginal Corporation. Both the Qld and the WA Aboriginal Land Councils operate under the NTA. In the NTA, they are defined as Native Title Representative Bodies (NTRB). (It should be noted that the definition of NTRB captures a wide range of Indigenous organisations and therefore, there are NTRBs that are not Land Councils). The roles and functions for NTRBs which are described in this Act in Section 203b, are too detailed to repeat in this module. Reference can be made to the Act for further information.

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Western Australia Native representative bodies in the parts of WA relevant to the northern pastoral industry are:

• Yamatji Bana Baaba Marlpa Land and Sea Council which represents the Murchison, Gascoyne (Yamatji) and Pilbara (Marlpa) regions • Kimberley Land Council Aboriginal Corporation (KLC).

Role of Land Councils

• The role of Land Councils is to ensure that Aboriginal culture, traditions and law are respected and followed on Aboriginal land and that the relevant Aboriginal people make informed decisions. • In the NT, the Land Councils are governed by the Aboriginal Land Rights (NT) Act 1976 (Cwth). • In Qld, the Land Councils are governed by the Native Title Act 1993 (Cwth). • In WA, the Land Councils are also governed by the Native Title Act 1993 (Cwth).

Further Information on Land Tenure About Aboriginal Land Councils

Functions of Land Councils under the Native Title Act 1993 (Cth)

Northern Territory Northern Land Council Central Land Council

Queensland North Queensland Aboriginal Land Council Cape York Land Council Carpentaria Land Council Aboriginal Corporation

Western Australia Kimberley Land Council Yamatji Bana Baaba Marlpa Land and Sea Council

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Land Use Agreements

There are two types of land use agreement.

An Indigenous Land Use Agreement (ILUA) is a formal agreement between a Native Title group and others about the use and management of land and waters. ILUAs were introduced as a result of amendments to the NTA in 1998 and must be registered with the Native Title Tribunal.

The other is an agreement for a third party to use Aboriginal pastoral land and generally relates to subleasing pastoral land or providing agistment services. These agreements are known as a Pastoral Land Use Agreements (PLUA). In WA and Qld they are known as sub-leases and, in the NT they are known as Grazing Licences.

PLUAs and Grazing Licences provide Indigenous land owners with the means to generate income from their properties or land which could be used to invest in infrastructure and skills training for employees. In WA and Qld, pastoral lessees require ministerial consent to enter into a PLUA, whereas in the NT, Grazing Licences are organised through the Land Councils. For more information on these opportunities see Module 9 – Diversification and Income Earning Opportunities.

Land Use Agreements

• Indigenous Land Use Agreements are governed by the Native Title Act 1993 (Cwth). • Pastoral Land Use Agreements are known as sub-leases in WA and Qld and Grazing Licences in the NT.

The links that follow provide information from each jurisdiction about Indigenous Land Use Agreements. (continues on next page)

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Further Information on Land Tenure Indigenous Land Use Agreement Register, Search Page.

National Native Title Tribunal Land Use Agreements

Steps to an Indigenous Land Use Agreement

Northern Territory Northern Land Council Pastoral Land Use Agreements

Northern Territory Indigenous Land Use Agreement Template

Queensland Queensland Guidelines for Negotiating an ILUA

Queensland Land Use Agreements

Western Australia Western Australian Land Use Agreements

Western Australian Native Title and Land Use Agreements

21 back to top MODULE 3 land information Mining Tenures and Income from Mining on Indigenous Land Mining Tenures Most mining operations (including development, exploitation and exploration) work in accordance with relevant State and Territory statutes which allow the various Governments to grant mining title. These mining titles are commonly called tenements, in accordance with the procedures set out in the various statutes. Mining tenements are regularly granted over pastoral land, whether it is freehold land or another form of tenure. In most cases, the owners of the land have no control over the granting of a tenement or exploration licence. The landholder cannot interfere with the mining operations once the tenement has been granted, provided the holder of the tenement meets the requirements of the relevant statute, and any other conditions in the grant. Northern Territory The laws governing the granting of exploration licences and petroleum permits on Aboriginal land in the NT are the Mineral Titles Act 2010 (NT), the Petroleum Act (NT) and the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth). The NT Minister for Mines and Energy cannot issue an exploration licence or permit unless the applicant and the Land Council have entered into an agreement. Queensland TheNative Title Act 1993 (Cwth) applies to the grant of a tenement by the State over land subject to native title. The act also allows for a State to develop and use its own alternative provisions, once approved by the federal Minister. Section 5 of the Mineral Resources Act 1989 (Qld) also has some jurisdiction over the granting of mining and exploration licences.

The State must comply with the NTA when granting authorities to prospect (ATPs), petroleum leases (PLs) and pipeline licences over land subject to native title. As such, the right to negotiate procedures apply to ATPs and PLs granted under the Petroleum & Gas (Production & Safety) Act 2004 (Qld) over land subject to native title. Western Australia In WA, ownership of all minerals is vested in the State. Exploration and mining companies and individuals may access rights to minerals, subject to payment of rents and royalties, by obtaining exclusive tenements.

If there are no Native Title Claimant objections to a tenement application, then grant of the tenement may occur some months after the application. However, delays of more than 12 months can occur if objections to such grant are lodged by Native Title Claimants, under either the Mining Act 1978 (WA) or NTA.

Native title objections are usually avoided if an applicant and an affected native title claimant/holder sign the State Government’s standard heritage agreement (Regional Standard Heritage Agreement), which sets out the manner in which Heritage Surveys are to be conducted by the Claimants, paid for by the Company, to allow drilling and exploration activities such as trenching and bulk sampling to proceed and at the same time avoid any Aboriginal heritage sites.

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Mining Tenures Indigenous Land

• The NT Minister for Mines and Energy cannot issue a licence or permit unless the applicant and the Land Council have entered into an agreement. • Qld must comply with the Native Title Act 1993 (Cwth) when granting authorities to prospect. • In WA, the ownership of all minerals is vested with the State.

Further Information on Land Tenure Northern Territory Aboriginal Land and Resource Development in the NT

Mining on CLC Land

Queensland Native Title and Mining in Queensland

Mining and Queensland ILUAs

Useful Guide to issues to be addressed when dealing with Mining Companies

Landholder Information for dealing with Mining Companies

Western Australia Western Australian Mining Land Access

Mining on Aboriginal Reserves

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Mining Income Income from mining can assist the development of Indigenous pastoral properties. In addition to royalties, mining companies can offer assistance under their Corporate Social Responsibility policies. In both cases, if associated with an Aboriginal lease, it is important for communities to decide on how these funds should be directed in the best interests of pastoral development. Northern Territory Royalties paid to the NT and Federal Governments for mining on Aboriginal land is paid to the Aboriginals Benefits Account (ABA). The ABA distributes:

• 30% of the royalties to Aboriginal people affected by the mining on their land • 40% to Northern Territory Land Councils to administer their statutory responsibilities • the balance for the administration of the ABA and for distribution to Aboriginal people throughout the NT. Queensland TheAboriginal Land Act 1991 (Qld) – S203 covers the royalties in relation to mining on Indigenous land.

S203 applies if the State receives an amount by way of royalty under the Mineral Resources Act 1989 (Qld), the Petroleum and Gas (Production and Safety) Act 2004 (Qld) or the Geothermal Energy Act 2010 (Qld), in relation to land that is Aboriginal land.

The trustee of the land is entitled to receive, out of money appropriated by the Parliament, the percentage prescribed for the purposes of this subsection of the total royalty amount received in a financial year and must apply the amount received for the benefit of the Aboriginal people for whose benefit the trustee holds the land, particularly those that are affected by the activities to which the royalty amount relates. Western Australia Indigenous mineral rights in WA are not as well structured as in the NT or Qld. Mining can take place on lands reserved under the Aboriginal Affairs Planning Authority Act 1972 (WA) with the consent of the Minister for Mines. Before granting consent, the Minister must consult with the Minister for Aboriginal Affairs. There is no obligation to consult the Aboriginal Affairs Planning Authority, Aboriginal Lands Trust or Aboriginal communities. Royalties must be paid to the Crown; however, the Authority can receive royalties for the use of its land or natural resources which has been delegated to the Aboriginal Lands Trust.

The Bonner Review of the Aboriginal Lands Trust recommended that the WA government review the scheme for the payment of royalties to the Land Trust, and that the Trust pay all mining revenue to the communities affected by mining.

A large proportion of Indigenous-owned or controlled land in WA is potentially well placed to develop economic opportunities. Where lands overlay mineralised zones, there are opportunities for communities to receive economic benefit from rent, royalties and dividends as well as significant social benefits from meaningful training, employment or contracting opportunities.

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Ensuring the governance capacity of Indigenous communities and organisations to take up such opportunities is a priority.

Income from Mining on Indigenous Land

• Northern Territory: Royalties paid to the NT and Federal Governments for mining on Aboriginal land is paid to the Aboriginals Benefits Account (ABA). The ABA distributes 70% of the income to affected Aboriginal people and the NT Land Councils. • Queensland: S203 of the Aboriginal Land Act 1991 (Qld) deals with royalties payable in relation to mining on Indigenous land. • Western Australia: Indigenous mineral rights in WA are not as well structured as in the NT or Qld. The Bonner Review of the Aboriginal Land Trust recommended the WA Government review the scheme for payment of royalties to the Trust, and that the Trust pay all mining revenue to affected communities. A large proportion of Indigenous-owned or controlled land in WA is potentially well placed to develop economic opportunities.

Further Information on Mining Income on Indigenous Land Northern Territory The NLC describes the “Royalties” distribution in the Northern Territory in the article below.

The CLC response to Royalty income

Queensland See Section 203 of the Aboriginal Land Act

Western Australia Mining Royalties and other Specific Mining Taxes

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module four property management

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 4property management Contents

Introduction 3 List of Tables Station Maps 5 Table 4.1 Exam ple of The Importance of Station Maps 5 Rainfall Statistics 10 Sources of Information for Station Maps 5 Table 4.2 A verage Water Consumption What to Include on Your Map 5 of Beef Cattle 13 Sources of Maps 6 List of Figures Cultural Heritage Information 9 Figure 4.1 Exam ple of a Simple Climate and Weather Information 9 Property Map 6 Local Rainfall Information 9 Figure 4.2 S ame Property from Google Earth 7 Long Term Weather Forecasting 10 Figure 4.3 M ap of Australian Property Infrastructure 12 Artesian Basins 15 Repairs and Maintenance 12 Figure 4.4 Exam ple of a small Wat er s 13 portable yard 21 Fencing 17 Figure 4.5 H ow to Apply an Yards 18 NLIS Eartag 34 Portable Yards 20 List of Photos Trap Yards and Self Mustering 23 Cover Photo – Farm scene Roads 27 Photo 4.1 Windmills 15 Livestock Identification 29 Photo 4.2 Driving Pickets 18 Branding and Earmarking 29 Photo 4.3 Yard Building 20 National Livestock Identification Photo 4.4 P ortable Panels as System (NLIS) 32 Main Yard 22 Property Identification Code 33 Photo 4.5 C attle Trapped in Herd Management Systems 37 Small Yard 23 Livestock Production Assurance 38 Photo 4.6 Co nstructing a Trap Yard at Ullawarra Station, WA 24

back to start of manual Photo 4.7 Co nstructing a Trap Paddock on Lamboo Station, WA 25 Photo 4.8 T rap Gates in a Cooler Paddock 25 Photo 4.9 T ypical Station Road Building 28 Photo 4.11 Cattle Brand 29 Photo 4.12 E armark Pliers 29 Photo 4.13 R FID Scanner and Scale Reader 32

2 MODULE 4 property management

Introduction

Module 4 details the important role of pastoral property management to your business success and sustainability. Property management relates to the property infrastructure and livestock identification.

The manual covers a vast area of northern Australia and three different states and territories and as such there will be variations between the accepted practices of each jurisdiction. It is recommended that local advisers and extension officers be consulted for assistance before major works are commenced or if you are in any doubt as to the “best practice” for your jurisdiction or region. Station Maps Good property management requires information specific to each property that is valuable for understanding the local environment and for property management planning. A good station map that details paddocks, land types and infrastructure is essential. It is also a useful tool for the induction training of new employees. Cultural Heritage Information This section of the module explains the important role of management and staff as custodians of the land. Responsible managers and staff know the location of culturally important sites located within the boundaries of the property, recognise their significance and pay due respect to their heritage. Climate and Weather Information Climate is an important factor that determines the long term suitability of a region for particular livestock production systems. Rainfall affects short to medium term herd efficiency factors. Medium to longer term weather forecasting can assist in livestock tactical responses to conditions affecting production. Property Infrastructure The property infrastructure section covers the repair and maintenance and capital expenditure on water, fencing, yards and roads. Infrastructure is the backbone of the property, without it the property cannot function.

It would be impossible to run livestock across the north on extensive properties without infrastructure. Cattle, as do all living things, need water to survive. The construction and maintenance of secure water supplies is the most important part of a successful business.

To efficiently manage the herd, paddocks and yards will be necessary, so the construction of both of these need to be well planned and maintained. Access to all the main infrastructure will depend on roads. These roads will vary in their construction and maintenance program depending on planned their use and the frequency of that use. Livestock Identification Livestock identification is very important as it tells you, anyone else using your country (or parts of it) and your neighbours, who are the owners of a particular animal or group of animals. Livestock identification requirements vary from state to state. These requirements are detailed for Western Australia (WA), Northern Territory (NT) and Queensland (Qld).

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Good identification can also assist you in improving the management issues discussed in Modules 6 and 7 which deal with Herd Management and Production, and Husbandry, Health and Welfare, respectively. National Livestock Information System (NLIS) The National Livestock Identification System (NLIS) is Australia’s system for identification and traceability of livestock. This section of the module describes statutory requirements for the movement of stock off property as well as how NLIS can benefit herd management. Livestock Production Assurance (LPA) Producers who become LPA-accredited commit to carrying out specific on-farm practices in order to fulfil their responsibility to produce safe red meat. The supply chain begins on-farm. On-farm producers give certain declarations and assurances about their cattle treatments and handling. These declarations and assurances are required for access to some markets.

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Station Maps The Importance of Station Maps Having a good station map is the first step in gathering the information about your property. Your station map is one of the tools used to manage the pastoral enterprise and to plan future development, weed control, erosion control and paddock stocking rates. It is essential to know how the property fits into the local landscape and the individual area of specific land types and paddocks.

To begin the property planning process, it is necessary to identify property infrastructure, features and land management units. Property infrastructure includes fences and yards, stock water facilities, roads and buildings. Land management units are identified mainly by land and soil type, water and vegetation.

Every property includes a wide range of land types based upon variations in soil characteristics, vegetation cover and terrain. These features affect the carrying capacity of individual paddocks. There can also be a variety of land types within paddocks. Differing land types may cause some areas of a paddock to be more heavily grazed than others. Knowing the land types in different paddocks allows the Manager to stock each paddock profitably, as well as sustainably.

Land types and seasonal conditions have the greatest effect on pasture production. The main pasture growth in northern Australia is during summer. Once land condition deteriorates, its ability to grow useful pasture declines and it becomes more susceptible to future droughts and severe weed infestations. Sources of Information for Station Maps Topographic maps, aerial photographs and satellite imagery help identify infrastructure and features such as watering points, creeks and rivers, vegetation types, and problem areas such as erosion. Aerial photos and satellite imagery can be sourced from your local Lands Department, local Catchment Management Authority or the internet. All vary in cost, quality and usefulness, depending on how you want to use them or how large your property is. You should try to get the most current image available. You can map your property and complete your plan either digitally or as a hard copy, with plastic overlays for different features.

Google Earth also provides an opportunity to draw maps on your computer, provided that the resolution is sufficient to pick up the main property features. However, you don’t need to use these sorts of resources; a sketch of your property drawn to scale also allows you to map your property plan. What to Include on Your Map A good property map is an essential tool for any pastoral enterprise. The map can be as detailed or as simple as desired. A simple map of a property should contain, at a minimum: • paddocks • waters • yards • roads • watercourses.

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The map can also include such features as:

• terrain • vegetation • land types • cultural heritage information. There are a number of mapping programs that can be purchased off the shelf and loaded onto a computer. Some of these programs are also part of different beef cattle herd recording programs. The Rural Industry Research and Development Corporation (RIRDC) provides a very good summary of farm mapping software that producers can use. Sources of Maps Maps can be sourced from various government departments in each jurisdiction:

• WA – maps of pastoral properties can be obtained from Indigenous Land Services, Department of Agriculture and Food. • NT – maps of pastoral properties can be obtained from the Land Information Centre, Department of Lands, Planning and Environment. • Qld – maps of pastoral properties, vegetation types and satellite imagery can be obtained from the Maps, Imagery and Data section, Department of Environment and Resource Management.

Figure 4.1 Example of a Simple Property Map

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Figure 4.2 Same Property from Google Earth

Station Maps – Key Points

• Station maps can be as detailed or simple as required. • You can get information from your local Lands Department office or Catchment Management Authority. • Basic maps should include property infrastructure, land features and land management units.

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Further Information on Property Maps Your local extension officer as follows:

NT – Indigenous Pastoral Program Officer

WA – Kimberley Indigenous Management Support Service and the Pilbara Indigenous Land Service

Email: [email protected]

Northern Territory National Resource Maps NT

NT Land Information Systems

NT Mapping

Queensland Qld Mapping

Summary of mapping programs

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Cultural Heritage Information

Each Indigenous cattle property in northern Australia has been the home for Aboriginal people for many thousands of years. The groups who now own or manage this land retain information passed on to them by the generations that have gone before. Much of this information, that describes how to survive in their areas, is handed down in the form of stories. These stories are also associated with areas of significance within the boundaries of the property, which are now part of the pastoral business and operated by the local Indigenous corporation. These stories, significant sites and, in some cases, cultural material are all part of the rich fabric that is loosely described as ‘cultural heritage’.

Indigenous communities keep their cultural heritage alive by passing their knowledge, arts, rituals and performances from one generation to another; speaking and teaching languages; and protecting cultural materials, sacred and significant sites, and objects.

Land is fundamental to the wellbeing of Aboriginal people. The land is not just the obvious physical attributes of soil, rocks and plants, but a whole environment that sustains the people and their culture.

For these reasons, the custodians of the land within the boundaries of the pastoral property need to recognise and pay due respect to this heritage. This manual cannot cover all these aspects of cultural heritage. Nor does it seek to instruct Indigenous people on how to manage this most important part of their life. However, it is suffice to point out that all dealings on the land relating to development and operation of the property must be managed in accordance with cultural heritage information. Climate and Weather Information

Today, science has allowed us to take advantage of advances in climate modelling to assist us manage our properties better through the seasons. Across the country, many people have been engaged in collecting weather information for the Australian Bureau of Meteorology (BOM or the Bureau), both as paid observers and as voluntary observers.

There is a good chance that your property has been part of the voluntary service at some time over the years, collecting rainfall data for BOM to allow it to build a picture of rainfall patterns over the whole country. This information is important to the Bureau as it assists in creating models that predict future weather patterns.

The BOM website provides a link to Indigenous weather and seasonal descriptions. The addition of this information allows the rich history and experience of Indigenous people to be included in BOM’s forecasts of weather patterns. Local Rainfall Information Table 4.1 provides a summary of the statistics gathered by voluntary observers on a property near Camooweal in Qld near the Qld/NT border. This information was gathered continuously by volunteers over the past 100 years and has been summarised in the table. A network of 33 stations located within a 200 km radius of Camooweal allows the meteorologists to build a story about weather in the region.

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The data includes:

• mean or average rainfall • median rainfall.

The mean or average monthly rainfall is calculated by adding add up all the monthly rainfall readings and dividing by the number of readings (or months for which readings have been recorded). Median monthly rainfall is the middle reading when all the readings for that month are arranged in order from the lowest reading for the month to the highest reading for the month.

If the annual median is below the annual average, it means that there are more dry years than wet years. This helps you understand the rainfall patterns in your area. Even if you do not have BOM records, there may be other properties in your area that will give you a guide to the rainfall in your locality.

Table 4.1 Example of Rainfall Statistics

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

Mean 85.1 83.1 45.0 11.4 13.5 11.0 6.9 2.8 5.7 13.1 24.7 50.9 348.8 Median 51.0 59.9 23.9 0.0 0.0 0.0 0.0 0.0 0.0 4.0 10.4 30.4 314.0 Lowest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 83.1 Highest 600.0 339.6 289.9 175.8 224.8 210.9 126.5 43.7 90.2 114.9 119.1 387.9 1,038.0

Long Term Weather Forecasting There are a number of terms used today in weather forecasting that we constantly hear but sometimes really do not understand. Some of these are listed below to assist you in reading long term weather predictions.

The BOM provides the following description for the common terms used in long term weather forecasting. El Niño El Niño translates from Spanish as ‘the boy-child’. Peruvian fisherman originally used the term — a reference to the Christ child - to describe the appearance, around Christmas, of a warm ocean current off the South American coast.

Nowadays, the term El Niño refers to the extensive warming of the central and eastern Pacific that leads to a major shift in weather patterns across the Pacific. In Australia, particularly eastern Australia, El Niño events are associated with an increased probability of drier conditions. La Niña La Niña translates from Spanish as ‘the girl-child’. The term ‘La Niña’ has recently become the conventional meteorological label for the opposite of the better known El Niño.

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The term La Niña refers to the extensive cooling of the central and eastern Pacific Ocean. In Australia, particularly eastern Australia, La Niña events are associated with increased probability of wetter conditions. Southern Oscillation Index The Southern Oscillation Index, or SOI, gives an indication of the development and intensity of El Niño or La Niña events in the Pacific Ocean. The SOI is calculated using the air pressure differences between Tahiti and Darwin.

Sustained negative values of the SOI greater than −8 often indicate El Niño episodes. These negative values are usually accompanied by sustained warming of the central and eastern tropical Pacific Ocean, a decrease in the strength of the Pacific Trade Winds, and a reduction in winter and spring rainfall over much of eastern Australia and the Top End. You can read more about historical El Niño events and their effect on Australia in the Detailed analysis of past El Niño events.

Sustained positive values of the SOI greater than +8 are typical of a La Niña episode. They are associated with stronger Pacific trade winds and warmer sea temperatures to the north of Australia. Waters in the central and eastern tropical Pacific Ocean become cooler during this time. Together, these give an increased probability that eastern and northern Australia will be wetter than normal.

Climate Information – Key Points

• The Bureau of Meteorology (BOM) site has a great deal of information to assist farmers and graziers. • Local towns have paid recorders and collect detailed weather data on behalf of BOM. • Many cattle stations are voluntary recorders of daily rainfall. • Long term weather forecasts are available on the BOM website.

Further Information on Climate and Weather Bureau of Meteorology

Bureau of Meteorology – Indigenous Weather Site

Bureau of Meteorology – Information about climate statistics

Elders Weather

Landmark Weather

Australian Weather News

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Property Infrastructure

Your property infrastructure is a very important part of property management. Infrastructure management includes:

• maintenance of infrastructure • planning the development of new infrastructure. Repairs and Maintenance A pastoral enterprise includes significant investment in plant, machinery, buildings, fences, roads, yards and waters. All these items require regular and ongoing maintenance to reduce long term operating costs. As equipment ages and starts to deteriorate, the cost of maintaining it increases. If it has been operated poorly or without due care, or if it has not been maintained properly as per the manufacturer’s specifications, the costs can become quite large. Most of the information required to maintain plant, machinery, windmills and other pumping equipment is contained in the ‘Operator and Maintenance’ manuals you receive when you purchase a particular machine.

This section provides some basic information concerning these issues. However, you are advised to check with your supplier or other tradespersons to obtain the detailed information you require. These suppliers and tradespersons include:

• mechanics • electricians • builders • pumping supply retailers.

Keeping your infrastructure in good repair and working order can save considerable money over the years relating to:

• costly major repairs • loss of livestock condition due to cattle being stressed through: »» lack of water »» being locked in inefficient yards for too long • calf losses because of time spent in the yards and mothers needing to leave calves alone longer while they try to find a working watering point.

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Wate r s Well maintained livestock watering points, which provide adequate supplies of clean drinking water, are essential in the harsh environments of northern Australia. Daily consumption of water by cattle varies considerably according to:

• class of stock • age and condition of the animal • quality and nature of feed • climatic conditions • quality of the water.

In northern Australia, summer temperatures significantly influence daily intake of water. For example, at 25ºC dry cows (that is, non lactating cows) may drink 40 litres per day. This will increase to 70 litres per day at 32ºC, and higher during very hot conditions. Wet cows (that is lactating cows) may have a daily water intake that is 30% higher than for dry cows.

Table 4.2 Average Water Consumption of Beef Cattle

Class Average Daily Maximum Daily Requirement Requirement Beef Cattle 45 litres 60 litres Weaners 22 litres 30 litres

There are three major sources of water on a pastoral property:

• dams • natural rivers and waterholes • bores and wells. These can all cause issues for the Manager through:

• the water supply drying up • silt reducing the storage capacity in dams and waterholes • bore or well collapsing • equipment failure. Dams and Waterholes Up to half the water in station dams is lost through evaporation in northern Australia. This loss needs to be accounted for when calculating the size of the dam required. The smaller the surface area — the less evaporation; however dams with steep sides can cause problems for cattle watering directly from the dam.

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Dams and waterholes need to be checked each year to ensure that the level of silt accumulating in the bottom does not:

• get to a point where it will cause an issue of supply late in the year • cause cattle to bog (in the case of unfenced facilities) and become an animal welfare issue for the Manager. Measuring the level of silt can be easily done by either walking into the water until the mud on the bottom is felt, or by using a boat or raft to measure the depth to the mud by using a pole.

Most waterholes will have silt removed during a good run in the creek or river. It is possible to desilt a dam or waterhole to a limited extent using an excavator, while there is water in the dam. However, it is best that at any time a dam goes dry, the silt build-up is removed.

Consideration should be given to fencing off existing and new dams as this will:

• save cattle from bogging late in the year • keep the water cleaner from dung and urine • reduce water losses caused by cattle dragging water out of the dam. Dams that are fenced off require a pumping unit, tank and trough. The dam can have a turkey nest built in one corner during construction (if the soil is suitable), or a tank erected on a broad flat spot on the wall close to where a trough will be positioned.

The pumping unit needs to be suitable for the water requirement of the cattle drinking from it. It is best to consult your supplier of pumping equipment to obtain the solution appropriate to your need. Bores and Wells The major source of water in the pastoral areas of northern Australia is from underground aquifers accessed with the use of bores and wells. There are two major types of aquifers:

• Artesian water is when the water flows under pressure from underground to the surface with no need to be pumped. • Sub-artesian water is generally shallower than artesian water and requires pumping to lift the water to the surface.

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Figure 4.3 Map of Australian Artesian Basins

Unless your property lies over an artesian basin such as the Great Artesian Basin or the Canning Artesian Basin, you will probably need to pump water to tanks and troughs. There are a number of power units that drive water pumps including conventional windmill, diesel motors and solar power. The type of pump needed for the installation will also be affected by the power supply. Windmills require a conventional draw plunger or flush cap pump, whereas the solar power units can use submersible pumps. Diesel motors can use most types of pump unit.

Photo 4.1 Windmills

Source: McClelland Rural Services

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To select the best unit for your installation you need to identify the:

• pumping depth • volume of available water in litres/second • amount of water required based on the maximum number of cattle that will use the water • size of the storage.

Contact your local supplier for assistance in selecting and installing the best unit for your purpose.

Stock Water Information - Key Points

• Clean (desilt) dams when dry. • Fence off dams and waterholes if possible. • Sub-artesian aquifers will require pumping. • Use your local supplier to assist in selecting the best power and pump installation and water storage for your needs.

Further Information on Stock Waters Water and Rivers Commission WA – Water Notes

Building a Farm Dam Building a Farm Dam

Farm Dam Construction

Water Bores Minimum Requirements for Australian Water Bores

Northern Territory Drilling Water Bores in the NT

Queensland Managing Underground Water in Queensland

Western Australia Managing Water Bores in WA

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Fencing In the past, fences were usually erected for the main purpose of restricting the movement of livestock. As a result, little attention was paid to the effect of fences on the environment. In some cases, the environmental impacts of fences can be extreme including:

• increased erosion where fences run down a slope • increased grazing pressure on the most palatable pastures.

All new fences should be constructed in such a way to reduce environmental damage such as erosion caused by water runoff. This can be accomplished by good planning and, where possible, taking into account watercourses and land contours on slopes.

Significant watercourses should be fenced out, when possible. As the feed is normally sweeter on the levees of watercourse, these areas are normally preferred places for grazing and cattle camps. This can lead to an increase in environmental damage from overgrazing, subsequent erosion and an increase in the incidence of unwanted weeds.

By fencing out the watercourse, livestock can be restricted from the area allowing feed to be grazed lightly, and a build up of fuel to carry a fire for weed control.

In extensive areas there a number of fence construction options including:

• conventional fence – local timber posts on 6M panels with barb and/or plain wire as required • suspension fence - local timber strainers or pipe steel at 500M with steel pickets at 20/25M panels with droppers every 6M, plain or barb wire • electric fence – similar design to suspension; however using only plain wire thus reducing the cost of wire.

Virtual fencing may be the future of livestock fencing and is being developed and tested now by the CSIRO Livestock Industries section. The virtual fence uses a series of transmitters to transmit a signal to a collar around the animal’s neck. This gives off a sound as the animal nears the ‘fence’; if it crosses the ‘fence’ it will receive a small electric shock which ceases when the animal stops or moves past the fence. Once it stops moving, the sound and shock restart, thus encouraging the animal to move back into the ‘fenced’ area.

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Photo 4.2 Driving Pickets

Source: Northern Land Council Yards Cattle yards are one of the single most expensive infrastructure items on a pastoral property. If well constructed, the yards will be a part of the property and livestock handling for many years, so their positioning and design are of utmost importance. There are a number of factors that need to be taken into account when considering a new set of yards relating to position, design, materials and what to include. Position When choosing a position for the yards, you should consider:

• proximity to herds and paddocks (a yard should service a number of paddocks) • availability of a water supply • sufficient area to construct coolers and holding paddocks • ability to include a simple laneway • drainage (the yards need to be well drained) • access for trucks/road trains.

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Design When designing the yards, you should consider wind patterns, shadows, stock movements, capacity and procedures to be carried out, water and dust.

• Prevailing winds – cattle prefer to walk into the wind; however, to avoid dust problems, the wind should blow away from the main working area. • Shadows – avoid shadows or early or late sunlight directly in the face of cattle, particularly through gates, or races, during early morning or late afternoon loading. • Movements – how can you move stock efficiently through the yard? • Capacity – what is the maximum number of cattle that you plan to handle at any one time? For example, with breeders, this number reflects how many can be drafted, vaccinated and treated, where necessary, plus calves branded and returned to their mothers, in one day or less. • Activities – what activities or procedures will be carried out in the yards? • Water – how will you access water throughout the yards? • Dust – what measures can be taken to control dust? Materials Modern cattle yards are constructed mainly of steel and cable. This is a change from using timber, and was necessitated by the destruction of many yards in the north by fire and termites. It is necessary to ensure that materials are heavy enough to withstand the constant pressure of cattle being worked, regardless of how quietly the work is being carried out. Main Components of Cattle Yards Cattle yards include:

• receiving yards • drafting area with the ability to separate cattle into groups (a minimum of four groups) • a race to carry out bulk vaccinations and treatments • scales and a veterinary crush for more detailed procedures such as pregnancy testing, physical examination of large animals and other veterinary procedures that may be required • a calf race and marking cradle • loading/unloading ramp.

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Photo 4.3 Yard Building

Source: Indigenous Land Corporation Portable Yards In many situations the use of fixed cattle yards may not be appropriate. This may be because of:

• The cost of building a number of fixed yards • Mustering in areas on the property that are not normally mustered.

In these cases the construction of portable yards is the best option. Portable yards consist of welded pipe panels normally 2.4 metres to 3 metres in length that link together with a system of pins or pipe ties. The yards can be very basic, as in enough panels to hold the mustered cattle with some room to work them toward a race and loading ramp. They can also be quite well designed with enough panels and room to carry out all the procedures necessary for running a cattle herd on a pastoral property.

The panels may vary from a longer and lighter construction that would be used for the external fence and some internal fences to shorter, stronger panels in the forcing yards and races. You will also need gateways, as well as spreaders for the top and bottom of races and sliding gates.

The design of the yards and the size of the yards will depend on the number and class of cattle that you expect to be working. In some situations a very basic design for a small number of cattle is all that you may require. In this case you may only need a small number of panels and a loading ramp. The example below includes a squeeze crush which may not be necessary in most cases, as the cattle would most probably be transported back to a main set of yards. The yard measures approximately 21 metres by 15 metres and allows a basic draft and load.

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Figure 4.4 Example of a small portable yard

R A C E R A C E C R U S H

R A M P

In the event of the need to design a yard for a large number of cattle the main consideration will be the number of cattle to be yarded and the procedures that need to be completed. This yard may require a longer (six panel race) as well as a veterinary crush (for dehorning, speying and pregnancy testing). It may also need a calf race and cradle. Most property owners would have their preferred design that they may have had built specifically by the supplier. Most suppliers also have their own off the shelf designs. Property owners are encouraged to shop around various suppliers to get the best deal. Ensure that the supplier has the ability to incorporate your designs into whatever yard they intend to supply.

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Photo 4.4 Portable Panels as Main Yard

Source: “McClelland Rural Services”

Portable yards are also used in conjunction with self-mustering or trap yards to effectively and efficiently muster, draft and process cattle with less staff and considerable less cost.

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Trap Yards and Self Mustering On many properties in the pastoral areas of Australia today there is a move toward the self-mustering or trapping of cattle and other livestock. There a number of reasons for this including:

• Reduced operating costs – self mustering reduces fuel costs, helicopter costs, staff costs, wear and tear on vehicles • Reduced stress on livestock through no helicopter and vehicle involvement and less mis-mothering of calves • Improved mustering success (in paddocks with controlled waters it is possible to get 100% clean musters) • It may also reduce the risk of workplace injuries while mustering.

Photo 4.5 Cattle Trapped in Small Yard

Source: “McClelland Rural Services”

Although there is a capital cost in constructing secure yards around waters, the payback can be realised in quite a short period.

In areas where bores and dams are the main stock water delivery systems self-mustering can be very successful.

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Photo 4.6 Constructing a Trap Yard at Ullawarra Station, WA

Source: “WA Indigenous Land Services” Traps are constructed around things that attract cattle such as:

• Water • Supplements • Good quality feed (hay).

They normally consist of a secure fence around, for example, water, with the only access and exit through a one way gate. In the photo above the traps are being built into a cattle yard where cattle go for water. The cattle enter through the “in” gate, drink, and exit through the “out” gate. These yards may be connected to a holding paddock, which also has an “in” and “out” gate. The “out” gate is normally kept closed and the “in” gate left open in case cattle get into the holding paddock and cannot access the water.

At mustering times the “out” gate to the main paddock is closed and the “out” gate to the holding paddock opened. Cattle will come in for a drink and go out into the holding paddock. This can be done up to a week or more before the cattle are needed to be processed which ensures that all the cattle using that water are in the holding paddock. When they are to be processed the “out” gate to the holding paddock is also closed, thus the cattle yard themselves. A quick check of the holding paddock is all that is necessary to complete the muster.

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Photo 4.7 Constructing a Trap Paddock on Lamboo Station, WA

Source: “KIMSS”

Trap gates may also be set up on laneways connected to paddocks and yards, if the paddock water is available in the lane. Cattle can then be mustered using in the same way as the trap gates to the yards, except in this case they are trapped in the lane. The cattle trapped in the lane can then be taken to the yards using horses or bikes. This method gives the cattle the experience of being handled by people, horses and bikes.

If a number of paddocks are connected to the laneway system trapping is also an easy quick and efficient method of rotating the paddocks and also adjusting stocking rates.

Photo 4.8 Trap Gates in a Cooler Paddock

Source: “McClelland Rural Services”

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Fences and Yards – Key Points

• Choosing the position of fences and yards is important. • Make sure that the design suits the application. • Choose materials that will withstand the pressure of cattle and the environment. • Ask your local officer at the Indigenous Land Services, Indigenous Pastoral Program or other extension officer for advice.

Further Information on Fences and Yards Fences Gallagher Electric Fencing

Waratah Fencing

Virtual Fencing

Yards Automated Drafting & Mustering

Beef Central Article on Automated Mustering and Drafting

Temple Grandin Design

Infrastructure Design Best Practice Katherine Region

The DPI&F publication: Cattle Yards: Design, materials and construction (2006) can be purchased from the DAFFQ bookshop

Self Mustering Systems Western Australia

Waratah Fencing

Queensland

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Roads Station roads are usually graded tracks, often positioned along fence lines. These roads are necessary for access to watering points, lick stations, and yards. The standard of road required is determined by:

• the class of vehicle expected to use it (that is, road trains or light vehicles) • the level of use • whether or not year-round access is required. Location The location of the road is important to minimise the risk of erosion, bogging during the wet season, and the surface breaking down to bulldust or corrugations. Soil types will dictate the quality of the final surface of the road. In some cases, particularly along fences, it is difficult to choose the soil on which to construct the road. However, for normal traffic, this can be managed. Construction Most station roads are constructed and maintained with a grader. In most instances they are flat graded, care should be taken to avoid the construction of windrows on the side of the road. When a road is graded with a windrow on each side, a creek can form. Care should be taken to avoid constructing roads down slopes that also add to erosion. Where possible, keep to the higher parts of the terrain.

Main access roads to homesteads and yards are normally constructed with a crown in the middle to aid drainage. These should be incorporated with table drains, to shift water from the side of the road to allow roads to dry much quicker. Crowning in small watercourses and creeks should be avoided as they will washout each year.

In the case of fence lines, avoid grading right up against the fence, as this can create erosion that will damage the fence structure. Leaving a small gap on each side can also provide an extra break in the case of fire.

Proper station road design, construction and maintenance can improve access and safety, and reduce erosion and vehicle repair costs. Station roads and tracks should be included on property maps and are useful for Occupational Health and Safety (OH&S) induction of junior staff.

The use of low banks across roads and fence line tracks to catch and deflect fast moving water that may cause erosion is a common technique used today on most station tracks. The construction of these ‘whoa boys’, as they are called, can be seen on the links below. Consult your local extension officer for more information.

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Photo 4.9 Typical Station Road Building

Source: Northern Land Council

Station Roads and Tracks – Key Points

• The standard of station road required is determined by the class of vehicle expected to use it (that is road trains or light vehicles), the level of use and whether or not year-round access is needed. • Location of roads is important to minimise the risk of erosion, bogging during the wet season and the surface breaking down to bulldust or corrugations. • Proper station road design, construction and maintenance can improve access and safety and reduce erosion and vehicle repair costs.

Further Information on Roads DERM Qld – “Whoa Boy” construction for erosion control on station roads.

Road Construction – NT NRM

Road Construction – NTDPI&F Cattle and Land Management best practices in the Top End

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Livestock Identification

All livestock must be identified in accordance with the respective State/Territory Livestock Acts, and all stock owners are required to register their livestock brands and earmarks, and be issued with a Property Identification Code (PIC). Branding and Earmarking The regulations pertaining to livestock identification varies from state to state.

Northern Territory Photo 4.11 Cattle Brand In the NT, it is compulsory to brand cattle before they are moved off a property or are sold, unless they are less than eight months of age. Brands can be used on horses, buffalo and camels, but it is not compulsory. A brand is registered to a person or company for use on the nominated NT property only.

TheLivestock Act 2009 (NT) and Regulations stipulates a three- letter brand system, where one letter must be the letter ‘T’ and a distinctive (symbol) brand system.

• The applicant must be at least 18 years of age. • The applicant must specify the property on which the 3-letter brand will be used. • The applicant must specify the livestock to which the brand will be applied. Photo 4.12 Earmark Pliers • The applicant must be: »» the owner of the specified property or »» a person who, with the permission of the owner of the specified property, intends to brand the livestock on the property. Before registering a 3-letter brand on the basis of an application by a person who is not the owner of the property on which the brand will be used, the Registrar must be satisfied the owner of the property has given the applicant permission to brand on the property.

Queensland

In Qld, cattle of 100 kg or more live weight must have a registered brand before being sold. Branding and earmarking in Queensland are carried out in accordance with the Brands Act 1915 (Qld).

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Three-piece brands are the foundation for establishing legal ownership of horses and cattle in Queensland. Symbol brands may only be registered in conjunction with three-piece brands. Similarly, cattle earmarks are used as an aid to identification, but only in conjunction with the three-piece brand with which it is registered.

A horse and cattle three-piece brand is registered for use anywhere in Queensland, but initially for use on a property specified by the applicant. Its use elsewhere in the State depends upon the brand not conflicting with brands already in use in that locality. Western Australia In WA, cattle must be branded or earmarked before 18 months of age or before leaving the property of origin. To legally use a brand, earmark, or PIC in WA you need to apply to register a brand. Earmarks are allocated when the owner indicates they have animals that must be, or may be, identified with earmarks (that is, cattle, buffalo, sheep, goats and camels).

When applying for a new brand, you may nominate your preferred letter and number combination.

Brands and Earmarks – Key Points

Northern Territory • It is compulsory to brand cattle before they are moved off a property or are sold (unless they are less than 8 months of age). Queensland • Cattle of 100 kg or more live weight must bear a registered brand before being sold. Western Australia • Cattle must be branded or earmarked before 18 months of age or before leaving the property of origin.

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Further Information on Brands and Earmarks Northern Territory Brands in the NT

Branding positions for cattle (NT)

Application Form to Register a NT Brand Queensland Branding and earmarking requirements in Qld

Application Form to Register a Qld Brand Western Australia Branding Requirements in WA

Branding and Earmarking Regulations in WA

Application Form to Register a WA Brand

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National Livestock Identification System (NLIS) The National Livestock Identification System (NLIS) is Australia’s system for identification and traceability of livestock. It was introduced in 1999 to meet European Union requirements for cattle exports. Since then, it has expanded to enable cattle, sheep and goats to be traced from property of birth to slaughter for:

• biosecurity • meat safety • product integrity • market access. NLIS is endorsed by major producer, feedlot, agent, saleyard and processor bodies. In addition to this, it is underpinned by State/Territory legislation, which forms the regulatory framework for the system. NLIS Ltd operates the central NLIS Database on which the livestock movements must be recorded. State/Territory NLIS authorities provide information on:

• Property Identification Codes (PIC) • Ordering NLIS devices imprinted with a PIC • NLIS regulations for cattle, sheep and goats.

The technology uses a Radio Frequency Identification Device (RFID) that can be read by a hand held scanner. An NLIS approved device can be in the form of:

• an electronic ear tag • rumen bolus/visual ear tag combination.

These devices are used to identify and track livestock.

An approved NLIS device has two numbers Photo 4.13 RFID Scanner and Scale Reader associated with it:

• NLIS number (visual number) is printed on the electronic ear tag or on the management ear tag matching an NLIS rumen bolus. The NLIS ID indicates the property where the animal was identified, and whether that was the property of birth or not. It also identifies the manufacturer of the device, the year of manufacture, whether it is an electronic ear tag or Source: FutureBeef rumen bolus, and an individual animal identification number. • RFID number is also referred to as the electronic number and is the number scanned by a reader. These two numbers are unique for each device and are linked in the NLIS database. 32 back to top MODULE 4 property management

2013 Amendments to Livestock Requirements As of 1 January 2013, amendments to the Livestock Regulations relating to NLIS came into effect. The most significant change is that ‘ALL cattle regardless of destination will require an approved NLIS device to be attached to the right ear prior to movement off a property’. The exemption of moving cattle from their property of birth direct to export or abattoir will cease.

A further addition to the Livestock Regulations is that the Registrar can approve the movement of livestock without an NLIS device being attached. The Registrar will consider the following events eligible for permission to move without an approved device attached:

• natural disaster including events such as cyclone, flood, fire: »» after a natural disaster, which has resulted in livestock unintentionally having moved from their original property and are required to be moved back home »» due to a natural disaster, livestock are required to be moved to another property to avoid stock losses • return of stray cattle from neighbouring property • missing tags – after tagging feral cattle, if a small number are missed, a permit may be granted to move the untagged cattle with the tagged cattle. This would be only accepted if the receiving property is prepared to tag those animals on arrival. A post breeder tag of the destination property (not the property of origin) is required to be attached • special circumstances – requests in special circumstances will be reviewed on a case by case basis. Permission will not be granted for requests such as:

• no time to organise devices or tags • lack of equipment such as pliers or staff • poor infrastructure • lack of time allocated for the tagging of animals. Property Identification Code State/Territory NLIS authorities issue a unique Property Identification Code (PIC) to identify parcels of land used for agricultural purposes. The PIC is the first eight characters of the NLIS ID which is printed on the tags issued to producers. Every time an animal moves to a property with a different PIC, or to a feedlot, saleyard, abattoir or other location, the PIC it ‘moved from’ and ‘to’ are recorded on the database, so a ‘life history’ of movements for that animal is established.

NLIS is Australia’s system for the identification and tracking of livestock to manage food safety, product integrity and market access. Tracking is particularly important for the export market. Tracking also enables effective management of disease outbreak with the effect of reducing the economic impact of disease.

It is a permanent whole-of-life identification system that enables individual animals to be tracked from property of birth to slaughter. All cattle transfers between properties with different PICs, starting from when they leave their property of birth, must be recorded in the NLIS database.

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As a person who keeps cattle (or other livestock), you are required to:

• register your property as a place where cattle are kept • identify any cattle with an NLIS device prior to moving them from your PIC to a property with another PIC (if they are not already tagged with an NLIS tag). Persons receiving cattle directly from a property with another PIC, other than a saleyard, must also ensure that the NLIS database is updated with details of the movements within 48 hours of the cattle arriving at the property with the new PIC. This applies to places such as abattoirs, live export depots and feedlots.

Figure 4.5 How to Apply an NLIS Eartag

Female tag with Step 1. lump (microchip) The female NLIS ear tag has a lump on its printed face. To load, depress spring clip and insert female tag, holding the lump between thumb and forefinger. Position the tag so the lump faces out of the open end of the applicator. Failure to do so may result in damage to the electronic device.

Lump faces out from applicator Step 2. Slip male tag completely onto application pin.

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Step 3. Dip jaws of applicator holding tag into antiseptic or disinfectant solution. IMPORTANT The correct applicator must be used when applying NLIS ear tags.

Step 4. With the correct position located, apply the tag firmly, always with the male tag entering from the back Right (offside) ear (outside) of the ear.

Use white Breeder Tags for cattle you have bred.

Use orange Post-breeder Tags for cattle you have purchased. If cattle are already identified with an NLIS tag, do not attach a second NLiS tag.

The electronic Breeder/Post-breeder Tag must be applied to the RIGHT (offside) ear as per illustration.

Incorrect Incorrect Incorrect

Source: Department of Primary Industries, Victoria

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NLIS

• NLIS is Australia’s system for identification and traceability of livestock. • NLIS technology uses a Radio Frequency Identification Device (RFID). • The RFID can be read by a hand held scanner. • As of 1 January 2013, amendments to the Livestock Regulations relating to NLIS came into effect.

PIC

• State/Territory NLIS authorities issue a unique Property Identification Code (PIC) to identify parcels of land used for agricultural purposes. • NLIS/PICs provide a permanent whole-of-life identification system. • All cattle transfers between properties with different PICs must be recorded in the NLIS database.

Further Information on NLIS/PIC NLIS Glossary of Terms Northern Territory NLIS in the NT

PIC in the NT Queensland NLIS in Qld

PIC in Qld Western Australia NLIS in WA

Branding and Earmarking Regulations in WA

PIC in WA

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Herd Management Systems

Making use of the investment in the NLIS tag can provide producers with another tool to improve the management of their herd. It can provide an effective tool in allowing managers to make decisions, through linking livestock records to the NLIS individual device number.

Monitoring weight gain information gives managers the opportunity to tailor nutrition and management programs according to individual animal performance. Drench and vaccination records also allow managers to observe withholding periods and accurately complete vendor declarations for sale of stock.

An electronic system can capture information such as animal sex, liveweight, pedigree, health treatments and pregnancy results. Managers are able to use this information to monitor herd progress against fertility and growth targets.

Management tags can be used by managers to track individual and group animal performance (growth, carcase and reproductive) for various classes of cattle, and also to identify age groups. www.dpi.nsw.gov.au/__data/assets/pdf_file/0019/214426/NLIS-Cattle---using-electronic- identification-and-carcase-feedback-in-cattle-management.pdf

Many management systems now use only NLIS tags to track animal performance. Using a computer software program provides you with the ability to:

• collect data directly from NLIS readers and scales • input real time data in the yards • make real time decisions concerning weight gain and pregnancy status • import data from third parties such as carcase feedback and sale information • identify and draft particular animals to manage the herd more intensively • generate reports for particular information such as: »» whole herd stock numbers and classes »» individual average daily weight gains (ADG) »» weight gains by paddock »» pregnancy status of animals and herd • maintain NLIS database information. Stud enterprises have special requirements for stud and individual ID depending on the breed. For example, regulations for the identification of Brahman stud cattle are contained in the Brahman breeders’ regulations, found on the Australian Brahman Breeders’ Association website.

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Herd Management Systems – Key Points

An electronic recording system:

• allows the history of an animal to be available beside the race • provides data on each beast to assist real time decisions to be made in the yards • allows the generation of reports on a number of production parameters • maintains up to date records of herd classes and numbers.

Further Information on Herd Management Systems NSW DPI Fact Sheet on Management Systems

Brahman Breeders’ Regulations

Using NLIS as a Management Tool – FutureBeef

Livestock Production Assurance

The Livestock Production Assurance (LPA) program is the Australian livestock industry’s on-farm food safety program. It is covered in detail in Module 2 Markets and Marketing.

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MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 5grazing land management

Contents Managing Woodland Thickening 34 Introduction 3 Feral Animal Control 35 Grazing Systems 12 Managing Feral Animals 35 Responsibilities if Leasing Out Your Land 38 Continuous Grazing 12 Rotational Grazing 12 Sources of information used in this module 39 Wet Season Spelling 13 Land Condition Management 16 List of Tables The ABCD Land Condition Framework 16 Table 5.1 L ist of Common Invasive How easy is it to change land Weeds In condition back to a better condition? 20 Northern Australia 30 Controlling Cattle Distribution 22 List of Figures Placement of Waters 22 Figure 5.1 A dult Equivalent (AE) Using Fire to Attract Cattle onto Ratings for Different Ungrazed Areas 22 Classes of Animals 8 Placement of Lick Troughs 22 Figure 5.2 R olling Ball of Land Condition 20 Placement of Fences 22 List of Photos Fire Management 23 Cover Photo – Drover, Oodnadatta SA The Difference Between a Controlled Burn ©iStockphoto.com/EdStock and a Bushfire 24 Photo 5.1 O ne Adult Equivalent (AE) Using Fire to Improve Pasture Quality 24 – a 450 kg Steer 8 Using Fire to Even Out Grazing Photo 5.2 As sessing Pasture, Across a Paddock 24 Normanby Station, Using Fire to Prevent Wildfires Far North Queensland. 10 or Bushfires 24 Photo 5.3 Land Condition - Good Using Fire to Modify Condition Land (A), Pasture Composition 24 Ribbon Grass Pasture 18 Using Fire to Manage Photo 5.4 Land Condition - Woodland Thickening 25 Fair Condition Land (B), Using Fire to Control Exotic Weeds 25 Ribbon Grass Pasture 18 When to Burn? 25 Photo 5.5 Land Condition - Poor Condition Land (C), How Often to Burn? 26 Ribbon Grass Pasture 19 When To Restock your Paddock Photo 5.6 B urnt Spinifex Country, After Burning 26 West of Halls Creek, Weed Management 29 Kimberley (Dec 2012) 26 The Six Principles of Photo 5.7 B ellyache Bush, North of Weed Management 29 Halls Creek 31 Types of Erosion 32 Photo 5.8 Ki mberley Landscape, East Management to Prevent Erosion 32 of Halls Creek 39 Rehabilitation or Reclamation 33 back to start of manual 2 MODULE 5 grazing land management

Introduction

The condition of the land and native pasture resource directly affects the level of herd production and therefore long term profitability and sustainability of extensive beef properties in northern Australia. The purpose of good grazing management is to achieve desired production levels that can be maintained over decades without the condition of the pasture or the land deteriorating. It can allow indigenous pastoralists to use their traditional knowledge to participate in Caring for our Country in a practical way on their own properties. It also complements Working on Country Initiatives.

Poor grazing land management causes the following problems:

• Desirable palatable, productive and perennial (3P) pasture plants are lost and replaced by poor quality plants, including annuals and weeds. • Feed in the paddock is out of balance with feed demand from cattle. • Cattle do not perform as well as they could and do not meet production targets. • Pasture is grazed unevenly, with some areas of paddocks grazed out and other areas hardly touched. • Land condition worsens, and shows signs of erosion. • Woodland thickens and reduces land and pasture condition.

Module 5 details grazing land management strategies which are predominantly about controlling the numbers of cattle and where they are grazing. This module covers a range of components that together form the key principles of grazing land management. The module also includes general advice relevant to all of northern Australia. Managers are encouraged to seek local advice from suitability qualified extension officers in the management of specific land types. Information on specific land types is also available through the Grazing Land Management section of the Futurebeef website. Carrying Capacity and Stocking Rates Controlling how many cattle are grazing the land, and for how long, determines the property’s grazing pressure. This in turn affects pasture and land condition. Carrying capacity and stocking rates should be based on an assessment of pasture quantity and quality, land condition and other factors discussed in this section. Grazing Systems The grazing system chosen depends on what suits the operation, how well the property is developed (number of paddocks available) and the effect on pasture and cattle. Managers should make decisions on what the outcomes will be on pasture quality, diet quality, animal production, land condition, and evenness of grazing.

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Land Condition Management Maintaining and improving land condition for herd production is fundamental to ensuring that the pastoral business remains profitable. The condition of the land influences the effectiveness of rainfall and how the land responds to rain. This affects how much useful pasture or forage is produced for livestock production. This section includes land condition status descriptions and aspects of managing land condition. Controlling Cattle Distribution Controlling cattle distribution is important for evenness of grazing pressure. The aim is to optimise carrying capacity and production, while looking after land and pasture condition. Managing cattle distribution is usually achieved through water point distribution, placement of lick troughs, paddock fencing and planned burning. Fire Management Indigenous people have an extensive knowledge of fire management that not only has economic significance but also cultural and spiritual significance. From a grazing perspective, Indigenous pastoralists can use fire to improve management of grazing lands. However fire must be used with care. If misused, fire can cause destruction to life, property, pasture resources, bushland biodiversity and result in loss of production. Weed Management Weed invasion is one of the most serious environmental issues facing pastoralists in northern Australia. For a pastoralist, weeds present several problems including reduced pasture quantity and quality, reduced animal production and reduced income. Due to the cost, there can be a reluctance to control weeds early as the effects are not always obvious, but leaving weed control until later can be a costly mistake. Erosion Control Just about all of the grazing land in northern Australia is potentially subject to some form of erosion. It is important for land owners to minimise the effects of erosion in the first place, as reclamation and repair of eroded areas is a very costly exercise. Managing Woodland Thickening The key objective of managing woodland thickening is to improve available pasture. A strategic program of controlled fires is the most suitable control method. Feral Animal Management The result of the introduction of feral animals can be dramatic, changing the natural environment permanently. The objective for managing the majority of established feral animals is to reduce the damage caused by these pest species, in the most cost-effective manner.

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Responsibilities if Leasing Out Your Land When drawing up a sub-lease or grazing licence it is important to put in writing your requirements for the lessee to maintain the existing land and pasture condition. Some of these requirements are listed in this section.

The following list contains websites, publications and workshops relevant to grazing land management generally. The following section lists further tools and workshops that are relevant to each specific element of grazing land management, for example, stocking rate calculations.

