National insights on food and agriculture - Food and Drugs Law

National/Victoria Do you really know where your food comes from?

In the search for value for consumers – retailers, importers and manufacturers have established complex supply chains to source food globally. This can increase the risk of food safety failures such as the issue in February this year that saw Nanna's berries linked to Hepatitis A infections. The risks associated with food safety compromises are significant, and can only be effectively managed through significant investment by food importers.

National/Victoria

The risk of food safety failures for food importers and manufacturers.

Imported frozen berries are presently sourced from China, South America, Eastern Europe and Africa by various importers into Australia. Cost, at approximately $5 per kilogram less than an equivalent Australian sourced product, is the dominant import driver. In addition to the import of ingredients, importers are utilising lower Chinese production costs, assembling and packing food components sourced from multiple locations overseas, before distributing to the Australian retail market.

Managing food safety risks

On 13 February 2015, a voluntary food safety recall was issued for Nannas 1kg Frozen Mixed Berries and 1kg Frozen Raspberries packs for a potential Hepatitis A contamination. Further precautionary recalls of other frozen berry products under the Creative Gourmet brand followed on 15February2015. Patties Foods Limited (Patties) owns both brands.

In total 31 confirmed cases of Hepatitis A have been epidemiologically linked by The Department of Health and Human Services (DHHS) to the recalled frozen berry products supplied by Patties under the Nanna's and Creative Gourmet brands. While it has not been proven that the berries were the source of infection, all 31 people were infected with a genetically identical Hepatitis A virus, indicating acommon source¹.

Testing of the recalled products by the DHHS detected HAV (Hepatitis A) in two samples. In the first of these the product was opened and supplied by a consumer for testing so the origin of the contamination cannot be determined. The other showed very low levels of contamination and it could not be determined that the virus was live. Patties issued a statement on 16April2015 after completing its own microbiological and viral testing, stating that no Hepatitis A or E.coli was found in any recalled products².

Patties Foods Limited (PFL) Historical Share Price

The share price for Patties plunged almost 10% on the day of the recall and has not recovered since. As a result of the issue the company decided not to pay an interim dividend to shareholders until the financial impact was clear. To date Patties says the financial impact has been significant with $1.5 million of revenue lost and expected net profit for the financial year $1.5million lower than forecast³. While three of the four recalled products started returning to supermarket shelves in April 2015, Nanna's 1kg Frozen Mixed Berries still cannot bepurchased.

Would you still eat frozen berries?

Poll: 28 February 2015

Impacts

Food safety failures are a significant risk for food importers. The risks include:

Company brand and reputation

Corporate brand devaluation (both in the eyes of consumers and food retailers) resulting from breach of corporate and social responsibilities.

Food category brand and reputation

Erosion in consumer confidence in the food category as a whole
Loss of shelf space and listings with major retailers
Increased regulatory, legal and statutory costs arising from changes in regulations as a result of the food safety failure.

A poll conducted in Queensland indicated that 54% of respondents said they would no longer buy frozen berries and 23% said they would continue to buy frozen berries but they would notbuy the Nanna's brand.⁴

As a result of the potential link between the berries and the Hepatitis A outbreak the risk level of imported frozen berries has been reviewed and upgraded to 'medium risk' by Food Standards Australia and New Zealand (FSANZ). Increased screening measures have also been introduced5. Calls have also been made to change packaging regulations as a result of the scare to enable consumers to clearly see the country of origin of the product they are buying6. In a media release on 15 April 2015, Patties wentfurther and said they are looking to engage with local berry growers in Australia on the development of a locally sourced berry range, however supply and infrastructure would require significant investment7.

Profitability

Recall costs impact short term profitability
Diversion of senior management time to deal with the 'crisis' impacts on other areas of the business
Short (and potentially) long term profitability impact resulting from reduced demand for product.

Risks and Mitigants

There are number of specific issues within global supply chains that, from a risk governance perspective, businesses must address. Responsible businesses must deal with each of the following issues to best mitigate food safety risks.

In the area of imported food supply chains, it is difficult to make a positive impact on food safety assurance and governance without significant investment and resources. Unless investment is made,importers will invariably be accepting compromises to food safety should they source food and manufactured goods from less developed nations. Companies and boards responsible for managing risk and charged with staying true to their corporate principles and values have an ethical and commercial obligation to ensure their food products are safe. The cost of not investing could be perilous.

QueenslandThe impact of drought on Australia's beef herd.

