CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

M e m b e r - National Farmers’ Federation & Cattle Council of Australia

Executive Summary

The Covid-19 pandemic has created substantial economic hardship and opportunity for the Northern Territory. The pastoral sector has been largely insulated from the impacts of Covid-19 because of the way the industry is structured.

It has, despite increasing regulatory and administrative costs, managed to keep its input costs to a minimum. Low input costs proved the foundation of the resilience which kept the 10,000 people directly and indirectly employed during what is the industry’s peak time.

While there are many opportunities and requirements which can assist the Territory rebuild itself, this submission focuses on two immediate opportunities. We have included the NTCA’s overall election policy platform, which may seem outside this scope, but feed into broader debates around accelerated approvals and cumbersome regulation.

We also attach some statistical data which reinforces the benefit of the Roads of Strategic Stimulus Importance we wish to see.

The Roads of Strategic Stimulus Importance is not just for the benefit of the cattle industry but also the resources (mining and onshore gas) and the tourism sector. These are wealth generating infrastructure suggestions designed to ensure that the productivity of the Territory economy can be dramatically improved.

We are seeking a $535 million injection of funds into key roads over a five-year period. This will create 3,000 jobs and unlock the true productivity potential of regional and remote Northern Territory. We are asking for $5 million of those funds to be for a Design and Planning Fund. This is fundamental to ensuring there are “shovel-ready road projects”.

The cattle industry in the Northern Territory was responsible for much of the early development, especially as it related to roads. We need to return to that level of basic principle so that other industries can benefit as well.

The other major suggestion is a “job creating joint industry/government Weed Eradication Program” using paid volunteers. We believe this could, over a five-year period, generate nearly 500 jobs and attack the more than 40 weed species which affect the economic productivity of the Territory. This costing is based off the pastoral estate alone but could be replicated on Aboriginal Land Trust Land.

Such a program creates both short term and long-term benefits from quick job creation to improved environmental land management to opportunities for greater agricultural productivity.

In any event both these programs need to be adopted and championed as a priority if the Territory is to start the climb back to a positive economic position.

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

1 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

Overview

The Northern Territory Cattlemen’s Association (NTCA) is the peak body for the NT cattle industry, providing leadership at the Territory, national and international level on industry, trade, resource management, and economic and social policy.

Representing over 90 per cent of the Territory industry, the NTCA maintains a unique position as Australia’s most representative producer body and single conduit for engagement.

The NTCA has been a leader in driving positive change while also defending the position and integrity of the cattle sector, its producers and connected supply chains operating into domes-tic and international markets.

As the predominant primary industry sector, the cattle industry underpins the economic, social and environmental foundations of the NT and Northern Australia. The NTCA has taken a pro-active approach on environmental policy around renewable energy, sustainable development and social responsibility connected to the reengagement of Indigenous land and people in the modern beef industry.

The NTCA provides policy leadership across the primary industry sector including pastoral land conservation, market development and trade, regional development, Indigenous employment and international engagement. In representing the interests of members, the NTCA is critically interested in the policy position of the government, opposition, and independents on a range of important issues.

NTCA’s membership ranges from small family and indigenous operations, to large corporate organisations.

The NTCA exists to advance and protect the interests of Northern Territory cattle producers.

Our Northern Territory members are environ-mental stewards responsible for a landmass more than 700,000 square kilometres (49% of the NT landmass), producing 600,000 high quality cattle per year. The pastoral industry is the Northern Territory’s third largest GDP earner, equating to more than 80% of primary production in the NT. We are responsible for 40 per cent of Australia’s live export.

With an investment of $4.5 billion in the NT, our industry generates over $750 million (ABARES) directly and more than $1.2 billion indirectly into the Northern Territory’s economy. The industry directly and indirectly provides 10,000 jobs and has contributed to the growth of the Territory for over 150 years. It continues to increase in size, productivity, and efficiency.

NT producers supply cattle to all mainland states and produce quality animals suited for the live export trade to South East Asia, including, on average up to 400,000 head exported to Indonesia and Vietnam annually. More than 26 million Indonesians consume Northern Territory beef on an annual basis.

The future of the Northern Territory, Northern Australia and indeed Australia, is interwoven with the success and future viability of the Northern beef cattle industry. Long-term development of Northern Australia is reliant on investment across areas such as infrastructure, health, education, telecommunications, research, and development.

