Almonds become Oz's most valuable agri-export after California drought

Demand for the nuts is being fuelled by India, Europe and the Middle East, which have been buying them at premium prices, spurred on by uncertainty surrounding this year’s almond crop from America.

Australia contributes about 7% of the world’s almond supply, with almost a quarter coming from the state of South Australia. The majority of the global supply—about 85%—comes from California.

However, extended drought conditions in the American west-coast state have led overseas markets to focus on the Australian almond crop—which has now sold out.

The unprecedented international interest has set records for the Australian almond industry, including its first-ever monthly export of over A$100m, which was recorded in July.

The rush for the almonds has catapulted the industry into the spotlight with many overseas countries needing alternative supplies to offset the uncertainty around yields in California.

Recently signed free-trade agreements with South Korean, Japan and China have also contributed to the increased demand, making the almond Australia’s most valuable agricultural export.

Almondco processes around 85% of the annual almond crop grown in Australia.

“Almonds are a very quality sensitive market​,’’ AlmondCo sales and marketing manager Tim Jackson said.

“Our success is based on supply of premium quality product around the world to like-minded customers​."

He said there has been a strong demand for almonds around the world and Australia’s profile as a nation that can produce clean, green, high quality product is growing quickly.

“International markets are now recognising that we are a reliable source of both quality and quantity​,’’ Jackson said. “Our total yields have grown from 16,000 tonnes in 2006 to nearly 80,000 tonnes​.

“This means customers can source large volumes of almonds from Australia. We have now overtaken Spain as the second biggest almond producer in the world​.’’

Research identifies annual winter drop in Australian beer consumption​

Australian brewers go through a winter beer-drinking lull, which takes place each year between July and September, Roy Morgan Research has found.

Its latest study has found that this pattern has occurred for the last decade, at least. While it is not especially surprising, given that beer in Australia is generally marketed and consumed as a warm-weather beverage, the regularity with which Australian drinking habits ebb and flow is striking. 

The July-September quarter has seen a plunge in the proportion of Australian adults drinking beer—while, conversely, the warmer January-March quarter invariably sees a spike. 

Over the past 10 years, the average proportion of Australians drinking beer during the July-September quarter is 37.6%, compared with a long-term average of 43% for the January-March quarter. 

Incidence of red wine consumption also shows some noticeable peaks during the July-September quarter over the last decade,with a long-term July-September average of 33.1%; so too does fortified wine, although not as markedly. 

As well as showing the regular seasonal changes in consumption of these beverages, the chart also shows an incremental but distinct decline in the proportion of Australian adults drinking them at all. 

Even the peaks soften as the years roll on, a trend consistent with the broader overall decline in liquor consumption, whereby the total proportion of Australians who drink any kind of alcohol regularly has fallen from 72% as of June 2006 to 68% as of June 2015. 

“Unlike beer drinkers in the northern hemisphere, Australians do not tend to see beer as a winter beverage​,” said Roy Morgan’s Andrew Price. 

“So it’s no surprise that the proportion of us drinking it during the cool July-September quarter falls, only to peak again in the warm January-March quarter every year​.

“Of course, this doesn’t mean that so-called ‘winter beers’ aren’t available here, but it does suggest that marketeers wishing to overcome our resistance to (or at least, inability to process) the concept have their work cut out for them​.

“Along with the corresponding increases in the proportion of us drinking red and fortified wines during the July-September quarter, our findings also reveal that Aussie adults are also much more inclined to drink hot chocolate at this time of year than any other quarter. One has to wonder, therefore, why no liquor brands have yet introduced a pre-prepared alcoholic hot chocolate into the market​.”

Solar power for irrigation could speed up time taken for investment return​

A large-scale farming irrigation system that uses renewable energy is providing significant fuel savings over traditional diesel or grid-powered pumps.

South Australian fabrication and engineering company Reaqua recently installed over 400 solar panels, pump controllers and new submersible pumps on a cattle farm in Western Australia to pump water from a bore through a central pivot irrigation system.

With an installation cost of around A$300,000 (US$214,000) the savings on fuel are expected to return the investment in under five years.

Andrew Cromarty, Reaqua’s owner, said the set-up was the first of its kind in Australia with a central pivot system.

“I think this new technology is really challenging many farmers​,’’ he said.

“There is a significant initial outlay involved which can give many farmers pause. It can also challenge farmers to reassess their current and often traditional practices​.

“Our basic premise is to provide energy-free, consistent water supply 365 days of the year, this gives the farmer new options to consider in regards to irrigation practices​.’

“Being a solar-powered solution, this system is restricted at night, though farmers can still use power from the electricity or diesel at night, if they choose, as the system can cope with power from multiple sources​.

“It can require a change in their traditional behaviour to gain the biggest benefits from the system​.’’

The return on investment is about four to five years. After that, all the money the farmer saves on diesel costs and maintenance of the engines or electricity costs, goes straight in to their pockets.​

“To my knowledge this is the first time in Australia where renewable energy is being used to pump water from a bore through to a central pivot irrigator on a broad acre farm​,” Cromarty added.

Connell Brothers wins contract to distribute Graminex Down Under​

Connell Brothers, the biggest specialty chemicals and ingredients marketer and distributor in Asia-Pacific, has been appointed to manage the sale and distribution of Graminex's products in Australia and New Zealand, including finished goods and ingredients, such as flower pollen extract, saw palmetto and cranberry.

US-based Graminex is the exclusive grower and manufacturer of solvent-free rye grass flower pollen extract for dietary supplements. Connell Brothers Australasia will represent the company’s flower pollen extract active ingredients, as well as its dietary supplements, primarily focusing on the areas of prostate, immunological and women's health support.

"We are pleased with our success promoting Graminex's products in Taiwan, and look forward to maximising similar marketing and distribution opportunities Australasia​," said Alex Grantz of Connell Brothers. 

Victoria plant will allow Fonterra to supply milk to Woolworths for next decade​

Fonterra begins operations this month at a new beverages plant in Victoria, which will supply Woolworths Select own brand milk in the state for the next 10 years. 

Last year, the Kiwi co-operative embarked on a multi-million dollar expansion of its Cobden site in western Victoria to build a fresh milk plant there.

Now complete, Fonterra Australia’s managing director, Judith Swales, said the plant was the beginning of a new era of making fresh milk at the site.

“Today is an important milestone for our Australian business and a key pillar of our strategy. The expansion of our Cobden plant will generate over 50 new jobs and have positive flow on effects to the local community and our farmers​. 

“The plant will process up to 100m litres of milk each year to provide Woolworths with fresh milk for its Select own-brand milk. The long-term agreement with the supermarket provides certainty for our farmers that they will have a home for their milk​.”