Further Information on Grazing Land Management Future Beef Grazing Land Management Page

Caring for Country

Publications Publications about grazing land management, pastures and forage crops | FutureBeef

Workshops • Grazing Land Management email: [email protected] or contact your local extension officer. • Stocktake: balancing supply and demand • Indigenous Grazing For Profit email Course co-ordinator, David McLean or call 0408 232 659 • Rangeland Management Course (WA only).

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Carrying Capacity and Stocking Rates Controlling how many cattle are grazing the land, and for how long, determines your property’s grazing pressure. This in turn affects pasture and land condition. Maintaining and improving land and pasture condition for herd production is fundamental to ensuring that the pastoral business remains profitable. Long Term Carrying Capacity The long term carrying capacity is the number of animals that a paddock can be expected to support over 8 to 10 years or more. This depends on the following factors which determine pasture growth:

• current mix of land (country) types • condition of these land types (see Land Condition section) • climate (depends where your property is located) • evenness of grazing by cattle (see Controlling Cattle Distribution section) • location and distance between watering points • geography including natural barriers to grazing such as mountain ranges • grazing system employed, such as continuous grazing or rotational grazing.

It is important to have a carrying capacity calculated for individual paddocks and the whole property. This is critical to long term pasture and land condition, animal productivity and hence profitability. To organise a carrying capacity assessment contact your local state department extension officer.

Long term carrying capacities provide a guide for paddock stocking rates (short term carrying capacity). If the long term carrying capacity is exceeded for a particular reason, closer observation and management of the paddock is required in the following years.

In some drier years when there is less pasture there is a potential to overgraze paddocks if the long term capacity is maintained. Conversely in really good seasons there is potential to undergraze paddocks - a missed opportunity to improve production. So that paddocks are not overgrazed or undergrazed, it is also important to understand what short term capacity (or stocking rate) is and when this is applicable. Short Term Carrying Capacity or Stocking Rates The short term carrying capacity or stocking rate is the number of stock that can be grazed in an area for a short period of time. This can often differ from the long term carrying capacity depending on the wet season — how much rain fell and how long the wet season lasted. The short term carrying capacity depends on the following factors:

• pasture quantity available in the paddock • pasture quality • anticipated pasture growth • how much grass should be left at the end of the dry season for groundcover.

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Managers should have a good understanding of how many cattle a paddock will carry, depending on the season. This skill will be developed through knowledge of past stocking rates, close observation of the pasture and cattle, and how cattle graze different land types. However it takes time for a manager to learn this. This is a good reason why managers become more effective if they are in the management position longer — five years or more. Forage budgeting For managers wishing to learn a more advanced way of determining short term carrying capacity there is a tool called forage budgeting. Forage budgeting involves:

• determining the quantity of dry standing feed in the paddock by observation, using a pasture photo standard - for example 1500 kg/ha dry matter or 2000 kg/ha dry matter1 • determining the percentage of pasture that is unusable, inaccessible or unpalatable (that is pasture that is rank and cattle will not eat it) • determining how much feed cattle will eat in a day in kg dry matter (for example a dry beast weighing 450 kg will eat about 10 kg per day) • calculating how many cattle the usable quantity of feed will carry until the end of the year, or how long the feed will last with current stock numbers – using the preceding factors. Forage budgeting is best learnt at a Grazing Land Management workshop. If forage budgeting sounds too complicated then it is suggested you learn as much as you can from others who are good at assessing stocking rate from driving around the paddock and estimating how much feed is available and how many cattle the paddock can carry. However this depends also on the size and class of the animal, because they have different feed requirements. Carrying Capacity or Stocking Rate and Different Feed Requirements Different sizes and classes of cattle have different feed requirements. How much feed an animal needs (feed demand), depends on breed (breed size), size (weight in kg) and stage of lactation (wet or dry).

One way of comparing animals with different feed requirements is to compare them against one standard animal or Adult Equivalent (AE). An AE is a 450 kg dry beast. This size animal will normally eat about 10 kg of dry feed (dry matter) every day.

Long term and short term carrying capacities can be described for paddocks using AEs. For example if a paddock runs 500 AEs, then we know how many cattle the paddock can carry for different classes of cattle. This is shown below:

• 500 dry cows or steers that each weigh approximately 450 kg or • 1,000 weaners (approximately half an adult equivalent) or • 375 pregnant cows with calves (one and a third AE) or • 333 bulls (one and a half AE).

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Figure 5.1 Adult Equivalent (AE) Ratings for Different Classes of Animals.

Animal Type Rating Average Weight Dry Cow/Steer 1 Adult 450 kg ← Eats 10kg per head per day Weaner Adult 200 kg 5kg/head/day Bull or Camel 1 ½ Adult 650+ kg 15kg/head/day Pregnant Cow/ 1 ⅓ Adults Cow with Calf Horse 1 ¼ Adults 10 Kangaroos 1 Adult

Using this method helps managers to assess carrying capacities or stocking rates more accurately, because the different sizes and classes of cattle with different feed requirements are aken into account.

Photo 5.1 One Adult Equivalent (AE) – a 450 kg Steer

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Tools to help with stocking rate assessment There are a number of tools that can assist in these calculations and your local beef cattle extension officer will be able to help you with these. Some of these tools are:

Simple MLA Stocking Rate Calculator

Dry season pasture budget – a guide for stocking rates | FutureBeef

Pasture photo standards are available from the Futurebeef website or through a Grazing Land Management workshop. Pasture photo-standards. Land type information can also be used to assist with determining carrying capacities and stocking rates:

Land types of Queensland

Land types of Northern Territory

Land types of Western Australia

A land type is an area of grazing land that has characteristic patterns of soil, vegetation and landform that are easily recognised by landholders in a region. The land type information describes the characteristics, capabilities and limitations of their land in producing useful grasses and forage. In addition to grazing management recommendations, the information provided in the land type descriptions includes:

• landscape photograph • landform • woody vegetation • expected pasture composition • soil characteristics • limitations to use of the land • conservation features

Pasture composition describes the mix of preferred or desirable species, intermediate species, non ‑preferred or undesirable species, perennials and annuals, as described below:

• Preferred or desirable species are native and naturalised exotic or imported grass species that are perennial, palatable, and productive plants (3Ps). Preferred species usually decline under persistent heavy grazing. Some common examples include ribbon grass (Chrysopogon fallax), bundle-bundle/curly bluegrass (Dichanthium fecundum), curly Spinifex (Triodia bitextura), Mitchell grasses (Astrebla spp.), kangaroo grass (Themeda triandra) and Buffel grasses (Cenchrus spp.). Desirable grasses that are annual or semi-annual include red Flinders grass (Iseilema vaginiflorum) and Queensland bluegrass (Dichanthium sericeum). These annual plants will decrease under persistent heavy grazing, but their presence in the pasture is also affected by seasonal conditions.

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• Intermediate species are native and naturalised exotic grasses that are generally less palatable than preferred species yet are considered to provide better yield and are more desirable than species listed as non-preferred. Intermediate species are generally not as affected by heavy and prolonged grazing, with the proportion of these plants in the pasture changing little, or increasing (initially), under heavy grazing. Some common perennial examples include wire grass/northern Wanderrie grass (Eriachne obtusa) and rice grass (Xerochloa laniflora). Native millet (Panicum decompositum) is an intermediate on heavy soils, but a desirable on red/light soils. • Non-preferred or undesirable species are native and naturalised exotic grasses that are mostly perennials but are the least palatable and/or low yielding pasture species. The proportion of non-preferred species usually increases under heavy persistent heavy grazing. Annual and perennial three awn grasses (Aristida spp.) are undesirable, as is grader grass (Themeda quadrivalvis). • Perennial is a plant that normally lives for more than two years or growing seasons and fruits more than once during its life. • Annual is a plant that normally completes its life cycle within one year or season.

Photo 5.2 Assessing Pasture, Normanby Station, Far North Queensland.

Source: QDAFF

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Management Checklist for Carrying Capacity and Stocking Rate

• Have your property’s carrying capacity professionally assessed. • Manage stocking rates according to seasonal conditions. • For different classes and sizes of cattle, use adult equivalents (AEs) to assist with calculating paddock stocking rates. • Forage budgeting will help you determine how much feed is available in paddock and how long it will last (depending on stock numbers).

Further Information on Stocking Rate Assessment Link cattle numbers to grass supply | FutureBeef

Stocking rates, productivity and profitability | FutureBeef

Savanna Explorer Livestock Stocking Further Information on Carrying Capacity NT Floodplain Carrying Capacity

Pigeon Hole Handbook.pdf

Impact of Climate Change on Carrying Capacity

Economics of Beef in the Central Highlands

NT Grazing Land Management Program

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Grazing Systems

Pastoralists on cattle operations across northern Australia use different grazing systems. The most common one is continuous grazing. On smaller properties, for example in the Darwin region, rotational grazing is most common. On larger properties that are well developed, continuous grazing may be used for breeder and steer paddocks, but rotational grazing may be used for weaner paddocks.

The grazing system chosen depends on what suits the operation, how well the property is developed (number of paddocks available) and the effect on pasture and cattle. Managers need to make decisions on what the outcomes will be on pasture quality, diet quality, animal production, land condition, and evenness of grazing.

Recent research funded by Meat and Livestock Australia (MLA) demonstrated that the intensity of the grazing system had no consistent effect on soil surface condition, pastures or carrying capacity when compared to less intensive systems on the same property. This confirmed other studies that have consistently shown stocking rate management to be the major driver of pasture and animal productivity rather than the grazing system itself. However the studies also show that the grazing system does affect diet quality, with more intensive systems having lower diet quality. Continuous Grazing A continuous grazing system involves running a similar number of cattle continuously in a paddock from one year to the next.

Benefits of continuous grazing • There is a low level of management required. • Cattle are not moved from paddock to paddock, and there is no associated expense. • Cattle get to know their paddock and where all the waters are. Disadvantages of continuous grazing • Some areas can be become overgrazed as cattle will continually prefer to graze these ‘sweet’ patches of grass, that is, grazing is uneven. • If the stocking rates are not adjusted, there is potential for overgrazing in some years and undergrazing in other years. Stocking rates in continuously grazed paddocks should be assessed each year at the end of the wet season and adjusted if necessary. Otherwise the stocking rate should be based on a conservative stocking rate based on how much pasture is grown in seven years out of ten. Rotational Grazing Under rotational grazing, cattle are moved from paddock to paddock to allow the pasture to recuperate during critical growing phases. This system can be complex or as simple as involving only three paddocks. On more extensive properties, rotational grazing of weaner paddocks may be the only example of rotational grazing.

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Benefits of rotational grazing • Pastures can be recuperated during growing phases, for example perennial grasses may be allowed to replenish root reserves. • Preferential selection of some species can be prevented which means these species may not be grazed out. • If implemented correctly, rotational grazing may assist with control of worm burdens in weaners.

Disadvantages of rotational grazing • On larger properties it is an extra cost to move stock if the paddocks are large. However with smaller paddocks such as weaner paddocks, this may be less of an issue. • If cattle are kept in a paddock for too long and overgraze it, this can affect land condition as well as animal productivity. The last paddock in the rotation can potentially suffer the most. • When the country dries off, the plants will stop growing and may eventually become dormant, so rotational grazing does less to help the pasture at this time of the year. • More management is required in terms of monitoring the pasture and cattle, and making sure cattle are moved in a timely manner. Wet Season Spelling Wet season spelling of paddocks allows the pasture to produce the maximum amount of leaf and stem matter. Over time, this matter decays and falls to the ground as litter, providing a carpet of ground cover which allows the soil to soak in rainfall. This assists the plant roots to develop a healthy root ball which in turn produces a larger and more nutritious plant. In the long term, the health of the soil condition as well as the pasture improves significantly. This strategy helps improve land condition and may be necessary when land condition ‘B’ or ‘C’ requires special management to revert it back to ‘A’ land condition (see next section Land Condition Management).

The best time to wet season spell is early in the wet season, say the first three months. How long to spell depends on the length and effectiveness of the wet season, the practicalities of moving cattle back into the paddock (although gates can be opened to adjoining paddocks) and the land condition (lower condition land needs longer). Paddocks that are wet season spelled every four years should be able to carry slightly more cattle than otherwise; however if spelling is carried out to improve the land condition carrying capacity should be maintained. Some paddocks may require wet season spelling every year.

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Benefits of wet season spelling • Pastures can be recuperated and root reserves replenished. • Overgrazing of preferred grasses can be prevented and grasses can set seed. • Wet season spelling is easier to implement than rotational grazing.

Disadvantages of wet season spelling • Cattle have to be moved out of the paddock they are used to. • There is potential to overstock the other paddocks unless numbers are low. • A higher level of management is required as paddocks need monitoring and records kept of when paddocks were wet season spelled.

Despite the disadvantages of wet season spelling, it is often the best option to help maintain pasture and land condition.

Case Study Example: Rotational Grazing on Lamboo Station

The Lamboo cattle are run on the un-leased northern end of the property. Since 2006 this area has undergone a development phase during which new waters, fences and yards were constructed. With the aid of the Department of Agriculture and Food WA, a system of paddock trap gates and laneways has been installed to significantly reduce mustering costs. This has also allowed grazing to be managed better and limited rotational grazing to be introduced using the system of trap gates to move cattle, rather than mustering.

Management Checklist for Grazing Systems

• If continuous grazing, stocking rates should be re-assessed at the end of each wet season. • Rotational grazing may be useful for weaner paddocks, and prevent preferential grazing of some species. • Wet season spelling may be necessary for paddocks that are heavily stocked at times throughout the dry season. • Wet season spelling may be necessary for improving land and pasture condition (see next section).

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Further Information on Stocking Rate Assessment Multimedia Grazing systems - fact and fiction - YouTube

Webinar on Wet Season Spelling You Tube

Articles Wet Season Spelling – Barkly Newsletter

Phases of buffel growth and wet season spelling

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Land Condition Management

Understanding and evaluating land condition is an important part of grazing land management. This is because the condition of the land influences the effectiveness of rainfall and how the land responds to rain. This affects how much useful pasture or forage is produced for livestock production, which in turn influences profit.

Land condition is described by three main indicators:

• Soil condition is the capacity of soil to: »» absorb and store rainfall »» store and cycle nutrients »» provide habitat for seed germination and plant growth »» resist erosion. • Pasture condition is the capacity of the pasture to: »» capture solar energy from the sun and convert it to palatable green leaf »» use rainfall efficiently »» conserve soil condition »» recycle nutrients. • Woodland condition is the capacity of the woodland to: »» grow pasture »» cycle nutrients »» regulate ground water. The ABCD Land Condition Framework The ABCD land condition framework allows managers to classify land to assist in making grazing land management decisions.

‘A’ Condition (good condition) ‘A’ Condition land has all of the following features:

• good coverage of perennial grasses dominated by 3P2 grasses for that land type; less than 30% bare ground • no significant weed infestation • good soil condition, no erosion, good surface condition • no sign of woodland thickening.

2 3P – perennial, palatable and productive. 16 back to top MODULE 5 grazing land management

‘B’ Condition (fair condition) ‘B’ Condition land has at least one or more of the following features, otherwise similar to ‘A’ condition land:

• some decline of 3P grasses with increases in other less desirable grass species and/or 30% to 50% bare ground • some decline in soil condition with some signs of previous erosion and/or susceptibility to erosion • some signs of woodland thickening or increased density of woodland plants.

‘C’ Condition ‘C’ Condition land has one or more of the following features:

• general decline in 3P grasses, large proportions of less desirable grasses and weeds and/or bare ground greater than 60% • obvious signs of past erosion and/or susceptibility to erosion is high • general thickening in density of woodland plants.

‘D’ Condition ‘D’ Condition land has one or more of the following features:

• general lack of any perennial grasses or forbs • severe erosion or scalding, resulting in a hostile environment for plant establishment or growth • thickets of woody plants or weeds over much of the area.

The photos on the following pages show Ribbon grass pasture in land condition ‘A’ (good), ‘B’ (Fair) and ‘C’ (Poor). Cattle preferentially graze Ribbon grass, so heavy continuous grazing will lead to a gradual decline in land condition.

In good land condition, Ribbon grass is dominant or co-dominant. All plants are vigorous and the spacing between is even. As land condition declines, size and vigour of the plant declines and other species start to dominate. Small bare patches start to appear and less desirable species such as Three Awn Spear Grass begin to appear. In poor condition (C) the Ribbon grass becomes small and sparse.

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Photo 5.3 Land Condition - Good Condition Land (A), Ribbon Grass Pasture

Photo 5.4 Land Condition - Fair Condition Land (B), Ribbon Grass Pasture

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Photo 5.5 Land Condition - Poor Condition Land (C), Ribbon Grass Pasture

Source of photos: Katherine Ryan, Department of Agriculture and Food, Kununurra, Western Australia

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How easy is it to change land condition back to a better condition? As the land condition deteriorates, so does the carrying capacity. For example ‘D’ condition land may have a reduced carrying capacity of up to 75%.

• Land condition ‘A’ is relatively stable - good management will help maintain it. • Land in condition ‘B’ can be managed back into condition ‘A’ with reasonable changes to grazing, spelling and, possibly, burning programs. However land condition ‘B’ is susceptible to a quick decline to ‘C’. Reversing land from condition ‘B’ back to condition ‘A’ can be relatively quick with a change in management, for example reducing stocking rates and a wet season spell. • Land in condition ‘C’ needs special treatment often involving long term spelling such as wet season spelling with strategic burning over a number of years to return it to condition ‘B’. Reversing land from condition ‘C’ back to condition ‘B’ will require a major change in management and will take time. Long term destocking may be required. Land condition ‘C’ its very susceptible to falling rapidly to land condition ‘D’. • Land condition ‘D’ requires considerable time and money which may include earthworks, reseeding and even fertilisation. This may still be unsuccessful if soil condition is irreparable. The rolling ball of land condition The following diagram shows a rolling ball of land condition and the steepness of the incline.

Figure 5.2 Rolling Ball of Land Condition

A B

C ?

The steeper the incline the harder it is to get the ball back up the slope. This diagram illustrates the susceptibility of land condition to deteriorate, and how much effort is required to revert the land condition to the previous state. When land is in ‘D’ condition it is almost impossible to get it back to ‘C’ condition without spending a lot of money. Even then, returning it to ‘C’ may not be possible.

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Management Checklist for Land Condition

• Land condition can be assessed and managed using the ABCD land condition framework (or in WA – Good, Fair, Poor). • Country should be managed to maintain land in condition ‘A’, or to be reverted to condition ‘A’ using stocking rate adjustment, wet season spelling, and fire and weed control. • Monitor land condition in paddocks to remain ahead of land condition deteriorating. • Take action to revert land condition back to its previous state.

For Further Information on Land Condition Status Futurebeef website articles

Land condition | FutureBeef

Rolling ball model – a slippery slope to poor productivity | FutureBeef

Pasture Condition Guide Ord River Catchment

Northern Gulf Resource Management Group

Land and Water Resources Report – Soil Condition

NT Govt Grazing Land Management Program

FutureBeef Resources, publications on Grazing Land Management Pastures

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Controlling Cattle Distribution

Controlling cattle distribution is important for evenness of grazing pressure in a paddock. The aim is to optimise carrying capacity and production, while looking after land and pasture condition. Evenness of grazing pressure can be managed through: • placement of waters • using fire to attract cattle onto ungrazed areas • placement of supplement lick troughs • positioning of fences. Placement of Waters In larger paddocks with few watering points, grazing pressure around the waters will be quite high. You can see this clearly when you are up the air in a plane or helicopter. As you move away from the water points the grazing pressure is less, because cattle have much further to walk to feed out. When there are large distances from water, there may be very little or no grazing. The increased grazing pressure closer to water results in uneven grazing, particularly if waters are too far apart. Research in northern Australia has shown that to promote evenness of grazing, distance between water points should not exceed four to five kilometres (km). Approximately 90% of grazing occurs within three km of water.

The area within walking distance from water is a factor when calculating carrying capacity. Some cattle may not be physically able to access water that is some distance away - cattle that walk longer distances to water have to expend more energy. This is particularly tough for heavily pregnant cows. Cattle that have to walk nine km to water expend 33% more energy, and this affects their production levels. This is another reason for closer location of water points. Using Fire to Attract Cattle onto Ungrazed Areas If areas are ungrazed by cattle because the pasture is old and rank, burning these areas may attract cattle onto them. Cattle will preferentially graze green feed on recently burnt country. This can improve evenness of grazing in paddock, which in turn improves carrying capacity and livestock production. Burning also reduces patch grazing because cattle graze the new shoots more evenly. It can also aid mustering. Placement of Lick Troughs Cattle that are trained to eat supplement or are familiar with dry licks may seek out lick troughs. Placing lick troughs close to waters only increases the grazing pressure in these areas. Placing them further away, perhaps on a cattle pad or near a road leading to water, helps even out grazing pressure. Placement of Fences Cattle like returning to their old watering points and cattle camps, and sometimes have difficulty moving to new watering points or new areas. Some managers believe the only way to induce cattle to use new watering points is through fencing. However there is a cost associated with this approach. Factors such as land type distribution, grazing area, roads, ease of mustering and accessibility should be considered in fencing decisions.

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Fire Management

For thousands of years, a combination of change to a drier climate and Aboriginal land management has resulted in fire shaping Australian landscapes. Indigenous communities in northern Australia continue to play an import role in fire management. Indigenous people have an extensive knowledge of fire management that has economic, cultural and spiritual significance. It is acknowledged that the information contained in the literature cannot match the knowledge that exists with Indigenous elders, whose knowledge of fire needs to captured and documented for each pastoral property.

From a grazing perspective Indigenous pastoralists can use fire to:

• Improve the composition and quality of pasture species and forage quality in order to improve livestock production, through removal of old rank growth. • Even out grazing across a paddock, through attracting cattle onto areas that have been burnt and away from overgrazed areas. • Lower the incidence of wildfire through use of ‘cool’ fires to reduce ‘fuel build-up’ and break up the country (see also Carbon Farming in Diversification and Income Earning Opportunities Module 9). • Modify pasture composition by burning before the targeted plants set seed. • Manage woodland thickening by targeting young trees and shrubs. • Control exotic weeds that are susceptible to fire.

Grazing can also affect the amount and distribution of fuel for fires, potentially reducing the incidence, intensity and extent of wildfire or bush fires.

However fire must be used with care. There are situations where its use is not appropriate. There can be risks associated as shown by these examples:

• Failure of significant follow up rainfall combined with heavy grazing pressure may result in serious damage to pastures. • Wet season burning of steep slopes promotes erosion and loss of topsoil. • Black soil downs that are burnt too early and ‘cooked’ may take a very long time to respond and repair. • Burning too frequently can reduce ground cover which can lead to erosion, a reduction in desirable pasture species and an increase in undesirable pasture species.

If misused, fire can also cause destruction to life, property, pasture resources and bushland and cause loss of production.

How pasture responds to fire depends on:

• pasture condition including the proportion of perennial and annual species • when and how often it is burnt • follow-up rain • grazing management after fire.

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The Difference Between a Controlled Burn and a Bushfire A controlled burn is a fire that is planned for a specific part of a paddock, and for a specific reason, such as pasture rejuvenation or woody weed control. The person in charge of the fire should take all necessary precautions and contact the local fire authority. A controlled burn can become a bushfire if adequate safeguards are not taken.

A bushfire or wildfire may occur from natural causes such as lightning or from humans whose acts may be accidental, deliberate, or negligent; for example, not putting out a camp fire properly or throwing a cigarette butt out of a window. A bushfire can cause loss of life and destruction of property and valuable pasture. Using Fire to Improve Pasture Quality When grass is not grazed, the old leaves become hard and indigestible and in some areas can become black with mould. In this situation, the pasture becomes unattractive to grazing livestock as well as native herbivores (plant eaters). In addition, if there is a bulk of old dead leaves on the ground, it can sometimes prevent new grass seedlings from establishing. Burning off the old leaf matter can stimulate new growth and new young plants, improving the quality of the diet. Protein levels in the fresh green new growth are higher, the grass is more digestible, and this helps improve livestock production. Using Fire to Even Out Grazing Across a Paddock Cattle will preferentially graze green feed on recently burnt country. Burning old rank pastures encourages cattle to graze these areas. This can improve pasture quality throughout the whole paddock, and promote evenness of grazing which in turn improves livestock production.

The area to be burned should be determined largely by the proportion of ungrazed pasture in the paddock. Ungrazed areas can be burnt on a rotational basis, for example burning 20 to 50% of a paddock each year. The fire should be lit at the beginning of the wet season, while there is enough dry feed to carry a fire and the chances of follow up rain are high. Using Fire to Prevent Wildfires or Bushfires Burning is strategically done to produce patches of burnt country. These act as future fire breaks, and reduce large fuel loads which can assist in the prevention of large bushfires getting out of control and doing a lot of damage. Usually this is done by burning in the early dry/late wet season to create cool patchy fires. Using Fire to Modify Pasture Composition Local advice should be sourced before burning to modify the composition of the pasture. There will be different examples for different regions and different land types. Local knowledge is needed to achieve the best result in each case. Some examples include: • In high rainfall regions frequent burning during the dry season can result in grasslands being dominated by a tall annual Sorghum. Burning this in the wet season, before it drops seed, can help reduce stands and allow more desirable perennial grasses to increase.

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• Burning stable perennial Ribbon grass on clay soils too frequently will increase the proportion of annuals such as Flinders grass. • Burning spinifex country too frequently can result in loss of grass as some species take two to three years to set seed. This can also affect native animals and birds that rely on spinifex for shelter and food. Using Fire to Manage Woodland Thickening Since European settlement, tree and shrub increases leading to woodland thickening has occurred and been scientifically recorded right across northern Australia. Contributing to this has been reduced incidence and intensity of fire, fire exclusions and lower fuel loads in some grazed areas. Increases have been seen in Eucalypts and Acacia, as well as undergrowth such as currant bush and conkerberry. Melaleuca species are now invading grassland swamps in north Queensland.

From a conservation point of view, increases to woody vegetation mean changes to habitat for wildlife. From a pastoralist’s point of view, increasing woody vegetation means decreased forage supply and increased mustering costs. Fire is the most effective tool to manipulate and manage the amount of woody vegetation; however it is necessary to understand how different trees and shrubs respond to fire on different land (country) types. For this, it is best to seek local expert advice from Indigenous elders and/or extension officers. Using Fire to Control Exotic Weeds Exotic weeds threaten pastoralism, conservation and tourism. It is relatively inexpensive to treat large stands of weeds with fire. Infestations of rubber vine weed and lantana are vulnerable to fire, and have been successfully controlled by fire in parts of Queensland. Prickly acacia, parkinsonia, bellyache bush and rubber bush (Calotropis) have an intermediate susceptibility to fire. Other control methods may need to be used in conjunction with fire. To prevent the regeneration of woody weed species, burning just before the weeds set seed may be effective for some species. Other species are advantaged by fire so care must be taken. When to Burn? Burning perennial pasture species during the very late dry season when they have seeded and are dormant has no detrimental effect on them. However burning these species in the early wet season when they are actively growing from stored reserves may weaken them. This is made worse if they are then subjected to heavy grazing. By burning for pasture improvement and to even out grazing just after the first storm late in the year, the risk of erosion is also reduced and soil moisture is available for new grass growth.

For woodland thickening or to control exotic weeds, a moderate to high fire intensity is needed, with a high fuel load. For more intense fires, burning is best carried out when there is less moisture in the grass — near the end of the dry season. The ideal conditions are when wind speed and humidity remain low. The combination of a large dry body of grass and dry hot conditions results in fires burning at higher intensities. It is therefore necessary to have fire breaks in place, either graded or through patch burning. Burning to modify pasture composition may need to be undertaken in the wet season in some cases such as annual sorghum, before the plant sets seed.

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How Often to Burn? Burning country too often can lead to an increase in less desirable annual grasses, overgrazing, reduced soil cover and loss of biodiversity. How often a paddock should be burnt depends on the reasons for burning. For pasture improvement/rejuvenation, how often to burn will depend on the accumulation of dry leaf and fuel load. This depends on:

• pasture type • seasonal rainfall • grazing pressure. For example, tall grass pastures in higher rainfall areas such as the Katherine region should be burned every three to five years. On the other hand, productive pastures such as Mitchell grass in drier areas may only need burning every five to 15 years. Burning these pastures too often can lead to significant damage. If a run of ‘good seasons’ has produced a large amount of rank growth, and stocking rates have been very low, a fire may be needed. On the other hand, fires may be required less frequently during dry years or not at all if in drought. When To Restock your Paddock After Burning It is essential to reduce stocking rates after burning. This allows the pasture species to regenerate quicker and may also reduce soil erosion. High or normal stocking rates soon after burning can result in slower recovery of the pastures and some damage to desirable pasture species.

Photo 5.6 Burnt Spinifex Country, West of Halls Creek, Kimberley (Dec 2012)

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Case Study Example: Fire Management Regimes on Warrigundu Station

Fire management regimes on Warrigundu station, Northern Territory include:

• early dry season burns (cool fires which result in patch burning) • grading of fire breaks and fence lines.

These strategies are designed to reduce the effect of wildfire in the dry season.

Management Checklist for Fire

• A planned controlled fire can be very effective for pasture improvement, evenness of grazing, woody weed control, management of woodland thickening and reducing the intensity of wildfires. • Use local information sources such as Indigenous elders and extension officers to assist in fire management. • Burning just after the first storms will do less damage to pastures if burning for pasture improvement. • Some land types require less burning than others as it takes much longer for dry, old, rank grass to build up, plus they are more fragile. • Burning country too often can lead to an increase in less desirable annual grasses, overgrazing, reduced soil cover and biodiversity loss.

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Further Information on Fire Regimes Fire information and maps for northern Australia (NAFI)

Savanna Explorer Types of Fire

Fire Management for Kimberley Rangelands

Tropical Savannas CRC Wet Season Burning

Fire management guidelines in the rangelands - Western Australia | FutureBeef

Managing the risks of using fire in grazing country

Use of fire in grazed woodlands – Queensland | FutureBeef

Use of fire in grazing country – Queensland | FutureBeef

Workshops to attend Fire Management Information days (FutureBeef )

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Weed Management

Most of the weeds that cause problems in Australia have been imported, although native plants can become weeds if they proliferate away from their natural habitat. Imported plants may not be weeds in their country of origin, but when introduced into Australia they are often free of the diseases and insects that would have controlled them. These weeds can then out-compete native plants for essential resources including space, sun light, water and nutrients.

Weed invasion, especially by woody weeds, is one of the most serious environmental issues facing pastoralists in northern Australia. For a pastoralist, weeds present several problems:

• Weeds cause poor land condition by reducing the amount of useful vegetation and pasture.

• Weeds are a symptom of poor land condition as they fill in the gaps in the pasture caused by overgrazing.

• Grazing pressure is increased on desirable pastures in weed-infested areas (especially if stocking rates aren’t reduced) leading to overgrazing and a continuing decline in land condition.

• Weeds compete with desirable 3P pasture species and reduce rainfall use efficiency.

• Heavy weed infestations can reduce access to areas and increase mustering costs.

• Some weeds such as bellyache bush and lantana are toxic to animals.

• Weeds lead to reduced biodiversity of plant and animal life.

The end result of heavy weed infestations is reduced pasture quantity and quality, reduced animal production and reduced income. Due to the cost, there can be a reluctance to control weeds early as the effects are not always obvious; however leaving weed control until later can be a costly mistake. Preventing weed problems early, before infestations increase much, is more cost-effective.

Integrated weed control methods use a combination of physical, chemical, fire and biological methods. For example, weeds may be sprayed with chemicals to cause leaf drop, and then followed up with a burn. Seek local advice on successful strategies. The Six Principles of Weed Management 1. Awareness. Be aware of existing and potential weed problems. Key staff members should know how to identify high priority weeds, that is know what they look like. 2. Detection. As you are driving or riding around your property continually be on the ‘look out’ for new weed infestations, before they become too large and difficult to contain. Request that staff report the location of weed infestations to the manager. 3. Planning. Prioritise where you need to place most effort and draw up a plan. This must be a long term plan. Don’t be afraid to ask for departmental assistance to find out the best and most cost effective methods of control. 4. Prevention. Prevent new weeds spreading on your property. Clean vehicles and equipment if you have been working in a weed-infested area. Purchase only clean weed-free hay and feed hay only in designated areas. Quarantine purchased animals in a yard for five days prior to dispersing them 29 back to top MODULE 5 grazing land management

on the property. 5. Intervene. Controlling weeds now, rather than later, will prevent spread beyond your control. A few dollars spent now could save a much larger cost in the future. 6. Control and monitor. Monitoring is a critical component in weed management. Gauge how well you are controlling weeds and re-plan your efforts in the future.

Table 5.1 List of Common Invasive Weeds In Northern Australia

Common Name Scientific Name Common Name Scientific Name

Bellyache bush Jatropha gossypifolia Mission grass Pennisetum polystachion Heliotro- Blue heliotrope Mother of millions Bryophyllum spp. pium amplexicaule Calotrpe (rubber bush) Calotropis procera Noongoora burr Zanthium pungens Caster oil plant Ricinus communis Parkinsonia Parkinsonia aculeate Chinee apple Zizphus mauritiana Parthenium Parthenium aculeate Common thornapple Datura stramonium Praxelis Praxelis clematidea Acacia Devils claw Martynia annua Prickly acacia nilotica subsp. indica Giant rats tail grass Sporobolus pyramidalis Prickly pear Opuntia stricta Grader grass Themeda quadrivalvis Rubber vine Cryptostegia grandiflora Mesquite Prosopis velutina Rats tail grass Sporobulus spp Mimosa Mimosa pigra Siam weed Chromolaena odorata Mimosa bush Acacia farnesiana

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Photo 5.7 Bellyache Bush, North of Halls Creek

Management checklist for Weeds

• Learn how to identify weeds of importance. • Keep on the ‘look out’ for weed infestations. • Prevention is the key. • Develop a plan for weed control and management. • Early control will be more cost effective in the long run.

For Further Information on Weed Control Weeds of Western Australia

Western Australian eWeed Newsletter

Land Protection Act 2003 (Qld)

Queensland Weed Control Methods

Weeds Management Act 2001 (NT)

Weeds in the NT Savanna Explorer Weeds Sheet Workshops Weed Identification and Management (custom made workshop FutureBeef ). 31 back to top MODULE 5 grazing land management

Erosion Control Just about all of the grazing land in northern Australia is potentially subject to some form of erosion. It is important for land owners to minimise the effects of erosion in the first place, as reclamation and repair of eroded areas is a very costly exercise. Types of Erosion Erosion is most commonly caused by water, but can also be caused by wind in the more arid areas.

Gully erosion occurs where water runoff begins to concentrate in areas in drainage lines or where there is less surface cover. It may occur as an isolated event or over large areas, especially where there are soils with highly erodible subsoils.

Stream bank erosion is a common problem in most northern river systems. Cattle tend to preferentially graze river frontage country and these areas can become bare and subject to erosion. By removing sediment, nutrients and organic matter, runoff can have an adverse effect on water quality as well.

Sheet erosion is the relatively uniform loss of soil over large areas caused by the action of water or wind. This often occurs in more arid areas, although it can happen anywhere during high rainfall events, and results in a significant loss of productive soil. Management to Prevent Erosion On pastoral properties, the key to erosion control is to maintain adequate vegetation and soil surface cover. This helps maintain the soil in a condition that absorbs rainfall, rather than repelling rainfall and causing runoff. Any runoff that does occur will be stopped or slowed down by the cover and less likely to become concentrated and cause erosion.

At the end of the dry season there should still be about 30 to 40% cover and about 800 to 1500 kg/ha of dry matter (dry standing feed), depending on the environment - arid through to tropical savannah. To achieve this, it is necessary to monitor stocking rates and match stock numbers to the amount of available feed. Pasture spelling may also be necessary. Well managed pastures with good cover should ensure runoff spreads rather than concentrating and causing erosion.

Property development decisions can also influence the amount of erosion. Grazing pressure is most concentrated around watering points. If at all possible, these watering points should not be placed in areas that are more susceptible to erosion.

Careful planning is also needed with paddock development. Roads, tracks, cattle pads and fences can also cause concentration of runoff leading to erosion, and these can be located and constructed in such a way as to reduce runoff and erosion. ‘Whoa boys’ can be constructed on roads to slow down runoff in high risk areas.

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Rehabilitation or Reclamation Rehabilitation or reclamation techniques are often not economical, especially on extensive properties with relatively low stocking rates. Therefore, prevention is best.

One option for rehabilitation of seriously degraded areas is to exclude stock by fencing the area off. However this is also costly. Shallow water ponding and use of implements such as the ‘crocodile seeder’ have been used successfully but there is a cost associated which needs to be carefully considered.

Recommendations for Erosion Control

• Prevention is the key — maintain adequate pasture cover. • Adjust stocking rates to ensure adequate cover at the end of the dry season. • Be conscious of erosion risks when undertaking property development. • Reclamation strategies should be carefully analysed for economic benefit (if any).

Further Information on Erosion Control Erosion Control in Grazing Land – DERM Queensland

Western Australian Soil Erosion Survey

Road Erosion Control - DERM Queensland

Road Construction – NT NRM

Whoa Boy Construction NTG

Ord River Erosion Control

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Managing Woodland Thickening

The majority of grazing country in northern Australia is woodland. Woodland thickening describes the process where native trees begin to be become denser in open or semi open woodlands, or even encroach onto open grasslands. In many areas woodland thickening has occurred (most probably) due to reduced incidence and intensity of fire, fire exclusions and lower fuel loads in some grazed areas.

Trees have important roles in the nutrient and water cycling processes, soil biology and structure, and providing shade and habitat for animal life. However, increased thickening of trees and shrubs in woodlands does change native habitats and the tree- grass balance.

Grass yields decline closer to trees, due to competition for water between trees and grasses. If trees are killed, grass growth will then increase initially as grasses are able to capture more nutrients because water competition has been removed. If the density of trees increases over time, increased competition for nutrients and water begin to reduce pasture growth and land condition. In addition the resulting dense stands of woody plants can interfere with mustering and harbour feral animals.

The key objective of managing woodland thickening is to improve available pasture. The carrying capacity can then be adjusted. A strategic program of controlled fires is the most suitable control method in northern Australia (see Fire Management section also). Fire is a natural part of the evolution of northern Australia’s woodlands. If used well, fire can help to maintain healthy woodland vegetation and productive pastures, and be an effective tool to manage woody plants.

For fire to be successful in controlling tree density, there must enough grass left to get an effective burn. Without fire, woodland thickening is likely to continue. This will eventually lead to reduced pasture growth, lower carrying capacity, and poorer land condition. Different plant communities respond differently to fire so it is best to seek local advice on the best fire regimes to use.

Further Information on Woodland Thickening Fire Management - Future Beef

Woodland Thickening

Melaleuca Thickening pdf

Kimberley EcoFire – Australian Wildlife

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Feral Animal Control

A feral animal is a domesticated animal that was brought to Australia, has subsequently escaped into the wild and now lives there. The result of introduction of these animals has often been dramatic — changing the natural environment permanently. Many feral animals were once domestic pets, for example cats and dogs, that have now become wild. Feral animals include:

Pig Dingo Camel Red Fox Donkey Fallow Deer Brumby European Rabbit and Hare Water Buffalo Dog Goat Cat

In Australia, feral animals typically have few natural predators or fatal diseases and some have high reproductive rates. As a result, their populations have naturally increased and they can multiply rapidly if conditions are favourable. Feral animals have an impact on native species by predation, competition for food and shelter, destroying habitat, and by spreading diseases.

From a pastoralist’s perspective, feral animals can cause soil erosion. While managed domestic livestock can be removed from degraded areas until these areas are re-vegetated, it is much more difficult to keep feral animals out. Feral animals can carry the same common diseases as domestic animals. They are a constant source of reinfection for wildlife and livestock, which works against efforts to control costly diseases such as tuberculosis. Managing Feral Animals The objective for managing the majority of established feral animals is to reduce the damage caused by pest species in the most cost-effective manner. This may involve:

• localised eradication • periodic reduction of feral numbers • sustained reduction of feral numbers • removal of the most destructive individuals • exclusion of feral animals from an area.

The damage caused by feral animals also needs to be considered in context with other factors, such as land use, climate, weeds and grazing pressure from livestock.

There are a number of control methods available for feral animals. Conventional control methods include trapping, baiting, and shooting.

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Tr aps A variety of traps are used for feral animal control. Traps include conventional cage traps, soft-catch traps and yards that may be created around watering holes to catch animals as they come in to drink. The setting of cage and soft-catch traps is labour intensive. Some feral animals are ‘trap-shy’ which means that the animals are reluctant to enter traps even though they are baited with food. Yard traps are commonly used for catching feral goats for live transport to markets in Australia and overseas. Baits Baiting of feral animals such as foxes, pigs and rabbits is usually done using the poison known as 1080. 1080 occurs naturally in native pea bushes in Western Australia. Many native herbivores such as kangaroos, brush-tailed possums and small native ground-dwelling mammals in Western Australia have evolved with a much higher tolerance to 1080 than feral animals. This allows baiting programs to be carried out more extensively than may be possible in other parts of Australia where the effects of 1080 on non-target species needs to be considered. Where there is the problem of non‑target species eating the baits, the common practice is to bury baits designed for foxes and feral pigs. Foxes and feral pigs are more likely to dig baits up, as they often dig for food, whereas native carnivores are less likely to take buried baits. Green dye reduces the likelihood of birds picking up baits, as many birds use colour to determine the tastiness of food. Shooting Shooting is also used to control feral animals such as horses, donkeys, pigs and goats. Where the control program must take place in rugged terrain and in vast remote areas, helicopters may be used. Helicopter shooting by trained shooters is the most humane way of reducing the number of feral animals in these areas. It is quick and the animals are not subject to the stresses of mustering, yarding and transportation. Eradication and control methods Eradication and control methods to suit specific feral animals, different levels of infestation and specific environments are many and varied. Each of the sites in the information list that follows includes details on local and nationwide control measures.

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Recommendations for Feral Animal Control

• Monitor feral animals on your property to see if a management plan is necessary. Target those animals that cause most damage first. • Seek local expert advice on the most cost-effective and practical methods of control or eradication. • Make sure eradication methods are conducted humanely.

Further Information on Feral Animal Control NTG Land Resource Management Feral Animals

Invasive Animals CRC

Savanna Explorer - Feral Animals

Development of a model code of practice and standard operating procedures for the humane capture, handling or destruction of feral animals in Australia

Jawoyn feral animal control

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Responsibilities if Leasing Out Your Land

If you are sub-leasing your land there are grazing land management responsibilities which must be specified. When drawing up a sub-lease or grazing licence it is important that the lessee’s responsibilities in regards to maintenance of the land, including existing pasture condition, are put in writing into the contract. Some of these requirements may include:

• adhering to carrying capacity recommendations over the long term • adjusting stocking rates in drier years to prevent overgrazing • strategic burning for woodland thickening or to improve evenness of grazing • wet season spelling to maintain land condition if required • strategies to prevent weeds being bought onto the property • weed control programs, particularly if the lessee has bought in the weeds • maintenance of all existing water points • maintenance of fences and other infrastructure • maintenance of roads and creek crossings • strategies to return land condition back to its original land condition status in the event that it has deteriorated • special requirements in relation to cultural heritage • feral animal control.

In some situations there is a written agreement between the lessor and the lessee for either party to upgrade or add watering points and other improvements. Make sure there is enough detail written into the agreement to define and describe these improvements so that expectations are clear, and are met.

Further Information on Sub-leasing Subleasing WA

Grazing Licences NT

Subleasing Qld

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Sources of information used in this module

MLA EDGEnetwork®

• Grazing Land Management – Southern Gulf version • Grazing Land Management – Central Australia version (Adapted for delivery to the Indigenous pastoral industry)

Managing grazing in northern Australia – a grazier guide, Ian Partridge, Department of Primary Industries Queensland 1999.

Cattle and land management best practice in the Top End region 2011. Northern Territory Government Department of Resources 2012

Savanna Burning - Understanding and using fire in northern Australia, Edited by Rodd Dyer et al. Tropical Savannas CRC, Darwin, NT, 2001

Fire – your Questions Answered. Rural Fire Division, Department of Primary Industries Queensland 1996.

Numerous websites including www.futurebeef.com.au

Author’s own workshop and training notes (Felicity Hamlyn-Hill)

Photo 5.8 Kimberley Landscape, East of Halls Creek

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module six herd management and production

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 6 herd management and production

Contents List of Tables Table 6.1 W eaner Supplements by Introduction 4 Weaner Size to Achieve Managing Breeders and Heifers 6 Target Growth Rates 42 Breeder Management 6 Table 6.2 S upplements Grouped Managing Breeder Body Condition 6 According to Primary Cattle Control 10 Nutrient Supplied 49 Pasture Management (Feed Available) 10 Table 6.3 T ypical Dry Season Nutritional Deficits – Protein, Weaning Management 10 Energy & Phosphorus 53 Mating Management 11 Table 6.4 P hosphorus Intakes Needed Supplementation of Breeders in Deficient Areas 60 and Heifers 12 Table 6.5 P hosphorus Intakes Needed Pregnancy Diagnosis 19 in Acutely Deficient Areas 60 Heifer Management 21 List of Figures Bull Management 25 Figure 6.1 B reeder Segregation Showing Bull Percentages 25 Cow Group Separation 15 Stress and its Effect on Semen Quality 25 Figure 6.2 S econd Round Pregnancy Bull Health 26 Tested Empty Cows Bull Selection and Showing Options 16 Genetic Improvement 28 Figure 6.3 S easonal Mating Calendar Making Sure Bulls are Fertile 28 for Heifers (Example Only) 22 Structural Soundness of Bulls 29 Temperament of Bulls 30 Figure 6.4 P rimary Limiting Nutrient – Leaking Barrel Concept 48 Genetic Improvement for Important Traits 31 Figure 6.5 T ypical Dry Season Protein Shortage for a Weaner Management 38 Lactating Cow 54 What Weight to Wean a Calf? 38 List of Photos (see over page) Weaner Management Tips 39

Feeding Weaners 40 back to start of manual Small Weaners and Yard Facilities 41 Weaner Health 43 Supplementation 46 Planning a Supplementary Feeding Program 46 Dry Season Supplementation 52 Phosphorus Supplementation 55 Hormonal Growth Promotants 62 Basic Principles of Using HGPs 62 Workshops to Attend for this module 64 Sources of Information Used in this Module 65 2 MODULE 6 herd management and production

Photo 6.1 B ody Condition Score 1 (Poor) – 0-30% Pregnancy Rate 7 Photo 6.2. B ody Condition Score 2 (Backward Store) – 30-60% Pregnancy Rate 7 Photo 6.3 B ody Condition Score 3 (Store) – 60-80% Pregnancy Rate 8 Photo 6.4 B ody Condition Score 4 (Forward Store) – 70-90% Pregnancy Rate 8 Photo 6.5 B ody Condition Score 5 (Fat) – 80-90% Pregnancy Rate 9 Photo 6.6 Co w Licking a Supplement Block, North Queensland 13 Photo 6.7 Co w and New Born Calf – Born at the Wrong Time of the Year 17 Photo 6.8 P regnancy Diagnosis School, North West Queensland 19 Photo 6.9 G ood Temperament Stud Bull 31 Photo 6.10 P erformance is a Combination of Genetics and Production System 32 Photo 6.11 M easuring Scrotal Size 33 Photo 6.12 V ery small weaners need proper care on a daily basis 41 Photo 6.13 F eeding Weaners 4

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Introduction

The profitability of a beef business is often linked to the level of herd production or performance. Improved levels of herd production are achieved through herd management. The key components of herd production are weaning rates, mortalities, growth and market compliance.

The northern Australian environment is very harsh for cattle. The pastures are of poor quality and forage yields are often low. There can be long periods between rain events and evaporation rates are high; plus it becomes very hot before it does rain. During the long dry season, pasture quality deteriorates rapidly and it is often below maintenance for cattle, posing challenges to managers of beef enterprises.

Most management strategies are designed to overcome, as much as possible, the poor nutritional conditions of the pasture in northern Australia. Numerous research trials and demonstrations have shown the importance of weaning and management on breeder herd nutrition and subsequent fertility. The recent Boosting breeder cow survival | Meat & Livestock Australia (MLA) project showed mortality rates were lower where management strategies, designed to control the nutritional status of breeders, were implemented. These management strategies are:

• wet season phosphorus supplementation of all females, including aged females • dry season segregation of breeders into management groups • controlled mating (rather than continuous mating).

The level of management needed to achieve higher levels of herd production requires a level of infrastructure, including adequate paddocks, yards and roads, which are found on some Indigenous properties but not on others. Despite this, there are still many management strategies that can be applied to improve the production of the existing herd. These include improving the genetic quality of herds for economically important herd traits such as fertility and growth, through astute bull selection.

Indigenous managers (and non-indigenous managers) who are just starting out may have little experience. It is important then, to seek support and mentoring, throughout the process of implementing herd management practices and improvements. Advice can be sought from experienced extension officers or service providers, and suitable localex perienced pastoralists. Don’t be afraid to attend local field days and workshops.

It is important to find a balance between achieving a higher level of herd production, and the costs of management practices needed to achieve that goal. This module covers those practices that have been researched and proven to be cost effective on successful commercial operations — when implemented correctly.

For further detail or in respect to specific circumstances, it is advised readers consult with their local, suitably qualified extension officers, and also attend the suggested workshops listed at the end of the module.

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Managing Breeders and Heifers During the dry season, a wet (lactating) cow’s nutritional requirements usually exceed what she is able to consume from the pasture. As a result, these cows lose body condition and have difficulty getting back in calf following calving. Managing cow body condition is critical to improving conception rates, weaning rates and survival rates. The key management strategies to manage the body condition of a cow during both wet and dry seasons are discussed in this section, along with other management strategies necessary, for improved productivity of the breeder herd. Bull Management Bull management is an important component of managing the herd for high reproductive performance, as well as for reducing bull costs. An aspect of bull management discussed in this section, is managing bulls so that semen quality is not adversely affected, including bull relocation advice. Bull percentages, bull health and culling of bulls are also addressed in this section. Bull Selection and Genetic Improvement Bull selection and purchasing decisions should be undertaken by an experienced person. This is because selection and purchasing decisions set the direction of the herd, and therefore affect the profitability of the beef enterprise for well into the following decade. This section provides basic guidelines on selecting fertile and sound bulls of good temperament, with genetically desirable growth and carcase traits. Weaner Management Good weaning management is critical for breeder herd performance. Weaning reduces the nutritional needs of the breeder by about 40%, improving her chances of getting back in calf. This is particularly critical in very dry years when it is necessary for survival of the cow (or heifer) and calf. However, the weaner itself needs to be looked after and managed well; otherwise it will not grow well and will have health problems. This section addresses weaner management including preparation of weaners, recommended supplementation and health care. Supplementation Supplements are needed in northern Australia to correct nutritional shortfalls in the wet season such as phosphorous deficiency, and to supplement the weaners so they grow well. Dry season supplements for breeders, particularly for lactating cows, should be used to enhance other good breeder management already in place. This section covers planning a supplementation program, dry season supplementation and phosphorus supplementation. Hormonal Growth Promotants The use of hormonal growth promotants (HGPs) is one of the most cost effective management options available to beef businesses. The basic principles of HGP usage are addressed in this section. Specific advice for specific situations should be sought from suitably qualified extension officers or private providers.

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Managing Breeders and Heifers

Reproductive performance of breeders and heifers is one of the major factors affecting the profitability of large extensive beef properties. The reason for this is that the majority of turnoff on extensive properties is from young cattle, and the lower the age of turnoff the more important reproductive performance becomes. Management of breeders and heifers affects the:

• number of weaners produced and the weight of those weaners • death rates of calves, heifers, and cows • sale value of cull cows. Good management of breeders, bulls and weaners starts with adequate nutrition, in particular good grazing management. (For more information see Module 5 Grazing Land Management). Where mineral deficiencies occur, such as phosphorus, wet season supplements should be fed (see the Phosphorus Supplementation section of this module).

The critical aspects of breeder and heifer management are weaning and management of the weaner, followed by mating management, and culling of breeders that do not wean a calf. Weaning management and mating management can potentially have a large impact on annual weaning rates. Effective vaccination programs are also important. Dry season, urea-based supplementation programs are often necessary, but can be costly. Accordingly, weaning, and then mating management or breeder segregation, ideally should be implemented first. Breeder Management Poor nutrition is often the leading cause of poor fertility in breeding herds in northern Australia. During the dry season a wet (lactating) cow’s nutrition requirements usually exceed what she is able to consume from the pasture. As a result these cows lose body condition, and therefore they have difficulty getting back in calf (conceiving) following calving. Managing cow body condition is critical in improving conception, weaning rates and survival rates. Managing Breeder Body Condition Body condition of the cow, at the time of calving, is an important factor determining how soon a cow starts cycling and gets back in calf (conceives), after having a calf. A cow should be in condition score 3 or above (on a 1 to 5 scale) at calving to have a reasonable probability of conceiving within the ‘85 day window’ to produce a calf each year. It is extremely difficult for a cow to produce a calf every year in northern Australia, but by effectively managing body condition, the length of time between calving and getting back in calf again will be reduced.

The following photos of cow body condition, and associated text, show:

• what each body condition score looks on a breeder (the photo) • how it is described - poor, backward store, store, forward store, fat • the expected pregnancy rates at subsequent mating, for cows in that body condition, at the end of the dry season.

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Photo 6.1. Body Condition Score 1 (Poor) – 0-30% Pregnancy Rate

Photo 6.2. Body Condition Score 2 (Backward Store) – 30-60% Pregnancy Rate

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Photo 6.3 Body Condition Score 3 (Store) – 60-80% Pregnancy Rate

Photo 6.4 Body Condition Score 4 (Forward Store) – 70-90% Pregnancy Rate

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Photo 6.5 Body Condition Score 5 (Fat) – 80-90% Pregnancy Rate

Source of photos: Peter Smith, DAFFWA and Geoffry Fordyce, QAFFI. Source of pregnancy rates: Weaner Management in Northern Australia, MLA Publication 2012.

The key management strategies to manage the body condition of a cow during both wet and dry seasons are:

• cattle control (to improve management capacity) • grazing management (to ensure quantity of feed available) • weaning management (to remove the stress of lactation) • mating management (to reduce dry season lactations) • supplementation (to correct nutritional deficiencies) • breeder segregation (to allow more efficient supplementation).

These strategies are discussed in more detail in the following pages.

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Cattle Control Cattle control is determined by the number and size of paddocks, distance to yards, and therefore the capacity to muster, handle and paddock cattle as required. Without enough paddocks, heifers cannot be segregated from older breeders; breeders cannot be segregated into age groups, or segregated according to whether they have a calf or not (to be supplemented accordingly). Higher level management then becomes more difficult. Without adequate paddocks and cattle control, it is more difficult to get a clean muster and breeders then miss out on having a calf weaned, or receiving a vaccination. Pasture Management (Feed Available) A fundamental step in managing the body condition of cows is to make sure there are not too many cattle in a paddock, for the amount and quality of pasture feed available. Cattle numbers often need to be reduced in paddocks during the dry season, or during dry years, that is the stocking rate is adjusted. For more information see Module 5 Grazing Land Management.

Positioning and distribution of water points will influence how country is utilised by cattle, and how far they have to walk to get a drink. Managers know cattle tend to utilise areas near bores more so than further out. More waters, bores and dams, allow cattle to utilise pasture where they otherwise wouldn’t feed out to. In the dry season, when water holes in creeks dry up, cattle can then utilise these areas. Weaning Management Weaning is a critical component of a heifer and breeder management program. Major benefits of good weaning management are better cow condition, more conceptions, more calves, and more sales in the future. Weaning is the critical first step to reduce the number of cows lactating in the dry season. Why does weaning help cows get back in calf ? A lactating or wet cow needs considerably more feed than a dry cow to maintain her weight and body condition. During the dry season it is almost impossible for a wet cow to eat enough grass to meet her daily requirements for energy and protein, particularly if the calf is big and the feed is dry and of poor quality. Consequently, lactating cows lose a lot of weight and body condition as the dry season progresses.