Record beef cattle prices are being achieved due to increased overseas demand and constant domestic demand. However, the supply of beef cattle in Queensland is currently at an all-time low due to the on-going drought and failed wet season across the majority of the state. Irrespective of the drought, the price of cattle will remain high. But when the drought does break, restocking demand will likely drive prices even higher and possibly to a point where those looking to restock will be unable to afford to do so.

Queensland

The impact of drought on Australia's beef herd.

Record beef cattle prices are being achieved due to increased overseas demand and constant domesticdemand. However, the supply of beef cattle in Queensland is currently at an all-time low duetothe on-going drought and failed wet season across the majority of the state. Irrespective of the drought, the price of cattle willremain high. But when the drought does break, restocking demand will likely driveprices even higher and possibly to a point where those looking to restock will be unable to afford to doso.

A land of 'droughts and flooding rains'

As at 1 May 2015 there are 33 entire local government areas and three part local government areas drought declared, with another 66 Individually Droughted Property (IDP) declarations in an additional six local government areas.8 The maps below illustrate the extent of drought in Queensland, and the consequent impact on pasture biomass.

A drought declaration is made when an area has 'a one in ten to fifteen year rainfall deficiency' and the declaration is lifted 'once enough rain has fallen'. Despite the significant rainfall resulting from Cyclone Marcia in February 2015, there have been no drought revocations in 2015 and at least 80% of Queensland remains drought declared.

What is the effect of the ongoing drought on cattle and beef production?

As Queensland moved into severe drought, the beef herd in Australia had grown to a record 29.3million head in 2013.

Australian beef herd numbers grew to record numbers on the back of three very good seasons across most of the beef producing areas of Australia from 2010 to 2012. Herd numbers were also buoyed by the 2011 shut down of the live cattle export trade to Indonesia. By mid-2012 there was upwards of one million head of cattlein Northern Australia that, in normal circumstances, would have been exported toIndonesia.

Even without the ban on live cattle exports to Indonesia, previous good seasons meant there was always going to be larger number of cattle than normal coming to market from mid-2012 through 2013. Female cattle born in the first good season 2010 were reaching breeding age and so growth in the national herd became exponential.

As equally dramatic as the growth in herd size, was the impact on price.

The Eastern Young Cattle Indicator (EYCI) is thestandard measure of the price received for slaughtered cattle in Eastern and Northern Australia. As herd numbers grew, the EYCI fell substantially from around 400 c/Kg at the beginning of 2011 to a low of 281 c/Kg in January 2014. The 30% fall in price reflected an excess of supply (national herd build up) and a reduction in demand (the live export ban). This situation was exacerbated by the growing impact of the drought, which forced many graziers to put their cattle on the market.

A turning point

2014 was a turning point: increased demand forlive export cattle and an elimination of the oversupply and restocking demand due to improved seasonal conditions in some areas supported a price recovery.

The live export trade for all types of beef cattle gained momentum as the Indonesian market reopened and a number of other markets became significant purchasers of Australian cattle. Previously cattle for live export to Indonesia were restricted to those weighing less than 350 kgs. However in 2014 the access for live export cattle to Indonesia changed to include all weight ranges. The improved access occurred as Indonesia had run down its cattle numbers and needed slaughter ready cattle to supply beef demand. This occurred at the same time as the newer markets of Vietnam, China and South Korea were accepting all weight ranges.

Outlook

The supply of cattle is currently at an all-time low and the current situation is unprecedented. We have the highest prices on record being driven by increasing overseas demand and constant domestic demand, the lowest supply on record following the continuing drought and, what is across the majority of the state, a failed wet season (Townsville for instance has recorded its lowest wet season rainfall on record).⁹

Given the failed wet season, the supply of cattle will continue to be low for a number of years. Dryseasons produce low calving rates and a consequent slow herd size recovery. When the drought eventually breaks, the demand for cattle from those looking to restock will be irresistible.

Latest weather projections from the Science Division of the Department of Science, Information Technology and Innovation (DSITI) are that, for most of Queensland, there is an equal likelihood of rainfall being above or below median over the next three-month period. Longerterm modeling suggests the possibility of an ElNiño event and with it the threat of a dry winter and spring intensifying current drought conditions. Ofthe 26 El Niño events since 1900,seventeen have resulted in widespread drought.10

Whether the drought breaks or not, the price ofcattle will remain high. But when the drought does break, restocking demand will likely drive prices even higher, and possibly to a point where those looking to restock will be unable to afford to do so. In the USA, following a prolonged drought, the price of restocking cows has reached $3,000 per head. For a 500kg animal this would translate to an EYCI rate of 1,111c/kg. Such prices would see an even slower return to normal herd numbers than previously anticipated.11

However the season goes, these recent events serve to reinforce that Australia is not a country that enjoys normal seasons and occasional droughts. It is a country that is basically dry and occasionally has abnormally high rainfall events. These variable rainfall events and prolonged dry spells directly influence the size of the Australian cattle herds and the prices received for them.

