Dairy Faces New Water Reality
Published on by Water Network Research, Official research team of The Water Network in Business
The dairy industry is going to have to face the reality that the cost of water is going to increase whether it likes it or not, the Australian Dairy Conference at Shepparton in February was told
The industry will face increasing competition for other uses of water, including environmental, cultural and recreational, as well as in other industries, such as horticulture.
The conference was also told that the Australian Dairy Industry Council had reconvened its Basin Plan Taskforce to look at key issues arising from the Murray Darling Basin Plan as deadlines for water recovery identified in the plan occur later this year.
A group of disgruntled northern Victorian dairyfarmers, protesting outside the conference, urged farmers to write letters to the Prime Minister, Malcolm Turnbull, outlining the impact of the Murray Darling Basin Plan on their farms, their families and their communities.
Water is a hot issue in the northern Victorian and southern NSW irrigation districts, with low allocations and a dry season seeing temporary water prices rise to more than $200 a megalitre this year.
Managing director of investment firm Kidder Williams, David Williams, told the conference dairyfarmers needed to be aware there was a lot of demand for water.
Horticultural and broadacre cropping industries could make a lot more gross profit per hectare from irrigation than dairy.
Walnuts could return as much as $2170/Ml, cotton $200/Ml, soybeans $90/Ml and rice $109/Ml.
"As a dairyfarmer, you can't outbid someone in the horticulture industry," he said.
His assessment was backed by two horticulturists on a panel later in the session.
Almond grower, Select Harvest managing director Paul Thompson said the almond industry was planning massive growth and invested in water ahead of plantings, while Tatura, Vic, orchardist Paul Hall brought a reality check to those who thought $250/Ml for water was expensive when he said they could afford to pay $1100/Ml for water.
Source: Farm Online
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