When a calf is weaned the cow stops lactating (producing milk). Weaning therefore removes the stress of lactation which in turn lowers the cow’s daily nutritional requirements by around 40%. Weaning the calf helps preserve the cow’s body condition, and improves her chances of cycling and getting back in calf, simply because the suckling calf is removed.

There is a second reason to wean calves. A vast amount of research has also shown that lactation in itself suppresses cycling, especially in Brahman cattle. The suckling effect of the calf sends a message to the brain, and the brain tells the cow not to cycle. This is a survival mechanism. By weaning and removing the calf, the cow may cycle earlier than she would have, if the calf had still been on her. This effect can last for days after the calf is weaned. So ‘temporary’ weaning is not recommended - if the calf is weaned don’t put it back with its mother, even after several days.

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When to wean? When to wean a calf is a compromise between growth of the weaner and loss of cow condition. Clever managers start weaning before cows start to slip in condition.

Conducting two rounds of weaning and weaning down to 100 kilograms (kg), has proven to be one of the most effective strategies to improve breeder performance in northern Australia. The mustering and weaning rounds should be timed to reduce the amount of body condition loss in lactating (wet) cows. Undertaking the first round in March to May gives the weaned cows access to reasonable quality feed for two to four months and they can quickly recover body condition. The second weaning round in August to October reduces the number of cows lactating when feed quantity and quality is lowest. This is also important for reducing mortalities.

Calves that are too small to wean (that is less than 120 kg at first round and less than 100 kg at second round) will go back with mothers. If there are enough paddocks, it may be practical for these wet cows with small calves to be paddocked separately and fed supplements. This is an aspect of breeder segregation which is discussed further in a later section of the module.

In an ideal situation all calves should be weaned by the last muster of the year; however this is mostly not achievable on large properties. Only properties that implement seasonal mating can achieve this, and this is usually not practical on large northern properties, except perhaps with first mated heifers.

Special supplements are needed for young weaners to meet their nutritional requirements for growth; otherwise they lose weight and condition, and suffer health problems. For more information see the sections on Weaning and Weaner Supplements in this module. Mating Management The primary reason for controlled mating is to prevent cows lactating during the dry season when nutrition is poor. This will help preserve a cow’s body condition and she will be more likely to get back in calf again at the right time. Controlled or seasonal mating is something all cattle managers should understand, even if they cannot implement it across the whole breeder herd on their property. Controlled mating should be implemented with heifers, where possible.

Controlled mating ensures bulls can only mate with the breeders or heifers during certain months of the year, such as January to June. As a result, the breeders will then calve nine months later, at the start of the wet season and throughout the wet season. This means their calves can be weaned by the last muster of the dry season, and therefore these cows or heifers are dry (not lactating) during the late dry season when feed quality is poor. Where practically possible, controlled mating is the ultimate management strategy because all cows are dry during the dry season and supplement requirements will be minimised. There should be no reduction in calving percentage if implemented correctly, including implementation of the transition phase.

However, in northern Australia, the size of properties, mustering difficulties and lack of infrastructure, means many properties do not have the cattle control required for controlled mating. With large paddocks, it can be very hard to get a clean muster to get all the bulls out of the paddocks at the end of the mating period. In addition, when the bulls need to be put out, during January to February, it is the middle of the wet season, so there is a high risk of not getting bulls out at the right time.

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What can you do then? If paddock infrastructure development allows, and good weaning practices are already in place, controlled or seasonal mating of first mated heifers is recommended. If there are enough paddocks, they may also be able to be control mated as first calf heifers the following year. Supplementation of Breeders and Heifers In most areas of northern Australia, wet season phosphorus supplementation is necessary to overcome acute and marginal phosphorus deficiencies. Mineral deficiencies in cattle can significantly reduce feed intake, growth rates and fertility. Dry season supplements should be used to enhance good breeder and heifer management, not as the primary management tool. (It is important to also read the Supplementation section of this module, as the following comments focus only on supplementation as part of a management system, and not specific detail.)

Supplement cost efficiency is much greater when other good management practices are put in place first, such as:

• adjustment of stocking rates in paddocks where there is not enough feed and cattle are losing condition - in some cases cattle may need to be moved to another paddock • management, such as weaning and seasonal mating of heifers, which is designed to restrict or eliminate breeders lactating in the dry season • breeder segregation which allows those with the highest nutritional needs, such as lactating cows, to be fed separately and efficiently. The primary reason for putting other good management in place first, is that it is difficult to supplement wet (lactating) cows and heifers in a cost effective manner. The economics and effectiveness of breeder supplementation is further constrained by the fact that following the last weaning round, only a portion of the females require supplements and these are the ones that are lactating late in the dry season. As these may comprise only 25% or less of the mob, supplementation of the whole mob becomes inefficient and costly. Why is it difficult to supplement wet cows cost effectively? Under typical poor pasture conditions in the dry season, crude protein levels in the grass may drop to as low as 2 to 5%. This means there is not enough protein in the grass for a cow feeding a calf. A mature wet cow may need 480 grams of extra protein a day. A 30% urea supplement will only supply 172 grams of protein (from urea), at an intake of 200 grams per day. So for lactating cows it is very difficult and costly to feed them enough urea dry lick to correct the dry season protein shortfall. As well, the cattle simply can’t effectively utilise higher levels of urea.

For a dry cow it is easier to correct the dry season shortfall in dietary protein, due to its lower nutritional requirements. This may be necessary in some years and on some properties where the feed is always of very low nutritional value during the dry season. Supplementation helps the cows to calve in better condition.

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Holding condition on pregnant and lactating cows keeps a cow’s ovaries in a ready state to cycle and we want cows to be cycling at the start of the wet season. If wet cows are allowed to lose body condition in the dry, it is generally too expensive to feed them sufficiently to recover body condition, to increase cycling and pregnancies. However, if they are not fed they may lose so much condition that it takes them a very long time to get back in calf again, and indeed they may not conceive until after their calf is weaned or during the next growing season. This is costly to the business but quite common in northern Australia. Also there is a welfare risk as they can become very poor and weak.

While dry season supplementation is very costly, it may be the only option. However, there are ways that supplementation costs can be reduced:

• Feeding the right supplement at the right rate improves cost effectiveness. • Putting the supplement out at the optimum time gets the best response. • Feeding only those cows that need it most (wet cows) helps reduce costs. The only way to achieve this is by breeder segregation at the last muster based on whether they are wet or dry.

Photo 6.6 Cow Licking a Supplement Block, North Queensland.

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Breeder Segregation If controlled mating cannot be achieved, as is the case on most large northern properties, breeder segregation according to lactation and pregnancy status can be a viable option. This should improve breeder management and performance, and reduce supplement costs. However breeder segregation requires adequate paddocks, reasonable handling facilities and the ability to move cattle to different paddocks, in a cost effective manner. What does breeder segregation involve? First round muster • The dry cows are separated from the wet cows, and the wet cows are put in a separate paddock and kept as a separate management group. • The wet cow group comprises cows that have just had a calf freshly weaned, and cows with a calf still at foot to be weaned on the second round. The wet cows have the highest nutritional needs and require supplementation before the dry cows. Segregating these cows reduces the number of cows being fed and the overall cost of supplementation. • An adjustment of bull numbers to the appropriate percentage is required for the wet group. Cows that have just had a calf weaned may go back in calf soon after this first round muster, so it is important to have bulls in with them. • The dry cows can be pregnancy tested (an optional step), to: »» identify empties (Pregnancy Tested Empty or PTE) for sale and »» draft the rest into calving groups based on pregnancy status. The groups should consist of those cows due to calve prior to the second weaning round, and those due to calve later than the second weaning round. The composition of paddock groups is based on calving group, paddock availability and seasonal conditions.

The optional pregnancy diagnosis of dry cows at the first round may be more important in dry years, when dry empty cows and cows due to calve in the dry season need to be ‘off loaded’ earlier in the year.

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Figure 6.1 Breeder Segregation Showing Cow Group Separation

1st Round Muster 2nd Round Muster (April/May) (Sept/Oct)

pregnancy diagnosis Oct/Dec calf

wet cows wet/dry cows Jan/April calf

PTE dry cows (optional pregnancy diagnosis)

Dry cows and wet cows become separate management groups

Second round muster The wet cow group — that is, those that have a calf at foot and those that had a calf weaned at the first round muster — are pregnancy tested and the age of the unborn calf is determined (foetal aging). This results in three groups of cows (two calving groups and one PTE group):

• Those due to calve from October to December will produce first round weaners in April. • Those due to calve from January to April will produce second round weaners in August/September. • If there are enough paddocks available, PTEs can be placed in a separate paddock. There is the option of selling these, as shown in figure 6.2; however herd conception rates need to be high enough to produce enough replacements to sustain herd numbers. Remember, all these cows either weaned a calf at the first round muster or the second round muster. Those that weaned a calf at the second round muster will most likely be too low in condition to sell.

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Figure 6.2 Second Round Pregnancy Tested Empty Cows Showing Options

2nd round PTE cows (pregnancy tested empty)

PTE cash sales PTIC PTE cows drought – move

re-joined for Nov/Dec calf (i.e bulls in Dec/Jan)

What else is required? • good weaning practices need to be in place • yard infrastructure and holding facilities to allow pregnancy diagnosis • the ability to mother up so the right small calves go with their lactating mothers to the right paddocks — if the wet cow group needs to be split • adequate paddocks that are accessible and close to yards. What are some of the disadvantages? • There is a cost associated with pregnancy diagnosis and moving cattle. • There must be enough paddocks available, with adequate forage. • Some cows may try to return to their ‘home’ paddock. • On certain land types with a high distribution of watering holes, cattle have to learn where to find water.

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Photo 6.7 Cow and New Born Calf – Born at the Wrong Time of the Year.

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Case Study Example: Breeder Segregation on Warrigundu Station

Breeder segregation on Warrigundu Station involves the following processes at the first and second round musters. First round: • Dry cows are drafted off from wet cows and pregnancy tested. • Wet cows are paddocked separately as part of the breeder segregation program, to cut down on supplementation costs. • Dry cows are further segregated depending on pregnancy status and foetal ageing (three month calving groups). • Dry PTE cows are transferred to Gunbalanya Meats for slaughter. Second round: • Wet cows from the first round are assessed based on whether they are currently wet or dry and further segregated accordingly, to reduce supplementation costs. • Cows that were wet at the first round are mustered and weaners pulled-off. Those that are dry, obviously had a weaner at foot in the first round that was subsequently weaned. Those that are wet, had a calf at foot in the first round that is now ready for weaning. • Dry cows are mustered and those that were pregnant at the first round will either have only a small calf at foot or will be due to calve. Few, if any, weaners will result from this group. • Cows from the dry cow calving groups which were due to calve before the second round and have come in dry have lost their calf. These are segregated and culled.

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Pregnancy Diagnosis Pregnancy diagnosis of breeders is a management practice which some breeder management systems rely on. Pregnancy diagnosis provides valuable information as to whether heifers or cows are pregnant or empty and, if pregnant, whether they are early, mid or late term pregnancies. It is not possible to tell just by looking at them. The pregnancy information is then used to help a manager make decisions to improve the profitability of the breeder herd and the business. Good management should be in place before pregnancy testing can offer significant financial returns.

Pregnancy diagnosis can be expensive, so the financial returns from pregnancy testing need to outweigh the cost. Firstly it is important to have an objective or aim. Why is the pregnancy testing being done? How will the results help make the business more profitable? Pregnancy testing must result in higher returns from sales, or a cost reduction, through:

• Better sales decisions. If cash is needed from selling breeders, a manager may wish to sell infertile or sub-fertile breeders (or heifers) rather than those that are fertile and making the business money. Many dry fat cows that are sold are ‘in calf ’. If numbers are short these dry pregnant cows may need to be kept. However dry cows not in calf (that is, empty) can be sold. Surplus heifers that are empty can also be sold. Surplus heifers that are late pregnant may attract a better price if pregnancy tested in calf (PTIC). • Breeder segregation for management and supplementation. Pregnancy diagnosis can be used to segregate breeders into management groups on pregnancy status. This allows supplementation to be better targeted and can reduce the number of cattle that have to be mustered to wean calves. • Removal of infertile or sub-fertile breeders. Depending on numbers, this may require knowing their individual history. Did they produce a weaner last year or not? Start by recording the history of heifers. This is higher level management.

Photo 6.8 Pregnancy Diagnosis School, North West Queensland.

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In seasonally mated herds or heifer groups, pregnancy diagnosis results give an indication as to the conception rate, calving pattern and spread. This information allows producers decide which cows or heifers to cull (dry empty, late pregnant) and which to keep. The information also assists in decisions about how many heifers need to be kept to replace culled breeders, and whether pregnant cows or heifers need to be purchased to make up numbers. An understanding of the calving pattern or spread can also help managers identify if a reproductive disease may be present. Disease Control in Breeders

The primary infectious diseases that affect reproductive efficiency in northern Australia are botulism, vibriosis and pestivirus. Leptospirosis and trichomoniasis are problems in some situations.

Botulism vaccination should be standard practice because the disease is widespread throughout northern Australia.

Vibriosis vaccination of bulls is recommended across all areas of northern Australia. Vaccination of heifers prior to first mating may result in a ‘tighter’ calving for this age group, but the cost benefit needs to be considered. Vaccination of breeders should be based on veterinary advice.

Pestivirus or bovine viral diarrhoea virus (BVDV) is widespread in northern Australian herds and existing levels of herd immunity can substantially influence the cost effectiveness of vaccination control strategies. It is suggested that producers take advice from their cattle vet (not vaccine manufacturers) and the BVDV website when considering whether vaccinations should be used prior to mating.

Information on disease and disease control for reproductive diseases can be found in Module 7 Husbandry, Health and Welfare. Your local vet can advise on diagnosis and financially viable control measures for all diseases.

Overall Management Checklist for Breeder Management

• Aim for cow condition to be score 3+ at calving. • Ensure adequate pasture availability. • Minimise or eliminate cows lactating in the dry season through weaning and mating management, if possible. • Where infrastructure and management allows, breeder segregation is an option to reduce supplement costs. • Use supplements where most needed – such as wet cows. • Vaccinate for disease management.

Specific further advice should be sought from your cattle vet or a competent beef advisor.

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Heifer Management A good heifer management program helps improve the overall reproductive performance of the breeding herd. In a typical northern herd, 80% or more of maiden heifers should conceive (get in calf ) at their first mating; however, 10-25% will fail to produce a calf. In many herds on tough country, only 20% of heifers that produce a calf will go back in calf while lactating. This means that young breeding females may often only produce one calf in the first four years of their life.

A good heifer management program is required because:

• Heifers suffer greater nutritional demands than cows as they are reproducing and trying to grow at the same time. • Unless mating is well controlled, many heifers can end up lactating during the dry season. Lactation during the dry season, coupled with poor nutrition, results in few heifers getting back in calf, major setbacks for the heifers (they may be stunted) and high mortalities. The key components of a good heifer management program are:

• heifer segregation • heifer management for growth • seasonal mating • early weaning for heifer calves • heifer selection and culling • disease control • genetic improvement. Heifer Segregation From the time of weaning, heifers should be put in a separate paddock if possible, so they can be managed specifically. They should remain segregated until their first calf is weaned. It is acknowledged this will depend on the number of paddocks available. Heifer Management for Growth To ensure heifers are well grown at the first mating at two years old, the following steps are recommended:

• Following weaning, heifers are most likely to require supplementation and a paddock with good pasture so they continue to grow well throughout the dry season until the wet season. Nutrition following weaning is critical as poor growth in this period can mean heifers reach puberty later, reducing early lifetime fertility. • Heifers also may need some dry season supplements during their second dry season. Prior to the first mating (their second wet season), they need to achieve a critical mating weight of 320 to 340 kg.

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• Make sure maiden heifer paddocks are not over stocked, and that first calf heifers are placed in the best of breeder herd paddocks. • Wet season supplements may be necessary to correct major mineral deficiencies, such as phosphorus. Seasonal Mating Seasonally mate heifers so that they calve at the right time of the year, where possible. When first calf heifers are still trying to grow, and at the same time have their first calf at foot (that is, they are lactating), it can be very tough for them during the dry season. Consequently they can lose a lot of body condition. Controlled or seasonal mating can help by making sure heifers are not lactating during the dry season.

The only way to avoid having heifers lactating during the dry season is to seasonally mate heifers for a short period, for example from the end of January to May. The first calves will drop in early November, but hopefully the first storms will arrive in November. The last calves will drop in February during the height of the wet season and these calves can be weaned three to four months later. All calves from heifers can be weaned by the last muster of the year. In figure 6.3, weaning is shown in early August, but it can also occur in September.

Figure 6.3 Seasonal Mating Calendar for Heifers (Example Only)

Calving Bulls in

Dec Jan

Feb Nov

Mar Mating

Oct

Apr

Sep

May

Aug

Jun Jul

Bulls out, Weaning, weaning foetal age

Where bull control is not practical (many situations), first mated heifers can be pregnancy tested 12 to 16 weeks after the start of the preferred mating period and empty heifers culled at this time. This also achieves a reduced calving period, and therefore reduces the number of heifers lactating in the dry season.

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Early weaning of heifer calves So that first calf heifers continue to grow and get back in calf again, it is necessary to wean their calves a bit earlier. This instantly removes the nutritional stress of lactation, and may prevent further loss of body condition. Otherwise these first calf heifers will take too long to get back in calf again. Mustering the first calf heifer paddock after the wet season should be done before mustering the older breeder paddocks. However, do not muster when heifers are calving as this may increase calf losses. Heifer selection and culling for profit It is common for managers to ‘over-mate’ heifers (that is, they mate most, or all, of the heifers). They then remove/cull surplus heifers based on a pregnancy test. If well grown maiden heifers are pregnancy tested empty after having had ample opportunity to get in calf, they could be sub-fertile or infertile. They should be removed as they are not profitable, and their poor genetics should be removed from the herd. Other things to consider when culling heifers include poor temperament, slow growth rate, and ability to hold body condition. Genetic defects such as bottle teats and stringhalt may not become apparent until they are older. They can be culled for these as they are identified. Disease control in heifers The primary recommendation for vibriosis control in heifers (and breeders) is to use vaccinated bulls. Where the disease is rampant, consider vaccinating heifers prior to mating, but the cost-benefit must be weighed up, given the cost of vibriosis vaccinations. Botulism vaccination is important as the disease is common in northern Australia. Pestivirus vaccination may only be needed where heifer groups have been tested naïve (unexposed) to the virus. Genetic improvement in heifers Both age and weight at puberty are heritable. This means genetic progress can be made in these traits. Sire-effects potentially can account for variations of up to 100 kg in weight at female puberty. There is a genetic relationship between scrotal size in bulls and age of puberty in their heifer daughters. Objective selection of bulls with above breed average scrotal sizes will assist in making genetic progress. For further information see the later section on Bull selection.

Management Checklist for Heifer Management

• Manage heifers so they grow well. Heifers need to reach 320 to 340 kg at mating to ensure they have the greatest chance of cycling. • Good mating management will ensure heifers are not lactating in the dry season, helping to prevent weight loss and deaths. • Heifers which are slow to conceive at their first joining are likely to become slow breeders, and should be culled. • Good weaning management will help preserve body condition and improve second calf conception rates. • Bulls should be vaccinated against vibriosis.

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Further Information on Breeder and Heifer Management Heifer management in northern beef herds is a recently released MLA publication

The Breeding and genetics | FutureBeef website is a primary information source for beef producers in northern Australia seeking breeder management information and is an access point to other sites.

Heifer management

Managing cow reproduction

Nutritional management of breeders

Seasonal mating

Measuring breeder performance

Pregnancy testing – utilising results

Spike feeding

Body condition score

Multi-media Managing breeder condition: Body condition score (BCS) - YouTube

Breeder management to optimise reproductive performance and profit - YouTube

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Bull Management

Bull management is an important component of managing the herd for high reproductive performance, and for reducing bull costs. Bull Percentages Northern Australian research showed that no more than one bull per 40 cows is required (that is, 2.5% bulls), when bulls met the minimum requirements of a Bull Breeding Soundness Examination (BBSE). Bull percentages of 2.5% did not jeopardise the branding rates in very large paddocks, on large pastoral properties, where waters were spread out. However, all bulls must pass a BBSE test to make sure they are not sub-fertile or infertile. For more information on BBSE see later section dealing with Bull Selection.

Where bulls are being used that have not passed a BBSE, higher percentages of up to, but no greater than, 4% may be needed. However, this means more bulls and more cost in replacing bulls, so make sure replacements have passed a BBSE. Stress and its Effect on Semen Quality Any stress that we place on a bull can affect semen and sperm quality. Stress, whether it is caused by poor nutrition, relocation, poor handling, fighting between bulls, mismanagement of bull groups, or being non-adapted, all cause sub‑fertility. Fertility, and particularly semen quality, can be substantially suppressed for two months or more until relief from stress is achieved. Good bull managers minimise stress in bulls, particularly in the two months pre-mating and during mating, that is prior to the wet season.

Some strategies to minimise stress in bulls are:

• relocation of new bulls in advance of mating to acclimatise them (see below) • keeping bulls in forward body condition through good nutrition • good handling and giving yarded bulls enough space in pens • never using in excess of 4% bulls • keeping bulls with other bulls of a similar age, especially young bulls • paying attention to bull health. Bulls purchased from different locations Bulls purchased from geographic or climatic locations different to your property, should be relocated earlier than those bulls bought from a similar location to your property. This gives them time to adjust. Some bulls do not adapt to stressful environments as well as others. These bulls are more likely to have their semen quality affected, so should be relocated three months ahead of joining.

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Bull Health Check the vaccination history of purchased bulls and vaccinate if necessary.

Vaccinate new bulls against vibriosis before joining. They then require an annual booster vaccination at the last muster of the year. Valuable bulls, such as stud bulls, should be vaccinated for ephemeral fever (three day sickness). Checking bulls for abnormalities Once on property, all bulls should be checked for abnormalities when mustered, usually at the second round. Cull bulls which have obvious structural abnormalities or injuries of the feet, legs and hips (for more detail see Bull Selection section). Check for obvious injuries to the sheath and male reproductive parts. If bulls have trodden accidently on themselves and it is swollen and injured they will need to be culled. In more intensely managed herds, managers have the bulls BBSE checked annually or bi-annually prior to mating. What age to cull bulls? To justify retaining a bull in the herd to an older age, the bull must be fertile, structurally sound and also be equal to, or better than, the most recent bull replacements, for all genetic traits used in bull selection.

Cull bulls no later than seven years of age, as older bulls are more likely to break down, or have trouble serving cows due to arthritis or old injuries. They are also more likely to carry disease and often become hard to handle.

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Management Checklist for Bulls

• Only purchase bulls that have passed a Bull Breeding Soundness Examination (BBSE). • Relocate new bulls well in advance of mating to acclimatise them. • Keep bulls in forward condition. • Use one bull for every 40 cows (2.5%) when bulls are BBSE tested. Use up to 4% bulls if they are not BBSE tested. Never use more than 4%. • Vaccinate all bulls for vibriosis. • Cull bulls for structural injuries and faults, and poor temperament. • Cull bulls no later than seven years of age, six years if disease is present.

Further Information The following articles can be found on

Breeding and genetics | FutureBeef Website

Bull breeding soundness examination (BBSE)

Bull buying checklist

Bull management checklist

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Bull Selection and Genetic Improvement

Bull selection and purchasing decisions set the direction of the herd and therefore affect the profitability of the beef enterprise, for well into the following decade. Selection and purchasing decisions should be made by an experienced person. This section gives basic guidelines; however, advice should also be sought from specifically qualified extension officers or private practitioners.

Part of the cost of producing weaners each year is the cost of having bulls. The critical first step in reducing these costs is to make sure any bulls purchased are fertile bulls, and can sire calves. Approximately 15 to 20% of bulls sold are infertile or sub-fertile. Making Sure Bulls are Fertile Bulls are in the herd to get as many breeders in calf as possible, preferably in a short space of time, and to pass on desirable genetics rather than undesirable genetics. Bulls that are sub-fertile or infertile are a cost to the business. So it is important to make sure they are up to the job. The only way to be reasonably sure is to ensure bulls purchased have passed a Bull Breeding Soundness Examination (BBSE). Bull Breeding Soundness Examination Bulls that pass a full BBSE examination and that do not suffer injury, disease or mis-management; generally remain fertile for many years. A BBSE is so important that no vendor should sell bulls without this information, and no purchaser should buy a bull without it! Don’t be afraid to ask for a BBSE certificate for each bull. If a BBSE certificate is not supplied when you ask for it - don’t buy the bulls.

The Australian Association of Cattle Veterinarians (AACV) oversees the BBSE process and provides BBSE certificates. The BBSE evaluation is conducted prior to sale and details the identification of the sire, date and location where the evaluation was conducted, the assessments made and also relevant disease information. However, the purchaser should also find out if any diseases exist. In particular, check for diseases that are under regulatory control and are notifiable.

In the sale catalogues, bull sellers should provide for each bull, a summary of the tests conducted by the examining veterinarian. This BBSE summary will contain information as shown below:

Bull Number & Name Age (Yr:Mn) Scrotum Physical Semen Morphology Serving AACV Top Bull 2.02 37.0 cm ✓ ✓ P nt

Key

37.0 = Scrotal size or circumference in centimeters (cm) ✓ = Pass P = OK under natural mating X = Fail Na = Not applicable nt = Not tested.

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The five components of bull fertility in the BBSE are:

• Scrotum: Scrotal circumference/size (SS) in centimetres (cm), where testicular shape is within normal range, and tone. The current recommendations for tropically adapted bulls are a minimum scrotal size of 32 cm. An average size for a two year old bull is 34 to 36 cm. • Physical: Within the constraints of a standard examination, there is no evidence of any general physical or structural condition, or of a physical condition of the reproductive tract indicating sub-fertility or infertility. This evaluation will identify structurally unsound bulls in legs, feet, sheath and general structure. • Semen: Crush-side assessment indicates that the semen is within normal range for motility, colour and percentage progressively motile and is suitable for laboratory evaluation. • Morphology: Semen examination of percentage normal sperm using high power microscope to ensure minimum standards for normal function are achieved. • Serving: The bull is able to serve normally as demonstrated in a standard test and shows no evidence of fertility-limiting defects. Regardless of whether bulls are sourced from the sale ring or the paddock, the need for a BBSE certificate remains the same. Structural Soundness of Bulls If bulls are purchased based on having passed a BBSE, then they should be structurally sound. However, it is important for bull buyers to know what to look for. In the process of deciding which bulls to purchase, the buyer should automatically disregard those bulls that are not structurally sound.

Under extensive conditions of northern Australia, bulls have to be capable of walking long distances and of serving large numbers of females; so they have to be structurally sound.

Structural characteristics (traits) are moderately heritable, so improvements in the herd should be achieved through astute bull selection. Important points to observe include:

• limb structure or conformation, particularly the hind limbs • hoof structure • scrotal conformation and size • sheath size and shape • shoulder and forelimb conformation • body condition/weight. Examination of the hind legs is essential in evaluating bulls, as they have to stand on their hind legs to mount a cow. A bull with hind leg defects may suffer pain on moving or mounting and this may interfere with his desire to mate. As bulls with faulty conformation become older, defects become more apparent and tend to interfere to a greater extent with serving ability.

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Common problems in the legs include:

• Post legs, or straight hind legs, predispose the bull to swollen hocks and to arthritis in the hip and stifle joints. • Bow legged and cow hocked bulls may not have good strength in the hind legs. • Sickle hock bulls tend to be clumsy, particularly at service and when dismounting. Common problems in the hooves include:

• Both hooves not symmetrical in size and shape - uneven toes can be the result of an arthritic condition in the hip or stifle joint higher up the leg. • Short hooves, worn at the toe are an indicator of dragging the hoof, which suggests straight hind legs. • Long, narrow hooves with shallow heels are often associated with weak hocks and pasterns. • Scissor hooves or curved claws can be the result of soft soils such as black soil country or over feeding. However, overgrown claws are usually indicators of poor limb structure or early signs of hip arthritis. Bulls walking out freely should normally place their hind feet in the foot prints of the front feet and carry straight through as they walk. Over-stepping or under-stepping may be linked to serving ability of the bulls.

Large pendulous sheaths are not uncommon in Bos indicus breeds. A very pendulous sheath may result in preputial damage and prolapse.

Make sure both testicles are present and they are of similar size. Larger testicles are a positive indication of a bull’s own semen capacity, and may mean his daughters reach puberty earlier. However, do not select bulls with abnormally large testicles. Temperament of Bulls As temperament is heritable, bulls with poor temperament will pass this trait onto their progeny. Selecting bulls with better temperament should lead to improved temperament in the progeny, as well as benefit animal production, animal welfare and human safety. Bull buyers should automatically disregard bulls they consider to have poor or questionable temperament. Only bulls which are of good temperament (docile) should be considered.

If bulls are purchased at a sale, conduct an inspection prior to the sale and observe their behaviour closely. How do the bulls react when a person gets in the pen with them? Do the same when buying bulls on property. How do they react when you move them from yard to yard, or get in a confined space, such as a pound, with them? The closer you can get to a bull (within reason) without him reacting in a negative manner is a way of gauging his temperament.

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Photo 6.9 Good Temperament Stud Bull

Source: Queensland Country Life Genetic Improvement for Important Traits The quickest way to improve the genetics of the herd is through the bulls that are purchased. This is because bulls will sire many calves in a lifetime, whereas a cow may only have five or six calves in her lifetime. Because bulls pass their genetics onto their progeny, the genetics of the bull used today can impact the herd for many years. Therefore it is important to make the right decisions when purchasing, since the decisions made this year can impact herd profitability in future years because many traits are heritable and are passed onto the progeny.

Genetic improvement should be aimed at improving characteristics or traits which are economically important. These traits are:

• fertility • growth • carcase traits. In northern Australia, these traits should be selected for in bulls that are adapted to the northern environment; that is, they have some Bos indicus or Brahman content. In central Australia such as the Alice Springs area, there is less need for tropically adapted cattle.

When selecting bulls, the emphasis you place on each of the traits of fertility, growth and carcase quality will depend on your current herd and where you think genetic improvement is most needed. How do your cattle compare to the best cattle in the district? Ask your extension officer and/or agents for their honest view of which characteristics or traits need most improvement. 31 back to top MODULE 6 herd management and production

When selecting bulls it is important to select those which are better than the average of the breed, or genetically superior, for the traits of fertility, growth and carcase quality.

Photo 6.10 Performance is a Combination of Genetics and Production System.

Fertility improvement Fertility is a key profit driver for beef herds. Some fertility traits are heritable which means that genetic progress can be made. While the BBSE is not an indication of genetic merit for fertility, some of the parameters or traits measured are heritable.

There are currently two pieces of information that can be used to select bulls with ‘good’ fertility genetics. These are:

• BREEDPLAN Estimated Breeding Values (EBVs) for Scrotal Size (SS) • BREEDPLAN Estimated Breeding Values (EBVs) for Days to Calving (DC)

BREEDPLAN EBVs are measures of a specific trait, which show the estimated genetic differences or breeding values between bulls (or dams) for that trait measured.

The EBV should be compared to the ‘breed average’ for that calf crop - this is breed specific. This should be stated in sale catalogues. If not, ask what it is, so you know if a bull is above or below breed average. It is best to buy bulls that are better than breed average for that year’s calf crop.

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Scrotal Size EBVs Scrotal Size (SS) EBVs are estimates of the genetic differences between bulls in scrotal circumference (cm). Increased SS is associated with increased semen production in bulls, and earlier age at puberty of bull and heifer progeny.

Larger, more positive, SS EBVs are generally more favorable. For example, if two bulls are compared:

• The first bull has a SS EBV of +1.7 cm • The second bull has a SS EBV of +0.4 cm The first bull would be expected to produce sons with larger testicles at yearling age, and daughters that reach puberty earlier and have shorter days to calving (DC), than the progeny of the second bull.

A raw SS measurement such as 36 cm on a sale bull should not be confused with a SS EBV of say +1.7 cm (for example). A raw scrotal size is not an estimate of genetic merit.

Photo 6.11 Measuring Scrotal Size

Source: FutureBeef

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Days to Calving EBVs Days to Calving (DC) EBVs are estimates of genetic differences between animals in female fertility. If purchasing stud cattle or higher value bulls for bull breeding purposes, this information is very important; so make sure you ask for it.

DC EBVs are expressed as the number of days from the start of the joining period (that is, when the female is introduced to a bull) until subsequent calving. The DC EBV is heritable, so bulls pass the trait onto their daughters.

Females with shorter DC, cycle earlier after calving and conceive early in the joining period. They tend to be those which show early puberty as heifers. Because females with a shorter DC EBV are more likely to go into calf earlier in the joining period, they calve earlier than their peers, increasing their chance of producing a calf every year.

Lower or negative DC EBVs are generally more favourable. A bull with a DC EBV of ‘minus 5 days’ would be expected to produce daughters that conceive earlier in the joining period than the daughters of a bull with a DC EBV of + 5 days. Days to calving EBVs are reported in days and may be reported for sires and dams - however it is likely that only animals with reasonably accurate DC EBVs will appear in sale catalogues. Growth improvement Growth is a moderately heritable trait; this means genetic progress can be made. Growth due to genetics alone can mean the difference of 100 kg or more between saleable steers of the same age. A term commonly used is ‘weight for age’. More weight at the same age means more profit in steers, and a greater chance of heifers reaching puberty by their second wet season. However cattle that grow too big in size have high maintenance requirements, so select for growth rate, not large mature size. We want cattle that have fast, early-life growth, but grow to a normal size.

If a bull is selected for size, ‘fleshiness’, and condition, this is often a reflection of the animal’s age and what it has been fed (usually a grain-based diet), rather than its genetic worth for growth rate. The only way to tell the difference between bulls for their genetic potential or merit for growth rate is to select bulls with BREEDPLAN measured Estimated Breeding Values (EBVs) for growth.

There are three growth EBVs – 200 Day Growth, 400 Day Weight & 600 Day Weight. These EBVs are the best genetic prediction of the animal’s ability to grow to weaning (200 day), yearling (400 day) and later ages (600 day). 400 Day Weight EBVs are best for businesses selling young cattle, and 600 Day Weight EBVs for businesses selling heavy steers.

When selecting bulls for growth EBVs, it is also important to check Birth Weight EBVs, as there is a positive relationship with growth EBVs. Small or moderate Birth Weight EBVs are desirable, as there is less chance of a small birth weight calf causing calving difficulty.

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Carcase improvement Depending on the targeted markets, there may be specific requirements for carcases to meet particular specifications or market compliance. Market compliance is important for maximising profit.

A good example of a market specification is carcase fat cover. Many carcases do not have enough fat cover and therefore fall into a lower price bracket on the meatworks’ price grids. The same applies for carcase weight. Sometimes this is referred to as being downgraded. For more information see Markets and Marketing Module 2.

It is difficult to visually appraise a bull for its genetic potential for fat cover. This is because many sale bulls are well fed (usually on grain) and what we are seeing is a reflection of what it has been fed rather than its genetic potential. This is also true for other traits including muscling. Again we need information that shows the animal’s genetic potential for that trait, or estimated breeding value (EBV).

BREEDPLAN currently calculates EBVs for carcase traits based on two main sources of information – live animal ultrasound scanning and abattoir carcase data. From these measurements, EBVs are available for the following traits:

• carcase weight • eye muscle area (EMA) • rib fat • rump (p8) fat (continues overleaf) • intramuscular fat % (IMF %, also known as marbling) • retail beef yield % (RBY %) • shear force (trial EBV only). The most important of these are carcase weight, EMA and Rib and Rump fat. Carcase Weight EBV The Carcase Weight EBVs are estimates of the genetic differences between animals in hot standard carcase weight at 650 days of age. For example, an animal with a Carcase Weight EBV of +20 kg would be expected to produce progeny that have heavier slaughtered carcases at 650 days of age than an animal with a Carcase Weight EBV of +10 kg. Eye Muscle Area EBV The Eye Muscle Area (EMA) EBV provides an estimate of genetic differences between animals in eye muscle area at the 12/13th rib site in a 300 kg steer carcase. Larger, more positive EMA EBVs (measured in cm2) are generally more favourable.

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Rib and Rump Fat EBV Rib and Rump Fat EBVs are both measured in millimetres (mm) and are estimates of the genetic differences in fat depth between animals (adjusted to a 300 kg steer carcase). Rib fat is measured at the 12/13th rib site and Rump or p8 fat is measured at the p8 rump site (see Markets and Marketing Module 2 for location of the p8 rump site). Depending on your breeding/marketing objective, you may aim for either more positive or more negative Rib and Rump Fat EBVs. Some things to keep in mind when selecting animals based on their fat EBVs are:

• More positive fat EBVs are likely to produce progeny that are fatter. • Stock with lower or more negative fat EBVs tend to be leaner and have less fat. • Market/abattoir specifications may stipulate a minimum fat depth. • Females with extremely low fat EBVs may be more difficult to get in calf. It is important for all beef producers to ask their bull suppliers to measure these traits and supply the Breedplan EBV data along with information supplied on sale bulls. Similar to growth traits, carcase traits are moderately heritable. This means genetic improvement in the herd can be made if bulls are selected objectively using EBVs.

Management Checklist for Bull Selection

• The only way to be reasonably sure bulls are fertile and structurally sound is to ensure bulls purchased have passed a Bull Breeding Soundness Examination (BBSE). • Temperament is a heritable trait, that is, it is passed onto progeny. Only consider bulls with good temperament for purchase. • BREEDPLAN Estimated Breeding Values (EBVs) are measures of a specific trait, which show the estimated genetic differences or breeding values between bulls (or dams) for that trait measured • Bulls selected for high Scrotal Size (SS) EBVs are expected on average to breed daughters with earlier puberty and shorter days to calving (DC). • The only way to tell the difference between bulls for their genetic potential or merit for growth rate is to select bulls with BREEDPLAN measured EBVs for growth. • BREEDPLAN also calculates EBVs for carcase traits. The most important of these are carcase weight, eye muscle area and rib and rump fat

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Further Information The Breeding and genetics | FutureBeef website is the primary web link for producers in northern Australia seeking bull management information. It is an access point to other websites under this topic.

Bull breeding soundness examination (BBSE)

Bull buying checklist

Workshops (run by state departments and private providers) Breeding EDGE (three days)

Breeding for profit (one day)

Bull selection (one day)

Links Veterinary Bull Breeding Soundness Evaluation (VBBSE), Australian Cattle Veterinarians

Multi-media Bull Breeding Soundness Evaluation (BBSE) - YouTube

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Weaner Management

Good weaning management is critical for breeder herd performance. Weaning reduces the nutritional needs of the breeder, improving her chances of getting back in calf again. It is particularly important in dry years when weaning is necessary for survival of the cow (or heifer) and calf.

Weaning however, means the calf is removed from a good source of nutrition - its mother’s milk. However the milk production of most breeders is low during the dry season in northern Australia, so weaning calves is necessary.

Calves, freshly weaned, have to be well managed and fed, so they remain healthy and continue to grow. With proper management and nutrition, there is no growth disadvantage of small weaned calves compared to their similar unweaned counterparts of the same age. Numerous trials and demonstrations have shown that if calves weaned at three months and older (100+ kg) are properly fed and managed, they will be as well grown as larger (150+ kg) weaners at the end of their first wet season.

Weaning also provides an opportunity for cattle to be trained and educated early in life and this has positive benefits for future handling, management and productivity. What Weight to Wean a Calf? The minimum liveweight at which calves are weaned is dependent upon the type of country, seasonal conditions and condition of the cow. For a typical northern extensive property in an average year, this weight would be 100 kg or about three months of age - provided these calves can be fed and looked after. On better country, in better seasons, the optimum weaning weight may be higher. In very dry years, it may be necessary to radical wean (less than 100 kg liveweight) for breeder survival. In northern Australia, all calves should be weaned down to 100 kg at the last muster of the year, to prevent weight loss and anoestrus (not cycling) occurring in breeders early in the wet season that immediately follows. Preparation for small weaners Adequate and appropriate weaner feed should be on the property before mustering starts. The supplements, hay, troughs, mixing and feeding out facilities and yards should be organised so that feeding can commence immediately following weaning. Time taken feeding, handling and educating weaners can be a major factor once weaning starts, so it is advisable to have the weaner feed organised in advance.

Adequate yard space is required to draft weaners into separate weight groups as necessary. Big weaners will need to be put in a separate yard from small weaners.

Once weaners come out of the yard, adequate paddock space will be required. There is usually a range in weaner size, and hence the supplements fed, so it is best to have two paddocks (if possible). The smaller the calves, the smaller the paddock should be. Weaner paddocks need to be well grassed and spelled for nutritional and animal health reasons.

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Committing to managing small weaners Once an early weaning program has been put into place it is very important to commit to it 100%. In other words, it is necessary to follow through with the correct nutrition and husbandry, on a daily basis, until the weaners are older enough and bigger enough to look after themselves in a larger paddock. At the larger paddock stage they may be 150kg or greater, have been trained to eat supplement and can be fed a urea based loose dry lick or block. Weaner Management Tips • The smaller the animal, the higher the nutritional requirement will be. It is easiest to divide calves into groups based on weight and age, for targeted supplementation. For more information on what to feed, see the Weaner Feeding section that follows. • Segregating smaller calves from larger calves and feeding separately reduces bullying by larger calves. • Once weaners have grown out of their weight category, gradually change feed to appropriate supplement over a period of a few days. • To reduce stress, have feed and water available in the yards as soon as the weaners are drafted off their mothers. • Feed a high quality ration from the first day. Hay alone is not enough for young calves. Good quality hay should be supplied that is free of weed and mould. • Do not change the amount or type of feed suddenly - ease off and on, to allow the rumen microorganisms to adapt and to reduce stress. • Ensure adequate trough space (20-30 cm/head) to prevent bullying. • Make sure all weaners are getting enough to eat – monitor intakes. • Very weak or sick calves may need to be segregated and treated as a separate ‘hospital’ group. • For improved hygiene, feed calves in feeders or troughs up off the ground. • Ensure plenty of clean water is always available, and some shade. • Very small and young calves that are weaned in winter in colder areas need to be kept clean, dry and warm. Wind breaks assembled from bales of hay may be needed if cold and windy. • Educate weaners calmly and regularly for quieter cattle in the future. Work them through the yards and on horseback if they are put in a cooler paddock. • Don’t put small weaners in a large paddock. They do get lost. They need to be checked, and they need to be shown where the water is. • Weaner paddocks should be well grassed and securely fenced and have watering points and supplement troughs that weaners are introduced to on first arrival. • If dingoes are a problem, it pays to run a few mature cows with the weaners until dingoes can be controlled.

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Feeding Weaners Supplementation is the most critical aspect of successful weaner management. Weaner age and weight will determine:

• Choice of supplement type – small weaners need extra protein. • Intake levels – how much should a small weaner eat in a day (daily intake)? The objective is that weaners gain weight. This means good quality hay and good quality supplements which meet the nutritional needs for the size of the weaner. Supplements should be available to weaners as soon as they are drafted off their mothers. Interruption to feed supply for a weaner can compromise its immune system causing an illness called coccidiosis. The best control of coccidiosis is to ensure adequate feed intake and growth.

Key points when feeding weaners:

• Weaners should have access to good quality hay in addition to the supplement while they are in the yards. • Good quality hay has a high proportion of leaf to stem, is green and sweet smelling. Hay containing legume leaf is usually more nutritious and digestible than hay made from grass alone. Hay with too much legume (as in pure lucerne hay) often causes scouring in weaners. Hay should be clean and free of mould. • If possible, feed concentrate supplements before putting the hay out, so the weaners consume the concentrate first. • Suitable protein sources for weaners include cotton seed meal and copra meal. Younger weaners may perform better on copra meal. • Feeding pellets or protein meals every third day (or twice a week) results in plenty of feed available on the day, and reduces bullying. • When reading the product label of calf meals/pellets, do not include urea in the calculation of crude protein. Young calves cannot utilise urea as their rumen is not fully developed. • Do not change the amount or type of feed suddenly. This gives the rumen microorganisms a chance to adjust. • Include Rumensin® (active ingredient monensin) in weaner rations to achieve an intake of 25 milligrams (mg)/head/day. Rumensin® may also help control a coccidiosis outbreak. Care should be exercised as over-dosing is quite toxic. Note Rumensin is toxic to horses, pigs and dogs. • Urea must be thoroughly dissolved into molasses supplements to avoid toxicity. Mechanical mixers should be used. Take particular care with granulated urea. • Calves of less than 100 kg liveweight must have continual access to concentrate supplements. • Monitor intakes of weaners to ensure adequate intakes of supplement are achieved. • Phosphorus should be included in supplements fed to weaners on phosphorus-deficient country, in both the wet season and the dry season.

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When feeding dry licks and blocks to weaners over 150 kg, the lick should supply 75 grams (g) of protein per head per day. If weaners are not eating enough, protein meal can be added to improve palatability of the lick. Proprietary mixes should be fed according to the manufacturer’s recommendations. Small Weaners and Yard Facilities Small weaners should at first be fed in the yards, in their size groups, so nutrition can be targeted to size and age. Very small weaners should be separated and put into a smaller yard and have access to good quality hay at all times. Very small weaners may need to be kept in the yards so they have continual access to feed and are protected from predators (dingoes and pigs). If the yards become very dusty, the yards will have to be watered down. However avoid too much water and mud, particularly if conditions overnight are cold. If very small early weaners are let out into a larger holding paddock there is high possibility that they may not come up for their feed and they may lie down in a corner and die.

Larger weaners can be fed in the yards, but have access to a grassed “cooler” or holding paddock. The yard feeding even if for a short period, trains the weaners to eat supplement from a trough, provides a positive experience in the yards, and primarily supplies additional nutrients necessary for growth. The weaners will also need access hay if pasture quality and quantity is insufficient in the “cooler” paddock.

Photo 6.12 Very small weaners need proper care on a daily basis

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Recommended supplements

Table 6.1 Weaner Supplements by Weaner Size to Achieve Target Growth Rates

Pasture Weight of Growth Recommended feed Suggested daily Quality weaners target intake (kg/hd/day) (kg) (kg/day) Feed Good <60 0.4 Milk replacer and 1–1.5+ Hay high quality baby calf meal or pellets (18% or 20% protein including Rumensin®.) Free access to good quality hay. Do not feed molasses Food Good 60–100 0.25+ • Calf meal or calf pellet 1–1.5+ Hay (16–18% protein) including Rumensin® • Free access at all times to good quality hay 100–150 0.25+ Protein meals, MP***, 1–1.5+ MUP; MUP*, weaner pellets or 0.5+ protein meal meals, grain mixes 150–200 0.2+ M8U**, grain mixes, 1 M8U; protein meal or pellets 0.5 protein meal Poor pasture Over 200 0.1 Protein supplements Sufficient to provide (DMD (dry licks, blocks or 75g protein/hd/day <50%, liquid supplements) CP <6%)

Moderate 100–150 0.25+ MUP, M8U, grain mixes, 1 MUP; pasture protein meal or pellets 0.5 protein meal (DMD >50%, 150–200 >0.2 MUP, M8U 1 CP 6–7%) Over 200 >0.2 MUP, M8U 1–1.5 Good pasture 100–150 0.25+ Protein meal or pellets 0.3 protein meal (DMD >55%, 150–200 >0.2 None CP >8%) Over 200 >0.2 None

Notes: * MUP = a mixture of molasses + 3% urea + 8 to 10% protein meal. ** M8U = a mixture of molasses + 8% urea (it is essential to use a mechanical mixer). *** MP = molasses + protein meal.

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Photo 6.13 Feeding Weaners

Weaner Health The secret behind maintaining healthy, small weaners is to reduce all stress. Weaning in itself is stressful and this can compromise a weaner’s immune system. This can lead to populations of coccidia, which inhabit the intestine, rapidly increasing in number and causing coccidiosis. Coccidiosis is seen as bloody or black scours, indicating there is damage to the intestine. It occurs three to five weeks after the initial onset of stress at weaning. In severe cases, calves may lose weight rapidly and die. Badly affected calves become ‘poor doers’ due to permanent damage to the intestine.

Coccidiosis can be made worse if there is additional stress from poor nutrition. The best control is to ensure adequate feed intake and growth of weaners. Interruption to feed supply can compromise the gut’s immune system precipitating coccidiosis. Management strategies to help prevent coccidiosis include:

• Supply nutritious feed to satisfy voluntary intake and nutrient requirements from day of weaning. • Include Rumensin® (active ingredient monensin) in weaner rations to achieve an intake of 25 mg/head/day. Rumensin® may also help control an outbreak. Care should be exercised as over-dosing is quite toxic. (Note small amounts in horses and dogs can be lethal). • Provide dry yards with shade and a plentiful supply of clean water. • Use troughs that the weaners can’t walk through. • Rotate weaning yards to reduce the build-up of oocytes (eggs). • Very small grassed enclosures are preferable to dirt yards.

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In calves that suffer severe and/or chronic coccidiosis, treat individually with Scourban®, a product which includes a coccidiostat, an antibiotic and anti-diarrhoeal powders.

Worms can be a problem in certain situations and particularly, if calves are weakened by poor management and nutrition. Ill thrift, condition loss, rough coats and green scours are some of the signs of worm burdens. Poor weight gains can be an indicator of sub clinical burdens. Diagnosis by way of worm egg counts is recommended. Seek advice for treatment and use weaner paddocks which have been spelled.

Inspect weaners regularly for lice and ticks, and treat accordingly. Pasture spelling of weaner paddocks will assist with tick control.

‘5 in 1’ vaccine is used to prevent the major clostridial diseases in cattle. Vaccination for clostridial diseases should occur at branding and weaning (assuming that these aren’t more than six weeks apart) for maximum protection. Weaners which have not received a 5 in 1 vaccination at branding should be vaccinated the day they enter the yards. It is not recommended to give more than two vaccines at once. Tick fever vaccination at the same time as 5 in 1 is not recommended. Weaners should not be vaccinated for tick fever just prior to trucking as it can induce a vaccine-induced tick fever. A single shot botulism vaccination for juvenile cattle is recommended at branding, or at weaning if missed at branding.

Hygiene is very important when branding and castrating weaners. Ear marking pliers, castrating knives and dehorning equipment should be placed in disinfectant at branding time, in between usage on each weaner. For health reasons do not brand, earmark, castrate or dehorn calves until just prior to leaving the yards. For more information refer to Husbandry, Health and Welfare Module 7.

Management Checklist for Weaner Management

• Good weaning practices improve reproductive performance of the breeder herd and should not disadvantage growth rates of weaners. • Reduce the stress on weaners by providing adequate nutrition and segregating smaller calves from larger calves to prevent bullying. Segregation also assists to ‘target supplement’ different size weaners. • Calm regular education sets calves up for less stress throughout their lives and ensures long term ease of handling. • Pay attention to weaner health and treat strategically, based on expert advice.

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Further Information on Weaner Management A new MLA information booklet, Weaner management in northern beef herds, is recommended reading. The booklet provides further information on managing weaners and also includes six case studies from different districts of north Australia. The booklet can be obtained from: Publications | Meat & Livestock Australia or by phoning MLA on 1800 023 100.

Weaner management, feeding and education: Husbandry | FutureBeef website

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Supplementation

Supplementation should be used to enhance the good management practices already in place. Good grazing land management is the first priority, followed by effective breeder management and weaning of calves. Weaning and where possible, mating management and breeder segregation are necessary to manage the nutritional status of breeding cows. This assists in preventing weight loss, increasing her chances of cycling while lactating, and reducing mortalities.

Supplements are needed to correct nutritional deficiencies, such as phosphorus deficiencies, and to supplement young weaners so they grow well (discussed in the Weaner Management section). Dry season supplements are required when feed quality is poor in the dry season. This is particularly the case for lactating breeders.

These nutritional deficiencies exist because northern Australia has poor quality pastures. In the long dry seasons, pasture protein and energy levels decline rapidly, often to below maintenance requirements. Cattle are unable to physically consume and digest enough of this poor quality pasture to meet maintenance requirements, let alone production requirements such as growth and reproduction. The result is poor breeder performance and low annual liveweight gain in young cattle and growing steers. This is particularly evident on soil types that are highly phosphorous-deficient.

Supplementation for older steers should only be required during unusually long extended dry seasons, or where phosphorus deficiency is acute. Planning a Supplementary Feeding Program To carry out a cost effective supplementation program it is important to know:

• Which cattle have the greatest needs for supplementation? • What type of supplement is required? • What is the best time to feed to be most cost effective? • How much needs to be fed and how often? • What will the cost be? Which groups of cattle have the greatest needs for supplementation? The cattle that have greatest needs are those whose performance (growth and/or reproduction) will be limited by nutritional shortfalls in the pasture diet. Work out which cattle will have their performance most affected if they are not supplemented.

Firstly work out what level of production or performance is required from the group of cattle on your property? For example is it:

• lactation and maintenance of body condition, such as for wet breeders in the dry season • growth in weaners, steers and heifers, and what level of growth – for example 0.3 kg per day or 0.5 kg per day • reproduction (for example, conception rate) from heifers and breeders in the wet season.

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Is the pasture supplying enough nutrients? What is the shortfall? What is the nutritional shortfall of poor quality feed, such as in the late dry season? Is the country phosphorus-deficient and how bad is it?

There are tools available to help you determine these answers. It is best to seek advice from a suitably qualified extension officer. Then you should be able to list the cattle that have the greatest needs for supplements. Determining the type of supplement Cost effective supplements supply the primary limiting nutrient first and foremost. The primary limiting nutrient is the nutrient which is most limiting to animal performance; for example, phosphorus in the wet season. Supply of other nutrients will have no effect until the primary limiting nutrient is corrected. Dry Season nutritional shortfalls • Protein is usually the primary limiting nutrient. • Energy may be limiting also. • Phosphorus may be limiting on grossly deficient land types. In the dry season, protein levels in pasture drop off as the dry season progresses and protein becomes the first limiting nutrient. Energy becomes limiting when there isn’t enough feed or the feed is of very low quality. When the feed is of low quality it becomes indigestible and provides low amounts of energy in the diet. Compounding this is the resulting low intakes of pasture. So not only is diet quantity (amount of feed) important; so is diet quality. Wet Season nutritional shortfalls • Phosphorus (P) is usually the primary limiting nutrient on P-deficient land types. • Salt and sulphur deficiencies occur on basalt country. • Other mineral deficiencies are rare, but some do occur on coastal country. During the wet season, phosphorus becomes the primary limiting nutrient on phosphorus-deficient country. Therefore responses to phosphorus supplementation will be greater during the wet season. For more information see the following section on Phosphorus Supplementation.

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Figure 6.4 Primary Limiting Nutrient – Leaking Barrel Concept

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Selecting a supplement Once the nutrients that are limiting production are determined, a supplement can be selected to meet these requirements. To do this, it may be best to categorise supplements into the nutrients they provide as shown in the following table.

Table 6.2 Supplements Grouped According to Primary Nutrient Supplied

Protein only Protein (with Energy (with Energy only Protein and minerals some energy) some protein) Urea dry licks Protein meals Grain Molasses Commercial Urea blocks • Copra • Blocks • Cottonseed • Loose licks • Soybean • Liquids • Lupins • Phosphorous blocks

Once supplements have been grouped then a selection can be made considering:

• cost • availability • palatability • ease of feeding • preparation required • equipment and skill required to feed. What is the best time to feed to be most cost effective? The best time to feed a supplement, in general, is when the most response to the supplement can be expected. For example:

• The best time to feed phosphorus is in the wet season – when phosphorous is most limiting. • The best time to feed urea-based dry season licks is in the dry season when protein and energy levels of the pasture have declined, and protein is most limiting; that is, protein is the primary limiting nutrient. However when it comes to feeding weaners, the best time to feed them is as soon as they are removed from their mothers. How much supplement needs to be fed and how often? The amount of supplement depends on the type of supplement and which cattle are being fed. This is discussed further in the following sections on Dry Season Supplementation and Phosphorus Supplementation. As mentioned in the Weaner Management section, weaners have special requirements for how much to feed and how often, which is dependent upon their size and the type of supplement fed.