New South Wales No water, no cotton?

After a surprisingly good 2014/15 season, Northern New South Wales and Southern Queensland farmers are in need of significant rain if they are going to salvage the 2015/16 cotton season. As some regions, particularly the Northern Valleys, come under pressure, opportunities for established growers to diversify and new participants to enter the market will present.

New South Wales

Many cotton producers had forecast that 2014/15 would be a difficult year. A lack of available water coupled with season prices tipped to be the lowest ($490 per bale12) seen since 2005/06 combined to reduce plantings by 53% to 197,000 hectares, well down on the record 600,000 hectares planted in 2010/11¹³

Mitigating the reduction in plantings, the season's excellent growing conditions resulted in many farmers achieving record yields. Cotton Australia has reported a national harvest of 2.2 million for the season. The average yield was well above the 2013/14 average of 9.95 bales per hectare, with some farmers producing 15 to 16 bales per hectare. Additionally, prices firmed to $535 per bale14.

As a result, the 2014/15 season produced results far beyond initial expectations.

However, despite the outcome of 2014/15, the outlook for 2015/16 remains pessimistic due to uncertainty regarding the prevailing world cotton price and the limited availability of irrigation water.

China recently announced their national strategiccotton reserve would no longer be maintained. This may impact the potential profitability of the2015/16 season, with cotton prices forecast to fall. Chinese imports will be capped at 894,000tonnes this year15, a 61% reduction on the 2011–2014 average yearly imports. Should China release some of its reserve onto the world market, it is expected thatcotton prices will be pushed lower.

The Chinese importation cap has led to an increased demand for quality cotton. Given Australia's reputation as a high quality producer, some forecasts have Australia surpassing the United States as the number one supplier of cotton to China16. This, combined with the lower Australian dollar, will help to combat the lower world price. Evidence suggests that for every cent the dollar falls, an additional $7 is added to the cash price per bale17.

Cotton production areas and the push South

Water and the push South

As the 2014/15 cotton season drew to a close the outlook for the 2015/16 season looked bleak with water supplies severely depleted in many cotton growing areas¹⁸. NSW irrigators in the Border Rivers, Gwydir Valleys and those along the Barwon-Darling system were facing embargos on water allocations and no water allocations were expected in the Lachlan River. Early indications were that areas sown in these regions for the 2015/16 season would be halved. However, in late May 2015 these embargos were lifted¹⁹ improving the outlook for next season.

As water security continues to be front of mind for growers, a distinct migration South has been witnessed over the past few years. Southern NSW has the potential to become the mainstay of Australian cotton production as the Southern Murray-Darling basin has a much different and more reliable water supply than the Northern basin, which operates on a very unreliable rainfall pattern and a wet season that often doesnot arrive²⁰.

The Southern region has received some recent rain, adding to allocations and allowing for a more positive outlook. Plantings in the Murrumbidgee Valley region increased from 33,000 hectares in 2013/14 to 35,000 hectares this year, with an additional 7,000 hectares forecast to be planted in 2015/16²¹.

New gins in Hay and Carrathool providing greater efficiency and increasing yields have encouraged more farmers to diversify into the industry²². With cotton providing the greatest return per mL for summer crops, reliable water and these new gins will continue to encourage further production in the Southern growing region.

Conclusion

World cotton prices are expected to remain high reaching $517/bale for the 2015/16 season23andit is likely cotton farmers will be looking to maintain higher production levels, much like those achieved this year. However, it remains to be seen whether world cotton prices will play to their favour.

Western Australia Grain production: Can Western Australia score a hat-trick?

Western Australia defied the trend of below-average grain production across the country in season 2014, by delivering its fourth biggest production year on record. This has provided many operators the ability to consolidate and re-position their financial affairs.

Western Australia

In season 2014, Western Australia produced 13.5 million tonnes of grain. This followed a bumper crop in 2013 of 15.9 million tonnes. Speculation is now mounting as to whether WA can pull off three successive seasons of above average yields. The 10-year average is around 10.5 million tonnes.