While Northern Australia holds great potential, ultimately there is a need for greater coordination of government policy in areas of social policy, environment, animal welfare, production, infrastructure and regional development in

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

2 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

order to provide the foundation for the overall advancement, economic growth and prosperity of the land and people of the North.

There is an increasing global demand for food and a rapid increase in demand for protein and high value food products from countries in our immediate region, including China, Indonesia, and Vietnam.

The increasing demand is placing pressure on domestic availability and prices for beef and specialty food products while also creating unprecedented demand by foreign and local investors in food production and related supply chains.

While the levels of investment into Northern Australia and the NT for quality farming and production assets will continue to increase, we are also working in an increasingly complex and competitive environment. This requires good government and industry policy and the adoption of leading technology, innovation, and efficiency to grow our competitive advantage on a sustainable social, environmental and economic base.

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

3 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

Roads of Strategic Stimulus Importance The beef industry is a key pillar of the economy of northern Australia and underpins the economies of almost every regional community in the Northern Territory, contributing close to $500M1 directly to the economy. Vast cattle stations in the Northern Territory use six-deck road trains to transport stock to all parts of Australia for domestic or export market, spanning journey distances of thousands of kilometres.

Road and transport infrastructure is critical to not only the present viability of the pastoral industry, but is a major factor in the nation’s ability to maximise industry potential identified in the NT and spoken about in discussions about the “Development of Northern Australia”.

Historically it has been the pastoral sector which has driven development in the Territory and for other industries including the resources and tourism sectors. It is these industries which again benefit from any concerted push to target roads of strategic stimulus importance.

The Northern Territory Cattlemen’s Association (NTCA) is committed to assisting the Federal Australian Government in unlocking the potential of Northern Australia through strategic, nation-building investment in critical road infrastructure through Northern Australia.

We believe a $535 million accelerated roads package delivered over a five-year program and which incorporates a $5 million Planning and Design Fund will unlock large amounts of industry and drive productivity and trade for decades. This is in addition to roads which already have funding commitments and are coming to an end.

The Northern Territory road network covers some 22,000km. Of this total distance, approximately 70% (15,000km) is unsealed.

This poses significant challenges to industry due to the increased costs of transport. The Northern Territory Road Transport Association (NTRTA) has calculated the cost of transport for heavy vehicles on unsealed roads in NT as 30% higher than those of sealed roads, with many transport operators charging a fee of $0.10/deck/km or $0.60/road train/kilometre for working on dirt roads on top of their standard cartage rates.

Transport costs are among the biggest expense to the pastoral industry; up to 35% of the sale price of an animal2 in the NT given the average distance to port or slaughter for NT stations is 835km, so the additional costs to pastoralists are significant.

The cost calculations are linked directly to the pastoral sector, however, the productivity gains through strategic roads investments will flow on to all industries – especially the resources sector – which will benefit from all- weather, all year access.

The following roads already have an allocation of funding to them. This funding should be accelerated from its current schedule: • $225M - Upgrade • $125M - Upgrade • $67.15M - - (Outback Way funding); and the • $200M - Alice Springs to Halls Creek Corridor ().

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

4 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

To accelerate identified strategic road construction a Planning and Design Fund of $5 million should be made available to get the following projects to a shovel-ready stage and minimise any delays in the construction timetable.

Following is a list of suggested Roads of Strategic Investment Importance which will add substantial productivity value to the pastoral, resources, and tourism sector.

• Marindja Road – seal selected sections Key supply road for Livingstone Beef processing facility and live export depots in Darwin. Up to 75,000 head of cattle or stock with a value of $75m is transported along this route. The road is not all weather and therefore can spend large amounts of the yar unpassable. It is less than 130km from Darwin.

Marindja Road – seal selected sections Cost $60m Timeframe 5-year program Jobs created 330 (5.5 jobs per $1m)

• – seal selected sections Requires upgrade and seal to entire length. Critical 12-month access to Qld and Central Australia, for pastoral, tourism, mining and community. Region is experiencing growth beyond the capacity of the road. Seasonal rainfall and poor maintenance render large sections inaccessible for long periods. Costs of freight or preparedness of contractors to use the road costing business and having untold social costs.