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What will the cost be? The simplest method to estimate the cost of a supplementation program is to:

• Determine how many cattle are in the target group that need to be fed. • Determine how much supplement needs to be fed on a daily basis (in grams per day) and multiply this by the number of cattle being fed. This will give a total daily mob amount in grams (which can then be divided by 1000 to give kg). • Determine for how long the cattle will need to be fed (weeks or months) and multiply this by the total mob amount required per day to give a total amount for the feeding period. This should result in a tonnage amount (divide by 1000 to give tonnes). • Multiply the total tonnage by the cost per tonne, including freight costs.

Management Checklist for Planning a Supplementary Feeding Program

• Work out which cattle need supplementation most; that is, which cattle will have their performance most affected if they are not supplemented. • Work out the type of supplement required for each class of cattle that requires supplementation. • Work out when is the best time to feed and for how long. • Work out how much needs to be fed and how often, and from this the cost can be calculated.

For Further Information The main information source for producers is the nutrition page on the Nutrition | FutureBeef website

The following website articles are relevant:

Planning and managing a supplementary feeding program

Assessing pasture diet quality (NIRS)

Nutrient requirements of beef cattle

Nutrient composition of feeds

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For Further Information (cont) Hay and silage analyses – what do they mean?

Product labels – what are they saying?

Costing supplements

Compensatory growth

Water requirements

Northern Territory specific for minerals Mineral status of coastal cattle in the NT website page

Publications Publications about nutrition

Other useful links Livestock feed costs and nutritive value, NSW Department of Primary Industries

Assessing stock feed additives and mineral supplements, NSW Department of Primary Industries

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Dry Season Supplementation As the dry season progresses, the pasture’s nutritional value deteriorates. Protein content declines as the grass loses its green colour. As it loses leaf and becomes ‘stalky’ it becomes less digestible and has a lower energy value. Protein is the initial limiting nutrient but later in the dry season energy often becomes limiting. Supplying protein in dry season licks As protein is usually the primary limiting nutrient in very dry feed, it is usually the primary ingredient in dry season licks. Providing a small amount of protein (180 g per day for dry pregnant breeders, or 75 g per day for weaners) should help reduce weight loss.

Urea is the cheapest source of protein available. Urea contains protein, as nitrogen. The nitrogen in urea actually ‘feeds’ micro-organisms which are located in the rumen in cattle and these become protein for the beast when they die. This actually helps to increase intakes of dry standing feed. The increase feed intake in turn provides additional energy, protein and minerals.

Protein meals such as cotton seed meal, lupin meal and copra meal provide a source of true protein or bypass protein; that is, protein which is digested in the intestine and provides a higher quality source of protein. Protein meals also supply some energy to the rumen microbes and, if fed in large enough quantities, can supply amounts of energy to the animal. Dry season supplements – ingredients and quantities The supplement used, whether a commercial protein block or loose lick, or a custom made loose lick, should be nutritionally balanced and cost effective. Based on the required intake, a balanced lick will provide adequate quantities of each nutrient required, without costly excess of one or the other.

The safest dry licks contain between 25% and 30% by weight of urea. The recommended intakes for urea are 50–60 g per head/day for breeders and 30 g per head/day for young growing cattle; for example, weaners greater than 150 kg live weight. Licks with low percentages of urea (less than 25%) are less cost effective than licks with 25% to 30% urea. On the other hand, licks with high levels of urea (greater than 30%) are dangerous. A higher than recommended intake of urea is a complete waste of money, as cattle simply cannot utilise the high amount.

Sulphur is also required by the rumen microorganisms to form microbial protein, along with nitrogen from the urea. When urea (nitrogen) is fed in a dry mix with salt there is insufficient sulphur, so sulphur also needs to be added at the right amount. Sulphur can be supplied by sulphate of ammonia (Gran Am) or elemental sulphur. Gran Am is most commonly used as it supplies additional protein. However Gran Am should be used at the correct ratio and not at high levels to control intakes (as is sometimes recommended by feed merchants).

Protein meals are used in small quantities in some urea-based supplements, and are usually a requirement of weaner supplements. However in typical dry season licks, the primary effect of using protein meals is to enhance palatability and help decrease the moisture content of the lick.

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Where larger quantities (greater than 20%) are used, caution should be exercised as the high palatability can lead to urea poisoning. Protein meal should be added gradually to dry licks, to improve palatability and hence intakes, if required. The level that can be reached without being dangerous is situation specific. Remember urea will kill cattle if it is consumed too quickly.

Salt is required either as an attractant or deterrent, depending on land type and how salty it is. The lower the percentage of salt in a dry lick, the more cost effective the lick is. Trace element deficiencies are rare in northern Australia, accept for some coastal areas. Seek a diagnosis before adding them to your lick. Do not use lime as ‘filler’. How much do cattle need to eat? The following table gives an example of the sort of deficit that may occur during the dry season. This will depend on how dry it is and the type of country.

Table 6.3 Typical Dry Season Nutritional Deficits – Protein, Energy & Phosphorus

Breeder Dry season deficit Phosphorus Deficit Class in the “dry” Protein Energy

(grams/day) (MJME/day) (P deficit country) (grams P/day) Dry 180 46 4 Pregnant 180–200 78 4 Lactating 480 80 7

A 30% urea supplement with an intake of 200 g per day supplies 172 g of protein from urea. Remember, cattle still have to eat grass and will still be getting protein from the grass, even if the amounts are low. For most salt and urea dry licks, the minimum recommended daily intake is 180 g per head. It pays to calculate and monitor the daily intakes, as best you can. The palatability of the lick will need to be improved if daily intakes are below 150 g. Similarly, if intakes are too high and considered too costly, palatability will need to be reduced.

Correcting protein deficiencies for lactating cows in the dry season is much more difficult, as shown by the example below. Urea dry licks may not be able to supply enough protein to correct the shortfall in protein needed, due to the high requirements of lactation.

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Figure 6.5 Typical Dry Season Protein Shortage for a Lactating Cow

Dry Season Protein Shortages Example for lactating cow: Requirement - 800 grams Diet supplies - 320 grams (5% CP & Dry Matter Intake 6.4kg) Shortfall - 480 grams of proten 30% Urea Supp @ 200g/day supplies 172 grams of protein

When do you need to start feeding out lick? Managers generally prefer to commence feeding before any weight loss occurs. Feeding supplement is expensive so the best time to start is when there is a response to the urea. Generally this is when the feed has dried off and completely lost its green colour. Another sign is when the dung becomes hard and dry. However, sometimes these methods can be misleading and feeding is commenced too soon or too late.

The best way to determine when to feed is through NIRS (near infrared spectroscopy) analysis of a dung sample to determine the crude protein and energy value of the pasture. If the crude protein in the dung is less than 6%, then there is a good chance that weight loss has already commenced or will commence shortly. Testing is normally undertaken from April to July, depending on the season. Seek help and advice from a suitably qualified beef extension officer to use NIRS dung sampling. Getting stock started with loose dry mixed licks It is safest to satisfy any cravings, by first feeding out salt only. After a couple of weeks, put out the supplement with the final level of urea (say 30% urea) - before the salt source runs out. This tends to be safer than building up the level of urea in the supplement, particularly if protein meals are included. The bitterness of the initial, higher level of urea, controls intakes of the lick and reduces the risk of poisoning. Handy hints with loose dry mixed licks • Never let the supplement run out. If this is unavoidable, wait until cattle have gone off water and so they then come back to the lick with a belly full of feed. This may help to prevent gorging and urea deaths. • Covered troughs are the most desirable, as rain will dissolve urea and cause deaths. Otherwise make sure troughs are sloping slightly and have large holes in the bottom to facilitate drainage. • Use granulated urea in loose dry licks, as it dissolves less readily than prilled urea. • Avoid using wet or lumpy salt. • If you see an animal with potential urea poisoning - that is bloated and sunken in the eyes - pour some vinegar down its throat; you may be able to save it. • Cattle supplemented with urea will eat 20–30% more dry feed therefore be conscious of the possibility of overstocking.

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Manipulating intakes with loose dry licks To be nutritionally effective, minimum daily intakes, or requirements, must be met. On the other hand, unnecessarily high intakes are costly. The level and type of protein meal, the source of sulphur and phosphorus, the level of urea, the level of salt and whether or not molasses is used, can all be manipulated to control intakes. Sulphate of Ammonia (Gran Am) tends to be less palatable than elemental Sulphur. Commercial products versus custom mixing Commercial products, usually in the block form, are often a convenient and practical way of feeding. However they are sometimes more expensive and the composition cannot be altered if the cattle don’t eat enough. Custom mixing is convenient and allows alteration of the composition to control intakes.

Management Checklist for Dry Season Supplementation

• Urea can kill cattle if consumed too quickly. • Urea must always be fed with sulphur at the correct rate. • Identify and satisfy any depraved appetites or cravings cattle may have, usually with salt, before feeding the urea supplement. • NIRS analysis of a dung sample will provide more accurate information for when supplementation is likely to be effective. • Effective urea supplementation, generally results in a reduction in the rate of weight loss; it seldom results in weight gain. • For best animal results, supplementation should commence before animals lose too much weight. • All loose mixed urea supplements, should be fed in troughs with good drainage. • Monitor intakes, to see if cattle are eating enough.

Further Information on Dry Season Supplementation Dry season supplementation articles are located on Nutrition | FutureBeef Website

Protein and urea

Energy supplements, including molasses supplementation

Crisis feeding

Managing cattle in dry conditions/drought

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Phosphorus Supplementation The loss of production and disease effects resulting from phosphorus (P) deficiency in beef cattle in northern Australia is well documented. The economic benefits of phosphorus supplementation are also well documented.

Seventy percent of northern Australia is considered to be phosphorus-deficient. The map below shows that the majority of Indigenous-owned properties in northern Australia are located in areas which are ‘acutely’ phosphorus-deficient country. This indicates that without phosphorus supplementation significant production losses will occur. Figure 6.6 Map Showing Acute, Marginal and Adequate Phosphorus Level

What type of country is phosphorus-deficient? Types of phosphorus-deficient country include:

• red and yellow earths with eucalyptus • teatree and spinifex country • deep, sandy, poorly fertile soils • northern black soil downs such as the lower and upper Gulf country.

Soil maps show P-deficient soils. Soil P levels greater than 8 mg per kg or 8 parts per million (ppm) are considered adequate. Marginal phosphorus deficiency occurs where soil phosphorus levels are 6 to 8 ppm. Where soil phosphorus levels are 5 ppm or less these areas are regarded as deficient or acutely deficient.

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What are the consequences of not feeding phosphorus? The consequence of not supplementing cattle with phosphorus in P-deficient areas is significant production losses and reduced profitability.

It is estimated that phosphorus-deficiency may cause economic losses in the order of $50.00 or more per Adult Equivalent1. Despite this, some producers in northern Australia do not go to the effort of feeding phosphorus supplements during the wet season. The opportunity for significantly improved productivity is lost and so are the financial rewards. How does phosphorus deficiency cause loss of production? Cattle need phosphorus for nearly every vital function of the body. Some of the more obvious signs of phosphorus deficiency are easily recognized, such as:

• stiffened gait or peg leg and distorted growth • bone chewing which increases the risk of botulism • depraved appetite (pica) which includes chewing of rocks, dirt, wood, bones or hair (pica will also occur if an animal is sodium or potassium-deficient) • increased mortality • bone breakages due to bone fragility. The less obvious signs of phosphorus-deficiency which have serious productivity and economic consequences are:

• reduced feed intake and inefficient feed utilisation – P-deficient animals eat less pasture and this depresses productivity • reduced growth rates – young animals need P for growing bones and muscle • reduced milk production – wet cows need P to feed their calves enough milk • reduced fertility – heifers and cows need P to get back in calf and for the growing foetus. To see cattle chewing bones early in the year is not an uncommon sight in northern Australia. This may indicate a phosphorus deficiency. The benefits of phosphorus supplementation • better growth rates and fatter cattle • more calves and earlier calves • elimination of clinical symptoms and fewer losses • less need for dry season lick • improved gross margins.

1 An Adult Equivalent is a 450 kg dry beast. Refer to Grazing Land Management Module 5.

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When to feed phosphorus? The best time to feed phosphorus to get an economical response is during the wet season.This is when phosphorus becomes the primary limiting nutrient. During the wet season, the feed is green and growing, energy and protein levels are at their peak. However, on phosphorus-deficient (or marginally-deficient) country, phosphorus is much lower relative to energy and protein.

Supplementing phosphorus during the wet season provides the animal with the phosphorus it requires for production - growth, pregnancy and lactation - and also allows animals to utilise all of the protein and energy in the diet. If sufficient phosphorus is fed, phosphorus will be restored to the bone which is critical to increasing phosphorus reserves in the body, for the times when the animal is consuming an inadequate amount to meet its requirements.

Early in the dry season, protein is usually the first most limiting nutrient, followed by energy later in the dry season. Unless additional protein and energy are supplemented to the animal in the dry season, there is no benefit in supplementing a high level of phosphorus. Some P (2-4%) is usually included in dry season protein supplements for cattle on phosphorus-deficient country. What phosphorus supplement to feed? Phosphorus is generally contained in licks and blocks, as calcium phosphate (contains 21% elemental P). Whether using blocks or licks it is important to make sure cattle are eating enough of the block or lick, to ensure there is adequate intake of actual phosphorus. This means that it may be necessary to experiment with different products to see what your cattle prefer. However keep in mind the relative costs of different products; the cost per unit of phosphorus is important.

- Dry Loose Licks Dry loose mixes usually contain:

• phosphorus (as calcium phosphate – 21% P) • salt • sulphate of ammonia (Gran Am) if urea is included at a low percentage (say 5%).

Small quantities of urea in these licks may be required at the end of the wet season on very poor soil types. Do not add lime as it may exacerbate P deficiency. Higher concentration P licks are more cost effective. However, P licks often need to contain other ingredients to make the lick more palatable.

- Blocks Blocks can be more expensive than custom made loose licks. However, on some properties that lack equipment, blocks may be more easily distributed than one tonne bags of loose P licks.

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Getting Phosphorus out in the wet season Getting phosphorus out to cattle in the wet season is a challenge for all producers; however the rewards in improved production and profit are worth the effort. Some producers put out a large quantity in the very late dry season. This is better than not putting any out at all. Others store the P lick at places that are sometimes accessible during the wet, for example under sheds or in shipping containers. They then distribute it from there on a 4 wheeler bike.

Loose P lick can be fed to cattle in:

• uncovered troughs such as plastic troughs, larger tyres, hollowed-out tree trunks or half tonne bulk bags • covered troughs under purpose built shelters. Place the lick away from watering points at accessible sites. Which cattle have the highest requirements for Phosphorus? The cattle that have the highest P requirements are:

• young growing cattle including weaners • heifers that are growing and reproducing at the same time • breeders that are late pregnant • breeders that are wet (lactating).

Phosphorus requirements for different classes of cattle also depend on how deficient the country is. To achieve an economic benefit, supplement the following cattle for various types of country:

• acutely deficient country (less than 5 ppm P) - feed all stock • deficient country (5-6 ppm P): »» feed first and second calf heifers during late pregnancy and lactation »» feed mature cows during lactation »» feed all steers and growing heifers during the growing period • marginal country (6-8 ppm P) - feed first and second calf heifers. How much supplement to feed? As a rule, the higher the concentration or percentage of P in the actual lick, the smaller the required lick intake.

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Table 6.4 Phosphorus Intakes Needed in Deficient Areas

P intakes (grams P/hd/day) % P in the lick Required lick intake (g/head/day) 6 10 60 6 15 43

Table 6.5 Phosphorus Intakes Needed in Acutely Deficient Areas

P intakes (grams P/hd/day) % P in the lick Required lick intake (g/head/day) 10 10 100 10 15 66

(Source: Phosphorus management of beef cattle in northern Australia, MLA publication, Oct 2012). Intakes of supplements should be monitored to ensure cattle are satisfying their requirements. On the other hand, it is costly if cattle eat more than they require. Economical feeding To commence phosphorus supplementation, there needs to be an initial outlay of expenditure and it may take 12 months or more before the economic benefits are seen; however producers on phosphorus‑deficient country cannot afford not to feed phosphorus. The following strategies will help keep costs down:

• Reduce the need to supplement through segregation of breeders and heifers. • Dry cows have a lower requirement for phosphorus than late pregnant and/or wet breeders. Good management practices such as early weaning will therefore reduce the need to supplement lactating breeders in the dry season. • Monitor intakes, and adjust or change the supplement if necessary.

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Management Checklist for Phosphorus Supplementation

• The best time to feed phosphorus (P) to get an economical response is during the wet season. • Higher concentration P licks are more cost effective; however P licks often need to contain other ingredients to make the lick more palatable. • Intakes of supplements should be monitored to ensure cattle are satisfying their requirements. • Feed cattle that have the highest requirements. • For maximum benefit, phosphorus supplementation needs to be used in conjunction with good grazing management and early weaning.

Further Information on Phosphorus and Mineral Supplementation The key information for beef producers in northern Australia is the MLA publication: Phosphorus management of beef cattle in northern Australia | Meat & Livestock Australia

The following articles on the Nutrition | FutureBeef website

Phosphorus

Minerals and vitamins

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Hormonal Growth Promotants Hormonal growth promotants (HGPs) are commonly used in northern pasture production systems to increase weight gain and reduce age of turnoff. Cattle implanted with a HGP grow faster than non-implanted animals, when good feed is available; that is, during the wet season. Grassfed cattle can reliably gain about an extra 0.1 kg/day while on good pasture, but the response is less during the dry season. The action of hormones in HGPs is to cause accelerated growth and improved feed conversion efficiency. The active compounds in HGPs are synthetically produced derivatives of naturally occurring female and male hormones. How long does the effect of the HGP last? HGPs vary in how long their effect lasts. This is an important consideration when choosing a product for a class of animal and a production or marketing situation. In the case of some products, the active period is included in the name. For example, Compudose 400® has an active period of 400 days. Basic Principles of Using HGPs • The liveweight gain response to HGPs is determined by the quality of the diet cattle are consuming at the time. The greatest economic response occurs when cattle are gaining weight rapidly. Cattle losing weight or just maintaining weight will not respond to the HGP. • For the best growth response, an implant program should be continued right through until slaughter once the program has commenced. • Long payout HGPs are most suitable for cattle that cannot be easily mustered for implantation. • To maximise HGP response it is important to address other cattle health issues, such as parasite infections, which may arise. • Cattle treated with HGPs are eligible for MSA grading. • Some export (European Union) and domestic markets will not take HGP- treated cattle. • The back of the middle third of the ear is the correct implant insertion site. If the implant is inserted too close to the base of the ear there will be more rapid absorption of the active compounds and the implants are likely to pay-out at a more rapid rate. This may lead to a greater incidence of problems with some products, such as prolapsed pizzles. • Read the labels to ensure recommendations are followed. This includes safe ages at which the implants can be used. HGPs are not registered for use in breeding females and are not recommended for breeding females. • Information on the legal requirements for HGP use can be found on state departmental websites as follows: »» Biosecurity Queensland »» Western Australia »» Northern Territory

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Rules for Beef Producers Using HGPs HGP users must be registered. When purchasing the HGPs you will be asked to sign a declaration form which is then registered through the Australian Pesticides and Veterinary Medicines Authority (APVMA).

The HGP must be inserted according to instructions and each animal implanted must be identified with a HGP earmark (triangle punch) in the opposite (off-side) ear.

When these animals are sold, the fact that the animals have been implanted with HGP should be recorded on the National Vendor Declaration form (NVD).

Case Study Example: HGP Usage on Warrigundu Station

Hormonal growth promotants (HGPs) are used in steers on Warrigundu.

Steers are implanted with Compudose 400® at weaning. These steers are then transferred to Gunbalanya, Arnhem Land, where the ILC has entered into a grazing licence. The 400 day ‘pay out’ period of the HGP covers the growing period of these steers while they are at Gunbalanya.

Management Checklist for Using HGPs

• HGPs are most effective when feed quality is high so time their implantation accordingly; that is, make sure cattle are implanted so that HGP promotes extra growth in the wet season. • Once an implant program has started, it should be continued until slaughter.

Further Information on HGPs ‘Hormone growth promotants and beef production: a best practice guide’ on web page is a free Meat and Livestock Australia booklet. This provides further information on the role of implants, and how best to apply them. Hardcopies can be obtained from Meat and Livestock Australia [email protected], phone 1800 023 100.

Summary details on live weight gain and carcass responses to HGPs, are in the Nutrition | FutureBeef website article: Hormonal growth promotants – growth and carcase responses

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Workshops to Attend for this module

Breeding EDGE (through Futurebeef and private providers - contact MLA Contact | Meat & Livestock Australia or phone 1800 023100).

Nutrition EDGE (through Futurebeef and private providers - contact MLA Contact | Meat & Livestock Australia or phone 1800 023100).

Pregnancy testing (through the Australian Agricultural Colleges Corporation and private providers)

Reproduction and genetics workshops | FutureBeef

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Sources of Information Used in this Module Publications | Meat and Livestock Australia

FutureBeef

Beef Cattle-Department of Primary Industry and Fisheries-Primary Industry

Department of Agriculture and Food - Beef Cattle (WA)

Main website used

Breeding and genetics | FutureBeef

Husbandry | FutureBeef

Heifer management in northern beef herds. Meal and Livestock Australia. March 2012.

Weaner management in northern beef herds. Meal and Livestock Australia. March 2012.

Phosphorus management of beef cattle in northern Australia. Meal and Livestock Australia. October 2012.

Hormone growth promotants and beef production – a best practice guide. Meal and Livestock Australia. February 2011.

MLA EDGEnetwork®

Breeding Edge manual

Nutrition Edge manual

Cattle and land management best practice in the Top End region 2011. Northern Territory Government Department of Resources.

NWQ Beef Extension Notes. Felicity Hill and other staff. Department of Primary Industries. 2000

Felicity Hamlyn-Hill – author’s own written extension material and training notes.

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module seven husbandry, health and welfare

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 7husbandry, health and welfare Contents

Introduction 3 Husbandry 4 List of Tables Branding 5 Table 7.1 R ecommended Loading Densities of Adult Cattle Dehorning 7 for Road Transport 42 Castration 11 List of Figures Spaying 14 Figure 7.1 A natomy of a Health 15 Horn and Sinuses 7 Healthy Cattle, More Income 15 Figure 7.2 Co rrect and Incorrect Diagnosing Disease and Deficiencies 15 Orientation of a Vaccination Prevention - Vaccines and Needle 18 Vaccination Programs 17 List of Photos Reproductive Diseases 20 Cover Photo - Grazing cattle Botulism 26 Photo 7.1 B lue Hot Brand – Three Day Sickness (Bovine Correct Temperature 5 Ephemeral Fever) 28 Photo 7.2 R ed Hot Brand – Too Hot! 6 Clostridial Diseases such as Tetanus 30 Photo 7.3 D ehorning Knife 8 Coccidiosis 32 Photo 7.4 C up Dehorners 9 Tick Fever 33 Photo 7.5 Castration Photos 12 Worms 34 Photo 7.6 A ‘Normal’ PI Yearling 23 Other Diseases of Cattle 35 Photo 7.7 W ell fed cattle 37 Welfare 37 Photo 7.8 W eak Animal - Animal Handling 38 Not Fit to Load 43 Loading and Transport (is it fit to load?) 41 Photo 7.9 Exam ple of Cattle Live Export (is it fit to export?) 44 which are Emaciated Extended Dry Seasons and Drought 46 or Very Thin 45 Sources of Information Photo 7.10 Exam ple of Cattle which are Emaciated or Very Thin 45 Used in this Module 49 Photo 7.11 Exam ple of Cattle with Sufficient Body Condition for Live Export 45 Photo 7.12 M oving drought affected cattle 49

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2 MODULE 7 husbandry, health and welfare

Introduction

Husbandry, health and welfare are the three key sections covered in Module 7. These are critical components of successful management of a profitable beef enterprise. There are also legal requirements and obligations in respect to certain aspects of husbandry, health and welfare. Property managers need to be aware of these requirements and modify their management accordingly. Husbandry This section summarises best practice husbandry for common procedures such as branding, dehorning and castration. Best practice husbandry procedures are essential in meeting animal welfare responsibilities and a ‘duty of care’ in the prevention of infection, disease or unnecessary injury that could lead to animal stress, reduced production and reduced income.

While the husbandry descriptions in this section are quite detailed, it is suggested that beginners and learners be trained first in a practical ‘hands on’ manner by experienced operators and trainers. An example of such training is that provided by Roy Wilson at Burks Park training facility, Halls Creek, WA. Health Health and disease problems can significantly affect a beef business and its annual profit, particularly in the event of mortalities, reproductive loss, poor growth and poor fertility. Healthy cattle produce more calves and more beef, plus there are fewer losses due to health and disease problems.

Disease control and disease prevention are important aspects of herd management. Preventative health management is relatively cheap compared with other costs, and prevention is a sound investment for some key diseases described in this manual. Welfare Animal welfare is essential for sustainable and profitable cattle production. It is also a legal responsibility. People responsible for cattle welfare are all those who handle or are in charge of cattle throughout the supply chain, and include:

• owners • representatives of owners • property staff • contractors • transport workers • saleyard and abattoir staff • spelling establishment operators • livestock exporters • abattoir workers.

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Husbandry This section of Module 7 summarises best practice husbandry for common procedures such as branding, dehorning and castration. It is strongly recommended that owners, managers and head stockmen also read: ‘A guide to best practice husbandry in beef cattle – branding, castrating and dehorning’, a free MLA publication available at Publications | Meat & Livestock Australia or from your local beef extension officer. The information in this section has been adapted from this publication and state departmental sources. Castration, dehorning, spaying, and to a lesser extent branding, are surgical procedures and produce wounds. Animals heal faster from surgery if they are well hydrated, not hot and not subject to stress prior to these procedures. It is important to be very hygienic and follow these recommendations, which are based on the principles of veterinary surgery:

• Muster cattle calmly using low stress stock handling methods. • Allow cattle to rest in the yards or in ‘cooler paddocks’, and provide clean fresh water after mustering and before handling and husbandry procedures. • Brand, castrate and dehorn during the coolest part of the day if possible. Hot animals bleed more. • The most invasive procedures should be done last. Vaccinate first, then earmark, then brand, then castrate, then dehorn. • Minimise the time that unweaned calves are separated from their mothers. • Minimise the time that cattle are off feed and water during handling. • Keep the dust to a minimum by dampening down the working area. • Do NOT dehorn, castrate, spay or brand if it is raining, even if it is just drizzling rain. • Treat cattle with an insect control agent before surgery, and ensure the animal is dry when surgery is performed. • If not previously vaccinated with 5-in-1®, provide the first injection during the procedure to prevent deaths due to tetanus. • Use well trained staff to perform procedures in a correct and timely manner. • Stress with procedures increases with age — the younger the animal the better. • Wash hands in one bucket and disinfect hands in another bucket. • After each animal, clean and place instruments in an antiseptic solution such as Hibitane®. • Ensure the surgical site is free of contamination, especially faeces. Swab with antiseptic, if necessary. • After procedures, reunite cows and calves, and release cattle into a holding paddock with feed and water. • Handle cattle quietly and calmly and avoid walking or trucking cattle large distances following surgical procedures. • Inspect cattle daily and treat any that may be unwell or have complications (which should be avoided in the first place by following these recommendations). 4 back to top MODULE 7 husbandry, health and welfare

Branding Branding and earmarking are permanent animal identification practices, and are a legal requirement in accordance with the respective State and Territory Livestock Acts. In northern Australia, branding and earmarking are usually the only practical means of identifying ownership of livestock. However, from an animal welfare perspective, these are not the preferred methods of identification (as stated in the MLA Husbandry best practice booklet).

Each state stipulates requirements for size and positioning of brands, ages of animals which can be branded, and lodgement of annual brands returns (for more information see Module 4, Property Management). When to brand Branding calves as young as possible is recommended - two to six months old is best. Very young calves (one month or less) are often too small for the relative size of the branding iron. Most properties have two sizes of brands — a smaller branding iron for young calves and a larger branding iron for older cattle.

Adequate restraint is necessary for both older and younger cattle. Suitable restraints are a calf cradle for calves and a squeeze crush and head bail for older cattle. Hot iron branding Hot iron branding is the most common type of branding used on cattle in northern Australia. Freeze branding is usually only used for horses.

To reduce the pain to the animal, the branding iron must be held firmly to Photo 7.1 Blue Hot Brand – Correct Temperature the hide for the shortest amount of time, ideally two to three seconds. To produce a desirable hide brand, the branding iron must be at the right temperature when applied:

• ‘Blue hot’ irons are at the ideal temperature. • ‘Black hot’ irons are not hot enough. • ‘Red hot’ irons are too hot and will result in hide damage.

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Photo 7.2 Red Hot Brand – Too Hot!

Source: MLA and Beef CRC

The brand should appear as a light tan colour on the hide.

Do NOT brand wet animals. When the brand is applied to wet hair the water on the animal will boil. This results in a ‘smudged brand’ and a large painful burnt area.

Management Checklist for Branding Cattle

• Ensure conditions are suitable for surgery by following the suggested recommendations. • Branding calves as young as possible is recommended - two to six months old is best. • Good restraint is essential – use a cradle for calves and a squeeze crush for older cattle. • Ensure branding irons are well maintained and the heating equipment is adequate to reach and hold the required temperature. • Hot branding irons must be at the correct temperature, that is ‘blue hot’, when applied. • Never brand wet cattle, or very weak and poor cattle.

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Dehorning Dehorning is a labour-intensive, skilled operation with important animal welfare implications. For those properties that are not yet breeding poll cattle, dehorning is a necessary animal husbandry procedure. In contrast to hornless cattle, horned or tipped cattle have the following disadvantages:

• can cause injury to other cattle especially in yards and when in transport • can cause significant damage to hides and carcase quality • cause more damage to infrastructure on average • need more space during transport • are harder to handle in yards and crushes and can be more aggressive • are potentially more hazardous to people and other animals. How does a horn grow and how does this affect dehorning? The horn bud starts to form during the first two months of the calf ’s life. During this time the horn bud is free floating in the skin layer above the skull. After about two months, the horn bud attaches to the skull, and the horn starts to grow from the horn forming tissue in the horn bud. Where possible, calves should be dehorned before attachment of the horn bud to the skull occurs. This significantly reduces trauma associated with the dehorning operation, and also dehorning at this time is easier.

The horn grows on a bony extension of the skull. The horn grows from the skin around its base, just as the wall of the hoof grows down from the skin of the coronet. Therefore to ensure no horn regrowth, it is essential to cut away 1 cm of skin around the base of the horn.

As shown in Figure 7.1, the hollow centre of the horn core leads directly to the sinuses of the skull. This shows how easily infection can get inside the skull and be detrimental to the animal. When cutting off larger horns on older animals, an open hole is exposed. This substantially increases the risk of infection inside the skull.

Figure 7.1 Anatomy of a Horn and Sinuses

Source: Dehorning, under Husbandry in the Topics section of the Futurebeef website

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When to dehorn The younger the animal at the time of dehorning, the less pain and stress for the animal, and the less risk of infection or fly strike. Smaller animals are also much easier to handle and restrain, and this makes the task easier for handlers.

Removing horns from older cattle, yearlings and adults is time consuming, painful for the animal and increases the chances of a setback. Dehorning animals over 12 months of age is not recommended, unless it is undertaken by a veterinarian. Also it is illegal in some states and territories to dehorn animals over twelve months old. Which method of dehorning to use? The method of dehorning should be matched to the size of the horn and the age of the animal. The level of skill of the operator may also be a consideration.

All equipment should be cleaned between each animal’s procedures and kept in a clean antiseptic solution during procedures. The head of the animal should be well restrained.

- Dehorning knife The dehorning knife has a curved blade which must be kept sharp and clean. The procedure should be very quick, and (with practice) produce good results with no regrowth. The knife is used to cut through the skin around the horn bud in one decisive action. The key to successful dehorning is the removal of a complete ring of hair (~1 cm wide) around the horn base.

Photo 7.3 Dehorning Knife

The dehorning knife can be used on calves where the horn bud is still mobile and not attached to the skull. This usually applies to calves up to two to three months of age. Once the bud has attached to the skull, a small scoop dehorner may be a better choice.

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- Scoop dehorners Scoop dehorners are used by placing them vertically down over the horn bud, and while maintaining firm downward pressure on the skin, the handles are opened quickly outwards thereby scooping out the horn.

Scoop dehorners are suitable for calves two to six months old. It is preferable to use scoop dehorners before the horn bud attaches; however, they can also be used after the horn bud attaches, provided the horn tissue is not too hard. Scoop dehorners come in a number of sizes and it is important that the right size instrument is used on the right size animal. The larger scoop dehorners can leave a deep hole if used on too small an animal, but are useful for larger weaners and older cattle.

- Cup dehorners Cup dehorners are designed to be used on calves that are too big to dehorn with a knife, hot iron or scoops. Again it is necessary to take a complete ring of skin around the horn base. Downward pressure on the cup may need to be applied by a second person to prevent the cup ‘riding up’ the horn. However, too much downward pressure can produce an unnecessarily large wound, so care must be taken. Photo 7.4 Cup Dehorners

Cup dehorners will handle cattle up to 12 months of age; however, they are best used on calves up to six months of age where the horn bud is already firmly attached.

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Tipping cattle Tipping is the removal of the insensitive sharp end of the horn, and is not proper dehorning. If cattle are dehorned at an early age, or are polled, tipping would not be necessary. Tipped cattle still have the disadvantages of horned cattle; for example they can still cause bruising. Also, tipped cattle can still be a danger to other cattle as well as handlers.

Horn tipping however is sometimes necessary for welfare reasons such as when a horn is growing towards an animal’s head. While tipped cattle can still hurt other cattle and handlers, it is likely an injury from a tipped horn may not be as detrimental as an injury from a sharp ‘speary’ horn.

Horn saws, parrot teeth tippers and surgical wire should only be used to tip the horns of adult cattle; that is to remove only the insensitive part of the horn. If these instruments are used to dehorn cattle, or remove more horn than tipping, then they should only be used by veterinarians (or under their direction). Local anaesthetic should be used.

Management Checklist for Dehorning Cattle

• The younger the animal – the less trauma and the less chance of infection or setback. • Prepare animals for surgery and ensure conditions are suitable for surgery. • Use the correct instrument for the size of the horn or calf. • Good restraint of the head is essential – use a cradle for calves and a squeeze crush for older cattle. • Ensure dehorning instruments are kept clean and sharp. • Place instruments in a bucket of disinfectant between each animal’s treatment, and use a separate bucket of disinfectant for hands.

Further Information on Dehorning and Branding See A guide to best practice husbandry in beef cattle – branding, castrating and dehorning, a free MLA publication is available at: Publications | Meat & Livestock Australia

See Dehorning on the FutureBeef Website.

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Castration Castration is a key animal management procedure which has important animal and human welfare implications. Castration is carried out for the following reasons:

• Genetic management: Castration prevents undesirable bull calves and mickey bulls from breeding. This enables mating of bulls only with desirable genetic traits. • Behavioural control: Castrated male cattle (steers) are generally less aggressive, easier to handle, less likely to fight causing injury to other animals, and less likely to damage fences. • Meat quality: Unless slaughtered at a young age, the secondary sex characteristics of bulls tend to make bull meat tougher and less attractive to consumers, especially for the higher priced cuts. When to castrate Castration should be carried out on bull calves when they are very young, and certainly before six months of age. If bull calves are castrated early in life there is less pain and discomfort to the animal, less risk of bleeding and infection, and less risk of weight loss. Younger animals recover quicker if castrated early. On larger properties, where mustering can’t be started until the wet season has finished, this may be difficult to achieve, particularly if calves are born at the start of the wet season (as recommended) or just after the last muster of the previous year. Some states have specific legislation regarding age of castration – check with your local stock inspector. Methods of castration There are two generally-acceptable methods of castration:

• Surgical castration using a scalpel blade is the most practical and common method used in northern Australia. (See description that follows). • The Burdizzo® should only be used by a skilled experienced operator. Due to risk of failure, it is not recommended for use by inexperienced cattle producers. In addition, the Australian Code of Practice for the Welfare of Animals states that this method should only be used on calves under six months of age if done without anaesthetic. Emasculation using latex rings can cause extreme pain, if not designed for the task, and not applied correctly. They are only suitable if the technique employed is PERFECT. Apart from the pain, a common complication of imperfect technique is tetanus, unless the animals have full vaccine protection. The Australian Code of Practice for the Welfare of Animals states that elastration rings must only be used on calves less than two weeks of age. This option is not legal in most circumstances, on most extensive properties.

With all methods of castration, effective restraint such as a calf cradle is essential for the welfare of the calf and the operator. When performing castration it is important to disinfect equipment in an antiseptic solution between each animal’s procedures, and have a separate bucket of antiseptic for washing hands.

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Surgical castration The following photos show the procedure of surgical castration using a scalpel blade.

Photo 7.5 Castration Photos

After checking that two testicles are present, the testicle is squeezed against the bottom of the scrotum to stretch the skin.

A scalpel blade is used to make an incision at the very bottom of the scrotum, long enough to expose the testicle when squeezed out. In some cases the testicles proper may still be hidden behind a thick whitish membrane - the tunica vaginalis. If this is the case it will be necessary to make an incision in the tunica to completely expose the testicle. A deep initial incision ensures the testicle is exposed immediately.

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The testicle proper can be pulled from the incision hole by wrapping the fingers around the testicle and the spermatic cord. The attached ligaments and vas deferens (sperm cord) can be separated from the testicle and blood vessels with the fingers.

Cut through the separated white fibrous tissue, freeing this from the end of the testicle. Then cut through the white fibrous tissue again, as close to the neck of the scrotum as possible.

The testicle can be separated by firmly pulling on the exposed testicle and removing it in one quick continuous tearing action. Do not cut through the cord as this may lead to excessive bleeding. The most desirable method is to remove the exposed testicle using a triple crush emasculator, which crushes and cuts the blood vessels and hence minimises bleeding. Emasculators are the preferred option for older calves and for castrations done in hotter weather.

Source: MLA

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Good hygiene is essential when castrating. It is recommended that scalpels and emasculators are soaked in disinfectant between operations. Poor hygiene may lead to infection, which delays healing and may set back growth. Fly control should be considered at certain times of the year. Calves should be vaccinated against tetanus.

Further Information on Castration See - A guide to best practice husbandry in beef cattle – branding, castrating and dehorning, a free MLA publication is available at

Publications | Meat & Livestock Australia

Also see Dehorning and Castration of calves under 6 months of age - NT Agnote

Spaying Cattle spaying is a strategy to prevent breeding in females targeted for slaughter. There is no known growth advantage from spaying, other than that gained by preventing pregnancy and lactation. If not done well, it can cause death. Effective segregation is a better option than spaying, if it can be done. Spaying is a somewhat costly surgical procedure. It is recommended that it be performed by a trained professional, such as a cattle veterinarian.

Further Information on Spaying Spaying beef cattle www.daff.gov.au/animal-plant-health/welfare/nccaw/guidelines/ livestock/spaying

Speying cows - Willis dropped ovary technique

Why are cattle speyed? - RSPCA Australia knowledgebase

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Health Healthy Cattle, More Income Health and disease problems can impact significantly on a beef business and its annual profit, particularly in the event of mortalities, reproductive loss, poor growth and poor fertility. Healthy cattle produce more calves and more beef, plus there are fewer losses due to health and disease problems.

Disease control and disease prevention are important aspects of herd management. Preventative health management is relatively cheap compared with other costs and is a sound investment for some key diseases mentioned in this manual. However, in any case where preventative health care is being considered, a cost-benefit analysis should be undertaken. This analysis may be partially subjective if a major benefit is the welfare of the animal.

If approached by a rep to purchase a health product, take care to ASK THE RIGHT QUESTIONS. A simple example of the wrong question is, ‘Will this drench improve the growth of my cattle?’ The answer will always be yes, and a very poor decision could be made to purchase and treat cattle unnecessarily. A better question would be, ‘Will the drench improve my business profitability, affect the development of immunity in the cattle, or cause unnecessary stress due to administration?’ If the advisor can provide satisfactory logical answers with EVIDENCE, only then is their advice valuable.

Effective herd health outcomes from appropriate management include:

• no disease contracted by handlers or consumers, that is sourced from cattle • no depression of growth or fertility due to ill-health • minimal pregnancy failure and calf loss • low cow mortality rates • low mortalities in calves and weaners • low bull injury and mortality rates • achieving market access and premiums • cattle are able to behave normally and experience minimal stress • compliance with market specifications, regulations, and codes of practice • justifiable herd health management costs • no animal welfare issues. Diagnosing Disease and Deficiencies In the event of disease there are four key steps:

• diagnosis • treatment of the cause • treatment of the symptoms • prevention of spread including the use of vaccines.

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Incorrect diagnosis of a disease can cause substantial unnecessary costs. A vet is the best person to diagnose diseases or deficiencies on extensive properties. In situations where it is too costly or not practical for a vet to visit, the property manager can make very observant and careful notes and take photos to describe what they see. This evidence can then be assessed by a vet or stock inspector.

If more than one animal has died of an unknown cause, it is worthwhile to get a vet out to diagnose the cause, even if costly, so action can be taken to prevent further deaths and financial loss. If this is not possible then a bush post-mortem by the manager/owner may be necessary. A post-mortem, even if extremely basic, can be of great value in understanding why an animal died. If a totally untrained person does a simple post-mortem and observation, they may work out the problem, or alternatively they may see critical indications that, when described to a trained professional, identify the cause of the problem. Access to a digital camera to record what was seen can vastly improve the quality of information.

Cattle owners and managers should always notify their local state department stock inspector or biosecurity officer of disease events. Where possible, officers will follow up with a disease investigation.

Recommendations for Diagnosing Disease and Deficiencies (in the absence of a vet) Level 1 • Carefully observe sick animals, make notes and take photos, which can then be passed onto a vet or stock inspector. Level 2 • Undertake a bush post-mortem (remember to wear plastic gloves and be very hygienic). Seek directions from your local stock inspector. • Make notes and take photos and pass these on to your vet or stock inspector for assessment.

Further Information on Health Diagnosing disease and deficiencies website

Animal Health and Disease Investigation (2nd edition) - buy from Queensland Government (you can also download a ‘Disease and welfare investigation form’ and ‘Condition score tables’ here).

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Prevention - Vaccines and Vaccination Programs Vaccines are a preventative measure to reduce:

• disease incidence • loss of production • animal losses • economic losses

For diseases such as Botulism, Vibriosis, Clostridial diseases, and Pestivirus (in certain circumstances), vaccines are quite cost effective. It only takes the prevention of a few animal losses to pay for the cost of the vaccine. If a disease is prevalent in the herd, and causing losses, extra prevention above normal management may be required.

To reduce mustering costs and time, the annual vaccination program should be tied in with the normal planned mustering and cattle handling program. However, timing of vaccination should be prior to the time of year when disease outbreaks are most likely. Handling and using vaccines Incorrect handling of vaccines can result in the vaccine being ineffective, and therefore a waste of money spent and no protection against the disease. Correct handling of vaccines is quite easy, provided a few simple rules are followed.

• Remember most ‘killed’ vaccines require two initial injections (priming and booster) at least four weeks apart to have a real effect. If only one shot is given, the vaccine may provide only low protection (but may be better than no vaccine). Once the animal has protection, most of these vaccines require annual ‘boosters’ to sustain protective immunity. • It is difficult to vaccinate calves against some diseases; however, they do get some protection from antibodies in colostrum milk at birth. The best way to maximise these antibodies is to give annual vaccinations to cows at the last muster each year, prior to calving. • Some vaccines can interfere with development of immunity from other vaccines given at the same time. Avoid using tick fever vaccine with priming injections (it is OK with boosters). Also avoid using more than two bacterial vaccines at once. • Vaccines are sterile, and must be kept refrigerated (including in an esky at crush side!). If they are exposed to heat or light or freezing cold, they can break down and will not work. Once a pack is open, usually it must be used within a week, as long as it can be kept chilled and clean. Some vaccines must be used within one day; others within 30 days. Check the labels for specific advice. • Don’t miss the animal and inject yourself. If you inject yourself with vaccine it can cause nasty prolonged reactions. It is VERY important to ensure you do not accidentally vaccinate yourself or others with an oil-based vaccine such as SingVac®. It can cause very serious reactions that may require surgical excision. Seek medical attention immediately. • The needle should be sharp and clean and be inserted in the correct manner.

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• Most cattle vaccines should be given under the skin to allow proper absorption and minimal tissue damage. This is particularly important for oil-based vaccines. If the vaccine is given into muscle, severe reactions can occur. The preferred site is the neck, forward of the hump. Injections in the hindquarter can result in damage to the choice meat cuts, and injections into the rumen fossa (flank spay site) can penetrate directly into the rumen and be wasted. • Two common problems are persistent post-vaccination lumps (especially after using oil-based vaccines), and a high resistance to injection on the first attempt. The latter is often incorrectly rectified by deeper insertion of the needle at a more perpendicular angle. Both of these problems are often caused by incorrect orientation of the needle on the syringe. See the diagram in Figure 7.2 for correct orientation/insertion of a needle, including the needle tip also.

Figure 7.2 Correct and Incorrect Orientation of a Vaccination Needle

Correct

Incorrect

Skin

Subcutaneous space

Muscle/Fat/Bone

The objective when vaccinating is to get the opening of the needle resting between the skin and underlying tissues. This is achieved by orientating the needle so that, at entry, at about 45o to the skin, THE BEVEL IS PARALLEL WITH THE SKIN (see correct example).

Record details of all vaccines used and vaccinations including:

• vaccine details • date of vaccination • animals vaccinated • batch number and expiry date.

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Case Study Examples for Vaccines

Warrigundu Station, Northern Territory Vaccinations for cattle include:

• Singvac as a vaccination for Botulism in all cattle is normally carried out in the first round for those cattle that require it in that particular year. • Ultravac 7 in 1 to prevent Leptospirosis and the major clostridial diseases for calves at branding. • Vibriosis vaccine for bulls in the first round and heifers prior to joining. Other health treatments include:

• Pour-on to treat ticks. • Buffalo fly tags for all weaners destined for Gunbalanya Station floodplain. Delta Downs, Queensland During the first round the vaccination program includes:

• Cows returned to the paddock are vaccinated for Botulism with Singvac. • Bulls returned to the paddock are vaccinated for both Botulism with Singvac and Vibriosis with Vibrovax. • All weaners receive a vaccination for Botulism with Singvac. • During the second round, weaners taken off their mothers at this time receive a Botulism vaccination.

Management Checklist for Handling and Using Vaccines

• Vaccinate animals before likely exposure to the disease. • Keep the vaccine refrigerated, even at crush side by using an esky. • Use clean and sterile equipment, including sharp needles. • Ensure the needle is orientated the correct way as shown in Figure 7.2.

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Further Information on Vaccines (FutureBeef website see Husbandry ) Principles of using vaccines

Vaccinations for beef cattle

Reproductive Diseases Vibriosis, Trichomoniasis, Leptospirosis and Pestivirus are prevalent in large beef herds under extensive conditions in northern Australia. Vibriosis and Pestivirus in particular can cause significant reproduction losses, leading to loss of income. Strategic management and control of these diseases is critical to herd performance. Vibriosis Vibriosis is a sexually transmitted disease of cattle, caused by a bacterial infection in the female reproductive tract. Vibriosis is transmitted by bulls that pass the disease on to uninfected heifers and cows. Bulls act as carriers for years if they are not vaccinated. Infected cows pass the disease to uninfected bulls which have not been vaccinated. The biggest problems occur under the best controlled management systems, especially where naïve heifers are exposed to infected bulls during their maiden mating.

What will you see? • (usually) no abortions or discharges • a lot of cows having late calves or not having a calf • if pregnancy testing, you will see: »» late calving peaks or prolonged calving patterns »» a lot of empty cows • abortions, if cows have been infected in the latter stages of pregnancy. Disease confirmation involves professional examination, usually of vaginal mucous samples of cows and heifers.

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Management Checklist for Vibriosis Control

Level 1: • Castrate all mickey bulls, plus maintain paddock fencing. • Vaccinate herd bulls with an annual booster. • Vaccinate all young bulls introduced to the herd. Two doses are required, one month apart, for bulls which haven’t been vaccinated previously. • Reduce the age of herd bulls being used, to six years of age or less. Level 2: (In addition to the above) • Cull all empty breeders at a pregnancy test to reduce prevalence of the disease (note pregnant animals may still be carriers of the disease). • Mate new young bulls which have been vaccinated with maiden heifers in a separate heifer paddock. There may be some specific situations where a vet will recommend vaccination of females as well. Generally bull vaccination is sufficient.

The stress of vaccination against Vibriosis may cause temporary sub-fertility in bulls. Bull vaccination should be completed as early as two months prior to mating.

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Trichonomiasis Trichonomiasis is a sexually transmitted disease of cattle that causes infertility in cows in much the same way as Vibriosis. It is caused by a protozoan instead of a bacterium. An infected bull may pass on the disease to any female it serves. Similarly an infected female may infect any bull that serves it. Any animal of breeding age is susceptible to infection. Often the incidence for this is higher amongst heifers than mature cows.

The organism lives in the uterus where it produces an inflammation which either prevents conception or causes an early abortion. Such abortions are common at approximately two to four months. Short seasonal mating greatly assists in control as the organism does not persist as well as Vibriosis.

Note that Trichonomiasis (or ‘trich’ ,pronounced ‘trike’, as it is commonly called) is a notifiable disease in some states.

What will you see? • The best indication of the presence of Trichomoniasis is when cows keep returning to the bull for four to five months after they have been initially served. • Aborted foetuses, of two to four months of age, may be found in the paddock and a persistent vaginal discharge occurs in affected cows. However, under the extensive management conditions of northern Australia, these symptoms are usually not observed.

Management Checklist for Trichonomiasis

No commercial vaccine is available. Level 1 – Standard prevention • Castrate all mickey bulls and mend fences. • Reduce the age of herd bulls used to six years or less. Level 2 (in addition to the above) - if trich is suspected • Cull infected herd bulls if diagnosed by a vet. • Segregate heifers and mate only with young clean tested bulls. Level 3 (in addition to the above) - if trich is diagnosed • Segregate heifers and seasonally mate with young clean tested bulls. • Use whole-herd, short-seasonal mating.

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Bovine Pestivirus or BVDV Bovine pestivirus is also known as bovine viral diarrhoea virus (BVDV). Bovine pestivirus causes reproductive losses and young cattle deaths across Australia. Infected cattle can appear normal or show with a range of symptoms. A surviving foetus infected at between one and three months of pregnancy has no immune system when infected. If this happens, its immune system thinks the virus is normal and allows it to persist for life. These are called persistently-infected animals, or PIs.

Most commonly, BVDV is spread by PI animals. Many of these cattle appear normal until they develop BVDV, but some are born frail or have ‘ill thrift’. Half die each 12 months. PI animals infect other animals by shedding the virus through contaminated secretions and discharges to unaffected animals. Therefore cross infection often happens at mustering and yard handling.

Where the virus persists in a herd, the damage can be either low-level and persistent, or more sporadic and noticeable. Properties with better infrastructure and cattle control and management are usually worst affected. This is simply because naïve heifer groups are created which then become exposed, most often during a mating period. The main problem occurs with infection of cycling or early-pregnant females.

What will you see? • reduced calving levels, plus delayed time of calving (late calves) • late abortions, calf still births and birth defects (can die soon after birth) • ill thrift and death in calves and weaners. Bovine viral diarrhoea or Muscosal disease (diarrhoea, fever, ulcers on the gums) develops in PIs. This disease cannot be treated and animals invariably die.

Disease investigation involves testing for antibody levels in blood from a group of up to 30 older cows born on the property. Photo 7.6 A ‘Normal’ PI Yearling

Source: Geoffrey Fordyce, QAFFI

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Recommendations for Bovine Pestivirus Control

What is the BVDV status of your herd? Work with your vet to screen your herd for BVDV status, to see if the herd is naïve to the virus, or if the virus is active.

Recommendations will depend on the BVDV status of the herd. Your vet will determine a control or prevention program for your herd based on whether it is naïve or infected/endemic. Infected Herds – Steps to Minimise Losses Level 1 • Do nothing until overall management improves. Level 2 • Before selection and maiden mating, test antibody in blood from up to 30 head or more maiden heifers to see if one or more PIs is ‘vaccinating’ the group or not. • If PIs are not present in a heifer group within an endemic herd, then vaccination is needed. Vaccinate heifers twice prior to mating with two vaccines, six weeks apart, as well as vaccinating new bulls (expected to be profitable when only 1% chronic loss is incurred). Naïve herds – Necessary Steps Required • Undertake biosecurity measures to minimise the risk of infection, such as checking the status of all cattle trucked to the property. • Have all new bulls tested to ensure they are not PIs. In naïve herds, the level of vigilance needs to be high to prevent financial loss. Neighbours cattle can be a source of infection. • If recommended after consultation with your cattle vet, vaccinate against pestivirus infection for naïve heifer groups prior to first mating. Remember that two injections of Pestigard® are required (one injection offers NO protection).

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Leptospirosis Leptospirosis is a contagious cattle disease, caused by bacteria that require moist conditions to survive. Cattle which recover may become carriers and shed the organism in their urine, for up to 12 months. Survival of the organism in the environment can be extended if picked up by carrier animals such as rats, pigs and bandicoots, which can then re-infect the herd with their urine.

Leptospirosis can be transferred from cattle to humans, and can make humans very sick. When handling cattle or around cattle faeces or urine, wash your hands before eating, before touching your face, and before picking up small children.

What will you see? • Leptospirosis rarely causes significant reproductive loss in cattle, but if it does, it is usually by late abortion and young calf deaths • Cows may develop an unusual mastitis.

Disease investigation involves taking blood samples from cows, usually in the wet season, which are then examined in a laboratory. The primary issue is human health.

Management Checklist for Leptospirosis

Level 1 • If a cattle vet indicates vaccination for herd or human health is advisable, a broad herd vaccination program is required. • Vaccination must start in young females before the bacterium establishes in the kidneys. • Vaccinate annually. In young cattle, this may be with ‘7 in 1’vaccine that includes Leptospira hardjo and Leptospira pomona (as well as the five clostridial diseases).

Further Information on Reproductive Diseases Vibriosis in the Northern Territory

Vibriosis (or Campylobacteriosis), Biosecurity Queensland

BVDV Australia website Bovine viral diarrhoea virus (BVDV) or Pestivirus.

Biosecurity Queensland - Leptospirosis

Trichomoniasis - Agnote, Northern Territory Department of Primary Industry and Fisheries (DPIF)

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Botulism Botulism is a serious disease, causing an estimated 10% of all cattle deaths in northern Australia. The disease is caused by the toxin produced by the bacteriumClostridium botulinum (closely related to the organisms causing tetanus and other clostridial diseases). The organism forms highly resistant spores which can survive in the environment for many years.

Botulism occurs when cattle ingest the toxin. In northern Australia, this is mostly associated with depraved appetites brought on by nutritional deficiencies. The common deficiencies associated with this are protein and/or phosphorous. Sometimes in these situations, cattle eat carcases and chew bones; that is, they have depraved appetites. Cattle with depraved appetites will also chew sticks, bark, or other unusual objects, and will be more likely to ingest the botulism toxin if present.