WA grain production

The state's 2014 result was better than expected, especially considering some wheat belt areas did not enjoy an above-average 2014 as a result of either a dry spring or heavy harvest rain.

A key contributor to recent production gains was a substantial increase in acreage in high yielding areas of the WA wheat belt. With good grain prices over the past few years, many operators, particularly in the traditional higher rainfall areas, made the strategic decision to switch an element of their annual farming program from grazing to cropping. The more marginal areas have continued to have issues with yields and consequently, liquidity and equity, but the big changes have been prominent in the traditional grazing areas where significant grain volumes can be grown.

Whether WA can achieve a third strong seasonwill be a test. It was a largely positive start to the season, with rainfall putting moisture into the profile prior to planting. Some regions experienced such favourable rainfall that multiple weed knockdowns were required.

This was followed up by a significant rain event in mid-June 2015. This downpour was much needed and reached the far and wide corners of the wheatbelt. This has certainly positioned the season well, however there are many more weeks to go yet.

Interestingly, recent research has indicated that WA is becoming drier and warmer. Research by the WA Department of Agriculture and Food has confirmed many WA farmers' observations, that more heat stress and frost events are occurring. There has been long held commentary around climate warming and its impact on yields via reduced winter rainfall and increased summer temperatures.

On a global scale, research shows that worldwide temperatures are showing little sign of easing back from 2014's record levels. 2014 was officially the hottest year on record, eclipsing 2005 and 2010.

In Australia, 2014 was the third-warmest year on record, behind 2013 and 2005. Last year's warmth came without the El Niño climate pattern forming in the Pacific. However the Bureau of Meteorology has advised that indicators have shown a steady trend towards El Niño since the beginning of 2015. In their monthly report issued on 12 May 2015 they advised that the tropical Pacific is in the early stages of El Niño, with weekly sea surface temperatures above El Niño levels since mid-April. The El Niño event has the characteristics of making 2015 one of the hottest years on record globally. For Australia, an ElNiño typically leads to drier and hotter than usual conditions for much of the country, which inevitably places pressure on grain production.

We know that farmers are adaptable. Given a changing climate, operators clearly need to continue to re-assess their farming approach in terms of grain variety selection, crop management systems, diversification, and invest in innovative new technologies for crop production.

Watch this space.

South Australia Wine: Too much of a good thing?

Since 2007, the Australian wine industry has experienced significant headwinds that have combined to produce 'a perfect storm'. Softening of demand in key export markets, and retailer activity suppressing domestic margins, have been exacerbated by an over supply of the 'wrong varieties' in the 'wrong areas'. The industry needs to undertake significant restructuring in order to correct the supply – demand imbalance, but it is currently caught in a downward spiral that may prove difficult to reverse in the near term.

South Australia

From 2007, a number of forces have combined to impact the Australian wine industry:

Fall in demand for Australian wine in key markets, especially the US, UK and Canada.
Over the ten years from 2004, the Australian dollar rose steadily.
The Global Financial Crisis (GFC) hit world markets in August 2007 and accelerated through 2008 – coinciding with a significant fall in Australian wine exports. Export volumes recovered through 2009, only to fall again in 2010 and beyond.
Domestic retail consolidation, supplier management and vertical integration into winealso accelerated during this period. Woolworths accelerated its growth of Dan Murphy, acquired Langton's in 2009, and Cellarmasters in 2011. Wesfarmers acquired Coles in 2007 and began to transform its management, strategy and performance – including its liquor business.²⁴

Oversupply

The headwinds facing the Australian wine industry have been intensified by oversupply. The fundamental problem is that there are too many vineyards and supply exceeds demand. Inparticular, there is an oversupply of CandD grade fruit (retail for less than $15 per bottle), which in many cases, sells at below cost of production.

Vineyard area has declined from around 155,000hectares in 2009 to 133,000 in 2013 with a productive capacity of around 1.8 million tonnes. A more balanced level of production is thought to be around 1.5 million tonnes. A crude analysis of these numbers would suggest that vineyard area needs to contract further towards 100,000 hectares to achieve this equilibrium.

Outlook

The Winemakers Federation of Australia (WFA) is a strong advocate of hastening the correction to the domestic supply base. On the WFA's analysis, 80% of total current wine grape production in Australia may be uneconomic. Industry perceptions are that there is too much fruit of the wrong varieties in the wrong regions and the problem is concentrated in the C and D quality segments. Ben Munt of leading wine brokerage WyattMunt Winebrokers explains:

There is natural resistance to a supply contraction. Wineries continue to supply the market with wine derived from uneconomic grapes to maintain their volumes through their capital infrastructure and are finding alternative means to sell product directly to the consumer bypassing the domestic retailers. To survive, growers are incentivised to increase yields where possible to maintain revenue levels and develop direct relationships with retailers. For some, these strategies may work, for others it may just be delaying the inevitable. All of these factors point to a gradual supply adjustment as opposed to the pace desired by the WFA.