Sandover Highway – seal selected sections Cost $80m Timeframe 5-year program Jobs created 440 (5.5 jobs per $1m)

• – Strengthening and Widening This road is part of the 24 per cent of sealed roads and requires major upgrade and reseal along its entire length. Currently deteriorating rapidly. Roughly 100,000 head of cattle traverse this road to Queensland primarily for either the domestic market or the live export market via the Port of Townsville. It is anticipated that stretches of 15-20km could be completed on annual basis as part of any works program.

Tablelands Highway – Strengthening and Widening Cost $80m Timeframe 5-year program Jobs created 440 (5.5 jobs per $1m)

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

5 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

• – Strengthening and Widening Upgrade to crossings, and bridges, seal widening, shoulder and seal maintenance required. Critical pastoral, mining, tourism and community road. Increasing pressure with further development of the region and expansion of pastoral, communities and mining. This has become increasingly problematic with live export peak supply moving towards the wet season. The advent of an onshore gas industry will also place increased pressure in the area.

Carpentaria Highway – Strengthening and Widening Cost $140m Timeframe 5-year program Jobs created 770 (5.5 jobs per $1m)

• Buchanan Highway – Selected upgrades Seal and upgrade to crossings and bridges. Major supply and link road through to the VRD from the Stuart Hwy for pastoral, mining and community. This has become increasingly problematic with live export peak supply moving towards the wet season. Road trains in the area can travel as long as 20km/h due to road conditions.

Buchanan Highway – Selected upgrades Cost $70m Timeframe 5-year program Jobs created 385 (5.5 jobs per $1m)

• – Seal selected sections Part seal and upgrade. Major route for pastoral, mining and community. Coming under increasing pressure with further development of the region and expansion of communities and mining.

Roper Highway – Seal selected sections Cost $100m Timeframe 5-year program Jobs created 550 (5.5 jobs per $1m)

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

6 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

Summary Table

Road Project Cost Jobs

Marindja Road $60m 330 Sandover Highway $80m 440 Tablelands Highway $80m 440 Carpentaria Highway $140m 770 Buchanan Highway $70m 385 Roper Highway $100m 550

Program Total $530m 2915

Planning & Design Fund $5m

Total $535m 2915

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

7 NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION INC . Advancing and protecting the interests of cattle producers in the Northern Territory

Weed Eradication Program The Northern Territory is home to more than 40 different weed species. These weeds represent a variety of threats to the productivity and environment of the Territory. Weeds management in the Northern Territory costs land managers millions of dollars through control costs and lost productivity.

One of the greatest problems here in the Territory is being able to balance the labour skill availability with the ongoing operational requirements of a cattle station.

The Northern Territory Cattlemen’s Association believes there is economic scope for a concerted push for a Weed Eradication Program which runs in conjunction with the Agricultural sector that not only brings economic and environmental productivity benefits but also creates employment to overcome the substantial job losses which have occurred during the Covid-19 pandemic.

The benefit of such a program is that it can be started almost immediately, and it can be created from a relatively low-cost base. It can also be a rolling employment program with new participants entering through a 12-month period. In a secondary environment it can provide a good entry level into remote and regional work.

The Weed Eradication Program would be administered by the Northern Territory Cattlemen’s Association with the jobs created broken down into regional areas. This program is only designed for the pastoral estate but can be doubled to include the Aboriginal Land Trust Areas.

Year Project Cost Jobs created Industry contribution Comments

Year One $5 million *140-160 Chemicals/Accommodation Jobs created is (with keep)/Logistics subject to payment rates under the $5 million Pastoral Award Rate. Year Two $5 million 140-160 Chemicals/Accommodation Jobs created is (with keep)/Logistics subject to payment rates under the $5 million Pastoral Award Rate. Year Three $5 million 140-160 Chemicals/Accommodation Jobs created is (with keep)/Logistics subject to payment rates under the $5 million Pastoral Award Rate. Total $15 million 420-480 $15 million

Suite 9, 1st Floor, Raffles Plaza,1 Buffalo Court, Darwin NT 0800 | GPO Box 4845, Darwin NT 0801

T: (08) 8981 5976 | F: (08) 8981 9527 | E: [email protected] | W: www.ntca.org.au

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