The botulism organism can also produce toxin in other low-oxygen situations, such as in dead animals accidentally trapped in hay bales and cattle can become affected by ingesting the affected fodder. Stock can also be affected by drinking water, which has been contaminated by dead animals. Carcases of birds, rodents or frogs can all harbour the organism. Open water tanks or turkey nests also can be especially hazardous in harbouring the botulism organism.

Botulism has an incubation period of three to seven days between ingestion and the onset of symptoms.

What will you see? • The main symptom is progressive paralysis, usually starting in the hindquarters (causing animals to stagger) and gradually extending to chest, neck and throat. Death usually occurs due to paralysis of the respiratory muscles. A classical sign of botulism is deaths with no evidence of leg paddling, a consequence of the paralysis. • Affected animals found alive may drool saliva and have half chewed food material in their mouth and throat and may have little or no control of their tongue, due to paralysis of the muscles. Often the tongue is hanging out between the teeth. If the tongue is pulled out, the animal cannot pull it back in. • Affected animals have difficulty eating and become ‘hollowed out’ and thin quite quickly. • Animals with botulism do not lose their mental capacity until they become weakened by lack of food, water and oxygen. Till then, they may be ‘spooky’ which is caused by them being unable to respond to normal situations such as being handled. • Often, in extensive areas, symptoms are not seen and the animals are found dead within close proximity to water. Cattle usually die within 24 hours of the onset of symptoms. A small percentage of animals affected with botulism will recover after three to four weeks, especially if given intensive nursing. • Cattle of any age can be affected, including suckling calves, if their dams have not been vaccinated during pregnancy. • A positive diagnosis is extremely difficult to make. Very rarely, a vet can isolate the toxin from the bowel contents of the dead animal. Diagnosis is usually by the history, and that deaths stop after vaccination starts.

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Management Checklist for Botulism

• Botulism vaccination is recommended for all herds in northern Australia. • There are three types ofClostridium botulinum (types B (rare), C, & D) that can cause botulism in cattle. Vaccination against types C and D botulism has been widely adopted and is now standard industry practice. • Seek advice from your vet or stock inspector. SingVac gives three years of protection from one injection. Longrange needs to be given once as an initial injection to get one year of coverage, then annually. Level 1 • Vaccinate all susceptible animals with one injection OR two injections four to six weeks apart – depending on the vaccine used. Level 2 (in addition to above) • Ensure cattle have access to adequate pasture and supplementation to rectify the main deficiencies, which are usually of protein and/or phosphorus. • Carcases should be disposed of by deep burying, or by burning where ever possible to reduce possible sites of infection.

Deaths from botulism are often associated with deficiencies. So if cattle are seen chewing bones it could mean you need to feed supplements. However, just because you supplement doesn’t mean cattle are safe from botulism. The best prevention is vaccination. As botulism spores can survive for many years, outbreaks of botulism may occur if the vaccination program is stopped.

Further Information Botulism, Biosecurity Queensland

Botulism poisoning in cattle in the Northern Territory, DPIF

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Three Day Sickness (Bovine Ephemeral Fever) Bovine ephemeral fever (BEF) is caused by a Lyssavirus, which is carried by a number of biting insects, including mosquitoes and midges. These insects transfer the virus by biting successive animals. The incubation period is two to four days and animals are normally infectious for up to four days after the fever subsides. It is more prevalent during the wet season. ‘Ephemeral’ means ‘comes and goes’. The animal has regular bouts of a very high fever with other clinical signs.

Although mortalities are usually low, the economic loss due to three day sickness is important. This occurs in the form of:

• death of valuable animals such as bulls or sale bullocks and steers - the heavier and fatter animals are, the more severe the disease, and the more likely it will kill • reduced milk yields and depressed calf growth • weight loss of up to 20% • temporary sterility in bulls due to fever • occasional abortion losses and calf mortality.

Fever itself can cause early-pregnancy losses which are seen as simply low pregnancy rates. This is more likely to occur in heifers after a run of dry years.

What will you see? • Severe fever, stiffness, lameness from inflamed joints and the animal goes down for a period of two to seven days (usually three to five), after which, animals usually recover. • A secondary bacterial infection and prolonged lameness can also occur and occasionally death occurs due to these complications.

All previously unexposed cattle are susceptible, but mainly cattle up to two years old are affected. Bulls and cattle in good condition are more severely affected due to the effects of fever combined with a period of being ‘down’ (prostration). Calves under six months are rarely infected due to maternal immunity. In previously infected animals, natural immunity lasts for up to two years. Treatment of affected animals is generally expensive and largely only symptomatic in nature. Consult your vet or local stock inspector for details.

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Management checklist for Three Day Sickness

A freeze dried live vaccine is available for use on valuable, susceptible animals from your vet. Two injections are required two to four weeks apart, best administered at the 2nd round muster. Level 1 • Do nothing, which is common across northern Australia. Level 2 • Vaccinate only valuable animals such as bulls; especially those being brought in from areas where BEF does not occur. Level 3 • Vaccinate all bulls and the current year’s sale steers or bullocks.

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Clostridial Diseases such as Tetanus Clostridial diseases are caused by a group of bacteria that survive by forming spores that live for decades in the ground. The spores can arrive in dust storms and in rain wash. In addition to botulism, five diseases that are usually fatal to cattle are included in this group of diseases — tetanus, malignant oedema, blackleg, enterotoxaemia and black disease. Tetanus Tetanus is caused by a bacteria Clostridium tetani, which produces a powerful toxin which attacks the nervous system. Tetanus organisms enter the animal through wounds, nail pricks, stake wounds, burns or surgical incisions that have been contaminated with soil or manure containing tetanus spores.

Horses are most commonly affected as they are extremely susceptible to the disease. Spores are found in the lower intestinal tracts of most animals where they appear to cause no harm. These spores pass out in the manure resulting in contamination of soil especially around yards and stables.

In recent years, there have been widespread reports of this disease caused by castration with latex rings. Wounds caused by castration and dehorning can also lead to tetanus if calves are not vaccinated.

What will you see? • Signs develop seven days to three weeks after infection and include stiff muscles, spasms, tremors, lockjaw, unsteady gait and a stiffly held neck and tail. The third eyelid will become visible. • Animals become dehydrated and commonly bloat. As the disease progresses, muscular spasms develop. In the terminal stages the animal falls with neck and back arched and the legs fully stretched out. Death is due to severe spasm. Malignant Oedema Malignant oedema is an infection in soft tissue which follows wounding or castration.

What will you see? • Swelling at the site of infection, plus fever and muscle tremors. The animal becomes weak and death usually occurs within 48 hours. Blackleg Blackleg is a gas gangrene of muscle tissue. It usually affects young, fast-growing cattle and can affect cattle as young as one month old. Bacteria may enter muscle through small wounds or after bruising.

What will you see? • fever with a gassy swelling at the site of infection or • sudden death.

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Enterotoxaemia Enterotoxaemia is associated with a change in feed flow through the intestine. It usually affects calves when conditions in the gut favour rapid growth of the bacteria. These conditions can be brought on by a high protein diet, a flush of green feed or change in feed ration.

What will you see?

• bellowing and mania • convulsions • blindness • diarrhoea • paralysis • sudden death

It is often associated with bloat. Black disease Black disease is a clostridial infection of liver tissue, usually associated with migrating liver fluke.

What will you see? • severe liver disease • death within one to two days.

Management Checklist for Clostridial Diseases

A ‘5 in 1’ or ‘7 in 1’ vaccination protects against all five clostridial diseases (tetanus, malignant oedema, blackleg, enterotoxaemia and black disease). Level 1 • Vaccinate calves the first time they are yarded, even if this is during branding. A booster vaccine provided six weeks later or when next yarded will improve effectiveness of the vaccine. Level 2 • Where some of these diseases cause regular mortality, give an annual booster. Prevention is the best strategy particularly when the vaccines developed are highly efficient, readily available and inexpensive to use.

Humans should also be vaccinated against tetanus and receive boosters every ten years.

Further Information on Clostridial Diseases Black disease, blackleg, enterotoxaemia, malignant oedema and tetanus, Biosecurity Queensland

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Coccidiosis Coccidiosis or Post-weaning diarrhoea (PWD) is a very common condition in recently weaned calves that are under stress. It is caused by two coccidia that are normal intestinal inhabitants, Eimeria bovis and Eimeria zeurnii. Under normal circumstances these cause no significant problems. However, weaning is very stressful for the weaner and its immune system can be compromised, particularly if it is not getting fed well enough. The parasite then can rapidly multiply and cause substantial damage to the lining of the intestines. This is seen as bloody diarrhoea.

Usually it takes about four weeks from the time of immune suppression to clinical disease. Interruption to feed supply for as little as one day can compromise the gut’s immune system and cause coccidiosis in weaned calves. If not given drugs to control the parasite, the weaner may continue to suffer chronic intestinal damage from coccidia. If left untreated, scarring of the intestine can occur, which may affect long-term growth. What will you see? • foul smelling diarrhoea which may be blood tinged; that is black or red in colour • decreased appetite • depression • death in the worst cases.

Management Checklist for Coccidiosis

• Prevent the onset of coccidiosis by feeding weaners a nutritious supplement and good quality hay from day 1 of weaning. Voluntary intake must be satisfied. • Make sure Rumensin® is included in the ration — calves need 25mg per head per day. It is toxic if the dose rate is too high so make sure it is included in the ration at the right rate. Note: small amounts are lethal to horses. • Also provide clean water, dry yards, shade and adequate space. Wind breaks in winter in colder locations will be needed. • Do not confine weaners to yards for long periods.

Treatment

• For the weaner group - remove stress and treat with Rumensin®. • Separate severely infected animals. • Treat severely infected animals with a prescribed product recommended by a vet. • Electrolytes can be added to the water. • Feed with a high quality feed suitable for the size of the animal.

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Tick Fever Tick fever is caused by three different protozoa (parasites) which invade and destroy red blood cells and cause a severe, and sometimes fatal, disease. They are transmitted to cattle by ticks. The resulting diseases are known as Bovine babesiosis (tick fever or red water) and Anaplasmosis. Tick fever often has a high mortality rate of 20% or more in susceptible cattle. Cattle on properties in marginal tick areas are most at risk, particularly in good seasons when there can be an increase in tick numbers. Cattle that are more susceptible include British and European cattle, cattle from clean country, older cattle with no previous exposure, bulls and stressed cattle (pregnant or in poor condition). What will you see? • fever (for one week) • reduced appetite • rapid breathing and heart rate • white of eyes turn yellow • stands with head down • red urine (Babesia).

Diagnosis is confrmed by a blood test as well as clinical signs. Management Checklist for Tick Fever

• Tick fever vaccine (blooding) is recommended for cattle moving from tick-free areas into tick-infected areas. Cattle should be vaccinated two months before they leave the property. • If cattle can’t be vaccinated until they arrive on the property, they can be vaccinated after they have recovered from the trip. However, they must be immediately treated with long acting ‘pour-on’ to kill any ticks. • Export cattle from tick-free areas can be ‘blooded’ prior to shipping. Different export destinations will have different requirements. Check with your agent or local vet. Export cattle must be free of ticks prior to shipping.

Treatment

• Infected animals can be treated with veterinary prescribed drugs. Ensure the recommended dose is adhered to. • Tick fever vaccine can be ordered from your local agent or feed merchant or direct from the Tick Fever Centre. • It is a live vaccine with a limited shelf life and can only be dispatched at the beginning of the week - so make sure freight arrangements are suitable.

Further Information on Tick Fever Tick fever

Cattle ticks, DAFF Queensland

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Worms Most cattle carry worms inside their gut. Worms of various stages of their life cycle are a problem if they cause tissue damage, loss of blood, or can be transmitted to humans. On most extensive pastoral properties in the dry tropics, cattle disease from worms is uncommon because of dry season pastures and extensive grazing patterns. However, worms can be a problem on smaller, intensely-grazed properties or in smaller paddocks which are not spelled, such as weaner paddocks. On swampy floodplains and some wetter coastal areas, worm numbers can often be high enough to cause deaths in cattle up to two years old. Young cattle with low worm populations develop immunity, and can be quite resistant to worms by two years of age. In drier areas, control of intestinal parasites may achieve small temporary growth advantages in weaners during the dry season. However, this advantage is most probably lost by 18 months of age. The situation is very different under wet conditions where growth rates are affected and treatment is often required. What will you see? • weight loss and anaemia (small intestinal worm – Cooperia spp.) • foul smelling diarrhoea may occur after weaning (nodule worm) • weakness, weight loss and anaemia (barber’s pole – Haemonchus).

Management Checklist for Worms

• Spell weaner paddocks. • Provide weaners with good nutrition, clean water and shade. • Determine if worms are present before treating. Faecal egg counts from dung samples are a useful indicator of adult worm burdens in young susceptible cattle. This will identify which worms are present and require treatment. • If infestations are high enough to indicate treatment is either necessary for welfare of the animals or a return on investment will occur, treat with anthelmintics. • In intensive systems, particularly those in wetter locations, regular drenching programs and pasture spelling may be needed. • The financial viability of routine drenching on extensive properties is not proven.

Further Information on Worms Worm infestations – don’t guess

Know your worms

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Other Diseases of Cattle • Akabane, Biosecurity Queensland • Bluetongue »» Bluetongue, Biosecurity Queensland »» Bluetongue in cattle, DPIF • Calf scours – post weaning diarrhoea • Enzootic bovine leucosis (EBL) »» EBL, Biosecurity Queensland »» EBL, DAF WA • Johne’s disease »» Johne’s disease, Biosecurity Queensland »» Johne’s disease, DAFWA • Lumpy jaw, Biosecurity Queensland • Neospora, Biosecurity Queensland • Stringhalt in cattle • Tail rot • Three day sickness (bovine ephemeral fever) »» Three day sickness, Biosecurity Queensland »» Three day sickness, DPIF • Warts, Biosecurity Queensland Zoonoses (diseases transmissable to humans) • Leptospirosis, Biosecurity Queensland • Q-fever, Biosecurity Queensland

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Other Parasites • Buffalo fly control in cattle, DAFF Queensland • Lice treatments, DAFF Queensland Exotic diseases and parasites • Bovine Spongiform Encephalopathy (BSE), Food Standards Australia New Zealand (FSANZ) • What is TSE? • Foot and mouth disease (FMD), Biosecurity Queensland • Rinderpest, DAFF Queensland • Screw worm fly, DAFF Queensland Feed-related poisoning • Acidosis – clinical signs, treatment and prevention, DAFF Queensland • Urea poisoning in cattle, DPIF • Pimelea poisoning (St George disease) (PDF 1.96 MB) • Cyanide (prussic acid) and nitrate in sorghum crops - managing the risks, DAFF • Swainsona poisoning in cattle and horses, DPIF More information • Animal Health Australia website

Further Information on Diseases Health and disease | FutureBeef

Animal Health and Disease-Department of Primary Industry and Fisheries-Primary Industry

Department of Agriculture and Food - Animal Health

Animal health and diseases | Agriculture, Fisheries & Forestry | Queensland Government

Animal Health Australia

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Welfare Animal welfare is essential for sustainable and profitable cattle production. It is also a legal responsibility. Each state and territory has its own animal welfare Act and accompanying regulations that affect people who own or work with animals. People responsible for cattle welfare are those handling and in charge of cattle throughout the supply chain and include owners, representatives of owners, property staff, contractors, transport workers, livestock exporters, saleyard and abattoir staff, spelling establishment operators and meatworks workers.

Owners, managers and handlers have a duty of care to ensure that the animal’s basic needs are met. They are responsible for providing:

• sufficient food and water to maintain full health • appropriate living conditions if housed • opportunity for cattle to display normal behavioural patterns • protection from injury or disease through prevention, and treatment if required • appropriate handling and transport • skilled, knowledgeable and conscientious animal management • humane killing if the animal if suffering, or is slaughtered for meat.

It is important to know how much water that different sized cattle need to drink each day - for more information refer to the Infrastructure (waters section of Property Management Module 4). It is also important to know how much feed that cattle need for maintenance of liveweight — for further information refer to the Supplementation section of Herd Management and Production Module 6.

Photo 7.7 Well fed cattle

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Further Information on Animal Welfare The national animal welfare code of practice: Model code of practice for the welfare of animals – cattle

See also Australian Animal Welfare Standards and Guidelines

Northern Territory Animal Welfare-Department of Primary Industry and Fisheries-Primary Industry

Queensland Animal welfare and ethics | Agriculture, Fisheries & Forestry | Queensland Government

Western Australia Department of Agriculture and Food - Animal Welfare

Animal Handling Animal handling is an important component of animal welfare. Poor and inappropriate handling can cause excessive stress and fear in livestock, which in turn leads to reduced productivity, such as low liveweight gains, low conception rates, low milk yields, high pre-weaning mortalities and high susceptibility to disease.

The usual situation when livestock are handled involves unpleasant experiences for the animals. For example, they may be:

• mustered and walked long distances to yards where they may be: »» separated from group mates or mothers »» run through races »» restrained »» vaccinated, dehorned or castrated. However there are a number of things that can be done to reduce an animal’s fear of people and places. These include ensuring the animal’s first experience with humans is a good one, training young cattle, and ensuring yard handling and overall movement is as neutral or positive an experience as possible.

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Animal’s first experience An animal’s first experience with humans should be a good one. Why? If the first experience of people is a bad one, then a permanent fear memory can be produced. Animals that have had a bad first experience in a certain place, or with a certain person, will attempt to avoid that place or person in future. With repeated unpleasant experiences, it becomes more likely that animals will generalise that all interactions with all people will be unpleasant. The animals become increasingly fearful of people and increasingly stressed by the presence of, and contact with, people. It is recommended that young animals first experience people moving amongst them quietly, in a way that does not cause fear or pain. Do this before any handling which involves pain such as branding. Weaners should be fed immediately after weaning - a positive experience. Training of young cattle Training of young cattle has life-long impacts. The primary objective of weaner training is to train them to not be fearful when being handled. The easiest way to train all animals is by hand feeding and gentle handling during this process. During weaner training, ensure cattle associate the feeding with humans. Provide cattle with good yard handling experiences. Teach them to lead during driving and droving, which are the objectives of ‘tailing’. Teach them to eat supplements such as weaner pellets or a protein meal. Yard handling Make ongoing yard handling as neutral or positive an experience as possible. If each time cattle are brought into the yards they are hit with jiggers and pieces of poly-pipe, then they anticipate that future experiences in the yards will result in pain. They will learn this very quickly and will soon demonstrate their learning by a reluctance to enter the yards. If on the other hand, being in the yards is a good or neutral experience because the animals are handled correctly, these animals will quickly learn this and demonstrate their learning by willingly entering the yards. Yard-work can become a neutral or a positive experience for livestock if they do not experience undue fear or pain, and if they are ‘rewarded’ with water, shade, and hay or other feed. People who yard-train weaners will recognise some of these aspects in that process. Good movement Good handling of cattle when moving them involves exploiting their natural tendencies such as their flight zone, herding or bunching instincts and blind spot (cattle can’t see behind). Low stress stock handling aims to achieve what is called ‘good’ movement. Good movement is when animals are moving smoothly and are all heading in the same direction; such as when cattle walk to water and it encourages other animals to follow. ‘Bad’ movement prevents animals from following and is shown when animals are hesitant to move, start to turn away from the desired direction of travel and/ or attempt to circle or cut back. The basic principles apply whether moving individual animals or groups. The method works best with animals that have a fairly large flight zone. Apparently, it is also difficult to apply with pure-bred Brahman cattle, as these animals respond much better to following a leader. However, it is reported to work with Brahman cross cattle.

Animals that are handled quietly and calmly on a regular basis learn that the handler(s) will not pressure them so hard as to cause fear and panic. So each time you work your animals in this way, you are training them.

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Identifying and culling animals that have very poor temperament will improve herd handling experiences for both humans and other cattle. Ensuring that bulls and breeding females do not have poor temperament is extremely important, as fearfulness is a highly-heritable trait. For further information see Herd Management and Production Module 6.

(This section on handling was adapted from Handling cattle | FutureBeef.) Cattle handling facilities Yards and other cattle handling facilities should be well constructed and maintained to minimise injury, stress and even disease. Thought should be given to how these are constructed so cattle flow through naturally and don’t become over crowded.

Make sure there are no protrusions in yards on which cattle can injure themselves. The risk of leg injury to animals can be reduced by ensuring loading ramps have a good foot grip surface. At the top of the ramp, cattle can get their legs caught between the ramp and the road train if the platform doesn’t cover the gap. Training courses on cattle handling Low Stress Stock Handling

Individual training providers give practical and valuable courses. Contact your extension officer for details. www.lss.net.au/training.htm

Case Study Examples for Cattle Handling: Lamboo Station, WA

Improved infrastructure development on Lamboo has significantly assisted animal welfare through a quieter system of mustering using traps and lanes and which includes the reduction in helicopter mustering.

The new cattle yards also improve handling of livestock by reducing stress on both animal and man. Dust control using water sprinklers is particularly important.

Staff training in low stress cattle handling has also improved animal welfare.

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Loading and Transport (is it fit to load?) Good preparation of livestock is essential to minimise stress and injury during transport. Good communication and cooperation between the cattle producer (owner/owner’s representative) and the transport driver will maximise animal welfare while the animals are in transit and also improve meat quality.

The truck driver will decide on the loading density, after consultation with the producer or producer’s agent, and using his/her own knowledge and experience. The driver is responsible for the welfare of the animals, from loading to unloading. Animal selection Producers should ask these questions before loading any animal for transport:

• Has the animal been prepared according to the relevant husbandry and transport code and/or Export Standards, as applicable? • Can it walk normally and bear weight on all four legs? • Is it free from visible disease or injury? • Can it keep up with the mob at both loading and unloading? • Can it see out of at least one eye? (Export Standards stipulate that animals must be able to see from both eyes). • Is it in late pregnancy? • Is it a newborn or young animal that requires special consideration?

And if in doubt, leave it out. If you have any queries about an animal, please contact either your relevant state or territory department stock inspector. Feed and water When cattle are taken off water and feed (fasted), they begin to lose weight. Initially, most of this weight loss is ‘gut fill’ (faeces and urine). The greatest weight loss will occur in the period between yarding and loading.

When cattle are fasted before transport, the floors of trucks are drier and less slippery. The animals travel better; they are cleaner and easier to unload. It is therefore recommended that cattle be kept off water for 6–8 hours and off feed for 6–12 hours, before loading. However, it is against animal welfare regulations to have cattle off feed and water for too long. Therefore the actual time off water will depend on the weather, distance to be travelled, road conditions, and when the cattle last had access to water and feed.

If cattle are off feed and water for too long, some of the rumen microflora necessary for digestion of plant material will start to die. This is referred to as ‘dead bellies’ and can be a problem if cattle are kept off feed and water for more than 24 hours.

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Rest before transport After mustering, cattle should be given time to settle down before handling. After handling in the yard they should also be rested prior to transport. Rushing cattle causes stress, which leads to tough or dark-coloured meat, and more injuries and bruising.

A survey of deaths among railed cattle from western Queensland showed that fewer animals died in transit when they were rested for more than 12 hours between mustering and loading at the property yards. It is recommended that cattle are rested for 6–12 hours before transport. Handling prior to transport Correct handling of cattle reduces bruising and stress. Skilled handlers work cattle without noise and bustle to reduce animal stress. Cattle then travel better when they are quiet.

Cattle should be segregated according to horn status, size and sex. Mixing horned and hornless cattle should be avoided as it will increase the risk of injury and losses from bruising. Loading densities How many cattle are loaded into a pen on the truck (loading density) will depend mainly on the size, shape and horn status of the cattle. However weather conditions and the distance to be travelled will also be taken into account. Loading densities must be assessed for each pen in the stock crate to ensure the animals give each other mutual support, and are not too jammed up.

Overloading cattle in a truck increases the risk of an animal going down and being unable to get up again, especially horned cattle. Animals that go down significantly increase the risk of bruising, injury and mortality. Appropriate loading densities reduce stress, bruising and deaths during the journey. Table 7.1 details the loading densities of adult cattle for road transport recommended by Biosecurity Queensland.

Table 7.1 Recommended Loading Densities of Adult Cattle for Road Transport

Mean live weight of Floor area No. of head per 12.2 cattle (kg) (m2/head) m deck* 250 0.77 38 300 0.86 34 350 0.98 30 400 1.05 28 450 1.13 26 500 1.23 24 550 1.34 22 600 1.47 20 650 1.63 18

Source: ‘Loading Strategies for Road Transport of Cattle’, Biosecurity, DAFF, Qld

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New national standards and guidelines are being developed. Work is currently underway to update the existing Model Codes of Practice for animal welfare of cattle and land transport of cattle, as part of the new Australian Animal Welfare Standards and Guidelines. The new documents will incorporate both national welfare standards and industry ‘best practice’ guidelines (see link in information box that follows). Workshops • Northern livestock transporters course, DPIF (Northern Territory - contact Trisha Cowley and Trudi Oxley) • Road transport of cattle – loading strategies, Biosecurity Queensland (contact the DAFF Queensland Customer Service Centre

Photo 7.8 Weak Animal - Not Fit to Load

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Further Information on Animal Welfare The Welfare | FutureBeef website contains the following relevant documents under Transport

Is it fit to load? MLA (PDF 461 KB)

Transporting livestock – when are animals fit to load? DA F WA

Loading strategies for road transport of cattle, Biosecurity Queensland (PDF 254 KB)

Guidelines for feeding travelling cattle, Biosecurity Queensland (PDF 271 KB);

This NT Ag article is relevant to live export cattle: Feeding cattle in temporary holding facilities

Model code of practice for the welfare of animals – Land transport of cattle, Primary Industries Steering Committee (PDF 535 KB) and Animal welfare of cattle are current, until new guidelines are produced for the welfare of cattle and land transport of livestock.

See: new national guidelines for road transport of livestock and welfare of cattle

Live Export (is it fit to export?) The supply of appropriately prepared livestock that are fit for travel and export is critical for successful health and welfare outcomes that underpin the livestock export trade. Cattle that are suitable for live export include those that are:

• within a 200 kg and 650 kg liveweight range – note special conditions apply to cattle heavier than 650 kg • weaned for at least 14 days before sourcing • not emaciated, that is not very thin • not over-fat or extremely fat • horns should be 12 cm maximum length and blunt ended - however some markets specify ‘no horns’.

Different markets will have varying requirements in relation to the above factors, including in relation to health status and notifiable diseases. It pays to check these with your agent or buyer before sending cattle for live export.

The Australian Standards for the Export of Livestock set the basic standards for the conduct of the livestock export trade, as required by the Australian, state and territory governments. A copy of these standards can be found at:

Australian Standards for the Export of Livestock v2.3 - Department of Agriculture, Fisheries and Forestry

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The following photos provide illustrations of cattle which are either too thin or have enough body condition for live export.

Photo 7.9 Example of Cattle which are Photo 7.10 Exam ple of Cattle which are Emaciated or Very Thin Emaciated or Very Thin

Photo 7.11 Example of Cattle with Sufficient Body Condition for Live Export

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Extended Dry Seasons and Drought Owners, managers and handlers of cattle have animal welfare responsibilities during periods of extended dry season and drought. Under these conditions, the amount and quality of pasture in the paddocks do not supply enough nutrients for the maintenance needs of the livestock. As a result, cattle can lose weight and become weak and in poor condition. These conditions increase the chances of mortalities. To prevent animal welfare problems during extended dry seasons and drought there are a number of things an owner or manager can do. These actions include:

• early mustering • segregation of cattle • selling livestock • securing agistment • crisis feeding of weak and poor stock. Early muster If the wet season was a poor one and the property received little rain, it may be necessary to muster breeders earlier than normal and wean their calves younger and smaller than normal. While this means the calves will need to be fed well for a period of time with supplements, it may help save the cow’s life. The energy and protein requirements of a wet (lactating) cow are much higher than that of a dry cow. When the calf is removed, the cow’s nutritional needs are immediately reduced. Segregation Breeders with calves at foot that are too small to wean should be put in a paddock on their own, if at all possible. This means they can receive special treatment and be fed a supplement. This saves having to feed the whole herd which can be very expensive. Selling livestock If there isn’t enough grass in the paddocks to carry the current stock numbers, it will be necessary to sell stock. From an economic point of view, the best stock to sell are those that are not likely to improve in value much over the next 12 months. Predominantly this will be aged cows and dry cows that aren’t in calf and haven’t weaned a calf. Try to avoid selling next years’ steers (to be marketed), as the steer will increase in value more over the next 12 months than a breeder.

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Agistment If pasture conditions are particularly bad, it may be necessary to agist country to ensure survival of your livestock. Make sure you have an agistment agreement drawn up and signed. Transport cattle before their condition becomes too poor. If cattle to be transported are thin and in poor condition, it may be necessary to feed them in the yards on hay and protein plus energy supplements (such as pellets) prior to transport. It is important when transporting stock in poor condition that they are fit to load, for economic and animal welfare reasons. (Animal welfare is a legal responsibility). Depending on the cattle’s condition and the distance to be travelled, feed for at least four days before transporting. Crisis feeding of weak and poor stock To meet animal welfare criteria, crisis supplementation of weak and poor stock may be needed in the event of drought where other measures mentioned above have not been undertaken. Crisis supplementation is also recommended during unusual flood situations where cattle get caught on islands and run out of feed.

Crisis supplementation involves supplying energy and protein supplements, as well as roughage. As it is expensive, only the most susceptible cattle should be fed; that is those that are in very poor condition, weak and have run out of roughage. Crisis feeding for several days is also recommended for weak and poor condition stock before transport. Due to the cost of crisis supplementation, it is best to seek advice from a nutritional expert or departmental adviser or stock inspector before deciding what to feed.

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Workshops Nutrition EDGE Workshops cover nutritional requirements for maintenance and production.

Further Information on Extended Dry Seasons and Drought The following articles on the FutureBeef website are relevant to northern Australia.

Crisis feeding

Managing cattle in dry conditions/drought

‘Dry season management of a beef business: a guide to planning, managing and supplementary feeding’

Northern Territory The NT Ag article is relevant to live export cattle Feeding cattle in temporary holding facilities

Drought Assistance-Department of Primary Industry and Fisheries-Primary Industry

Queensland Animal welfare in natural disasters, Biosecurity Queensland

Welfare of drought-affected livestock, Biosecurity Queensland

Western Australia Managing cattle in dry conditions - pastoralists options and animal welfare responsibilities

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Photo 7.12 Moving drought affected cattle

Sources of Information Used in this Module “A guide to best practice husbandry in beef cattle – branding, castrating and dehorning”, Ross Newman, Meat and Livestock Australia, June 2007.

NWQ Beef Extension Notes. Felicity Hill, and other then NWQ staff. Department of Primary Industries. 2000.

Cattle and land management best practice in the Top End region 2011. Northern Territory Government Department of Resources 2012.

Health and disease | FutureBeef

Animal Health and Disease-Department of Primary Industry and Fisheries-Primary Industry

Department of Agriculture and Food - Animal Health

Husbandry | FutureBeef

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module eight human resource management

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd MODULE 8human resource management Contents

Introduction 3 Meat and Livestock Australia and State Departments 21 Organisation Structure 3 Sourcing Professional Development and Staff Employment 3 Finance for Professional Development 22 Staff Recruitment and Retention 3 Staff Training 3 List of Figures Professional Development of Senior Staff 3 Figure 8.1 Exam ple of an Organisation Organisation Structure 4 and Reporting Structure 4 Staff Employment 6 List of Photos Remuneration and Conditions 6 Cover Photo – Cowboy boots Superannuation 7 Photo 8.1 S tation Manager Reporting Workers’ Compensation 7 to the Board 5 Occupational Health and Safety 8 Photo 8.2 O H&S Training in Motor Bike Safety 8 Staff Recruitment and Retention 10 Photo 8.3 T ailing the Mob 11 ILC 10 Other Indigenous Corporations 10 Photo 8.4 Y oung Trainee Stockmen 12 Non-Indigenous Corporations 10 Photo 8.5 T raining in Hoof Care 14 Remote Jobs and Communities Photo 8.6 Gr aduate Trainees at Program (RJCP) 11 Warrigundu Station 15 Staff Training 12 Photo 8.7 Gr oup Training at Bohning Yards Alice Springs 16 Training Packages, Skills and Programs 13 Photo 8.8 P rofessional Training Training Institutions and Providers 14 for Senior Staff 19 Institutes of Technology 14 Photo 8.9 A ustralian Rural Leadership Training Providers 14 Program Graduates 20 Pastoral and Mining Companies 16 Photo 8.10 I t’s Not All About Work 23 Northern Territory

Cattlemen’s Association 16 back to start of manual Sourcing Training and Finance for Training 16 Professional Development of Senior Staff 18 Professional Development Skills and Programs 19 Professional Development Organisations 20 Australian Rural Leadership Program 20 Jawun 20 ORIC 21 Other Individual Providers 21

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Introduction

Module 8 provides details relating to Human Resource (HR) Management. HR issues that a pastoral manager needs to consider include how the business is organised to achieve its objectives, employment, recruitment and retention, and training and professional development. Organisation Structure Boards of Aboriginal pastoral corporations need organisation structures in place to manage the various roles, responsibilities and reporting relationships amongst staff of the pastoral business. An organisation structure guides individual task allocation, coordination and supervision of staff and is the basis for human resource management policy. Aboriginal pastoral corporations need to have a proper governance structure in place for strategic direction, responsibility and accountability, reporting and appointment of the Station Manager. Staff Employment In general, the northern cattle industry has been reliant on young people to provide the majority of labour. These young people receive ‘on the job’ training on pastoral stations. Managers need to be aware of award rates and statutory requirements for employment of staff. Staff needs to be supervised by competent Managers and Head Stockmen, who are aware of their duty of care in relation to Occupational Health and Safety (OHS).

At present, the industry is in a fragile financial state, resulting in a growing reliance by owners and managers on contract mustering, assisted by helicopters and other service providers. This is particularly relevant to those Indigenous properties which have small cattle herds and are unable to maintain full time mustering camps. Properties that rely on contractors as a key source of labour still need to adhere to statutory employment requirements. Staff Recruitment and Retention As northern pastoral properties often have a high turnover of staff each season, recruitment and retention is a major issue. Staff needs to be educated on the career pathways that can lead to positions such as Head Stockmen and Managers, or jobs in rural service companies such as livestock agents and advisers. It may be possible for experienced staff to start their own businesses as contractors. Language, literacy and numeracy skills are important to progress in a career in the pastoral industry. Staff Training Young people working in pastoral businesses benefit from training and employment, which enables them to become self-reliant and learn skills that can lead to rewarding careers in the pastoral industry. Training can be accredited to provide a formal qualification. Training which is not accredited such as horsemanship and low stress cattle handling, is also valued by pastoralists and trainees alike. Professional Development of Senior Staff Managers, Head Stockmen and Board members benefit from professional development to further their careers and improve corporate governance of a pastoral business. Important needs include training in leadership, business management and governance as well as the latest in land and cattle management.

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Organisation Structure

An organisation structure is a diagram showing the responsibilities and reporting relationships amongst staff of a business. It illustrates task allocation, coordination and supervision, which are directed towards the achievement of the business objectives. It should also include governance and administrative responsibilities.

Figure 8.1 Example of an Organisation and Reporting Structure

GOVERNANCE

Chairman of the Board

Board Board Committees

MANAGEMENT

Station Manager

Head Administration Stockman

Maintenance Stock Camp Sta

Source: MRS

Figure 8.1 represents the structure of a typical commercially-focused Indigenous pastoral corporation with separation of ownership, management and staff. The Board represents the owners and is responsible for the operation and control of the company, in line with good governance principles. This includes the statutory requirements of the business in reporting to shareholders (who may be the local community) and to Government agencies.

The Board provides strategic direction in planning, decision making and major projects. It normally appoints the Station Manager who executes the plan for the business. The Station Manager reports regularly to the Board and may also be a member of the Board (Executive Board Member).

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The Station Manager is responsible for the ‘on the ground’ implementation of land and livestock management and infrastructure programs. The Station Manager directs operations through his senior staff such as the Head Stockman and Administrative and Maintenance staff. These employees communicate directly with the Manager and each other, and direct the junior staff on the day to day activities that need to be carried out. The Station Manager should develop a culture where staff communicate with each other in a positive manner and find the property a good place to work.

The photo below shows Station Manager, Mr Robin Yeeda of Lamboo Station, Halls Creek, Western Australia (WA) and Mr Mark Chmielewski, Manager of the WA Indigenous Landholder Services, Perth. They are reporting to the Nunjiwirri Aboriginal Corporation Board.

Photo 8.1 Station Manager Reporting to the Board

Source: KIMSS (DAFWA)

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Staff Employment Remuneration and Conditions The Board is normally responsible for setting salaries and employment conditions for the senior staff. This may be achieved through a remuneration committee of the Board. This committee may also set the direction of other staff or human resource matters as described in this section, including training and OHS.

From 31 December 2010, all employees are covered by the relevant ‘Modern Awards’ administered by Fair Work Australia. The Award Wages and Employment Standards for Pastoral Workers, as they relate to the Northern Territory (NT), Queensland (Qld) and Western Australia (WA) are given in the box below.

Award Wages and Employment Standards for Pastoral Workers Federal Award NFF 2010 Pastoral Award Fact Sheet

Federal Pastoral Award

Northern Territory NT Pastoral Award - NTCA Wages and Conditions Guide

NFF - Fair Work Information for Agricultural Workers

Fair Work – Wages Record Keeping Forms

Queensland The Federal Pastoral Award covers rural workers in Qld. The links detailed above for the Federal and NT awards provide all the information required for Qld workers.

Western Australia The Federal Pastoral Award covers rural workers in WA. The links detailed above for the Federal and NT awards provide all the information required for WA workers.

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Statutory Requirements As part of the statutory requirements for the employment of staff, it is necessary to provide both superannuation and workers’ compensation. Superannuation Since its introduction, employers have been required to make compulsory contributions to superannuation on behalf of most of their employees. From 1 July 2002, the minimum contribution has been set at 9% of an employee’s ordinary time earnings. The 9% is not payable on overtime rates, but is payable on remuneration items such as bonuses, commissions, shift loading and casual loadings. Workers’ Compensation All Australian employers need to have a worker’s compensation insurance policy that covers their workers for any injury sustained either in the workplace or, in most cases, travelling to and from their home to their place of work. Workers’ compensation is covered by individual state departments that have the responsibility of managing workers injured during work, their rehabilitation and their eventual return to work.

Western Australia: WorkCover WA is the state government department charged with the oversight of injury to workers, their medical requirements and their subsequent rehabilitation.

Northern Territory: NT Worksafe is the territory government department in charge of overseeing the management of workers’ compensation and work safety. It is the responsibility of the employer to arrange suitable workers’ compensation cover from an NT Worksafe-approved insurance company.

Queensland: WorkCover Qld is the authority responsible for overseeing the workers’ compensation and injury management system, assisting recovery at work and liaising with all parties involved to achieve the best possible outcome. In most cases employers must insure their workers through WorkCover Qld.

Work Cover Information for each Jurisdiction WorkCover WA

Northern Territory WorkSafe

Northern Territory Workers Compensation - Worksafe

WorkCover Queensland

Applying for a Workers’ Compensation Policy through WorkCover Qld

www.workcoverqld.com.au/insurance/do-i-need-a-policy/taking-out-a-policy www.workcoverqld.com.au/forms-and-resources/useful-links

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Occupational Health and Safety Occupational Health and Safety (OH&S), also known as Workplace Health and Safety (WH&S), is a program to create a healthier workplace as well as reduce workplace injuries and deaths. To do this, all levels of government have introduced rules and regulations to protect workers from unsafe or unhealthy practices.

OH&S implementation in the workplace is important for both legal and financial reasons. All businesses have a ‘duty of care’ to employees and any other person who may enter a work site or workplace. This concept of ‘duty of care’ forms the basis of the legal requirements of the various OH&S Acts and Regulations. New work health and safety (WHS) laws commenced on 1 January 2012 in many states and territories to harmonise occupational health and safety (OH&S) laws across Australia. The following duties and obligations for employers are relevant to the new legislation:

• provide a safe and healthy workplace for all employees and other people who attend the workplace: • provide work systems that are safe and without risk to health • train employees to work in a safe and competent manner • take steps to prevent injury, illness and disease • consult with employees and their representatives over OHS matters • provide for workplace inspectors to visit workplaces, investigate accidents and enforce provisions of the legislation.

Photo 8.2 OH&S Training in Motor Bike Safety

Source: Rural Industry Training and Extension

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Further Information on OH&S Australian Government Business Topics – Occupational Health and Safety Western Australia WorkCover Western Australia

Managing Safety Hazards in the Workplace

Northern Territory The Northern Territory Cattlemen’s Association OH&S manual specifically for the cattle industry

Northern Territory WorkSafe

Northern Territory WorkSafe – Safety Management

Northern Territory WorkSafe – Legislation Update

Queensland Qld Workplace Health and Safety

Qld WH&S Rights and Obligations

Qld Small to Medium Enterprises Program

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Staff Recruitment and Retention

According to a 2007 report on Indigenous Employment and Engagement in the Northern Pastoral Industry, the industry experienced difficulty attracting and retaining skilled workers, to the extent that the production capacity and profitability of businesses was affected. These staff recruitment and retention difficulties occurred, despite the fact that the industry operated in a region where there are large Aboriginal populations experiencing very high unemployment rates; and where there is a strong history and association with the pastoral industry.

The Indigenous employment situation has worsened since then, due to the severe downturn in the live export trade. Despite this, there are obvious benefits in development of a socially and economically stronger pastoral industry, through improved recruitment and retention of experienced Aboriginal staff.

Employment on Indigenous pastoral stations is being fostered in various ways by the Indigenous Land Corporation (ILC), other Indigenous and non-Indigenous corporations and government employment programs. ILC The ILC operates their cattle businesses with a strong focus on the employment and training of local Indigenous people. They co-operate with non-Indigenous corporations in organising training.

ILC has a wholly owned subsidiary, National Indigenous Enterprises Pty Ltd, which advertises throughout WA, NT and Qld for Managers and Head Stockmen (Trainee Supervisors) for ILC stations. According to its recruitment advertisements, ILC has residential employment-based training programs on each of its owned/operated properties which prepare Indigenous Australians for careers in agriculture. Successful trainees are provided with job opportunities within ILC businesses or with other pastoral industry employers. Other Indigenous Corporations Indigenous pastoral corporations recruit from their own communities. They also employ non ‑Indigenous staff, when necessary. Many of the larger stations have an annual recruitment and training program. Both larger and smaller stations receive support from the Indigenous Landholder Services, Kimberley Indigenous Management Support Service (KIMSS) and Pilbara Indigenous Landholder Service (PILS) in WA and Indigenous Pastoral Program (IPP) in the NT. These services and programs have had a positive impact on property productivity, employment and economic development in the northern pastoral industry. Non-Indigenous Corporations Most non-Indigenous corporations have corporate social responsibility or equal opportunity policies in relation to assisting Indigenous people to be involved in the cattle industry. They are aware that employment of local Aboriginal people in more remote areas can reduce recruitment on-costs, and create a social benefit for the wider community. This extends to encouraging good Indigenous contractors to provide mustering and weed and feral animal control.

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Training is linked to employment and management and staff need to have a strong and cohesive level of cultural awareness. Managers have to be patient in establishing relationships to improve employee reliability. Retention is enhanced if a number of employees come from the same community.

The Northern Territory Cattlemen’s Association (NTCA) Indigenous Employment Program is a partnership between the ILC and the NTCA. The program aims to help Indigenous youth make the transition from the Community Development Employment Projects (CDEP) Program into the pastoral industry and develop and strengthen the sustainability of the pastoral industry workforce.

The program currently supports up to 65 participants throughout the NT. The NTCA is responsible for recruitment, provision of industry-recognized training, placement into jobs and on-station mentoring. It hopes to expand Indigenous participation in the pastoral industry across the NT. Career pathways are established for participants to develop professionally.

The program has been running for three seasons and has seen an annual increase in participation. It has secured ongoing funding until June 2013 and has offices in Alice Springs and Katherine. Remote Jobs and Communities Program (RJCP) The CDEP Program and other employment services will be replaced by the Remote Jobs and Communities Program (RJCP) from 1 July 2013. CDEP has been an important support for Indigenous people seeking work in the pastoral industry. It is intended the RJCP will continue to be an important employment strategy tool for Indigenous people.

Photo 8.3 Tailing the Mob

Source: Beef Central

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Staff Training

Training, especially for young people, needs to be competency-based and linked to real employment outcomes such as ‘job starts’ or workplace experience after a training period. There is a shortage of skills in the northern pastoral industry. Many non-Indigenous and Indigenous pastoral operations have positive and culturally sensitive programs to train and employ Indigenous youth. Thus there are opportunities for young Indigenous people in communities to:

• acquire knowledge and skills in the pastoral industry • reconnect with their land and country • reconnect with their forefathers’ recent history on cattle stations where they: »» used their knowledge of country »» developed skills in horsemanship, cattle mustering and handling. Young people in northern Indigenous communities may be able to find other land- based traineeships and employment opportunities. These include roles as environmental rangers or contractors providing fee for service management of weeds and wildfire or roles in tourism, hospitality and meat processing. Some of these skills can also be applied to related activities such as transport, roads, building, construction and mining services. Photo 8.4 Young Trainee Stockmen

Source: KIMSS Group training on-site or ‘on the job’ offers opportunities to Indigenous youth to gain social skills, independence and confidence. Often trainees from the same community can provide mutual support; so identifying training buddies is important. A particular community can establish links with a pastoral station. On-site training provides a means to experience a situation away from a welfare mindset, in an environment free of drugs and alcohol. It requires the support of Traditional Owners including aunts, uncles and older men and women in the community.

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Career advancement after training may be limited by low language, literacy and numeracy skills in Indigenous youth. Again the support of the community is required in getting youth to attend school to alleviate this barrier, and for trainers to be aware of this limitation. Numeracy and literacy assistance is available at training institutes, but attending school is a priority. Schools may be able to take advantage of work experience opportunities on local properties, to introduce their students to the cattle industry. Training Packages, Skills and Programs Competency-based training units are mapped to the National Training Qualification Package. Once participants have completed a selected number of units which may include Recognition of Prior Learning (RPL) by an independent Recognised Training Organisation (RTO), they can receive a Certificate.

Available training includes:

• Certificate I, II and III, Rural Operations • Certificate II, III and IV Agriculture (Beef Cattle Production) • Certificate II Animal Studies • Certificate II Conservation and Land Management • Certificate II in Meat Processing (Abattoirs) • Chemical Use Accreditation • Low Stress Cattle Handling • Horsemanship/Colt Starting • Hoof Care/Horse Shoeing • Maintenance of plant, machinery and improvements (vehicles, motor cycles, fencing and watering points) • Fire control and management • First Aid • Occupational Health and Safety (OH&S)

A separate training opportunity which is relevant to pastoral communities is the Defence Indigenous Development Program (DIDP) — a joint initiative between the Department of Defence, the Department of Education, Employment and Workplace Relations and the NT Department of Education and Training. It involves a seven month residential program that aims to provide young Aboriginal and Torres Strait Islander adults with the life skills and confidence to secure opportunities and sustain continuous employment of their choice.

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Photo 8.5 Training in Hoof Care

Source: Beyond Billabong Training Institutions and Providers Training institutions and providers give ongoing support to the Indigenous pastoral sector and are important in an industry with a high turnover of staff and competition from the mining industry. Institutes of Technology • Charles Darwin University campus in Katherine • Kimberley Training Institute in the Kimberley. Training Providers Many training providers deliver accredited training modules on property and at centres which include those focused on imparting skills to Indigenous people. Others may not provide accredited training, but it is nevertheless valued by pastoralists (such as horsemanship and low stress cattle handling).

Residential training properties provide a valuable service to regional communities and often offer guidance to troubled youth. These include:

• Bina-Waji Nyurra–Nga (Burks Park) campus at Halls Creek in the Kimberley, WA which is mentored by KIMSS • Out Station North at Springvale, North Qld which also provides links to employment opportunities.

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Indigenous Land Corporation The ILC has training facilities where youth ‘live in’, are paid wages and placed in jobs on northern Australian properties as follows:

• Kimberley region, WA: »» Roebuck Plains Station (pastoral – beef & export depot), east of Broome »» Myroodah Station (pastoral-beef ), east of Broome on Fitzroy River »» Home Valley Station (pastoral and tourism), in the east Kimberley • Cape York, Qld »» Merepah Station (pastoral-beef ), near Coen • Far North Qld: »» Crocodile-Welcome Stations (pastoral-beef ), near Laura »» Bulimba Station (pastoral-beef ) via Chillagoe • South East Qld: »» Mimosa Station (pastoral-beef ), near the Bunya Mountains • NT: »» Gunbalanya Station and Meats (pastoral-abattoir) in Arnhem Land »» Warrigundu Station (pastoral-beef ) near Katherine.

Photo 8.6 Graduate Trainees at Warrigundu Station

Source: ILC

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Pastoral and Mining Companies Non-Indigenous and Indigenous pastoral companies, as well as mining companies on pastoral land, are proactive in offering in-house training to Indigenous youth. This provides control over curriculum to meet their specific requirements. It may include a combined job-ready and life skills course, followed by a pre-vocational course through institutes and other Registered Training Organisations (RTOs). Workplace Language, Literacy and Numeracy (LLN) can be introduced into the pre-employment courses to assist Indigenous youth. Station-based training is ‘hands on’ and can extend to OH&S and First Aid. Northern Territory Cattlemen’s Association The NTCA has training facilities offering practical cattle handling courses at Bohning Saleyards in Alice Springs.

Photo 8.7 Group Training at Bohning Yards Alice Springs

Source: Northern Territory Cattlemen’s Association Sourcing Training and Finance for Training The following organisations can assist in arranging training for pastoral industry skills as well as other programs as the need arises.

Indigenous Landholder Services (ILS) WA, including KIMSS and PILS and supported by Farm Training WA.

Indigenous Pastoral Program in NT (DPIF, ILC, Land Councils and NTCA)

ILC, either directly or in conjunction with the training programs listed above.

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Pastoral companies also offer focused Indigenous training schemes – these schemes can be a term or condition in sub-leasing or grazing licence arrangements they have with Indigenous pastoral land holders. Some of these companies provide the training through the programs offered by ILS, IPP and ILC and described above.

Key sources of finance to pay for training include:

• ILC • state and territory departments of agriculture/primary industry • federal bodies including the Department of Education, Employment and Workplace Relations (DEEWR) • training institutes • Aboriginal corporations. Employers who employ Aboriginal and Torres Strait Islander peoples can get financial help from the Australian Government through the Indigenous Wage Subsidy (IWS) program. Employers are paid an incentive when they employ eligible people on a continuing basis after 13 and 26 weeks in a job. Some employers may also be eligible for retention bonuses and funds to cover training costs.

Individual pastoralists, who value training and developing their staff, often finance it from their own budgets.

Training for Indigenous People in the Northern Pastoral Industry

• Training can be accredited to provide a formal qualification. • Training which is not accredited such as horsemanship and low stress cattle handling, is valued by pastoralists and trainees alike. • Language, literacy and numeracy skills are important to progress in a career in the pastoral industry. • Community support is necessary to improve school attendance and keep youth in training. • Stations can provide high school students with work experience in the cattle industry.

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Contacts for Training Who Can Also Recommend Private Providers WA: Indigenous Landholder Services (KIMSS and PILS)

NT: Indigenous Pastoral Program

Northern Australia: Indigenous Land Corporation Employment and Training

NT: Charles Darwin University Katherine Campus

WA: Kimberley Training Institute

Northern Australia: Indigenous Wage Subsidy

Professional Development of Senior Staff Staff need to continue training beyond initial qualifications to maintain and upgrade their skills for a career in the pastoral industry. Managers, Head Stockmen and Board members benefit from professional development aimed at leading and regenerating regional and remote communities. Successful leadership in this area attracts some of the benefits of entering the mainstream workforce, including having a stable, local and dedicated workforce.

There are a number of government, corporate, industry, and consulting organisations and individuals from both the Indigenous and non-Indigenous sectors, with skills and experience who are keen to help Indigenous communities. It is important for communities to feel comfortable with the programs and be willing to access these avenues of assistance.

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Professional Development Skills and Programs For senior staff and Indigenous corporation boards, there is a need for professional development that covers leadership, business management and governance. Training in latest best practice in land and cattle management is also very important.

There are a number of training programs which can assist Indigenous pastoralists:

• Australian Rural Leadership Program • Governance: Improving the Governance of Pastoral Enterprises (Direction) • Governance: Monitoring the Strategic Directions of the Business (Indigenous) • Office of the Registrar of Indigenous Corporations (ORIC) Governance Training • Business Management (Property Management and Business Planning) • Certificate IV in Training and Assessment (for which experienced managers may achieve Recognition of Prior Learning) • Workshops in business management, sustainable grazing, animal nutrition and reproduction and genetics.

Photo 8.8 Professional Training for Senior Staff

Source: Beyond Billabong

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Professional Development Organisations Australian Rural Leadership Program Senior Indigenous and non-Indigenous pastoralists in northern Australia and their communities have benefitted from participation in the Australian Rural Leadership Program, the flagship program of the Australian Rural Leadership Foundation. This program provides an intensive leadership course which brings together people from many different parts of Australia. The program is about creating leaders who provide the backbone to rural and regional Australia across a range of agriculture and social service sectors.

The program is delivered over 17 months with participants involved in a comprehensive program that equips them to advance the interests of their industries, communities, and rural Australia. Some Federal government assistance is provided to the program and participants make a monetary contribution to demonstrate their commitment.

The photo that follows shows two Indigenous graduates of the program, Mr Alan Lawford, Manager of Bohemia Downs, Halls Creek and Mr Steve Craig, Manager of Mistake Creek, Katherine.

Photo 8.9 Australian Rural Leadership Program Graduates

Jawun Jawun provides skilled people from their corporate partners and connects them with Indigenous communities to share knowledge and experience. The aim of the program is to assist Indigenous people in their desire and determination to regenerate their communities.

Knowledge and expertise is shared by:

• supporting Indigenous leadership to deliver their strategies and vision • using corporate and philanthropic involvement to build the capabilities of Indigenous people and organisations • fostering Indigenous economic and social development in a way that encourages people to take responsibility for their own lives

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• focusing efforts ‘in place’ with communities who are ready and willing to engage • building a network where Indigenous, government, corporate and philanthropic ideas can be shared. ORIC There is suitable governance training for Indigenous corporation board members through the Office of the Registrar of Indigenous Corporations (ORIC). Other Individual Providers Previously, FarmBis was an important source of funds for training in farm business management, bookkeeping and accounting; however the FarmBis program has now been discontinued.

In WA, the Department of Agriculture and Food provides assistance for this training through Farm Training WA.

Grazing for Profit schools for Indigenous managers has received some support from the ILC.

Some professional development providers have also recognised the gap in governance and business management skills in Indigenous businesses and can provide these services. Meat and Livestock Australia and State Departments

Workshops and Field days are Arranged by These Bodies Animal Nutrition – Nutrition EDGE

Reproduction and Genetics – Artificial Insemination, Breeding Edge, Breeding For Profit, Bull Selection Pregnancy Diagnosis

Business Management – Business EDGE, Testing Management Options, Stock Course

Sustainable Grazing- Grassfed Beef Production and Production Feeding Stoctake: Balancing Supply and Demand, Rangeland Management, Grazing Land Management EDGE

http://futurebeef.com.au/resources/workshops/

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Sourcing Professional Development and Finance for Professional Development Sourcing professional development training and funds is the same as that described for training. The key sources are:

• The ILS WA and the IPP NT can broker the provision of staff development programs and organise workshops • The technical institutes have higher level programs such as Training and Assessment. • Finance for professional development is available from state and federal departments and the ILC. • The Australian Rural Leadership program is accessible by nomination and partly funded. • Jawun funds skilled people who can work through ILS and IPP. • Pastoral companies can invite Indigenous Head Stockmen and Managers to attend on-station workshops. In a number of Indigenous pastoral enterprises, assistance for the Board and management has been provided by way of an Indigenous or non-Indigenous industry mentor. In some cases this has been accommodated through a seat on the Board for a non-executive board member to offer practical advice in both station and business management.

