July 2014 Wimmera Southern Mallee Intensive Livestock Mapping CONTENTS EXECUTIVE SUMMARY ................................................................................................ Page 3 1. INTRODUCTION ............................................................................................................. Page 6 1.1 Background ........................................................................................................... Page 6 1.2 Overview of the Wimmera Southern Mallee ................................................... Page 6 1.3 Scope ..................................................................................................................... Page 6 2. PIG PRODUCTION ......................................................................................................... Page 8 2.1 Pig Industry Profile .............................................................................................. Page 8 2.2 Pig Production in the Wimmera Southern Mallee ........................................ Page 10 2.3 Pig Industry Supply Chain Mapping .............................................................. Page 11 2.4 Outlook and Opportunities .............................................................................. Page 17 3. POULTRY PRODUCTION ........................................................................................... Page 19 3.1 Duck Industry .................................................................................................... Page 19 3.2 Table Egg Industry ............................................................................................ Page 20 3.3 Turkey Industry ................................................................................................. Page 23 3.4 Broiler Industry .................................................................................................. Page 24 3.5 Poultry Production in the Wimmera Southern Mallee ................................. Page 25 3.6 Poultry Industry Supply Chains ...................................................................... Page 27 3.7 Outlook and Opportunities .............................................................................. Page 32 4. LOT-FED LAMB AND OTHER INTENSIVE LIVESTOCK PRODUCTION ..... Page 35 4.1 Industry Profiles ................................................................................................. Page 35 4.2 Lot Fed Lamb Production in the Wimmera Southern Mallee ...................... Page 37 4.3 Lot Fed Lamb Supply Chain Mapping ........................................................... Page 39 4.4 Other Intensive Livestock ................................................................................. Page 43 4.5 Outlook and Opportunities .............................................................................. Page 44 5. CHARACTERISTICS AND PERCEPTIONS: WSM PRODUCERS ...................... Page 47 5.1 Linkages and Staffing ........................................................................................ Page 47 5.2 Locational Strengths, Weaknesses and Opportunities ................................. Page 49 14/06/14/VR745/WS/V5 ACN 002 332 176 Page 2 Wimmera Southern Mallee Intensive Livestock Mapping EXECUTIVE SUMMARY E1 Overview This document reports on the current status of intensive livestock production in Victoria’s Wimmera Southern Mallee region, encompassing the local government areas: Horsham Rural City Northern Grampians Shire Buloke Shire Hindmarsh Shire Yarriambiack Shire West Wimmera Shire. To take advantage of improved water security from the Wimmera Mallee Pipeline and reported growth in livestock industries, Wimmera Development Association is working to understand the current level of activity, and potential opportunities for further investment, in intensive livestock production. Farming practices in the Wimmera Southern Mallee are dominated by broadacre, dryland cropping systems based on wheat rotated with other cereals, oilseeds (such as canola) and grain legumes (such as faba beans and chick peas). Farm sizes vary, with the majority in the range 600 to 800 hectares, and some larger than 5,000 hectares. The major service centre within the region is Horsham. Major regional centres within 3 hours by road transport include Bendigo, Ballarat, and Geelong, as well as the State capital of Melbourne. E2 Summary of Current Intensive Animal Production Table E1 shows that there are currently 87 enterprises involved in intensive animal production in the Wimmera Southern Mallee, with an estimated total production value of $152.5 million per annum. There are a further 18 businesses with unutilised intensive animal production facilities, and at least 20 sheep and lamb producers interested in more structured lot feeding, under the right circumstances. Table E1 Summary of Intensive Animal Industries in the Wimmera Southern Mallee Intensive Animal Sector Number of Annual Production Annual Businesses Volume Production Value Pig Production 29 17,900 tonnes $49.5 million Poultry Production 43 14,370 tonnes (meat) $75.2 million 2.98 million dozen (eggs) Lamb Lot Feeding 13 842 tonnes $4.7 million Other Intensive Animal 2 3.2 million litres milk Enterprises 55,000 head cattle $23.1 million Interest in Lot Feeding 20 Growers/businesses with 18 unused facilities Total 125 $152.5 million 14/06/14/VR745/WS/V5 ACN 002 332 176 Page 3 Wimmera Southern Mallee Intensive Livestock Mapping E3 Opportunities for Further Intensive Animal Development A range of opportunities for further development of intensive livestock has been identified in the mapping project, and are presented in the body of this document. In summary, they incorporate: Product differentiation through free-range (and to a lesser extent, organic) production systems. Growth in free range production for table eggs and chicken meat is a particularly strong and current opportunity to enable Wimmera Southern Mallee growers to diversify their cropping enterprises by adding a contracted breeding or grow-out production activity. Stockfeed manufacturing and formulation, both pelletised and mashed, to suit emerging production requirements (utilising local grains, free from added growth hormones and free from antibiotics). Technical, veterinary advice and shedding and systems supply. Attracting and maintaining an effective labour force for the Luv-a-Duck supply chain to it to continue to grow in the Wimmera Southern Mallee. Intensive livestock industry collaboration in research, advisory services, value added product development, waste and by-product management, and production systems, labour force development, efficiencies in inputs (such as stock feed and litter) and logistics services. Establishment of at least one integrated growing-processing-marketing supply chain for turkey and game meat products, particularly as a diversification option for broadacre growers. The food service sector is not being adequately supplied with Victorian regional product in these areas. Bio-mass processing to produce thermal or other forms of renewable energy, and fertilisers, is an emerging opportunity that could best be developed through joint action among members of the intensive animal industries across the Wimmera Southern Mallee and Northern Victoria. Shared approaches to water savings and usage, renewable energies and other production efficiencies should be addressed on a regional basis (Wimmera Southern Mallee an Northern Victoria), in partnership with research and tertiary institutions. Lot feeding of lambs, as it is currently practiced in Victoria, and the Wimmera Southern Mallee in particular, is relatively unstructured, informal and irregular compared with other intensive livestock sectors. At present, most growers in the region do not practice either lot feeding or containment to finish lambs, and those who do mostly implement simple containment strategies in smaller paddocks or yards. Only 2-3 businesses operate lot feeding as an enterprise in its own right, with an investment in carefully designed pens, laneways, feeder and watering systems. The most likely mechanisms for addressing this opportunity are through collaborative structures; either groups of growers, supply chain partnerships, or joint ventures (possibly involving foreign investors and companies). Genetic improvement or, at least, breeding for selected traits is likely to become a more important strategy in lamb production in the future, enabling Australian lamb to be differentiated. Wimmera Southern Mallee growers are well placed to have a leading role in this paddock to plate differentiation. The main opportunity in lot feeding for Wimmera Southern Mallee producers, is one or more enterprise which adds another link in the lamb supply chain with the involvement of professional lot 14/06/14/VR745/WS/V5 ACN 002 332 176 Page 4 Wimmera Southern Mallee Intensive Livestock Mapping feeders who aggregate and finish stock (as their core business) and who have close relationships with processors, live-exporters, and retail and food service markets. The best business structure for serious lamb lot feeding endeavours are expected to be in community based/collaborative lamb feed lots, and/or joint ventures with foreign investors, where growers contribute product (lambs from about 30 kilograms weight for finishing) and have equity or membership in a collaborative business, with both horizontal and vertical supply chain links. Photo E1 Piggery Sheds and Infrastructure Photo E2 Turkey Shed in Conversion for Broiler