Until this occurs, the industry will remain locked in a vicious circle where industry participants' responses to the demand-supply imbalance serve to perpetuate it:

Retailers are able to source cheap wine to support their private label and promotional strategies
Flood of cheap Australian wine onto the export market (much of it bulk or packaged without proper branding support)
Winemakers accessing cheap fruit to maintain of increase wine production to amortise fixed costs – provides market for uneconomic grapes, and puts further price and volume pressure on winemakers
Increased focus of some grape growers, winemakers, retailers and opportunists on 'leveraging' the Wine Equalisation Tax (WET) Rebate.

The economics of a contraction in supply of grapes will unavoidably cause varying degrees of distress for both growers and winemakers, particularly those dealing with the C and D grade product. The experience for growers exiting the industry will depend on specific circumstances such as stakeholder attitude and whether viable alternate uses for the land exist. For the winemaker, increased grape prices will flow through to higher production costs and increase margin pressure as the prospect of passing on the increase to domestic and international customers is low.

"Export demand for product derived from these categories fell sharply during the global financial crisis and have continued a downward trend. The oversupply of C and D product is causing price distortion in the segments above and below and effects profitability across all industry participants."

Buyer's Market

Vineyard and winery assets are currently attracting local and foreign investors. There is aprevailing view that, whilst not necessarily on the market, everything is for sale. However, buyer interest and transactions are concentrated in the Barossa Valley as evidenced by recent winery transactions (see table below). The depreciation of the exchange rate combined with a fall in price per premium hectare from pre-GFC peak of around $100,000 per hectare to around $70,000 in that region has improved the business case to invest in the Barossa as these metrics compare favourably to other premium regions around the world.

The common asset qualities that underpin these transactions are that the associated brand is well established, has a historical pedigree and a reputation for quality product. Together, these factors are seen to be essential for international marketing and, therefore, the foundation for growing export demand. The Barossa Valley's Schild Estate is actively seeking an equity partner to take a majority stake in the brand and its winery with a capacity of 50,000 cases per annum.

2015 Vintage

The annual market outlook survey conducted by the Wine Grape Council South Australia indicates that winemaker expectations for 2015 were that the intake of fruit would be lower because of reduced demand and excess stock from recent vintages. A surplus of high end fruit was anticipated owing to the continuing austerity measures in China dampening demand. Further declines for white varieties were also expected. More spot market activity was anticipated and less contracts as wineries are experiencing ongoing uncertainty owing to a lack of commitment from buyers.

The 2015 vintage in South Australia commenced a month earlier than average and its duration was shorter, which presented some growers with unique logistical challenges across the regions. Specifically, rather than a staggered ripening of the various red and white grape varieties, there are many instances where ripening has aligned and the harvest completed in a shorter window. Avery dry spring leading to lower soil moisture is influencing traditional notions of the typical duration of the harvest.

The challenge flowing from these conditions was twofold: increased competition to get crops booked into wineries for crushing; and pressure on equipment to get the grapes off the vine. If the grower cannot get the grapes off the vines during the optimum window and into the winery, the sugar content increases and quality falls with a consequential price impact. The indications are that the challenges have, by and large, been managed between the growers and the wineries with lower crop tonnages assisting with the coordination of logistics.