Usually, the mentor is selected by the Board from a list of trusted and respected Indigenous and non ‑Indigenous people who:

• are successful and well known in the industry • have a lifetime (or long standing) experience in practical station management • have an empathy with Indigenous people • have good communication and people skills.

People who have fulfilled this role have contributed to the success of the respective businesses, particularly in their start up phase and in times of difficulty for management and business development.

Officers in the ILS and IPP programs include skilled and experienced staff from the Land Councils, ILC, peak industry bodies and consultants – they provide valuable mentorship as part of their normal duties and service. Some pastoral companies have also added these roles and responsibilities to their executive and senior management positions, to liaise with Indigenous communities.

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Photo 8.10 It’s Not All About Work

Professional Development for Indigenous People in the Northern Pastoral Industry

• Managers, Head Stockmen and Board members benefit from professional development to further their careers and improve corporate guidance. • Important needs include training in leadership, business management and governance as well as the latest in land and cattle management. • Corporate and philanthropic involvement can build the capabilities of Indigenous people and organisations. • ILS, IPP and state departments can broker provision of staff development programs and organise workshops. • A respected Mentor to the Board and to Management is a valuable addition to professional development and the success of an Indigenous pastoral business.

Further Reading Australian Rural Leadership Program

Jawun

ORIC Governance Training

Database for Educational and Vocational Training in Australia

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module nine diversification and other income earning opportunities

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd diversification and MODULE 9 other income earning opportunities Contents

Introduction 3 List of Tables Sub-leasing or Letting Grazing Licences 5 Table 9.1 S mall Scale Abattoir Activity in the Northern Territory 14 Agistment 8 List of Photos Agistment WA 8 Cover Photo – Dale Gorge Agistment in NT 8 Karijini National Park Agistment in Qld 8 Photo 9.1 H ome Valley Station 13 Contracting 9 Photo 9.2 G unbalanya Abattoir 15 Contractor Duties 9 Photo 9.3 Elijah Whitehirst, Owner Duties 10 Gunbalanya Abattoir’s First Employment on Non-Indigenous Indigenous Apprentice 15 Cattle Stations 11 Photo 9.4 M osaic Burning at Fish River Station NT 17 Employment as Rangers 11 Mining Royalties and Employment 12 back to start of manual Operating an Indigenous Training Business 12 Burks Park Training Centre WA - horsemanship, cattle handling 12 Myuma Group - Plant hire, construction, mining, horticulture, hospitality, catering 12 ILC Roebuck Plains WA – On- the- job cattle handling 12 ILC Queensland Stations – On- the- job cattle handling 12 Tourism 13 Home Valley Station 13 Small Scale Abattoirs 14 Gunbalanya Meats 15 Palumpa 16 Never Never Meatworks (Mataranka) 16 Other abattoirs 16 Carbon Farming 17 Carbon Farming Initiative 17 Business Support and Grants 17 Issues to Consider 18 Northern Australia Models 19

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Introduction

Traditional Owners (TOs) through Aboriginal corporations have title to significant areas of pastoral land in northern Australia. Although the corporations represent their local communities, they cannot employ everyone from these communities on their pastoral properties.

Land ownership of pastoral properties, in addition to its cultural significance, may best be viewed as an investment by Aboriginal corporations which can provide a return to management and opportunity for capital growth. Even this may be limited because of the size, stage of development and livestock carrying capacity of some properties.

Nevertheless, the sustainability of Indigenous pastoral communities can be enhanced through land and cattle-based diversification and other income earning opportunities which help to broaden economic activity, and create a more balanced income stream.

Remote pastoral communities can also share in other expanding economic activities not directly related to cattle raising such as tourism, mining and carbon farming. If these activities occur on or near homelands, it will provide social cohesion through attachment to the land, access to sacred sites as well as cultural and traditional activities including hunting, fishing and gathering, underpinned by Native Title. Diversification and Income Earning Activities Module 9 expands on land-based diversification opportunities available to Indigenous pastoral rural communities to:

• increase their income • reduce business risks from relying solely on the cattle market for income • provide their people with a broader range of skills to improve their employment prospects. The module also provides examples and models of the available business opportunities. Implementation requires more investigation by Indigenous pastoral interests and communities through business plans, and sourcing of finance or assistance programs where necessary.

Activities covered in this module are as follows: Sub-leasing and Agistment Indigenous-owned properties which do not have the cattle, or means to finance cattle, can still utilise the available land and labour by being paid fees by other people to run cattle on their land. Such land use agreements involve sub-leasing, provision of grazing licences or agistment. Contracting Land use agreements, and the necessity for Indigenous owners to operate their own properties, opens up income earning opportunities for contractors from communities to perform mustering and fencing services. Other opportunities include earning fees for service to control fires, weeds and feral animals.

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Employment on Non-Indigenous Cattle Stations Non-indigenous cattle stations. particularly corporations, have a policy of directly employing and training people from local Indigenous communities. Employment as Rangers Environmental activities can extend to paid employment as rangers as part of the ‘Working on Country’ Program. Mining Royalties and Employment Royalties from mining activity in northern pastoral areas are an important source of finance for many remote Indigenous communities and Land Councils. Mining companies also have a corporate social responsibility to employ local people. Operating an Indigenous Training Business Indigenous groups can provide training in cattle management, construction and cultural heritage. Small Scale Abattoirs Some Indigenous corporations are interested to become more involved in meat processing through ownership of small local abattoirs that kill their own cattle, and marketing and retailing the meat to local communities and tourist and mining businesses and settlements. Tourism Tourism is an expanding industry throughout northern Australia. Communities could be involved through ecotourism, and creative artistic and cultural activities. Ownership and employment possibilities in the region include roadhouses, hotels and motels at outback centres, which are not located on land used for pastoral activities. Other community possibilities are bee-keeping and bush tucker-related enterprises. Carbon Markets There are a range of opportunities emerging for Indigenous landowners in the carbon market Carbon sequestration, abatement and storage and biodiversity protection, are emerging as a new economy in northern Australia.

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Sub-leasing or Letting Grazing Licences

Traditional Owners may agree to sub-lease their land or grant grazing licences (in the case of the Northern Territory (NT)) to other pastoralists to run their cattle or to allow use for non-pastoral activities (See also Land Information Module 3). Those who wish to run cattle on unutilised Indigenous land may find this attractive, if they do not wish to invest in more land themselves. It gives access to alternative markets, allows expansion of their herd without borrowing to purchase land, and can provide the third party lessee with some protection against falling land values.

These land use agreements are contracts, and it is essential that understanding be reached on the specific terms that are to apply to the contract. Terms or arrangements should be committed to writing and signed by all parties. Agreements may apply to all or part of the property and there may also be instances of multiple agreements on the one property.

Sub-leasing or agreeing to a grazing licence can be a long term strategy for properties with limited pastoral potential, or as part of a transitional strategy for holdings with significant pastoral potential. In the former case, the emphasis of the sub-lease agreement will be on financial returns, while the latter case should also cover the transfer of skills and knowledge. However, a depressed cattle market can make it difficult to attract interest from third parties wishing to enter into sub-leasing or grazing licence agreements on Indigenous lands, since both parties must be able to profit from the arrangement.

In Western Australia (WA) and Queensland (Qld), where Indigenous properties generally occupy pastoral leases, sub-leasing of all or part of leasehold land requires the written approval of the Minister. At present, there are 10-12 Indigenous Pastoral Leases with sub-leases in the Kimberley and Pilbara. As all WA pastoral leases expire on 30 June 2015, no sub-leases can be approved for a period extending beyond 29 June 2015.

In the NT, most Indigenous pastoral activity takes place on Aboriginal Land Trust areas which is Aboriginal freehold. There, the negotiation of grazing licences between Traditional Owners and other local and interstate pastoralists takes place through Pastoral Land Use Agreements (PLUAs) driven by the Land Councils under the Indigenous Pastoral Program (IPP). Consultations found that some 17 properties controlled by Traditional Owners in the NT have issued PLUAs, under Section 19 of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth) (ALRA). These land use agreements have been entered into with non-Indigenous and Indigenous operators, including the Indigenous Land Corporation (ILC). However, these are in a state of flux because of the downturn in the cattle market.

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In all three jurisdictions in northern Australia, there are various types of agreements which can benefit Traditional Owners and local communities through the pathways listed below, or a combination of all or some:

• an annual fee from sub-leasing or licensing and may include a portion of the profit from the cattle enterprise being conducted on the sub-let land • fee for services such as rangeland and station operations, fencing and mustering contracts • provision of training for young people and interested mature people • sustainable grazing levels, compatible with cultural and natural resource values • redevelopment of pastoral infrastructure for the future benefit of Traditional Owners • provision of Indigenous ranger services for environmental and rangelands monitoring and management • ability for Traditional Owners to run their own herd • maintenance of land rights involving access to Country to hunt, fish and visit sacred sites • maintenance of community living areas.

The owner of the cattle may look after management and marketing, or utilise the management services of the land owners. In both cases the type and number of stock should be stated and properly identified, particularly if there are multiple agreements on the one property. The ability to commence a sub-leasing or licensing agreement may require development assistance from the ILC, to prepare a property management plan and erect basic infrastructure.

Indigenous Pastoral Program (IPP) staff in the NT, monitor pastoral-related activities and ensure terms and conditions and protocols are complied with, such as land management, infrastructure development, animal welfare, employment, weed and feral animal control.

The term of grazing licences issued in NT to date has largely been 5 + 5 years. External interest in longer-term proposals persists, but faces understandable difficulties in gaining the interest of Traditional Owners, due to perceived conflicts with existing community land uses and many long-held but undeveloped aspirations of Traditional Owners, for the use of their land and property.

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Sub-leasing and Grazing Licences

• Traditional Owners can agree to sub-lease their land or grant grazing licences (in the case of NT) to other pastoralists to run their cattle. • Sub-lease agreements in WA & Qld need the approval of the Minister. • In the NT, Land Councils organise PLUAs in accordance with Section 19 of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth) (ALRA). • Terms or arrangements in the contract should be committed to writing with all parties signing off. • Agreements may apply to all or part of a property. • Multiple agreements can exist on the one property. • The term of the lease can be 5 + 5 years or longer by negotiation. • TOs earn an annual fee. • Redevelopment of pastoral infrastructure can be included in the agreement for the future benefit of TOs. • TOs may generate employment for the local community through the provision of fee for services, including rangeland and station operations, fencing, mustering and environmental controls. • Training may be provided. • Seek assistance from Indigenous Land Holder services in WA, or the Indigenous Pastoral Program in NT.

Further Information on Subleasing and Grazing Licences Subleasing WA

Grazing Licences NT

Subleasing Qld

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Agistment

Agistment is an arrangement with a definite period over the short to medium term, (up to three years) where the owner of the property manages a third party’s livestock. As with sub-leasing, agistment agreements are contracts requiring arrangements in writing to be signed by all parties. Agistment in WA When considering approaches for agistment, owners of pastoral leases in WA need to be aware of the need for prior written permission from the Pastoral Land Board. Under the Land Administration Act 1997, the Board is required to ensure that pastoral leases are managed on an ecologically sustainable basis, so it needs to assess the effect of agistment proposals on the condition of the pastoral lease to be used. Obtaining permission is not difficult. A letter to the Board is required providing details of the agistment proposal, including:

• type of stock to be agisted • number of stock involved • duration of the agistment proposal • statement on the current rangeland condition and the numbers of your own stock, if any, to be located on the subject land • stock to be run together or kept separate • location on the lease of agisted stock - whole of lease or individual paddocks • stock management responsibilities/arrangements • other relevant management comments.

Once the proposal is received, the Board will make an assessment using office records. This ensures a quick response. Applications for periods of more than one season or large numbers of stock will be referred to the Department of Agriculture and Food for comment in the first instance. Permission to allow agistment may be conditional, and it is the pastoral lessee’s responsibility to monitor the impact of additional grazing on the rangeland to ensure land degradation does not occur. The pastoralist must also advise of any subsequent changes to the initial details of the agistment supplied to the Board.

Agistment WA www.rdl.wa.gov.au/publications/Documents/Forms/DispForm.aspx?ID=316

Agistment in NT Agistment activities in NT (Pastoral Leases or Aboriginal Land Trusts) do not require consent of the Pastoral Lands Board (PLB).

Agistment in Qld In Queensland it is necessary to lodge the details of the relocation of stock, which are likely to be located on the second property for 12 months or more, with the Personal Property Securities Register. The rationale for registration is to ensure that third parties are aware of ownership of the livestock, when they are de-pastured on someone else’s property. 8 back to top MODULE 9 diversification and other income earning opportunities

Contracting Indigenous people in the pastoral industry can earn income off-farm by contracting to supply services to other pastoralists. Contracting services can include:

• mustering cattle • fencing • yard building • weed and feral animal control • earthmoving

These services may involve establishing and managing contracting businesses. If you set up a contract business you should have an Australian Business Number (ABN) and public liability insurance. If you employ people you are liable for superannuation, workers’ compensation, and pay as you go (PAYG) taxation. You must also be able to control the way work is done, so there is no dispute with the property owner. Although specific legal advice on contracts cannot be provided in this Manual, the agreement must be practical and negotiable to be mutually beneficial to the contractor and the owner.

Some practical points which can be included in a mustering contract (in addition to the above legal requirements) are: Contractor Duties • Quote to be expressed as ‘price per head ’( for all cattle that come through the yards) • Supply all labour to complete the job • Contractor must ensure that he has a Workplace Health and Safety policy in place and that it is adhered to at all times • Supply all plant & equipment to complete mustering, i.e. bikes, horses, saddles, vehicles, trucks, etc. • Contractor to be self-sufficient with regard to all cooking and power requirements, if required to camp at the yards • Supply all helicopters and avgas • Contractor to indicate whether they will supply own fuel or will buy fuel from station. • Must supply appropriate transport means and bear all costs for any interstation carting • All weaners and sale cattle to be delivered to the main station yards • Supply own stores

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• Husbandry a. All cattle to be bang tailed (if unable to be bang tailed, to be painted) b. All females to be aged c. All weaners to be given agreed injections, d. All male calves and weaners to be given agreed HGPs e. All weaners and calves to be branded, dehorned (including veterinary treatment), earmarked and castrated f. All young cattle to be tagged with NLIS devices g. Dehorn all cows with horns (including veterinary treatment) • Contractor to be provided with own killer (meat) by station management • No animal cruelty is acceptable • All workers should be competent, dressed in appropriate attire so as to perform their mustering duties, e.g. hats and boots, etc. and will comply with station behavioural code of conduct • Must keep an accurate account of all cattle numbers, records and description, i.e. sex, age, type, etc. Also, which paddock cattle have come from and placed back. • Contractor will put all cattle back into their paddocks as instructed by management • No drugs or alcohol • No firearms Owner Duties • Supply agreed chemicals and vaccination for animal husbandry. • Supply gas for branding and all brands and earmarks. • Station will provide all hay and feed the weaners and sale cattle in the main station and outlying yards. • Will provide all fencing and yards in workable conditions for the mustering to be carried out appropriately. • Main roads to be graded — Internal roads will be graded while mustering process is ongoing in order for the mustering to be carried out appropriately. • Supply the contractor with meat — kills to be done by station management only.

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Employment on Non-Indigenous Cattle Stations Some non-indigenous pastoral companies have corporate social responsibility or equal opportunity employment policies, to actively employ and train youth from local communities. Several use experienced Indigenous staff to engage and motivate small numbers of new employees. They recognise the importance of cultural awareness and the benefits of recruiting from local communities, and that establishing relationships is a lengthy process. (See Human Resources Management Module 8) Employment as Rangers The ‘Working on Country’ program for Indigenous rangers recognises land management work as paid employment for environmental services. This includes managing biodiversity, feral animals, weeds, land disturbance, and protection of cultural sites.

Ranger work plans are guided by community elders who have traditional knowledge in how to care for country. This is passed down from generation to generation to ensure culture remains alive. A combination of cultural and traditional knowledge and western technologies is used to achieve work tasks.

Through this program, the Australian Government buys environmental services from Indigenous communities who employ rangers to undertake this important work. It also provides nationally accredited training and career pathways for Indigenous people in land and sea management.

‘Working on Country’ is expanding and has resulted in significant improvements in income — Indigenous rangers now earn above the gross median income for all Australians.

Further Information on Employment as Rangers Factsheet: Working on country

Ranger activity Northern Territory

Queensland

Western Australia

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Mining Royalties and Employment Mining agreements involving royalty and compensatory payments are directed at providing benefits to Indigenous communities. This could include employment and training programs, business enterprise development programs, payment of limited cash compensation, and heritage protection. In addition to royalties, mining companies can offer assistance under their Corporate Social Respon- sibility policies. In all cases, if associated with Aboriginal leases, it is important for communities to decide how these funds should be directed in the best interests of pastoral development. (See Land Information Module 4). Operating an Indigenous Training Business Indigenous people with particular skills can derive income by operating a training business. There are number of models which can be followed. Burks Park Training Centre WA - horsemanship, cattle handling The Bina-Waji Nyurra-Nga Aboriginal Corporation, assisted by Jayun Indigenous Corporate Partnerships and Kimberley Indigenous Management Support Services (KIMSS) has set up a business at Burks Park, in Halls Creek WA, that provides residential, pre-vocational and vocational training and jobs to young people. Trainees have the opportunity to attain a Certificate II Agriculture (Beef Production), which is an accredited TAFE qualification. Myuma Group - Plant hire, construction, mining, horticulture, hospitality, catering The Myuma Group, a traditional owner group from the Georgina River Basin on the NT-Qld border, has a company which runs a plant hire group and employs and delivers accredited training programs to Indigenous people in civil construction work and mining as well as horticulture, hospitality and catering. The number of workers ranges between 20 and 50. ILC Roebuck Plains WA – On- the- job cattle handling The ILC has set up training facilities at Roebuck Plains Station, 30 km east of Broome in the Kimberley region of WA. Together with the adjacent Roebuck Export Depot, an Indigenous employment and training initiative is providing ongoing benefits to Indigenous people in the region. Roebuck Export Depot (RED) is a state-of-the-industry, AQIS‑registered live export depot, built by the ILC to create training and job opportunities for Indigenous people. Trainees at Roebuck Plains Station and Myroodah Station are rotated through RED, to increase their experience and skills in the cattle industry. ILC Queensland Stations – On- the- job cattle handling The ILC’s Queensland stations Crocodile/Welcome, Urannah, Bulimba, Merepah and Mimosa, all provide employment-based training programs for Indigenous youth.

Further Information on Indigenous Training Businesses Burks Park

Myuma

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Tourism

Indigenous communities can gain from taking part in the growing northern Australian tourist industry. Currently tourism on pastoral leases in WA is limited to low key pastoral-related tourism and in Queensland it must not become the dominant activity. Similar restrictions apply to pastoral leases in the NT, but not to Aboriginal Land Trusts.

Again there are a number of models which can guide communities aspiring to become involved. Home Valley Station The ILC has established Home Valley Station as a significant tourism business, based on pastoral activities operating on the station. Local Indigenous people are employed and trained in all aspects of the tourism business while the cattle business is a low-cost operation relying on the annual harvest of unbranded animals. In 2010–11, a residential employment-based training program was undertaken for 20 trainees. Trainees undertook Certificates II and III in Tourism, Hospitality, Automotive Mechanical and Horticulture. Photo 9.1 Home Valley Station

Further Information on Ecotourism WA Pastoral Diversification Review Report

Diversification of Leases for Agricultural Purposes

Land Matters magazine

Home Valley Station

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Small Scale Abattoirs

There is an unsatisfied demand for local beef in northern Australia local communities, and from the tourist and mining industries. Beef is processed in southern states and then shipped over large distances to the north when cattle could be killed and processed locally. There is also scope to kill and export meat from multispecies abattoirs including buffalo and camel. Involvement in meat processing can include Indigenous corporations killing their own cattle, retailing through a local butcher shop, employment and training and marketing. It is essential that the market outlets be identified, and that small scale investment proposals be subject to a business plan, before a community embarks on local beef processing.

The NT Department of Resources, Primary Industry Division has recognised this potential and is collaborating with operators of existing small scale abattoirs at Gunbalanya, Kalkarindji and Palumpa to upgrade facilities and is continuing to provide regulatory services and technical advice. It is also assisting with the design of new meat processing facilities at Elsey and Peppimenarti and the upgrading of Batchelor abattoir. Current and potential involvement in local abattoirs is summarised in Table 9.1.

Table 9.1 Small Scale Abattoir Activity in the Northern Territory

Abattoir Location Species and Market Livestock Source Development Throughput Stage

8 Indigenous community Gunalanya, Station supermarkets, 330 km E of Cattle, Buffalo originating from Gunbalanya meat wholesaler Operational Darwin 30/week Strangways/East Elsey and retailers and and Waliburru Voyager Indigenous Tourism Australia Kalkarindji Store, 460 km E of Cattle Kalkarindji Yarralin, Pigeon Hole Wave Hill area Operational Darwin 5/week and Lajamanu 230 km SW Cattle Palumpa Wadeye pop. Palumpa Palumpa Station Operational of Darwin 20/week 3,000 Never Never 90 km S of Cattle Local, tourists and Design and Elsey Station Meatworks Katherine 10–20/week mines construction 320 km S of Peppimenarti Cattle Local communities Local Proposal Darwin

Cattle, Renovations 98 km S of Batchelor Buffalo, Export Feral, NT and awaiting Darwin Camel re-opening

Domestic, halal, 40 km N of Cattle, Camel Wamboden capital cities Feral, Central Australia Operational Alices Springs 30/week and pet food

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Gunbalanya Meats In terms of models for Indigenous involvement, the Gunbalanya Meats abattoir at Gunbalanya in west Arnhem Land is of particular relevance. The ILC, under a Pastoral Land Use Agreement, has increased the capacity of the business to process 30 bodies of beef and buffalo per week by expanding the abattoir facilities and actively marketing meat products. Meat is processed and sold to a wide range of customers, including eight Indigenous community supermarkets, various NT meat wholesalers and retailers and Voyages Indigenous Tourism Australia (Ayres Rock Resort, Mossman Gorge and Home Valley Station).

Photo 9.2 Gunbalanya Abattoir

Photo 9.3 E lijah Whitehirst, Gunbalanya Abattoir’s First Indigenous Apprentice

Source: Steven Schubert, ABC Rural

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Palumpa The Palumpa abattoir, 230 km south west of Darwin, has been cited as a successful small meatworks with a throughput of 20 head per week sourced from its own cattle from the flood plains. Palumpa Abattoir has a ready market for beef at Palumpa (population of 500) and at Wadeye (Port Keats), which is the largest Indigenous community in the NT (population of over 2,000). Never Never Meatworks (Mataranka) The Ngarranbarrdji Development Corporation Limited represents the Mangarrayi people who are the Traditional owners of Elsey Station, near Mataranka, 100 km south of Katherine. The Corporation has developed its own concept plan for a small scale meatworks. The Never Never Meatworks will process 10 to 20 head per week of cattle and buffalo. It has ability to scale up to 100 per week as the skill level is developed. The meatworks design includes a kitchen and butcher shop and is an innovative design by the local people. This will be the first greenfield plant built for many years in the NT. The meatworks will support local and surrounding communities including the Jilkminngan Community which has a population of 300 people and is situated 15 km away from the site. It also has the potential to supply mining sites and the drive-by tourist market. The meatworks has 12 month sealed road access and is located on the Savannah Way, the major tourist drive from Townsville to Broome. Other abattoirs One example of a multi species abattoir is the Wamboden abattoir on Bond Springs Station in Central Australia which processes cattle and camels. Another is the Batchelor abattoir south of Darwin, which was to be leased by Windy Hills Australian Game Meat. The facility has been renovated and there are plans to process cattle, buffalo and camels. Wamboden and Batchelor abattoirs are not owned by Indigenous people, but offer opportunities for employment in capture and processing of camels.

Further Information on Small Scale Abattoirs Indigenous Participation, Department Of Resources, Primary Industry Division, Reporting on the Northern Territory Agribusiness Industry Strategy

Beef Processing at Gunbalanya Meat Supplies (GMS)

Camel Processing and Marketing

RIRDC Assessing the potential for a Commercial Camel Industry in Western Australia

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Carbon Farming

Carbon sequestration, abatement and storage and biodiversity protection are emerging as a new economy in northern Australia. Carbon Farming Initiative The Australian Government’s Carbon Farming Initiative (CFI) is a carbon offset scheme that has been established to provide new economic opportunities for farmers, forest growers and landholders and help the environment by reducing greenhouse gas pollution.

Some methods of carbon offsetting, including wildfire abatement (in northern Australia) and forestry management, are particularly relevant to Indigenous Australians, because they have the potential to use traditional environmental knowledge. If green house gas emissions can be reduced, carbon credits created under the CFI can be sold to Australian industry to help meet their regulatory requirements for pollution reduction.

The scheme, which commenced on 1 July 2012, brings potential opportunities for Indigenous landholders in the compliance market. In simple terms, this legislation provides a framework for how to generate and verify carbon credits so they can be sold. Photo 9.4 Mosaic Burning at Fish River Station NT

Source: ILC Business Support and Grants A Capacity Building and Business Support stream ($17.1m over five years) will help Indigenous communities establish or participate in carbon farming projects. This stream will be delivered by the Department of Sustainability, Environment, Water, Population and Communities. Support includes giving Indigenous communities access to knowledge and information to help guide their decision- making in relation to participation in the carbon market.

Grants of up to $300,000 are available to Indigenous organisations and individuals with an existing feasibility assessment or business plan to implement carbon farming businesses.

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Funding is available to:

• employ a carbon farming project manager • progress carbon farming business development • seek specialist legal, contractual, governance or business development advice • implement carbon farming projects and assist in the establishment of carbon farming enterprises and related activities. Issues to Consider Projects that offset carbon have the potential to generate income. However, there are many issues that landowners need to consider before undertaking a project. These include:

• choosing the right type of project activity for the land • determining whether the new land use activities will result in carbon abatement, that is additional to what would occur without the new activity • deciding whether the long-term commitment that may be needed to make the abatement permanent is realistic • achieving reductions in greenhouse gas emissions that are measurable and verifiable.

Although there is general potential under new legislation for Indigenous pastoralists to generate CFI credits from restoring Australia’s rangelands to receive Kyoto Australian Carbon Credit Units, existing practical models only involve abatement from savanna burning.

If you think your property might be eligible for a carbon offset project and you are interested in finding out more, contact the ILC. The ILC provide the following guidelines for fire projects:

• Land Eligibility – rainfall: Under the current methodology, only land that receives average annual rainfall greater than 1000 mm is eligible. A methodology for land that receives 600 – 1000 mm per annum is currently being developed. • Land Eligibility – vegetation types: Your land should support the vegetation types to which the methodology applies. • Baseline: The fire history (baseline) of your property should support an abatement opportunity. If late dry season fires are not a common feature of your property, there may be little abatement opportunity. • Resources: You must have the resources and necessary skills to undertake the burning program each year. • Opt-out provisions: Understand that there is no requirement for permanence and you can opt-out of a fire project at any time. • Carbon Accounting: Accounting for fire projects is technical in nature and relies on information which can be provided by external organisations such as Northern Australia Fire Information (NAFI). • Neighbours: Manage your relationships with neighbours. • Legal: Know your legal obligations with respect to the use and control of fire.

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Northern Australia Models There are two models being trialled or in existence in northern Australia - one through CFI, and the other an agreement with a private company. Both involve savanna burning. Fish River Savanna Burning Under the CFI, the Clean Energy Regulator has approved a savanna burning regime at Fish River a 1,800 km2 property 200 km south of Darwin. Fish River’s savanna burning project will be the first Indigenous project to earn carbon credits. The ILC, which owns the property, will be able to earn 20,000 CFI carbon credits a year for strategic fire management.

The methodology reduces total greenhouse gas emissions from the property, benefiting the environment, and potentially earning an income stream from carbon credits for Traditional Owners.

By using methods that draw on Indigenous pattern burning and science, the area of land that had been historically burnt each year by wildfires has been reduced from 69% to 3% of the property. West Arnhem Fire Management Agreement The West Arnhem Fire Management Agreement (WAFMA) was brokered in 2006 by the area’s Traditional Owners, the Northern Territory Government, the Northern Land Council, Tropical Savannas CRC and ConocoPhillips, to offset some of the greenhouse gas emissions generated at ConocoPhillips’ liquefied natural gas plant in Darwin Harbour. This agreement recognises the significant greenhouse gas abatement achieved through savanna fire management carried out by Indigenous ranger groups. ConocoPhillips pays around $1million a year to the WAFMA project to provide this fire management service for a period of 17 years.

Carbon Farming for Northern Indigenous Pastoralists

• Carbon Farming Initiative (CFI) is a carbon offset scheme for pastoralists to help the environment by reducing greenhouse gas pollution. • Carbon credits created under the CFI can be sold to Australian industry, to help meet their regulatory requirements for pollution reduction. • Business support and grants are available. • Under CFI, carbon credits are created by early savanna burning in the dry season to reduce wildfire emissions later in the year (Fish River pilot scheme). • Under the West Arnhem Fire Management Agreement (WAFMA), the credits created by early dry season burning of savanna are bought by ConocoPhillips to offset greenhouse gas emissions generated by its liquefied natural gas plant in Darwin Harbour. • Contact ILC for assistance with proposals.

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References to Carbon Farming Indigenous Carbon Farming Fund

Clean Energy Regulator - Carbon Farming Initiative

NAILSMA - Carbon Project

Fish River Carbon Farming Initiative

Carbon Farming WA

ILC Carbon Offsets

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MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd warrigundu station CASESTUDY#1 northern territory

Contents Human Resource Management 24 Executive Summary 3 Staff 24 Land and Property Information 8 Recruitment 24 Location 8 Staff Training 25 Traditional Owners 8 Machinery Operators (such as Grader Drivers) 26 Land Tenure 9 Informal Training 26 History 9 Diversification 26 Role of ILC 9 Map 9 List of Tables Cultural Heritage 10 Table CS1.1 C limate Average Climate 10 Annual Values 10 Land Types - Soils 11 Table CS1.2 2012 Herd Land Types – Vegetation 11 Closing Numbers 20 Property Infrastructure 11 List of Figures Business Management 13 Figure CS1.1 L ocation of Warrigundu Station 8 Goals and Vision 13 Day to Day Management 13 Figure CS1.2 M ap of Warrigundu Station Including Strangways 10 Business Planning 13 List of Photos Ongoing Monitoring of Performance 13 Cover photo - Brahman Cattle Sources of Funds 14 Governance 14 Photo CS1.1 W arrigundu Station Graduates 7 Financial Management 15 Photo CS1.2 W arrigundu Yards 12 Markets and Marketing 16 Photo CS1.3 D rafting Weaners for Grazing Land Management 18 Gunbalanya 17 Environmental Management Plan 18 Photo CS1.4 W arrigundu Cattle Carrying Capacity 18 Committee discussing new fence line placement 18 Fire Management Regimes 19 Weeds 19 Photo CS1.5 C are is also taken of the horses 23 Feral Animals 19 Photo CS1.6 T raining at Herd Management and Production 20 Warrigundu Station 24 Herd Size and Composition 20 Photo CS1.7 Y arding up at Herd Management Operations 20 Warrigundu Station 25 Breeder and Heifer Management 21 Acknowledgements Weaner Management 21 In writing this case study, the assistance of the Nutrition Management 22 Indigenous Land Corporation is acknowledged. Hormonal Growth Promotants (HGP) 22 They have been generous in supplying information, as well as the photos and maps included in the study. Husbandry, Health and Welfare 23

Vaccination and Other Treatments 23 back to start of manual 2 CASESTUDY warrigundu station northern territory

Executive Summary Background Warrigundu Station (‘Warrigundu’ or ‘the Station’) also known as Hodgson Downs, runs over 15,000 head of cattle and employs more than 20 local people. The Station, which is located 240 km south-east of Katherine in the Northern Territory (NT), is operated by the Indigenous Land Corporation (ILC).

Warrigundu Station is leased to the ILC under two separate Pastoral Land Use Agreements, which are commonly referred to as Grazing Licences. The land is Aboriginal freehold land.

The Traditional Owners (TOs) of the land encompassing the Warrigundu Station are the Minyerri community of Hodgson Downs and the Mangarrayi Aboriginal Land Trust (ALT) of Elsey Station (Strangways).

Some of the key take out messages from the case study are as follows: Indigenous Land Corporation and Warrigundu Following acquisition in 1991 by the former Aboriginal Development Commission (ADC), Warrigundu was de-stocked under the Brucellosis and Tuberculosis Eradication Campaign (BTEC) and remained largely unused until 2007.

The Traditional Owners of Warrigundu had long held a vision of returning the land to production and approached the ILC for assistance. A Grazing Licence Agreement was signed in 2007, and the ILC commenced cattle operations on Warrigundu, training and employing people living at Minyerri. Minyerri is a community of more than 500 people, located on the Station.

At the same time, a 10-year agreement was signed with the Mangarrayi Aboriginal Land Trust (ALT) which involved the ILC leasing 96,000 hectares from the Elsey Station Aboriginal owners. Significant cattle infrastructure was established on the Strangways block, on the eastern side of Elsey Station, adjoining Hodgson Downs. This area now supports a herd of over 4,000 cattle. Strangways’ management was integrated into the pastoral business at Warrigundu Station.

The Alawa 1 and Mangarrayi ALTs, representing Traditional Owners for these areas, now earn regular incomes from the Grazing Licence Fees that ILC pays to them under the terms of the lease, in addition to employment and training opportunities.

The ILC operates Warrigundu Station as a pastoral business. The charter of ILC- operated businesses is to deliver economic, social, cultural and environmental benefits for Indigenous people through the use, care and improvement of Indigenous-held land. The operation of the Warrigundu business contributes to the ILC priority outcome of delivering socio-economic development outcomes for Indigenous people. Development Since 2007, Warrigundu has been developed by the ILC in accordance with the terms of the Grazing Licences negotiated with the Traditional Owners of the Alawa 1 and Mangarrayi ALTs. The ILC has invested in excess of $2.5 million for the upgrade of waters, fences, yards and buildings at Warrigundu over this time. 3 back to top CASESTUDY warrigundu station northern territory

Business Planning and Management Warrigundu Station is managed as an ILC business and thus benefits from the corporate procedures, checks and balances that are in place in such a corporation. A detailed five year business plan is in place for the business, which is supported by an annual work plan and annual budget. Standard ILC controls, monitoring and evaluation procedures are applied to Warrigundu with a strong focus on recording and financial reporting which are used to keep the business on track. Costs are managed closely. Expenditure can only occur in accordance with budget provisions. The ILC has a system of authorisations, delegations and finance protocols to manage cash flow, accountability and value for money. Governance The Warrigundu business is overseen by the seven member ILC Board of Directors and operated by the ILC’s Business Employment and Training Directorate.

Cattle Committees representing the Alawa and Mangarrayi people were established to provide a formal mechanism for the Traditional Owners to provide input into the business. These Committees are drawn from the family groups that comprise the Traditional Owners, as identified by a Northern Land Council-appointed anthropologist. Each family group then selects a Leader to represent them on the Committee.

The Cattle Committees’ advisory role and the cultural authority of the Committee members provide strong practical support to the ILC. This support has enabled ILC to make significant progress with the redevelopment of the Station. Markets and Marketing The ILC manages Warrigundu Station as part of an integrated strategy which enables it to value add to the Warrigundu turn-off and reduce market risk. The integration strategy is aimed at supplying the live export market and so the ILC has also taken a grazing licence with Gunbalanya on the Arnhem Land flood plains at Oenpelli.

Weaner steers and surplus heifers are bred on Warrigundu to a weight of between 150 to 200 kg and then transferred onto the floodplain at Gunbalanya for fattening to the 350 kg Indonesian export weight limit. The cattle are then turned off for live export through Darwin.

ILC’s ownership of the Gunbalanya pastoral operations and other pastoral businesses in the NT also provides a back up to Warrigundu during drought.

Strong attention to market information and market options has become critical to the Warrigundu pastoral operation, following the temporary suspension of the live export trade in 2011 and subsequent volatility in the Indonesian live export market. Having a dedicated livestock marketing agent assists in managing market risk as the long term association means the agent works harder to market the Station’s cattle.

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Herd Management Warrigundu follows an annual herd management program in line with industry best practice in its region. Understanding the true carrying capacity of the land and its resources is critical to production and herd management and Warrigundu operates within the carrying capacity currently specified in its Grazing Licence. A carrying capacity survey will be completed for the Station in 2013.

In conjunction with carrying capacity, is the need to establish a herd of sufficient size to ensure cash flows and profits are sustainable. In order to stock the property, 7,000 breeding cows were sourced from Roebuck Plains, an ILC property outside Broome in Western Australia (WA) and Wave Hill Station south west of Katherine. This gave the business the impetus that many other Indigenous pastoral operations lacked; that is access to a significant number of cattle. Grazing Land Management An understanding of the programs that improve the quality of the country through weed and feral animal control and fire management regimes for pasture protection and weed reduction is critical for grazing land management. Extension services provided by the Department of Primary Industries and Fisheries are very useful in providing advice and education in up to date techniques and strategies. The use of extension services for learning about improved breeder management techniques is also highly recommended. Human Resource Management Warrigundu has a strong focus on the employment and training of local Indigenous people. The business supports up to 20 local Indigenous jobs each year, up to 10 Indigenous trainees and a further 3-4 Indigenous staff who are hired by contractors and service providers.

The ILC employs a professional Manager, Assistant Manager, Boreman Mechanic and Station Cook. Each of these staff has a mentoring role – so they need to be culturally aware and have an empathy with their trainees.

The ILC also employs a pastoral officer based in Katherine who provides expertise and stability in management.

Staff retention is generally quite good.

Applicants for Indigenous traineeships are required to go through detailed pre-vocational training programs. Indigenous trainees participate in training courses, such as a Certificate II or III in Agriculture (Beef Production), Certificate II in Business, OH&S, Senior First Aid, Helicopter Awareness, Bush Fire Awareness, Horsemanship, and Machinery and Vehicle Skills. Warrigundu also has a strong focus on informal training and mentoring, whereby management encourages people to ‘have a go’ at various positions. At present, the Indigenous Head Stockman is being encouraged to advance his skill level with the view to progressing to the position of Assistant Manager.

ILC plan to commence governance training for the Cattle Committees in the future.

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Cultural Heritage and Sensitivity The Cattle Committees provide a link between the ILC’s business and pastoral operations and the cultural responsibilities of the Indigenous communities.

Sacred site clearances for the installation of new station infrastructure were facilitated by senior Traditional Owners who worked with an anthropologist from the Aboriginal Areas Protection Authority (NT). This work has resulted in significant protection of sacred country. In addition, it also enabled the transfer of important cultural knowledge from senior to younger custodians which is an important objective of both the ILC and the Traditional Owners. Important Questions Highlighted by the Case Studies This case study, together with the Case Studies undertaken by the Study Team of Delta Downs and Lamboo Stations, highlights a series of important questions that Traditional Owners or Aboriginal corporations need to answer when considering starting a pastoral business. The following list is not intended to be exhaustive but provides a snapshot of the key messages arising from the Case Studies:

• What is the purpose for beginning the pastoral enterprise? • Where can advice be sought to assist in the setting up of a commercial business? • Is the property or area suitable for raising cattle and is it large enough to carry enough cattle to produce the outcomes desired? • What infrastructure is in place and what is the condition of the improvements? • Is there access to sufficient funds to carry out a development program without incurring debt? • What cattle are available to begin operations? • Is there access to sufficient funds to purchase enough cattle to operate a commercial business without incurring debt? • Where are the nearest markets? • What is the incidence of drought?

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Photo CS1.1 Warrigundu Station Graduates

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Land and Property Information

Warrigundu Station (‘Warrigundu’ or ‘the Station’) runs over 15,000 head of cattle and employs more than 20 local people. The Station is operated by the Indigenous Land Corporation (ILC) and comprises land formerly known as Hodgson Downs and the eastern part of Elsey Station, known as Strangways. Location Warrigundu Station is located in the Northern Territory, approximately 240 km south-east of Katherine. The Hodgson River runs approximately north-south through the property. At the local Aboriginal community of Minyerri, the Hodgson River is joined by the Arnold River and then joins the Roper River further downstream near the Aboriginal community of Ngukurr. The property can be accessed via the Roper Highway from the north. The area known as Strangways is located between the Strangways River and the western boundary of Hodgson Downs.

The map below shows the position of Warrigundu Station in relation to roads, towns and neighbouring properties. Warrigundu is located in the Gulf Fall Uplands and Sturt Plateau bioregions. Figure CS1.1 Location of Warrigundu Station

Traditional Owners The Traditional Owners of the land are Alawa and Mangarrayi people that live mainly in the Minyerri and Jilkmingan communities respectively and surrounding communities and outstations.

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Land Tenure Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9) Warrigundu Station is leased to the ILC under two separate Pastoral Land Use Agreements, which are Warrigundu Station is part of the e Minyerri and Jilkmingan Since 2007, Warrigundu has been developed by the Alawa 1 Aboriginal Land Trust commonly referred to as Grazing Licences. The communities earn income om the ILC in accordance with the terms of the Land Use (Hodgson Downs) and a part of the Agreement or Grazing License negotiated with the property operates over the Alawa 1 Aboriginal Land Grazing Licence Fee that ILC pays Mangarrayi Aboriginal Land Trust to them under the terms of the lease. Minyerri Community. e ILC has inested in excess Trust (Hodgson Downs) and a part of the Mangarrayi and is Aboriginal eehold land. of $2.5 million for the upgrade of waters, fences, yards Aboriginal Land Trust (Strangways part of East and buildings at Warrigundu over this time. Elsey Station). Both Land Trusts are managed by the Northern Land Council and the land is Aboriginal freehold land.

The Traditional Owners of the land from the Alawa 1 ALTOngoing community Monitioring provide of Performance members (p.9)for Governance (p.10) Financial Management (p.11) the Cattle Committee for Warrigundu, and the members of the Mangarrayi ALT provide Cattle Committee members for the Strangways lease area. The role of the Cattle Committees is described e Minyerri and Jilkmingan Expenditure can only occur in accordance on page 10, Governance. Strong recording and nancial reporting are necessary to keep communities are represented with budget proisions. e ILC has a the business on track. Costs are in the management of system of authorisations, delegations and History managed closely. Warrgundu Station by elected nance protocols to manage cash ow, Cattle Committees. accountability and value for money. Following acquisition in 1991 by the former Aboriginal Development Commission (ADC), Warrigundu was de-stocked under the Brucellosis and Tuberculosis Eradication Campaign (BTEC) and remained largely unused until 2007. Markets and Marketing (p.11) Markets and Marketing (p.12) The Traditional Owners of Warrigundu had long held a visionMarkets of andreturning Marketing the (p.11) land to production and approached the ILC for assistance. A Grazing Licence Agreement signed in 2007, followed two years of discussion and planning amongst the Traditional Owners, the ILC and the Northern Land Having a dedicated livestock Have alternative plans to coer Council. In 2007, the ILC commenced cattle operations on Warrigundu,Inestigate alliances training with otherand employing marketing agent can assist in pastoral property owners that managing market risk as the long drought conditions. people living at Minyerri, a community of more than 500 people, located on the station. can value add to your product. term association means the agent Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9) Role of ILC will work hard to market your cattle. The ILC operates Warrigundu Station as a pastoral business. Warrigundu Station is part of the Since 2007, Warrigundu has been developed by the The charter of ILC-operated businesses is to deliver e Minyerri and Jilkmingan Alawa 1 Aboriginal Land Trust communities earn income om the ILC in accordance with the terms of the Land Use economic, social, cultural(Hodgson and Downs) environmental and a part of benefits the forMarkets andGrazing Marketing Licence (p.13) Fee that ILC pays Weeds (p.13)Agreement or Grazing License negotiated withHerd the Size & Comparison (p.14) Indigenous people throughMangarrayi the Aboriginal use, care Landand improvement Trust to them under the terms of the lease. Minyerri Community. e ILC has inested in excess of Indigenous-held land.and is Aboriginal eehold land. of $2.5 million for the upgrade of waters, fences, yards Understandand the buildings programs at Warrigundu over this time. Understand the true carrying Have a large enough herd to that improe the quality of The operation of the Warrigundu business contributes to capacity of your country. make the business ‘work’. the ILC priority outcome of delivering socio-economic the country through weed and feral animal control. development outcomes for Indigenous people.

In the case of Warrigundu,Ongoing Monitioring the ILC leases of Performance country from(p.9) the localGovernance Aboriginal (p.10) Land Trusts to operate Financial Management (p.11) a cattle business. In doing so, it funds the development of Breederinfrastructure, & Heifer purchaseManagement of (p.15)livestock and Human Resource Management Sta (p.17) provides employment and training for local Indigenous people. Strong recording and nancial e Minyerri and Jilkmingan Expenditure can only occur in accordance reporting are necessary to keep communities are represented with budget proisions. e ILC has a Map Buy good qualityin the bulls.management Improe of system of authorisations, delegations and the business on track. Costs are Warrigundu has a strong focus herd qualityWarrgundu by remoing Station mickey by elected nance protocols to manage cash ow, Figure CS1.2 on the followingmanaged page closely. provides a property map for Warrigundu Station, including on the employment and training bulls. LearnCattle & use Committees. improed accountability and value for money. Strangways. As shown, all significant fences, water facilities andbreeder yards management are displayed, techniques. together of local Indigenous people. with topography, watercourses, roadways, sites, communities and station headquarters. All of the paddocks are clearly marked and named. Markets and Marketing (p.11) Markets and Marketing (p.11) 9 Markets and Marketing (p.12) back to top

Having a dedicated livestock Inestigate alliances with other marketing agent can assist in Have alternative plans to coer pastoral property owners that managing market risk as the long drought conditions. can value add to your product. term association means the agent will work hard to market your cattle.

Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14)

Understand the programs Understand the true carrying Have a large enough herd to that improe the quality of capacity of your country. make the business ‘work’. the country through weed and feral animal control.

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17)

Buy good quality bulls. Improe herd quality by remoing mickey Warrigundu has a strong focus bulls. Learn & use improed on the employment and training breeder management techniques. of local Indigenous people. CASESTUDY warrigundu station northern territory

Cultural Heritage The Cattle Committees provide a link between the ILC’s business and pastoral operations and the cultural responsibilities of the Indigenous communities.

Cultural and sacred sites are not displayed on the map that follows.

Figure CS1.2 Map of Warrigundu Station Including Strangways

Climate Warrigundu’s predominant climate is dry cool autumn and winters and hot summers with a monsoonal influence, with the majority of the annual rainfall occurring between November and March. The closest long-term weather station is Larrimah, (15 deg 34.0 min S, 133.2138E) 94 km W of the centre of Warrigundu.

Table CS1.1 Climate Average Annual Values

Mean max temp 33.9°C Mean min temp 19.6°C Average rainfall 862.9 mm Average days of rain 56.3

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Land Types - Soils The soils on the property consist mainly of:

• rudosols: very shallow soils or those with minimal soil development • kandosols: soils that are massive and earthy (formerly red, yellow and brown earths) and suitable for pasture improvement with minor limitations • tenosols: weakly developed or sandy soils. Land Types – Vegetation The vegetation at Warrigundu consists of open woodland and small areas of tussock grassland. It has been described as mostly mid-high to tall open woodland dominated by Inland Bloodwood, Rusty Bloodwood, Stringybark and Grey Box over mixed grasses, with Red River Gum along the watercourses.

The main pasture species include Plume sorghum, Ribbon grass and Kangaroo grass. Other pastures include Spinifex and White grass. The native pasture is of moderate value to grazing with low forage quality in the dry season. Property Infrastructure When the ILC began operations at Warrigundu in 2007, the infrastructure was either non-existent or in poor condition. There were few cattle, apart from feral cattle, that were occasionally harvested for rations. This situation was similar to most other pastoral properties that had been handed over to Traditional Owners. However, in contrast to many Traditional Owners, the ILC had access to sufficient funds to develop a commercially-run pastoral business that would benefit the Minyerri and Jilkmingan communities.

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Photo CS1.2 Warrigundu Yards

Warrigundu has one set of fixed yards at the station homestead complex. Portable yards are used when mustering paddocks that are further away from the main set of yards. At Strangways, the main Land Tenure (p.5 in word doc) yardsRole of are ILC a mix(p.6) of portable panels and fixed concretedProperty Infrastructurerace, 5-way (p.9)draft, crush and loading ramp. Property infrastructure includes two Warrigundu Station is part of the houses,e office Minyerri building, and Jilkmingan trainee Since 2007, Warrigundu has been developed by the Alawa 1 Aboriginal Land Trust accommodationcommunities earn units, income governess om the ILC in accordance with the terms of the Land Use (Hodgson Downs) and a part of the Grazing Licence Fee that ILC pays Agreement or Grazing License negotiated with the quarters, school room, kitchen/dining Mangarrayi Aboriginal Land Trust to them under the terms of the lease. Minyerri Community. e ILC has inested in excess and is Aboriginal eehold land. room, training room, machinery shed, of $2.5 million for the upgrade of waters, fences, yards generator shed and extensive pastoral and buildings at Warrigundu over this time. infrastructure (fences, yards, dams, pumps and troughs).

Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11)

Strong recording and nancial e Minyerri and Jilkmingan Expenditure can only occur in accordance reporting are necessary to keep communities are represented with budget proisions. e ILC has a the business on track. Costs are in the management of system of authorisations, delegations and managed closely. Warrgundu Station by elected nance protocols to manage cash ow, Cattle Committees. accountability and value for money.

Markets and Marketing (p.11) Markets and Marketing (p.11) Markets and Marketing (p.12) 12 back to top Having a dedicated livestock Inestigate alliances with other marketing agent can assist in Have alternative plans to coer pastoral property owners that managing market risk as the long drought conditions. can value add to your product. term association means the agent will work hard to market your cattle.

Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14)

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17)

Business Management Goals and Vision The ILC business goals are to operate:

• a viable business in the agricultural industry • a training program to enhance the skills of Indigenous people, which will lead to ongoing employment opportunities. Day to Day Management Warrigundu Station operates under the supervision of a professional Property Manager employed by the ILC. The Property Manager reports to the ILC’s Business Employment and Training Directorate (BETD) which has management and implementation responsibility for the business. Business Planning Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9) A detailed five year business plan is in place for the business of Warrigundu Station, which is supported by an annual work plan and annual budget. These plans and budgets are developed by the BETD and the Property Manager. Warrigundu Station is part of the e Minyerri and Jilkmingan Since 2007, Warrigundu has been developed by the Alawa 1 Aboriginal Land Trust communities earn income om the ILC in accordance with the terms of the Land Use Ongoing Monitoring of Performance (Hodgson Downs) and a part of the Grazing Licence Fee that ILC pays Agreement or Grazing License negotiated with the Mangarrayi Aboriginal Land Trust to them under the terms of the lease. Minyerri Community. e ILC has inested in excess Warrigundu Station is managed as an ILC business. Accordingly,and the is Aboriginal standard eehold ILC controls, land. of $2.5 million for the upgrade of waters, fences, yards monitoring and evaluation procedures that are used in all ILC businesses are applied to Warrigundu and buildings at Warrigundu over this time. Station. The key approval and monitoring mechanisms are through the:

• Land Acquisition, Management, Business, Employment and Training (LAMBET) Committee

• BETD Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11) • ILC Board.

A detailed annual operating and capital budget is e Minyerri and Jilkmingan Expenditure can only occur in accordance submitted to LAMBET and the ILC Board for Strong recording and nancial reporting are necessary to keep communities are represented with budget proisions. e ILC has a approval. The business managers then report their the business on track. Costs are in the management of system of authorisations, delegations and actual operational and financial performance against managed closely. Warrgundu Station by elected nance protocols to manage cash ow, this budget on a monthly basis, for review by the Cattle Committees. accountability and value for money. BETD. Quarterly business performance results are also provided to the LAMBET and the Board.

An annual work plan, incorporating key milestones for employmentMarkets and and Marketing training (p.11) is written in Markets and Marketing (p.11) Markets and Marketing (p.12) conjunction with the relevant training provider. Training and employment data is continually collected and monitored. Progress towards reaching the project targets is reviewed each year, to Having a dedicated livestock determine areas for improvement and lessons learnt. Inestigate alliances with other marketing agent can assist in Have alternative plans to coer pastoral property owners that managing market risk as the long drought conditions. can value add to your product. term association means the agent will work hard to market your cattle.

Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14) 13 back to top Understand the programs Understand the true carrying Have a large enough herd to that improe the quality of capacity of your country. make the business ‘work’. the country through weed and feral animal control.

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17)

A number of other mechanisms are also used to monitor and evaluate the performance of the businesses, and to ensure their effective functioning. These are:

• internal audits • OH&S - HIRAC (Hazard Identification, Risk Assessment and Control) audits • risk management plans and register

• annual asset valuationsLand Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9) • evaluations of the businesses. Sources of Funds Warrigundu Station is part of the e Minyerri and Jilkmingan Since 2007, Warrigundu has been developed by the Alawa 1 Aboriginal Land Trust communities earn income om the ILC in accordance with the terms of the Land Use The initial infrastructure(Hodgson redevelopment Downs) and of athe part property of the was funded byGrazing the ILC Licence through Fee that a ILCcapital pays Agreement or Grazing License negotiated with the development budget approvedMangarrayi by the Aboriginal Board. Land Ongoing Trust operations and todevelopment them under the of terms Warrigundu of the lease. is Minyerri Community. e ILC has inested in excess and is Aboriginal eehold land. of $2.5 million for the upgrade of waters, fences, yards financed from income received. No other external funds are sourced for the business. and buildings at Warrigundu over this time. Governance As previously stated, the Warrigundu business is overseen by the seven member ILC Board of Directors and operated by the ILC’s BETD. Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11) Senior people, representing the land owning and management groups, speak for the land covered by Warrigundu. Cattle Committees representingStrong recording the Alawa and nancial and Mangarrayi e Minyerri and Jilkmingan Expenditure can only occur in accordance reporting are necessary to keep communities are represented with budget proisions. e ILC has a people were established to provide a formal mechanism for the in the management of system of authorisations, delegations and Traditional Owners to providethe business input on track.into theCosts cattle are project. The managed closely. Warrgundu Station by elected nance protocols to manage cash ow, Cattle Committees are drawn from the Traditional Owners Cattle Committees. accountability and value for money. who are, in effect, the landlords of Warrigundu Station. These Committees are drawn from the family groups as recognised by an anthropologist, who is normally appointed by the Northern Land Council. The familyMarkets groups and Marketing then select (p.11) a Leader to Markets and Marketing (p.11) Markets and Marketing (p.12) represent them on the Committee. There is no fixed term for the Committee members and there is no remuneration. Having a dedicated livestock Inestigate alliances with other marketing agent can assist in Have alternative plans to coer The Cattle Committees’ pastoraladvisory property role andowners the that cultural authority of themanaging Committee market members risk as the provide long drought conditions. strong practical support tocan the value ILC. add Thisto your support product. has enabled ILC to termmake associationsignificant means progress the agent with the redevelopment of the Station. will work hard to market your cattle.

Since the ILC provides the governance to the cattle enterprise and follows rules that are generic to all the Corporation’s enterprises, no major issues in relation to governance have arisen. The ILC Board has 3-4 year terms andMarkets the Cattle and Marketing Committees (p.13) do not change unlessWeeds members (p.13) resign or can no longer Herd Size & Comparison (p.14) fulfil their responsibilities.

