Cutting northern livestock transport costs: CSIRO
05 March 2014
Joint release with:
WA Minister for Agriculture and Food; Fisheries
Willem Westra van Holthe
NT Minister for Primary Industry and Fisheries
Queensland Minister for Agriculture, Fisheries and Forestry
Australia's northern livestock industry can be beefed up by potential reductions in transport costs, according to new research from the CSIRO.
Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss launched the findings, including a suite of tools to analyse the costs and benefits of infrastructure investments in the northern livestock industry, at ABARES in Canberra today.
Mr Truss said the study highlighted some inexpensive opportunities that were good for a quick fix, as well as opportunities for longer term savings.
“While infrastructure investments will typically reduce producers’ costs, there has been no simple way to evaluate the whole supply chain to ensure investments maximise whole-of-industry productivity,” Mr Truss said.
“This study, which was jointly funded by the Australian, Queensland, Western Australian and Northern Territory governments, and developed by CSIRO, addresses this critical information gap.
“Even a minor change like co-locating spelling yards with roadhouses so cattle and drivers can rest at the same time, are relatively simple but can significantly reduce travel times and overall costs.
“In one investment scenario, the cost of transporting livestock across northern Australia for processing was reduced by more than $15 million a year.
“It found that upgrading 500 kilometres of the Carnarvon/Gregory highway between Clermont and Roma to allow large road trains to use this inland route, and removing tick clearing restrictions, could have saved the industry almost $80 million over five years.”
Queensland Minister for Agriculture, Fisheries and Forestry John McVeigh said the project comprised the most comprehensive mapping and analysis of northern transport routes and beef industry infrastructure ever undertaken, capturing data from over 50,000 properties and 1.5 million vehicle movements.
“Transport costs make up a large proportion of the market price for beef, with Northern Territory cattle often travelling 1,000 kilometres or more to an abattoir or port in Queensland,” Mr McVeigh said.
“This is important work and gives producers and governments the tools to evaluate the transport system and identify beneficial infrastructure investments, while planning for the future.
“The project tools can be used to assess a wide range of options, from small changes in the system through to major investments in new transport and processing infrastructure.”
WA Minister for Agriculture and Food; Fisheries Ken Baston said he was pleased the WA government had co-funded the project and noted that the work could support a planned Western Australian review of priority infrastructure for the northern beef industry.
“The implementation of land transport standards for livestock and our desire to boost our pastoral beef businesses underpin the need for infrastructure to keep pace,” Mr Baston said.
“Western Australia is positioning itself to meet the rising demand for beef from our Asian neighbours, and transport logistics are an integral part of a modern and efficient beef industry.
“The CSIRO tools will also assist any review and planning by providing scenario testing that takes into account actual cattle flows to various markets and ports and, I look forward to their use.”
Northern Territory Minister for Primary Industry and Fisheries Willem Westra van Holthe said the new tools could be used to show the value of major new infrastructure investments.
“A new abattoir in Darwin could reduce transport costs across Northern Territory producers by as much as $13.2 million a year,” Mr Westra van Holthe said.
The report Livestock Industry Logistics: Optimising Industry Capital Investment and Operations and the suite of tools are available online at: www.regional.gov.au/regional/ona/nabis.aspx and www.csiro.au/livestocklogistics