Footnotes

¹Media Update – Hepatitis A linked to Frozen Berries, The Department of Health. Web 25 March 2015 http://www.health.gov.au/internet/main/publishing.nsf/Content/ohp-hep-A-media-15-frozen-berry.htm
²Negative HAV test results on berries show no systemic quality failure, Media Release, Patties Foods Limited. Web 15 April 2015 http://pattiesfoods.com.au/news/negative-hav-test-results-on-berries-show-no-systemic-quality-failure
³Nanna's frozen berries hepatitis A recall hits Patties Foods' profit, Sydney Morning Herald. Web 3 June 2015 http://www.smh.com.au/business/retail/nannas-frozen-berries-hepatitis-a-recall-hits-patties-foods-profit-20150603-ghfixr.html
⁴Hepatitis A scare proves a berry good reason to buy local, Queensland Times. 28 February 2015 http://www.qt.com.au/news/hep-a-scare-why-we-buy-coast-produce/2547884/
⁵Media Update – Hepatitis A linked to Frozen Berries, The Department of Health. Web 25 March 2015 http://www.health.gov.au/internet/main/publishing.nsf/Content/ohp-hep-A-media-15-frozen-berry.htm
⁶Renewed push for Cool change, Farm online National. Web 18 February 2015 http://www.farmonline.com.au/news/agriculture/agribusiness/general-news/renewed-push-for-cool-change/2723861.aspx
⁷Negative HAV test results on berries show no systemic quality failure, Media Release, Patties Foods Limited. Web 15 April 2015 http://pattiesfoods.com.au/news/negative-hav-test-results-on-berries-show-no-systemic-quality-failure
⁸Drought declarations, The Long Paddock, Queensland Government. Web 29 May 2015 https://www.longpaddock.qld.gov.au/queenslanddroughtmonitor/queenslanddroughtreport/index.php
⁹Townsville facing driest wet season on record weather bureau warns, ABC news. Web 29 May 2015 http://www.abc.net.au/news/2015-04-29/townsville-facing-driest-wet-season-on-record/6429696
¹⁰Monthly climate statement for May 2015, The Long Paddock, Queensland Government. Web 29 May 2015 https://www.longpaddock.qld.gov.au/seasonalclimateoutlook/qccceclimatestatement/2015/20150515.html
¹¹US hungry for Aussie beef, Queensland Country Life. Web 29 May 2015 http://www.queenslandcountrylife.com.au/news/agriculture/cattle/beef/us-hungry-for-aussie-beef/2729900.aspx
¹²Cotton forecast to bounce back, FarmOnline. Web 4 March 2015 http://www.farmonline.com.au/news/agriculture/cropping/cotton/cotton-forecast-to-bounce-back/2725233.aspx?storypage=0
¹³Cotton Annual 2015, Australian Cotton Industry Statistics, Library, Cotton Australia. Web http://cottonaustralia.com.au/uploads/publications/2015_Cotton_Annual_-_Statistics_Booklet.pdf
¹⁴Record yields round out 2014-15 cotton harvest in north-west NSW, ABC Rural, ABC. Web 19 May 2015 http://www.abc.net.au/news/2015-05-18/record-yields-north-west-cotton-harvest/6478664
¹⁵China to slash 2015 import quotas for cotton, Southern China Morning Post. Web 23 September 2014 http://www.scmp.com/business/commodities/article/1598321/china-slash-2015-import-quotas-cotton
¹⁶COLUMN-China cotton quota, subsidies may boost quality, yarn: Russell, Reuters. Web 15 December 2014 http://www.reuters.com/article/2014/12/15/column-russell-cotton-china-idUSL3N0TZ21L20141215
¹⁷Falling Aussie dollar helps to lift cotton price, ABC Rural, ABC. Web 20 January 2015 http://www.abc.net.au/news/2015-01-20/australian-cotton-values-2001/6026884
¹⁸Growers and Irrigators Rally Against North-West Water Embargo Decision, Cotton Matters, Cotton Australia. Web 21 April 2015http://cottonaustralia.com.au/news/article/2005
¹⁹Water Embargos in Northern NSW Lifted, North West News, NBN News. Web 30 May 2015 http://www.nbnnews.com.au/2015/05/30/water-embargoes-in-northern-nsw-lifted/
²⁰Cotton continues it's Southern surge, The Australian Cotton Grower, Vol 36 No 2, April – May 2015.
²¹Auscott opens new cotton gin in the Riverina, ABC Rural, ABC. Web http://www.abc.net.au/news/2015-05-07/auscott-cotton-gin-at-hay-0705/6451932
²²New genetically modified varieties and cheaper more reliable water have led to a southern cotton boom, Cottoned On, ABCNews, ABC. Web 16 May 2015http://www.abc.net.au/news/2015-05-16/cottoned-on/6476306
²³Australian cotton yields jump as prices soar but plantings down, Agribusiness, Weekly Times Now. Web 22 May 2015 http://www.weeklytimesnow.com.au/agribusiness/cropping/australian-cotton-yields-jump-as-prices-soar-but-plantings-down/story-fnker6ee-1227363591074
²⁴Expert Report on the Profitability & Dynamics of the Australian Wine Industry, Centaurus Partners, Prepared for Winemakers' Federation of Australia, August 2013

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Australia: National insights on food and agriculture