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17) 14 back to top Buy good quality bulls. Improe herd quality by remoing mickey Warrigundu has a strong focus bulls. Learn & use improed on the employment and training breeder management techniques. of local Indigenous people. Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

Warrigundu Station is part of the e Minyerri and Jilkmingan Since 2007, Warrigundu has been developed by the Alawa 1 Aboriginal Land Trust communities earn income om the ILC in accordance with the terms of the Land Use (Hodgson Downs) and a part of the Grazing Licence Fee that ILC pays Agreement or Grazing License negotiated with the Mangarrayi Aboriginal Land Trust to them under the terms of the lease. Minyerri Community. e ILC has inested in excess and is Aboriginal eehold land. of $2.5 million for the upgrade of waters, fences, yards and buildings at Warrigundu over this time.

CASESTUDY warrigundu station northern territory

Ongoing Monitioring of Performance (p.9) FinancialGovernance Management (p.10) Financial Management (p.11) ILC has made a significant investment in cattle Strong recording and nancial and infrastructuree Minyerri development and Jilkmingan at Warrigundu. Expenditure can only occur in accordance reporting are necessary to keep communities are represented with budget proisions. e ILC has a Detailed cash flowin the managementbudgets are ofprepared each system of authorisations, delegations and the business on track. Costs are financial year and used to monitor monthly income managed closely. Warrgundu Station by elected nance protocols to manage cash ow, and expenditure.Cattle Quarterly Committees. business performance accountability and value for money. is also analysed and provided to the Board and the LAMBET Committee.

Markets and Marketing (p.11) ExpenditureMarkets can and only Marketing occur (p.11)in accordance with budgetMarkets provisions. and Marketing The ILC (p.12) has a system of authorisations, delegations and finance protocols to manage cash flow and to provide accountability to the ILC Board. Having a dedicated livestock Inestigate alliances with other marketing agent can assist in Have alternative plans to coer pastoral property owners that managing market risk as the long drought conditions. can value add to your product. term association means the agent will work hard to market your cattle.

Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14)

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17)

15 back to top Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

CASEOngoingSTUDY Monitioring warrigunduof Performance (p.9) station northernGovernance (p.10) territory Financial Management (p.11) Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

MarketsStrong recording and and Marketing nancial e Minyerri and Jilkmingan Expenditure can only occur in accordance communities are represented with budget proisions. e ILC has a reporting are necessaryWarrigundu to keep Station is part of the Since 2007, Warrigundu has been developed by the in the managemente of Minyerri and Jilkmingan system of authorisations, delegations and The thefirst business part onof track.the CostsmarketingAlawa are 1 Aboriginal strategy isLand to Trustproduce quality cattle, and ILC aims to achieve ILC in accordance with the terms of the Land Use Warrgundu Station communitiesby elected earn income om the nance protocols to manage cash ow, this at Warrigundu.managed closely.(Hodgson Downs) and a part of the Agreement or Grazing License negotiated with the Cattle Committees.Grazing Licence Fee that ILC pays accountability and value for money. Mangarrayi Aboriginal Land Trust to them under the terms of the lease. Minyerri Community. e ILC has inested in excess As part of an integrationand strategy is Aboriginal aimed eehold at supplying land. the live export market, the ILC has taken a of $2.5 million for the upgrade of waters, fences, yards grazing licence with Gunbalanya which is part of the Arnhem Land Aboriginal Land Trust. and buildings at Warrigundu over this time.

Markets and Marketing (p.11) A cattle breedingMarkets andbusiness Marketing enterprise (p.11) is conducted at Markets and Marketing (p.12) Warrigundu that breeds weaner steers and surplus heifers to a weight of between 150 to 200 kg. Warrigundu weaner Having a dedicated livestock Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11) Inestigate alliances with other steers and heifersmarketing are then agent transferred can assist inonto the floodplain Haveat alternative plans to coer pastoral property owners that Gunbalanya formanaging fattening market until risk turnoff as the long for live export through drought conditions. can value add to your product. Darwin. The termaim associationof the integrated means the businessagent is to grow steers e Minyerri and Jilkmingan Expenditure can only occur in accordance Strong recording andand nancial heifers aswill close work as hard possible to market to theyour 350 cattle. kg Indonesian export reporting are necessary to keep communities are represented with budget proisions. e ILC has a the business on track.weight Costs limit.are The business also sellsin cull the managementcows at around of 360 system of authorisations, delegations and managed closely.to 400 kg to domestic slaughter Warrgundumarkets, including Station by electedthe ILC’s nance protocols to manage cash ow, abattoir, trading as Gunbalanya Meats,Cattle in westCommittees. Arnhem Land. accountability and value for money. Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14) The Warrigundu Manager is kept informed of marketing de- velopments from within the ILC and through the normal Understand the programs channelsUnderstand of liaising the true withMarkets carrying livestock and Marketing agents, (p.11) radio broadcasts Markets and Marketing (p.11) Have a large enoughMarkets herd andto Marketing (p.12) that improe the quality of (ABC Countrycapacity of Hour) your country. and the internet. Market options are make the business ‘work’. the country through weed and discussed and agreed with ILC supervisors in BETD. feral animal control.Having a dedicated livestock This attention to marketInestigate options alliances has become with other even more critical marketing agent can assist in Have alternative plans to coer following the temporarypastoral suspension property of owners the live that export trade managing market risk as the long drought conditions. and volatility in the Indonesiancan value add live to export your product. market. term association means the agent TheBreeder business & Heifer works Management through (p.15)an agent who assistsHuman in marketing Resource Managementwill work Sta hard (p.17) to market your cattle. and supplying reliable and relevant market information. nfrastructureBuy good developmentquality bulls. Improe at Warrigundu. Detailed cash flow herdbudgets quality are by preparedremoing mickeyeach financial year and Warrigunduused to has a strong focus monitorbulls. monthly Learn &income Marketsuse improed and and expenditure. Marketing (p.13) Quarterlyon the business employment Weeds and training (p.13) Herd Size & Comparison (p.14) of local Indigenous people. performancebreeder management is also analysed techniques. and provided to the Board and the LAMBET Committee. Understand the programs Understand the true carrying Have a large enough herd to that improe the quality of capacity of your country. make the business ‘work’. The ILC is considering alternative live export markets to Indonesia, includingthe country throughMalaysia, weed Philippines, and Egypt and other countries. feral animal control.

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17)

16 back to top CASESTUDY warrigundu station northern territory

Photo CS1.3 Drafting Weaners for Gunbalanya

17 back to top Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11)

Strong recording and nancial e Minyerri and Jilkmingan Expenditure can only occur in accordance reporting are necessary to keep communities are represented with budget proisions. e ILC has a the business on track. Costs are in the management of system of authorisations, delegations and managed closely. Warrgundu Station by elected nance protocols to manage cash ow, CASESTUDY warrigunduCattle Committees. station northern territoryaccountability and value for money.

Grazing Land Management Markets and Marketing (p.11) Markets and Marketing (p.12) Markets and Marketing (p.11) Environmental Management Plan

There is an EnvironmentalHaving a Managementdedicated livestock Plan in place Inestigate alliances with other at Warrigundu. This marketingis overseen agent by canthe assist ILC’s in Senior Have alternative plans to coer pastoral property owners that Environmental Officer.managing If themarket wet risk season as the failslong there is drought conditions. can value add to your product. scope to move cattleterm to otherassociation ILC means properties the agent such as Banka Banka Westwill and work Gunbalanya. hard to market your cattle.

A grazing land management survey has been carried out on the property.

Markets and Marketing (p.13) Photo CS1.4 WarrigunduWeeds (p.13) Cattle Committee discussing newHerd fence Size line & Comparison placement (p.14)

Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17)

Carrying Capacity The carrying capacity of Warrigundu is rated at:

• 19,500 Adult Equivalents (AEs) or • 1 AE per 21.5ha. This assessment is consistent with the industry average for the region.

18 back to top Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11)

CASESTUDY warrigundu station northern territory Markets and Marketing (p.11) Markets and Marketing (p.11) Markets and Marketing (p.12) A carrying capacity assessment has not been completed on the property in recent years; however, it is planned to complete a survey during 2013. The business operates Havingwithin athe dedicated carrying livestock capacity currently specified in Inestigatethe Grazing alliances Licence. with other marketing agent can assist in Have alternative plans to coer pastoral property owners that managing market risk as the long drought conditions. Fire Managementcan Regimes value add to your product. term association means the agent will work hard to market your cattle. Warrigundu uses fire as a tool for protecting pastures and reducing weeds. Fire management regimes involve strategic, early, dry season burns and grading of fire breaks and fence lines to reduce the effect of wildfire in the dry season. Weeds Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14) There are a number of introduced weeds species, including Understand the programs Parkinsonia, Hyptis, RubberUnderstand Bush the (Calotrope) true carrying and Grader Have a large enough herd to that improe the quality of capacity of your country. make the business ‘work’. Grass that are causing localised problems throughout the the country through weed and catchment, particularly in disturbed areas, intensive use areas feral animal control. and along watercourses. These species are easily dispersed and form dense thickets that can substantially alter natural environments and affect livestock handling. Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17) Parkinsonia has been identified as the major weed species in the Roper River catchment and, as a result, has been the focus of biological control methods utilising a seed-eating beetle, Buy good quality bulls. Improe Penthobruchus germaini.herd quality by remoing mickey Warrigundu has a strong focus bulls. Learn & use improed on the employment and training Feral Animals breeder management techniques. of local Indigenous people. Feral animals, particularly donkeys, are a significant issue for Warrigundu. Chas Delacoeur, from the NT Department of Primary Industries and Fisheries’ Indigenous Pastoral Program, is a licensed shooter and assists in control of these animals. A 1080 dog baiting campaign is carried out regularly with the co-operation of the Minyerri community1.

1 1080 is registered for the control of wild dogs, feral pigs, rabbits and foxes. It is the most efficient, economical and species-selective chemical currently available for pest animal control in Australia. 19 back to top Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11)

Markets and Marketing (p.11) Markets and Marketing (p.11) Markets and Marketing (p.12)

Herd Management and Production Markets and Marketing (p.13)Herd Size and CompositionWeeds (p.13) Herd Size & Comparison (p.14) In accordance with the Grazing Licence, ILC was required to Understand the programs Understand the true carryingpurchase an initial herd of cattle to commence operations at Have a large enough herd to that improe the quality of capacity of your country.Warrigundu. To re-instate beef production on the property, the make the business ‘work’. ILC completed a significantthe countrypastoral through infrastructure weed and development feral animal control. program. To stock the property 7,000 breeding cows were sourced from Roebuck Plains, an ILC property outside Broome in Western Australia, and Wave Hill Station south west of Katherine. Breeder & Heifer ManagementThis (p.15) gave the business theHuman impetus Resource that Management many other Sta Indigenous (p.17) pastoral operations lacked, which is, access to a significant number of cattle. Buy good quality bulls. Improe Warrigundu has a strong focus herd quality by remoingThe mickey Warrigundu herd at the beginning of 2013 included the following numbers as shown by class bulls. Learn & use improed on the employment and training breeder management techniques.in Table CS1.2. of local Indigenous people.

Table CS1.2 2012 Herd Closing Numbers

Class of Cattle Number Turnoff 31st December 2012 2012 Cows 9,655 459 Bulls 330 155 Heifers 3,927 1,495 Steers 1,460 2,598 Total 15,372 4,707

Herd Management Operations The management program includes a comprehensive first round of mustering beginning in late April or May, depending on the season, and a much smaller targeted second round beginning in August. It takes approximately 380 helicopter hours to complete two rounds of mustering each year.

The first round muster includes:

• The vaccination program is started (see the Husbandry, Health and Welfare section). • Calves and weaners are processed according to industry protocols. • Weaners are removed and paddocked separately. • The weaner supplementation program is commenced (see below). • Wet cows are paddocked separately as part of the breeder segregation program, to reduce supplementation costs. • Dry cows are drafted off from wet cows and pregnancy tested (PT). • Dry cows are further segregated depending on pregnancy status and foetal ageing (3 month calving groups) and paddocked separately. 20 back to top Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11) CASESTUDY warrigundu station northern territory Strong recording and nancial e Minyerri and Jilkmingan Expenditure can only occur in accordance communities are represented with budget proisions. e ILC has a • Dry PT Empty (PTE) cows are transferred to Gunbalanya Meatsreporting for areslaughter. necessary to keep the business on track. Costs are in the management of system of authorisations, delegations and • Weaner steers and surplus heifers are moved to the Gunbalanya floodplain.managed closely. Warrgundu Station by elected nance protocols to manage cash ow, Cattle Committees. accountability and value for money. The second round includes:

• The vaccination program is completed.

• The weaning program is completed. Markets and Marketing (p.11) Markets and Marketing (p.11) Markets and Marketing (p.12) • The tail of the calves is processed. • The last of the transfers to Gunbalunya occur. Having a dedicated livestock Inestigate alliances with other marketing agent can assist in Have alternative plans to coer • Cows that were wet at the first round are mustered and weanerspastoral pulled-off. property owners Those that that are managing market risk as the long drought conditions. dry are identified as having had a weaner at foot in the first canround value that add towas your subsequently product. term association means the agent weaned. Those that are wet had a calf at foot in the first round that is now ready for weaning. will work hard to market your cattle. These cows are segregated into different paddocks. • Dry cows are mustered and those that were pregnant at the first round will either have only a small calf at foot or will be due to calve (so few, if any, weanersMarkets will and result Marketing from (p.13)this group). Weeds (p.13) Herd Size & Comparison (p.14) • Cows from the dry cow calving groups which were due to calve before the second round and have come in dry have lost their calf. These are segregated and culled. Understand the programs Understand the true carrying Have a large enough herd to that improe the quality of capacity of your country. make the business ‘work’. Breeder and Heifer Management the country through weed and Warrigundu’s aim is to improve herd fertility, tighten the calving period and reduce overheads for feral animal control. mustering, husbandry and supplementation costs. To achieve this, a herd management program has been enacted which is as follows: Breeder & Heifer Management (p.15) Human Resource Management Sta (p.17) Bulls and bull management: • Buy annual bull replacements. Buy good quality bulls. Improe • Cull non-performing, sick or injured bulls. herd quality by remoing mickey Warrigundu has a strong focus on the employment and training • Carry out an annual vibriosis booster bulls. Learn & use improed breeder management techniques. of local Indigenous people. vaccination program. • Remove cleanskin bulls.

Breeder Management: • Cows and first calf heifers are drafted into their relevant calving group according to lactation status; that is wet or dry. • Pregnancy testing is carried out on dry cows as part of a breeder segregation management program. • Early weaning is carried out where necessary, depending on cow condition score. • Breeders’ nutrition is managed. • Maiden heifers are seasonally mated to ensure their first calf is born at the optimum time of year. • Continuous mating of the main breeder herd is maintained. Weaner Management

21 back to top CASESTUDY warrigundu station northern territory

Weaning weights depend on season and body condition of mothers, but generally the program aims to wean calves early between 100–120 kg. Weaners are supplemented with a loose mix from weaning until they are shipped to Gunbalanya. Heifers that remain at Warrigundu to be joined the following year are supplemented, until the first storms.

Retained weaner heifers are vaccinated with Ultravac 7 in1 and Singvac botulism vaccine and are joined at a weight of 280-360 kg, at around two years old. This usually occurs in December. Nutrition Management The nutrition management program for breeders is designed to reduce the loss of body condition late in the dry season, through weaning and supplements. For weaners, the aim is growth; that is to reach target weights for transfer to the floodplain, as well as improved fertility in retained heifers.

The property is operated on a commercial basis with the use of supplements as a normal part of herd management. Supplementation commences in July when the breeder herd receives a dry season supplement, which is normally a urea‑based loose mix. During the wet season, a phosphorus loose mix is provided to the entire herd. Hormonal Growth Promotants (HGP) Hormonal growth promotants are used as a normal part of husbandry on Warrigundu. Weaner steers are implanted with Compudose 400 to cover their time at Gunbalanya. Surplus weaner heifers are also implanted with Compudose before moving to the floodplain at Gunbalanya, prior to sale to live export for feeder cattle.

22 back to top CASESTUDY warrigundu station northern territory

Husbandry, Health and Welfare Vaccination and Other Treatments Vaccinations include:

• Singvac, a vaccination for Botulism in all cattle, is normally carried out in the first round for those cattle that require it in that particular year. • Ultravac 7 in 1, a vaccination to prevent Leptospirosis and the major clostridial diseases, is administered to calves at branding. • Vibriosis vaccine is administered to bulls in the first round and to heifers prior to joining. Other husbandry treatments include:

• pour-on tick inhibitors • buffalo fly tags for all weaners being transferred to Gunbalanya Station floodplain • Compudose for steers being transferred to Gunbalanya Station.

Photo CS1.5 Care is also taken of the horses

23 back to top Land Tenure (p.5 in word doc) Role of ILC (p.6) Property Infrastructure (p.9)

Ongoing Monitioring of Performance (p.9) Governance (p.10) Financial Management (p.11)

Markets and Marketing (p.11) Markets and Marketing (p.11) Markets and Marketing (p.12)

CASESTUDY warrigundu station northern territory Markets and Marketing (p.13) Weeds (p.13) Herd Size & Comparison (p.14) Human Resource Management Understand the programs Understand the true carrying Have a large enough herd to that improe the quality of Staff capacity of your country. make the business ‘work’. the country through weed and The business supports up to 20 local Indigenous jobs each year, up to 10 Indigenousferal animal traineescontrol. and a further 3–4 Indigenous staff who are hired by contractors and service providers.

The ILC employs a professional manager. In addition to Indigenous jackeroos, machinery operators and trainees, other keyBreeder roles &include: Heifer Management (p.15) Human Resource Management Sta (p.17) • Assistant Manager supervises and mentors the Head Stockman with the aimBuy goodthat quality he will bulls. progress Improe to Assistant Warrigundu has a strong focus Manager in the future.herd quality by remoing mickey bulls. Learn & use improed on the employment and training • Head Stockmen supervisesbreeder management and mentors techniques. of local Indigenous people. jackeroos and trainees. • Boreman Mechanic trains staff to become competent in maintaining stock waters and plant and machinery maintenance. • Station Cook normally works with young women being trained in hospitality-related roles.

Each of these staff has a mentoring role — so they need to be culturally aware and have an empathy with their trainees.

The ILC employs a pastoral officer based in Katherine who provides expertise and stability in management.

Photo CS1.6 Training at Warrigundu Station

Recruitment The business attempts to recruit staff that are experienced in the northern cattle industry and work well with Indigenous staff and communities. Management staff are selected on criteria that ensures that they are sensitive to both the production and cultural aspects of the business.

24 back to top CASESTUDY warrigundu station northern territory

Staff retention is generally quite good. However, when required, senior staff positions are advertised nationally through all media forms. Staff Training Staff are encouraged to go through training programs as detailed below:

Station hands (Jackeroos, Stockmen and Maintenance Assistants) The ILC’s Employment and Training Officer, together with Apprenticeships Australia (which is the ILC’s preferred Group Training Organisation), approach employment agencies such as Job Services Australia and Disability Employment Services to advertise Station Hand traineeships.

Employment agencies then source applicants based upon their knowledge of who might be interested in such positions. Advertisements are also placed on noticeboards in the community.

Successful applicants complete a six week pre-vocational program off-property (Katherine Rural College this year), from which the Property Manager then selects up to 10 trainee station hands. The pre-vocational course teaches basic life skills and an introduction to general station hand duties, including a strong focus on health and safety.

Trainee graduates are then offered a job on Warrigundu, another ILC property or a pastoral property within the broader industry, based upon the graduates’ needs and goals.

Photo CS1.7 Yarding up at Warrigundu Station

Cook Assistants Cook Assistant positions follow the same process as outlined above, but do not complete a pre- vocational course at this stage.

25 back to top CASESTUDY warrigundu station northern territory

Machinery Operators (such as Grader Drivers) For machinery operators, the Property Manager and other Indigenous station staff know who has relevant operator tickets and skills within the local Minyerri community. They will generally approach people individually to offer work. Usually these employees return each season for these types of positions.

Cattle Committees ILC plan to commence governance training for the Cattle Committees in the future. Informal Training Warrigundu also has a strong focus on informal training and mentoring, whereby management encourages people to ‘have a go’ at various positions. At present, the Indigenous Head Stockman is being encouraged to advance his skill level with the view to progressing to the position of Assistant Manager. Diversification

As the ILC does not own the land but holds a Grazing Licence over it, it is not able to diversify in any way from a grazing operation. The opportunity to diversify, vests with the Traditional Owners of the Land Trusts and not the Lessee.

26 back to top case study 2 delta downs station queensland

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd delta downs station CASESTUDY#2 queensland Contents

Executive Summary 3 List of Tables Land and Property Information 6 Table CS2.1 C limate Average Delta Downs Aggregation 6 Annual Values 9 Location 6 Table CS2.2 S ummary of Delta Downs Traditional Owners 7 Cattle Numbers 31 December 2012 18 Te nur e 7 History 7 List of Figures Map 8 Figure CS2.1 L ocation of Delta Downs and Maggieville in Relation Cultural Issues 9 to Towns 6 Climate 9 Figure CS2.2 D elta Downs Land and Soil Types 9 Property Map 9 Vegetation 10 Figure CS2.3 M orr Morr Pastoral Property Infrastructure 10 Company Business Structure 14 Business Management 12 List of Photos Vision 12 Mission 12 Cover Photo – Brahman Cattle Business Objectives 12 Photo CS2.1 D elta Downs 4 Business Planning 13 Photo CS2.2 D elta Downs Station 8 Governance 13 Photo CS2.3 C attle Yarded During the First Round 10 Financial Management 15 Markets and Marketing 16 Photo CS2.4 M ustering Steers on the Karumba Plain 16 Grazing Land Management 17 Photo CS2.5 M ustering on Herd Management and Production 18 Delta Downs 19 Herd Size and Composition 18 Photo CS2.6 M ustering on Herd Management Operations 18 Delta Downs 2 20 Husbandry, Health and Welfare 19 Acknowledgements Supplementation Program 19 In writing this case study, the assistance of Vaccination Program 19 Mr Fred Pascoe, Director of Morr Morr Pastoral Co. Pty Ltd, Mr Alfred Pascoe, Vice Chairman Human Resource Management 21 of Morr Morr Pastoral Co. Pty Ltd and the staff Staff 21 of Delta Downs Station, particularly Mrs Leanne Edwards, has been invaluable. Staff Remuneration 21 They have been generous in supplying Staff Recruitment 21 information as well as the photos and maps Staff Training 22 included in the study. Occupational Health and Safety 22 back to start of manual Diversification 23

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Executive Summary Background The Delta Downs aggregation (‘Delta Downs’ or the ‘aggregation’) includes three adjoining properties in Queensland’s Gulf Country. These properties are Delta Downs, Maggieville Outstation and Karumba Downs. The aggregation covers approximately 390,000 hectares and runs 40,000 – 45,000 cattle, depending on seasonal conditions and time of year. The business is run from the Delta Downs Station.

The Traditional Owners (TOs) of the land encompassing the Delta Downs aggregation are the Kurtjar people.

Some of the key take out messages from the case study are as follows: Acquisition During the 1970s, Mr Rolly Gilbert, a local Kurtjar elder, began the push to acquire Delta Downs to return the land to its Traditional Owners and provide an economic base with employment and training opportunities for the Kurtjar people. He was supported in this by Mr Phillip Yanner, another local man from the Gulf community. Their efforts resulted in the acquisition of Delta Downs by the Federal Government, through the Aboriginal Development Commission (ADC). The purchase price of $1.8 million included the land of Delta Downs and Maggieville Outstation and over 20,000 head of cattle. Delta Downs and its business was handed over to the Kurtjar people in December 1982 and today, the property and herd is worth over $35 million.

That Delta Downs had a foundation herd in excess of 20,000 head, contrasts with many other Indigenous land acquisitions under the land rights framework. Most TOs acquire only the land and therefore must purchase livestock to commence operations. For many of these Indigenous businesses, it takes many years to build up a sustainable herd and achieve positive cash flows and profits. Delta Downs’ substantial foundation herd provided the business with a firm basis to generate cash flows and build the herd to its current 45,000 head.

In 1997, the Kurtjar people acquired the adjoining property, Karumba Downs, to increase the area for livestock production. In 2011, the business also acquired a small growing and fattening property outside Hughenden in northern Queensland. This property has enabled Delta Downs to decrease its reliance on the live export market and transfer and finish some of its turn off for domestic markets.

Over more than 30 years, Delta Downs has been run on strict business lines, enabling expansion and development to become the largest employer of Aboriginal people on a single grazing property in Queensland’s Gulf Country.

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Photo CS2.1 Delta Downs

Future Development However, future development of Delta Downs is hampered by its tenure which limits the business to pastoral operations and precludes the use of the land as collateral for financing purposes. However, Morr Morr Pastoral Company (MMPC) which operates the pastoral business on Delta Downs takes a flexible approach to exploring the business options that are available. While actively seeking to transfer the aggregation’s tenure from pastoral holdings to freehold, the Kurtjar people are also in- vestigating diversification business opportunities such as tourism, retail (butcher), market gardens and aquaculture. Governance Good governance is critical to operating a successful Indigenous business. All three properties in the aggregation are held by long term pastoral holding leases with the Queensland Government. Kurtjar Aboriginal Charitable Land Trust (KACLT) is the holder of the leases.

KACLT sub-leases the properties to MMPC which runs the business of the aggregation. MMPC is wholly owned by the Kurtjar Aboriginal Corporation (KAC).

MMPC’s sole purpose is to run the cattle business. Its separation from the land holding entity enables it run the pastoral business and return a profit and separate itself from cultural issues. Business Planning MMPC has an established framework and system for the development and implementation of a rolling five year business plan. All business planning is carried out by the Board with the assistance of its Executive Committee. The current business plan relates to the period 2011 to 2015. This is a living document that is reviewed each year to ensure that goals are being met and if not, to implement strategies, that will return the business to the direction of the ‘plan’.

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Expertise, Continuity and Stability Governance has improved from the early days through training and mentoring of Board members and a number of long term directors providing stability. However, at times, community politics has had a detrimental effect on the operation of the business. In the past, the whole Board was elected each year and all positions were up for election, apart from the company secretary and the mentor. This caused instability in governance and lack of continuity of knowledge. The Board is now elected on the basis of two year terms, with half the positions re-elected annually. At the commencement of MMPC, the Board employed non-Indigenous managers with a view to bringing the property’s land resources, infrastructure, management and operations up to an industry standard and to gradually transfer the required skills to local Indigenous people. The MMPC Board also made judicious use of outside consultants and mentors over the development period. While this practice continued for a long period, the long term objective was to transition MMPC and Delta Downs to Indigenous management. While the level of the skills, both operationally and culturally, of these non-Indigenous managers was mixed, the long term objective has been achieved.

Today, the Managers of Delta Downs are local Indigenous people - Mr Paul Edwards and his wife Leanne. Markets and Marketing Delta Downs has a competitive advantage in producing steers for the live export market due to its proximity to the port of Karumba and is also well positioned in relation to trucking yards. In recent years, Delta Downs has diversified its market options through selling a significant number of feeder steers and heifers into the store market in central Queensland.

The purchase of the property in Hughenden has also enabled MMPC to prepare a portion of its herd for the market seeking finished cattle. Herd Management Key performance indicators are in place with regard to herd efficiency such as branding and mortality rates and these are regularly monitored against the annual business plan. Delta Downs follows an annual herd management program in line with industry best practice in northern Australia. Human Resource Management MMPC is committed to the training and employment of local Indigenous people, particularly the local youth. Training is broadly provided each year to all levels of staff in areas that are relevant to the performance in their roles. Training is tailored for directors, management, staff and trainees. In addition to its job training courses, MMPC attempts to counter high staff turnover with regular induction training. A training alliance has been formed with Outstation North to provide additional experience to young workers. 5 back to top CASESTUDY delta downs station queensland

Land and Property Information Delta Downs Aggregation The Delta Downs aggregation (‘Delta Downs’ or the ‘aggregation’) includes three adjoining properties in Queensland’s Gulf Country. These properties are Delta Downs, Maggieville Outstation and Karumba Downs. The aggregation covers approximately 390,000 hectares and runs 40,000 – 45,000 cattle, depending on seasonal conditions and time of year. The business is run from the Delta Downs Station.

The aggregation breeds steers and heifers for the live export trade and re-stocking operations in the Central Highlands of Queensland. Cows and bulls culled for age and quality are also sold direct to the meatworks in Townsville. Location The aggregation is situated north of the townships of Normanton and Karumba. Although the southern boundary is only 20 km north of Normanton, the homestead is some 85 km north of the town. Delta Downs is located in the Carpentaria Shire.

Figure CS2.1 Location of Delta Downs and Maggieville in Relation to Towns

The property adjoins the town of Karumba, a port at the mouth of the Norman River. Until the Federal Government’s temporary cessation of live exports to Indonesia in 2011, Delta Downs mainly produced steers and heifers for the live export trade. The majority of its turn off was directed through the Port of Karumba. JBS Swift Meatworks in Townsville, some 800 km to the south east, also takes Delta Downs’ cull cows and bulls.

The Maggieville Outstation is situated on the sealed road from Normanton to Karumba, and is approximately 30 km from Normanton and 40 km from Karumba. Maggieville is the major livestock trucking centre for the aggregation, as most of the steers and saleable heifers are paddocked in the area.

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The southern boundary of the property is the Norman River, with the northern boundary being the Gilbert River. In between the rivers, there are a number of seasonal creeks that can flood extensively in an ‘above normal’ wet season. Traditional Owners The Traditional Owners (TOs) of the land encompassing the Delta Downs aggregation are the Kurtjar people. Te n u r e All three properties in the aggregation are held by long term pastoral holding leases with the Queensland Government. Kurtjar Aboriginal Charitable Land Trust (KACLT) is the holder of the leases. The Delta Downs Station and Maggieville Outstation leases expire in 2026.

KACLT sub-leases the properties to the Morr Morr Pastoral Company Pty Ltd (MMPC) which runs the business of the aggregation. MMPC, which is wholly owned by the Kurtjar Aboriginal Corporation (KAC), took its name from a site of significance some 500 metres across the creek from the Delta Downs homestead (Mirr Mirr).

History page 10 Page 13 Delta Downs has been operating as a beef cattle station Training is broadly pro ided each year to since the 1800s. The property had been continually Over more than 30 years, Delta Sophisticated systems, for the delivery of new all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of owned by four families since 1912 and during the management, sta and trainees. business lines, enabling expansion water points and supplement delivery, 1950s was recognised as having one of the largest A training alliance has been formed with and development to become the although they are state of the art, need sta Droughtmaster herds in Australia. Outstation North to pro ide additional largest employer of Aboriginal with the expertise to operate and people on a single grazing property experience to young workers. By the 1970s the property was in a run-down condition. maintain them or they can pro e to be quite in Queensland’s Gulf Country. costly in the long term. [ [ During this time, the property’s business was also [ [ disrupted by the national implementation of the Brucellosis and Tuberculosis Eradication Campaign (BTEC). Despite these problems, Mr Rolly Gilbert, a local Kurtjar elder, began the push to acquire Delta pageDowns 10 (2) to return the land to its TOs page 15 Page 15 (2) and provide an economic base with employment and training opportunities for the Kurtjar people. He was supported in this by Mr Phillip Yanner, another local man from the Gulf community. MMPC acquired 20,000 head MMPC has an established Good go ernance is critical to operating a Their efforts resulted in the acquisition of Delta Downs by the Federalof cattle asGovernment, well as the land through at the amework and system for the successful Indigenous business. MMPC’s Aboriginal Development Commission (ADC). The purchase pricethe of acquisition $1.8 million in 1982. included is the development and sole purpose is to run the cattle business. land of Delta Downs and Maggieville Outstation and over 20,000 headpro ided of cattle. the business The withpurchase a was implementation of a rolling ve Its separation om the land holding entity rm foundation to generate year business plan. enables it run the pastoral business and fully funded by the ADC. Delta Downs and its business was handed over to the Kurtjar people in cash ows and build the herd [ [ return a prot and separate itself om December 1982 and today, the property and herd is worth over $35 tomillion. its current 45,000 head. [ cultural issues. [ A foundation herd in excess of 20,000 head contrasts with [many other Indigenous land acquisi- [ Page 16/7 Page 16 tions under the land rights framework. Most TOs acquire only the land and therefore must purchase page 18 livestock to commence operations. For many of these Indigenous businesses, it takes many years to In the past, the whole Board was elected build up a sustainable herd and achieve positive cash flows and profits. each year and all positions were up for Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary A new Indigenous pastoral business is greatly advantaged if it ownsMMPC cattle right Board from has made the start to advantage in producing steers for the and the mentor. is caused instability in utilise the land acquisition. This is particularly important if the naturejudicious of the use land of outside tenure places a live export market due to its proximity go ernance and lack of continuity of consultants. to the port of Karumba and is also well knowledge. e Board is now elected on caveat on the land, thereby limiting commercial bank funding of stock purchases. positioned in relation to trucking yards. the basis of two year terms, with half the [ [ positions re-elected annually. 7 back to top [ [ page 18(2) page 20 page 19

Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has place with regard to herd eciency Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market against the annual business plan. in this unit are Indigenous employees. in central Queensland. In addition, Delta Downs will employ two people in 2013 as Rangers to work with the local group on weed control and hope that they may receive external funding assistance to establish these positions. In addition to its wide job training Delta Downs follows an annual [ [ courses, MMPC attempts to counter herd management program in line high sta turno er with regular with industry best practice in induction training. northern Australia. MMPC, in partnership with the KAC, would like to apply for eehold tenure of [ the aggregation. [ page 10 Page 13

MMPC acquired 20,000 head In the lateMMPC 1990s, has the an Kurtjar established people acquired the Good go ernance is critical to operating a of cattle as well as the land at adjoiningamework property, and Karumba system for Downs,the to increase the areasuccessful Indigenous business. MMPC’s the acquisition in 1982. is for livestock production.development and In 2011, the business also sole purpose is to run the cattle business. Its separation om the land holding entity pro ided the business with a acquiredimplementation a small growing of a rollingand fattening ve property outside rm foundation to generate year business plan. enables it run the pastoral business and the north Queensland town of Hughenden. This cash ows and build the herd [ [ return a prot and separate itself om to its current 45,000 head. property has enabled Delta Downs to decrease its cultural issues. [ [ reliance on the live export market and transfer and[ finish [ some of its turn off for domestic markets. Page 16/7 Page 16 page 18 In the past, the whole Board was elected Photo CS2.2 Delta Downs Station each year and all positions were up for Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in judicious use of outside live export market due to its proximity go ernance and lack of continuity of consultants. to the port of Karumba and is also well knowledge. e Board is now elected on positioned in relation to trucking yards. the basis of two year terms, with half the [ [ [ positions re-elected annually. [ page 18(2) page 20 page 19

Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has place with regard to herd eciency Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market against the annual business plan. in this unit are Indigenous employees. in central Queensland. In addition, Delta Downs will employ two people in 2013 as Rangers to work with Map the local group on weed control and hope that they may receive external funding Figure CS2.2 Delta Downs Property Map provides a property map for Delta Downs. As shown, all assistance to establish these positions. significant fences and yards are displayed, together with topography, watercourses, roadways and Instation addition buildings to its wide joband training headquarters. All of the paddocksDelta Downs are followsclearly an marked annual and named. [ [ courses, MMPC attempts to counter herd management program in line high sta turno er with regular with industry best practice in induction training. northern Australia. MMPC, in partnership with the KAC, would like to apply for eehold tenure of [ the aggregation. [

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Cultural Issues Figure CS2.2 Delta Downs Property Map The KAC has had a native title claim lodged against it for their traditional country which extends north to the Staaten River and includes Delta Downs. The Gkuthaarn people, another local group, are claiming that their country goes up to Snake Creek which is north of the Norman River and thus overlaps the Kurtjar claim. This claim is currently going through the Native Tribunal process and is yet to be heard. Climate The Gulf region in which Delta Downs is located has a tropical monsoonal climate, with hot, wet summers, and cooler dry winters. The closest long-term weather station is Karumba Airport, number 029028 (17.46°S, 140.83°E).

Table CS2.1 Climate Average Annual Values

Mean max temp 30.7°C Mean min temp 20.2°C Average rainfall 890.7 mm

Delta Downs can be affected by severe flooding at times, due to the Norman and Gilbert Rivers and their offshoots flowing through the property. Some parts of the coastal plain can be inundated by seawater during abnormally high tide events. Land and Soil Types Coastal Dunes Coastal dunes are predominantly siliceous or calcareous sands of low fertility and high permeability. Sand Plains These plains do not have a high water-holding capacity and tend to dry out quickly, some to a hard-setting surface. They are also relatively infertile.

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Drainage Lines and Flood Plains Due to their flat profile, inland drainage systems generally have wide floodplains and shallow, often braided, channels. Floodplains have deep alluvial soils, sometimes with gravel or sand beds. The soils are fertile and have a good capacity to absorb and retain soil moisture. Vegetation The vegetation on Delta Downs is predominantly coolibah open woodlands, fringed by river red gum woodland and including north-west ghost gum, bloodwoods, bauhinia, broad-leaved carbeen and gutta percha.

The major pasture grass species of value include black spear grass, golden beard grass, forest bluegrass, silky browntop and giant spear grass. However, there is some invasion by bunched kerosene grass and asbestos grass. The latter is spreading rapidly and degrading large areas of pasture.

A number of invasive weed species are also prevalent such as grader grass and mission grass.

Photo CS2.3 Cattle Yarded During the First Round

page 10 Page 13 Property Infrastructure Training is broadly pro ided each year to Over more than 30 years, Delta Sophisticated systems, for the delivery of new There are five major sets of cattle yards on the all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of aggregation, and numerous paddocks and management, sta and trainees. business lines, enabling expansion water points and supplement delivery, holding paddocks. A 56 km laneway from A training alliance has been formed with and development to become the although they are state of the art, need sta Outstation North to pro ide additional Delta to Maggievillelargest employerallows weaner of Aboriginal steers to with the expertise to operate and experience to young workers. be walked betweenpeople on the a singleproperties, grazing whichproperty has maintain them or they can pro e to be quite weaner[ educationin Queensland’s benefits. Gulf Country. [ costly in the long term. [ [ An extensive pipeline system carries water to numerous points over the Karumba plain to the west of Maggieville, while a smaller system runs water frompage Karumba 10 (2) to the western end of the plain. page 15 Page 15 (2)

This system was also linked to a water medication system to supply urea as protein to cattle at various wateringMMPC points acquired on the 20,000 plain. head Although quite expensive,MMPC it was has too an sophisticated established for station Good go ernance is critical to operating a of cattle as well as the land at amework and system for the successful Indigenous business. MMPC’s the acquisition in 1982. is development and 10 sole purpose is to run the cattle business. back to top pro ided the business with a implementation of a rolling ve Its separation om the land holding entity rm foundation to generate year business plan. enables it run the pastoral business and cash ows and build the herd [ [ return a prot and separate itself om [ to its current 45,000 head. [ [ cultural issues. [ Page 16/7 Page 16 page 18 In the past, the whole Board was elected each year and all positions were up for Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in judicious use of outside live export market due to its proximity go ernance and lack of continuity of consultants. to the port of Karumba and is also well knowledge. e Board is now elected on positioned in relation to trucking yards. the basis of two year terms, with half the [ [ [ positions re-elected annually. [ page 18(2) page 20 page 19

Another pipeline system covers a large part of the northern end of the property. The remainder is serviced mainly by water holes. Delta Downs homestead is supplied from a waterhole on the Gilbert River, while Maggieville is supplied from a hole in Walkers Creek.

In some cases, the waterholes that tend to become boggy late in the year are fenced off and water pumped into turkey nests via solar pumps and fed to troughs.

The property infrastructure has three homestead complexes. All the complexes are supplied with rural power from the north Queensland power grid.

• Delta Downs infrastructure includes the main station headquarters comprising housing, office, station store building, single accommodation units, governess quarters, school room, kitchen/ dining room, directors’ quarters, machinery sheds, meat house and generator shed. • Maggieville infrastructure includes housing, kitchen/dining room, single accommodation, meat house and sheds. • Karumba Downs’s infrastructure includes housing and sheds.

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Business Management

MMPC operates a ‘lean, mean, green’ business, with the main aim to maximise returns for the company. It is, above all, a professionally run business that is Indigenous-owned and operated. Vision The company vision is to:

• optimise profitability, by implementing strategies that improve returns for both the existing assets and any new assets acquired, and to further develop other cattle production businesses such as backgrounding or feedlot operations • maximise training opportunities for local Aboriginal people (with first preference given to Kurtjar people) to improve skills, enhance employment opportunities, and improve the efficiency of the company’s operation. Mission To operate a highly profitable cattle business that provides employment for Aboriginal people, and produces financial and social dividends to the local Kurtjar Aboriginal community. Business Objectives MMPC’s key business objectives are as follows:

• Herd and Production: »» 70% weaning rate for breeders »» mortality rates of 3.5% »» total herd of 48,000 head by 2015. • Sales: »» seek optimum price for all cattle turned off the property »» meet sales budget each year »» understand the market. • Cost Control: »» set budget targets at the start of each year as Manager’s Key Performance Indicators (KPIs) »» achieve expenses budgets as set »» look at each expenditure category for better utilisation of resources »» achieve costs in line with industry benchmarks. • Capital Expenditure: »» develop capital expenditure plan »» develop maintenance plan. »» Acquisition: »» purchase fattening/backgrounding property or develop a feedlot »» work with the KAC to establish other means of economic development (tourism ventures etc). 12 back to top page 10 Page 13

page 10 (2) page 15 Page 15 (2) Business Planning All business planning is carried out by the Board with the MMPC acquired 20,000 head MMPC has an established Good go ernance is critical to operating a assistance of its Executive Committeeof cattle as well (refer as the toland Governance at amework and system for the successful Indigenous business. MMPC’s Section for details). The currentthe acquisition business in 1982. plan relatesis to the development and sole purpose is to run the cattle business. period 2011 to 2015. pro ided the business with a implementation of a rolling ve Its separation om the land holding entity rm foundation to generate year business plan. enables it run the pastoral business and This is a living document cashthat owsis reviewed and build each the herdyear to [ [ return a prot and separate itself om ensure that goals are being metto its andcurrent if not, 45,000 to implementhead. cultural issues. strategies, that will[ return the business to the direction of [ [ [ Page 16/7 the ‘plan’. The businessPage plan 16 is a comprehensive document designed to provide the road map for the page 18 achievement of the key business objectives. The plan typically contains: In the past, the whole Board was elected each year and all positions were up for • Executive SummaryOver its thirty year history, the Delta Downs has a competitive election apart om the company secretary • History and BackgroundMMPC Board has made advantage in producing steers for the and the mentor. is caused instability in judicious use of outside live export market due to its proximity go ernance and lack of continuity of • Business Structure consultants. to the port of Karumba and is also well knowledge. e Board is now elected on page 10 Page 13 • Marketing positioned in relation to trucking yards. the basis of two year terms, with half the [ [ positions re-elected annually. • Operational Plan Training is broadly pro ided each year to Over more than 30 years, Delta [Sophisticated systems, for the delivery of new [ all levels of sta including Directors, • Risk Management Plan Downs has been run on strict technologies such as telemetric control of page 18(2) page 20 management, sta and trainees. business lines, enabling expansion pagewater 19 points and supplement delivery, • Financial Plan A training alliance has been formed with and development to become the although they are state of the art, need sta Key performancelargest employer indicators of Aboriginal are in MMPC uses the Normanton Ranger Outstation North to pro ide additional • Action Plan. In recent years, Delta Downs has with the expertise to operate and place peoplewith regard on a single to herd grazing eciency property Unit, which is a section of the Carpentaria experience to young workers. diversied its market options through maintain them or they can pro e to be quite such as brandingin Queensland’s and mortality Gulf Country. rates Land Council Aboriginal Corporation Governance selling a signicant number of feeder costly in the long term. [ [ and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market [ [ in this unit are Indigenous employees. against the annual business plan. Structure in central Queensland. The business was originally set up to be 100% owned by the Federal Government and held in trust In addition, Delta Downs will employ two by the ADC for the Kurtjar community. At handover in 1982, MMPCpage reverted 10 (2) to the Kurtjar pagepeople 15 in 2013 as Rangers to work with Page 15 (2) the local group on weed control and hope people and KAC is now the sole shareholder. The business structure for MMPC is shown in Figure that they may receive external funding CS2.3 (over page). MMPC acquired 20,000 head assistanceMMPC hasto establish an established these positions. Good go ernance is critical to operating a The KAC, which is formed from 14 moiety groups who are the TOs of Deltaof cattle Downs, as well electsas the landthe at10 amework and system for the successful Indigenous business. MMPC’s In addition to its wide job training Delta Downs follows an annual development and sole purpose is to run the cattle business. member Board of MMPC from the local Kurtjar community. The Board themeets acquisition every twoin 1982. months. is [ [ courses, MMPC attempts to counter herd managementpro ided theprogram business in linewith a implementation of a rolling ve Its separation om the land holding entity In addition, there ishigh an staExecutive turno er Committee with regular that includes the Chairman,with industry Vicerm foundation Chairman, best practice to generateone in year business plan. enables it run the pastoral business and Non - Executive Director,induction Manager training. and the Company Secretary. The purposenortherncash owsof Australia.the and Executive build the herd [MMPC, in partnership with the KAC,[ return a prot and separate itself om Committee is to provide operational advice to the Board. The Company Secretaryto its current position 45,000 is head. filled would like to apply for eehold tenure of cultural issues. the aggregation. by a professional accountant from a commercial accountancy firm[ based in Townsville. The Board [ [ [ [ [ Page 16/7 has developed a trusted relationship with the Company Secretary. Page 16 page 18 KACLT has its own separate Board which is formed by the In the past, the whole Board was elected each year and all positions were up for elders of each of the 14 moiety groups or clans. Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in MMPC pays an annual dividend to the KAC. At present, judicious use of outside live export market due to its proximity go ernance and lack of continuity of this annual dividend is $250,000 which is paid pro rata, on consultants. to the port of Karumba and is also well knowledge. e Board is now elected on a monthly basis. positioned in relation to trucking yards. the basis of two year terms, with half the [ [ [ positions re-elected annually. [ page 18(2) page 20 page 19 13 back to top Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has place with regard to herd eciency Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market against the annual business plan. in this unit are Indigenous employees. in central Queensland. In addition, Delta Downs will employ two people in 2013 as Rangers to work with the local group on weed control and hope that they may receive external funding assistance to establish these positions. In addition to its wide job training Delta Downs follows an annual [ [ courses, MMPC attempts to counter herd management program in line high sta turno er with regular with industry best practice in induction training. northern Australia. MMPC, in partnership with the KAC, would like to apply for eehold tenure of [ the aggregation. [ CASESTUDY delta downs station queensland

Figure CS2.3 Morr Morr Pastoral Company Business Structure

SHAREHOLDERS LAND HOLDERS Kurtjar Aboriginal Corporation Kurtjar Aboriginal Charitable

Morr Morr Pastoral Company P/L

EXECUTIVE BOARD COMPANY COMMITTEE SECRETARY Chairman Vice Chairman Chairman Vice Chairman Non Executive Director Director Director Manager Director Director Company Secretary Director Director

Director Director

Outside Expertise In its early days, the company secretary of the original owners (Mr Gerald Norton-Knight) stayed on as secretary for a couple of years and provided some continuity to the fledgling business. The ADC also provided a business training advisor, Mr Peter Beasley, at the start.

In 1988, a respected and highly experienced cattle industry figure, Mr Bill Hughes, was invited to join the Board as a member and mentor. Mr Hughes provided guidance over many years throughout the development period of Delta Downs. Continuity and Stability Governance has improved from the early days through training and mentoring of Board members and a number of long term directors providing stability. However, community politics, at times, has had a detrimental effect on the operation of the business.

At the commencement of MMPC, the Board employed non-Indigenous managers with a view to bringing the property’s land resources, infrastructure, management and operations up to an industry standard and to gradually transfer the required skills to local Indigenous people.

This practice continued for a long period - however the long term objective remained - to transition MMPC and Delta Downs to Indigenous management. While the level of operational and cultural skills of these non-Indigenous managers was mixed, the long term objective has been achieved.

Today, the Managers of Delta Downs are local Indigenous people, Mr Paul Edwards and his wife Leanne. Mr Edwards, a former Delta contract musterer, has grown into the job and with the support of the Board, is developing a broader range of skills.

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CASESTUDY delta downs station queensland Training is broadly pro ided each year to Over more than 30 years, Delta Sophisticated systems, for the delivery of new all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of management, sta and trainees. business lines, enabling expansion water points and supplement delivery, Financial Management A training alliance has been formed with and development to become the although they are state of the art, need sta Outstation North to pro ide additional largest employer of Aboriginal with the expertise to operate and MMPC employs a professional accounting firm from Townsville to carryexperience out the today young to dayworkers. people on a single grazing property accountingmaintain activities. them This or theyis backed can pro e up to by be on-stationquite bookkeeping carried out by Leanne Edwards in Queensland’s Gulf Country. using MYOB. All accountscostly in theare long verified term. on-station and then forwarded[ to Townsville for payment. [ [ Although[ it is not legally required, the business carries out an annual audit to verify accounts, wages payments, superannuation and income. A staff timesheet book is kept on-station and the details forwarded to Townsville where wages are calculated and paid. page 10 (2) page 15 Page 15 (2) The company deals through a commercial bank and carries a facility that was originally negotiated MMPC acquired 20,000 head when ‘KarumbaMMPC Holdings’ has an was established purchased. Although this facility Good has go ernance been repaid, is critical the to loan operating is kept a of cattle as well as the land at current to allowamework a $500,000 and systemdraw downfor the to carry the business throughsuccessful Indigenousthe wet season. business. MMPC’s the acquisition in 1982. is development and sole purpose is to run the cattle business. pro ided the business with a The companyimplementation has also purchased of a rolling a small ve backgrounding/fatteningIts separation property om thenamed land holdingGlendaloch, entity rm foundation to generate located near Hughenden.year business This plan. purchase has been achieved throughenables ita runbank the loan. pastoral The business land andon cash ows and build the herd Delta Downs[ must remain unencumbered. However,[ the largereturn herd ofa prot cattle and provides separate securityitself om to [ to its current 45,000 head. the[ borrowings. [ cultural issues. [ Page 16/7 Page 16 MMPC’s current financial facilities include: page 18 • Commercial Bill Facility In the past, the whole Board was elected each year and all positions were up for Over its thirty year history, the • OverdraftDelta Downs has a competitive election apart om the company secretary MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in • Equipment Finance Facility judicious use of outside live export market due to its proximity go ernance and lack of continuity of consultants. • Propertyto the port Finance of Karumba Loan. and is also well knowledge. e Board is now elected on positioned in relation to trucking yards. the basis of two year terms, with half the The [company considers that these financial -ar [ positions re-elected annually. rangements are sufficient. [ [ page 18(2) The majorpage source 20 of income is through significant cattle pagesales. 19 A number of other mechanisms are used to monitor and evaluate the performance of the Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has business. These include: place with regard to herd eciency Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder • regular audits and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market against the annual business plan. in this unit are Indigenous employees. in central Queensland. • risk management plans and register • reporting to the Board by management and accounting.In addition, Delta Downs will employ two people in 2013 as Rangers to work with the local group on weed control and hope that they may receive external funding assistance to establish these positions. In addition to its wide job training Delta Downs follows an annual [ [ courses, MMPC attempts to counter herd management program in line high sta turno er with regular with industry best practice in induction training. northern Australia. MMPC, in partnership with the KAC, would like to apply for eehold tenure of [ the aggregation. [

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Training is broadly pro ided each year to page 10 Over more than 30 years, Delta Page 13 Sophisticated systems, for the delivery of new all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of management, sta and trainees. business lines, enabling expansion water points and supplement delivery, Training isA broadly training pro ided alliance eachhas been year formedto with Over moreand than development 30 years, Delta to become the Sophisticatedalthough systems, they for arethe statedelivery of the of art,new need sta all levelsOutstation of sta including North Directors,to pro ide additional Downs haslargest been employerrun on strict of Aboriginal technologies suchwith as the telemetric expertise control to operate of and management,experience sta and to trainees. young workers. business lines,people enabling on a single expansion grazing property water pointsmaintain and themsupplement or they delivery, can pro e to be quite A training alliance has been formed with and developmentin Queensland’s to become Gulf the Country. although they are statecostly of thein theart, long need term. sta Outstation[ North to pro ide additional [ largest employer of Aboriginal with the expertise to operate and [ [ experience to young workers. people on a single grazing property maintain them or they can pro e to be quite in Queensland’s Gulf Country. costly in the long term. [ [ [ page 10 (2) [ page 15 Page 15 (2)

page 10 (2) MMPC acquired 20,000 head page 15 MMPC has an established Page 15 (2) Good go ernance is critical to operating a of cattle as well as the land at amework and system for the successful Indigenous business. MMPC’s the acquisition in 1982. is development and sole purpose is to run the cattle business. MMPC acquiredpro ided 20,000 the business head with a MMPCimplementation has an established of a rolling ve Good go ernanceIts separation is critical om to the operating land holding a entity of cattle as rmwell asfoundation the land atto generate amework and yearsystem business for the plan. successful Indigenousenables it run business. the pastoral MMPC’s business and the acquisitioncash owsin 1982. and isbuild the herd [development and [ sole purposereturn is to run a prot the cattle and separate business. itself om CASESTUDYpro ided thedeltato businessits current downs with 45,000 a stationhead. queenslandimplementation of a rolling ve Its separation om the landcultural holding issues. entity [rm foundation to generate [ year business plan. enables[ it run the pastoral business and [ cash ows and build the herd [ [ returnPage a prot 16/7 and separate itself om Page 16 Marketsto and its current Marketing 45,000 head. page 18 cultural issues. [ [ [ In the past, the whole Board was elected[ Page 16/7 each year and all positions were up for MMPCPage conducts 16 a cattle breeding enterprise on Over its thirty year history, the page 18 Delta Downs has a competitive election apart om the company secretary Delta Downs and sellsMMPC steers Board at 18-24 has made months old advantage in producing steers for the In the past,and the the whole mentor. Board is was caused elected instability in into the re-stocker marketjudicious in usecentral of outside Queensland live export market due to its proximity each year andgo ernance all positions and were lack ofup continuity for of and to theOver live its export thirty yeartrade. consultants.history, Traditionally, the Delta Delta toDowns the port has of a Karumbacompetitive and is also well election apartknowledge. om the ecompany Board secretary is now elected on Downs has MMPCproduced Board steers has formade the live export advantagepositioned in producing in relation steers forto truckingthe yards. and the mentor.the basis is of caused two year instability terms, with in half the judicious use of outside live export market due to its proximity go ernance andpositions lack of re-elected continuity annually. of market. Fortunately, the practice of selling steers [ [ consultants. to the port of Karumba and is also well knowledge. e Board is now elected on into the re-stocker market began before the disruption to the live export market in 2011. [ [ positioned in relation to trucking yards. the basis of two year terms, with half the page 18(2) [ page 20 [ positionspage 19 re-elected annually. As a result, MMPC has been able to deal with repeat re-stocker buyers and the blow was softened to some extent. However the live export crash removed the floor price for cattle which has flowed [onto [ Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has store pagecattle 18(2) prices. page 20 place with regard to herd eciency page 19 Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder Heifers areKey sold performance toand advantage these indicators are regularly through are in monitored an agent to MMPC(CLCAC), uses the Normanton to combat Rangerweeds. e Rangers In recentsteers years, and Delta heifers Downs into thehas store market either theplace re-stocker with againstregard or tothe the herd annuallive eciency export business market. plan. Access Unit, which inis athis section unit ofare the Indigenous Carpentaria employees. diversied its marketin central options Queensland. through to abattoirssuch asin branding Townsville and mortality(and previously rates Innisfail) has Land Council Aboriginal Corporation selling a signicant number of feeder and these are regularly monitored (CLCAC),In to addition, combat weeds.Delta Downse Rangers will employ two steers and heifers into the store market also provided the company with a regular market for against the annual business plan. in this unitpeople are Indigenousin 2013 as Rangersemployees. to work with in central Queensland. slaughter cattle. This market has not changed. the local group on weed control and hope In addition,that Delta they Downs may receivewill employ external two funding people in 2013assistance as Rangers to establish to work these with positions. the local group on weed control and hope Although DeltaIn addition Downs to itsis widerelatively job training remote, cull cows and bullsDelta can Downs be transported follows an annual economically to [that they may receive external funding [ the abattoircourses, in Townsville MMPC attempts which tocontrasts counter to pastoral businessesherd inmanagement the NT that program do not in line have access to assistance to establish these positions. significant localhigh stameat turno er processing with regularfacilities. with industry best practice in In addition to its wideinduction job training training. Delta Downs followsnorthern an annual Australia. [ MMPC, in partnership with the KAC, [ Thecourses, Manager MMPC has attempts visited to the counter JBS Swift meatworks herdin Townsville management to program gain an in understandingline of the would like to apply for eehold tenure of high sta turno er with regular with industry best practice in the aggregation. slaughter process and its grading system. Kill sheets are also studied to better understand the markets induction training. northern Australia. MMPC,[ in partnership with the KAC, [ and pricing and grading systems. would like to apply for eehold tenure of the aggregation. Other market information is received through local livestock agents and news reports. [ [ Photo CS2.4 Mustering Steers on the Karumba Plain

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Training is broadly pro ided each year to Over more than 30 years, Delta Sophisticated systems, for the delivery of new all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of management, sta and trainees. business lines, enabling expansion water points and supplement delivery, A training alliance has been formed with and development to become the although they are state of the art, need sta Outstation North to pro ide additional largest employer of Aboriginal with the expertise to operate and experience to young workers. people on a single grazing property maintain them or they can pro e to be quite [in Queensland’s Gulf Country. [ costly in the long term. [ [ CASESTUDY delta downs station queensland page 10 (2) page 15 Page 15 (2) Grazing Land Management MMPC acquired 20,000 head MMPC has an established Good go ernance is critical to operating a of cattle as well as the land at The aggregationamework and is systemprone forto theflooding during the wetsuccessful season Indigenousand in the business. past five MMPC’s years has experienced the acquisition in 1982. is two extremedevelopment flood events. and These floods have had a soledetrimental purpose is toeffect run the on cattle the business.land and pasture and has pro ided the business with a causedimplementation delays to the of implementation a rolling ve of MMPC’s landIts separationmanagement om theplans. land holding entity rm foundation to generate year business plan. enables it run the pastoral business and cash ows and build the herd These[ floods, combined with the disruption[ to the livereturn export a prot market, and separate have itselfcaused om financial diffi- to its current 45,000 head. culties for most northern rural businesses over [the past five years.cultural As a issues.result, the amount of [ money [ [ and time that has been able to be expended on activities such as weed control has reduced, to the Page 16/7 Page 16 detriment of the aggregation’s land resources. However, MMPC is not the only rural-based company page 18 that has had to cope with these problems in recent years.In the past, the whole Board was elected each year and all positions were up for Over its thirty year history, the A numberDelta Downs of introduced has a competitive weeds, both woody weeds andelection grasses, apart areom evident the company on the secretary aggregation. This MMPC Board has made problemadvantage is inparticularly producing steers evident for the in the Karumba Downsand area, the mentor. adjacent is tocaused the instabilitytownship. in These include: judicious use of outside live export market due to its proximity go ernance and lack of continuity of consultants. Woodyto the port weeds: of Karumba and is also well knowledge. e Board is now elected on positioned in relation to trucking yards. the basis of two year terms, with half the [• mimosa [ positions re-elected annually. • prickly acacia [ [ page 18(2) page• chinee 20 apple page 19 • parkinsonia Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has •place rubbervine. with regard to herd eciency Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder Shrubby weeds: and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market against the annual business plan. in this unit are Indigenous employees. in central Queensland. • bellyache bush • calotrope/cabbage tree In addition, Delta Downs will employ two people in 2013 as Rangers to work with • hyptis (stinking Roger) the local group on weed control and hope that they may receive external funding • castor oil bush assistance to establish these positions. • noogoora burr. In addition to its wide job training Delta Downs follows an annual [ [ courses, MMPC attempts to counter Grassesherd management (less desirable): program in line high sta turno er with regular with industry best practice in induction training. • gradernorthern grass Australia. MMPC, in partnership with the KAC, would like to apply for eehold tenure of • asbestos grass the aggregation. • kapok bush. [ [

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CASESTUDY deltapage 10 (2)downs station queensland page 15 Page 15 (2)

MMPC acquired 20,000 head MMPC has an established Good go ernance is critical to operating a Herd Managementof cattle and as well Production as the land at amework and system for the successful Indigenous business. MMPC’s the acquisition in 1982. is development and sole purpose is to run the cattle business. Herd Size and Compositionpro ided the business with a implementation of a rolling ve Its separation om the land holding entity enables it run the pastoral business and A summary of the Delta Downsrm foundation herd movement to generate for the year ended 31st Decemberyear business 2012 plan. cash ows and build the herd [ [ return a prot and separate itself om is shown below. [ to its current 45,000 head. [ [ cultural issues. [ Page 16/7 Table CS2.2 SummaryPage of 16 Delta Downs Cattle Numbers 31 December 2012 page 18 Herd Opening Natural Closing In the past, the whole Board was elected Numbers Numbers Purchases Increase Add Sales Rations Deaths Numbers each year and all positions were up for Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary FEMALES MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in Joined 25,259 0judicious use of0 outside 0 1,266 live23 export market513 due to its23,457 proximity go ernance and lack of continuity of Females consultants. to the port of Karumba and is also well knowledge. e Board is now elected on Unjoined 5,661 0 5,712 0 17 positioned0 in relation176 to trucking11,180 yards. the basis of two year terms, with half the Females [ [ positions re-elected annually. Speyed 292 0 0 140 0 0 5 427 [ [ Total 31,212 0 5,852 0 1,283 23 694 35,064 page 18(2) page 20 page 19 Females

MALES Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has place with regard to herd eciency Unit, which is a section of the Carpentaria Steers 8,271diversied0 its market options6,226 through 0 5,599 5 221 8,672 such as branding and mortality rates Land Council Aboriginal Corporation Bulls 970selling a signicant163 number0 of feeder 220 278 0 16 1,059 and these are regularly monitored (CLCAC), to combat weeds. e Rangers steers and heifers into the store market Total Males 9,241 163 6,226 220 5,877 5against the annual237 business9,731 plan. in this unit are Indigenous employees. in central Queensland. Herd Total 40,453 163 12,078 220 7,160 28 931 44,795 In addition, Delta Downs will employ two people in 2013 as Rangers to work with the local group on weed control and hope Herd Management Operations that they may receive external funding assistance to establish these positions. Heifers are joined in November after a cull for temperament, In addition to its wide job training Delta Downs follows an annual conformation and defects. Bulls are purchased from [ [ courses, MMPC attempts to counter herd management program in line recognised reliable studshigh sta and turno er herd quality with regular has improved over with industry best practice in time. Newly purchased, qualityinduction young training. bulls are joined to the northern Australia. MMPC, in partnership with the KAC, maiden heifers. would like to apply for eehold tenure of the aggregation. The property conducts two rounds of mustering each year. [ [ The first round from April until July is the major round, during which the following processes are carried out:

• Draft cows and remove cows suitable for sale. • Draft bulls and remove bulls suitable for sale. • Draft weaners. • Move steers to Maggieville and paddock heifers close to the Delta Downs yards. • Draft off and mark the calves. • Add weaner calves to the other weaner groups.

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The second round from August to November is mainly a weaning round, together with marking new calves and those missed in the first round. In addition, the last of the sale cattle are marketed and heifers are prepared for joining. Photo CS2.5 Mustering on Delta Downs

Husbandry, Health and Welfare Historically, the Queensland Department of Primary Industries provided extension assistance to agricultural and rural properties throughout the state. However, the involvement of the department in extensive pastoral properties in the north west has reduced significantly over the past 15-20 years. As a result, MMPC currently seeks advice on herd management from:

• product suppliers for nutrition • local veterinary surgeon and livestock agents for vaccines and other herd health issues. Supplementation Program Between July and the start of the storms which mark the commencement of the wet season, a urea-based dry season supplement is supplied to selected breeder groups, depending on their lactation status. This supplement is usually a loose mix. Weaners and growing heifers are also supplemented during the dry season.

Wet season supplementation is not normally part of the nutrition regime. Vaccination Program During the first round, the vaccination program includes:

• Cows returned to the paddock are vaccinated for botulism with Singvac. • Bulls returned to the paddock are vaccinated for botulism with Singvac and vibriosis with Vibrovax. • All weaners receive a vaccination for botulism with Singvac. Weaners taken off their mothers during the second round receive a botulism vaccination. 19 back to top CASESTUDY delta downs station queensland

Photo CS2.6 Mustering on Delta Downs 2

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Human Resource Management

Being an Indigenous-owned pastoral company, MMPC is committed to the training and employment of local Indigenous people, particularly the local youth. It conducts numerous training initiatives throughout the year, as well as providing seasonal employment.

The company takes professional advice from its accountants on all financial matters. In the past, MMPC has retained consultants to assist with the cattle operation and, as previously explained, included a mentor on the Board for a long period. While the Board is now made up entirely of local Kurtjar representatives, MMPC still seeks outside expertise when necessary. Staff The day to day business of the Delta Downs aggregation is managed by an Indigenous Station Manager, supported by his wife who is responsible for station bookkeeping using MYOB and the running of the station store. Strong communication protocols are in place between management and MMPC’s accountants in Townsville.

An Assistant Manager is based at Maggieville. Delta Downs and Maggieville each has an Overseer/ Head Stockman. An Overseer is employed at Karumba Downs who works alone unless there is a major job where he requires assistance.

Other positions are:

Delta Downs:

• grader driver • gardener • governess • mechanic • stockmen • trainee stockmen.

Maggieville:

• stockmen • trainee stockmen. Staff Remuneration All staff employed by MMPC are paid under the Federal Pastoral Award (2009). Staff Recruitment The majority of staff are recruited from the nearby centre of Normanton and all training is related to employment outcomes. The local community provides the staff for the trainee programs as well as experienced people as mentors for the young trainees. There is a large group of eligible local people who are experienced in station duties, as well as a significant youth base, who are interested in station employment. 21 back to top page 10 Page 13

Training is broadly pro ided each year to Over more than 30 years, Delta Sophisticated systems, for the delivery of new CASESTUDY delta downs station queensland all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of management, sta and trainees. business lines, enabling expansion water points and supplement delivery, A training alliance has been formed with and development to become the although they are state of the art, need sta Staff Training Outstation North to pro ide additional largest employer of Aboriginal with the expertise to operate and experience to young workers. The Managerpeople ison a a local single Indigenous grazing property man and is backedmaintain up by staff them orwho they are can all pro e local to bepeople. quite in Queensland’s Gulf Country. costly in the long term. [ [ The[ Indigenous Employment Program has [ assisted in implementing training programs at Delta Downs in the past. However, this will be replaced by the Remote Jobs and Communities Program in 2013. The program is operated by the Australian Government’s Department of Education, Employmentpage 10 (2) and Workplace Relations. page 15 Page 15 (2)

In house governance training is provided to incoming directors by the company secretary. In addition,MMPC a directors’ acquired trip 20,000 to important head industry events andMMPC also has other an established properties is arranged Good go ernance is critical to operating a successful Indigenous business. MMPC’s each year toof broaden cattle as well directors’ as the land knowledge at of the industry.amework and system for the the acquisition in 1982. is development and sole purpose is to run the cattle business. Its separation om the land holding entity Senior staffpro ided attend ‘Grazingthe business for with Profit’ a courses run by implementationRCS. The Grazing of a rolling for veProfit School is rm foundation to generate year business plan. enables it run the pastoral business and Australia’s longest running business school for the grazing industry and is highly regarded cash ows and build the herd [ [ return a prot and separate itself om throughout[ theto its industry. current 45,000 head. [ [ cultural issues. [ There are a number of other courses conducted each year and these can include: Page 16/7 Page 16 page 18 • stock handling • mechanical repairs In the past, the whole Board was elected each year and all positions were up for • animal husbandry • fencing and maintenance Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary • horsemanshipMMPC Board has made • cooking andadvantage domestic in work producing steers for the and the mentor. is caused instability in judicious use of outside live export market due to its proximity go ernance and lack of continuity of • plant operationconsultants. • first aid to the port of Karumba and is also well knowledge. e Board is now elected on • four wheel driving • butchering.positioned in relation to trucking yards. the basis of two year terms, with half the [ [ positions re-elected annually. page 10 Page 13 Each year MMPC provides on-the-job training [ [ to four to eight young people. A training alliance page 18(2) page 20 Training is broadly pro ided each year to page 19 Over more than 30 years, Delta Sophisticated systems, for the delivery of new has been formed with Outstation North which is all levels of sta including Directors, Downs has been run on strict technologies such as telemetric control of run by Damian Curr from Springvale Station near, Key performancemanagement, indicators are sta in and trainees. MMPC uses the Normanton Ranger business lines, enabling expansion In recentwater years, points Delta and supplementDowns has delivery, Cooktown. The reciprocal arrangement enables the place with regardA training to herd alliance eciency has been formed with Unit, which is a section of the Carpentaria and development to become the diversiedalthough its theymarket are optionsstate of throughthe art, need sta such as brandingOutstation and mortality North to rates pro ide additional Land Council Aboriginal Corporation largest employer of Aboriginal twoselling businesses a signicantwith tothe swap expertise number four to of traineesoperate feeder and each year. This and these are regularlyexperience monitored to young workers. (CLCAC), to combat weeds. e Rangers people on a single grazing property hassteers beenmaintain and successful heifers them into orin thethey providing store can marketpro e young to be quite people with against the annual business plan. in this unit are Indigenous employees. in Queensland’s Gulf Country. varied experience.in centralcostly Queensland. in the long term. [ [ [ [ In addition, Delta Downs will employ two people in 2013 as Rangers to work with the local group on weed control and hope page 10 (2) Occupationalpage 15 Health and Safety Page 15 (2) that they may receive external funding The Board understands its obligations under Occupation- assistance to establish these positions. In addition to its wide job training al Health and SafetyDelta Downs(OH&S). follows A ansystem annual was originally MMPC acquired 20,000 head MMPC has an established Good go ernance is critical to operating a [ [ courses, MMPC attempts to counter implemented followingherd management on from program the RITE in line model. Currently it amework and system for the successful Indigenous business. MMPC’s of cattle as well as the land at high sta turno er with regular with industry best practice in development and has a ‘MONIT’ systemsole purpose in place is to www.monit.com.au run the cattle business. , which is the acquisition in 1982. is induction training. northern Australia. MMPC, in partnership with the KAC, implementation of a rolling ve an online OH&S Itssystem. separation om the land holding entity pro ided the business with a would like to apply for eehold tenure of year business plan. enables it run the pastoral business and rm foundation to generate the aggregation. cash ows and build the herd [ [ return a prot and separate itself om cultural issues. [ [ [ to its current 45,000 head. [ [ [ Page 16/7 Page 16 page 18 In the past, the whole Board was elected 22 each year and all positions were up forback to top Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in judicious use of outside live export market due to its proximity go ernance and lack of continuity of consultants. to the port of Karumba and is also well knowledge. e Board is now elected on positioned in relation to trucking yards. the basis of two year terms, with half the [ [ [ positions re-elected annually. [ page 18(2) page 20 page 19

MMPC acquired 20,000 head MMPC has an established Good go ernance is critical to operating a of cattle as well as the land at amework and system for the successful Indigenous business. MMPC’s the acquisition in 1982. is development and sole purpose is to run the cattle business. pro ided the business with a implementation of a rolling ve Its separation om the land holding entity rm foundation to generate year business plan. enables it run the pastoral business and cash ows and build the herd [ [ return a prot and separate itself om [ to its current 45,000 head. [ [ cultural issues. [ Page 16/7 Page 16 page 18 In the past, the whole Board was elected each year and all positions were up for Over its thirty year history, the Delta Downs has a competitive election apart om the company secretary MMPC Board has made advantage in producing steers for the and the mentor. is caused instability in judicious use of outside live export market due to its proximity go ernance and lack of continuity of consultants. to the port of Karumba and is also well knowledge. e Board is now elected on positioned in relation to trucking yards. the basis of two year terms, with half the CASESTUDY delta downs station queensland [ [ [ positions re-elected annually. [ page 18(2) page 20 Diversification page 19 The current system of tenure on pastoral lands in Queensland precludes any significant Key performance indicators are in MMPC uses the Normanton Ranger In recent years, Delta Downs has place with regard todiversification herd eciency of business activities.Unit, which is a section of the Carpentaria diversied its market options through such as branding and mortality rates Land Council Aboriginal Corporation selling a signicant number of feeder and these are regularlyFreehold monitored tenure would allow the development(CLCAC), to combat of other weeds. non-pastoral e Rangers businesses at Delta Downs, steers and heifers into the store market against the annualsuch business as tourism. plan. Proximity to the coastin this of unitthe areGulf Indigenous of Carpentaria employees. provides the property with many in central Queensland. attractions to interest the tourists. In addition, Delta Downs will employ two Other options such as a butcher shoppeople in Karumba,in 2013 as Rangers aquaculture to work and with market gardening have also been the local group on weed control and hope discussed as possibilities to augmentthat income they may for receive the company external funding should the issue of tenure be resolved in its favour. assistance to establish these positions. In addition to its wide job training Delta Downs follows an annual [ [ courses, MMPC attempts to counter herd management program in line high sta turno er with regular with industry best practice in induction training. northern Australia. MMPC, in partnership with the KAC, would like to apply for eehold tenure of [ the aggregation. [

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case study 3 lamboo station kimberley, western australia

MANAGING INDIGENOUS PASTORAL LANDS

McClelland Rural Services Pty Ltd lamboo station CASESTUDY#3 kimberley, WA Contents List of Tables Executive Summary 3 Table CS3.1 C limate Average Land and Property Information 7 Annual Values 11 Lamboo 7 Table CS3.2 Lamb oo Station Location 7 Herd Numbers, 1 January 2013 18 Te nur e 8 List of Figures History 8 Map 10 Figure CS3.1 L ocation of Lamboo Station in Relation to Halls Creek 7 Climate 11 Figure CS3.2 M ap of the Northern Section Land Types – Soils 11 of Lamboo Station 10 Land Types – Vegetation 11 Figure CS3.3 Lamb oo Station Property Infrastructure 11 Board Structure 14 Business Management 13 List of Photos Vision 13 Cover Photo - Termite mound Mission 13 Photo CS3.1 Co nstructing New Yards 12 Management 13 Photo CS3.2 Co nstructing Trap Gates 12 Business Planning 13 Photo CS3.3 G overnance Training 22 Governance 14 Photo CS3.4 S tockmanship Training 22 Financial Information 15 Photo CS3.5 B urks Park Graduates 23 Markets and Marketing 17 Grazing Land Management 17 back to start of manual Herd Management and Production 18 Herd Size and Composition 18 Herd Management Operations 18 Supplementation Program 19 Husbandry, Health and Welfare 20 Vaccination Program 20 Welfare and Handling 20 Human Resource Management 21 Staff 21 Staff Remuneration 21 Staff Recruitment 21 Staff Training 22 Occupational Health and Safety 23 Diversification 23 Attachment 1: Example of Lamboo Station Workplan 24 2 CASESTUDY lamboo station kimberley, western australia

Executive Summary Background Lamboo Station is owned by the Ngunjiwirri Aboriginal Corporation (NAC) on behalf of the Ngunjiwirri people. Lamboo is an Indigenous station in the East Kimberley. The property was purchased in 1994 by the (then) Aboriginal and Torres Strait Islander Commission (ATSIC) through the WA Aboriginal Lands Trust (ALT) and handed over to the local people in the same year.

Some of the key take out messages from the case study are as follows: Early Objectives of the Land Transfer to the Ngunjiwirri People At the time of the purchase of Lamboo Station, the primary focus of the Western Australian Government was to provide land for the Ngunjiwirri people on which to live, rather than as a business enterprise. Little attention was paid to the standard of infrastructure or the number and quality of the cattle that were included in the sale.

From the outset, the property was only in fair condition (at best). Approximately 1,000 head of poor quality, Shorthorn cattle were also included in the purchase.

The issues that impeded progress at Lamboo began during the period following purchase:

• There was a lack of a focus for the purchase, with little thought to the future in regards to employment or managing social issues. • The property struggled for a number of years with various managers, limited funds and few cattle sales.

By the early 2000s, the herd had dwindled to around 300 head due to poor management and a dearth of finance.

Over the past decade, the station’s herd has been rebuilt to reach approximately 1,200 head by the end of 2012 and station management has undertaken a range of infrastructure projects that has lifted the standard of the property’s infrastructure and enabled improved cattle management. Despite this, the NAC enterprise still operates below its full potential. The legacy of the initial purchase decision continues to affect the business.

NAC runs its 1,200 head on 20% of the available area, with the balance land leased out to other pastoral enterprises. A further 4,500 cattle are run on the balance of the property by the sub-lessees; albeit NAC earns annual lease payments from this business.

Unless funding sources can be accessed, continued growth to the NAC pastoral business will be limited to natural increase in the existing herd. While this can be successful, it will be a slow path to follow.

3 back to top CASESTUDY lamboo station kimberley, western australia

NAC’s Objectives in 2013 Today, NAC’s vision is clearly articulated:

‘to create a business enterprise that will demonstrate longevity, and is available to offer the Indigenous youth of Halls Creek and the NAC a working environment, with structured learning/mentoring and the option of local employment’.

The aim of NAC is to operate a viable pastoral business, commercially independent of welfare funding. Development and Changes to Herd and Grazing Management NAC has been successful in gaining over $300,000 in Indigenous Land Corporation (ILC) funding for two separate projects; to construct new fencing and stock waters and install a new set of cattle yards that incorporates latest technology.

Through the development of this infrastructure, better control has been exerted over the small herd which has allowed improved herd management techniques, such as more drafting, weaning and weighing of cattle.

The new system of paddock trap gates and laneways has also significantly reduced mustering costs and has enabled better management of grazing. Limited rotational grazing has been introduced using the system of trap gates to move cattle rather than mustering them. This new approach has also assisted in quietening the herd, as there is little or no use of helicopters. Business Planning and Management A detailed five year business plan is in place for the business, which is supported by an annual work plan and annual budget. Costs are managed closely. Other Sources of Income The major issue for Lamboo to overcome is the slow growth of the herd, due to the need to sell cattle to generate cash flow. The station’s herd, at 1,200 head, remains insufficient for a self sustaining pastoral property of this size.

Accordingly, NAC and management have secured alternative forms of income and funding to contribute to the continuation of the business. These include:

• Leasing two parcels of land, representing approximately 80% of the total landholding, to other graziers and grazing companies. This land is currently surplus to Lamboo’s herd requirements. • Levying an annual fee under an Indigenous Land Use Agreement to a mining company whose mine (under Care and Maintenance) is located on the station property. In regard to the sub-leased areas of the property, NAC and management intend to negotiate new arrangements with the sub-lessees requiring them (the sub-lessees) to develop parts of the leased areas. NAC plan to progressively take back land as the Lamboo herd increases.

In addition, the Property Manager earns off-property income through his role on the Kimberley Indigenous Management Support Service. Management has also accessed funding from a range of public sources. As well as the ILC Land Management Grants, Lamboo management has availed itself of

4 back to top CASESTUDY lamboo station kimberley, western australia assistance from FarmBis, WA Department of Agriculture and Food and the Community Development Employment Program (CDEP). Governance The NAC Board of Directors is responsible for the oversight of the business including strategy, compliance and risk management. The Board has appointed Robin Yeeda as Station Manager who is responsible for the day to day operations of the property and the business.

The membership of the NAC (which reflects the local clan groups) elects the directors for two year terms. Directors must be Traditional Owners of the land. Half the Board positions are re-elected in alternate years to provide some continuity to the Board’s experience. The Board is assisted by a Management Committee that includes several directors, the Station Manager and two advisors from the Kimberley Indigenous Management Support Service (KIMSS) now known as the Indigenous Landholder Services North (ILSN) who provide expertise in governance and pastoral management. Markets and Marketing Two years ago, the Station changed from marketing steers to marketing young bulls due to structural problems with the old yards which made it difficult to process bulls. Since then, Lamboo has developed good markets for bulls weighing 200-500 kg - both in the live export market and for slaughter in Perth.

An association with the local stock agent has helped provide good market information and reasonable marketing outcomes for the turnoff. Leadership Robin Yeeda, the Station Manager, is committed to ongoing training and development and has achieved a wide range of competencies required for a pastoral enterprise. In the ten years since he became Station Manager, Lamboo has made significant progress in infrastructure development and the establishment of a fledgling pastoral business. These achievements have largely been a result of Robin’s early vision, commitment and efforts, with the support of the Board of Directors.

Ten years’ continuity of service by the Station Manager has also been a big advantage to NAC and Lamboo. Robin continues to remain committed to the NAC vision and undertakes professional development which he can utilise to the benefit of the business and future employees.

5 back to top CASESTUDY lamboo station kimberley, western australia

Important Questions Highlighted by the Case Studies This case study, together with the Case Studies undertaken by the Study Team of Delta Downs and Warrigundu Stations highlights a series of important questions that Traditional Owners (TOs) or Aboriginal corporations need to answer when considering starting a pastoral business. The following list is not intended to be exhaustive but provides a snapshot of the key messages arising from the Case Studies:

• What is the purpose for beginning the pastoral enterprise? • Where can advice be sought to assist in the setting up of a commercial business? • Is the property or area suitable for raising cattle and is it large enough to carry enough cattle to produce the desired outcomes? • What infrastructure is in place and what is the condition of the improvements? • Is there access to sufficient funds to carry out a development program without incurring debt? • What cattle are available to begin operations? • Is there access to sufficient funds to purchase enough cattle to operate a commercial business without incurring debt? • Where are the nearest markets? • What is the incidence of drought?

6 back to top CASESTUDY lamboo station kimberley, western australia

Land and Property Information Lamboo Lamboo Station (‘Lamboo’ or ‘the Station’) is owned by Ngunjiwirri Aboriginal Corporation (NAC) on behalf of the Ngunjiwirri people. Location Lamboo Station is situated approximately 45 km south west of the township of Halls Creek, in the East Kimberley region of Western Australia (WA). The property covers an area of 361,391 hectares with approximately 70,000 hectares (20%) north of the Great Northern Highway and the balance on the southern side.

Figure CS3.1 Location of Lamboo Station in Relation to Halls Creek

7 back to top CASESTUDY lamboo station kimberley, western australia

Te n u r e Lamboo is located on a WA Pastoral Lease which expires at the end of June 2015. Pastoral leases in WA, whether for Indigenous or non-Indigenous owned land, have to meet certain requirements to enable them to be renewed. The offer of lease renewal in 2015 will be subject to the following conditions:

The annual lease rental for the lease up to 30 June 2015 will apply to the renewed lease. The rental review period for the renewed lease will continue to apply every five years in accordance with Section 123(4) of the Land Administration Act 1997 (WA). History The property was purchased in 1994 by the (then) Aboriginal and Torres Strait Islander Commission (ATSIC) through the WA Aboriginal Lands Trust (ALT). ATSIC/ALT handed the Station over to the local people in the same year. Ngunjiwirri elders at the time included Mr Charlie Yeeda, the father of the Station’spage current 9 Manager, Robin Yeeda.

At the time of the purchase, the primary focus of the WA Goernment was to proide land for the Ngunjiwirri people to live on and not as a business enterprise.

Little attention was paid to the standard of inastructure or the number and quality of the cattle that were included in the sale. [As a result, there were signicant issues that impeded progress of the pastoral enterprise. [ The property was only in fair condition, and a period of around 18 months was required to bring it up to a suitablepage standard. 9 (2) Approximately 1,000 head of poor quality, Shorthorn cattle were included in the purchase.

The issues thatSince impeded the early progress 2000s, the at fortunesLamboo of thebegan Station during have theturned period around following signicantly; purchase. and Due to the lack of a focus forwhile the purchase,the pastoral apart business from still adoes need not to operate provide at its a fullcommunity potential (due area, to there its small was little thought herd), the changes that have been achieved at the property have been quite dramatic. to the future, for employment or managing social issues. The property struggled for a number of years with various managers, e progress limited has largely funds been and a result few cattleof the eorts sales. of one individual and changes to the [ goernance of the enterprise [

page 10 page 13 page 15 8 back to top e major issue still to be overcome is the slow growth of Business Plans are prepared on Tight nancial control is the herd due to the need to sell a ve year rolling basis. exercised over expenses and the cattle to generate cash ow. property is debt ee

page 16 page 16 page 17

Have a large enough herd to Understand the programs that improe the quality of Inestigate alternative markets make the business ‘work’. the country through weed and feral animal control.

page 19

e Property Manager is committed to ongoing training and development and has achieved a wide range of competencies required for a pastoral enterprise. page 9

At the time of the purchase, the primary focus of the WA Goernment was to proide land for the Ngunjiwirri people to live on and not as a business enterprise.

Little attention was paid to the standard of inastructure or the number and quality of the cattle that were included in the sale.

As a result, there were signicant issues that impeded progress of the pastoral enterprise. CASE[STUDY lamboo station kimberley, western australia [

page 9 (2)

Since the early 2000s, the fortunes of the Station have turned around signicantly; and while the pastoral business still does not operate at its full potential (due to its small herd), the changes that have been achieved at the property have been quite dramatic.

e progress has largely been a result of the eorts of one individual and changes to the [ goernance of the enterprise [ By the early 2000s, the herd had dwindled to around 300 head through poor management and a dearth of finance.page 10 page 13 page 15 • In 2001, a young TO named Robin Yeeda realised if Lamboo was to develop it needed good e leadership. major issue still to be overcome is the slow growth of Business Plans are prepared on Tight nancial control is • He subsequentlythe herd due attended to the need Katherine to sell Rural College wherea he ve gained year rolling a Certificate basis. III in Beef exercised over expenses and the Cattle Production.cattle to generate cash ow. property is debt ee • He returned to the Station and took on the Manager’s role. page 16 • To overcomepage 16 the problems of lack of finance and low livestock numbers he has page 17 been instrumental in: • continuing studies to improve his skills and knowledge Have a large enough herd to Understand the programs that improe the quality of • finding Inestigatework off alternativeproperty marketsas an Indigenous Liaison Officer at ILSN make the business ‘work’. the country through weed and feral animal control. • encouraging the sub-leasing of approximately 80% of the property to local landholders including a major pastoral corporation • ensuring owners of a local ‘mothballed’ mine on the property paid a token payment for land use page 19 • sourcing Property Management funds from the Indigenous Land Corporation (ILC) to carry out infrastructure development and ensure that the property is developed efficiently and with sound improvements. e Property Manager is committed to ongoing Robin has taken advantage of ongoing professional developmenttraining to further and development his business and and has achieved a wide range of competencies required for a pastoral enterprise. management skills. He is a Director of NAC and a former Chairman of Directors.

In addition to Robin’s efforts, the term of Board members was changed from one year to two years to enable improved decision making through the experience gained in a Director’s first year of appointment. Half of the Board is elected each year to give continuity.

The area of Lamboo that is not sub-leased currently carries about 1,200 head of Brahman-cross cattle. A herd of this size does not provide employment opportunities for more than the occasional part-time employee.

9 back to top page 9

At the time of the purchase, the primary focus of the WA Goernment was to proide land for the Ngunjiwirri people to live on and not as a business enterprise.

page 9 (2)

e progress has largely been a result of the eorts of one individual and changes to the CASESTUDY lamboo station kimberley, western[ australia goernance of the enterprise [ This will continue until such time as a way is found to attract funds to purchase breeding cattle. This is difficult as funds cannot be borrowed against the land due to caveats on Indigenous land that prevent it from being used as collateral. page 10 page 13 page 15

The issue of pastoral lease renewal, due at the end of e major issue still to be June 2015, should be covered by the development work overcome is the slow growth of Business Plans are prepared on Tight nancial control is being completed and the standard of stewardship shown the herd due to the need to sell a ve year rolling basis. exercised over expenses and the property is debt ee by the Board and management. cattle to generate cash ow. Map page 16 page 16 page 17 The following map shows the area north of the Great Northern Highway that NAC uses for operating its cattle enterprise. This area represents approximately 20% of the property. All significant fences, yards, watercourses and named existing waters are displayed. Have a large enough herd to Understand the programs that improe the quality of Inestigate alternative markets make the business ‘work’. the country through weed and feral animal control. Figure CS3.2 Map of the Northern Section of Lamboo Station

page 19

e Property Manager is committed to ongoing training and development and has achieved a wide range of competencies required for a pastoral enterprise.

• Existing • Dusty laneway-light blue • Blue numbered paddocks marked in black top centre. markers new spears. • Laura paddock, • Emull laneway-pale • Holding paddocks light new fence-yellow. blue middle centre. green centre of map. • Mt Angelo • Midnight lane way-white. • New Yards paddock new fence-red. • Yellow numbered markers existing spears.

10 back to top CASESTUDY lamboo station kimberley, western australia

Climate In this part of the Kimberley Region, the wet season (spring/summer) lasts four to five months and the dry season (autumn/winter) lasts seven to eight months. The closest long-term weather stations are at Halls Creek ( Number 2012, 18.23° S, 127.66° E) and Ruby Plains Station, (Number 2026, 18.60° S, 127.64° E). An average of records for the two weather stations gives a reasonably accurate picture of climate in the Lamboo area.

Table CS3.1 Climate Average Annual Values

Mean max temp 33.6°C Mean min temp 20.0°C Average rainfall 507.5 mm

Land Types – Soils For geological purposes the region around Lamboo is classed as part of the Southern Kimberley Ranges Province. The area comprises:

• hills, ranges and plateaux, with some undulating plains and lowlands on granitic, volcanic and sedimentary rocks • stony soils with some red deep sands, red/brown non-cracking clays and yellow loamy earths.

Stony soils dominate most of the hilly terrain. Red/brown non-cracking clays are found on the basalt hills. Other soils include yellow loamy earths, red deep sands, yellow deep sands, red loamy earths, self-mulching cracking clays and red shallow loams. Land Types – Vegetation Vegetation is characterised by eucalypt woodlands with spinifex and mixed grasslands. Snappy gum over curly spinifex is the most common vegetation association. Bloodwoods are sometimes found in this association with areas of baobabs over spinifex also present. Elsewhere, snappy gums, and sometimes bloodwoods, are found over short grass or hard spinifex.

Tall grass savanna woodlands of bloodwoods, woollybutt and stringybark over curly spinifex and upland tall grasses such as native sorghum are found in upland areas. Woodlands of grey box and cabbage gum over white grass or ribbon grass are also found in these areas. Property Infrastructure On the northern side of the Great Northern Highway, where the Lamboo herd is run, there are nine paddocks, most of which have laneway access. There are also nine bores and three dams. The bores are operated by a combination of windmills and solar-driven submersible pumps.

On the same side of the road, Lamboo has built a new set of yards, funded with a grant from the ILC. The yards are modelled on a Temple Grandin design with modifications made by Robin Yeeda and Rod McColm, from KIMSS Kununurra. There are a further three sets of yards north of the highway, but these are in poor condition.

11 back to top CASESTUDY lamboo station kimberley, western australia

Lamboo has also constructed a series of trap gates to facilitate mustering and moving cattle between paddocks and into the laneways that access the new cattle yards.

South of the highway in the sub-leased country there are a further six paddocks, 17 bores and four dams. There is also another set of yards but they are in a poor condition. The bores, dams and fencing are maintained by the sub-lessees.

The station homestead area includes housing, office, single accommodation units, machinery sheds and generator shed.

Photo CS3.1 Constructing New Yards

Photo CS3.2 Constructing Trap Gates

12 back to top CASESTUDY lamboo station kimberley, western australia

Business Management Vision To create a business enterprise that will demonstrate longevity and is available to offer the Indigenous youth of Halls Creek and the NAC a working environment, with structured learning/mentoring and the option of local employment.

Mission page 9 The aim of the NAC is to operate a viable pastoral business, commercially independent of welfare funding. At the time of the purchase, the primary focus of the WA Goernment was to proide land Management for the Ngunjiwirri people to live on and not as a business enterprise. Lamboo Station is a pastoralLittle enterprise attention wasowned paid byto theNAC. standard The of inastructureNAC Board orof theDirectors number andis responsible quality of the cattle that were included in the sale. for the oversight of the business including strategy, compliance and risk management. The Board has appointed Robin Yeeda[ as AsProperty a result, thereManager were signicant and his duties issues that include: impeded progress of the pastoral enterprise. [ • day to day operations of the property

• development of managementpage 9 (2) and operational plans- both short and long term • management of the two sub-leasing agreements • management of staffSince the early 2000s, the fortunes of the Station have turned around signicantly; and while the pastoral business still does not operate at its full potential (due to its small • organising training forherd), staff the changesand directors, that have beenwith achievedthe assistance at the property of ILSN. have been quite dramatic.

Business Planning e progress has largely been a result of the eorts of one individual and changes to the goernance of the enterprise All business planning is carried out by the Board with the assistance of the Management Committee (refer to page Governance[, ‘14’ for details of this Committee). [ The 2005-2009 business plan supported an application for ILC funding of $160,000 for fencing and stock water construction.page 10 page 13 page 15

The current five year business e planmajor coversissue still the to beperiod 2010 to 2014. This plan was also usedovercome to support is the slow an growth application of for an Business Plans are prepared on Tight nancial control is ILC Land Management Grantthe herd of due$180,000 to the need for to the sell replacement a ve year rolling basis. exercised over expenses and the property is debt ee of an old set of cattle yards. cattleThe toconstruction generate cash ow.of the new yards:

• incorporates new technology in yard design and page 16 construction page 16 page 17 • enables more modern herd management techniques Have a large enough herd to • addresses issues of workplace health and safety. Understand the programs that improe the quality of Inestigate alternative markets make the business ‘work’. Both funding applications were successful and the work was completed onthe timecountry and through within weed budget. and feral animal control. Its record of performance meant Lamboo’s second application with ILC was a much simpler process to manage.

page 19

13 e Property Managerback to is topcommitted to ongoing training and development and has achieved a wide range of competencies required for a pastoral enterprise. CASESTUDY lamboo station kimberley, western australia

The business plan is a comprehensive document that covers all aspects of the business including:

• history of the business • business structure • key personnel • risk management • financial management (current and projected). Annual work plans are also drawn up and carried out in accordance with the business plan. A sample work plan is provided in Attachment 1. Governance NAC was incorporated in 1987. Lamboo was purchased in 1994 and NAC was to operate the lease. At that time, there was no board; however a committee was elected by NAC, whereby all members of the corporation were eligible to vote. A minimum of five people were required to form a quorum for election purposes.

The committee system has now been replaced with a Board of Directors, with an improved structure and election procedures.

Figure CS3.3 Lamboo Station Board Structure

Ngunjiwirri Aboriginal Corporation

Lamboo Station

MANAGEMENT BOARD COMMITTEE

Directors Chairman Station Manager Indigenous Landholder Director Director Services North Advisors Director Director

Director Director

The membership of NAC (which reflects the local clan groups) elects the directors. Director election is undertaken by corporation members rather than community members, as the community includes people who are not TOs and therefore are not eligible to vote. Not all TOs vote, as some are not interested or do not live near enough to the Station to participate.

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Directors do not receive any pay for their participation on the Board. They serve a two year term, with half the board up for election in any given year.

The Board is assisted by a Management Committee that includes several directors, the Station Manager and representatives from DAFWA Indigenous Land Services North.

Having the same Station Manager in place at Lamboo for over 10 years has been a big advantage to the business. Prior to 2001, there were four managers – three of which were Indigenous and one who was non-Indigenous, and was in the position for approximately one year. page 9 Financial Information

At the time of the purchase,From the primary1994 to focus 2002, of the the WA Station Goernment bookkeeping was to proide was conductedland by the now defunct Noonjuwa for the NgunjiwirriCorporation. people to live Reports on and notwere as completeda business enterprise. and the information forwarded to a Perth consultant who was responsible for the completion of end of year returns and Business Activity Statements, following the Little attention was paidintroduction to the standard of of the inastructure Goods and or theServices number Tax. and Followingquality of his appointment in 2001, Robin Yeeda had a the cattle that were included in the sale. period of some 18 months of training, after which he was responsible for the bookkeeping. As a result, there were signicant issues that impeded progress of the pastoral enterprise. [ Lamboo has relied heavily on the FarmBis program in its financial[ management activities. FarmBis was a program created and designed by the Australian government in conjunction with the respective State governments to provide financial assistance for education and training for farmers and land page 9 (2) managers. Until the middle of 2012, FarmBis provided Lamboo with a bookkeeper who visited once a year to provide training to the Manager and to prepare accounts and reports. This information Since the early 2000s, thewas fortunes then of forwarded the Station haveto an turned accountant around signicantly; in Perth who and prepared the end of year statutory accounts and while the pastoral businessreturns. still does This not operateaccountant at its fullwas potential also funded (due to byits smallFarmBis. herd), the changes that have been achieved at the property have been quite dramatic. The FarmBis program has now been discontinued; however it has been replaced with Farm Training e progress has largely been a result of the eorts of one individual and changes to the WAgoernance (FTWA), of a the project enterprise that is attached to the Indigenous Landholder Services (ILS) Program of the WA Department of Agriculture and Food (DAFWA). FTWA arranges training at the request [ of Aboriginal land owners and managers on agriculture and[ pastoral properties throughout WA, that are associated with the ILS local branches, in this case the Indigenous Landholder Services North. Lamboo intends to use this new service for its bookkeeping and accounting. page 10 page 13 page 15 The bookkeeper provided by FarmBis, also worked with the e major issue still toManager be to develop the annual budget. These annual budgets Tight nancial control is overcome is the slow growthare closely of adhered to as fundsBusiness are Plans normally are prepared low by on the end the herd due to the need to sell a ve year rolling basis. exercised over expenses and the of the year. Cost management measures are implemented to cattle to generate cash ow. property is debt ee ensure that the business can get through until the first sales of the coming year. This process will be continued under the page 16 page 16 new FTWA system. page 17 Income is generated through cattle sales, the two sub-leases and ‘mining royalties’. The mining royalties are Indigenous Land Use Agreement fees paid by a mining company for its mineHave on a large enough herd to Understand the programs that improe the quality of Inestigate alternative marketsthe Station land. make the business ‘work’. the country through weed and feral animal control. Previously, the mining royalties were paid as ‘dividends’ to the older TOs on the basis of an equal share for each. However the monies were being used by the younger members, so purchases of refrigerators and other white goods replaced the cash payments. However when these goods also started to change owners,page the 19 process ceased and the funds are now used in the station budget.

15 e Property Manager is committed to ongoing back to top training and development and has achieved a wide range of competencies required for a pastoral enterprise. CASESTUDY lamboo station kimberley, western australia

The mine has been in Care and Maintenance mode for eight years and royalties have been set at $10,000 per annum.

In regard to the leased areas of the property, NAC and management intend to negotiate new arrangements with the sub-lessees requiring them (the sub-lessees) to develop parts of the leased areas. NAC plan to take back land as the Lamboo herd increases.

Lamboo also accesses employees through the federally-funded Community Development Employment Program (CDEP). Station wages or contractors supplement these CDEP workers.

Lamboo has accounts with a commercial bank. NAC and the business carry no debt due to stringent control of income and expenditure by management.

16 back to top page 9

At the time of the purchase, the primary focus of the WA Goernment was to proide land for the Ngunjiwirri people to live on and not as a business enterprise.

page 9 (2)

Since the early 2000s, the fortunes of the Station have turned around signicantly; and page 9 while the pastoral business still does not operate at its full potential (due to its small herd), the changes that have been achieved at the property have been quite dramatic. CASESTUDY lamboo station kimberley, western australia At the time of the purchase, the primary focus of the WA Goernment was to eproide progress land has largely been a result of the eorts of one individual and changes to the for the Ngunjiwirri people to live on and not as a business enterprise. goernance of the enterprise Markets and Marketing Little attention was paid to the standard of inastructure or the number[ and quality of [ Two years ago, the Station changedthe cattle thatfrom were marketing included insteers the sale. to marketing young bulls due to structural problemsAs with a result, the there old wereyards signicant that made issues it that difficult impeded progressto mark of thebulls. pastoral Sincepage enterprise. 10then, Lamboo has developed page 13 page 15 good[ markets for bulls weighing 200-500 kg - both in the live export market and for slaughter[ in Perth. e major issue still to be The staff prepare the animals for sale, and the local Landmark agentovercome drafts is the themslow growth for particularof Business Plans are prepared on Tight nancial control is page 9 (2) markets. An association with the local stock agent has helped provide goodthe herd market due to theinformation need to sell and a ve year rolling basis. exercised over expenses and the reasonable outcomes. cattle to generate cash ow. property is debt ee Since the early 2000s, the fortunes of the Station have turned around signicantly; and • Cowswhile are the culled pastoral for business age and still sold does notat 10 operate years at and its full over. potential (due to its small page 16 page 17 • Mostherd), heifers the changes are kept that ashave replacements. been achieved at the property have been quite pagedramatic. 16

• Cull e bullsprogress are has sold largely at ninebeen ayears result and of the over. eorts of one individual and changes to the goernance of the enterprise Have a large enough herd to The biggest issue to affect the marketing of livestock was the Understand the programs that improe the quality of Inestigate alternative markets make the business ‘work’. suspension[ of the live export trade in 2011, and the subsequent [ the country through weed and feral animal control. drop in quotas and the cattle price. Grazingpage 10 Land Management page 13 page 15 page 19 NAC runs e cattle major on issue approximately still to be 20% (70,000 hectares) of the property, which is restricted to the overcome is the slow growth of Business Plans are prepared on Tight nancial control is northern end. Since 2006, this area has undergone development whereby new waters, fences and the herd due to the need to sell a ve year rolling basis. exercised over expenses and the yards werecattle constructed. to generate cashA system ow. of paddock trap gates and laneways has been installed to signifi- property is debt ee e Property Manager is committed to ongoing cantly reduce mustering costs. This has also allowed grazing to be better managed. Limited rotational training and development and has achieved a wide grazing has been introduced using the system of trap gates to move cattle rather than mustering them. range of competencies required for a pastoral enterprise. page 16 This workpage 16was completed with assistance of DAFWA. page 17 There are no major issues with overgrazing. Some erosion has been observed in Have a large enough herd to Understand the programs that improe the quality of associationInestigate with fences alternative and markets roads; make the business ‘work’. the country through weed and feral animal control. but it is not particularly significant and can be managed.

The only weed of significance is parkinsonia, which is found along sections of the Laura River. There are also some areas of calotrope (rubber bush)page infestation 19 which is not a particular problem yet, but will develop if not treated.

The balance of the country south of the highway (approximately e Property 290,000 Manager hectares) is committed is sub-leased. to ongoing This area currently carries approximately 4,500 head, attraining a rate andof approximately development and one has achievedhead per a wide65 hectares. This area is managed by the sub-lessees but rangesupervised of competencies by the requiredStation forManager. a pastoral enterprise.

DAFWA has an officer in Broome who provides assistance to producers on land management issues.

17 back to top page 9

At the time of the purchase, the primary focus of the WA Goernment was to proide land for the Ngunjiwirri people to live on and not as a business enterprise.

Little attention was paid to the standard of inastructure or the number and quality of the cattle that were included in the sale. [As a result, there were signicant issues that impeded progress of the pastoral enterprise. [ page 9 (2) CASESTUDY lamboo station kimberley, western australia Since the early 2000s, the fortunes of the Station have turned around signicantly; and while the pastoral business still does not operate at its full potential (due to its small herd), the changes that have been achievedHerd at the property Management have been quite dramatic. and Production

e progress has largely been a result of theHerd eorts of Sizeone individual and Composition and changes to the goernance of the enterprise From the initial purchase in 1994, the herd numbers slumped from around 1,000 head to around 300 [ head until 2002. Through the development[ of infrastructure such as waters, fencing and yards, better control has been exerted over the small herd which has allowed improved management techniques, such as more drafting, weaning and weighing of cattle. page 10 page 13 page 15 Lamboo currently carries approximately 1,200 head of cattle, made up of a mixed herd of breeders and e major issue still to be young dry cattle. As previously mentioned, Lamboo does not castrate young male animals but instead Tight nancial control is overcome is the slow growth of turns themBusiness off for Plans live areexport prepared as entire on males. the herd due to the need to sell a ve year rolling basis. exercised over expenses and the cattle to generate cash ow. property is debt ee Table CS3.2 Lamboo Station Herd Numbers, 1 January 2013

page 16 page 16 Livestock As at 2012 Sales page 17 Numbers 01/01/13

Cows 765 0 Have a large enough herd to Understand the programs that improe the quality of Inestigate alternative markets make the business ‘work’. Bulls the country39 through weed and feral animal0 control. Heifers 250 0 Bulls/Steers 150 200

Total page 19 1204 200

Herd Management Operations e Property Manager is committed to ongoing The developmenttraining andwork development has also andassisted has achieved in improving a wide the quality of the herd, through the ability to introducerange better of competencies quality bulls, required reduce for a pastoral the number enterprise. of mickey bulls (unmustered bulls) and allow the segregation of weaners. It has also assisted in quietening the herd, as there is little or no use of helicopters. Consequently the Lamboo herd is better managed.

The first round muster includes the following activities:

• cattle sales • weaning and separation of male and female weaners • weaners held in the yard for a few days and fed hay, if available • weaners walked to a paddock away from their mothers and provided supplement • bulls removed from the breeder herd (financial constraints do not allow a special muster to do this earlier) • cows 10 yrs+ culled and sold • bulls 9 yrs+ culled and sold • calves earmarked, branded and dehorned • vaccinations for botulism and bangtail of those vaccinated.

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The second round is a cleanup round where unvaccinated cattle are handled, and calves and weaners missed in the first round are processed.

New Brahman bulls were purchased from the Fitzroy River Bull sale in late 2012. The bulls were selected based upon conformation and temperament. Supplementation Program From June onward, the herd is monitored and supplementation is provided as required. The normal form of supplementation is urea blocks. These are easy to handle and freight well without separation. Supplementation continues until the first storms, which mark the start of the wet season.

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Husbandry, Health and Welfare

The management of Lamboo pay particular attention to animal husbandry, health and welfare. The improvement to infrastructure is designed to reduce stress on livestock, and the vaccination and supplementation programs address the issues of health and welfare. Vaccination Program Lamboo conducts an annual botulism vaccination program using Singvac botulism vaccine on weaners and those cows that have reached the three year booster stage. Welfare and Handling The improved infrastructure development has significantly assisted animal welfare through a quieter system of mustering, using traps and lanes, reducing the need for helicopter mustering.

The new cattle yards, in particular the water sprinklers for dust control, have also improved the handling of livestock, by reducing stress on both animal and stockman.

Staff training in low stress cattle handling has also improved animal welfare outcomes.

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At the time of the purchase, the primary focus of the WA Goernment was to proide land for the Ngunjiwirri people to live on and not as a business enterprise.

page 9 (2)

e progress has largely been a result of the eorts of one individual and changes to the [ goernance of the enterprise [

page 10 page 13 page 15

CASESTUDY lamboo station kimberley, western australia e major issue still to be overcome is the slow growth of Business Plans are prepared on Tight nancial control is the herdHuman due to the Resource need to sell Management a ve year rolling basis. exercised over expenses and the cattle to generate cash ow. property is debt ee The major source of professional assistance has come from DAFWA. ILSN is a part of the Indigenous Landholder Services program. It has provided support and training for Indigenous page 16 page 16pastoralists across the region since its inception in 2004. ILSN provides governance training to the page 17 various Indigenous boards, as well as other training and support.

Staff Have a large enough herd to Inestigate alternative markets Understand the programs that improe the quality of The Manager has held the position since 2002 and has been an NAC Director for 12 years. He also make the business ‘work’. the country through weed and feral animal control. held the position of NAC Chair for three years. Robin Yeeda has been committed to undertaking ongoing training and professional development and has achieved the following competencies:

• Certificate II in Welding and Property Maintenance • Certificate III in Beef Cattle Productionpage 19 • Certificate in Business Governance • Diploma in Agri-Business e Property Manager is committed to ongoing • Grazing for Profit training and development and has achieved a wide • MLA Nutritional EDGE Course range of competencies required for a pastoral enterprise. • KLR Marketing School.

Normally the station is run by the Manager with the assistance of one offsider who is a retired person who works for a small wage that supplements (within the guidelines) his pension.

Because of its small size, the enterprise is run on a very tight budget with permanent staff limited to the one older employee and casual stock staff as required for mustering or fencing. The CDEP program has been used in the past but is not being used at present due to the unreliability of the groups operating the scheme in Halls Creek. Staff Remuneration The Manager is employed on a rolling five year contract. He completes extensive training and also works as an advisor with the ILSN program.

Most workers are paid through the CDEP program, with station wages supplementation or use of contractors, when necessary. Staff Recruitment The majority of staff are recruited from within the local community. This group provides all the staff for the trainee programs, as well as experienced people as mentors for the young trainees.

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Staff Training As stated above, the Manager has completed extensive training and also works as an advisor with the ILSN program. As a local Indigenous man, he is backed up by staff who are all local people. There is a large group of eligible local people that are experienced in station duties, as well as a significant youth base who are interested in station employment.

All training is organised by ILSN, including governance training for existing and new directors. The Manager completes ongoing training and is currently undertaking an Aboriginal mentoring course.

Photo CS3.3 Governance Training

Burks Park Centre in Halls Creek assists Lamboo with training young people and provides courses in Certificate 2 and 3 in Beef Cattle Production. The training is usually organised by ILSN.

Photo CS3.4 Stockmanship Training

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Photo CS3.5 Burks Park Graduates

Occupational Health and Safety At the time of writing Lamboo did not have a Workplace Health and Safety program in place; however, it was to be investigated in the near future. Diversification

Lamboo Station and the NAC have entered into sub-leasing arrangements with two close neighbours, who sub-lease approximately 290,000 hectares of Lamboo Station located on the southern side of the Great Northern Highway. Both of these sub-leases have the approval of the Minister for the Department of Regional Development and Lands and the Pastoral Lands Board.

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Attachment 1: Example of Lamboo Station Workplan

Land Early burn for fire breaks

Contact live export cattle buyers, and other markets to determine price trends for coming year Stock Monitor herd, visual assessment of calving and herd health Muster and drench work horses First Vehicles serviced Quarter: Fences repaired following wet season flooding of creeks Maintenance Jan - March Yards repaired All tools and equipment serviced Directors Meetings Governance Governance training for directors and members Station plans and budget for coming year finalised Land Plan and prepare for mustering

Order mustering supplies hay, Avgas etc. Stock Start first round mustering Second Begin supplementation as required Quarter: Complete repairs to fencing and existing infrastructure Track clearing and grading April - June Maintenance Final check of waters and yards prior to muster

Vehicle maintenance and repairs Directors meetings – business correspondence Governance End of financial year statements, records and tax Land Monitor for overgrazing as the season dries off Third Stock Sale cattle sold Quarter: Maintenance Repair fences following first round muster July -Sept Directors meeting – business correspondence Pastoral lease fees and hire rates paid Governance LCDC, ZCA and PGA meetings

Workers given break to attend cultural and historic Kimberley festivals Land Monitor paddocks for over grazing, move any animals off areas demonstrating early stages of overgrazing Fourth Stock Supplementary feeding to minimise loss of older cows and weaners Quarter: Vehicle maintenance and repairs prior to 2nd round muster Water point maintenance becomes a prime concern as season dries out and heats up, placing Maintenance Oct -Dec stress on water points Yard maintenance checks prior to second round muster Station report prepare for members Governance AGM, reporting requirements – returns to ORIC Pastoral Lands Board stock return

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